September 4, 2007 • 1:29 pm
Gain laundry detergent became one of Procter & Gamble’s billion-dollar
brands–there are 22 of them–this past fiscal year by taking the unusual tactic
of going after a narrow audience. Just 16% of users account for 88% of sales
volume, P&G says.
The low-priced laundry detergent–launched in
1969–had grown a small following among cost-conscious consumers in the South,
but failed to build nationwide appeal. P&G’s research showed that scent was
a particularly important factor in Hispanic households, so in 1981, it decided
to give Gain one more chance by repositioning it as a heavily fragrant
How P&G Led Also-Ran To Sweet Smell of Success – WSJ.com
Gain was nearly a loss for Procter & Gamble.
The low-priced laundry detergent, launched in 1969, had grown a small following among cost-conscious consumers in the South but failed to build nationwide appeal. With sales dwindling, in 1981 P&G decided to give Gain one more chance by repositioning it as a heavily fragrant detergent.
Touting scent, instead of cleaning performance, was a departure from the long-held formula of laundry marketing. But P&G’s research showed that scent was a particularly important factor in Hispanic households, and it believed a fragrant detergent would draw the growing Hispanic population in the U.S. Emphasizing fragrance also allowed P&G to differentiate Gain from its other laundry brands, including Tide, Cheer and Era — marketed, respectively, for superior cleaning, color protection and stain fighting.
Filed under: African American, Consumer, Fragrance, Hispanics, laundry
Yesterday’s announcement via press release was heavy on the environmental
benefit, which may be the focus of future marketing around the shift, although
the company also will have to spend big bucks to convince consumers that they
are getting as much for their money as they had been.
MediaPost Publications – P&G To Launch Stronger Detergent In Smaller Packages – 05/23/2007
BOWING TO PRESSURE FROM RETAILERS like Wal-Mart to squeeze more product onto shelves, Procter & Gamble is readying an autumn launch of double-strength laundry detergents in packages that are half the regular size.
Starting in the fall, the packaged goods giant will replace all its $4 billion liquid detergents portfolio in North America, which includes such brands as Tide, Gain, Cheer, Era and Dreft. It will start in the southern U.S. and Puerto Rico in September and complete the full conversion by April in the Northeast and Canada.
Filed under: Consumer, CPG, environment, laundry
Laundry detergent makers are facing a challenge: convincing consumers that less really isn’t less when it comes to detergent. Proctor & Gamble is following Unilever’s lead (who was first to market) and rolling out a concentrated fomulation of all of the detergent in its portfolio.
Selling Detergent Bottles’ Big Shrink – WSJ.com
Laundry-detergent brands are about to face a messy marketing challenge: convincing consumers to pay the same old prices for about half the detergent.
By the end of this year, detergent bottles across the board will shrink by almost 50%. That is the result of pressure from powerful retail chains such as Wal-Mart Stores, which are eager to fit more bottles on shelves, and detergent makers’ desire to cut their production costs.
Filed under: advertising, caused based marketing, Consumer, eco-friendly, laundry, living target