A growing company: Church & Dwight

Church and Dwight is a small company in the consumer product industry. Church and Dwight is a product company for brands such as Arm & Hammer, Trojan, Nair and First Response. The company gets most of its profit from the United States. In the beginning the firm was generally a household company, but now it has grown into a personal-care product company as well. The company has the ability to make an acquisition; they have about $800 million to use for the acquisitions. By executing an acquisition it could make the company more known and more exposed to the emerging markets, because currently it is underexposed. Church and Dwight predict that new product innovation and distribution could result in a revenue growth. Watch out for CHD, it’s on the track to being the next Procter & Gamble!

http://seekingalpha.com/article/261072-small-but-growing-church-dwight-could-be-the-next-procter-gamble

P&G Sheds Pringles

Proctor and Gamble Co. settled on a $1.5 billion deal with Diamond Food Inc. This deal marks P&G's exit from the food business, while Diamond inherits $850 million worth of Pringles debt. this deal will be structured to minimize the tax impact on the Proctor and Gamble share holders. The company will split of an entity to own the Pringles business and merge it with Diamond. This deal should solidify P&G standing in the Household industry as now it is completely out of the food industry and could focus more of its products towards its strong point, Household nondurables.

Palmolive...Antibacterial and More!

When most people think about dish detergent they dont really question whether or not it is antibacterial or that it will kill dangerous germs. For most people they assume that it does all of that. Maybe not? Not until recently has Colgate come out with Palmolvie Antibacterial dish detergent. This is the first of its kind that is clinically proven to reduce the risk of E. coli, salmonella and staph in the kitchen. The product is 99.9% of these bacterias. The problem is that most people do not adequately wash their hands or utensils after touching raw chicken or other bacteria spreading products. This is one of the only products of its kind on the market and it will be interesting to see how other products will compete and progress. This is just another way that the household and personal product industry is progressing to meet the needs of society as people become more and more health conscious.

http://www.happi.com/articles/2011/04/online-exclusive-everythings-in-the-kitchen-sink

Where to Invest

In geeral terms, investors seem to be big fans of the major players in this industry. In Standard and Poors, Proctor and Gamble, Colgate-Palmolive, and Church and Dwight were all rated A+. This shows that the best companies to invest in, rather than small, not well known companies, are the major players who are less likely to go under. This is understandable as these companies did not take a huge hit during the economic recession. Analysts are seeing growth in the industry abroad rather than in the States. As developing countries are becoming developed countries, people in different areas of the world are demanding household and personal products, which is a huge oppertunity for companies both US-based and abroad.

Innovation reaches new levels

Most people recognize the brand Schick when talking about razors, but what company is behind the production of this brand? The company known as Energizer Holdings, Inc. This company expanded into the personal and household products industry around 2003 and is know owner of brands such as Schick, Playtex Products, Hawaiian Tropic sunscreen and Skintimate shaving gels. Razors for shaving may not seem like a product that too many people care about. Surprisingly though, Schick Hydro did a study which resulted in findings that 75% of men always pack a razor for traveling and 82% think shaving should be an easy part of their on-the-go lifestyle. Because shaving is so important to men, Schick realized that it needed to step up its game and come out with a new razor with new features that would entice men to buy it. Even though our economy is slowly climbing out of the recession, many people are still unemployed or not well off and are therefore looking for cheaper alternatives to everyday products. In order to make a profit, companies have to be innovative and find ways to better their products. Schick introduced the new Schick Hydro Blast razor, available in 5 or 3 blades, which also comes with a travel case, and is meant to “deliver the ultimate skin comfort system.” The senior brand manager for the company said “We want men to experience the difference, and show that they don't have to compromise on a dramatically improved shave – even when they're on the go.” One thing that I thought was interesting is that this article mention that Schick has a Facebook page. This is the digital era and if companies don't jump on board with social media they are quickly going to fall out of the game. The mention of Facebook sparked my interest and the fact that the company is offering a contest with current prizes made me want to read more. Companies need to do everything they can to stay competitive and get consumers and it looks like the Schick brand is doing just that. Their knew product has innovative skin guards, a hydrating gel reservoir, a flip trimmer and a new type of handle to deliver the best shave. 

http://finance.yahoo.com/news/New-Schick-Hydro-Blast-Brings-prnews-2811609873.html?x=0&.v=1

Febreze booms in P&G

Febreze (air freshener) has made it across the P&G one billion dollar line. Due to people wanting to spend less because of the economic crisis, Febreze sold greatly, and has managed to become the 24^th P&G brand to reach one billion. Since the economic slowdown, consumers have stopped eating out, and started eating in more often. Febreze is one of the best ways to keep your home smelling refreshed. Febreze is growing faster than any of the other air refreshers like Air Wick and Glade. Febreze aims for different consumers taste for scent, by creating a range of multi different scents. The brand started in 1998 as a fabric treatment to freshen items that can not be cleaned by the washing machine. But now it has become a growing business that has widened its product range. Now, the line includes all types of different sprays, from sprays for cars to pets and carpets. It’s not just a spray anymore, now it has scented candles and diffusers. As a loyal customer to Febreze, I must say that it never fails to leave my room smelling fresh and clean.

http://online.wsj.com/article/SB10001424052748704076804576180683371307932.html

Companies constantly growing

The economic recession was a hard time for businesses all over the world. Many of the major companies at the time went under, and it was almost impossible to start up a new business. Nevertheless, the major players in the Household and Personal products industry were able not only to stay afloat, but expand. Proctor and Gamble was barely effected by the recession in terms of revenue, and Reckitt-Bernckiser was actually able to increase revenue by 1 billion pounds.

