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.............................. Swiffer Procter & Gamble
Logo and Trademark..............................
Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American global corporation based in Cincinnati, Ohio, that manufactures a wide range of consumer goods. As of 2007, P&G is the 25th largest US company by revenue, 18th largest by profit, and 10th in Fortune's Most Admired Companies list (as of 2007). P&G is credited with many business innovations including brand management, the soap opera, and "Connect & Develop" innovation.
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. 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 that is known to have caused anal leakage and
gastro-intestinal difficulties in humans. 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
divested Gillette's oral-care toothpaste 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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