Procter and Gamble (P&G) is an American multinational company who produce consumer goods. The headquarter of P&G is in downtown Cincinnati, Ohio. Proctor and Gamble founded in 1837 by William Procter and Irish American James Gamble.
P&G produce in a wide range of personal health, consumer health, and personal care and hygiene products all these products are arranged into several segments including Beauty, Health Care, Grooming, Fabric & Home Care, and Baby, Feminine, & Family Care. Earlier the sale of Pringles to Kellogg’s, P&G’s product ratio also included foods, snacks, and beverages.
As of 2014, Procter and Gamble (P&G) had US$83.1 billion in sales. On August 1, 2014, Procter and Gamble (P&G) declared it was simplifying the company which will drop and selling off around 100 brands from its product portfolio to concentrate on the remaining 65 brands which are the central 95% of the company’s profits. A. G. Lafley Procter and Gamble (P&G)’s chairman, president, and CEO announced the future Procter and Gamble (P&G) would be “a much simpler, less complicated company of leading brands that’s easier to manage, run and operate.” The current president and CEO of Procter & Gamble are David Taylor.
How Procter and Gamble (P&G) Founded!
The origin history of Procter and Gamble (P&G) is quite impressive, Candlemaker William Procter who born in England and soap maker James Gamble who born in Ireland later both of them emigrated from the United Kingdom to the United States. They met when they married sisters Olivia and Elizabeth Norris. After that, Alexander Norris, their father-in-law who encourage them to become business partners, and then in 1837 Procter & Gamble was founded.
Various new products and brand names were introduced with time, and on that time, Procter & Gamble began expanding into new areas. P&G launched Tide laundry detergent in 1946 and Prell shampoo in 1947 which caught the market well. In 1955, P&G started selling the first toothpaste which contains fluoride which was known as Crest. Expanding out again in 1957, the company bought Charmin paper mills and started producing toilet paper and other tissue paper products. Later, to focusing on laundry still, Procter & Gamble began to making Downy fabric softener and Bounce fabric softener sheets.
One of the most exotic products that come out on the market was P&G’s disposable Pampers diaper which was first test-marketed in 1961 and in the same year P&G launched Head & Shoulders. On this point, disposable diapers were not that popular, but Johnson & Johnson had introduced a product called Chux, which was babies all time wore cloth diapers that were leaky and labor-intensive to wash. However, Pampers gave a convenient alternative. However, at that time, the new concerns of parents were about the ingredients in diapers because of that Pampers launched Pampers Pure collection in 2018, which is a “natural” diaper substitute.
In 2012 P&G leave the food business when P&G sold its Pringles snack food business to Kellogg’s for US$2.75 billion. Earlier P&G had sold Jif peanut butter, Crisco shortening and oils, and Folgers coffee in different transactions to Smucker’s.
P&G declared it was selling its Vicks VapoSteam which is U.S. liquid inhalant business to Helen of Troy which was a part of a brand-restructuring operation In March 2015. This particular P&G deal was the first health-related disinvestment under the brand-restructuring supervision.
P&G declared the sale of 43 of its beauty brands to Coty in July 2015 which was a US$13 billion deal. P&G’s slow growth of its beauty areas was the reason for the divestiture. P&G did the transfer of Duracell to Berkshire Hathaway through an exchange of shares in February 2016. Procter & Gamble purchased the consumer health division of Merck Group for $3.9 billion in April 2018. Procter & Gamble announced a more straightforward corporate structure with six business units which will be effective from July 2019.
According to 2018, Procter & Gamble total earnings is US$9.750 billion, and the annual revenue is US$66.832 billion, with an increase of 2.7% over the previous year. P&G ranked 42nd in 2018 Fortune 500 list of the largest United States company by total revenue.