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In the last article on Procter & Gamble, entitled “Procter & Gamble to Lose Number One Spot in Beauty”, it was stated that, despite losing its number one spot in the global beauty market, Procter & Gamble was expected to come back stronger and healthier. We now take a closer look into how the company’s portfolio is expected to shape up more specifically. Our previous analysis, Which Brands Could Procter & Gamble Divest to Inject Growth Elsewhere?, laid out the potential framework for divestment, which aligns strongly with the recently confirmed 43 brands to be sold off.
Source: Euromonitor International
The image at the top reveals Procter & Gamble’s beauty portfolio inclusive of the brands it is reported to be in the process of divesting, while the chart underneath is what the portfolio is expected to look like after the divestment. The bubble sizes represent sales, while green indicates the company has gained share in the category and orange indicates it has lost share. The vertical axis shows projected growth of the category in absolute terms, while the horizontal axis represents proximity from the third leading player in the category. Comparing the two charts, the points that become evident are:
While Procter & Gamble is soon to lose its clout as the number one player in the global beauty market, it stands to benefit from improved portfolio health and a more nimble structure to utilise the growth potential of its existing categories.