The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
As Procter & Gamble gets ready to announce its first quarter results for the current fiscal year, it has been reported that the call from investors to split the company has been gaining momentum, as another round of negative sales growth is anticipated. Share price has been falling and the sluggish pace of the company’s beauty division is said to be impacting the otherwise better performing home care division. Hence a split is expected, to save the home care division from being burdened by the less successful beauty division. The question for Procter & Gamble is whether this is the best course of action. The following section draws on Euromonitor Competitor Analytics to provide an answer.
Figure 1 illustrates Procter & Gamble’s divisional split across industries and the size of the boxes represent the weight of the divisional sales to the company’s overall sales. Green and red represent positive and negative growth rates respectively and the shades of each of these colours are the extent of gain and loss.
But delving down to country level shows that there are some pockets the company needs to focus on for both laundry detergents and hair care, as seen in figures 2 and 3.
Looking at figure 2 and figure 3 in tandem clearly shows that while Procter & Gamble has recorded positive growth in the emerging markets across both categories, the US is a market that needs a strong focus, particularly because it is one of the largest markets across both categories.