Presentation by Olivia Hembrom

Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States, founded by William Procter and James Gamble,In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining the company, dropping around 100 brands and concentrating on the remaining 65 brands, which produced 95 percent of the company's profits.It is a diverse multibrand company which includes brands from different sectors- home care, beauty, grooming, hygiene, food, nutrition, healthcare, pet needs, family, etc

History

1837

1859

1862

1879

1896

1917

1931

1935

1955

1980

1993

2000s

History

Bros in law, William Procter & James Gamble start a partnership, by making and selling soaps and candles

1837

1859

Company employs 80 employees and sales reach $1 million.

1862

Supplies soaps and candles to Union armies during American Civil War.

1879

Develops an inexpensive white soap equal to high-quality, imported castiles. Inspiration for the soap’s name, ‘Ivory’

1896

the plant incorporates the latest technological advances with a pleasant work environment for employees – a progressive approach at that time.

History

1895

King Camp Gillette invents the first safety razor.

1896

P&G’s first color print advertisement – an ad for Ivory – appears in Cosmopolitan magazine picturing this “Ivory Lady.”

1911

P&G introduces Crisco, the first all-vegetable shortening. Crisco provides a healthier alternative to cooking with animal fats and is more economical than butter.

1915

The Company builds its first manufacturing facility outside the United States, in Canada. Employing 75 people, the plant produces Ivory soap and Crisco.

History

1931

P&G’s brand management system begins to take shape in the late 1920s. In 1931, Neil McElroy, the Company’s promotion department manager, creates a marketing organization based on competing brands managed by dedicated groups of people. The system provides more specialized marketing strategies for each brand and Procter & Gamble’s brand management system is born.

1935

The Company expands its international presence with the acquisition of the Philippine Manufacturing Co. in the East. Thus, it spent $2 million on national radio sponsorship, and by 1937 the amount was $4.5 million. In 1939 Procter & Gamble had 21 programs on the air and spent $9 million. That year P&G advertised on television for the first time

1946

P&G begins operating in Mexico – our first subsidiary in Latin America.

1955

Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced.

History

1957

P&G enters the consumer paper products business with the acquisition of Charmin Paper Mills, a regional manufacturer of toilet tissue, towels and napkins.

1960

P&G GmbH opens its first office in Frankfurt, Germany, with 15 employees. Three years later, Germany’s first plant in Worms begins production of Fairy cleaning powder and Dash laundry detergent.

1967

Ariel is introduced and later becomes one of P&G’s leading global laundry brands.

1978

Didronel is introduced. A treatment for Paget’s disease, it is one of the Company’s first pharmaceutical products.

History1984

Gillette acquires Oral B, founded in 1950.

1985

Second, P&G expanded its globalization plans. The Company established a worldwide research and development network, with research hubs in the United States, Europe, Japan and Latin America, and built a solid foundation of truly global brands. These brands include Pantene Pro-V, Always/Whisper, Ariel and Tide, Crest, Pampers, Vicks and Oil of Olay.

1989

The Company enters the cosmetics and fragrances category with the acquisition of Noxell and its Cover Girl and Noxzema products.

History1991

P&G opens its first operation in Eastern Europe with the acquisition of Rakona in Czechoslovakia. And in other Eastern European countries – Hungary, Poland and Russia

1993

Company sales exceed $30 billion . More than 50% of its sales come from outside the U.S.

1996

The U.S. Food and Drug Administration grants approval of Olestra and expands its global acquisition in Germany with acquisition with VP Schickedanz.

1999

Enters the global pet health and nutrition business by acquiring the IAMS Company, a leader in premium pet foods.

12 decades , 12 CEOs

William A. Procter1890-1907

William cooper Procter1907-1930

Richard Dupree1930-1948

Neil H. McElroy1948-1957

Howard J Morgens1957-1974

Edward G. Harness1974-1981

John Smale1981-1990

Edwin L. Artzt1990-1995

John Pepper1995-1999

Durk I Hager1999-2000

A.G. Lafley2000-2009

Robert A. McDonald2009-present

Logo Controversy “And there appeared a great wonder in heaven ; a woman clothed in the Sun and the moon under her feet, and upon her head , a crown of 12 stars.”• The company’s original logo was a star that barge workers painted on

cases of Star Candles to identify them. The symbol later evolved into a mark with moon and stars.