Procter and Gamble Financial Statements
http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=PG:US

Reckitt-Bernckiser Financial Statements
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=RB/:LN

Purell Goes "Green" Hand Sanitizer

While there is a huge surge and market trends toward "Green" and organic products more and more companies are working towards highering the standard and pushing the limit to becoming even more envionmentally efficient. Purell hand sanitizer has just set a new and exciting standard. On April 1st the USD announced that they have chosen Purell Green Certified Instant Hand Sanitizer as one of the first products in its new BioPreferred Label Program. There are only 11 companies certified to use the BioPreferred Label and Gojo the maker of Purell is one of them. The hand sanitizer is "made of 100% naturally renewable plant-derived ethanol in a biodegradable formula". Gojo oozing with excitement made a statement "We are extremely pleased to be among the first products to attain the USDA's BioPreferred label. The distinction furthers our company's sustainability efforts to promote hand hygiene for the well-being of people and the environment." This is a huge step and it will be interesting to see how other companies in the Industry will Follow.

http://www.happi.com/news/2011/04/01/purell_green_hand_sanitizer_earns_new_usda_label

Bringing new ideas to old products

Even though the companies in this industry are the creators of many products that people need and use on a daily basis, they still, at times, find it difficult to keep their profits on the rise. In order to do this, they need to constantly be creating new products that solve problems that people have or that appeal to new interests and tastes of consumers. Despite the recession, people are still buying many personal and household products because there are some things people really just feel they can’t live without. This is very good for our industry because it means the recession has not impacted their sales as much as it has in other industries. However, some companies still feel like they need to be devising new features or products in order to gain profit because there are just so many companies in this industry all competing against one another. Unilever, which makes Lipton Tea, Vaseline, Sunsilk shampoos and other well-known brands recently devised a new product, “Dove Ultimate Go Sleeveless.” This product “claims to make underarms not only odor-free but prettier.” The well-developed companies in this industry know how to compete, they found a product that is extremely popular in the US, deodorant and are bringing a new angle on selling it. After doing a good amount of research, they found 93% of women feel their armpits are unattractive. Based on this fact as well as other results and the fact that deodorant sales are continuing to grow, this company as well as others are trying to bring new innovative takes to well-known products while in some cases also addressing problems that consumers may not have realized they even have. In order to flourish in this market, I’ve learned that you need to be on your toes and constantly coming up with a new idea that meets the most consumers needs. Wherever your company is located, you need to meet the unique tastes of those people as well as making your product attractive and interesting. Marketing your product the right way is how you will get the sales and I think Unilever is definitely on to something here. 

P&G open a Tide dry cleaning business

Procter and Gamble get into the dry cleaning business named after it's best selling laundry detergent: Tide Dry Cleaners. Tide is one of the most well known laundry detergent worldwide. Just by having the name Tide, it will draw people who usually use it into the franchise store which includes drive through service and 24 hour pick-up service. P&G plans to use Tide's original scent, that is very familiar and trustworthy to the households that usually use Tide, in its dry cleaning fluids. This new business has lead other local dry cleaners in the same area ( Mason, Ohio) to loss some of their customers. The competition could get intense because of this new business.

http://www.nytimes.com/2010/12/09/business/09tide.html?ref=procterandgamble

Safeya

Marketing

A key factor in getting a product known by the consumers is knowing what the consumers like and what they don't like. In recent years, the house hold and personal product industry has seen a shift in sales from brand name products to generic ones. This is due mostly because of the cheaper prices. Since the generic products don't need to advertise they don't have to pay the cost of marketing for the product and it ultimately brings a cheaper price. Companies in this industry try to tailor their advertisements, placement and pricing of the product to the consumer's desired needs. The major differences between companies in this industry would be price, and product advertisement. If a company can manage to advertise their company to prove the consumer their product is superior than the competition, and will ultimately sell more products.

Sunscreen Goes Thru the Roof!

Sunscreen sales continue to go thru the roof despite a bad economy. Sunscreen seems to be the one industry that continuously comes up with new breaking sciences in the industry. Now there are sunscreens that are above SPF 100 or have a hint of shimmer for a summer time glow and Foam based to rub in better. Some brands are more high end and completely natural and organic. These products are much more expensive but they are still widely used. Sunscreen is a very important thing and should be taken seriously. I believe that the Sunscreen market continues to rises because of the heightened risks of skin cancer and new scientif discoveries in relation to the sun.

http://www.happi.com/articles/2011/03/burnt-offerings

HPP Industry in trouble?

