International Business Presentation Analysis of personal hygiene market and the possibility of introducing a new product into Italy. *Presentation images were sources online and only used for educational purposes.

2. Case Summary
Positive Income: Year 3
Target Demo: Men 16-34
Potential Market: >$100 M
Launchpad to Western Europe

3. P&G Overview

4. Procter and GambleP&G: Touching Lives, Improving Life...
• 1837
• 175 years history
• Serves 4.8 billion people / Operation in 70 countries
• 50 Leadership brands/ 25 billion-dollar brands
• Beauty/ Baby, Feminine and Family Care
• Fabric and Home Care/ Health and Grooming

5. Financial Highlights

6. Profitability P&G Industry
Gross Margin 49.59 52
ROA 8.33 8.64
ROE 17.38 22.21
Solvency P&G Industry
Debt/Equity .47 .85
Interest Coverage 23.25 13.60
Efficiency P&G Industry
Inventory Turnover 6.23 4.85
Receivables Turnover 13.39 10.06
Asset Turnover .62 .82
Financial Performance
Liquidity P&G Industry
Current Ratio .80 .88
Quick Ratio .41 .53

7. 2013 Net Sales

8. Developed Markets

9. Beauty

10. Country Analysis

11. Italy Country Analysis
Population
61.5 M
Growth Rate
0.34%
Urban Pop.
68%
Male
Age 15-35
5.1 M

12. Government & Political direction
Corruption & Organized crime
Judicial system
Ranked 102nd- Institutional environment
Political Factors

13. Economic Factors
GDP
$
2.014 T
GDP per capita
$
33,115
Europe
5th
largest
economy
Italy is part of a monetary union,
the Eurozone (dark blue), and of
the EU single market.
World
10th
largest
economy

14. GDP Growth Rate

15. Social Factors
Fashion Conscious
First Impressions
Face-to-Face contact
Expressive Communicators
Sports
Low Labor Efficiency

16. Appearance

17. Technology
Highly educated workforce
Sophisticated work process
Long tradition in science & technology
Advanced medical care

18. Bologna University is the oldest academic
institution of the world, founded in 1088.
Environmental Factors
Good infrastructure
Education and Training Programs
Electricity and Telecommunications is good
Highly sophisticated business environment
High Tax Rate, Ranks #4

19. Infrastructure

20. Most Problematic Factors

21. Italian Personal Hygiene Industry

22. Industry Definition
Bath & Shower Products
Oral Care
Deodorants
Grooming

23. Industry Opportunities
Export Growth
Global Distribution
Organic Product
Youthful New Target Markets
The “Italian Man

24. Market Growth
Hygiene Market
$
1,513 M
Market Volume
-2%
Growth Forecast
0.8%

25. Growth by Value

26. Growth by Units

27. Geography Segmentation

28. Category Segmentation

29. Personal Hygiene Market Share

30. Fading Traditions
Growing Industry
Traditional belief: “Human Smell”
Marketing Push by Manufacturers
The “Italian Man”

31. Porter’s Analysis Summary
Analysis Summary

32. Barriers To Entry

33. Supplier Power

34. Buyer Power

35. Rivalry From Competitors

36. Rivalry From Substitutes

37. SWOT
STRENGTHS WEAKNESSES
● Leading market position garnered on
a strong brand portfolio
● Significant R&D and marketing
investments
● Strategic acquisitions expanded P&G’
s product portfolio
● Increasing presence in the
developing markets
● Robust cash productivity
● Increasing instances of product
recalls
● Weak brand presence in Italian
hygiene industry
OPPORTUNITIES THREATS
● Growing men’ s grooming industry
Initiatives to improve productivity
● Growing personal care and home
care markets
● Rising input cost inflation
● Counterfeit goods

38. Deodorants

39. Deodorants Company Shares

40. Italy Deodorants Brand/Parent Share
Parent Brand % Share Parent Brand % Share
Artsana, Gruppo Lycia 6.8 Mirato Nuova SpA Malizia 6.5
Avon Products Inc Avon 1.7 Mirato Nuova SpA Intesa 5.7
Beiersdorf AG Nivea 14.9 Other (<1%) 15.9
Bolton Group, The Roberts 11.9 Paglieri SpA Azzurra 1.5
Bolton Group, The Borotalco 2.5 Private Label 3.1
Dibra Spa Hanorah Breeze 1.5 Procter & Gamble Co, The Infasil (divested) 8.5
Henkel AG & Co KGaA Neutromed 1.8 Procter & Gamble Co, The Gillette 0.4
L'Oréal Groupe Vichy 1.8 Unilever Group Dove 13.2
Unilever Group Axe/Lynx/Ego 2.3

