CoverGirl Cosmetics Research Paper Example | Topics and Well Written Essays - 500 words

CoverGirl Cosmetics - Research Paper Example 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. Since 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. If 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 o f P&G. Since 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