Competitor Analytics Case Study

PRO C T ER & G A M B L E S EL L S PE T C A R E BUS I N E S S TO M A R S I N C

Procter & Gamble (P&G) sold the majority of its pet care brands to Mars in 2014, as its pet
care unit was underperfoming in the years leading up to the deal. Selling the brands allowed
the company to concentrate on its household goods business. Mars, on the other hand,
strengthened its position in North America, one of its weaker regional markets. An acquisition
of this size requires thorough analysis from both companies. This case study highlights how the
Competitor Analytics tool would have aided each company in decision making.

SITUATIONAL ANALYSIS
PRO C T ER & G A M B L E

MARS

Strengths: P&Gs Iams brand was the leader in the

Strengths: Mars was a leading player in pet care globally

premium segment in North America despite sluggish sales,

controlling 19% of North Americas pet care market in 2012.

Weaknesses: P&G faced share erosion in the years leading

up to 2014. Many of its brands were the target of recalls
and its acquisition of natural pet food maker Natura was
unsuccessful, with the company failing to translate its niche
appeal to a wider market.

and had a history of successfully integrating existing brands

into its portfolio, including more niche pet care brands.

Weakness: Mars controlled a small share of the North

American pet care market, behind market leader Nestle and
second-ranked P&G.

VISUALISING COMPANY POSITION WITH COMPETITIVE ANALYTICS TREEMAP

The Competitor Analytics treemap shows Procter & Gambles presence in the global pet care market. The size of the box refers
to retail value sales, and the colour represents growth. The darker the green, the stronger the growth. The darker the red, the
stronger the decline. The treemap below shows P&Gs pet care business was struggling over 2008-2013, declining in its core US
market where it derived nearly half its sales.

P OT EN T I A L
ACQ U I S I T I O N
TA R G E T S

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VISUALISING THE COMPETIVE LANDSCAPE

Mars situation was opposite P&Gs. Overlap matrices in Competitor Analytics visualise where companies are strong and weak in
specific countries and industries. The matrice below shows Mars relative position in pet care compared to Nestle, its key competitor.
Unlike P&G, Mars is one of the leading players globally. Mars was the market leader in Western Europe and other emerging markets
but its position in North America remained weak. Mars needed to do something to spur sales there, leading it to consider acquiring
another brand with a strong footprint in North America.

UNCOVERING ACQUISITION TARGETS

To uncover possible acquisition targets in North America, Mars could have used the competitors module in Competitor Analytics.
This tool shows competitive dynamics over time, visualising Mars strongest competitors in terms of strategic similarity and growth.
The higher a company is on the vertical axis, the more strategically similar it is to Mars. The more it extends to the right, the faster it is
growing. The tool shows Nestle was Mars biggest competitor in the US. P&G, Colgate-Palmolive and Del Monte Foods Co. were all
competitors but were not growing as quickly or as strategically similar to Mars, making them potential acquisition targets.

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USING BRAND DATA FROM PASSPORT TO PINPOINT ACQUISITIONS

To complete its analysis of P&Gs fit as a target acquisition Mars relied on brand data from Passport to see which brands were
performing the best. P&Gs Iams brand controlled 5.7% of the North American pet care market, making it the brand leader.
Mars Pedigree brand ranked second, but its next biggest brand whiskas ranked 15th. By acquiring the leading brand in North
America, Mars hoped to extend its global expertise in pet care through economies of scale and marketing knowledge.

