Gillette Acquisition Gives P&G New Leadership in Male Grooming Market
04 Février 2005 - 9:16PM
PR Newswire (US)
Gillette Acquisition Gives P&G New Leadership in Male Grooming
Market LITTLE FALLS, N.J., Feb. 4 /PRNewswire/ -- The $57 billion
deal announced recently by The Procter & Gamble Company to buy
The Gillette Company -- P&G's largest acquisition ever -- will
help to make P&G the front-runner in the nearly $5.5 billion
U.S. men's grooming market, according to international business
consulting firm Kline & Company. "The acquisition of Gillette
brings to P&G the missing piece of the puzzle that enables the
company to be the product leader to all members of a household,
from babies to women to pets, and now men," says Carrie Bonner,
industry manager for Kline's Consumer Products Practice. P&G
had been steadily growing its women's beauty business with its Olay
and Cover Girl brands and expanded its hair care business with the
acquisitions of Clairol and Wella. Its presence in the men's
market, however, consisted mainly of Old Spice, with most sales
derived from deodorants and antiperspirants. The addition of
Gillette -- clearly the men's market leader with an estimated $900
million in U.S. sales of male grooming products, according to
Kline's THE U.S. MALE GROOMING MARKET 2003 -- catapults P&G to
the top of this market. "The men's grooming category was perhaps
P&G's weakest portfolio in the personal care industry," Bonner
says. "Although the company has strengthened its Old Spice brand,
it has not been enough to build a substantial franchise." According
to Kline's estimates, U.S. sales of Procter & Gamble's products
specifically targeted to men totaled less than $250 million in
2003, which represents less than 5% of its overall personal care
and beauty business in the U.S. With the acquisition of Gillette,
Bonner estimates that P&G's male grooming sales could rise to
$1.25 billion in the U.S. alone, accounting for 25% of its total
domestic cosmetic and toiletry business. Under the terms of the
agreement, P&G will acquire 100% of Gillette, founded in 1901
and a marketer of a number of category-leading products such as
Gillette razors and blades, including the Mach3 and Venus brands;
Oral-B manual and power toothbrushes; and Braun shavers and small
appliances. "All these brands are leaders in their respective
markets, which is something P&G strives for with its own
brands. Moreover, the company will have even more leverage with
retailers, which is something P&G's competitors should be very
concerned about," says Bonner. The Gillette purchase follows strong
growth in corporate sales for P&G, which has used acquisition
activity to expand substantially in the last 20 years. In fiscal
1985, P&G's total corporate sales were $14 billion, and they
currently exceed $51 billion, due mainly to acquisitions of
well-known brands such as Cover Girl, Clairol, and Wella, which
introduced P&G to the color cosmetics, hair colorant, and salon
markets, respectively. Kline's study, THE U.S. MALE GROOMING MARKET
2003, examines emerging opportunities in the men's grooming
products market, offering a detailed and accurate analysis of
market size and segmentation. It explores historical sales and
overall growth, focusing on the catalysts for the recent emergence
of this product sector. It examines manufacturers' sales by retail
channel with a five-year forecast, covering key brands and
marketers, as well as noteworthy trends and developments. It also
features a section on male attitudes and usage of grooming
products, based on a survey designed to explore purchasing
patterns, brand loyalty, and retail channel preferences. Kline
interviewed more than 400 consumers to examine purchase decision
factors, usage habits and frequency, and reasons for switching
brands. For more information, go to
http://www.klinegroup.com/y576.htm, or contact Carrie Bonner at
(973) 435-3412 or . Those based in Europe should contact Jonathan
Duff at +32-2-776-0738 or . Established in 1959, Kline &
Company (http://www.klinegroup.com/) is a business consulting and
market research firm serving clients worldwide in the cosmetics and
toiletries, household cleaning products, and other consumer
products sectors. DATASOURCE: Kline & Company, Inc. CONTACT:
Carrie Bonner, Industry Manager, Consumer Products of Kline &
Company, Inc., +1-973-435-3412, or Web site:
http://www.klinegroup.com/ http://www.klinegroup.com/y576.htm
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