Strategy-in-the-News “P&G Franchises Tide Dry Cleaners” Dave Garten - Business Strategy

Dave Garten - Business Strategy

Dave Garten - Business Strategy

Dave Garten - Business Strategy

Dave Garten - Business Strategy

Dave Garten - Business Strategy Industry Dry cleaning and carwash very fragmented Carwash $20B – top 50 chains 7% market share Dry cleaning Mom & pop operations Opportunity: Repeat of fast food or hotels? Dave Garten - Business Strategy

Dave Garten - Business Strategy P&G Position Leading consumer brands Laundry detergent: Tide #1 28 market share Cleaner: Mr. Clean #1, $500M/year Opportunity to leverage brands Forward integrate Service industries growing Carwash: $20B with 10% CAGR Dry cleaning: ?? Leverage consumer brand (differentiation) Dave Garten - Business Strategy

Dave Garten - Business Strategy P&G Tactics Franchise model Establish wholly-owned sub, “Agile investments” Gain 11-12% revenue of franchised operations Low overhead of franchise operation Income potential ~$300M-500M for ~10% MSS Improve brand strength Dave Garten - Business Strategy

Dave Garten - Business Strategy Thoughts & Question Nice move for incremental profit and brand building. Low risk – high reward opportunity Question: is this a good move in your opinion? If there is time: are there other industries attractive to P&G ripe for consolidation? Dave Garten - Business Strategy