P&G Plans Bargain Version of Tide

by Christopher Freeburn | September 4, 2013 10:18 am

tide185 P&G Plans Bargain Version of Tide[1]Sources tell the Wall Street Journal that Procter & Gamble is discussing the launch of a new discount liquid detergent[2] with retailers.

The new product would be a lower-priced version of its popular Tide laundry detergent, possibly called Tide Simple. It would mark the second time in several years that Procter & Gamble has attempted to launch a bargain brand for Tide.

In 2010, the company cancelled plans to launch Tide Basic, which had been in development for more than a year. In research, Procter & Gamble found that consumers confused the discount brand with the higher-priced flagship detergent. Consumers also expressed dissatisfaction with the bargain brand’s cleaning performance.

Fears that a discount version of Tide could cannibalize regular Tide sales remain. However, with a lingering sluggish economy, many consumers have become budget-conscious and a discount version of the popular detergent could find a ready market. Recent Nielsen market research data showed that only 29% of U.S. households purchased premium brands over the past year, compared to 41% of homes that bought discount laundry detergents.

Procter & Gamble generates $4.5 billion annually from detergent sales in North America. Introducing a lower-priced version of Tide could increase pricing pressure in the segment, possibly igniting a price war with other manufacturers.

Tide isn’t only popular with consumers. The detergent has become a sort of underground currency among thieves[3] due to the ease with which it can be exchanged for cash.

Shares of Procter & Gamble slipped slightly in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/08/tide185.jpg
  2. the launch of a new discount liquid detergent: http://news.google.com/news/url?sr=1&sa=t&ct2=us%2F0_0_s_0_0_t&usg=AFQjCNG2QcnblYlTOXzhNp0clojMDURMag&did=2dbb3e313844b20b&sig2=DJhGn3n5i-TFuHkEHtBQVQ&cid=43982159247211&ei=RUAnUrDVCJScgAeTqgE&rt=STORY&vm=STANDARD&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424127887323932604579053433586299194.html
  3. a sort of underground currency among thieves: http://investorplace.com/2013/06/tide-detergent-is-liquid-gold-for-thieves/

Source URL: http://investorplace.com/2013/09/pg-plans-bargain-version-of-tide/
Short URL: http://invstplc.com/1nxhqzN