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Essay / Research Paper Abstract
This 6 page paper looks at the position of Proctor and Gamble (P&G) before and after the acquisition of Gillette. The paper starts by looking at the P&G strategy in order to assess the potential alignment between the two firms’ products and brands. The attractiveness of the markets and strengths of the firms is assessed and the financial positions between 2000 and 2004 are discussed comparing growth, profit and capital structure. The paper ends with recommendation for P&G following the acquisition. The bibliography cites 4 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEPGgillette.doc
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Unformatted sample text from the term paper:
as well as supplying the chemical industry. The different businesses and brands may be seen as diverse in covering a wide range of product areas, but nonetheless there are
some relationships between the different areas; with the core focus being the health and beauty products and the household care (P&G, 2012). The health and beauty goods include pharmaceuticals such
as the osteoporosis drug Actonel and well known beauty brands such as Olay, Oral B and Pantene. The household products range includes brands such as Charmin, Downy, Duracell and Tide.
Other products that are more loosely within the household product range include the pet food brand Iams and the potato crisps brand Pringles (P&G, 2012).
While the range itself is diverse, many of the goods are complimentary and may be seen as directly related, for example the washing powder and fabric softener
brands, other that may give the impression of a fragments product range not only fall into a limited range of goods they may also appeal to the same target market(s)
and benefit from the same channels of distribution. For example, a brand conscious consumer purchasing Persil washing up liquid may also be drawn to the branded toilet tissue Charmin and
feed their cat or dog Iams pet food. The products may also all be bought from the same distribution channels, such as supermarkets. The firm may then benefit from the
deep understanding of customer needs and psychology which has been developed which may be applied to their brand management. The strategy has also seen the firm focus on the product
ranges where there is optimal returns and low capital intensity. In 2005 the firm added Gillette to its product portfolio; this has extended the firms products with the addition
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