Procter&Gamble history

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My presentation on Procter&Gamble

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Procter&Gamble history

  1. 1. US Business History, June 29, 2010 Procter & Gamble First to understand the power of marketing. 1
  2. 2. By Adrian History From candle and soap to a multinational empire 2
  3. 3. William Procter ✤ 3
  4. 4. James Gamble 4
  5. 5. Procter & Gamble was candle and soap Fact 1 1837 5
  6. 6. Ivory Soap ✤ first introduced in 1879 ✤ It Floats! since 1891 6
  7. 7. Crest ✤ introduced in 1955 ✤ contains fluoride (Fluoristan) ✤ sold as Blend-a-med in Europe 7
  8. 8. Growing big ✤ starting from a small portfolio of well- recognized brands (e.g. Ivory Soap, Tide, and Crest) ✤ pioneer in market research and customer relations ✤ soap operas as a means of reaching target customers ✤ major acquisitions were Gillette (2005), Wella (2003), Clairol (2001), and Richardson-Vicks (e.g. Pantene, VIcks) in 1985. 8
  9. 9. Procter & Gamble has now over 300 brands 22 of which are $1bln in annual net sales or more Fact 2 2010 9
  10. 10. By Yuki Brand Management 10
  11. 11. McElroy and his memo ✤ began on May 13, 1931 with a memo by Mc Elroy - ✤ Neil H. McElroy invented Brand Management ✤ P&G’s CEO from 1948 to 1957, then US Secretary of Defense 1957-59 ✤ 11
  12. 12. In-house Competition and Product Differentiation One team for one brand Developed one’s merit Each has own originality in price & quality Focus on target 12
  13. 13. Influence of Brand Management Brands drive out commodities Not short-term sales, but long-term loyalty To maintain loyalty…. - Consistency in value - Keep balance b/w price & quality - Must be improved 13
  14. 14. By Kathryn Corporate Social Responsibility 14
  15. 15. Leader in employee benefits Historically considered a leader in employee benefits Labor reform - 8 hour workdays (1918) - Guaranteed 48 weeks a year (1920s) - Required major distribution revisions The Great Depression - Minimal layoffs - President's voluntary salary cut Historic Reform - Saturday half-day (1885) - Profit-sharing bonus (1887) - Became merit based (1888) - Employee stock-purchase progra (1892) - Disability and pension plan (1915) 15
  16. 16. Great Power = Great Responsibility? Supplier sustainability scorecard (2010) - Similar to Wal-Mart’s (2009) - Costly compliance for P&G - Assesses yearly improvements - Goal of influencing entire supply chain Dawn Campaign - Large donations to Marine Mammal Center - Ongoing promotion ✤ 16
  17. 17. Environmental sustainability Water & energy conservation Solar energy in major plant Reductions per unit of production since ‘02: - Water consumption: 52% - Energy use: 48% - CO2 emissions: 52% - Waste disposal: 53% Goal of $50 B ‘green’ sales from 2007-2012 ‘Future Friendly’ Program ✤ 17
  18. 18. Example: ColdwaterTide Major energy footprint audit Measured carbon output over all stages of products Cost of energy use not bourn by P&G directly 18
  19. 19. By Marco Current Financial Crisis 19
  20. 20. The Recent Crisis. Origins and Effects ✤ In 2009: Prices of crude oil reached $149 per barrel ✤ Credit Markets ceased to function normally ✤ 30 mln people lost their jobs worldwide ✤ Suppliers, retailers and distributors were badly affected. Some went out of business 20
  21. 21. Impact and Strategies Impact: - Consumer spending sharply declined and focused on essentials or more durable goods. - Limited effects because of Consumer Market Research . - Overall, the company was not much affected by the slump in general consumption because of its global reach Strategies: - Target low-income consumers - Expand and consolidate corporate presence in Third World markets Cash and Cost management - Innovation and marketing 21
  22. 22. Results P&G experienced a major setback in the early 2000s. Managerial restructuring and better finance controls shield the company from worse scenarios. Efficient Marketing and Consumer Mkt. Research made sales flexible and adaptive to consumer demand, even when it slumped. 22
  23. 23. P&G is in fine financial state and maintained strong recognition from the business world. After Crisis 2010 23
  24. 24. By Antoine Market Research 24

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