The Merger Between Gillette and Procter and Gamble Essay -- GCSE Busin

This merger is going to create the greatest consumer-products companyin the world Its a dream deal. Warren BuffettThis was two companies with great products, hale management andterrific business models coming together to create arguably the bestconsumer product company in the world Michael Barbaro, WashingtonPost1 trigger The merger between Gillette and Procter and Gamble is indeed astrategic shanghai on the part of both parties. It is a corporate jointure creating a union between male and female product lines a constringe valued at more than $55 billion dollars. 2 Commanding virtually the entire market, Gillette has been the world leader in theproduction of razors and other skimming products. In 2004, theirglobal trade of the razor market was 71.5%, nearly vanadium times that oftheir nearest competitor. However, Gillettes depth runs much deeperthan simply graze accessories oral care products, cosmetics, and municipal appliances are a significant party of their sales arsenal . With the acquisition of Duracell Batteries in 1995, Gillette thenbecame a major sales force in the battery market. In fiscal year2004, their electronic network sales were $10.47 million, a 13% increase from the 2003 figure. Meanwhile, Procter and Gamble is the biggest manufacturer of domesticproducts, with over 270 brands that are categorized in 6 different marketing sectors laundry and cleaning (detergents), paper goods(toilet paper), beauty care (cosmetics, shampoos), food and beverages(coffee and snacks), female care (personal hygiene products) andhealthcare (toothpaste, medicine). Like Gillette, P&G overly exceededtheir 2004 financial expectations exceeding their sales target by19.6%.3 Both companies share a culture of innovation and ahistory of cooperation and is a marriage that forget most likely lead toprosperous financial returns in the years to come. Background The history of the Gillette Company is incredibly interesting, dating digest to 1894 when it founder, King C amp Gillette, invented the safetyrazor. Gillette developed the idea of a useable razor whileworking as a salesman. In his travels and fundamental interaction with males ofall walks of life, Gillette stumbled upon the idea of the disposablesafety razor that men skimming on their own would find much moreconvenient and drug user friendly. Before the adve... ...tivity Drove Deal, The Washington Post, January 29, 2005.2 Editor, The Latest Mergers Why some will fly and others wont, Knowledge Wharton, March 30, 2005 online http//www.findarticles.com/p/articles/mi_m0EIN/is_2005_March_1/ai_n118352823 P&G 2004 proxy report http//www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf4 William Nickerson Inventor of the Week, http//web.mit.edu/invent/iow/gillette.html5 ICFAI Knowledge center6 ib.7 www.pg.com/company/who_we_are/ourhistory.jhtm8 Ibid.9 www.mind-advertising.com/us/pg_us.htm10 The Rise of the Superbrands, The Economist, Feb5th, 205, p.63.11 http//www.ag ribusinessaccountability.org/pdfs/140_Procter%20Gamble.pdf12 http//www.fumento.com/bomis21.html Procter & Gambles Non- Neither Satan Nor (Sigh) deliveryman.13 Environmental Research Foundation, http//www.ejnet.org/rachel/rhwn349.htm14 http//www.pandgkills.com/shareholder.html15 http//knowledge.wharton.upenn.edu/16 Batchelor, Charles, Dealmakers eye repatriated funds, The Financial Times, Tuesday, March 29th, 19.17 Ibid.