March 23, 2009
P&G Looking to Clean Up in Car Wash Biz
It didn’t take too long in the testing process
for Procter & Gamble to
know it was on to something with
its Mr. Clean Performance Car Wash concept.
As an Associated Press (AP) report
points out, the licensed car washes have become a hit with adults and kids
for reasons beyond clean vehicles. Adults get to enjoy free coffee and
watch sports or news on flat-screen televisions. Kids get to move along
with the vehicles and shoot soapsuds at vehicles in the 160-foot wash tunnel.
To date, P&G has secured licenses to
operate in 41 states and has hired Jim Amos, a franchising veteran and
former chairman of the International Franchise Association, to add to its
list of facilities. P&G currently operates two corporately-owned locations in Ohio and has 17 other franchised units
either operating or under development in the Southeastern U.S.
The consumer products giant is making its
push into the car wash business at a time when others are holding back.
Home Depot, which operates car washes alongside gas stations in six of
its store lots, is not looking to expand at the moment.
Home Depot spokesperson Ron Defeo, told AP, "We’re still evaluating the concept."
Donnelly Eurick, executive director of the
Midwest Carwash Association, said P&G’s expansion is contrary to what
is taking place in most of the industry. "This is a very difficult
time to enter the car wash business. It’s an optional service, money is
tight, the future is uncertain," he said.
Justin Bailey, who now manages a Mr. Clean
car wash after running a family-owned operation in Kentucky, told the AP, "You
can tell how strong the brand is by the response. What it took me five
years to accomplish with my car wash, they did here when they opened the
doors."
Discussion Question: What do you think of
P&G’s timing for its Mr. Clean Performance Car Wash concept?
What impact will the Mr. Clean concept have on the fragmented car wash
business? What will the car wash concept mean for the Mr. Clean brand
overall?
BrainTrust
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Discussion Questions
Poll
Living in Cincinnati, I have had the privilege of visiting one of the Mr. Clean locations. As a marketing professional, I love the concept of extending the brand beyond the product platform to a services or lifestyle level. While P&G assuredly did its usual world-class research, my concern is how the consumer value will play out in the long-term, when the newness wears off. The two locations I’ve seen are big, bold, bright but inviting.
The car wash uses a menu-based price system that starts about $14.99 and goes up well over $50 for wax and interior cleaning options. On three visits, my average cost has been $25 for a basic wash, towel dry and ‘quick’ interior detail. In this economy, what is the value of a clean car? Likewise, my average visit has been 10-15 minutes–not a fast drive-through that many people will prefer. Time will tell if enough people will invest the time and money to make this a destination stop.
Even if it takes them a few years to get this going from a franchisee standpoint, this is a good branding move for Mr. Clean and P&G. Who doesn’t love a car wash?! If the brand rolls out D-I-Y car-wash product quickly in the Auto channel–I see it as a missed opportunity and threat for Armor All as well.
Just goes to show the power of brand identity. A trusted brand name will do wonders for almost any business. And if the product itself lives up to the name, you’ve got a winning combination.
And let’s not forget that people like to have clean cars, regardless of the what state the economy is.
Great brand being leveraged correctly. Franchising is still growing in spite of the spate of bankruptcies of individuals. I found their requirements of “Passive ownership not allowed” a key selling point to manage the brand.
As to timing, who can predict when it is right and wrong? The main thing they are trading on is a strong brand and convenience. I still bet that in the right market, they will be very successful.
I would not want to be a competitor in the car wash business right now. While business is tough, as most are today, the fact that people are not buying new cars could mean that they are more interested in taking care of the ones they’ve got.
Regardless, this is going to be a great opportunity for P&G for a number of reasons:
1. This is the absolute best time to start a business if you have (or can obtain) the capital needed.
2. The car wash business is fragmented with no national brands and it is thus ripe for consolidation and/or creating a truly dominant franchise. Done right, as P&G will likely do, this is an epic opportunity.
3. With media fragmentation and still a de minimis amount of accountability, P&G will create its own channel for connecting with and touching customers in a very uncluttered environment (relatively speaking)–their cars. Sampling, couponing, getting opt-ins including mobile–this is truly a green field opportunity.
