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Procter and Gamble – History, Brand Value and Strategies

P&G (short for Procter and Gamble) is an American multinational brand which deals in consumer goods. P&G is perhaps one of the largest consumer goods company in the world and it has a worldwide market reach in almost all of the major markets.

P&G has a number of popular products under its brand and the immense popularity of its products has made the brand what it is today. The brand is headquartered in Cincinnati, USA.


Procter and Gamble Brand History

Procter and Gamble is an American producer of cleansers, and other household essential items. The brand was established back in the year 1837. William Procter was an English candlemaker and James Gamble was an Irish soap maker decided to combine their organizations in Ohio in the year 1837. 


The initial days

The main element for the two items was animal fat and it was promptly accessible in the hog butchering point of Cincinnati. The organization provided cleanser and candles to the armed force at the time of the American Civil War.

They eventually sold much a greater amount of these items to the common public when the war was over. Among its initial items, there were the following items: Ivory soap was introduced back in the year 1879, the first ever synthetic detergent Tide was introduced in the year 1946 and the first ever synthetic liquid detergent Joy in the year 1946.

They also introduced the audience to the first ever soap opera named The Puddle Family and the term soap opera was coined because the brand sponsored it.


The rise of P&G

Since its inception, the brand stretched out its product offerings to incorporate toothpaste, espresso, baking mixes and tea. Gradually with time, the brand Procter and Gamble showcased items in a few significant areas.

The major areas were as follows : Professionally prescribed drugs, stomach related guides, mouthwashes, toothbrushes, and toothpastes were kept under health and wellness sector. The cleaning items, cleansers, paper towels, espresso, and nourishments were kept under house and home section. 

Scents, antiperspirants, beauty products, shaving supplies, and hair styling were kept under the personal and beauty products. Diapers and tissue papers, purging items, and creams were kept under the baby and family section. They also had pet products which they kept under the pet care section. 

The organization has for some time been one of the main American national sponsors. The brand has been one of the leading free product sample issuers in the nation.


Procter and Gamble Brand Value

As per reports published in the year 2015, the company’s business added up to USD $ 70 billion around the world. The brand witnessed such a massive income because of the fact that it has several billion-dollar brands under its name in the global markets.

In the year 2016, four of the brands under the P&G brand name were positioned inside the best fifteen personal care brands in the world. Gillette was the leader in the list and the brand had a brand value of around USD $ 17 billion.

The brand has established such a brand image and thus the enormous brand value followed. This is mainly because the brand has invested a hefty amount in the advertising of its products at a large scale. In the year 2016, the brand spent roughly USD $ 8 billion in advertising campaigns. 


Procter and Gamble Brand Strategy

1 . Product strategy of P&G

P&G (short for Procter and Gamble) is an American multinational brand which deals in consumer goods. P&G is perhaps one of the largest consumer goods company in the world and it has a worldwide market reach in almost all of the major markets.

P&G has a number of popular products under its brand and the immense popularity of its products has made the brand what it is today. The wide scope of item portfolio of P&G can be described as below: 

  1. Beauty products: Skin and excellence care results of P&G are offered under this section. The brands under this portion are Olay, Safeguard and Old Spice products. P&G offers items such as hair cleanser and hair conditioner under the brand names Pantene and H&S. P&G additionally targets exclusive markets by offering items like Olay products which claims to reverse the aging.

2 . Grooming products: Procter and Gamble offers shave care and machines such as razors, shaving essentials and aftershave lotions. The items are sold under the brand name Gillette which holds the main market position in men grooming products section.

3 . Personal care products: The oral care items are marketed under the brand Oral-B along with the other healthcare products such as Vicks. The items offered under the brand Oral-B are mostly toothpastes and toothbrushes.

4 . Homecare items: P&G offers homecare items under the brands Ariel and Tide. The items starting from cleansers, detergent powders and liquid detergents fall into this category. Procter and Gamble additionally offers home consideration items, for example, deodorizers under the brand named Ambi Pur which is under Sara Lee corporation. 

  1. Child and family care products: P&G offers infant care items such as diapers and infant wipes under the brand Pampers.


2 . Pricing strategy of P&G

P&G follows diverse pricing strategy for various brands under it. The cost of Procter and Gamble products generally relies upon the nature of the item and its market demand. P&G utilizes three distinctive price evaluating techniques in order to gain a substantial revenue and get hold of a greater market share.

P&G follows a variety of pricing strategies. The pricing strategies are modelled on the major factors such as the price of the product by the competitors and the demand of the product in the market. 

The brand has a separate pricing strategy when it comes to entering a new market. The brand will set the prices of the products at a lower rate so that the products and the sales are not affected by the competition of the target markets.

The brand has another special pricing policy which is targeted to the customers who can afford the premium product range. The brand sets a higher price range for the premium products.



3 . Distribution strategy of P&G

The brand has established a distribution strategy so that it can cater the ever-growing market. P&G items contacts a wide crowd through retail stores, physicist shops, retail outlets and general stores. 

DHL is the messenger specialist co-op of P&G items that guarantees strategic proficiency. The items are utilized by shoppers as well as devoured in enormous sums by organizations, for example, by various hotels and so on. 

There are approved vendors that takes into account the requirements of these business and gives them P&G items in a large amount. 

The items are additionally sold through P&G websites and this facility is gradually expanding to most of the major markets around the world.



4 . Advertising strategy of P&G

P&G promotes its brands and products through various marketing and advertising strategies such as direct marketing, public relations and personal selling. Procter and Gamble uses television advertisements, print media and online media to promote the brand through advertisements.

The brand has roped in many celebrities for its product promotions. It has capitalized on internet marketing by launching its own website and it serves as the place where a consumer can find information about the products and also purchase the products.

The company uses direct marketing to sell its products to its corporate consumers. Personal selling is applied when a new brand or a new product of an existing brand enters the market. P&G gives sponsorships for various TV shows and events under its public relations activities.



P&G has come a long way since its inception and it has made its spot among the largest consumer goods brands in the world. In spite of the tough competition in the US markets and the global markets, the brand has managed to build a brand image which speaks for itself. P&G has become a global household name and has paved the future market for new brands to pop up.

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