p and g history

3
For many years, consumers who wanted whiter teeth had to use weak over-the-counter polish products, or go to the dentist for bleaching. The over-the-counter products were generally not able to produce dramatic results, as dentist offices could, but the in-office pr oc edur e wa s ex pensi ve andinconvenient. In addition , m any consume rs as sociate dental visits with unpleas ant experie nces andare not eager to visit the dentist for more than just a regular check-up and cleaning. Recently,advances in whitening technology have made it possible for consumers to whiten their own teeth athome. Procter & Gamble, one of the largest consumer products companies in the world, undertook market researchbefore l aunching its own product i n this ca tegory, and used the res earch t o makedec is ions ab out the marketing mix as well as its marketing strategy and tactics. This researchconsiders the effect of the marketing researchon the launch of Crest Whitestrips.Procter & Gamble used market research to determine whether there was a need for a whit enin g pr od uc t for in- home use , what type of product would be appropr iate, a nd whethe r that product wouldfit wi th Pr oc te r & Gamble's overall marketing strategy. Initial research confirmed that there was,indeed, an unmet need in the market. Research also revealed that consumers would accept a productthat required up to 30 minutes of use, and that women were considerably more interested in the p so indicated that the product would do better under the Crest brand. This is a significant shift, in thatCrest denotes hygiene and tooth care while Cover Girlwould indic ate cos meti cs and would defin ite lylim it t he n um ber of male con su me rs w ho w oul d pu rch as e- -a nd possibly use, if purchased bysomeone else--the whitening product. Market research thus helped the company determine its marketstrategy by sha ping the b ran d nam e and the pro duc t ide nti fic ati on ( dent al h ygi ene r ath er th an m erecosmeti cs) that the pr oduct would ca rr y. Knowing that women would be the primary target marketfor the product also shaped the tactics that Procter & Gamble used in its pr om ot io na l st ra te gy .Celebrity endorse ments can be effective, but using the right celebrity is critical to that effec tive ness .By u si ng Rosie O'Donnellto endorse the product, and by placing the product on her show, Procter &Gambl e was abl e to re ach th e targ et dem ogra phic that rese arch s how ed wou ld be cri tic al to th e prod uct' s succes s. Subseq uent research has shown that consumers have approached their dentistsregarding other cosmetic dental procedures; this helps maintain the relationship between Procter &Gamble and dentists. Perhaps the strongest support for the research  Procter & Gamble - History William Procter, a candlemaker, and James Gamble, a soapmaker, formed the company knownas 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, whose father convinced his new sons-in-law to become business partners.On October 31, 1837, as a result of Alexander Norris' suggestion, a bold new enterprise was born: Procter & Gamble.The company prospered during the nineteenth century. In 1859, sales reached one milliondollars. By this point, approximately eighty employees worked for Procter & Gamble. During theAmerican Civil War, the company won contracts to supply the Union Army with soap andcandles. In addition to the increased profits experienced during the war, the military contractsintr oduced soldiers from all over the country to Procter & Gamble's products. Once the war wasover 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, yet high quality,soap. The company called the soap Ivory. In the decades that followed, Procter & Gamblecontinued to grow and evolve. The company became known for its  progressive work environment in the late nineteenth century. William Cooper Procter, William Procter'sgrandson, established a profit-sharing program for the company's workforce in 1887. He hopedthat 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 thirtydifferent types by the 1890s. As electricity became more and more common, there was less needfor the candles that Procter & Gamble had made since its inception. Ultimately, the companychose to stop manufacturing candles in 1920.In the early t wentieth century, Procter & Gamble continued to grow. The company began to build factories in other locations in the United States, because the demand for products hadoutgrown 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 oilsrather than animal fats. In the early 1900s, Procter & Gamble also became known for its researchlaboratories, where scientists worked to create new products. Company leadership also pioneeredin the area of 

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For many years, consumers who wanted whiter teeth had to use weak over-the-counter polish products, or go to the dentist for bleaching.

The over-the-counter products were generally not able to produce dramatic results, as dentist offices could, but the in-office

procedure was expensive andinconvenient. In addition, many consumers associate dental visits with unpleasant experiences andare

not eager to visit the dentist for more than just a regular check-up and cleaning. Recently,advances in whitening technology have made it

possible for consumers to whiten their own teeth athome. Procter & Gamble, one of the largest consumer products companies in the

world, undertookmarket researchbefore launching its own product in this category, and used the research to makedecisions aboutthe marketing mix as well as its marketing strategy and tactics. This researchconsiders the effect of themarketing

researchon the launch of Crest Whitestrips.Procter & Gamble used market research to determine whether there was a need for

awhitening productfor in-home use, what type of product would be appropriate, and whether that product wouldfit with Procter &

Gamble's overall marketing strategy. Initial research confirmed that there was,indeed, an unmet need in the market.

