The archive · Small Business & Money · Product decision · 1954–1965
Play-Doh: Kutol's dying wallpaper-cleaner business is reborn as a children's toy
A Cincinnati soap firm losing its wallpaper-cleaner market puts the same dough in a toy can — schools buy it first, Captain Kangaroo takes it national.
Kutol Products
What it had to solve
Kutol Products of Cincinnati had become the world's largest wallpaper-cleaner manufacturer, but in the 1950s cleaner heating and washable wallpaper killed demand. Joseph McVicker was trying to save the company when his sister-in-law Kay Zufall, a nursery school teacher, tested the dough with her students and suggested selling it as a toy.
How it works
Play-Doh began as a way to clean walls. Kutol Products, founded in Cincinnati in 1912, became the world's largest manufacturer of wallpaper cleaner — a soft, pliable putty that rolled coal soot off wallpaper without tearing it. That business depended on coal-heated homes, and when American households switched to oil, gas and electricity in the 1950s, demand collapsed and the firm's future looked bleak.
The rescue came from outside the company. Joseph McVicker's sister-in-law, Kay Zufall, ran a nursery school in Dover, New Jersey, and had read that wallpaper cleaner could be used for modeling projects. She tested the nontoxic dough with her students, who loved shaping it, and she urged McVicker to market it as a toy — even suggesting the name Play-Doh when his first attempt, Kutol's Rainbow Modeling Compound, struck her as weak.
McVicker stripped the detergent out of the formula, added food coloring and a mild almond scent, and in 1956 set up a new subsidiary, Rainbow Crafts, to sell it. The first customers were schools, buying gallon cans; department stores Woodward & Lothrop, Macy's and Marshall Field's followed. The national breakthrough came on television: Bob Keeshan, host of the children's show Captain Kangaroo, talked about Play-Doh twice a week in 1958 in exchange for 2 percent of sales, and the product took off.
The pivot was permanent. Sales climbed toward $3 million a year by the early 1960s, Rainbow Crafts was sold to General Mills in 1965, and Hasbro has owned the brand since 1991. Hasbro reports more than 3 billion cans sold since 1956 — more than 700 million pounds of dough — and the National Toy Hall of Fame inducted Play-Doh in 1998.
Why it lands
- The factory, formula and equipment were already sunk costs — repurposing them turned a stranded asset into a new product line instead of writing it off.
- The customer insight came from a real user: a teacher who saw the material's clean, non-messy, reusable qualities that clay lacked for young hands.
- Name and positioning did the work: 'Play-Doh' turned a cleaning compound into an invitation, and selling to schools seeded demand before retail followed.
- An ownership stake replaced an unaffordable ad budget, giving the toy a trusted on-air advocate paid only when sales happened.
What it did
Sales soared after the TV appearances and neared $3 million a year by the early 1960s. General Mills bought Rainbow Crafts for $3 million in 1965; Hasbro has owned the brand since 1991 and counts more than 3 billion cans sold since 1956.
What you can take
When a product's old job disappears, the material may still serve a new customer — find that user, then rebuild the name, packaging and channel around them instead of inventing something new.
Since then
Play-Doh outgrew its cleaning origins completely. The Play-Doh Fun Factory press arrived in 1960; Rainbow Crafts was bought by General Mills in 1965 and the brand later moved through Tonka to Hasbro, which has owned it since 1991. Hasbro says more than 3 billion cans have been sold since 1956, the dough entered the National Toy Hall of Fame in 1998, and in 2018 the company trademarked the compound's distinctive smell. The original wallpaper cleaner remains a footnote — an obsolescent product that found a second life as one of the best-known toys of the twentieth century.
Sources
- The Accidental Invention of Play-Doh
- The Happy Accident That Turned a Failed Wallpaper Cleaner Into Play-Doh
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