Innovation and technology drive P&G's multi-billion dollar business 
candles to the Union armies during the Civil War in 1862, built a new factory that was
technologically advanced and environmentally friendly for its employees in 1886, and
pioneered profit sharing programs in 1887 to give employees ownership in the company.
Although P&G discontinued candle manufacturing in the 1920s when the electric light
bulb was invented, the company had innovated in many product categories. According to
the website 'Innovation is P & G's Life Blood', the number of 'firsts' include Ivory in
1879 (first inexpensive white soap equal to high-quality imported alternatives), Crisco in
1911 (first all-vegetable healthier shortening), Dreft in 1933 (first synthetic household
detergent), Drene in 1934 (first detergent shampoo), Tide in 1946 (first heavy-duty
laundry detergent), Crest in 1955 (first toothpaste to prevent tooth decay), and Comet in
1956 (first scouring cleanser with bleach).
Continuing the innovations between the 1960s and 1990s, P&G introduced Head &
Shoulders in 1961 (first 'please to use' anti-dandruff shampoo), Pampers in 1961 (first
affordable mass-marketed disposable diaper), Ariel in 1967 (first major laundry detergent
with enzymes), Pringles in 1968 (first stackable potato snack), Bounce in 1972 (first
dryer-added fabric softener), Dawn in 1972 (first superior grease-cutting dishwashing
liquid), LUVS in 1976 (first contour-shaped diaper), Always in 1983 (first feminine
protection product with an innovative dry-weave top sheet), Crest Tartar Control in 1985
(first toothpaste clinically proven to reduce tartar buildup), Pert Plus in 1986 (first two-
in-one shampoo and conditioner), Ultra Pampers in 1986 (first to reduce diaper thickness
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Chapter 5 - The technology environment and contemporary environmental variables Copyright Pearson Australia (a division of Pearson Australia Group Pty Ltd) - 9781442527720/Fletcher/International Marketing/5e
by 50%), Tide with bleach in 1988 (first North American detergent with activated
bleach), and Pantene Pro-V in 1992 (first pro-vitamin penetrating shampoo).
In 1995, P&G became the first fast moving consumer goods company to receive the U. S.
National Medal of Technology and Innovation, the highest honour for technological
achievement among America's leading innovators. The citation read: 'For creating,
developing and applying advanced technologies to consumer products which have
strengthened the American economy while helping to improve the quality of life for
Not resting on its laurels, P & G continued the innovation tradition. It launched Febreze
in 1996 (first fabric refresher), Swiffer in 1998 (first disposable duster with electrostatic
cloth), Actonel in 2000 (first faster-acting treatment for osteoporosis), Crest Whitestrips
in 2002 (first in-home teeth whitening system), Naturella in 2002 (first use of chamomile
in feminine pads), IAMS in 2002 (first pet food formula using natural minerals to block
tartar buildup), Pur Purifier of water packets in 2003 (first and only in the world), Olay
Regenerist in 2003 (new technology anti-aging moisturizer), Pampers Baby Stages of
Development in 2004 (first diaper customized for baby's stages of growth and
development), Tide Coldwater in 2005 (superior cleaning laundry detergent that saves
energy), Gillette Fusion in 2005 (first razor with six blades), Crest Pro-Health toothpaste
in 2006 (first toothpaste to protect routinely checked dental areas and freshen breath),
Braun Pulsonic in 2007 (first self-cleaning electric razor), Always Infinity in 2008 (new
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material innovation that absorbs ten times its weight), Tide Total Care in 2008
(innovative combination of beauty care products that keeps clothes fresh-looking after 50
washes), Clairol Perfect 10 in 2008 (first permanent 10-minute hair color technology that
speeds and softens the process), and Ariel Excel Gel in 2009 (concentrated cold-water
P&G was also a leader in marketing and communicating its brands. It advertised Ivory
Soap nationally in 1882; invested in a product research laboratory in 1890; advertised the
Ivory Lady in colour in Cosmopolitan Magazine in 1896; created in 1915 the first
coordinated charitable community campaign that later became known as the United Way;
sold directly to retailers in 1919 when wholesalers had caused uneven production and
worker layoffs; sponsored cooking shows on network radio in 1923; conducted database
market research with consumers in 1924; introduced in 1931 a brand management system
with specialised marketing strategies for each brand; used radio soap operas for its brand
advertising in 1932; advertised Ivory Soap during the first televised baseball game in
1939; formalised consumer connections with a Consumer Relations Department in 1941;
started in 1952 the P & G global fund to improve the lives of children; and secured
'unprecedented endorsement by the American Dental Association' for its Crest fluoride
In order to continue innovating, P & G mandates that 50% of product innovation should
be through collaboration with industry partners and consumers under its new 'Connect
and Develop' model. In 2003, the company signed a 10-year US$400 million deal for
Book: International Marketing 5e by Fletcher
Chapter 5 - The technology environment and contemporary environmental variables Copyright Pearson Australia (a division of Pearson Australia Group Pty Ltd) - 9781442527720/Fletcher/International Marketing/5e
IBM to provide human resource services such as benefits administration, compensation
planning, data management, payroll processing, and relocation services - thus freeing up
time for P & G to focus on product innovation. From 2007, P & G began the process of
setting up Cisco video collaboration studios in selected customer and partner sites, thus
saving on travel cost and time plus increasing decision making to accelerate the
Connecting with consumers in its environment has been a key P & G goal over the years.
