October 25, 2007
P&G Goes Against Tide with Laundry-Free Store
The folks that bring us Tide are engaged in a single-store test with a host of laundry products that do their job (with one exception) sans the washer and dryer.
Procter & Gamble has opened its own retail store under the Swash banner to sell a line of five products under the same name.
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| www.swashitout.com |
The store located near Ohio State University in Columbus only sells five items, which range in price from $3 to $6. The product include a de-wrinkle spray, lint roller, dryer sheet, stain removal pen and anti-odor spray.
P&G said it developed the product after research suggested that some consumers such as college students would like the means to wear slightly soiled clothes without having to go through the whole washing and drying process.
“It’s funny, that’s one of the things we’ve definitely thought about,” Ross Holthouse, a spokesperson for P&G, told The Columbus Dispatch. “We don’t see this as a replacement for washing your clothes, but it’s a direct response to consumer feedback.”
Many of the items such as the stain removal pen and de-wrinkling spray are similar to items P&G sells under other brand names. Jennifer Halterman, a senior consultant for TNS Retail Forward, said the key with this line is the focus the Swash brand has on the college age demographic.
The brand’s website, swashitout.com, and in-store environment that includes a lounge area with free coffee, computers and video games, are very college student friendly.
“This is a really unique marketing initiative and a way to capture interest,” Ms. Halterman said.
Manuel Farmer, manager of Bright and Clean Laundry, in Columbus can see college students going for the Swash products. “As long as their clothes smell good, they’re OK,” he told the Dispatch.
Discussion Questions: What do you think of P&G’s test introduction of the Swash brand to college students? Do you see more of this type of testing taking place in the future? What does this give P&G that it might not get from following the traditional test pattern where the product line would go into retail stores in a given market?
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Procter & Gamble can use the Swash store as a continuous focus group, testing a coordinated alternative marketing approach. The Swash concept brings several complementary products together as a “system.” Sort of like Johnson & Johnson selling a first aid kit rather than separate branded items for bandages, ointments, gauze, etc. Before investing in a new approach, risk is always reduced by market research. Procter & Gamble can get a tremendous amount of data in a very short time using a pop-up store next to a busy college campus.
Many companies have used the test store concept to play with product and marketing ideas, so P&G’s approach is nothing new. However, it does highlight the importance of creative testing in the current environment. Focusing on the college student demographic (the lead in group for those who will buy P&G products), determining what clicks with this demographic group, and playing with some marketing ideas in a low cost/low risk way all point to the need to get close to the consumer and involve them in your development processes.
To me, the news isn’t the market research method–it’s retail by P&G. P&G made a similar move with an Oil of Olay pop-up store to test product lines. Charmin’s public toilets in Times Square last Christmas were a tutorial in promotional pop-up branding.
In other categories, we are seeing CPG taking the bull by the horns–not playing hapless victim to retailers’ whims. Bacardi has own-branded bars in airports; Heineken is offering mobile retailing at events.
The headline here is: Watch out Retailers–CPG is coming.
I’m with Liz Crawford on this. Hershey’s has their own retail outlets, as well.
The larger issue here is that there are 20 major global CPG brands that supply 20 major global retailers. Those 400 relationships will define the direction of both brands and retailers in the years ahead (as they have in the past.) A major difference will be an acceleration to active vs. passive retailing.
Everyone wants everyone else to “stay inside their own lines.” However, own-label is only one major facet of these relationships. The retailers have the power of “ownership” of their own customers. However, the brands have the power of transcending any single retailer, no matter how powerful. So coopetition continues.
This is a brilliant, very targeted approach to an untapped target audience and market. Importantly, the new brand name will have an immediate support factor given this test outlet is built by P&G. Interestingly, P&G took the opposite brand approach with its Mr. Clean car wash outlet market test. Definitely, P&G will learn from both testing entities.
Just brilliant strategic thinking, an “outside-the-box” approach. No restrictions on being innovative; from this once very structured consumer packaged goods corporation.
Other companies and industries should note! Hmmmmmmmmm
Re Swash, P&G’s car wash units and The Future: P&G will get additional valuable data from this and its similar ventures. They always do! But Swash could be more about The Future than just additional current data. P&G’s future growth may require new and different fields to conquer. Its products and services continues to get modified, improved and/or revised to increase their market shares up to lofty and perhaps point-of-no-return levels. What then is the next world P&G might be trying to conquer? Are the Bells of Retail ringing louder inside of P&G’s twin towers in Cincinnati?
One of my college roommates wore only cheap white dress shirts (with pants, of course, mostly). This was the 60s, and white dress shirts were OK. He’d wear a brand-new shirt for a day or two depending on its aroma, throw it on the floor in the corner, and select another. He never did laundry. When he ran out of shirts, he’d buy another stack of a dozen for a few bucks. Eventually, he’d throw the shirts out. We had a free washer and dryer in the house. Students will do anything to avoid laundry duties. And, for those who believe that the “smell test” of previously-worn garments originated with “Animal House,” please understand that it began well before that.
