Friday, 18 March 2011

How Procter & Gamble Became The Maker Of EVERYTHING You Buy For Your House



We guarantee you've used at least two Procter & Gamble products today. Did you brush your teeth or wash your hands? Then yup, you probably qualify.
Even though they dominate your life now, P&G took a long time to become the wonder brand they are today. The path to success took a lot of creativity and innovation.
P&G invented branding in the 19th century; since then it has acquired products and companies like wildfire, from Cover Girl to Pepto Bismol.
Here's how the little soap and candle shop transformed itself into a global giant.


1837: Two Ohio brother-in-laws start a soap and candle company


William Procter and James Gamble, brothers-in-law from Cincinnati, became business partners on a suggestion from their wives’ father.

A candle and soap maker respectively, the men decided to combine their crafts to form the Procter & Gamble Company. By the late 1850s, they reached $1 million in sales and had about 80 employees.

1883: P&G launches its first big brand, Ivory Soap
Procter & Gamble branded its first major product — Ivory Soap.
After designing the era’s purest bar of soap and trademarking the word “ivory,” the company embarked on a mass marketing campaign to promote the product.
It took out an ad in The Century Magazine, the most popular monthly of its day, as well as in smaller, local papers. Almost one decade later, Ivory Soap got its very own slogan: “It floats"

1930: P&G goes international when it buys a British soapmaker
Procter and Gamble became an international corporation when it bought England's Thomas Hedley & Company, the makers of Fairy Soap. Like Ivory Soap, Fairy Soap also boasted its ability to float.
Today, P&G has workers in over 80 countries and distributes many of its products worldwide.

1946: P&G revolutionizes laundry with Tide detergent

After the war, Procter & Gamble grew tremendously thanks to a new product, Tide. “The washday miracle” transformed households by making laundry easier and faster.
By the late '40s, detergent replaced soap as the preferred way to clean clothes. Tide became the number one brand. Early Tide ads, which had a $21 million dollar budget, used bright colors and images of happy housewives to entice consumers. 

1955: P&G develops Crest toothpaste and it quickly becomes the #1 brand




After five years of research and development, P&G introduced Crest toothpaste.
The new fluoride-based formula claimed to help fight cavities better than any other brand. In 1960, the American Dental Association endorsed the brand and by the end of the next year, Crest replaced Colgate as the number one brand. This milestone solidified P&G's place in the toiletries industry.

1956: P&G hits a major sales milestone— $1 billion
P&G hit its $1 billion sales mark in 1956.
Today, that figure is about $80 billion. Not bad for a little company from Cincinnati!

1961: P&G starts making disposable diapers and parents everywhere rejoice.
Procter & Gamble spearheaded the mass production of disposable diapers by introducing Pampers to households everywhere.
P&G engineer Victor Mills came up with the idea after his grandson was born. Mills, like many other consumers, had grown tired of messy cloth diapers and spent years trying to figure out an easier way to get the job done.

1950s and '60s: P&G invades kitchens everywhere with food and beverage products
Technically, P&G had been helping dinners get made since the very beginning when it sold lard for cooking. And In 1911, it began selling Crisco, the first all-vegetable shortening—an instant hit!
The company really took over kitchens, though, in the mid-20th century with Jif peanut butter (1956) and Folgers coffee (1963). Pringles, one of P&G's only remaining food products, was introduced in 1968. 

1982: Got a cold or a stomach ache? PG can now take care of you.
PG added Pepto Bismol and Chloraspetic to its rapidly growing family when it acquired Norwich-Eaton Pharmaceuticals in 1982.
Then, in 1985, the company bought Richardson-Vicks, the makers of Vicks and Nyquil, for $1.2 billion (its largest purchase yet), as well as the brands Dramamine and Metamucil.
These purchases solidified P&G's place in drug stores everywhere.

1988: P&G enters the beauty business when it buys Cover Girl and a slew of similar brands
In 1989, Procter & Gamble entered the makeup market when it bought Noxell, the company that makes CoverGirl and Noxema, in a $1.34 billion deal.
Then, in 1991, it scoops Max Factor and Betrix from Revlon. Though P&G acquired Pantene hair products in the '85 Richardson-Vicks deal, it wasn't until the '90s that it became a billion-dollar brand.
A successful marketing campaign helped make the product a beauty essential, rather than a functional cleaning device.

Today: Procter & Gamble brands keep spreading

These days, Procter & Gamble owns 83 brands, 23 of which raked in over $1 billion last year.
It even earned a top spot on Forbes’ list of the world’s most admired companies, thanks to innovative products like the Swiffer and marketing ingenuity like the Old Spice guy.


































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