Procter & Gamble pioneered market research and understanding consumer needs. Founded in 1837, it grew from a small soap and candle company into a multinational consumer goods empire through strategic acquisitions and developing iconic brands like Ivory soap and Tide detergent. P&G was also an early leader in brand management, developing individual brands and focusing on consistent quality, price, and meeting consumer demand. Through market research, brand differentiation, and responsible business practices, P&G has built strong brand loyalty and weathered economic downturns to remain a dominant consumer products company.

1. US Business History, June 29, 2010
Procter & Gamble
First to understand the power of marketing.
1

2. By Adrian
History
From candle and soap to a multinational empire
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3. William Procter
✤
3

4. James Gamble
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5. Procter & Gamble
was candle and soap
Fact 1
1837
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6. Ivory Soap
✤ first introduced in 1879
✤ It Floats! since 1891
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7. Crest
✤ introduced in 1955
✤ contains fluoride (Fluoristan)
✤ sold as Blend-a-med in Europe
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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. Procter & Gamble
has now over 300 brands
22 of which are $1bln in annual net sales
or more
Fact 2
2010
9

10. By Yuki
Brand Management
10

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. 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. 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. By Kathryn
Corporate Social Responsibility
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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. 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. 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. Example:
ColdwaterTide
Major energy
footprint audit
Measured carbon
output over all
stages of products
Cost of energy use
not bourn by P&G
directly
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19. By Marco
Current Financial Crisis
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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
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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
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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.
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23. P&G is in fine financial state and
maintained strong recognition
from the business world.
After Crisis
2010
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24. By Antoine
Market Research
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