CoverGirl Cosmetics - Research Paper Example

Cover Girl Background Cover Girl is one of the emerging cosmetics brands that Proctor & Gamble has in its portfolio of beauty products. The brand canbe called as emerging because this brand is still not among the billion dollar brands like Olay, Head & Shoulder and Pantene etc. Cover Girl started off its productions in 1961 however P&G acquired this brand in 1991 with the intent to make this brand as a market leader in the cosmetics industry. But even after 20 years of its acquisition, the brand is still struggling to come out of US market and become globally renowned brand.

Since, strong support of P&G is still behind the Cover Girl therefore this brand is still available in the shelves of cosmetics stores and is not seriously exposed to the risk of disappearing from make-up and cosmetics market.Impact of Beauty Segment on P&GSince Cover Girl is among the umbrella of P&G’s billion dollar brands, therefore, the beauty sector of P&G which certainly includes Cover Girl as part of its beauty section. Overall if the beauty section of P &G is observed, this particular section has generated billion dollars brands which are truly the global market leaders in today’s beauty industry.

Olay, Pantene, Head & Shoulder and several other brands contribute remarkably well in reflecting a beautiful picture of financial statements of P&G. These famous brands are the core cause behind this sound financial position of P&G.Relevant RatiosIf some of the relevant ratios are taken into account in respect of beauty products of P&G, two ratios are highlighted in the financial statements of P&G for the year 2011. These two ratios are percentage of Net Sales and Percentage of Net Earnings. Coincidently, the value of both these ratios is computed to around 24%.

If these ratios are analyzed in a bit detail, then it can be observed that P&G generated the sales of around $82.5 billion in the year 2010-11. Among these sales, 24% is contributed by the beauty products that P&G manufactures, which is the most revenues created by any sub-part of P&G. This shows how highly P&G is dependent on the beauty segment. Another ratio reflects the percentage of profitability that beauty segment earned in the period 2010-11 which is again 24%. This 24% means that among the profits of around $11.

2 billion, 24% profit is earned due to the sales of beauty products of P&G. This clearly presents the importance of beauty products in the portfolio of P&G.ConclusionSince the Cover Girl is still seeking its place among the billion dollar brands, therefore, further 5 to 10 years might be needed for Cover Girl to grow on a bigger stage and start substantial contribution in the sales and earnings of P&G. Serious efforts are needed from P&G in order to distribute Cover Girl outside American markets and to circulate it in European and Asian markets by utilizing its already developed distribution channels.

Few stores in Australia and Mexico are currently offering Cover Girl but still more serious efforts are required in order to introduce Cover Girl into other parts of the world.ReferencesMarc Pritchard, President, Global Cosmetics and Personal Care, The Procter & Gamble Company. (n.d.). Retrieved from https://www.wtci.org/events/events-archive/marc-pritchard-president-global-cosmetics-and-personal-care-the-procter-gamble-company/Matusow, Jamie. (2008). P & G is our Company of the Year. Retrieved from http://www.

beautypackaging.com/articles/2008/01/pg-our-company-of-the-year P & G 2011 Annual Report Innovating for Everyday Life. Retrieved from http://annualreport.pg.com/annualreport2011/_files/pdf/PG_2011_AnnualReport.pdf