Wednesday, March 28, 2012

Who have been some influential leaders (Founders, CEOs) in the industry over the past 20 years?

To discuss this question, I have chosen two different leaders within the industry. The first is Bob McDonald, the CEO of the leading company within the industry, Procter and Gamble. The other, Bobbi Brown, is the founder/CEO of a sub-brand of Estee Lauder, one of the industry's leading companies.

Bob McDonald CEO and Chairman of the Board of Procter & Gamble 

Bob McDonald began his career as CEO and Chairman of the Board at P&G in July 2009. Since assuming his position, he has strived to to achieve the strategy of, "touching and improving more consumers' lives, in more parts of the world, more completely."  During his time as CEO, the company has experienced significant gains in its sales, despite the economic downturn. 

His goal of extending the presence of P&G into new markets is exactly what P&G needs to accomplish to stay on top of the industry. The well-established markets of the United States and Europe are stable and not experiencing significant growth. Targeting new customers in new markets, like those in Asia, Africa, and South America, coincides with McDonald's vision. 

McDonald is currently in the stages of making this vision a more immediate reality. Recently, McDonald announced a $10 billion spending cut. The cut includes laying off 4,000 workers, reducing spending for their maketing budget and packaging, and developing a more efficient supply chain. This spending cut save the industry giant exorbitant amounts of money and will allow the company to allocate that money to penetrating into new markets.  

Bobbi Brown Founder and CEO of Bobbi Brown Cosmetics 

Bobbi Brown Cosmetics began simply because Brown, a make-up artist, believed that women want make-up that makes them look natural and fresh. Her make-up line began in 1991 as a collection of 10 lipstick shades only being sold at Bergdorf Goodman. Four years later Bobbi Brown Cosmetics was acquired by Estee Lauder Companies in 1995. The cosmetic brand is now sold in 56 countries and territories all over the world. 

What makes Bobbi Brown unique as a founder and CEO of her own company is the hands on involvement with her brand. She is continually working on developing new products that would enhance the natural beauty of women. She still also works as a make-up artist for high-end fashion shoots and events, further helping her understand what consumers are looking for trend-wise. 

In addition, she also has two prominent causes that her company strongly advocates. The Bobbi Brown Cosmetics company places a strong emphasis on its mission to, "do what we can to help improve the lives of those in our community and beyond." The two selected causes are Dress for Success and the Broome Street Academy. Not only is this a great reflection of CSR on Bobbi Brown Cosmetics, but both of Brown's causes are highly promoted, showing her dedication and passion for this vision. 


On another completely unrelated note I wanted to share, an interesting trend I noticed while researching the major players of the Household and Personal Products Industry. I noticed that the majority of the CEOs were appointed around the years 2008 and 2009, coinciding with the United States' economic downturn and recession. For example, Bob McDonald of P&G was appointed in 2009, Kasper Rorsted of Henkel in 2008, Paul Polman of Unilever in 2009, and Fabrizio Freda of Estee Lauder in 2009. I found this to be interesting because it surprised me that each of these companies had a change in leadership all approximately around the same time and during the recession.  

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