The US economy has been slowly, but constantly, recovering from the economic downturn of 2008. Even so, consumers are still afraid to spend money because the economy has not improved sufficiently enough for consumers to start spending instead of saving. This is bad new for companies in the Household and Personal Products industry, because the economic expansion is causing the price of raw materials to go up, according to happi.com. This will cause the price of the finished product to go up, therefore consumers are less likely to spend money on those products. Even so, suppliers are confident that eventually the continual economic growth will cause consumers to pay for those products regardless of price.
Even though the economy is still suffering, the HPP industry should not suffer significantly, as recent consumer trends towards environmentally friendly cleaners and all natural beauty products are increasing sales even though these products usually cost more. This causes companies to differentiate themselves by advertising the fact that they get their raw materials from a certain country where a certain ingredient is well known to do a certain thing for someone's skin, and no other company does that. It also helps if the company devotes itself to sustainability or being environmentally friendly, like Proctor and Gamble, who devote a third of their website to sustainability. Big companies like P&G bring in billions of dollars each year, but for some reason, it doesn't seem to drive out the competition from smaller companies completely. According to First research by Hoovers Inc, small firms can compete with big firms by offering products unique to their own company. So it appears, even though there is a little trouble for the HPP industry right now, in the end there is a great deal of hope and prospect for economic growth within the HPP industry.

Sources:
http://www.happi.com/articles/2011/03/suppliers-remain-optimistic
http://www.firstresearch.com/Industry-Research/Personal-Care-Products-Manufacturing.html
http://www.happi.com/articles/2007/01/good-enough-to-eat
http://www.happi.com/articles/2008/12/cleaning-products-go-green

Prices go up, but will sales go up?

A well-known company that we haven’t mentioned on our blog yet is Kimberly Clark and this company is a big player in the household and personal product industry. This company is the producer of brands such as Kleenex, Pull-Ups, Kotex, Scott and Huggies which are well-known products people buy everyday. In addition to producing many well trusted products, Kimberly Clark has the No.1 or No.2 share position in over 80 countries around the world. The brands that Kimberly Clark produces are a very necessary part of life for people all over the world because they are used for health and hygiene. Unfortunately though, the company recently announced that their prices will be increasing in North America which is not something most consumers will be too happy about. The price increases will be focused on child-care and consumer-tissue products and will likely be put into effect in the second and third quarter of 2011. These raises are the result inflation causing commodity prices to increase. The companies raw material and energy costs have gone up which leaves them no choice but to raise the prices of their products, for diapers it will be between a 3 and 7 percent increase and for tissue about 7 percent as well. The company hasn’t been seeing as much profit as it would like so hopefully these raised prices will increase profit and not decrease it. Kimberly Clark has been around for a while and it is known as being a trustworthy and respectable company. The corporate responsibility action plan of this company was recently recognized and the company has won numerous awards regarding it. I don’t think the increase in their product price will have a negative effect on the company because people already known and trust them so they aren't going to turn to a less-known brand, especially in terms of personal products. 

Sources: 

http://online.wsj.com/article/SB10001424052748703818204576206380107721692.html?mod=WSJ_Consumerproducts_leftHeadlines

http://investor.kimberly-clark.com/releasedetail.cfm?ReleaseID=558344

Just a note...

Since I believe we've mentioned Colgate before in a blog or two I thought this would be interesting to mention. I came across an article a few days ago that reports that Colgate is being sued by Church & Dwight Inc. for patent infringement on packaging. Church & Dwight Inc. is claiming that Colgate-Palmolive used a specific type of packaging for their electric toothbrushes that Church & Dwight own the patent for. This packaging lets the buyer test the toothbrush in the store for a couple of seconds and then switches off as to not waste battery. The case will likely go to a jury trial but neither side had any comments at the time of this article. Colgate-Palmolive is a well known and trusted company so I was just wondering how this trial might affect them and their customers. Will they lose customers and trust? Or, will there products gain more attention from the publicity and thereby raise sales? It will be interesting to see which happens. I think that if Colgate knew about the patent infringement and went ahead with their product anyway, it says to me that they need to improve their CSR. If they somehow didn't know about the patent, well then they just need to be more aware, for themselves and their customers.

http://online.wsj.com/article/SB10001424052748704615504576172360509745644.html?mod=WSJ_Consumerproducts_leftHeadlines

Estee Lauder Companies Inc gets upgraded by Zacks investment Research

Researches at Zacks Investment Research have upgraded share of Estee Lauder Companies Inc in a research note to investors. Now they have a “neutral” rating and a $100.00 price target on the stock. Estee Lauder Companies Inc. is the known manufacturer and marketer of skin care, make up, and hair care products. Their products are sold in approximately 150 countries. It has the global licensee for fragrances and cosmetics sold under known brand names such as Tommy Hilfiger. Its products are sold in freestanding Company-owned stores, saloons and spas as well. In July 2010, the Company acquired Smashbox Beauty Cosmetics. Shares in Estee Lauder Companies Inc opened at 91.46. Estee Lauder Companies Inc has a 52- week low of $54.17 and a 52-week high of $95.55. The average of the stock’s 50-day moving is about $86.77 and its 200-day moving average is $72.56. Analysts predict that Estee Lauder will post $0.37 EPS next quarter. The company has a market cap of $18.057 billion and a price to earnings ratio of about 29.86.

