Essay on Victoria Pump

1821 Words Feb 29th, 2012 8 Pages
Financial Management WAC
Thornton Corporation


Personal Care industry
The personal care industry is a major industry in the US, with 2007 sales exceeding US$21bn. The industry has seen growth of less than 1% during the past four years, with an average growth in prices of 1.7% per annum. The major players in the industry include Procter & Gamble, Kimberly-Clark etc. Personal care products are available throughout the US via five main categories of retailers including mass merchants, club stores, supermarkets, drug stores and dollar stores. It is worth mentioning here that retailers exhibit a lot of muscle when it comes to sales of the personal care products, thus manufacturers of personal care products depend heavily
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Currently, private labels constitute only 5% of sales in many product categories with sales amounting to US$4bn out of the US$21.6bn for the entire personal care category.

T-Corp in the industry
In the private label category, T-Corp has a 28% market share with sales totaling US$1.12bn at the retail level. As shown in Exhibit – 5, the sales of T-Corp’s products depict a very interesting situation. Lets consider each of the five retail categories in detail.
Mass Merchants:
Being the biggest market for T-Corp, mass merchants have displayed a fine performance over the period 2003-2007 with an average growth of 12%. There has been a constant increase in the sales to mass merchants, with 13.5% growth seen in 2004, 14% in 2005, 12.3% in 2006 and 8.5% in 2007, as shown in Exhibit – 5.
Grocery Stores:
Grocery stores have remained a more or less stable market for T-Corp. The average growth over 4 years during the period 2003-2007 is 1.1%, with 2.2% growth occurring in 2004, no increase in growth in 2005 and 2006, and growth slightly picking up in 2007 to 2%, as shown in Exhibit – 5.
Club stores displayed an average growth of 5.3% during 2003-2007. The growth rate in 2004 was 3.7%, 5.7% in 2005, racing to 6.7% in 2006 and decreasing to 5% in 2007, as shown in Exhibit – 5.
Drug stores have displayed an impressive performance over the 4 years, with average growth rate arriving at 9.8%. Exhibit – 5

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