P & G has used social networking sites to create online forums on issues such as breast
cancer and careers, with the objective of understanding the wants and needs of women.
The 2010 goal is to increase its four billion customers on Facebook to five billion
(Pringles has nearly three million global fans) with each P & G brand having a
'meaningful presence' on the popular social media site. P & G has set up a Silicon Valley
office to help develop social networking systems.
Keeping itself ahead of the competition, P & G announced in January 2010 that it would
launch an online store as a 'learning lab' to understand more about buying habits of
customers who buy key brands. Although P & G has been selling products online through
retailers such as Wal-Mart, the 'learning lab' would facilitate sharing of consumer
While P & G is a consumer packaged goods company, it has been described as an
Book: International Marketing 5e by Fletcher
Chapter 5 - The technology environment and contemporary environmental variables Copyright Pearson Australia (a division of Pearson Australia Group Pty Ltd) - 9781442527720/Fletcher/International Marketing/5e
innovative technology-driven company. Such a corporate mission would obviously help
P & G to grow more billion-dollar brands. Among those 20 half-billion dollar brands
lining up to join the billion-dollar rank are Dolce & Gabbana, SK-II, Swiffer Dusters,
Questions (answers contained on last page of document.) 
Cisco. (2008). "Procter & Gamble revolutionizes collaboration with Cisco TelePresence."
http://www.cisco.com/web/about/ac79/docs/wp/Procter_Gamble_Final.pdf.
Cordeiro, A. and E. Byron (2010, 15 January). Procter & Gamble to test online store to
study buying habits. The Wall Street Journal.
Frauehelm, E. (2003, 10 September). IBM pins down Procter & Gamble deal. cnet news.
Huston, L. and N. Sakkab. (2006, 20 March). "P & G's new innovation model."
Retrieved 16 February, 2010, from http://hbswk.hbs.edu/archive/5258.html.
Marketing Vox. (2007, 9 January). "P&G creating social networking sites for women."
Retrieved 16 February, 2010, from http://www.marketingvox.com/pg-creating-social-
Neff, J. (2010, 26 January). "Facebook finally lands 'The world's biggest marketer'."
Retrieved 18 February, 2010, from http://www.businessinsider.com/pg-ready-to-pay-
very-big-numbers-to-have-a-presence-on-facebook-2010-1.
P & G. (2008). "Innovation is P & G's Life Blood." Retrieved 17 February, 2010, from
http://www.pg.com/en_US/downloads/media/Fact_Sheets_Innovation.pdf.
Book: International Marketing 5e by Fletcher
Chapter 5 - The technology environment and contemporary environmental variables Copyright Pearson Australia (a division of Pearson Australia Group Pty Ltd) - 9781442527720/Fletcher/International Marketing/5e
P & G. (2010). "Designed to lead." Retrieved 16 February, 2010, from
http://www.annualreport.pg.com/annualreport2009/brands/index.shtml
P & G. (2010). "A company history: 1837." Retrieved 16 February, 2010, from
http://www.pg.com/translations/history_pdf/english_history.pdf.
SGI. (2003). "Success story." Retrieved 12 February, 2010, from
USPTO. (1995). "Recipients 1995." Retrieved 16 February, 2010, from
http://www.uspto.gov/about/nmti/recipients/1995.jsp.
Book: International Marketing 5e by Fletcher
Chapter 5 - The technology environment and contemporary environmental variables Copyright Pearson Australia (a division of Pearson Australia Group Pty Ltd) - 9781442527720/Fletcher/International Marketing/5e
Questions and answers 
4. How has Procter & Gamble innovated in marketing and advertising? Source: http://wps.pearsoned.com.au/wps/media/objects/10810/11070031/Innovation_and_technology_drive_Procter_Gamble_s_multi-billion_dollar_business.pdf
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