Safeya

http://www.americanbankingnews.com/2011/02/25/estee-lauder-companies-inc-el-upgraded-by-zacks-investment-research-to-outperform-2/

Human Resources and Leadership

To begin, there is not much data on human resources in this industry, but there are some clear trends that relate to it. Personal and Household products is an international industry, and therefore recent technological and transportation improvements are really helping the industry grow. New advances in technology and transportation will create many jobs within the industry through outlets like telecommunication and the expansion of companies into the global market. As far as organizational structure goes, Proctor and Gamble announced a huge internal reorganization last month. According to the Wall Street Journal, P&G will be combining its three global divisions into two; Beauty and Grooming, and Household Care. This major reorganization will surely have a great effect on the workforce within Proctor and Gamble and throughout the H&P community.

P&G Reorganization

http://online.wsj.com/article/SB10001424052748703445904576117954242388250.html?mod=WSJ_Consumerproducts_leftHeadlines

Investors Want Firms to Come Clean

Due to the recent condition of our economy, investors are putting pressure on the Household Industry to make more price cuts in order to make their products more affordable. On Thursday, chief executives from the industry's top companies will meet in Boca Raton Fl in order for the executives to showcase their new ideas for growth strategies and talk about new products. One important thing to watch out for on Thursday is what plans these industries have in order to cut costs and tighten their belts or even being firings/layoffs. Although many companies are willing to make the necessary sacrifices for the investors, Proctor & Gamble is still resisting large-scale cost cuts or layoffs. It is important to see what will come of this conference on Thursday.

P&G Takes the Lead with LEED

Proctor & Gamble announced that they will be using LEED certification for all of their new sites. The first site which broke ground on February 25, 2011 was the Taicang plant in China. This is the first P&G site pursuing LEED Certification. Keith Harris, P&G global product officer said, "Pursuing LEED certification for all new sites...is the next evolution in our facility eco-design process that will ensure excellence in sustainable design." This is the first step P&G is making towards their long-term sustainability vision. The vision includes powering plants with 100% renewable energy and zero manufacturing waste to landfill. LEED is the United States program for high performance green buildings. In the long run LEED can help save money, water, and energy. This act shows P&G's commitment to CSR and improving the environment for guture generations.

Source:http://www.happi.com/news/2011/02/25/p%2526amp%3bg_looks_to_leed

How do I know which one to buy????

There are some products most people feel they just can’t live without. One of these is toothpaste. But honestly, when there are so many different brands and different kinds of the same product, how on earth are we supposed to know which kind to buy? Shopping for something that should be easy has instead been becoming pretty overwhelming. However, many manufacturers are realizing this and so last year a reported 69 new toothpastes hit stores instead of 102 like in 2007. One well-known company, Proctor & Gamble, which makes the well known brand, Crest reported significantly reducing the number of toothpaste and oral hygiene products that it makes worldwide in the past couple of years. Matt Doyle, the director of global oral-care research and development at this company said “we’ve come to realize that fewer is better.” In addition to companies cutting down the number of products they are creating, stores are also limiting the number of different toothpastes they are selling. Almost everyone in the US uses toothpaste and they use it regularly which has allowed companies to continue upping the price of this product despite the current state of the economy. Companies are also putting more effort into packaging, such as reducing size or making their product more attractive so that customers are more likely to pick their product from the sea of options. In order to remain competitive companies are stepping up their innovation and investing more in trying to make their current products more attractive, rather than overwhelming customers with more new ones. 

Article used:

http://online.wsj.com/article/SB10001424052748703373404576148363319407354.html?mod=WSJ_Consumerproducts_leftHeadlines

L'Oreal acquires Essie nail polish

Essie is the latest nail polish hit in the nail polish world! Essie, a small nail polish company from Astoria, Queens, has hit the big leagues. The company is 29 years old, and sells its products at national drugstores and many retailer shops. Essie has been acquired by cosmetic giant L’Oreal USA. This acquisition is enabling L’Oreal to increase its share in the nail polish market; it has grown significantly year after year. The purchase should be complete within 90 days and is subject to US and international regulatory approvals. Essie has generated $28 million in sales over the last year. L’Oreal USA raked in about $24.7 billion last year. L’Oreal, which owns Maybelline, controls about 9.2% of the nail polish market, competing with Sally Hansen brand, which controls 45%, according to market research firm mintel US. Essie produces more than 300 different colors, has been growing and selling in more than 250,000 salons in 101 counties. US sales of nail polish were about $238 million in 2008, up 5.8% over the previous year. The firm believes that their sales in the category will increase only 0.4% to $239 million at the end of this year.

http://www.crainsnewyork.com/article/20100421/SMALLBIZ/100429960#

Safeya

Barry M. cosmetics

I have always found it interesting to see what companies and brand names have a lot of success in certain countries, but are completely unknown in others. I am familiar with alot of products and services that I would consider world class that are completely heard of in the US, because I am originally from the UK. One such company is Barry M. cosmetics. Barry M. is a cosmetics range that is distributed through pharmacies (like CVS) in the UK. It has been present in the UK since 1982 and has since become one of the UK's best known makeup brands. The range and quality of their products is incredible, and I would actually consider them to be on the same level, if not higher than MAC. But no one in this country has heard of them because they do not have a presence outside of the UK. I firmly believe that within the next couple of years, Barry M. will be a presence in the US as well as several other countries throughout the world.

