Introduction
Buying behavior in the US laundry care market was impacted by the economic downturn, as greater emphasis was placed on obtaining value for money. Procter & Gamble looked to capitalize on this through the launch of Tide Basic and re-positioning of Cheer brightCLEAN as a value brand. The Dial Corporation looked to emphasize value through enhanced efficacy benefits with its Purex brand
Features and benefits
Highlights
Greater emphasis on obtaining value doesn’t necessarily equate to purchasing the cheapest priced product, and this is ultimately why Tide Basic failed. Instead, perceptions of value are enhanced through satisfying factors such as efficacy and convenience at a satisfactory price point – which is why Purex and Cheer brightCLEAN have fared better
Leading brands recognize the threat to market share from cheaper competitors and that strategies are needed to reduce switching intentions. The key lesson is that leading brands are better differentiating from cheaper competitors through leveraging traits such as quality and convenience, rather than launching cheaper, less effective, offerings
Your key questions answered
Buying behavior in the US laundry care market was impacted by the economic downturn, as greater emphasis was placed on obtaining value for money. Procter & Gamble looked to capitalize on this through the launch of Tide Basic and re-positioning of Cheer brightCLEAN as a value brand. The Dial Corporation looked to emphasize value through enhanced efficacy benefits with its Purex brand
Features and benefits
- Enhance brand desirability by understanding what factors have the most influence on shopping behavior in the market
- Best understand how to enhance perceptions of value and respond to the threat of cheaper priced competitors
- Understand the key challenges for Tide, Cheer brightCLEAN and Purex in a post-recession market
Highlights
Greater emphasis on obtaining value doesn’t necessarily equate to purchasing the cheapest priced product, and this is ultimately why Tide Basic failed. Instead, perceptions of value are enhanced through satisfying factors such as efficacy and convenience at a satisfactory price point – which is why Purex and Cheer brightCLEAN have fared better
Leading brands recognize the threat to market share from cheaper competitors and that strategies are needed to reduce switching intentions. The key lesson is that leading brands are better differentiating from cheaper competitors through leveraging traits such as quality and convenience, rather than launching cheaper, less effective, offerings
Your key questions answered
- What are the key product traits that influence buying behavior in the US laundry care market?
- How did the recession impact buying behavior in the US laundry care market?
- How can national brands in the US laundry care market respond to the threat of private label?
- What are the dangers of releasing a fighter brand?
OVERVIEW
Catalyst
Summary
ANALYSIS
The recession brought about changes in consumption behavior in the US laundry care market, which resulted in major manufacturers adjusting their strategies
The US laundry care market is currently in a period of stagnation
The recession brought about changes in consumption patterns in the laundry care market
This change in buying behavior prompted major brands to re-assess their strategies in order to offer better value for money
Tide Basic looked to stave off the threat of private label, but the product failed
Tide Basic was removed from shelves a year after launch, with P&G saying that the Tide brand's future activity would be centered around improved efficacy
Cheer brightCLEAN: capturing market share through being repositioned as a value brand
[Missing title]
P&G will need to remain mindful of the threat from cheaper alternatives as upstream, supply-side market developments will cause future price rises
Purex: enhancing perceptions of value through efficacy and simplicity
Purex is looking to capitalize on the success of Complete 3-in-1 with the launch of Complete Crystals Softener
Conclusion and implications: the key message for laundry care manufacturers is that even in times of reduced financial wellbeing, consumers are willing to trade-up to products that offer enhanced efficacy benefits
APPENDIX
Case study series
Methodology
Secondary sources
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
Catalyst
Summary
ANALYSIS
The recession brought about changes in consumption behavior in the US laundry care market, which resulted in major manufacturers adjusting their strategies
The US laundry care market is currently in a period of stagnation
The recession brought about changes in consumption patterns in the laundry care market
This change in buying behavior prompted major brands to re-assess their strategies in order to offer better value for money
Tide Basic looked to stave off the threat of private label, but the product failed
Tide Basic was removed from shelves a year after launch, with P&G saying that the Tide brand's future activity would be centered around improved efficacy
Cheer brightCLEAN: capturing market share through being repositioned as a value brand
[Missing title]
P&G will need to remain mindful of the threat from cheaper alternatives as upstream, supply-side market developments will cause future price rises
Purex: enhancing perceptions of value through efficacy and simplicity
Purex is looking to capitalize on the success of Complete 3-in-1 with the launch of Complete Crystals Softener
Conclusion and implications: the key message for laundry care manufacturers is that even in times of reduced financial wellbeing, consumers are willing to trade-up to products that offer enhanced efficacy benefits
APPENDIX
Case study series
Methodology
Secondary sources
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