• Rumors began spreading in the 1930s that the ”man and the moon was the representation of the horned devil “ and that the company was related to occult and satanism.

• The moon and stars serve as a reflection of P&G’s unique ability to touch the lives of consumers throughout the phases of their day, their life, and across generations.

• Diversifies range of products – healthcare,

grooming, beauty, household, hygiene

• 1990s- value pricing strategy Currently also reasonable

prices.

Product Price

Promotion Place

• About 140 countries to 5 billion customers

• Manufacturing& distribution networks in all major countries like US UK India China

• Main focus is on celebrity in TV & print media

• Used Olympics in its ads• Advertising hall of fame

award in 2010

Marketting Mix 4 P’s

Marketing Strategy

Expansion Strategies Ansoff Matrix

Market Penetration Product Development

Market Development Diversification

New Products Existing Prroducts

Existi

ng P

rodu

cts

New

Pro

duct

s

1940: Developed by Swiss drug company Hoffman-LaRoche

1947: Debut as a premium hair care line across Europe

1985: Take over by Procter and Gamble (P&G)

1991: Changed name to Pantene Pro-V1995: Procter & Gamble launches

Pantene Pro-V in India.1997: P&G launched Head & Shoulders

in India2004: P&G launched Rejoice in India

Company Background

Company Market Share in India

Sunsilk 19%

Clinic Plus16%Pantene

14%Head & Shoulders

9%

Dove8%

Others34%

Thecompetitors

123

4

5

TheCommunicationObjective

Media UsageMEDIA USAGE NOW PROPOSAL

TV Commercials Radio

Internet Magazines

Newspapers Billboards / Hoardings

P. O. P.

Marketing Mix

Product: Variety of hair care

prodcuts according to hair needs and types

Price:Affordable and available in all

types of packaging

Place: Products available in supermarkets, drugstores, retail

shops, etc

Promotion: Heavy advertising using celebrities

through almost all forms of media

• The company spends $2 billion annually on R&D and another $400 million in foundational consumer research to discover opportunities for innovation, conducting some 20,000 studies involving more than 5 million consumers in nearly 100 countries. 

• P&G is product &quality -based business rather than service based and focuses on business model innovation.

Strategies from the CEO

Transactional learning

Translating idea into concept, into prototypeUnderstand the competitors - who’s trying at what

rate, at what price, under what circumstances.Give room for innovation and techniques.

Some employees go and live with the customers especially in developing and emerging markets for days, being in touch with the customer at store level.

Bringing consumers into offices and running live consumer labs every day, in virtually all the businesses.

Living-it programme

A six- to 12-week experience where participants work at the front end, the ideation end, and any business can send a team in an innovation center at Beckett Ridge that works the commercialization end, to help us understand how and where the company is going, innovation strategies, where we go to retail.

Clay Street

Corporate Social Responsibility

• In partnership with NGOs like Save The Children , Round table India, Army Wives Welfare Association & Navy Wives Welfare Association has helped 280,000 children by building over 140 schools across India.

• Children’s Safe Drinking Water Program reaches people in developing countries where 1bil people do not have access to safe & clean water through PUR packets a water purifying technology. One packet turns 10 lit of dirty water clean & drinkable.

• Aims at providing education to children, toilet facilities, clean drinking water, disaster relief, basic infrastructure like classrooms, library, computers to the under privileged.

• Disaster relief fund – constructing schools and houses in extreme terrain disaster stricken areas likes ladhakh, floodplains of Bihar, Gujrat, Assam.

Controversies

• Price fixing • Animal testing • False claim against drug Prilosec• Ban on Vicks

Winning mantras

Acquisitions Use of Celebrities to promote brands and

CSRCurrently disinvesting & focusing on core products

Sponsors

P&G Advertisement .

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