Barry M. site
http://www.barrym.com/

Despite a profit decrease, Reckitt remains a top competitor

If you were to begin talking about the company Reckitt Benckiser PLC, not many people would know what you were talking about. However, if you mention brands such as Air Wick, Veet, Lysol and Clearisil, people have usually heard of these. Reckitt Benckiser PLC is a household goods and personal products company based in Slough, United Kingdom. The company was founded in 1814, currently operates out of more than 60 countries and sells products in over 180. Despite having many different products out on the market that appeal to many different people, last week the company reported having an 8% decline in profit. According to company representatives this is likely due to the status of the economy. It is also likely that because of a slow global economy and growing cost pressures, the company will see little growth in its earnings this year. Chief Executive Bart Becht said “It is a two-world picture. Europe and North America are not doing well, while developing markets are doing well.” However, despite these current profit declines and the stagnant economy, the company still expects to see sales rising in the future. For many years now Reckitt has been at the top of the industry in terms of market capitalization, so they face a lot of competition from other companies. Recently, there have been increases in commodity prices such as oil, palm oil and plastics, which are all big components of many of Reckitt’s products. These rising costs are a challenge for all the companies in this industry because without raw materials, you have no product.  Still, it doesn’t seem like the company will suffer too much as it remains listed as one of the top companies in the industry in many reports. Furthermore, to help with these decreasing profits, Reckitt remains on the look out for possible acquisitions in emerging markets but hasn’t made anything public about any possible ones at the moment. Having so many different products, created by so many trusted names will definitely keep this company afloat and in competition for that so desired spot as the number one country in the industry. 

Sources:

http://online.wsj.com/article/SB10001424052748704858404576134230786079352.html?mod=WSJ_Consumerproducts_leftHeadlines

http://biz.yahoo.com/ic/323.html

L'Oréal: Is it Still Worth it?

L'Oréal, the makeup company that makes Maybelline Mascaras and Lancome face creams rose in the markets by 5.6% but that doesn't seem to be enough for the companies investors. They fear it is impossible for the company to improve on last years this year. In order to combat this fear they are going deeper into the mass-market cosmetic industry by taking share in hair care products in attempts to combat P&G's Pantene. The company also secured a position in the Chinese cosmetic market. One of the main problems is that the company seems to have a difficult time competing against other cosmetic companies. Other Luxury companies trade on average 15 times that of L'Oreal. If L'Oreal wants to stay a major competitor in the market they are going to have to offer more promotions. But with advertising costs raising, investors are beginning to think that it may not be worth it anymore.

http://online.wsj.com/article/SB10001424052748703786804576138263444535044.html?mod=WSJ_Consumerproducts_leftHeadlines

Tide's Advantages

Most household companies never have to deal with the problem of demand. Their products will always be in demand by their consumers because they are part of our everyday life. One example of how household companies tailor their advertisement in order to obtain a higher demand would be Tide. Tide does great commercials where they show the consumer's (most of the time a mother) kids running around doing sports like soccer or baseball where their uniforms get dirty. They then show us how Tide cleans stains better than the leading brand. By doing this Tide shows their superiority over the competition and ultimately gaining the consumers trust in their product. with an end result in a higher demand for Tide. And with a higher demand for their product more supply will come.

Colgate-Palmolive Co.'s profit sales slip

The world’s largest toothpaste maker Colgate-Palmolive Co.’s has reported declining in its sales due to the harsh competition. It’s fourth-quarter earnings slipped 1.1%. The company uses a costly amount of money for higher materials, and got a lower than expected revenue. Colgate reported a profit of $624 million from usually getting $631 million. The gross profit margin shrunk from 59.5% to 59.1% due to higher material costs, negative foreign exchange effects and increased promotional investments. Colgate’s biggest market by sales is in Latin America, but its profits have dropped 7.5%, and in North America sales have dropped 2%. Looks like this is not a good year for Colgate-Palmolive Co. Colgate is well recognized all around the world and is often what people usually buy. But because other toothpaste brands are cheaper and just as good people have stopped buying Colgate toothpaste.