Brand Shares (by Global Brand Name)

% breakdown
Brand

Historic

Company name (GBO)

Retail Value RSP

2009

2010

2011

2012

2013

North America
Pet Care
Iams

Procter & Gamble Co, The

6.7

6.1

5.7

5.5

5.2

Pedigree

Mars Inc

5.0

4.3

4.3

4.3

4.2

Purina Friskies

Nestl SA

3.5

3.7

3.8

3.9

4.0

Hill's Science Diet

Colgate-Palmolive Co

4.0

3.7

3.7

3.7

3.7

Purina Beneful

Nestl SA

3.0

3.2

3.2

3.2

3.2

Purina ONE

Nestl SA

2.5

2.5

2.5

2.7

2.8

Purina Dog Chow

Nestl SA

2.4

2.5

2.8

2.8

2.8

Frontline

Sanofi

2.8

2.9

2.8

2.5

2.6

Blue Buffalo

Blue Buffalo Co Ltd

1.3

1.7

2.1

2.3

2.5

Hill's Prescription Diet

Colgate-Palmolive Co

2.3

2.3

2.1

2.2

2.2

Nestl SA

2.2

2.2

2.2

2.2

2.2

RESULT
Fancy Feast

Purina Tidy Cats

Nestl SA
1.7
1.7
1.7
1.7
1.9
Mars acquired P&Gs Iams, Eukanuba and Natura brands for US $2.9 billion, increasing its share of the North American dog and
Advantage
Bayer
AG
1.2
1.4
1.4
1.6
cat food market from 16% to 25% and allowing it to compete with Nestls 36% share. The Competitor Analytics tool would 1.7
have
simplified
thisAlpo
process, allowing eachNestl
company
dynamics,1.7
relationships
Purina
SAto easily monitor competitive
1.7
1.7and opportunities.
1.7
1.7
Whiskas

Mars Inc

1.3

1.5

1.6

1.6

1.6

Kibbles 'n' Bits

Del Monte Foods Co

1.5

1.6

1.7

1.6

1.6

Nutro

Mars Inc

1.3

1.4

1.5

1.5

1.5

Meow Mix

Del Monte Foods Co

1.6

1.5

1.5

1.4

1.4

Milk-Bone

Del Monte Foods Co

1.3

1.2

1.2

1.3

1.2

Fresh Step

Clorox Co, The

1.1

1.1

1.1

1.2

1.2

Purina Pro Plan

Nestl SA

1.1

1.1

1.1

1.1

1.2

Arm & Hammer

Church & Dwight Co Inc

0.9

1.0

1.1

1.2

1.1

Purina Cat Chow

Nestl SA

1.4

1.4

1.3

1.1

1.0

9 Lives

Del Monte Foods Co

1.1

1.0

1.0

1.0

1.0

Natural Balance

Del Monte Foods Co

1.0

Waggin' Train

Nestl SA

0.9

1.0

0.9

0.9

Hartz

Hartz Mountain Corp

0.7

0.8

0.9

0.9

0.9

Purina Puppy Chow

Nestl SA

0.8

0.7

0.7

0.7

0.7

Purina Veterinary Diets

Nestl SA

0.7

0.7

0.7

0.7

0.7

Cesar

Mars Inc

0.8

0.8

0.7

0.7

0.7

Milo's Kitchen

Del Monte Foods Co

0.2

0.4

0.7

Beggin' Strips

Nestl SA

0.6

0.6

0.6

0.6

0.6

Pup-Peroni

Del Monte Foods Co

0.5

0.6

0.6

0.6

0.6

Eukanuba

Procter & Gamble Co, The

0.8

0.7

0.7

0.6

0.6

Kit 'N Kaboodle

Nestl SA

0.3

0.3

0.3

0.4

0.5

Nutro Natural Choice

Mars Inc

0.4

0.5

0.5

0.5

0.5

Denta

Mars Inc

0.2

0.2

0.3

0.3

0.5

Royal Canin Veterinary

Diet

Mars Inc

0.4

0.4

0.4

0.5

0.4

Maxx

Nestl SA

0.4

0.4

0.4

0.4

0.4

Gravy Train

Del Monte Foods Co

0.3

0.2

Scoop Away

Clorox Co, The

0.5

0.5

0.3 www.euromonitor.com
0.3
0.4
Euromonitor
International
0.5
0.5
0.4

Royal Canin

Mars Inc

0.4

0.4

0.4

0.4

0.4

Purina Fancy
Feast/Gourmet

Nestl SA

0.2

0.3

0.4

0.4

0.4