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Industry Overview

The consumer goods industry is a very broad, large industry that focuses on all products intended for consumers, more than individual, specific products. Companies that comprise the consumer products industry design, manufacture, and/or market apparel, cleaning products, hand and power tools, home furniture, house wares, linens, consumer electronics and appliances, and personal care products.

The market environment of the consumer products industry is highly competitive, with both global and local competitors. Many of the markets and industry segments face competition against other branded products, as well as retailer and private-label brands. Additionally many segments are differentiated by price (referred to as premium, mid-tier and value-tier products). Most of the globally established companies in the industry manufacture premium and mid-tier products.

Competitors in the Personal Consumer Products Industry

Procter and Gamble

Unilever

Kimberly Clark

Colgate Palmolive

Johnson and Johnson

Avon

Bath and Body Works

Body Shop

Because the industry is highly segmented and a wide range of products classes are offered an analysis of the industry without being specific to segments is very complex. However, some trends have developed in the industry over the last 25 years:

 Discount channels are gaining ground and may reach 30-40% market share in the years ahead.

 Manufacturers are focusing on fewer brands

 Manufactures are struggling with low growth rates in the industry

 New forms of cross-industry collaborations are forming

Competitive Profile Matrix: Consumer Goods Industry

Critical

Competitive Variables Procter & Gamble Johnson & Johnson Unilever Colgate Palmolive Bath &Body Works

Wt. Rank W*R Rank W*R Rank W*R Rank W*R Rank W*R

Branding .15 4 .6 3 .45 4 .6 4 .6 4 .6

Go-to-market capability .12 4 .48 3 .36 4 .48 3 .36 2 .24

Innovation .12 4 .48 4 .48 4 .48 4 .48 4 .48

Economies of Scale .12 4 .48 4 .48 4 .48 4 .48 2 .24

Quality .10 4 .4 3 .3 4 .4 4 .4 4 .4

Customer Loyalty .10 3 .3 3 .3 3 .3 3 .3 4 .4

Competitive Pricing .09 3 .27 4 .36 3 .27 4 .36 2 .18

Financial Position .11 4 .44 4 .44 4 .44 4 .44 2 .22

Global Share .09 4 .36 3 .27 4 .36 4 .36 1 .09

Totals 1.0 3.81 3.44 3.81 3.78 2.85

The results of the Competitive Profile Matrix indicate that the consumer goods industry is highly competitive and largely based on innovation and branding. The cumulative scores of the companies with a global position are very close which indicates that although companies are market leaders in terms of certain brands, there is no clear overall market leader