Company Profile: History of P&G
Company Profile: History of P&G
Company Profile: History of P&G
HISTORY OF P&G
William Procter, a candlemaker, and James Gamble, a soapmaker, formed the company
known as Procter & Gamble in 1837. The two men, immigrants from England and
Ireland respectively, who had settled earlier in Cincinnati might never have met had they
not married sisters, Olivia and Elizabeth Norris.
Since both their industries used similar resources, the Panic of 1837 caused intense
competition between the two and as a result it led to discord with the family. Alexander
Norris, their father-in law decided to call a meeting where he convinced his new sons-in-
law to become business partners. On October 31, 1837, as a result of the suggestion, a
new enterprise was born: Procter & Gamble.
The company prospered during the nineteenth century. 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. Once the war was over and the men returned home, they continued to purchase
the company'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. In the decades that followed, Procter
& Gamble continued to grow and change. The company became known for its
progressive work environment in the late nineteenth century. William Cooper Procter,
William Procter's grandson, established a profit-sharing program for the company's
workforce in 1887. He hoped that by giving the workers a stake in the company, they
would be less inclined to go on strike.
Over time, the company began to focus most of its attention on soap, producing more
than thirty different types by the 1890s. As electricity became more and more common,
there was less need for the candles that Procter & Gamble had made since its inception.
Ultimately, the company chose to stop manufacturing candles in 1920.
In the early twentieth century, Procter & Gamble continued to grow. 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. In the early 1900s,
Procter & Gamble also became known for its research laboratories, where scientists
worked to create new products. Company leadership also pioneered in the area of market
research, investigating consumer needs and product appeal.
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."
Throughout the twentieth century, Procter & Gamble continued to prosper. 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. In addition, 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
"Crest". 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.
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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.
Over the second half of the twentieth century, Procter & Gamble acquired a number of
other companies that diversified its product line and increased profits significantly. These
acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-
Vicks, Noxell, Shulton's Old Spice, Max Factor, and the Iams Company, among others.
In 1994, the company made headlines for big losses resulting from leveraged positions in
interest rate derivatives, and subsequently sued Bankers Trust for fraud; this placed their
management in the unusual position of testifying in court that they had entered into
transactions they were not capable of understanding.
In 1996, Procter & Gamble again made headlines when the Food and Drug
Administration approved a new product developed by the company, Olestra. Also known
by its brand name Olean, Olestra is a substitute for fat in cooking potato chips and other
snacks. Procter & Gamble has expanded dramatically throughout its history, but its
headquarters still remains in Cincinnati. {Source, Ohio History Central.}
In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer
goods company and placing the Anglo-Dutch Unilever into second place. This added
brands such as Gillette razors, Duracell, Braun, and Oral-B to their stable. The
acquisition was approved by the European Union and the Federal Trade Commission,
with conditions to a spinoff of certain overlapping brands. P&G has agreed to sell its
SpinBrush battery-operated electric toothbrush business to Church & Dwight. It also
plans to divest Gillette's oral-care product line, Rembrandt. The deodorant brands Right
Guard, Soft & Dri, and Dry Idea were sold to Dial Corporation. The companies officially
merged October 1, 2005.
P&G's dominance in many categories of consumer products makes its brand management
decisions worthy of study. For example, P&G's corporate strategists must account for the
likelihood of one of their products cannibalizing the sales of another
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P&G Home Products Limited is one of India's fastest growing Fast Moving Consumer
Goods Companies that has in its portfolio P&G's global brands such as Ariel and Tide in
the Fabric Care segment, and in the Hair Care segment: Head & Shoulders - world's
largest selling anti-dandruff shampoo; Pantene - world's No. 1 beauty shampoo; and
Rejoice Asia's No. 1 shampoo.
P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company,
USA, that in India, has carved a reputation for delivering superior quality, value-added
products to meet the needs of consumers.
P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving
Consumer Goods Companies that has in its portfolio P&G's billion dollar brands such as
Vicks & Whisper. With a turnover of Rs. 500+ cores, the Company has carved a
reputation for delivering high quality, value-added products to meet the needs of
consumers.
P&G Hygiene and Health Care Limited takes pride in being voted India's Best Employer
2003 in a survey of 200 companies conducted by International HR Consultancy Hewitt
Associates in association with Business Today magazine. Earlier, the Company was
voted India's 2nd Best Employer in previous editions of the survey in 2001 and 2002.
