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Procter & Gamble (P&G)

The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio.

Categories

Retail and Consumer Goods  

#23

Rank

$350.83B

MarketCap US

US United States

Country

Summary

Procter & Gamble (P&G) is a multinational consumer goods company based in Cincinnati, Ohio, United States. The company was founded in 1837 by William Procter and James Gamble and has since grown to become one of the world's largest and most successful consumer goods companies, with operations in more than 180 countries.

P&G's product portfolio includes a wide range of household and personal care brands, such as Tide laundry detergent, Pampers diapers, Crest toothpaste, Gillette razors, and Olay skincare products. The company also has a significant presence in the pet care, grooming, and healthcare markets, with brands such as Iams, Oral-B, and Vicks.

P&G is known for its innovative approach to product development and marketing and has a strong focus on research and development to drive growth and competitiveness. The company has a long history of successful product launches and marketing campaigns and is known for its iconic branding and advertising.

P&G has also been recognised for its commitment to sustainability and corporate social responsibility, with a range of initiatives aimed at reducing its environmental footprint and promoting social and economic development in communities around the world.

As of 2021, P&G employs more than 100,000 people globally and had annual revenues of over $76 billion. The company is consistently ranked among the world's most admired and valuable brands and is widely regarded as a leader in the consumer goods industry.


History

Procter & Gamble (P&G) was founded in 1837 in Cincinnati, Ohio, United States, by William Procter, a candle maker, and James Gamble, a soap maker. The two men, who had married sisters, formed a business partnership to create and sell soap and candles.

Their early success was due in part to their innovative use of high-quality ingredients and their focus on improving the quality of their products. They also implemented a unique profit-sharing system for their employees, which helped to motivate and retain a loyal workforce.

During the 1850s and 1860s, P&G continued to expand its product line, introducing new soap and candle varieties and developing innovative packaging and marketing strategies. In 1879, the company made a major breakthrough with the development of Ivory soap, which quickly became one of its most successful products.

By the turn of the century, P&G had become one of the largest and most successful soap and candle manufacturers in the world, with operations in several countries and a reputation for quality and innovation. The company's success was due in part to its commitment to research and development, with a dedicated research lab established in the late 1800s to explore new ingredients and product formulations.

Throughout its early history, P&G was also known for its strong commitment to social responsibility and community engagement. The company was actively involved in promoting education, health, and sanitation initiatives in the communities where it operated, and was recognised as a leading corporate citizen in the United States.

Procter & Gamble (P&G) continued to expand and diversify its product line during the early 1900s, with the introduction of new soap brands, including Camay and Olay, and the launch of its first toothpaste, Crest, in 1955.

In the 1920s, P&G began to expand internationally, establishing operations in Canada, the United Kingdom, and several other countries. The company's international expansion continued throughout the following decades, with new plants and offices opening in Europe, Latin America, and Asia.

During the 1930s and 1940s, P&G continued to innovate in the area of advertising, with the introduction of radio and television commercials and the development of new marketing techniques. The company's famous jingle "Ivory Snow, the soap that's 99.44/100% pure" became a household catchphrase in the United States during this time.

P&G also played a significant role in the war effort during World War II, producing a range of products for the military, including soaps, detergents, and insecticides. The company's research and development efforts during this time also led to the development of new materials, including synthetic detergents and the polymer polypropylene.

In the post-war period, P&G continued to expand its product line and international operations, with new brands and products introduced, including Tide laundry detergent in 1946 and Pampers disposable diapers in 1961. The company's commitment to research and development also continued, with the establishment of a new research center in the 1950s dedicated to the development of new products and technologies. 

Procter & Gamble (P&G) continued to expand and diversify its product line during the late 1950s and 1960s, with the introduction of new brands such as Head & Shoulders shampoo and Folgers coffee. In 1970, P&G introduced the first liquid fabric softener, Downy.

During the 1980s and 1990s, P&G experienced significant changes in its leadership and business strategy. John Smale became CEO in 1981 and introduced a new focus on innovation and decentralisation. P&G divested several non-core businesses and acquired new companies in the beauty and personal care sectors, including Max Factor and Noxell.

In 1985, P&G launched its highly successful "The Fabric of Our Lives" advertising campaign, which focused on the emotional connection between consumers and their favorite P&G products. The company also introduced new environmentally-friendly products, such as concentrated laundry detergents, and expanded its operations in emerging markets such as China and India.