http://online.wsj.com/article/SB10001424052748704268104576107810159628214.html

Economics of the HPP industry

One of the best things about this industry is that it can range from small shops to multinational corporations. It includes the small soap shop on the back streets of Prague and the Christian Dior store down the street from the Arc de Triomphe. And no matter how successful or prestigious these businesses get they all function under the same economic factors.
Household and Personal products work the same way as any basic business. They produce a product and then sell that product at a local store or online. Most sales for this Industry Occur outside the US, and so these businesses make the most of their money by (if centered in the US) expanding to the Global Market and even by franchising. Also, the industry consists of many different types of products. Lets use a skin care store as an example. This store may sell something like bath bubbles and body lotion. If there is suddenly a decrease in demand for bath bubbles, it does not kill the business because the decrease in demand for bath bubbles does not mean there is a decrease in demand for body lotion.
The costs of the Industry are generally the same no matter what kind of business there is. Money needs to go into the raw and packaging materials (that are not significantly detrimental to the safety of its customers), shipping, labour, ect. Revenue growth, it seems, comes more from expanding geographic reach than more units sold. There is always going to be demand for laundry detergent and household cleansers, and even make up. But depending on where the business is operating from there will be more demand in some areas of the country, and even the world than there will be in others. For example, Elizabeth Arden, the beauty products company, saw a 3.1% net sales increase this quarter, despite the economic recession. This was due, according to the attached article, to a sales increase outside of the US. So it appears functioning outside of the US is one of the best ways to increase sales for Household and Beauty products companies.
Experts foresee a decline in demand for the household and personal products industry. The economic recession as well as rising energy prices and the bad housing market mean that consumers have less disposable income, and therefore the demand for personal products will decrease. There is also a rising cost in raw materials and packaging materials for this industry, which will cause the supply to decrease as well.

Elizabeth Arden
http://www.happi.com/news/2011/02/04/sales_up_at_elizabeth_arden

General Reference
byuibc.org/files/30-30%20Household%20and%20Personal%20Products.doc

Proctor and Gamble Reorganizing for the Better!

P&G a company we all know and love has announced a reorganization on Tuesday. Proctor and Gamble is splitting into two divisions after their well being unit vice Chairman of the company plans to retire. What remains of the global company is the beauty and grooming division and the household care division. All of the divisons are now being evenly split and run by newly appointed vice chairmans. Im sure these new divisions can only make a great company we love and trust even better. Only time will tell how the Global company will proceed or if it will affect the market in anyway shape or form.

http://online.wsj.com/article/SB10001424052748703445904576117954242388250.html?mod=WSJ_Consumerproducts_leftHeadlines

Big Profit Increases for Estee Lauder

The cosmetics company Estee Lauder recently reported that its second quarter profit was boosted by 34% thanks to holiday shoppers and a weaker dollar. The company now has a better outlook for the coming year and a higher share-price as a result. Estee Lauder has been around since 1946 when Joseph and his wife Estee began producing different cosmetic products in New York City. The company has since expanded to include businesses in Europe, the Middle East, Africa and China. Because of the current high level of unemployment in the US, chief executive Fabrizio Freda doesn’t see the high profit being sustainable. However, for the time being the company is greatly enjoying the increased revenue. They recently developed new products such as Clinique’s dark spot corrector and thanks to luxury consumers saw an 11% rise in local currencies. To make other profit, Estee Lauder gained shares in department and speciality stores which helped raise their shares to $91.80, up 14% in the NY Stock Exchange. In addition to doing well in the U.S., the company’s international businesses have also experienced large sales increases in the past quarter. Due to China’s booming economy and emerging middle class women who are seeking more makeup products, Estee Lauder sales rose 29%. Revenue growth also results from the company having many products to sell. Estee Lauder owns Clinique, Origins and Smashbox. In terms of economics, the company did have to shell out some money for restructuring charges but demand has been increasing and so sales continue to rise. It seems there is a high demand in the skin care business, followed by makeup and small fragrances. Estee Lauder’s slogan is “bringing the best to everyone we touch” and people are clearly realizing the quality of this company’s products. Even though most of their products are high end and a bit more expensive, consumers are still purchasing them because they want high quality. Estee Lauder may have been around for a while but that doesn’t mean it’s losing any ground whatsoever. It definitely seems like this a company worth investing in.

See the article:

http://online.wsj.com/article/SB10001424052748703652104576122230192422522.html?mod=WSJ_Consumerproducts_leftHeadlines

CSR in personal products

The Household and Personal products industry generally has a greater pressure than most other industries for Corporate Social Responsibility, specifically in the Environmental, Health, and Safety concerns area. A window cleaner company will not have good CSR if there is a questionable chemical in their product. A make-up manufacturer will not have good CSR if their product causes skin cancer later in life. But some businesses go above and beyond good CSR, and as a result it makes them more successful. For example, L'OREAL, a skin care and makeup manufacturer, is a participant in the UN Global Compact program. The goal of this program is to standardize good practice in CSR throughout the world in regards to Labour, Human Rights, Environment, and Anti-Corruption. L'OREAL has been a member of this program since 2003, and has been actively following the principles of the program since it's entrance. This is an example of a multi-national corporation which is focused on good CSR and Business Ethics.
I was looking at Mission Statements for some of the Fortune 500 companies, and came across Avon's statement, which I found to be quite interesting. It is filled with ambition and confidence, and it is to a certain extent very self-assured. I'm not exactly sure whether I like it or not. Even so, the entire second half of the mission statement is devoted to Corporate Social Responsibility. It also places a big emphasis on the empowerment of women and the ability to climb the corporate ladder.

