A comprehensive background of P&G containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.

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History & Origin . . . . . . . . . . . . . . . . . . . 3
Early Evolution . . . . . . . . . . . . . . . . . . . .4
Global Expansion . . . . . . . . . . . . . . . . . 7
Modern Business . . . . . . . . . . . . . . . . . 10
Company Structure . . . . . . . . . . . . . . 11
Recent Efforts . . . . . . . . . . . . . . . . . . . 13
Company DNA . . . . . . . . . . . . . . . . . .17
Summary . . . . . . . . . . . . . . . . . . . . . . . 18
Social Media Accounts . . . . . . . . . . . 19

3.  Founded in Cincinnati, Ohio, USA in 1837
 Alexander Norris, a Cincinnati candle-maker, was concerned for the financial
well-being of his two daughters, Olivia and Elizabeth, during an economic
downturn precipitated by a banking crisis, so he suggested to their respective
husbands that they combine their struggling businesses to better weather
the storm
 Irish soap maker, James A. Gamble and English candle-maker, William Procter
dutifully pooled their collective business assets of $7,192.24 to create the
firm of Procter & Gamble (P&G) on 31st
 Their surplus fat made a lot of candles and soap
 Procter & Gamble given its location backed the winning side and was soon
shipping vast quantities of candles and to a lesser extent soap to the Union
armies
 The business founded at a time before modern consumer markets
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 Procter bought the formula and playing around with it decided to combine it
with another soap feature he had been experimenting with himself;
floatability, which stopped the bar getting lost in murky bathwater
 For the next 30 years, P&G concentrated most of its efforts in developing an
unrivalled competence in soaps and consumer
 P&G could have remained as one of America’s hundreds of soap companies
and would almost certainly have been swallowed in the great series of
interwar industry consolidations with the likes of James S. Kirk & Co
 P&G immediately improved their product by adding naphtha
 P&G formed the Buckeye Cotton Oil Co. to acquire and build cottonseed oil
mills

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 A scientist E. C. Kayser, literally walked into its office with the technology for
hydrogenation, which enables liquid oils to be solidified at room
temperature. P&G bought it in short order, patented it four years later and
launched Crisco, the world’s first shortening made entirely from vegetable oil
 P&G had been expanding laterally in the soap market
 In 1890, P&G had 577 direct soap competitors which kept prices low and
profits elusive
 In 1903, P&G entered laundry powder
 P&G become second-biggest brand after Ivory had been Lennox
 The soap industry began to consolidate and P&G, bolstered by the success of
Crisco, was able to lead the charge swallowing up many local, regional, and
even national players
 P&G products sales of $188 million in 1919 fell to $106 million by 1922 and
did not reach their original level until 1926

