pdf (2MB) - McBride

Managing Main heading and delivering growthofunderheadCore categoriesMcBride has identified and prioritised those categorieswithin the European Household and Personal Careconsumer market which will provide the greatestopportunity for profitable growth for McBride,its Private Label customers and its shareholders.Within McBride’s core business, we consider there to bein the region of 50 Household and Personal Care productcategories, each with different growth dynamics, varyingnot only by region but often demonstrating particularnational characteristics.Future growth dynamics are influenced by a range of factors,including sector maturity, category innovation, demographic andeconomic influences, changing consumer needs and preferences,and often Private Label’s strength within a particular category.Through analysis of the external market dynamics and matchingto McBride’s internal competences and capabilities, McBridehas carefully assessed which of the various categories providethe greatest potential for future growth in our coreWest European markets.In developing and emerging markets, different dynamics prevail.Increasing disposable income, home ownership and increasingknowledge of and concern for hygiene in the home, are drivingthe increasing demand for Household and Personal Care products.The growing presence of multinational retailers in these marketsprovides further impetus for growth and Private Label development.The detailed and comprehensive analysis undertaken as a coreelement of the Project Refresh strategy review, re-confirmed threecore growth categories, characterised by market position, growth,technology and margin potential; namely laundry liquids, machinedishwashing and specialist cleaners. A further four categories wereidentified as providing longer term future growth opportunities,based on broadening of the product range and increasing PrivateLabel penetration. These future growth categories include Skincare,male grooming products, mouthwash and non-aerosol-based airfresheners. The remaining categories, although not demonstratingall the characteristics to be classified as core or future growth,remain important categories for McBride either at Group or nationallevel, providing range, breadth and scale for the business.Changing the way we workIntegral to the Project Refresh review was the need to understandhow category management and development within McBridecould be further enhanced to improve the effectiveness of productdevelopment and increase speed to market. A detailed review of ourways of working identified the opportunity for a more strategicallyco-ordinated approach in a select number of categories prioritisingGroup initiatives, whilst maintaining and managing specific localversus regional opportunities.McBride prioritised four categories for its Category and CategoryDevelopment Leadership approach to exploit research anddevelopment and Group-wide insights, providing a solid platformfor growth and to meet customers’ expectations of McBride’spassion for delivering value-adding Private Label products.What has been achieved so far by the Category and CategoryDevelopment Leaders is discussed on pages 30 to 37.Growth potential in Core categoriesCore growthLaundryliquidsA large category drivenby taking increasing sharefrom laundry powders andtablets. The category ischaracterised by high levelsof innovation. McBride hasa strong and recognisedcapability in concentratedgels and sachets.Future growthMalegroomingThe male grooming markethas been one of the fastestgrowing Personal Caresectors in recent years.This trend is now extendingfrom traditional male showerand shaving products intohigher value segments suchas Skincare. Private Labelsare taking an increasingshare of the malegrooming sector.MachinedishwashingIncreasing dishwasherownership across Europeis a key driver of the growthof the machine dishwashingcategory. Private Label hasestablished positions in manyEuropean markets. McBridewith its soluble film andtab-in-tab formats is wellpositioned to exploit thegrowth in the category.See pages 30 and 31 > See pages 32 and 33 >MouthwashConsumers of all ages arebecoming increasingly awareof the need for good oralhygiene regimes and theirrelationship to overallpersonal health andwellbeing. The mouthwashsector has benefited fromthis trend and furtherpotential exists in manymarkets across Europeand beyond.SpecialistcleanersConsumers’ increasingawareness of the needfor hygiene in the homeand the targeted cleaningpower of trigger productsare key drivers of the sector’sgrowth. Private Labelprovides a recognised valueproposition with McBridecombining scale andtechnical competencein the sector.SkincareThe Skincare sector is oneof the largest segments ofthe European Personal Caremarket. Over the lastfive years Skincare hasconsistently been the fastestgrowing Personal Caresector. This high-value sectorhas a small but growingPrivate Label share andwas therefore a naturalextension to McBride’sexisting portfolio.Non-aerosolAir careThe main influences on theAir care sector today relateto health, wellbeing and theenvironment. With homefragrances now developinginto home decoration aids,McBride, with its productioncapabilities in Europe andChina, is well positionedto take advantage ofthese trends.See pages 36 and 37 > See pages 34 and 35 >Overview Business review Governance Financials Shareholder information28 McBride plc Annual Report and Accounts 2011McBride plc Annual Report and Accounts 201129