UN Global Compact- L'OREAL page
http://www.unglobalcompact.org/participant/5978-L-OREAL

Fortune 500 Mission Statements
http://www.missionstatements.com/fortune_500_mission_statements.html

Everyone can shine with Pantene

Pantene’s latest advertisement is presented as an inspirational story that promotes to the public that they can shine from within just as disadvantaged people can overcome physical handicap and achieve success. The ad shows a disadvantaged girl playing the violin on stage, while playing she remembers the past and how she used to get bullied. This demonstrates her ambitions to rival those who discriminate her; the scene tries to make contact with the public’s need to excel and stand out. Towards the end, the girl wins recognition thanks to her shiny hair. Her shiny and smooth hair shows that the girl finally proved herself and outshined others even though she is disadvantaged. The ad draws an equivalence between the disadvantaged girl’s inspirational story and the effect of Pantene shampoo. Just as the disadvantage girl shines in other people’s eyes, damaged hair can transform into shiny hair. By increasing awareness of the disabled and showing people that they can overcome difficulties, Pantene’s builds up a positive brand image that is essential to the company’s success. Although promoting positive social values won’t really benefit Pantene directly, but because of its support it has had a high correlation with its returns on sales ratio. Pantene’s focus on corporate social responsibility promotes its social image as well as its sales. Pantene's mission promotes awareness and inspires people with their slogan “ You can shine”.

http://news.eastvillagers.org/2010/12/03/shine-with-pantene-2/

Dawn Gives Back

Dawn is a common product that I'm sure everyone is familiar with. In their mission statement, the Dawn family make it clear that what they want is what's best for their customers and for the environment. while reading I got the impression that Dawn not only strives to make a powerful dish soap, but also a product that will help reduce the effect that is has on our environment. Their commitment to innovation and non-stop research is a must for them. They understand that not all consumers are the same in that they have different preferences, so Dawn came up with a tool that helps its customers discover a Dawn soap that best fits them. Aside from all their innovations and consumer oriented products, Dawn also gives back to the environment. For the past 30 years, Dawn has helped clean up wildlife that has been affected by oil spills by giving their liquid to help clean the animals, donating money to funds, and by helping out with important conservation projects. A lot of household industries could learn a lot from Dawn, not only from their mission statement, but also by their actions.

Do other countries do it better?

9 times out of 10, when you pick up a toy or a product around your house, it will say "Made in China" or "Made in Japan" or some other country that is not the United States. But why is this? While one reason is that labor is often cheaper in these countries or they have more access to the raw materials, another reason is simply that these products are cheaper and just made better. Shiseido, Co. is a Japanese cosmetics company that is currently targeting Chinese consumers with new, low-priced quality makeup. Chinese women have a desire for skin-care and makeup products that are of a good quality but are not super expensive. This desire has been growing in recent years and Shiseido is looking to take advantage of it. In Japan, the company had not been doing as well because Japanese women were cutting back on their spending, looking to spend on only more sophisticated goods. The company has realized this and is bringing in new teams of beauty experts as well as other people to help the company increase its profits. One of the main things about Shiseido that does capture consumers is that they make quality skin-care products that fit the exact needs of both Chinese and Japanese women. Additionally, Shiseido is known for being a reputable company. According to Shiseido's CSR website, "Shiseido's corporate ethics activities aim to establish the company as a distinctive presence, one that is of use to and needed by people worldwide, through strict compliance with laws and regulations and by raising the value of Shiseido Group brands." The company has entire website devoted to explaining their Corporate Social Responsibility and they even have something entitled “The Shiseido Code” which is a set of specific ethics and behavior standards that every employee must follow. When someone becomes an empoyee they go through corporate ethics training which includes information on human rights awareness. This company takes pride in doing things the right way and constantly takes steps to improve upon themselves and their products. More American companies should strive to follow in their footsteps. 

Here's the evidence:

http://online.wsj.com/article/SB10001424052748704031004576099100169852950.html?KEYWORDS=cosmetics

http://www.shiseido.co.jp/e/csr/manage/ethic.htm

Johnson and Johnson a Company with a Mission

Johnson and Johnson as a typical household name we all know and love. We hold it to high standard because it offers quality products that we can trust at reasonable prices. After reading Johnson and Johnson's credo it is easy to see how they were able to make a name for themselves and stand so strong. The company takes all factors into consideration. They mention that their first responsibility is to doctors, nurses, patients, mothers, fathers, suppliers, distributers, and of course their employees. When considering their customers, they constantly strive for high quality and reasonable prices. The company also states that their suppliers and distributer must have opportunities to make a fair profit. Aside from their customers the other most important aspects are their employees. To them every employee must be considered as an individual whom deserves respect and dignity along recognizing their merit. Their employees must feel safe in their jobs, which includes have the right to fair compensation and clean, orderly and safe working conditions. The acknowledge that the families of their employees are a big and important responsibility. Johnson and Johnson also recognizes the community and wants to encourage civic improvements, support of charities, and protecting the environment and natural resources. The last and final responsibility they see is to their stockholders. They promise to continue research, innovative programs, new products and much more. Johnson and Johnson is a company that covers just about anything in their mission statement, which is quite impressive. No wonder they have been around forever and will continue to supply great products at reasonable prices.