Notably, there are over 200 Indian employees with P&G Subsidiaries abroad.
P&G and Gillette merge into one company and add five more Billion Dollar Brands to
our product portfolio including Gillette and Braun's shaving and grooming products, the
Oral-B dental care line and Duracell batteries.
BACKGROUND NOTE:
The US based P&G is the no.1 maker and marketer of household products in the US and
one of the largest FMCG companies in the World. It was established in 1837 when
William Procter, a candle maker and his brother-in-law, James gamble a soap maker,
merged their small businesses. They setup a shop in Cincinnati and nicknamed it
‘porkoplis’ because of its dependence on swine slaughterhouses. By 1859, P&G was
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generating sales of Rs. 10mn. The company introduced Ivory a floating soap in 1879 and
Crisco, the first all vegetable shortening in 1911.
Between 1940’s and 1960’s P&G embarked on a series of acquisition. The company
acquired Spic & Span (1945), Duncan Hines (1956), Clorox (1957, sold in 1968) and
Folgers coffee (1963). In 1985, P&G announced several major organizational changes
relating to category management, purchasing, manufacturing, engineering and
distribution.
After witnessing a period of significant organic and inorganic growth worldwide, P&G
began to face several problems during the 1990’s. Its new products development
activities seemed to have slowed down. Reportedly, its risk-averse culture seems to be
stifling innovation and obstructing commercialization of new ideas quickly. During the
late 1990’s P&G revenues were stagnant and its income was decreasing.
By mid 2003 the company was well on its way towards achieving these targets. It
streamlined its businesses by broadly dividing them in to 5business segments- Fabric and
homecare, Baby, Feminine, and family care, beauty care, health care and Food &
beverages. These segments comprised of several product division that collectively sold
more than 300 brands to nearly 5bn consumers in 160 countries across the globe. Some
major P&G brands were Tide, Ariel, Pampers, Whisper, Pantene, Cheer, gain, head &
shoulders, Clairol herbal essences, Ivory personal care, Crest, Vicks Vaporub, Actonel
and Max Factor cosmetics.
For the financial years ending June 2003, P&G reported revenues of Rs. 86.76bn and net
earnings of Rs. 10.36bn. In 2003 the company was ranked 31st among the fortune 500
companies. P&G had operation in 80 countries globally. With an employee strength of
around 110,000 worldwide.
COMPANY PURPOSE:
We will provide branded products and services of superior quality and value that improve
the lives of the world's consumers. As a result, consumers will reward us with leadership
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sales, profit, and value creation, allowing our people, our shareholders, and the
communities in which we live and work to prosper.
COMPANY VALUES:
P&G is its people and the values by which we live. We attract and recruit the finest
people in the world. We build our organization from within, promoting and rewarding
people without regard to any difference unrelated to performance. We act on the
conviction that the men and women of Procter & Gamble will always be our most
important asset.
INTEGRITY
We uphold the values and principles of P&G in every action and decision.
TRUST
We respect our P&G colleagues, customers, and consumers, and treat them, as we
want to be treated.
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We have confidence in each other's capabilities and intentions.
COMPANY PRINCIPLES
We believe that all individuals can and want to contribute to their fullest potential.
We value differences.
We believe that doing what is right for the business with integrity will lead to
mutual success for both the Company and the individual. Our quest for mutual
success ties us together.
We only do work and only ask for work that adds value to the business.
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We encourage and expect outstanding technical mastery and exceptional
excellence.
We benchmark our performance rigorously versus the very best internally and
externally.
We challenge convention and reinvent the way we do business to better win in the
marketplace.
Material is procured by C.G. marketing from P&G Mumbai. Then it is distributed to the
wholesaler, retailer, & distributor.
Procedure of distribution
3. Then he take the order from shop and also suggest to add the new goods of P&G
5. The material is outward from C.G. Marketing office to various shop from were
the order is taken.
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PRODUCT RANGE
Fabric Care
Procter & Gamble has two of its world-leading detergents – Tide and Ariel, in India to
cater to the main concerns of the Indian households, namely, outstanding whiteness and
stain-removal.
