Proctor and Gamble
external image Procter_and_Gamble_Logo.png

General Description:
Proctor and Gamble is a huge company that owns lines of pharmaceuiticals, personal care products, cleaning supplies, and pet products.

Proctor and Gamble was established in 1837 by William Proctor and James Gamble. Since then, the company has gone down in history with many "firsts" for the business world and expanded their company with a large number of well known brand names.
In 1887, Proctor and Gamble created a profit-sharing program which gave its employees a share of ownership in the company. In 1924, the company became the first business to create a target market based off of data-based market research. In 1941, P&G became the first company ever to create a functioning public relations department that directly dealt with the questions and comments of the market. The current CEO of Procter and Gamble is Robert McDonald.

P&G is the largest maker of packaged products and largest advertiser in the US. It is the creator of some of the most popular beauty, health and household products. Operates in more than 180 countries and serves 4.2 million people. P&G has set up many humanitarian efforts such as Pampers 1 pack = 1 vaccine where they team up with UNICEF to donate vaccines to people in need.

Channels of Distribution
Procter and Gamble manufactures their own goods from many different countries such as the US, Canada, China, Mexico, Australia and more. These goods are sold in retail stores such as Walmart, Target, and other convenient stores all over the world. In the time in between, the Procter and Gamble owns a series of distribution centers in Texas, Ohio, and more.
The channel distributes the product to the customer. The intermediaries add value to the product because they use a lot of wholesalers and they have to keep paying for shipping and that makes the price go up. The customers connect directly with the channel when they order their products on the internet or off the infomercials.
The intensity of P&G products varies. Products like Febreze and Crest are intensive, because P&G uses all suitable outlets to sell these products. They are sold in Wal-marts, Targets, and supermarkets. Products such as Gucci and Lacoste, however, are selective because they are only sold in certain stores like department stores and their own stores as well. Wella Professionals have joined with P&G and are exclusive distributors of their hair and skincare products. They are only sold within their own stores.
Forms of Transportation

Procter and Gamble's products are relitivily small houshold iteams but need to be moved to many places in large quantities. Because many of the products are manufactured overseas their first mode of transportation is shipping on boats. The boats provided large amounts of carrying capacity with low cost, however boats are often effected by weather and seasonal delays which may delay the shipping time. Then the products move to truck fleets where P&G have a contract with "Ryder" one of the largest shipping companyies in the world. Trucks are relitivily fast form of transportation to their place of arrival such as Walmart and Target. However trucking is an expensive way to transport so often they use double trucks.

Main Points/Review Questions

- How many countries does procter and gamble operate in and how many people do they serve?

-What are three products that are produced by P&G?

-What are five things P&G has done for the environment?

-What company does P&G contract it's trucking through?

-Name one product in each of the different intensity levels.

-Who owns P&G?