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

2. Dave Garten - Business Strategy

3. Dave Garten - Business Strategy

4. Dave Garten - Business Strategy

5. Dave Garten - Business Strategy

6. 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

7. 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

8. 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

9. 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