Ariel Front-O-Mat
Ariel 2 Fragrances
Tide Detergent
Tide Bar
ARIEL 2 FRAGRANCES:-
In 1991, Procter & Gamble India launches Ariel detergent - another of P&G's global,
breakthrough technology products. Also, in the same year the Mandideep (Bhopal)
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Factory starts its operations. Ariel is the world’s leading detergent and epitomizes ‘stain
removal’.
Core Equity
SKU Lineup
ARIEL FRONT-O-MAT:-
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Ariel Front-o-Mat is introduced in India exclusively for front load washing machines.
The unique tumble wash technology of front-loading machines needs a special chemistry,
which Ariel Front-o-Mat provides. Using Ariel Front-o-Mat completely eliminates the
need to bucket soak and a scrub.
Females seeking superior end result from their cleaning in front-loading washing
machines
Core Equity
Low suds. Ideal for front-loading machines, which need a special detergent
chemistry due to their tumble wash technology.
Using Ariel Front-O-Mat completely eliminates the need to bucket soak and
scrub.
SKU Lineup
SKU 1kg
TIDE
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Launched in India in mid-2000,
Tide provides
‘Outstanding Whiteness’ on white clothes & excellent cleaning on colored clothes as
well. This is possible, due to its ‘anti-redisposition’ global technology, which Tide
employs.
Core Equity
SKU Lineup
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Hair care
P&G’s Beauty Business is over US$ 10 Billion in Global Sales, making it one of the
world’s largest beauty companies. The P&G beauty business sells more than 50 different
beauty brands including Pantene, Olay, SK-II, Max Factor, Cover Girl, Joy, Hugo Boss,
Herbal Essences and Clairol Nice ’n’ Easy. In India, P&G’s beauty care business
comprises of Pantene, the world’s largest selling shampoo, Head & Shoulders, the
world’s No. 1 Anti-dandruff shampoo and Rejoice – Asia’sNo.1Shampoo.
Procter & Gamble is committed to making every day in the lives of its consumers better
through the superior quality of its products and services.
Pantene Pro V
Head & Shoulders
Rejoice
PANTENE PRO V
Core Equity
Variants
Smooth & Silky for Straighter hair. High conditioner level for healthy, straight
looking hair with a vibrant shine.
Volume & Fullness for Thicker hair. High conditioner level for a healthier,
fuller and bouncier feel to the hair.
Lively Clean for Livelier hair. Low conditioner level that converts weighted
down and oily hair to clean, fresh and healthy hair that remain free-flowing
throughout the day.
Long Black for the Long & Black hair look. High conditioner level. Darkens
each strand of hair uniformly from root to tip and enables women to keep their
hair long.
Hair Fall Control for reducing hair fall by 50% in just 2 months. High
conditioner level.
SKU Lineup
Lively Clean 3 - 99 -
Long Black 3 54 99 -
Anti Dandruff 3 54 99 -
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Core Target Audience
Core Equity
Removes flakes itchiness, irritation, dry Scalp & Oiliness- the five signs of
Dandruff.
Variants:
Smooth & Silky for Straighter hair: High conditioner level. Relieves hair
dryness to make the hair silky smooth.
Silky Black: High conditioner level. Has black sesame and walnut extracts
that nourish hair and scalp to make black hair look silky.
Clean & Balanced: Medium conditioner level. Has a cleansing system that
gives your hair a wonderfully clean look and feel.
SKU Line-up
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Variant 7.5ml 100ml 200ml 400ml
Health Care
VICKS
Vicks is India’s No.1 Cough & Cold Brand. It created the cold & cough Over-the-
Counter (OTC) category in India way back in 1952 and has led the category till date.
Today it has completed more than 50 years in India. Its current portfolio in India
comprises Vicks Action500+, Vicks VapoRub, Vicks Cough Drops, Vicks Formula 44
Cough Syrup and Vicks Inhaler. It was rated as ‘India’s Most Trusted Brand’ by the
‘Advertising & Marketing’ Magazine and continues to be on top of the charts of Brand-
Equity surveys till date.
The Vicks business in India is the biggest in the ASEAN-Australasia-India (AAI) region.
Over the years, Vicks has launched several heart-tugging advertising campaigns, some of
which were – the ‘Happy Birthday Mummy’ and ‘Touch Therapy’ campaigns for Vicks
VapoRub, the ‘Khich Khich Dooor Karo’ ad for Vicks Cough Drops, the ‘Haan Bhai
Haan’ ad for Vicks Action 500.