In the 1990s, P&G underwent a significant restructuring under the leadership of CEO Durk Jager, who sought to streamline operations and focus on core brands. Jager also introduced a new product development process, which emphasized customer needs and preferences. During this time, P&G divested several underperforming brands and acquired new companies, such as Iams pet food and Tambrands feminine hygiene products.

In 1999, P&G acquired Clairol, a major player in the hair care industry, for $4.95 billion, further expanding its presence in the beauty and personal care sector. 

In the early 2000s, Procter & Gamble (P&G) continued to focus on streamlining operations and building its core brands, divesting underperforming businesses and expanding its presence in emerging markets. In 2001, P&G acquired Wella AG, a German hair care company, for $5.7 billion, expanding its reach in the professional hair care industry.

In 2005, P&G launched the "Live, Learn, and Thrive" global initiative, focused on improving the lives of children in need around the world through education, health, and hygiene programs. The company also continued to innovate and introduce new products, such as the Swiffer WetJet and the Crest Whitestrips Advanced Seal.

In 2009, P&G announced its acquisition of the razor and grooming products company, Gillette, for $57 billion, in what was then the largest merger in consumer goods history. The merger brought together two of the world's most recognized consumer products companies, and expanded P&G's reach into the male grooming market.

In the following years, P&G continued to focus on innovation and expanding its global footprint. The company introduced new environmentally-friendly products, such as Tide Coldwater, and expanded its operations in China, India, and other emerging markets. In 2014, P&G announced plans to divest more than half of its brands, focusing on its core businesses and reducing costs.

P&G also embraced digital marketing and e-commerce, launching a number of successful online campaigns and partnering with retailers such as Amazon and Walmart to sell its products online. The company continued to introduce new products, such as the Always Discreet line of feminine hygiene products and the Tide Pods laundry detergent.

In recent years, P&G has focused on sustainability and social responsibility, pledging to achieve 100% recyclable or reusable packaging by 2030 and launching initiatives to promote diversity and inclusion within the company and in society. 


Mission

The mission of Procter & Gamble (P&G) is to provide high-quality consumer products that improve the lives of people around the world. P&G seeks to achieve this mission by delivering brands and products that meet the needs of consumers and improve their everyday experiences. 

The company aims to innovate and create value for its customers, employees, and shareholders while maintaining a commitment to sustainability and social responsibility. P&G also aims to foster a diverse and inclusive culture that values and respects all individuals. 


Vision

Procter & Gamble's vision is to provide branded products and services of superior quality and value that improve the lives of the world's consumers. 

The company aims to be a leader in sustainability and corporate responsibility, with a focus on making a positive impact on the communities it serves. Procter & Gamble strives to create strong, trusted, and sustainable brands that are widely recognised for their quality and value, and to be a company that is widely respected for its ethics, values, and commitment to making a positive difference in the world.


Key Team

Jon R. Moeller (Chairman of the Board, President and Chief Executive Officer)

Shailesh G. Jejurikar (Chief Operating Officer)

Gary Coombe (Chief Executive Officer, Grooming)

Jennifer Davis (Chief Executive Officer, Health Care)

Ma. Fatima D. Francisco (Chief Executive Officer, Beauty Executive Sponsor, Corporate Sustainability)

Sundar G. Raman (Chief Executive Officer, Fabric & Home Care)

Andre Schulten (Chief Financial Officer)

Hesham Tohamy Abd El Hak (President, Feminine Care)

Victor Aguilar (Chief Research, Development and Innovation Officer)

Juliana Azevedo (President, Latin America)

Laura Becker (President, Global Business Services)

Eric Breissinger (President, Family Care)

Vittorio Cretella (Chief Information Officer)

Philip J. Duncan (Chief Design Officer)

Christophe Duron (President, Go-To-Market, China, and Market Operations, Hong Kong and Taiwan)

Paul Gama (President, Personal Health Care)

Virginie Helias (Chief Sustainability Officer)

Damon Jones (Chief Communications Officer)

Shelly McNamara (Chief Equality & Inclusion Officer)

Ken Patel (Chief Ethics & Compliance Officer and Chief Patent Counsel)

Guy Persaud (President, New Business)

Matthew S. Price (President, Home Care and P&G Professional)

Marc S. Pritchard (Chief Brand Officer)

Bala Purushothaman (Chief Human Resources Officer)

Luc Reynaert (Chief Product Supply Officer)

Mindy Sherwood (President, Global Walmart and Chief Sales Officer)

Kirti Singh (Chief Analytics and Insights Officer)

