Beginnings of Procter & Gamble

Beginnings of Procter & Gamble

1837 During a difficult period, and following the advice of their father-in-law, two young men (married to sisters Olivia and Elizabeth Norris) merged their two businesses. James Gamble had a soap factory and William Procter had just started a candle factory. And so the first Procter & Gamble enterprise came into being in Cincinnati, Ohio.
 
1859 Sales reached $1 million; 80 employees.
 
1860s During the Civil War, P&G won contracts with the army for the supply of soap and candles. A period of great activity which confirmed their market position and built their reputation when soldiers returned home with P&G products.
 
1878 Floating soap was discovered by chance: A workman in charge of production of one of the 24 types of soap let the mixture boil too long. Full of air bubbles, the soap floated. It was named "Ivory" and became the company's brand name. Inexpensive and of high quality, it was launched amidst an extensive promotional campaign in the press and on posters, which became a landmark in advertising history.
 
1887 To counteract the rise of trade unions, the company established one of the first employee profit-sharing schemes in the world. Today, the 100,000 employees in the group hold 25% of the capital.
 
1890 Creation of one of the earliest private research and development facilities - A successful multi-million dollar company.
 
1915 First P&G factory established outside the USA, in Canada.
 
1919-1920 P&G sells directly to retailers and hires 450 sales representatives.
 
1924 Awareness of changing washing habits and the growing demand for laundry products prompts P&G to set up a market research department. From then onwards, the dialogue between P&G and consumers was firmly established. The concept that good customer service requires understanding the market, takes hold.
 
1926 In response to the increasing popularity of perfumed beauty soaps, P&G launches the Camay brand.
 
1930s P&G researchers study the discoveries made by German chemists during the World War I in a bid to replace soap with a synthetic product.
 
1931 The P&G marketing organization organizes itself around the brands.
 
1933 Launch of the Dreft brand, the first synthetic detergent, specifically designed for delicate fabrics. That year, the P&G launches the "soap opera", a serial daytime TV entertainment program, interspersed with brand advertising.
 
1934 P&G launches Drene shampoo.
 
1945 The company's net worth is $350 million.
 
1946 P&G launches Tide, the first all-purpose laundry detergent. It would become a phenomenal success.
 
1954 P&G starts European operations.
 
1955 P&G introduces the Crest brand, the first fluoride-containing toothpaste
 
1960 P&G launch the Downy brand, the first fabric conditioner.
 
1964 The American Dental Association endorses Crest toothpaste.
 
1972 P&G launches the Bounce brand, the first softener sheet for dryers.
 
1980 P&G operations span 23 countries worldwide, with a turnover of $11 billion s - 35 times that of 1945.
 
After 1980 Global development continues, frequently through acquisitions.
 
1984 Launch of "Tide Liquid."
 
1984 P&G develops a "2-in-1" shampoo/conditioner brand: Pert Plus/Rejoice would become a market leader.
 
1988 P&G announces a joint venture agreement in China.
 
1995 P&G receives the National Medal of Technology - the highest award in the USA for achievement in technology - for creating, developing and marketing products that improve quality of life for billions of people worldwide. P&G is quoted among the "Best-of-the-Best" in customer service, along with L. L. Bean, American Express, The Limited and Mariott. The company is also recognized as a leader in the areas of marketing, sales management and technology management¹.
 
the Future P&G continues to focus on its core brands and technology. The company has also made a firm commitment to sustainability in the broadest sense - social, economical and environmental. As quoted² from Deborah Anderson, P&G's vice president of Environmental Quality, "Sustainability . . . will be the 'price of entry' that society will demand for business success in the 21st century. I believe this is an essential message for all forward thinking businesses."
 
¹ Camp, R. C. (1995). Business Process Benchmarking: Finding and Implementing Best Practices. Published by the American Society for Quality, Quality Press, Milwaukee, USA.
² Elkington, J. (1998). Cannibals with Forks: The Triple Bottom Line of 21st Century Businesses. New Society Publishers, Gabriola Island, British Columbia, CA.