Post on 19-Dec-2015
Dave Garten - Business Strategy 6
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
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
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