Procter & Gamble
From Wikipedia, the free encyclopedia
| Procter & Gamble Co. | |
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| Slogan | Touching Lives, Improving Life. |
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| Type | Public |
| Founded | 1837 |
| Headquarters | One Procter & Gamble Plaza, Cincinnati, Ohio, USA 45202 |
| Industry | Consumer goods |
| Products | Consumer goods |
| Revenue | $56.741 billion USD |
| Employees | 140,000 |
| Website | www.pg.com |
Procter & Gamble Co. (P&G, NYSE: PG) is an American global corporation based in Cincinnati, Ohio that manufactures a wide range of consumer goods.
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[edit] History
William Procter, a candlemaker, and James Gamble, a soapmaker, formed the company known as Procter & Gamble in 1837. The two men, immigrants from England and Ireland respectively, who had settled earlier in Cincinnati might never have met had they not married sisters, Olivia and Elizabeth Norris, whose father convinced his new sons-in-law to become business partners. On October 31, 1837, as a result of Alexander Norris' suggestion, a new enterprise was born: Procter & Gamble.
The company prospered during the nineteenth century. 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. Once the war was over and the men returned home, they continued to purchase the company's products.
In the 1880s, Procter & Gamble began to market a new product, an inexpensive, yet floating soap. The company called the soap Ivory. In the decades that followed, Procter & Gamble continued to grow and change. The company became known for its progressive work environment in the late nineteenth century. William Cooper Procter, William Procter's grandson, established a profit-sharing program for the company's workforce in 1887. He hoped that by giving the workers a stake in the company, they would be less inclined to go on strike.
Over time, the company began to focus most of its attention on soap, producing more than thirty different types by the 1890s. As electricity became more and more common, there was less need for the candles that Procter & Gamble had made since its inception. Ultimately, the company chose to stop manufacturing candles in 1920.
In the early twentieth century, Procter & Gamble continued to grow. 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. In the early 1900s, Procter & Gamble also became known for its research laboratories, where scientists worked to create new products. Company leadership also pioneered in the area of market research, investigating consumer needs and product appeal. 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."
Throughout the twentieth century, Procter & Gamble continued to prosper. 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. In addition, 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 1950. 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 simplified the diapering process.
Over the second half of the twentieth century, Procter & Gamble acquired a number of other companies that diversified its product line and increased profits significantly. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell, 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 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 substitute for fat in cooking potato chips and other snacks. Procter & Gamble has expanded dramatically throughout its history, but its headquarters still remains in Cincinnati. {Source, Ohio History Central.}
In January 2005 P&G announced an acquisition of Gillette to form the largest consumer goods company, displacing the Anglo-Dutch 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 has agreed to sell its SpinBrush battery-operated, electric toothbrush business to Church & Dwight. It also plans to divest Gillette's oral-care product line, Rembrandt. The deodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to Dial Corporation.[1] The companies officially merged October 1, 2005.
P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study. For example, P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another.[2]
[edit] Controversies
[edit] Animal testing
A number of animal rights organizations, notably People for the Ethical Treatment of Animals, the British Union for the Abolition of Vivisection, and In Defense of Animals, have criticised Procter & Gamble for the animal testing that they carry out for a wide range of their products, including the Iams pet food brand.
The ASPCA participates on the Iams International Animal Care Advisory Board. This board provides input to the Iams Company on animal research issues. The Iams Company has requested that members of the board conduct unannounced site visits to Iams' research facilities.
The American Kennel Club has issued a statement supporting the Iams Company.
The American Veterinary Medical Association has issued a statement supporting the Iams Company.
[edit] Downsizing
Documentary filmmaker Michael Moore made a visit to Procter & Gamble in his documentary The Big One about their downsize of the workforce.
[edit] Logo controversy
The company received unwanted media publicity in the 1980s when an urban legend spread that their previous corporate logo was a satanic symbol. The accusation is based on a particular passage in the Bible, specifically Revelation 12:1, which states: "And there appeared a great wonder in heaven; a woman clothed with the sun, and the moon under her feet, and upon her head a crown of twelve stars." Since P&G's logo consists of a man's face on a moon surrounded by thirteen stars, some have claimed that the logo is a mockery of the heavenly symbol alluded to in the aforementioned verse, and hence the logo is satanic. Where the beard meets the surrounding circle, a mirror image of 666 can be seen when viewed from inside the logo, and this has been interpreted as the reflected number of the beast, again linked to satanism. Also, there are two horns like a lamb that are said to represent the false prophet. These interpretations have been denied by company officials, and no evidence linking the company to the Church of Satan or any other occult organization has ever been presented.
This rumor is ironic in view of the general reputation of the company as being extremely moralistic[citation needed], or as some members of the trade have referred to the company, "those Calvinists at 6th and Sycamore,"[citation needed] referring to the location of the company's former headquarters in Cincinnati.
