P&G History and BackgroundWilliam Procter and James Gamble founded P&G in 1837. These two men were brothers-in-law, one a soap maker and the other a candle maker . (P&G, 2014) A suggestion from their father-in-law was that these two men should team up and work together, making P&G the billion dollar company it is today. The video here explains the history of this gold standard of business. http://www.pg.com/en_US/company/heritage.shtmlP&G has become the innovator for many major brands, starting with Ivory Soap. P&G boasted that it was the purest soap as well as float soap, which many people were concerned about at that time. P&G put a lot of effort into marketing the soap in local newspapers, on the radio, and in other forms of media. This was a brand's first effort to market with "mass media." (P&G, 2014) P&G also innovated the way other brands began to market their products. P&G saw the opportunity to build a relationship between consumers and the product. As the 1900s progressed, P&G expanded into international markets and purchased another brand of soap called Fairy Soap, in England, which also marketed the soap and which could float. In 1910, P&G began using professional athletes in its advertising. They developed print ads featuring photos and testimonials from some of baseball's best players. (P&G, 2014) It is still a popular way to market products in 2014. In 1939, five months after the introduction of television in the United States, P&G aired its first television commercial for Ivory soap. (P&G, 2014)P&G continued to innovate products consumers wanted when they revolutionized laundry with a new detergent called Tide in 1946. Tide was considered the "washing miracle" by helping to make laundry faster and easier. Only a few...... middle of paper ...... years ago, P&G designed a bargain-priced dish soap called Gain. (Wall Street Journal, 2011) P&G needs and targets the consumer in the United States. P&G said Americans per capita spend about $96 a year on P&G, compared to $4 in other countries. In 2009, P&G adjusted its target audience and marketing plans. (Wall Street Journal, 2011) P&G now divides consumers into three income groups. High-income has generally been the primary product category marketed by P&G in the United States because it is the least price sensitive and most influenced by claims of high product performance. Low-income U.S. consumers grew in size during the recession, then P&G began targeting them more aggressively. As for the third group, P&G does not specifically target lower incomes in the United States, as they represent only a small percentage of the population. (The Wall Street Journal, 2011)