http://www.jnj.com/connect/about-jnj/jnj-credo/

Side effects found in baby oil

Most of us think that baby oil is the safest oil we can use, but by using it we could be harming ourselves. It has found that baby oil, which is 100% mineral oil, has a petroleum ingredient that coats the skin just like plastic wrap. This causes the skin’s natural immune barrier to become disrupted as this plastic coating reduces its ability to breathe and absorb the natural moisture and nutrition. The skin does not have the ability to release toxins because of this plastic wrap, which promotes acne and other disorders. This process slows down skin function and normal cell development causing the skin to prematurely age. Industries that produce these baby oil’s such as Johnsons and Johnsons need to discontinue this product until it is safe enough for use without any side effects. Because it is such a known and trustworthy company, people don’t expect it to be harmful. The ethical thing for this industry to do is to let their customers known the truth behind the product, and not try to fool people by calling it a gentle baby product.

Is Your Moisturizer Living an SPF Lie?

Every morning thousands of women and surprisingly some men wake up and apply their favorite facial moisturizer with an additive of some sort of sun protection factor (SPF). We apply these lotions to moisturize our skin and as an added protection for our faces from the ultra violet rays of the sun. Or so we think. Apparently, very few facial creams truly deliver what is promised of the UVA protection. In fact, most do not contain the correct combination or amount of ingredients to provide satisfactory protection. The worst part is that we end up spending tons of money testing out moisturizers until we find the one that we like and spend even more money only to learn that it doesn’t work as we have always been told. The only question I am left unanswered is, do these companies know about their faulty products. I think yes.

Snow Shovels and Ethics

At first glance, one may wonder what snow shovels or snow blowers have anything to do with the ethics of the household and personal products industry. However, a closer look will reveal that one can actually reveal a lot about the other. Snow has always existed and has always been something that people have to deal with. It often traps people in their homes, keeps them from getting to work, and ruins travel plans. So what is being done to end this problem of large amounts of snow? Well, nothing can be done to change weather patterns or how could it gets outside, but something can be done about how we deal with the snow that falls. In the past people had two options, shovel the snow or let it melt. Now though, there exist a multitude of snow-clearing machines, such as "the Snow Joe, the Sno-Thro, the SnoBoss, [and] the Sno Wovel." More and more companies are coming up with new ways for people to get rid of snow quickly, easily, and less painfully. As people age, it often becomes more difficult for them to shovel snow, but now there are snowblowers with heated handles, new kinds of snow shovels that are easier to use, and even self-melting driveways and sidewalks for the bigger spenders. Consumers want products that make their lives easier. The household and personal products industry seeks to create prodcuts that consumers will buy and so it is their duty to produce products that will make life easier. It makes sense for them to create products that are helpful to their buyers because then their profits will increase. Rather than worry about creating a product that will cost more and earn them more profit, the industry faces challenges of coming up with products that will help people. One woman, Barbara Krashnack, "bought seven SnoBoss shovels--three for herself and four to give as gifts." The consumers will buy helpful products and they will buy a lot of them. There will be less consequences for the companies to face in the long run if they make better, more helpful products now.

Work Cited: http://online.wsj.com/article/SB10001424052748703954004576089904229906370.html?mod=WSJ_LifeStyle_HomeNGarden#articleTabs%3Darticle

Ethical Choices

Throughout an industries functional lifetime, it faces certain choices it's CEOs must make in order to make sure that they live up to their name and reputation. GE is a great example of an industry that strives to constantly improve their products and reputation. GE's profits recently rose as their sales gains return. Any number of things could be done with these new profits, but one of the first things Chief Executive Jeff Immelt stated they would work on would be to work on their organic industry. Because of these ethically sound decisions made to take the majority of the profits and putting them back into the company, it is safe to say that GE has its priorities straight.

Ethical Beauty Products

Household and Beauty products, it seems to me, have harder ethical standards to meet than most other industries. Things that are being used around the house, things used to clean and things that are being put in your body all contain various chemicals and substances that could be toxic or harmful to those who come in contact with them. For example, Windex can cause irritation to the skin or eyes if exposed to those areas. Other products, like hairspray, are highly flammable and pose certain risks to the safety of the people using them. These products have to be heavily regulated so that they do not cause permanent or fatal damage to those people using them.

A popular way of testing how harmful a product is is to test the product on animals to see the effects they have. This is considered by many to be very unethical, especially by animal rights organizations and environmentalist organizations. It is also very unattractive to the buyer if a company uses animal testing, as it is widely considered as immoral. Companies will generally take great pride in the absence of animal testing, because it shows great Corporate Social Responsibility and is overall attractive to the consumer. For example, a British soap company called Lush takes great pride in their eco-friendliness and good ethical standing. It gives money to climate change groups to compensate for international travel, does not package most of its products to avoid using plastic packaging, and does not import from suppliers who use animal testing. Lush is a very successful enterprise, as it has 702 locations in 44 countries. This is an example of a successful beauty products company that is ethically sound.

Article on the Lush chain:

http://www.ft.com/cms/s/0/eea38a54-144d-11e0-a21b-00144feabdc0.html#axzz1Bu8hjk4V