The company has sued and attempted to sue a number of companies and individuals who have spread rumors of this type[citation needed], in some instances because they sell competitive products and have spread such rumors for the purpose of tarnishing P&G's image to increase sales of their own brands.[citation needed] An example of one such rumor was that the president of P&G had appeared on a Saturday edition of the Phil Donahue show, and declared that he was a satanist and that the company's logo was satanic. This rumor circulated despite the facts that the company's president has never made such a statement in public; had never appeared on Phil Donahue's show; and that Donahue's show does not run on Saturdays.[1] However, the continuous media coverage prompted P&G to adopt an entirely new logo consisting of just the letters P&G. In television commercials in Hong Kong and China, the former P&G logo still appears at the end of each commercial. It also still appears on the Company's packaging that it sends to retailers.
A Dilbert strip pokes fun at this controversy. In the strip, Dilbert asks "Phil, the Prince of Insufficient Light" what he does for money. Phil responds, "Corporate sponsorship. Proctor and Gamble pays me to stay away from them."
[edit] Toxic Shock Syndrome
In September 1980, P&G had to recall its Rely brand of tampons after they were linked to Toxic Shock Syndrome.[citation needed]
[edit] Research
In December 2005 the Pharmaceutical division of P&G was involved in a dispute over research involving its osteoporosis drug Actonel. The case was discussed in the media Doctors for Research Integrity, and more recently on a blog Scientific Misconduct Blog
[edit] Operations
Effective April, 2006, the company's operations are categorized into 3 "Business Units" with each Business Unit divided into "Business Segments," according to the company's Investor Relations Fact Sheet
- P&G Beauty & Health
- Beauty Care segment
- Health Care segment
- P&G Household Care
- Pet health, snacks and coffee segment
- Baby Care and Family Care segment
- Fabric Care and Home Care segment
- Gillette
- Duracel and Braun segment
- Blades and razors segment
Gillette is supposed to be integrated fully into P&G by January 2007 according to The Latest FAQs.
[edit] Corporate governance
Current members of the board of directors of Procter & Gamble are: Norman Augustine, Bruce Byrnes, Scott D. Cook, Joseph Gorman, A.G. Lafley, Charles R. Lee, Lynn M. Martin, W. James McNerney, Jr., Johnathan Rodgers, John F. Smith, Jr., Ralph Snyderman,Margaret Whitman, and Ernesto Zedillo.
[edit] Product brands
22 of P&G's brands have more than a billion dollars in sales.
- See a full List of Procter & Gamble brands
[edit] Current brand details
- Always is a brand of feminine hygiene products, including maxi pads, pantiliners, and feminine wipes, produced by Procter & Gamble.--See also Brand homepage; related trademarks: Ultra Thins; Flexi-Wing; Maxis; Alldays; CleanWeave
- Bounty is a brand of paper towel sold in the United States and British Isles and manufactured by Procter & Gamble. Its well-known advertising slogan is "The Quilted Quicker Picker-Upper ... Bounty!" Procter & Gamble claims that the brand is more absorbent and larger than other brands of paper towel on the market. --See also Brand homepage
- Cascade is a brand of dishwasher detergent. Its advertising frequently claims that it "leaves dishes and glasses virtually spotless."
- Cheer is a powdered laundry detergent.
- Crest is a brand of toothpaste. -- See also Brand homepage
- Folgers is the top selling brand of coffee sold in the United States, and is known for its innovative products such as new Simply Smooth as well as new Folgers Gourmet Selections. Its well-known advertising slogan is "The best part of waking up, is Folgers in your cup!" --See also Brand homepage. P&G also makes Millstone brand coffee.
- Luvs is a sister brand of disposable diapers made by P&G, who also makes Pampers. At one time, this was a "deluxe" diaper until the late 1990s when the brand was turned into a budget brand of diaper.
- Pampers is a brand of disposable diaper marketed by Procter & Gamble worldwide. The main competitor in the United States is the Huggies brand. Also marketed under the Pampers brand is a disposable training pant bearing the sub-brand Easy Ups. Pampers introduced a mascot called "Pampa" ("Bang Bang" in China), an elephant, in several markets, despite Pampas being lowland plains in South America.--See also Brand homepage
- Scope is a brand of mouthwash.
- SK-II is the leading prestige and high-end beauty brand by Procter & Gamble.
- Tampax is a brand of tampon produced by Procter & Gamble.--See also Brand homepage
- Tide is the company's best selling laundry detergent.
Gillette Duracell
[edit] Historic product brands
Brands owned by Procter & Gamble in the past, but since divested:
- Biz, sold to Redox Brands in 2000
- Clearasil, over-the-counter acne medicine long since sold to Boots Healthcare.
- Coast, bar-soap brand sold to Dial Corporation in 2000.
- Comet, long-time P&G brand of cleanser owned now by Prestige Brands.
- Crisco (vegetable oil and shortening) and Jif (peanut butter)--divested by Procter & Gamble in a spinoff to their stockholders, followed by an immediate merger with The J.M. Smucker Company in 2002.
