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Transcript of P&G History
Tetuko Mustofa A 29114461
Gilang Ramadhan 29114308
Nisa Septianita S 29114427
Dely Indah Sari 29114592
175 years of Innovation
•Revised Pricing opportunities (Not just premium-priced offerings)
•Building Staff - CEO nurtures internal talent actively
•P&G is Market Focused and Flexible
•Focused on what they do well – their strongest brands
•Strong company culture (Family)
•Ability to “make or create” brands
•Maintaining relevancy in the 21st century
•Competitors are fighting back while P&G continues restructuring
•Pressure from customers and retailers to keep prices low
•Insular culture-resistant to new ideas
•High Executive Leadership turnover (3 during the 1990’s)
•Management before Lafley unable or unwilling to change with the times
•Recent profits are due to cuts in costs and capital spending/R&D
1837-William Procter, candle-maker, and James Gamble, soap-maker, met when they became brothers-in-law and P & G was created
1887-Ivory Soap was created
1911-Crisco production begins (revolutionary in that they used vegetable fats instead of animal fats)
1920s and 1930s-began sponsoring many radio programs that became known as “soap operas”
1957-Introduced Tide laundry detergent, Prell Shampoo, and purchased Charmin
Timeline 1960 - Today
1960-Downy fabric softener
1961-Popularized disposable diapers with Pampers-big environmental impact as they required more use of landfills
1970s-Present-acquired numerous companies including Folgers Coffee, the makers of Pepto-Bismol, as well as Noxzema, Old Spice, Max Factor, and Iams
1972-Bounce dryer sheets created
1980s - Logo controversy
2001-Acquired the Crest Spinbrush
2005 - Acquired Gillette making it the largest consumer goods company. This acquisition added Duracell, Braun, and Oral-B.
2011-Jif and Crisco sold to JM Smucker’s
2012-Completely got out of the food business when it sold Pringles
1980s-Received unwanted media publicity when rumors spread that the moon-and-stars logo was a satanic symbol based on a passage in the Bible, Revelation 12:1. "And there appeared a great wonder in heaven; a woman clothed with the sun, and the moon under her feet, and upon her head a crown of 12 stars."
P&G's logo consisted of a man's face on the moon surrounded by 13 stars, and some claimed that the logo was a mockery of the heavenly symbol thus construing the logo to be satanic.
Where the flowing beard meets the surrounding circle, three curls were said to be a mirror image of the number 666 or the number of the beast. At the top and bottom, the hair curls in on itself, and was said to be the two horns like those of a ram.
These interpretations have been denied by company officials, and no evidence linking the company to the Church of Satan or any other occult organization has ever been presented.
The company unsuccessfully sued Amway from 1995 to 2003 over rumors forwarded through a company voicemail system in 1995. In 2011, the company was successful in suing individual Amway distributors for reviving and propagating the false rumors. The moon-and-stars logo was discontinued in 1985 due to the controversy.
Not just reformulate…CREATE
Get Ahead…Stay Ahead
Re-invest and Appropriate funds to R&D
Homegrown blockbusters are Swiffer cleaning devices, Crest Whitestrips, and Febreeze odor fresheners, all launched over a decade ago
Return the focus to taking care of the loyal customers/consumers
Re-Educate employees from management down
Erase the ideology of doing the same ol’ thing
Change with times
History and Case Background
Analysis and Challenges
Emphasizes written rather than oral communication
High level of secrecy
Lesson from P&G
Dynamics of an internal labor market
Time and Inertia
Selecting Performance target