Procter & Gamble Co.

(P&G, NYSE: PG) is a Fortune 500, American multinational

corporation headquartered in Cincinnati, Ohio, that manufactures a wide range of consumer
goods. As of 2008, P&G is the 8th largest corporation in the world by market capitalization and
14th largest US company by profit. It is 10th in Fortune's Most Admired Companies list (as of
2007).[2][3] P&G is credited with many business innovations including brand management and the
soap opera.
According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other
company; the $2.62 billion spent by P&G is almost twice as much as that spent by General
Motors, the next company on the Nielsen list.[4] P&G was named 2008 Advertiser of the Year by
Cannes International Advertising Festival.[5]
History
William Procter, a candlemaker, and James Gamble, a soapmaker, immigrants from England and
Ireland, respectively, who had settled earlier in Cincinnati, who met as they both married sisters,
Olivia and Elizabeth Norris,[6] formed the company initially. Alexander Norris, their father-in
law, called a meeting in which he persuaded his new sons-in-law to become business partners.
On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.
In 1859, sales reached one million dollars. By this point, approximately eighty employees
worked for Procter & Gamble. During the American Civil War, the company won contracts to
supply the Union Army with soap and candles. In addition to the increased profits experienced
during the war, the military contracts introduced soldiers from all over the country to Procter &
Gamble's products.
In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats
in water. The company called the soap Ivory. William Arnett Procter, William Procter's
grandson, began a profit-sharing program for the company's workforce in 1887. By giving the
workers a stake in the company, he correctly assumed that they would be less likely to go on
strike.
The company began to build factories in other locations in the United States because the demand
for products had outgrown the capacity of the Cincinnati facilities. The company's leaders began
to diversify its products as well and, in 1911, began producing Crisco, a shortening made of
vegetable oils rather than animal fats. As radio became more popular in the 1920s and 1930s, the
company sponsored a number of radio programs. As a result, these shows often became
commonly known as "soap operas".
Procter & Gamble headquarters in Cincinnati, Ohio
The company moved into other countries, both in terms of manufacturing and product sales,
becoming an international corporation with its 1930 acquisition of the Newcastle upon Tyne-
based Thomas Hedley Co.. Procter & Gamble maintained a strong link to the North East of
England after this acquisition. Numerous new products and brand names were introduced over
time, and Procter & Gamble began branching out into new areas. The company introduced
"Tide" laundry detergent in 1946 and "Prell" shampoo in 1947. In 1955, Procter & Gamble
began selling the first toothpaste to contain fluoride, known as "Crest". Branching out once again
in 1957, the company purchased Charmin Paper Mills and began manufacturing toilet paper and
other paper products. Once again focusing on laundry, Procter & Gamble began making
"Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. One of the most
revolutionary products to come out on the market was the company's "Pampers", first test-
marketed in 1961. Prior to this point disposable diapers were not popular, although Johnson &
Johnson had developed a product called "Chux". Babies always wore cloth diapers, which were
leaky and labor intensive to wash. Pampers provided a convenient alternative.
Procter & Gamble acquired a number of other companies that diversified its product line and
significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton
Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's
Old Spice, Max Factor, and the Iams Company, among others. In 1994, the company made
headlines for big losses resulting from leveraged positions in interest rate derivatives, and
subsequently sued Bankers Trust for fraud; this placed their management in the unusual position
of testifying in court that they had entered into transactions that they were not capable of
understanding. In 1996, Procter & Gamble again made headlines when the Food and Drug
Administration approved a new product developed by the company, Olestra. Also known by its
brand name Olean, Olestra is a lower-calorie substitute for fat in cooking potato chips and other
snacks that during its development stages is known to have caused anal leakage and
gastrointestinal difficulties in humans.
Procter & Gamble has dramatically expanded throughout its history, but its headquarters still
remains in Cincinnati {Source, Ohio History Central}.
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 stable. The acquisition was approved by the European
Union and the Federal Trade Commission, with conditions to a spinoff of certain overlapping
brands. P&G agreed to sell its SpinBrush battery-operated electric toothbrush business to Church
& Dwight. It also divested Gillette's oral-care toothpaste line, Rembrandt. The deodorant brands
Right Guard, Soft & Dri, and Dry Idea were sold to Dial Corporation.[7] The companies officially
merged on October 1, 2005. In 2008, P&G branched into the record business with its sponsorship
of Tag Records, as an endorsement for TAG Body Spray.[8]
P&G's dominance in many categories of consumer products makes its brand management
decisions worthy of study.[9] For example, P&G's corporate strategists must account for the
likelihood of one of their products cannibalizing the sales of another.[10]
On August 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they
had bought P&G's prescription-drug business for $3.1 billion
List of the product

Twenty-four of P&G's brands have more than a billion dollars in net annual sales,[14] and another
eighteen have sales between $500 million and $1 billion.
Billion dollar brands
• Always is a brand of feminine hygiene products, including maxi pads, pantyliners, and
feminine wipes.
• Ariel is a brand of laundry detergent/liquid available in numerous forms and scents.
• Actonel is a brand of the osteoporosis drug risedronate co-marketed by Sanofi-Aventis.
• Bounty is a brand of paper towel sold in the United States, Canada, and the United
Kingdom (rebranded to "Plenty" in the UK after being sold to SCA Svenska Cellulosa
Aktiebolaget).
• Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers,
toasters, and blenders.
• Crest is a brand of toothpaste.
• Dawn is a brand of dishwashing detergent.
• Downy/Lenor is a brand of fabric softener.
• Duracell is a brand of batteries and flashlights.
• Fusion is a brand of men's wet shave razors and is the quickest P&G brand to have
reached $1 billion in annual sales.
• Gain is a brand of laundry detergent and fabric softeners.
• Gillette is a safety razor manufacturer.
• Head & Shoulders is a brand of shampoo body wash, and deodorant.
• Old Spice is a brand of aftershave and shaving cream.
• Ivory is a soap.
• Nice 'n Easy is a hair coloring product.
• Olay is a brand of women's skin care products.
• Oral-B is a brand of toothbrush.
• Pampers is a brand of disposable diaper.
• Pantene is a brand of hair care products (conditioners/styling aids).
• Prilosec OTC is a brand of heartburn medicine co-marketed by AstraZeneca.
• Pringles is a brand of potato chips.
• Puffs is a brand of facial tissue.
• Secret is a brand of antiperspirant and deodorant.
• TAG is a deodorant and body spray.
• Tide is a brand of laundry detergent.
• Vicks is a brand name of over-the-counter medicines (Formula 44, Sinex,
NyQuil/DayQuil)
• Wella is a brand name of hair care products (shampoo, conditioner, styling, and hair
color).
• Whisper is a brand of pantyliners sold primarily in Asian markets.