Markus Strobel (President, Skin & Personal Care)

Loïc Tassel (President, Europe)

Monica Turner (President, North America)

Stanislav (Standa) Vecera (President, Asia Pacific, Middle East and Africa)

Susan Street Whaley (Chief Legal Officer and Secretary)

Jasmine Xu (President, Greater China)


Recognition and Awards
Fortune's Most Admired Companies: P&G has consistently been recognized by Fortune magazine as one of the "World's Most Admired Companies." This recognition reflects P&G's reputation for excellence in areas such as innovation, quality of products, social responsibility, and long-term investment value. Corporate Responsibility Magazine's 100 Best Corporate Citizens: P&G has been included in the Corporate Responsibility Magazine's list of the "100 Best Corporate Citizens" multiple times. This recognition acknowledges P&G's commitment to corporate social responsibility, sustainability practices, and ethical business conduct. Human Rights Campaign's Corporate Equality Index: P&G has achieved a perfect score of 100% on the Human Rights Campaign's Corporate Equality Index, which assesses companies' policies and practices related to LGBTQ+ equality in the workplace. Dow Jones Sustainability Index: P&G has been consistently listed on the Dow Jones Sustainability Index, which recognizes companies for their sustainability performance. P&G's efforts in areas such as environmental sustainability, responsible sourcing, and community engagement have been acknowledged through this recognition. Edison Awards: P&G has received multiple Edison Awards, which celebrate innovation and excellence in product development. P&G's innovative products, such as consumer goods, personal care items, and home cleaning solutions, have been recognized for their outstanding design, functionality, and positive impact on people's lives. Cannes Lions International Festival of Creativity: P&G has received numerous accolades at the Cannes Lions festival, one of the most prestigious events in the advertising and marketing industry. P&G's creative and impactful advertising campaigns have been honored with awards in categories such as film, digital, and social media.

Products and Services

As of 2023, the company structure has been categorised into: baby care, fabric care, family care, feminine care, grooming, hair care, home care, oral care, personal health care, and skin and personal care. 

As of 2015, 21 of P&G's brands have more than a billion dollars in net annual sales. Most of these brands—including Bounty, Crest, Always, and Tide—are global products available on several continents. P&G's products are available in North America, Latin America, Europe, the Middle East, Africa, Asia, Australia, and New Zealand.

In 2018, P&G's fabric and home care division accounted for 32% of the company's total net sales, the highest of all its divisions. The division includes Downy, Gain, Tide, Febreze, and Dawn.

Procter & Gamble produced and sponsored the first radio serial dramas in the 1930s. As the company was known for Ivory soap, the serials became known as "soap operas". With the rise of television in the 1950s and 1960s, most of the new serials were sponsored, produced, and owned (20 series) by the company (including The Guiding Light, which had begun as a radio serial and made the transition to television lasting 72 years). Though the last P&G-produced show, As the World Turns, left the air in 2010, The Young and the Restless, produced by Sony Pictures Television and broadcast on CBS, is still partially sponsored by Procter & Gamble; as of 2017, it is the only remaining daytime drama that is partially sponsored by Procter & Gamble.

These past serials were produced by Procter & Gamble:

Another World, As the World Turns, The Brighter Day, The Catlins, The Edge of Night, The First Hundred Years, From These Roots, Guiding Light, Lovers and Friends / For Richer, for Poorer, Our Private World, Search for Tomorrow, Somerset, Texas, and Young Doctor Malone.


References

 

Procter & Gamble (P&G)
Leadership team

James Gamble (Founder)

William Procter (Founder)

Shailesh G. Jejurikar (Chief Operating Officer)

Gary Coombe (Chief Executive Officer, Grooming)

Jennifer Davis (Chief Executive Officer, Health Care)

Ma. Fatima D. Francisco (Chief Executive Officer – Baby, Feminine and Family Care Executive Sponsor, Gender Equality)

R. Alexandra Keith (Chief Executive Officer, Beauty Executive Sponsor, Corporate Sustainability)

Sundar G. Raman (Chief Executive Officer, Fabric & Home Care)

Andre Schulten (Chief Financial Officer)

Industries

Retail and Consumer Goods

Products/ Services
Cleaning agents, Skin care, Personal care
Number of Employees
Above 50,000
Headquarters
1 P&G Plaza Cincinnati, OH 45202
Established
1837
Company Type
Public Limited Company
Company Registration
0000080424
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
PG
Social Media

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