I’ve never been a fan of surface solutions. Don’t apply paint to the rusty parts of an old car or the rotten parts of an old house. Don’t go along to get along. And squirting stuff on yourself or your clothes is no substitute for personal hygiene. But we do it, and we do it all the time. Makeup over skin problems. It’s just the way we are. If it’s convenient in the larger picture for a student to take a shortcut to be socially acceptable during times when they’re attending class or studying in the library, what’s the problem? And when they finally do clean up (a kegger comes to mind), the improvement will be noticeable and, in a weird way, attractive.
This P&G initiative won’t last long, but it’ll be interesting.
This is a great way to determine to move beyond the focus group without going to a full test market in traditional retail channels. The expenses associated with just one store will likely be far less than listing fees at a couple of retailers.
The result from this should confirm if the target market–youth–are interested in only sort of washing their clothes. If they’re correct, it could lead to a new brand with a broad line of products for regular retail channels, or a new brand available only online.
I do not expect that P&G will get into the full blown retail business, but be prepared for them offer new brands outside of traditional channels.
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Procter & Gamble can use the Swash store as a continuous focus group, testing a coordinated alternative marketing approach. The Swash concept brings several complementary products together as a “system.” Sort of like Johnson & Johnson selling a first aid kit rather than separate branded items for bandages, ointments, gauze, etc. Before investing in a new approach, risk is always reduced by market research. Procter & Gamble can get a tremendous amount of data in a very short time using a pop-up store next to a busy college campus.
Many companies have used the test store concept to play with product and marketing ideas, so P&G’s approach is nothing new. However, it does highlight the importance of creative testing in the current environment. Focusing on the college student demographic (the lead in group for those who will buy P&G products), determining what clicks with this demographic group, and playing with some marketing ideas in a low cost/low risk way all point to the need to get close to the consumer and involve them in your development processes.
To me, the news isn’t the market research method–it’s retail by P&G. P&G made a similar move with an Oil of Olay pop-up store to test product lines. Charmin’s public toilets in Times Square last Christmas were a tutorial in promotional pop-up branding.
In other categories, we are seeing CPG taking the bull by the horns–not playing hapless victim to retailers’ whims. Bacardi has own-branded bars in airports; Heineken is offering mobile retailing at events.
The headline here is: Watch out Retailers–CPG is coming.
I’m with Liz Crawford on this. Hershey’s has their own retail outlets, as well.
The larger issue here is that there are 20 major global CPG brands that supply 20 major global retailers. Those 400 relationships will define the direction of both brands and retailers in the years ahead (as they have in the past.) A major difference will be an acceleration to active vs. passive retailing.
Everyone wants everyone else to “stay inside their own lines.” However, own-label is only one major facet of these relationships. The retailers have the power of “ownership” of their own customers. However, the brands have the power of transcending any single retailer, no matter how powerful. So coopetition continues.
This is a brilliant, very targeted approach to an untapped target audience and market. Importantly, the new brand name will have an immediate support factor given this test outlet is built by P&G. Interestingly, P&G took the opposite brand approach with its Mr. Clean car wash outlet market test. Definitely, P&G will learn from both testing entities.
Just brilliant strategic thinking, an “outside-the-box” approach. No restrictions on being innovative; from this once very structured consumer packaged goods corporation.
Other companies and industries should note! Hmmmmmmmmm
Re Swash, P&G’s car wash units and The Future: P&G will get additional valuable data from this and its similar ventures. They always do! But Swash could be more about The Future than just additional current data. P&G’s future growth may require new and different fields to conquer. Its products and services continues to get modified, improved and/or revised to increase their market shares up to lofty and perhaps point-of-no-return levels. What then is the next world P&G might be trying to conquer? Are the Bells of Retail ringing louder inside of P&G’s twin towers in Cincinnati?
One of my college roommates wore only cheap white dress shirts (with pants, of course, mostly). This was the 60s, and white dress shirts were OK. He’d wear a brand-new shirt for a day or two depending on its aroma, throw it on the floor in the corner, and select another. He never did laundry. When he ran out of shirts, he’d buy another stack of a dozen for a few bucks. Eventually, he’d throw the shirts out. We had a free washer and dryer in the house. Students will do anything to avoid laundry duties. And, for those who believe that the “smell test” of previously-worn garments originated with “Animal House,” please understand that it began well before that.
I’ve never been a fan of surface solutions. Don’t apply paint to the rusty parts of an old car or the rotten parts of an old house. Don’t go along to get along. And squirting stuff on yourself or your clothes is no substitute for personal hygiene. But we do it, and we do it all the time. Makeup over skin problems. It’s just the way we are. If it’s convenient in the larger picture for a student to take a shortcut to be socially acceptable during times when they’re attending class or studying in the library, what’s the problem? And when they finally do clean up (a kegger comes to mind), the improvement will be noticeable and, in a weird way, attractive.
This P&G initiative won’t last long, but it’ll be interesting.
This is a great way to determine to move beyond the focus group without going to a full test market in traditional retail channels. The expenses associated with just one store will likely be far less than listing fees at a couple of retailers.
The result from this should confirm if the target market–youth–are interested in only sort of washing their clothes. If they’re correct, it could lead to a new brand with a broad line of products for regular retail channels, or a new brand available only online.
I do not expect that P&G will get into the full blown retail business, but be prepared for them offer new brands outside of traditional channels.