6.  P&G’s launch of Camay, a perfumed ‘beauty’ soap, developed as a response
to the launch of Palmolive.
 P&G’s first operation outside of the United States had been as early as 1915
in the manufacturing plant in Hamilton, Canada
 They set up an International division in 1946
 The next baby step came in 1948 with an acquisition in Mexico, soon to be
followed by Venezuela and Cuba
 By 1990, there was operations in sixteen product categories
 Today it has a share of around 25% in the $4 billion, and rapidly growing,
Mexican household products market among other sectors
 Through the 1950s P&G built detergent plants in France, Belgium and Italy
 They led to the initial development of Tide with Henkel, Europe’s detergents
giant
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7.  Ariel became P&G’s power brand in its overseas markets, and strong enough
to overtake Tide and become the company’s largest detergent brand
 Pampers became a very big brand for P&G across most of its European
markets.
 P&G’s next major learning experience in globalism came with its 1970s
experience in Japan
 P&G had a fairly standard approach to entering markets; research the
consumer and retail trade form an alliance with a local player as a quick
access route and a conduit for P&G technologies and brands until a critical
mass for a P&G local operation was achieved
 By 1985, thirteen years after entering the market P&G still hadn’t turned a
profit and pulled together a last-ditch attempt to make a success of its
venture
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8.  P&G developed a large and profitable business in Japan an experience that
would inform its subsequent forays into Eastern Europe and the emerging
BRIC markets (Brazil, Russia, India, China)
 In the end of the 1970s P&G had finally established itself as a genuine global
company with one-third of its sales coming from outside the US
 P&G was determined to win first place in the race into the crumbling
Communist markets of Eastern Europe
 P&G’s Eastern European business had looked very rosy indeed with annual
revenues well over $1 billion in 1997
 P&G was also very quick into China opening the biggest consumer products
factory in the country in 1991
 In three years it was shipping four million cases of product a year, making
the China one of P&G’s top-ten markets
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9.  P&G progressively extended into fabric care, feminine care, oral care and
baby care, eventually building China into its second-largest market,
generating sales of $6 billion in 2012
 The rate of growth in China for P&G products was around $200 million
 After ten years it was increased to $2.8 billion
 P&G’s growth in developing markets has become the growth engine of the
entire company
 Their Sales of $8 billion in 2001 had grown to $21 billion by 2007 when they
accounted for 29% of total company sales. Two years later that was up to
32%
 P&G’s compound annual growth has been 17% in China, 25% in Russia and
27% in India
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10.  Procter & Gamble came into the post-war period better equipped than any
other packaged goods company to benefit from the twenty-year consumer
boom that was about to take place
 P&G focused on developing its skills in product enhancements
 P&G was now changing rapidly into a maker and seller of brands rather than
having any specific category focus
 It was the country’s biggest advertiser at a time when television dramatically
enhanced the ability to reach and influence consumers
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11.  P&G had first structured itself into divisions as early as 1955
 Tambrands, Clairol, and Wella purchases made the company in a state of
constant realignment, which was not eased by selling some of is businesses
 After the Wella acquisition, it was employing nearly 100,000 people in over
80 countries
 In 1998, P&G launched Organisation 2005 with an aim to cope with the twin
challenges of a truly global company trading in various market conditions,
while operating across a large number of product segments
 It resulted to three-pronged matrix with seven Global Business Units (GBUs)
in the first segment:
 Issue and Towel
 Fabric and Home Care
 Feminine Protection
 Health Care
 Food and Beverage
 Baby Care
 Beauty
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12.  The second segment had eight Market Development Organisations (MDOs),
that were responsible for customer development and local marketing
execution
 The third segment was a global set of corporate functions
 The re-organization didn’t go well, resulting to a 2.6% sales drop
 CEO A.G. Lafley, gave matrix structure an external focus by coming up with
the “Two Moments of Truth” idea
 Baby Care, Feminine Care, Tissue and Towel, and Health Care segments were
merged into one new Baby Care and Family Care unit
 He also demanded to focus on winning with top brands, customers, and
market
 In 2003, P&G’s top ten brands grew by 8%, top ten customers by 13%, and
top ten markets by 11%
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13. 2004
 Net sales increased by 17%, breaking the $50 billion barrier
 Global market shares core segments increased: 36% in Baby Care, 35% in
Feminine Care, and 31% in Fabric Care
 Pharmaceuticals Sector launched Actonel, an osteoporosis brand
 Prilosec OTC brand achieved market leadership in the heartburn treatment
category
2005
 Sales increased by 11% to $57 billion
 Tide Coldwater made a successful transition in European and North American
markets
 Product innovation like Tide with a Touch of Downy, Febreze air freshener,
Blendax toothpaste, Bounty Basic, and Charmin Basic
 Gillette acquisition deal was ratified, increasing the company by 20%
 Gillette deal included Duracell, Braun electric shavers, and Oral-B toothbrush
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14. 2006
 Gillette deal boosted sales by 20% to $68 billion
 Launched the year’s best selling new product, Gillette Fusion
 Around 35% of the company’s products included technologies sourced from
outside the company
2007
 Product innovations like Tide Simple Pleasures, Febreze Noticeables, and
Crest Pro-Health
 The company acquired Dolce & Gabbana
 Sales of blades and razors increased by 8%
2008
 The 50% target for new products with an external component was met
 Pampers Baby Stages of Development exceeded sales of $8 billion
 Charmin Ultra-Strong, Bounty Basic and Bounty Extra Soft, under Family Care
segment had a strong growth
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15.  In Beauty segment, Olay Regenerist and Dolce & Gabbana were in the lead
2009
 The economic crisis hit the company hard
 Net sales declined by 3%
 Baby Care and Family Care were the only segments to report growth
 CEO Lafley was replaced by Bob McDonald
2010
 The company returned to growth
 It claimed to have 4.2 billion customers
 Ambi Pur and Sara Lee acquisition
 Product innovations like Fusion ProGlide, Pampers with DryMax, and Crest
toothpaste 3D White
 Gillette Guard was launched in India, making it the biggest-selling razor in
just three months
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2011
 P&G won 32 Lion Awards in Cannes Lions International Festival of Creativity
for its advertising
 Natura pet business acquisition
 Prilosec OTC merged with Teva Pharmaceutical Industries
 From seven segments of Organisation 2005, it was down to two namely
Grooming and Beauty, and Household Care
2012
 The return of growth in US did not fully help P&G to increase sales Product
innovation such as Tide Pods
 Pringles was sold to Kellogg’s

17.  The company is in the business of building brands and brand value
 It was the first company to produce half-hour television series
 It was also the first company to align every function in the business around
the sole goal of building brands
 P&G mastered the application of science in building brands
 Rigour and tenacity were two qualities that made P&G successful in terms of
building brands
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18.  P&G currently sells 40 billion products a year
 It ranked sixth in Fortune’s World’s Most Admired Companies because of its
expertise gained through long years of market experience
 Though considered as one of the best companies, it currently faces greater
challenge of returning into full growth
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19. Website/s: www.pg.com/en_UK/
www.pg.com/en_US/index.shtml
LinkedIn: www.linkedin.com/company/procter-&-gamble
Facebook: www.facebook.com/proctergamble
Twitter: www.twitter.com/proctergamble
Youtube: www.youtube.com/user/ProcterGamble
Google+: plus.google.com/+ProcterGamble/videos
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