Type

Public company NYSE: PG

Traded as

Dow Jones Industrial Average Component

Industry Founded Headquarters Area served

Consumer goods 1837 Cincinnati, Ohio, US Worldwide Bob McDonald

(President and CEO)

Key people

Products Revenue Operating income Net income Total assets Total equity Employees Website

See List of Procter & Gamble brands US$ 78.938 billion (FY 2010) US$ 16.021 billion (FY 2010) US$ 12.736 billion (FY 2010) US$ 128.127 billion (FY 2010) US$ 61.439 billion (FY 2010) 127,000 (2010) PG.com

Mission Statement
A mission statement is a concise summary of an organization's or person's purpose and aims. It is most often used by organizations in strategic planning and can be used by almost any type of business, organization or venture. The desire to create personal mission statements increases its popularity as a tag. For organizations, a mission statement seeks to describe the organization, its purposes and its methods. Many use the mission statement in promotional materials or on their web sites. Personal mission statements, in contrast, basically summarize what you want to do with your life or in the near future. In either case, the goal is for the statement to be succinct, meaning it may require a great deal of thought to be effective and meaningful.

Proctor & Gamble (P&G) Vision Statement

To provide branded products and services of superior quality and value that improve the lives of the worlds consumers

Company History
William Procter, a candlemaker, and James Gamble, a soapmaker, immigrated from England and Ireland respectively. They settled in Cincinnati initially and met when they married sisters, Olivia and Elizabeth Norris. Alexander Norris, their father-in-law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born. In 18581859, sales reached $1 million. By this point, approximately 80 employees worked for Procter & Gamble. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. In addition to the increased profits experienced during the

war, the military contracts introduced soldiers from all over the country to Procter & Gamble's products. In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats in water. The company called the soap Ivory. William Arnett Procter, William Procter's grandson, began a profit-sharing program for the company's workforce in 1887. By giving the workers a stake in the company, he correctly assumed that they would be less likely to go on strike. The company began to build factories in other locations in the United States because the demand for products had outgrown 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 oils rather than animal fats. As radio became more popular in the 1920s and 1930s, the company sponsored a number of radio programs. As a result, these shows often became commonly known as "soap operas". The company moved into other countries, both in terms of manufacturing and product sales, becoming an international corporation with its 1930 acquisition of the Thomas Hedley Co., based in Newcastle upon Tyne, England. Procter & Gamble maintained a strong link to the North East of England after this acquisition. 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 1947. 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 testmarketed 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 provided a convenient alternative, albeit at the environmental cost of more waste requiring landfilling.

Procter & Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), 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 that 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 lower-calorie substitute for fat in cooking potato chips and other snacks that during its development stages is known to have caused anal leakage and gastrointestinal difficulties in humans. Procter & Gamble has dramatically expanded throughout its history, but its headquarters still remains in Cincinnati. In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing 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 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 on October 1, 2005. Liquid Paper, and Gillette's stationery division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G branched into the record business with its sponsorship of Tag Records, as an endorsement for TAG Body Spray. P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study.[7] For example, P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another.

On August 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion Operations As of July 1, 2007, the company's operations are categorized into three "Global Business Units" with each Global Business Unit divided into "Business Segments" according to the company's March 2009 earnings release.

Beauty & Grooming

o o

Beauty segment Grooming segment

Ed Shirley is Vice Chairman of Global Beauty and Grooming, with Charles V. 'Chip' Bergh as Group President of Global Male Grooming and Virginia C. 'Gina' Drosos as Group President of Global Female Beauty.

Household Care
o o

Baby Care and Family Care segment Fabric Care and Home Care segment

Dimitri Panayotopoulos is Vice Chairman of Global Household Care with Martin Riant as Group President of Global Baby Care, Mary Lynn Ferguson-McHugh as Group President of Global Family Care, Jorge S. Mesquita as Group President of Global Fabric Care, and David S. Taylor as Group President of Global Home Care.

