Business History of P&G

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HISTORY OF P&G
Procter & Gamble is Founded by NYSE in 1837. Its branches are in Cincinnati, Ohio.Their total revenue for Consumer goods is US$83.503 billion (2008). Net income US$12.075 billion (2008) Employees 138,000 P&G is the 8th largest corporation in the world by market capitalization and 14th largest US company by profit. It is 10th in Fortune's Most Admired Companies list (as of 2007).It is credited with many business innovations including brand management, the soap opera, and the Connect + Develop initiative. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion it spent is almost twice as much as General Motors. The next company on the Nielsen list. P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival. William Procter, a candlemaker, and James Gamble, a soapmaker, immigrants from England and Ireland respectively who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law called a meeting in which he convinced his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born. Procter & Gamble 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. In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats in water. The company called the soap Ivory. William Arnett Procter, William Procter's grandson, began a profit-sharing program for the company's workforce in 1887.By giving the workers a stake in the company, he assumed correctly that they would be less likely to go on strike. Procter & Gamble 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. 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“. 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. 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 Crestquot; 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. Procter & Gamble acquired a number of other companies that diversified its product line and increased...
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