Vicks VapoRub
Vicks Inhaler
Vicks Formula 44
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Vicks Cough Drops
Vicks Action 500+
VICKS VAPORUB:-
Core Equity:
Finds a place in every Indian home, due to its proven performance against
cold over decades.
Ayurvedic and safe for regular use. Contains Kapoor (Camphor), Pudinah
ke Phool (Menthol), Nilgiri Tel (Eucalyptus Oil).
Applied externally, so it is safer than pills and also doesn’t interact with
other medication.
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Gillette M3Power
The Gillette M3Power razor is the first battery-powered shaving system from Gillette
Gillette's best manual razor for a close shave, with less irritation - Even when shaving
against the grain
The Gillette M3Power razor is the first battery-powered shaving system from Gillette.
Combines the refreshment of a lotion with the masculine invigorating fragrance of Old
Spice
For a smoother, more comfortable shave, apply to the face prior to an electric shave.
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Gillette Fusion Pre and Post Shave
A range of shaving gels and foam plus a post-shave Hydra Soothe Balm and Hydra Cool
Gel to calm your just-shaved skin
Strengths Weaknesses
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Quality & Innovation Expensive Brand Maintenance
STRENGTH
Gillette Clinical Strength is specially formulated to provide effective protection for the
heaviest of sweaters and men who worry about excessive underarm perspiration. The
Triple-Protection Technology provides three unique layers of protection, including
clinically proven prescription-strength wetness protection, odor-fighting microcapsules to
absorb odor and release a fresh, clean scent throughout the day and skin-conditioning
ingredients to minimize irritation. Gillette Clinical Strength contains the highest level of
active ingredient allowed without a prescription. It is less acidic than aluminum chloride
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(used in many prescription antiperspirants) and thus, helps significantly reduce the
potential for skin irritation. In fact, in clinical studies, Gillette Clinical Strength was
significantly less irritating than a prescription product containing aluminum chloride.
smooth shave
5 blades taking off facial hair means less skin that can get in between the blades
-Brand portfolio includes both global Unilever brands and local brands of specific
relevance to India.
-Distribution structure with wide reach, high quality coverage and ability to leverage
scale.
-Access to Unilever global technology capability and sharing of best practices from other
Unilever companies.
WEAKNESSES
Complex supply chain configuration, very large numbers of SKU's with dispersed
manufacturing locations.Price positioning in some categories allows for low price
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competition. High Social costs (housing, foodgrains & firewood, health and other welfare
measures) in the plantation business.
OPPURTUNITIES :
THREATS
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DATA ANALYSIS
Yes 74
No 26
No
26%
Yes
74%
Gillette India has a very old presence in world wide while judging this statement we did
brief survey of 100 People and according to our out put the data 74% people are actually
aware about the Gillette as a brand name and the Gillette . While still 26% people still
not aware about the Gillette
Gillette need to focus to target 26% those people who doesn’t know about the Gillette .
Customer satisfaction and loyalty would come if the customer aware about the Gillette ’s
so effectively only 74% customer who knew very well what Gillette doing in the Indian
market and what available is for the customer.
If Yes
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2 How you came to know about this company?
Newspaper 40
By Friend 17
Means of Advertisement 62
Self Research 42
Hoarding 52
Retailers 10
Retailers Newspaper
4% 18%
Hoarding
23% By Friend
8%
Means of
Self Research Advertisement
19% 28%
How people got to know about the Gillette , there is various ways. Once customer know
about the company brand so for Gillette in my project effective people for the survey is
223 because they know about the Gillette ’s brand name. people got to know about the
Gillette from various parameter, like 23% people got to know about the Gillette through
Hoarding while 28% people got to know from the advertisement that is doing by the
company while 19 % people knew Gillette ’s brand through the self research and news
paper is only effective by the 18%. Recommendation to increase awareness among the
customer for Gillette can be focused more to hoarding advertisement rather than the
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news paper also self research contributed maximum so Gillette brand awareness so
Gillette increase to advertise on internet, book etc.
