What non-US companies are key players in the industry?

            Two companies that are non-US, key players within the Household and Personal Products are the L’Oreal and Unilever. According to a report produced by Datamonitor, both of these two companies each hold considerable shares in the international markets alongside the big US companies like Procter and Gamble and Johnson & Johnson.  Unilever currently holds 5.7% of the international market share, while L’Oreal holds 4.5%.

            L’Oreal has earned its sizable share of the international market through numerous strengths it has garnered during its more than hundred years of operation. These strengths are, “strong international brands and presence in all distribution channels, accelerating globalization and internationalization of the brand portfolio, and focus[ing upon] innovation and differentiation through robust R&D.”

 The cosmetics company currently operates 23 unique brands in approximately 130 countries around the world. Each of these brands offers a varying product mix, including make-up, skin care, fragrances, and hair products all at various price points. Underneath the L’Oreal Group the company carries many well recognizable brands, such as L’Oreal Paris, Garnier, Maybelline, Redken, Lancôme, and Giorgio Armani.

Each of these brands is targeted to different market segmentations of socioeconomic status. Luxury brands like Lancôme are priced significantly higher and usually sold through higher end department stores compared to L’Oreal’s other makeup line Maybelline that is most commonly sold through drug stores. The brand differentiation allows for L’Oreal to be competitive in different segmentations, where price is a driving force.              

            Many of the strengths that have lead L’Oreal to be a key player in the international markets are very similar to those that have Unilever has utilized to earn its place in the share. Strengths unique to Unilever, carrying brands in both the household and personal products industry and the food products industry, are “diversified revenue streams, research and development activities, and a focus on sustainability.” With its combination of environmental conscientiousness and diverse brand and product selection, Unilever has become a formidable presence in the international markets. 

Sources:

http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=2849aa12-d5fa-4bed-86a4-984f7cd2220c%40sessionmgr4&vid=4&hid=24

http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=89cdf45a-5a42-4123-a432-a76aec76a7ed%40sessionmgr11&vid=2&hid=25

http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=2849aa12-d5fa-4bed-86a4-984f7cd2220c%40sessionmgr4&vid=5&hid=105

There are many competitive household and personal products industries born and operated outside of the U.S, which have become prominent players in the global market place. To name a few, I shall start with the extremely innovative producer of household products. Dyson Ltd. develops and manufactures vacuum cleaners, hand dryers, fans, and motors. It offers groom tools, vacuum cleaners for asthma and allergy sufferers, vacuum cleaners for pet owners, digital motors, and cylinders; and spares and accessories for upright vacuum cleaners, cylinder vacuum cleaners, and handheld vacuum cleaners. The company was incorporated in 1991 and is based in Malmesbury, United Kingdom with additional offices internationally. On to the personal products industry, Vichy is the number one skincare brand in European pharmacies, and in slowly gaining popularity in the U.S. Vichy Laboratories is unique, because it is dedicated to advancing skin health through a deep understanding of how skin functions, supported by medical research. With patented ingredients combined with Vichy Thermal Spa Water enriched with rare minerals, Vichy skincare products deliver an exceptionally high level of efficacy, clinically proven by independent dermatologists. Another European personal products company is La Roche-Posay Laboratoire Pharmaceutique, offering cosmetic products. It provides body care, face care, hair care, sun protection, and make-up products. All dermatological products are formulated with La Roche-Posay thermal spring water, a similar tactic to vichy. The company was incorporated in 1976 and is based in La Roche-Posay, France. La Roche-Posay Laboratoire Pharmaceutique operates as a subsidiary of L'Oreal SA. L'Oréal's success is built on a strong foundation. The world's largest beauty products company, it creates cosmetics, perfume, and hair and skin care items. Its brands include L'Oréal Paris and Maybelline, Lancôme, and Redken and Softsheen/Carson. L'Oréal, which owns Dallas-based SkinCeuticals, also conducts cosmetology and dermatology research. With more than 50% of sales generated outside Europe, L'Oréal has focused on acquiring brands in those markets. L'Oréal also owns the UK-based natural cosmetics retailer The Body Shop International, which numbers some 2,550 stores worldwide. The firm's dermatology branch Galderma a joint venture between L'Oréal and Nestlé.

Which company(ies) in your industry are most global? What has been the key to their success in other countries?

According to Fortune Magazine’s Top 500 list of Global companies, the following companies in the Household and Personal Products Industry received these rankings:

344. Christian Dior

494. Kimberly-Clark

Christian Dior

Christian Dior is ranked number 344 in the Top 500 Global Companies. The key of the company global success has been its integration with other famous brands being part of LVMH company. Christian Dior is the main ownership of LVMH. Innovation, brand reputation and quality have play an important role in helping Christian Dior to hold its global leadership position. This company social responsibility programs have also been a key reason of its success.