41. Deodorants Brand Shares

42. P&G - Italy
Shaving Deodorant Skin & Hair Soap/Body Wash/
Shampoos
Gillette + Fusion
Braun
Venus
Mach3
Gillette
Infasil (divested)
Sebastian
Herbal Essence
Pantene Olay
Koleston
Head & Shoulders
Herbal Essence
Gillette
Perfumes Colognes Teeth/Oral care Medicines Makeup
Laura Biagiotti
Puma
Hugo Boss
Dolce & Gabbana
Lacoste
Replay
Gucci
AZ
Flucaril
Parogencyl
Oral B
Kukident
Vicks
(Nyquil/Dayquil)
Dolce & Gabbanna
Max Factor
Wella
Sebastian

43. OLD SPICE

45. Products
Product Types Fragrance Variations Total Products
7 22 96*

46. Value Proposition
Masculinity - Maturity - Confidence
Product: Innovative and masculine
Targeted female viewers, despite the product's target
market being male

47. A Product for Your Hygiene Problem

48. 4 D’s of Marketing
Distinct Desirable
Defendable Deliverable

49. Entry Model
1. Introduce
2 product types, 3 scents
Target: men’s market
2. Utilize
Existing manufacturing capacity in Germany
Import to Italy
3. Ally
Italian PR company and advertisers
4. Share
Distribution channel with Gillette
Expand channels corresponding to growth

50. Entry Model
Introduce
Utilize
Ally
Share

51. Marketing Mix Implementation

52. Product
Fragrance from market
research
Vibrant Packaging
Target Males 16-34
Position Gillette Males
35+
Single package:
- 2.35oz (80ml) stick
- 5oz (150ml) spray
Brand:
Classic, dapper
masculinity

53. Price
€ Stick Spray
Low Cost 2-3 2-4
Super-Premium 19-25 22-35
Old Spice as
mid-premium
pricing
Stick Spray
6 7

54. Place
Super/Hyper
Markets
Online
Retailers
Dense
Cities
Conad eBay Milan
Coop Amazon Florence
Essalunga Naples
Panorama Rome

55. Personal Hygiene Distribution

56. ● Social Media
○ Outsource viral marketing to
local PR firm
○ Satellite to sales
● Scented Magazine Ads
● Television Networks
● Athletic Sponsoring
○ 2014 World Cup
○ 2016 Olympics
● Promotional Special Events
Promotion

58. Product Manager
(From Old Spice American
Parent company)
Sales Manager
(Italian/ Local)
Marketing Manager
(From Old Spice +
local)
Outsourcer
(local marketing
agency &
advertisers)
Operation
Manager
Administrative
Manager
Human Resources

59. • Start investing from the first quarter of 2014
• The initial investment in 2014 is $12.85 million.
• Direct investment from the P&G American
parent company
Finance Source

60. $$$$$
Finance Source
Invest: First Quarter 2014
Initial investment $12.85 million
Direct investment from parent company

61. Market Outlook

62. Market Volume Forecast

63. Financial
Projections
1.50% 2014 2015 2016 2017 2018
Italian Deodorant Market 569.41 577.95 586.62 595.41 604.35
Old Spice Market Share 2.00% 2.40% 2.88% 3.60% 4.32%
Projected Revenue (M) 11.39 13.87 16.89 21.43 26.11
COGS 2.28 2.77 3.38 4.29 5.22
Gross Income 9.11 11.10 13.52 17.15 20.89
SG&A 2.85 3.47 4.22 6.43 7.83
Extra Marketing 10.00 8.00 6.00 3.00 3.00
Total Expenses 12.85 11.47 10.22 9.43 10.83
Operating Income -3.74 -0.37 3.29 7.72 10.05
Taxes -1.17 -0.12 1.03 2.42 3.16
Net Income -2.56 -0.25 2.26 5.29 6.90
Net Profit Margin -22.51% -1.84% 13.37% 24.70% 26.42%

64. Next Steps
Expansion
1. Old Spice
bodywash and soap
2. Italian women’s
market
3. France and Spain
Exit
If the project cannot
reach or beat P&G
general net profit margin
in year three, suspend
the project and
reposition the brand

66. Works Cited

67. OUTLINE