Excellent 34
Very Good 76
Good 85
Poor 28
Poor Excellent
13% 15%
Good
38%
Very Good
34%
Out of 100 valuable customer for our survey it seems that 15% rated Gillette ’s as
excellent in quality while 34% rated as very good experience that they have while using
Gillette ’s and 38% people are rated as good to using Gillette ’s .
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Recommendation about the Gillette would be 13% people rated Gillette as poor one so
company need to focus on those area why people rate as a poor why they perceive that
Gillette ’s quality is poor.
Excellent 50
Very Good 67
Good 57
Poor 49
Poor Excellent
22% 22%
Recent survey conducted by the Business standard and it shows customer satisfaction
also depends upon what is you sales after service strategy, according to our survey about
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the Gillette 22% people rated Gillette as a excellent service provider while 30% rated it
has very good sales after service support and 26% rated good for the service to Gillette ’s.
The concern area for Gillette is 22% people who rated Gillette service as a poor one and
not which is one of the area where customer are not satisfied so for the Gillette it need to
be justify and fill the gap as soon as possible.
According to our survey result overall customer satisfaction level from the various
service like warranty, customer care, etiquette of the employee people are saying it is
good company with providing day by day better service.
Some people says Gillette as a organization not having flexible service to the customer
like 24*7 wise also some time they are arrogant to the customer.
Few Suggestions is
8. Did you find the s up to the standard or Marks as specified before purchase?
Standard
Yes 201
No 22
Product Standard
No
10%
Yes
90%
Before purchase customer are very cautious about the quality and it’s standard in the
case of Gillette about 90% people are happy with the kind of quality that they would
received before purchasing the Gillette . While only 10% people are not satisfied the
quality of Gillette .
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9. Are you using other company are (Same type of s) simultaneously?
Comparison with
Yes 218
No 5
No
2%
Yes
98%
Using Gillette with the other company which gives insight to know more about the
competition level for the Gillette now we got very surprisingly result 98% people says
yes while using Gillette they also using some other company . So kind of competition we
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can feel that Gillette has. Only 2% people using Gillette. Which quite less than the other
favorable out put
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10 Would you recommend company’s s to others?
Recommendation to other
Yes 219
No 4
Recommendation to other
No
2%
Yes
98%
Recommendation to other means customer buy the due to influenced by the others also
which shows very beneficial for the company. 98% people who is using Gillette is ready
to recommend others to use Gillette which is very positive sign for the customer. Now
move to other strata 2% only those people who doesn’t want to recommend Gillette to
others
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CONCLUSION
Shani and Chalasani define customer satisfaction marketing as “an integrated effort to
identify, maintain, and build up a network with individuals consumers and to
continuously strengthen the network for mutual benefit of both sides, through interactive,
individualized and value-added contacts over a period of time”.
The core theme of all customer satisfaction and relationship marketing perspectives is its
focus on co-operative and collaborative relationships between the firm and its customers,
and/or other marketing actors.
customer satisfaction is based on the premise that, by having a better understanding of the
customers’ needs and desires we can keep them longer and sell more to them.
By reducing customer defection (by as little as 5%) will result in increase in profits
by 25% to 85% depending from industry to industry.
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RECOMMENDATIONS
Some of the Recommendation for Gillette that I analyze after making my project report is
following below.
Out of our 100 sample size 26% people still not aware about the Gillette product
so Gillette need to focus on more product awareness because it is the first and
foremost thing for any organization
Recommendation about the Gillette would be 13% people rated Gillette product
as poor company need to focus on those area why people rate as a poor why they
perceive that Gillette product’s quality is poor.
The concern area for Gillette is 22% people who rated Gillette service as a poor
which is one of the area where customer are not satisfied so for the Gillette it need
to be justify and fill the gap as soon as possible.
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FUTURE PROSPECTS
From the data interpretation and conclusion there are some suggestion, which can help
company to build up strong position in market and to increase the sale of products.
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BIBLIOGRAPHY
2. Philip Kotler and kenin Lane Keller, “ Marketing Management” Twelfth edition
Prentice Hall Of India PVT. LTD New Delhi.-110001.
3. http://www.p&g.com
4. http://wikipedia.org/wiki/pune
5. http://www.google.com
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QUESTIONNAIRE
If Yes
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
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__________________________________________________________________
__________________________________________________________________
8. Did you find the products of p&g up to the standard or Marks as specified before
purchase?
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