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Wednesday, January 07, 2009
1890-1945 A company built on innovation

By 1890, P&G was selling more than 30 different types of soap, including Ivory. Fueled by innovative advertising, including full-color print ads in national magazines, consumer demand for P&G soaps continued to grow. To meet this increasing demand, the Company began expanding its operations outside Cincinnati, with a plant in Kansas City, Kansas, and then outside the United States, with a plant in Ontario, Canada. As each new plant was opened, plans were soon underway for another. Its research laboratory was as busy as its plants. Innovative new products were rolled out one after another--Ivory Flakes, a soap in flake form for washing clothes and dishes... Chipso, the first soap designed for washing machines... Dreft, the first household synthetic detergent... and the first all-vegetable shortening that changed the way America cooked, Crisco. Perhaps most important, these innovations were being driven by more than research and development for its own sake. They were based on in-depth understanding of consumer needs, gathered through P&G's pioneering approach to market research. And they were marketed through equally-innovative techniques, including radio "soap operas," product sampling and promotional premiums. By 1945, P&G had become a nearly $350 million company. Its products were popular throughout the United States and Canada--and the Company had taken its first step toward developing an overseas business, with the acquisition of Thomas Hedley & Co., Ltd., in England. After 108 years in business, P&G was positioned for dramatic growth.

1890 After running the Company as a partnership for 53 years, the partners incorporated to raise additional capital for expansion. William Alexander Procter, son of the founder, was named first President. P&G set up an analytical lab at Ivorydale to study and improve the soap-making process. It was one of the earliest product research labs in American industry.

1896 P&G's first color print advertisement--an ad for Ivory--appeared in Cosmopolitan magazine picturing this "Ivory Lady."

1904 In order to meet the demands of growing national markets, P&G began building outside of Cincinnati for the first time. This increased capacity and improved distribution of products to customers.

1907 William Cooper Procter became the head of the Company following the death of his father, William Alexander Procter.

1911 P&G introduced Crisco, the first all-vegetable shortening. Crisco provided a healthier alternative to cooking with animal fats and was more economical than butter.

1915 The Company built its first manufacturing facility outside the United States, in Canada. Employing 75 people, the plant produced Ivory soap and Crisco.

1917-1918 The Chemicals Division was established to formalize research procedures and develop new products. The Company began to actively recruit researchers.

1919 William Cooper Procter continued his efforts to institutionalize the relationship between the Company and its employees. The articles of incorporation were revised to include the directive that the "interests of the Company and its employees are inseparable."

1919-1920 Seasonal purchases of P&G products by wholesalers led to uneven production needs and layoffs at Ivorydale. In response, P&G announced a plan to sell directly to retailers and hired 450 salesmen. This change stabilized production, reduced employee layoffs, and, in the process, changed the way the grocery trade operated.

1923 Crisco sponsored cooking shows on network radio, placing P&G among the medium's advertising innovators.

1924 A market research department was created to study consumer preferences and buying habits--one of the first such organizations in history.

1926 In response to the growing popularity of perfumed beauty soaps, P&G introduced Camay.

1930 P&G established the first overseas subsidiary with the purchase of Thomas Hedley & Sons Co., Ltd., in England. Fairy Soap was one of Hedley's main products.
William Cooper Procter turned the reins of the Company over to Richard R. Deupree.

1931 P&G's brand management system began to take shape in the late 1920s. In 1931, Neil McElroy, the Company's Promotion Department Manager, created a marketing organization based on competing brands managed by dedicated groups of people. The system provided more specialized marketing strategies for each brand and Procter & Gamble's brand management system was born.

1933 "Ma Perkins," a radio serial program sponsored by P&G's Oxydol soap powder, aired nationally. Its popularity led P&G brands to sponsor numerous new "soap operas." Faithful listeners became faithful buyers of P&G brands at the grocery.
Dreft, the first synthetic detergent developed for household use, was introduced. The discovery of detergent technology laid the groundwork for a revolution in cleaning technology.

   

1934 William Cooper Procter died. He was the last member of the two founding families to run the Company. The Company entered the hair care business with Drene, the first detergent-based shampoo.

1935 The Company expanded its international presence with the acquisition of the Philippine Manufacturing Company--the Company's first operations in the Far East.

1937 P&G celebrated its 100th anniversary. Sales reached $230 million.

1939 Just five months after the introduction of television in the U.S., P&G aired its first TV commercial (for Ivory soap) during the first televised major league baseball game.

1943 The Company created its first division--the Drug Products Division--to sell its growing line of toilet goods.

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