Research also revealed that consumers would accept a productthat required up to 30 minutes of use, and that women were considerably

more interested in the p

so indicated that the product would do better under the Crest brand. This is a significant shift, in thatCrest denotes hygiene and tooth care

whileCover Girlwould indicate cosmetics and would definitelylimit the number of male consumers who would purchase--and

possibly use, if purchased bysomeone else--the whitening product. Market research thus helped the company determine its marketstrategy by

shaping the brand name and the product identification (dental hygiene rather than merecosmetics) that the product would carry.

Knowing that women would be the primary target marketfor the product also shaped the tactics that Procter & Gamble used in itspromotional strategy.Celebrity endorsements can be effective, but using the right celebrity is critical to that

effectiveness.By usingRosie O'Donnellto endorse the product, and by placing the product on her show, Procter

&Gamble was able to reach the target demographic that research showed would be critical to the product's success. Subsequent

research has shown that consumers have approached their dentistsregarding other cosmetic dental procedures; this helps

maintain the relationship between Procter &Gamble and dentists. Perhaps the strongest support for the research  Procter & Gamble - History 

William Procter, a candlemaker, and James Gamble, a soapmaker, formed the company knownas 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, whose father convinced his new sons-in-law to become business partners.On October 31,1837, as a result of Alexander Norris' suggestion, a bold new enterprise was born: Procter & Gamble.The company

prospered during the nineteenth century. In 1859, sales reached one milliondollars. By this point, approximately

eighty 

employees worked for Procter & Gamble. During theAmerican Civil War, the company won contracts to supply the Union

Army with soap andcandles. In addition to the increased profits experienced during the war, the military

contractsintroduced soldiers from all over the country to Procter & Gamble's products. Once the war wasover 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, yet high quality,soap. The company called the soap Ivory. In the

decades that followed, Procter & Gamblecontinued to grow and evolve. The company became known for its 

progressive work environment in the late nineteenth century. William Cooper Procter, William Procter'sgrandson, established a

profit-sharing program for the company's workforce in 1887. He hopedthat by giving the workers a stake in thecompany, 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 thirtydifferent types by the 1890s. As electricity became more and more common, there

was less needfor the candles that Procter & Gamble had made since its inception. Ultimately, the companychose 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

hadoutgrown 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 oilsrather than animal fats. In the early 1900s,

Procter & Gamble also became known for its researchlaboratories, where scientists worked to create new

products. Company leadership also pioneeredin the area of 

7/31/2019 P and G history

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market research  , investigating consumer needs and product appeal. As radio becamemore popular in the 1920s and 1930s, the

company sponsored a number of radio programs. As aresult, these shows often became commonly known as "soap

operas."Throughout the twentieth century, Procter & Gamble continued to prosper. The company movedinto 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 has maintaineda strong link to the North East of England after thisacquisition. In addition, numerous new products and brand

names were introduced over time,and Procter & Gamble began branching out into new areas. The company

introduced Tidelaundry detergent in 1946 and "Prell" shampoo in 1950. In 1955, Procter & Gamble beganselling the

first toothpaste to contain fluoride, known as "Crest". Branching out once again in1957, the company purchased

Charmin Paper Mills and began manufacturing toilet paper andother 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 mostrevolutionary 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 wereleaky 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

acquisitionsincluded Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell, Shulton'sOld

Spice, Max Factor, and the Iams Company, among others. In 1996, Procter & Gamble madeheadlines when the

Food and Drug Administration approved a new product developed by thecompany, Olestra. Olestra, also known by

its

rand name Olean, is a substitute for fat in cooking potato chips and other snacks. Procter & Gamble has expanded dramatically

throughout itshistory, but its headquarters still remains in Cincinnati. {Source, Ohio History Central.}In January

2005 P&G announced an acquisition of Gillette to form the largest consumer goodscompany, displacing the Anglo-

Dutch Unilever into second place. This added brands such asGillette razors, Duracell, Braun and Oral-B to their

stable. The acquisition was approved by theEuropean Union and the Federal Trade Commission, with conditions

to a spinoff of certainoverlapping brands. P&G has agreed to sell its SpinBrush battery-operated, electric toothbrush

bu 

siness to Church & Dwight. It also plans to divest the Gillette's oral care product line,Rembrandt, and the deodorant brands

Right Guard, Soft & Dri and Dry Idea. The companiesofficially merged October 1, 2005.P&G's dominance in many

categories of consumer products makes its brand managementdecisions worthy of study. For example, P&G's

corporate strategists must account for thelikelihood of one of their products cannibalizing the sales of another

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