Health and Well-Being

o o

Health Care segment Snacks and Pet Care segment

Robert A. Steele is currently Vice Chairman of Global Health and Well-Being. Billion dollar brands

Ariel is a brand of laundry detergent/liquid available in numerous forms and scents. Bounty is a brand of paper towel sold in the United States and Canada. Braun is a small-appliances manufacturer specializing in electric shavers, epilators, hair CoverGirl is a brand of women's cosmetics. Crest/Oral B is a brand of toothpaste and teeth whitening products. Dawn/Fairy is a brand of dishwashing detergent. Downy/Lenor is a brand of fabric softener. Duracell is a brand of batteries and flashlights. Fusion is a brand of men's wet shave razors and is the quickest P&G brand to have Gain is a brand of laundry detergent, fabric softeners and liquid dish soap. Gillette is a brand of safety razor and male grooming products. Head & Shoulders is a brand of anti-dandruff shampoo and conditioners. Olay is a brand of women's skin care products. Oral-B is a brand of toothbrush, and oral care products. Pampers is a brand of disposable diaper and other baby care products. Pantene is a brand of hair care products (conditioners/styling aids). Ace/Tide is a brand of laundry detergent. Wella is a brand name of hair care products (shampoo, conditioner, styling, and hair Always/Whisper is a brand of pantyliners sold primarily in Asian markets. Flash/Mister Clean is a brand of multi-purpose cleaner, and spray sold in the United

care appliances and blenders.

reached $1 billion in annual sales.

color).

States and Great Britain. Most of these brands, including Bounty, Crest, and Tide, are global products available on several continents. Procter & Gamble products are available in North America, Latin America, Europe, the Middle East, Africa, Asia, Australia and New Zealand. Manufacturing operations are based in the following regions:

United States

Europe

Canada Mexico Latin America

China (31 wholly owned factories) and other parts of Asia Africa Australia

Productions The P&G production logo used from early 1986 to 2007. Procter & Gamble produced and sponsored the first radio soap operas in the 1930s (Procter & Gamble's being known for detergents (soaps) was probably the genesis of the term "soap opera"). When the medium switched to television in the 1950s and 1960s, most of the new serials were sponsored and produced by the company. The serial The Young and the Restless is currently broadcast on CBS and is still partially sponsored by Procter & Gamble. When As the World Turns left the air on September 17, 2010, The Young and the Restless, became the only soap left that is partially sponsored by Procter & Gamble.

Strategies
Consumer products manufacturer Procter & Gamble Co. is said to be ending its 77-year run as a prominent sponsor and producer of soap operas a genre the company helped create in favor of producing more campaigns using social media. The switch from soap operas to social media is one motivated by its success with previous social media campaigns such as its Old Spice Guy YouTube promotion and a desire to capitalize on the more readily available opportunities of reaching women through digital media. Digital media has become very integrated with how we operate, its become part of the way we do marketing, marketing chief Marc Pritchard told the Associated Press. Its kind of the oldest form of marketing word of mouth with the newest form of technology. The company is an important advertiser that spends nearly $9 billion per year to advertise its products. The company is finding social media sites such as Twitter, Facebook and YouTube to

be more effective channels for reaching women and has spent much of 2010 experimenting with campaigns in these arenas. We continue to advertise during daytime TV including soap operas as a way to reach consumers, a company spokesperson tells Mashable. In our marketing approach we build our brands based on the appropriate integrated holistic marketing campaign that reaches the consumer when and where they are receptive. As consumers spend more time online and via social media networks, our brands are naturally adding these options to their marketing plans as it helps them engage and serve consumers. The P&G business dates back to the mid 1800s when it began as a soap and candle-making company. The company started sponsoring radio programs which became known as soap operas in the 1930s when radio was emerging a popular medium. The brand continued to produce soap operas in the television era, including the now-defunct As the World Turns.