Marketing – Procter & Gamble Company
Company Background:The start of Procter & Gamble came as a business suggestion to both Candle maker William Procter and soap maker James Gamble by their father in law Alexander Norris in 1837. They settled in Cincinnati initially, after having emigrated from England and Ireland respectively. During 1858–1859, sales reached $1 million and employing approximately 80 employees. The American Civil War provided the company with contracts of supplying soap and candles. This also expanded Procter & Gambles consumer to the whole of America.In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floated in water called “Ivory”. William Arnett Procter, William Procters grandson, started a profit-sharing program for the companys workforce in 1887 which ensured that workers would be less likely to go on strike.At the start of 1911, the company had expanded onto other areas of United States so as to cater to the demand of products. Thus, the company began to diversify its products and came up with “Crisco”, a shortening made of vegetable oils rather than animal fats. In 1930, Procter & Gamble acquired Thomas Hedley Co. in England and made its UK Headquarters at Hedley House New Castle, England. Procter & Gamble, continued to introduce numerous new products and brand names over time, along with branching out into new areas such as in 1946 the company introduced “Tide” laundry detergent plus Prell shampoo in 1947. In 1955, Procter & Gamble began selling the first toothpaste containing fluoride, known as Crest. Procter & Gamble diversified again in 1957, by manufacturing toilet paper and other paper products through its purchase of Charmin Paper Mills. In 1960, Procter & Gamble began making Downy fabric softener and Bounce fabric softener sheets in 1972.
One of the most revolutionary products to come out on the market was the companys baby diapers “Pampers”. Before its invention, babies always wore cloth diapers, which were leaky and labor-intensive to wash, Pampers provided a convenient and leak proof alternative.Onwards from 1970s till the 1990s, Procter & Gamble acquired a number of other companies to diversify its product line which included Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell (Noxzema), Shultons “Old Spice”, Max Factor, the Iams Company, and Pantene among others. In 1994, the company faced big losses resulting from levered positions in interest rate derivatives. However, in 1996, Procter & Gamble made headlines when the Food and Drug Administration (FDA) approved a new product developed by the company, Olestra which was a lower-calorie substitute for fat in cooking potato chips and other snacks.In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B to their portfolio.