Kimberly-Clark

             Kimberly-Clark is ranked number 494 in the Top 500 Global Companies. The key of their success has been Kimberly-Clark innovation of creating new ideas. Two examples of Kimberly-Clark innovation are the followings. The first one is the creation of pads for girls who had their first menstruation at an early age. These pads come in glittery boxes and are decorate with hearts and starts. The second one is the new tissue called Kleenex Cool Touch that gives cooling relief to sore noses. The launch of these products help this company to maintain its global position because are products that are different. Others companies do not offer these products with these 

characteristics so consumers to satisfy their wants buy this company brands. Social responsibility programs have also help the company to achieve and maintain its global leadership position. Eco-friendly products and environmental programs are other factors that have help this company to captivate the global market. The company has recycling programs in several countries around the world. As well Kimberly-Clark support a significant amount of environmental organizations. Other factor that has contribute to the global success of this company is to have the same Code of Conduct in all countries where the company operates having high 

standards in business policies regardless of whether the requirements of the country are lower.

           

Sources:

http://money.cnn.com/magazines/fortune/global500/2011/full_list/

http://www.dior-finance.com/en/organigramme.asp

http://www.nytimes.com/2011/04/15/business/media/15adco.html?_r=1&ref=kimberlyclarkcorporation

http://www.nytimes.com/2011/09/28/business/media/researching-the-sneeze-and-how-to-handle-it.html?ref=kimberlyclarkcorporation

www.kimberly-clark.com

Which company(ies) in your industry are most global? What has been the key to their success in other countries?

According to Fortune Magazine’s Top 500 list of Global companies, the following companies in the Household and Personal Products Industry received these rankings:

80. P&G

136. Unilever

378. L’Oreal

P&G

Proctor and Gamble is ranked number 80 in the Top 500 Global Companies. The key to their success had been the creation of their Global Business Units (GBUs), Marketing Development Organizations (MDOs), and Global Business Services (GBS). The GBUs mission is to focus on the consumer, branding, and competitors. GBUs are responsible for innovation, profitability and shareholder returns. P&G has stockholder equity of approximately $62,000. The MDOs are in charge of the consumers and retailers. They are responsible for knowing the market in which P&G competes and integrating the innovation of the GBUs with each country’s business plan. Lastly, but most importantly the GBS showcases P&G’s expert partners to provide grand business support services at the lowest costs including: streamlining operations, accelerating internal collaboration,  and scaling systems, services, and processes globally. P&G holds 20% in the global household care market which is worth $200 billion.

Unilever

Unilever is ranked at 136. This can be attributed to their Unilever Leadership Executive (ULE) which is a team of experts responsible for managing profits and loss, and delivering growth across regions, categories and functions. Unilever focuses on partnerships to achieve global success. Unilever works on an idea they call the Value Chain, which is merely their extensive supply chain in which they are partnered with the members of the chain, also known as vertical mergers. They also have strict supply policies in order to be involved within the supply chain. Having such insight into the supply chain allows them to be more efficient in manufacturing, distributing, and selling their products. Unilever’s strategy of managing the supply chain is the key to their success in the global market.

L’Oreal

Branding is at the heart of L’Oreal’s success and position on the Top 500 at number 378. The brand name and brand image has enabled L’Oreal to expand into the global market. L’Oreal appeals to many different ethnicities which gives them a large advantage in branding. Additionally, L’Oreal’s use of celebrity endorsement assists in their brand recognition. L’Oreal prides itself upon research and development of their products. Their success in this area is expressed through the brand quality and loyalty of their consumers.

Sources: 

http://money.cnn.com/magazines/fortune/global500/2011/full_list/

http://www.pg.com/annualreport2009/letter/purpose-growth.shtml

http://www.pg.com/en_US/company/global_structure_operations/corporate_structure.shtml

http://money.cnn.com/magazines/fortune/global500/2011/snapshots/334.html

http://www.unilever.com/aboutus/supplier/workingtogether/

http://www.loreal.com/_en/_ww/html/our-company/operations/innovate-to-mass-produce-the-products-of-tomorrow.aspx?

http://www.brandingstrategyinsider.com/endorsements/

http://finance.mapsofworld.com/brand/value/loreal.html

Do players in your industry manufacture overseas? What aspects of their operations to the outsource?

It's not uncommon for companies in the Household and Personal Products industry to manufacture outside of the US. We've already established that the industry has to price competitively and rely on brand names to ensure profits, and a large part of how they do this is cut costs in production. This can mean cheaper packaging, or just automating as much of their process as possible.

Take, for example, Procter & Gamble. Like many brand name companies, they have been hit hard by the economic downturn. Many of their customers in developed markets had switched over to the cheaper private-label alternatives. However, in their international market, they saw the most growth, and as a result, they are opening 20 new manufacturing plants in Brazil, China, South Africa, Romania, and Poland. This is added to their 140 other internationally based manufacturing plants. As a matter of fact, their most recent US plant was in Utah (2011), and it was the first US-based plant since 1971. For P&G, they are expanding their overseas manufacturing process in order to maximize overseas profit.

One of P&G's main competitors, Colgate-Palmolive also manufactures overseas. In their 2010 Annual Report they discussed their plant in China, which they claims is the biggest toothpaste factory in the world. They also acknowledged their presence in Brazil, where they purchase a key ingredient for soap. Like P&G, their presence overseas is mainly to cut down costs. In their China plant, they hope to produce toothpaste efficiently to sell cheaply in markets all over the world. In Brazil, they work to get an ingredient for cheap, so they can cut down production costs.

