Proctor and Gamble

Proctor and Gamble

Company History
William Proctor and James Gamble created Proctor and Gamble in 1873. William Proctor introduce him self to Cincinnati as a candlemaker, while his counterpart apprenticed himself to a soapmaker. They met by chance when they married sisters and fittingly they initiated a partnership of candlemaking and soapmakeing. A partnership then originated on October 13, 1837. In 1850 Moons and Stars became the unofficial trademark. In 1862, Proctor and Gamble profited by making candles for the Union soldiers, keeping the company afloat through good publicity. James Norris Gamble, the son of James Gamble, created Ivory in 1879. By 1980, Proctor and Gamble was a successful partnership. Producing over thirty types of soap. Excellent advertisement caused the need for more plants to be open, such as Ivorydale. With the creation of new plants, so the creation of new and improved ideas. Products such as: ‘Ivory-Flakes’-a soap for washing cloths and dishes, ‘Chipso’- the first soap for washing machines, ‘Dreft’- the first synthetic detergent for households, and ‘Crisco’- the all-vegetable shorting that changed cooking forever. The company had grown from $7,192.94 the original investment by Proctor and Gamble, to over $350 million in 1945. 53 years after the formation of the successful partnership, P&G was incorporated to gain financial capital for an expansion. The expansion carried with it the creation of Tide. Tide overtook the market and by 1959 was the leading detergent in the country. P&G did not stop with Ivory and Tide, the company produced the first toothpaste with a ‘dentist approval’, Crest. Crest skyrocket soon after the company merged with Duncan Hines cake mixes and the inauguration of consumer paper products. 1960, the same year of the Crest take-off. P&G brought into existence Downy. Just a year after that Pampers entered the test market in Peoria, Illinois. Coffee was the nest market to enter, with an acquisition of Folgers in 1963. Almost 10 years went by before chemist attached to the company learned how to make a nonwoven sheet to soften clothes. Bounce followed its predecessor’s footsteps and became the second largest seller, only second to Downy. The first pharmaceutical product was created in 1978, entitled Didronel. One hundred and forty-three years after birth P&G had grown into a massive company with sales over ten billion dollars. A merger with Norwich Eaton Pharmaceuticals, 1982, brought about a new phase in P&G’s prescription and over-the-counter health care products. Innovative thinking created the superior feminine protection product, Always/Whisper, which was the leader in selling by 1985. Another merger, to Richardson-Vicks, once again provided the opportunity to substantially increase its over-the-counter and personal health care marketing 1985. Entering cosmetics in 1989, the company overtook the market with Cover Girl, Noxzema, and Clarion. This step followed by the 1991 acquisition of Max Factor and Betrix. “Over the years, P&G innovations have helped Tide remain a category leader and P&G’s single largest brand. Today, Procter & Gamble is a truly global corporation. Since 1980, the company has quadrupled the number of consumers it can serve with its brands — about five billion people around the world. P&G now has operations in more than 70 countries and its products are sold in over 140 countries, making P&G one of the biggest and most successful consumer goods companies in the world (P&G History).

Current Structure and Organization/Operations.
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Proctor and Gamble Company was created as a partnership in 1837. In 1890, it became a corporation. Currently the President of Proctor and Gamble is Mr. Durk Jager, who also serves as Chairman of the Board and Chief Executive (Frequently Asked Questions). The structure involves different groups, almost like smaller companies (i.e. chemical and drug ,house cleaning, ect.)

Recent Company Mergers
A company such as P&G does not just stop growing, quite the contrary, in fact recent mergers include but are not limited to: Iams, a known maker of animal products. And, Recovery Engineering, Inc., REI designs, manufactures and markets drinking water purification systems under the PuR name (P&G News Release).


Major Activities for the past year
May 17, 1999- Proctor and Gamble Announce Dryel and Swiffer Global Expansion.
June 9, 1999- The Procter & Gamble Company announces details of the next phase of Organization 2005, P&G’s far-reaching, strategic initiative to accelerate the company’s growth.
September 13, 1999 - The Procter & Gamble Company (NYSE: PG) and Institutional Venture Partners (IVP) announces the formation of, a stand-alone Internet company that will create a new interactive business model that provides an innovative, personalized approach to beauty.
November 3, 1999 - Procter & Gamble announces the planned national introduction of Mr. Clean Antibacterial Wipe-Ups, a new household product that cleans and removes 99.9% of bacteria in one easy step. The U.S. launch comes on the heels of highly successful European introductions of the product over the past year.
January 13, 2000 - Procter & Gamble will expand its tissue and towel production capacity by adding two new paper machines and associated converting equipment to its Mehoopany, Pennsylvania plant.
March 27, 2000 - CINCINNATI - Procter & Gamble announces it is exploring a possible divestiture of its Oxydol laundry detergent brand.
April 5, 2000 - CINCINNATI, - Procter & Gamble announced today plans to introduce a number of initiatives across Fabric & Home Care in North America. These initiatives include major, step-change technology improvements on brands that are already household names and innovations that will expand product categories that the company created (P&G News Releases).

Affects of Activities on Company

Recent affects of the above mentioned activities include an April 22, 1999, press release announcing a 10% increase in third quarter earnings per share, followed by a July 29, 1999, statement of fiscal year net earnings of $3.67 billion core earnings and 11% increase per share. This growth is attributed to new initiatives mentioned in an October 28, 2999, consumer new report. The growth did not stop there, in fact another acceleration tool place early this year,

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causing a revised third quarter expectation proposed in an April 25, 2000 earnings release (Investing Information).

The Product

What does the company make?
Proctor and Gamble carry such things as: Facial cleansers and moisturizers, hand- and- body lotions, personal cleansing, color cosmetics, skin care cosmetics, deodorants, shampoos, hair conditioners, hair sprays, snacks, coffee, juices, oil and shortening, peanut butter, toothpaste, toothbrushes, mouthwash, allergy remedy, stomach remedy, cold remedies, decongestant, sinus remedies, cough drops, pharmaceuticals, laundry detergents and bleach, household cleaners and dishwashing detergents, diapers, facial tissue, toilet tissue, paper towels, baby wipes, and female protection.

Percentage of total sales for each product made.
No available information.

Percentage of market share.
No available information.

Who is the competition?
Proctor and Gambles main sources of competition come from variety of other companies. The vast operations produces a wide rang of products, therefore P&G are challenged at different levels. A good example of competitors could be found in the coffee market. Walking down a store aisle the consumer is confronted by Folgers, Maxwell House, and numerous clone brands. Maxwell House is produced by Kraft.

The Analysis

Company and the U.S. economy.
Proctor and Gamble have been in existence for over a century. The company makes billions of dollars per year, which is recycled into the economic flow chart. They employ Millions of workers. Not only in their factories but in an economic sense P&G also supports store owners and even truck drivers. Thus is the reason for being a member of the Dow Jones, a ‘trend setter’, one of the 30 business picked to represent the U.S. economy and social wants/needs.

How has Proctor and Gamble affected my standard of living?
Quite simply a company this tremendous can not help but affect almost every American. Going through my house alone I gathered 21 items with the Proctor and Gamble log, 21 items from one corporation. I am sure the number varies, but assuming my family qualifies as a ‘normal’ family, then I must assume Proctor and Gamble has a large affect on my living conditions. P&G indirectly affects me through the economy. Once again referencing the economic flow-chart: from laborer to consumer, from consumer to corporation, and from corporation back to laborer.