Proctor and Gamble
Procter and Gamble Case Study
An insight on why P&Gs logo change in the 1980s was the right move
[pic]
By:
Anvesh Saxena-02
Sameer- 04
Rajat Aggarwal-06
Alex K-08
Arun Chopra-10
Section B-PGDM General 2011-13
The case in brief
• Rumours of P&G involvement in Satanism emerge in the 1970s.
• Came in two cycles. 1981-82 and 1984-85
• Rumours surfaced immediately after P&G introduced the tool free no. system to address customer complaints
• First rumour claimed that the company was owned by the Church of Satan because the logo of P&G that was more than a 100 years old portrayed a half moon and 13 stars symbolising Satanism.
• By 1981 a second rumour circulated which claimed that John Smale, President & CEO had appeared on the Phil Donahue Show or a similar one and claimed that he was a member of the Church of Satan.
• Toll free lines were flooded with retailers and customers and the sales were declining.
• P&G sent fact sheets clarifying their stand to 48,000 churches in Southern USA and also sought the aid of clergy to support them
• They also obtained statements form TV channels vouching for the company through a concentrated effort by the PR team
• The rumours reduced subsequently but then there was another sudden spurt by late 1984 and then tripled in October
• These claims came from around the country and P&G sent out media information kits explaining the history of the logo
• A security team was engaged to trace the rumours source and pattern, even threatening to sue those spreading the story.
• By 1985 the problem had gotten out of control and P&G were forced into a position where they had to change to logo.
• Experts believed that it was the right decision although hundreds of thousands of dollars were spent on squashing the rumour and convincing the customers and retailers
• Finally, although the company lost an 100 year old heritage but it has
An insight on why P&Gs logo change in the 1980s was the right move
[pic]
By:
Anvesh Saxena-02
Sameer- 04
Rajat Aggarwal-06
Alex K-08
Arun Chopra-10
Section B-PGDM General 2011-13
The case in brief
• Rumours of P&G involvement in Satanism emerge in the 1970s.
• Came in two cycles. 1981-82 and 1984-85
• Rumours surfaced immediately after P&G introduced the tool free no. system to address customer complaints
• First rumour claimed that the company was owned by the Church of Satan because the logo of P&G that was more than a 100 years old portrayed a half moon and 13 stars symbolising Satanism.
• By 1981 a second rumour circulated which claimed that John Smale, President & CEO had appeared on the Phil Donahue Show or a similar one and claimed that he was a member of the Church of Satan.
• Toll free lines were flooded with retailers and customers and the sales were declining.
• P&G sent fact sheets clarifying their stand to 48,000 churches in Southern USA and also sought the aid of clergy to support them
• They also obtained statements form TV channels vouching for the company through a concentrated effort by the PR team
• The rumours reduced subsequently but then there was another sudden spurt by late 1984 and then tripled in October
• These claims came from around the country and P&G sent out media information kits explaining the history of the logo
• A security team was engaged to trace the rumours source and pattern, even threatening to sue those spreading the story.
• By 1985 the problem had gotten out of control and P&G were forced into a position where they had to change to logo.
• Experts believed that it was the right decision although hundreds of thousands of dollars were spent on squashing the rumour and convincing the customers and retailers
• Finally, although the company lost an 100 year old heritage but it has
References: Wikipedia – Procter and Gamble, God Bless America