The Clorox company also has an international presence in manufacturing. They have plants in 17 countries, including the US, Saudi Arabia, China, and India. Once again, their reasoning all narrows down to money. Having plants internationally can help with distribution for an international brand as well. And for this industry, it's hard not to find a brand that's not international.

When it comes down to it, these three companies find the most growth in an international market. Furthermore, the production of these products can be made cheaper internationally. With a market that depends on competitive pricing and brand names, a few cents off of a detergent can make a different in the long run.

What are some interesting mission statements or values statements of some of the companies in your industry? What do their statements reveal about them?

While a vision statement may sound very much like a mission statement, each serves as different guidelines for a company or organization. The vision statement declares what the company ideally wants to be in the future and sets long-term goals. The mission statement simply proclaims how and what the organization does to reach its vision. Three companies’ statements that will be examined are Avon Products, Inc. The Clorox Company, and SC Johnson.

Avon Products, Inc.

            The combination of Avon’s corporate social responsibility, mission, and vision statements made it one of the most interesting to read. All three components contained a strong emphasis on the empowerment of women. Their statements highlighted their desire to achieve a premier status as a beauty products company, offering both a quality place of employment and quality products. In addition, Avon’s statements also focused on their social initiatives as becoming the leading foundation dedicated to women’s causes.

SC Johnson

            SC Johnson mission and vision statements are extensively explained within their, “This We Believe” document, which states the five groups it serves and hopes to bring greater good to. These are the employees, consumers and users, the general public, neighbors and hosts, and the world community. The great in-depth into which the company seeks to serve each of these groups currently and in the future demonstrates the good will of the company. Through serving these groups honestly and justly, they feel growth, development, and expansion with follow naturally.

The Clorox Company

            Clorox set forth simple, yet meaningful goals for its company. Clorox’s statement comes compactly in one sentence stating, “We strive to understand and delight consumers with brands that enhance their lives, as well as to make a positive impact in the communities where we do business.” Clorox also enumerated upon four values that serve as the foundation to everything they do. These values are “do the right thing,” “stretch for results,” “take personal ownership,” and “work together to win.” From their mission statement and four core values, Clorox also emphasizes community outreach and promises aid during disaster relief.

Overall, each of the three companies statements focused upon three main components. The first is to provide its customers with quality products. The second main component is to foster safe, open, and quality work environments for its employees. And thirdly is to benefit its local, national, or international community through philanthropy. By containing each of these components, Avon, SC Johnson, and Clorox are being responsible and ethical corporations, however each is serving their communities in unique, individual ways differentiating themselves from the competition.  

Sources:

http://www.scjohnson.com/Libraries/Download_Documents/TWB-English.sflb.ashx

http://www.thecloroxcompany.com/company/mission-and-values/

http://www.avoncompany.com/corporatecitizenship/corporateresponsibility/vmvp/index.html

http://www.avoncompany.com/corporatecitizenship/corporateresponsibility/index.html

• Which companies in the industry stand out in regards to their view and actions in CSR?

Many modern companies have begun developing and redesigning their CSR programs, in order to stand out, and become recognized and respected by stakeholders. Companies are exceeding expectations in order to ensure the well-being of their stakeholders. Most companies have different takes on fulfilling their CSR duties. Some appeal to stakeholders directly by offering free health insurance and products to those in need. Others use a more indirect approach, and appeal to future generations by making efforts to help sustain the environment, and encourage green thinking. One company who performs social initiatives which stand out is Colgate-Palmolive. Colgate-Palmolive developed a program to educate underdeveloped areas on dental hygiene, as well as provide the inhabitants with the necessary supplies to maintain a reasonable oral hygiene routine. Colgate-Palmolive India continues its march in the area of spreading oral health awareness through its School Dental Health Education Program. Under this Program, Over 50 million school children in rural and urban parts of the country in the age group of 6-12 years have been reached out to till date. Training of the basics of oral health care is imparted to the school teachers, through the Colgate Bright Smiles program, to ensure further education to children of preventative health care. In the field of academics, Colgate encourages striving for excellence by offering grants and scholarships to outstanding students, at the college level. Another company with a notable CSR track-record is L’Oreal. L’Oreal is an example of a company who has appealed to both the environmental aspect of corporate social reasonability, as well as the philanthropic aspect. L’Oreal’s target goals for increasing sustainability are to reach 50% reductions in greenhouse gas emissions, waste, and water consumption per finished product. Fair trade policy and commitment to local communities are fully integrated into L’ Oreal’s business making process. L’Oreal is responsible for a program called For Women in Science, which promotes scientific careers and identifies outstanding women scientists. L’Oreal encourages talent by offering women the UNESCO-L’Oreal international fellowship, granted every year since 2000, to 15 promising women scientists, doctorate or post-doctorate. L’Oreal also offers the L’Oreal national and regional fellowships with support from UNESCO, for women in science programs around the world. L’Oreal has helped to establish the careers of many leading female scientists today.