- Duncan Hines packaged cake mixes, sold to Aurora Foods (now Pinnacle Foods) in 1998.
- Hawaiian Punch, now owned by Dr Pepper/7up.
- Gleam was a toothpaste which is still manufactured.
- Lava, sold to WD-40 in 1999.
- Oxydol, sold to Redox Brands in 2000; was P&G's first laundry detergent.
- Prell shampoo, sold to Prestige Brands International in 1999.
- Spic and Span, now owned by The Spic and Span Company, a division of Prestige Brands.
- Sunny Delight orange drink, spun off in 2004.
- Sure anti-perspirant/deodorant line was sold in October 2006 to brand-development firm Innovative Brands.
Brands owned by Procter & Gamble in the past, but since phased out:
- Both Banner and White Cloud toilet tissues were mergered with the company's better known product, Charmin.
- Bold, Laundry detergent with a built-in fabric softener.
- Citrus Hill, orange juice drink last made in 1992.
- Dash Laundry Detergent.
- Salvo non concentrated dish detergent (sold in the US 2004-2005 it's still sold in latin America)
- Thrill was a dishwashing liquid.
- Wondra was a type of skin softner.
[edit] Procter & Gamble Productions
P&G produced and sponsored the first radio soap operas in the 1930s. When the medium switched to television in the 1950s and 1960s, most of the new serials were sponsored and produced by the company. Two of their serials, As the World Turns and Guiding Light, are still on the air today and are distributed by Procter & Gamble Productions.
List of past serials produced by P&G:
Procter & Gamble also was the first company to produce and sponsor a prime-time show, Shirley, starring Shirley Jones, in 1979; it lasted 13 episodes. They also produced TBS' first original comedy series, Down to Earth, which ran from 1984 to 1987 (110 episodes were produced).They also distributed the syndicated comedy series Throb. Procter & Gamble Productions co-produced Dawson's Creek with Columbia Pictures Television.
In addition to self-produced items, P&G also supports many Spanish-language novelas through advertising on Univision, Telemundo, Telefutra, Azteca and many more channels. P&G was the one of the first mainstream advertisers on Spanish-language TV during the mid eighties.[citation needed]
[edit] See also
In 1908, David B. Gamble turned to brothers Charles Sumner Greene and Henry Mather Greene of Greene and Greene to design his winter estate in Pasadena, California known now as Gamble House
[edit] External links
- pg.com: Procter & Gamble Web site
- Procter & Gamble Company Profile and News Archive
- The truth about Iams
- Yahoo profile
- 'Fatwa' helps Procter & Gamble in Anti-Counterfeiting Campaign
- Procter & Gamble India Unofficial Blog
- P&G's Environment and Safety page
- Community Action
[edit] Criticism
- Iams cruelty
- Boycott to Procter & Gamble Against the animal testing by Procter & Gamble
- McSpotLight.org: Procter & Gamble in the McSpotlight also critical
- List serve of HOPE (Help Our Polluted Environment) in Taylor County, FL, US
- FSU PowerPoint "What Stinks", that names the P&G/Buckeye mill in Perry Florda in its sequence of pollution disasters caused by pulp mills.
- Scientific Misconduct Procter & Gamble involved in a dispute over scientific procedure and hiding of information in research of the drug Actonel
[edit] References
- ^ Wherrity, Constance. "Dial Agrees to Buy P&G Deodorant Brands", Pierce Mattie Public Relations New York blog, 2006-02-21. Retrieved on 2006-09-06.
- ^ "John G. Smale: He rebuilt P&G - and city, too", The Cincinnati Post, 11 October 2005.
- Soap opera: the inside story of Procter & Gamble, by Alecia Swasy. Publisher: New York : Times Books, c1993. ISBN 0-8129-2060-0. LCC: HD9999
- Trademark® of the Beast Article on the logo from About.com
| Procter & Gamble Co. | |
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Corporate Directors: Norman Augustine | Bruce Byrnes | R. Kerry Clark | Scott D. Cook | Joseph Gorman | A.G. Lafley | Charles R. Lee | Lynn M. Martin | W. James McNerney, Jr. | Johnathan Rodgers | John F. Smith, Jr. | Ralph Snyderman | Robert Storey | Margaret Whitman | Ernesto Zedillo |
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Brands: Always | Ariel | Bounty | Braun | Charmin | CoverGirl | Crest | Downy | Dreft | Duracell | Fairy | Febreze | Folgers | Gillette | Head & Shoulders | Iams | Ivory | Max Factor | Olay | Old Spice | Oral-B | Pampers | Pantene | Pringles | Swiffer | Tampax | Tide | Torengos | Zest |
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Annual Revenue: $55.4 billion USD ( |
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Categories: Companies listed on the New York Stock Exchange | Articles with unsourced statements | Companies established in 1837 | Companies based in Ohio | Dow Jones Industrial Average | S&P 500 | Fortune 1000 | Manufacturing companies of the United States | Pharmaceutical companies of the United States | Procter & Gamble | Pulp and paper companies
