p and g history
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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
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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
b
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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