It is refreshing to see a giant company like P&G being “intrapreneurial” like this. This is a great illustration of why leadership is most evident in tough times.
This is a perfect example of what P&G does best; when they find a brand that has great growth possibilities, they do not limit themselves to what the brand was, but instead expand the concept of what the brand is, and what the brand can be. Mr. Clean was a very tired brand when P&G recommitted themselves to expanding its presence in the marketplace, Now it is one of the Billion Dollar brands that P&G covets.
The car wash concept is a great way to expand the brand awareness, make some money, and use its car wash locations to sell additional product. I’m sure that the car washes sell Mr. Clean product, Febreeze air fresheners for the cars, etc. We shouldn’t be surprised if P&G rolls out this concept in other areas, and does the same with Tide branded laundromats.
P&G is on a roll!
With Procter, this is no gamble, Midwest Carwash Assn’s objection notwithstanding. I can envision P&G blanketing the country with the Mr. Clean Car Wash concept, create another P&G brand and then dominating the car wash business. What will those insightful Cincinnati Kids think of next?
The power of brand plus excellent execution equals success.
The market demand is still in place: consumers still do wish to wash their cars; offering a fun destination for kids and adults during errand missions is still appealing. P&G is meeting consumer needs, as usual. It’s no wonder they are enjoying response.
What do you do with a great brand? Leverage it! So of course if you have a cleaning product brand you begin to look for other cleaning applications. In that sense, it’s a half step from the kitchen and bathroom to the garage or–in this case–the car wash.
The concept can only help build the brand and a nationally branded car wash model ought to have legs. (Will we see a Mr. Clean home car wash system next?).
The only potential obstacle is the economy and that can’t stay bad forever.
Great branding concept. Taking the idea of creating a reason for consumers to come to a retail location as entertainment and introducing some fun into the retail area for both adults and kids is a great way to leverage consumer insight! I’m looking forward to having one near me!
I agree with it being a good idea. The next step is for independent car washes to push the edges where sterile corporate American cannot. I foresee another company doing for the car wash industry what Hooters did for the restaurant business. These good ideas only evolve into better ones.
P&G is smart. Given the limited rollout details, they’ll likely move slowly during the recession, picking locations carefully to build the brand among key demos. Then in the post-recession era they can launch a broader rollout.
The whole concept sounds great, and it’s a nice brand extension. This is where smart companies should be right now, i.e., spending some of the recession down time exploring new ways to reach consumers, making informed decisions, building the brand among changed/changing consumers and preparing for the post-recession when consumers feel more confident about spending.
And I don’t think rolling out this particular concept during the recession is a bad idea. The brand is well know, it’s a fun experience, it’s convenient (especially for those of us who reside in the snowy northeast) and some consumers could view it as either a necessity (i.e., they hate washing the car) or an affordable indulgence that puts a new shine on the car and their recession life.
Mr. Clean is a great brand name. It has been developed and nurtured by P&G for a number of years and lends itself to expansion outside of retail. For an operator like P&G, this is an exceptional opportunity to expand rapidly in an economy where cash is king. We know P&G has the cash and the concept seems to be proving itself. As for branding an unbranded industry, if anyone knows anything about brand building and brand management it’s P&G. Let’s all hide and watch!
Kudos to P&G for identifying a rather sleepy, fragmented industry and injecting it with an experiential consumer experience (interactive fun for the kids) based on a highly respected brand name.
In bringing the iconic Mr. Clean brand to life in this manner, Procter & Gamble may brilliantly cultivate a new generation of customers with the upside of a marked lift in ongoing retail sales.
Phil Rubin nailed it; this is a terrific time to leverage a great brand. Look at the confluence–spring cleaning time, bulletproof brand, a small luxury for people to enjoy. Businesses with cash that can tap into people’s desire to enjoy little luxuries will do very well.
Convenience stores are reporting that their car wash business is suffering due to the economy. It’s an expense that consumers can easily put off when money is tight (or they can wash their cars themselves). However, I would agree that the Procter & Gamble Mr. Clean car wash has a chance to be a powerhouse based on what we’ve seen of the inaugural one that Convenience Store News first reported on last June.
Many great comments here and I agree that P&G has the muscle to make this concept successful. However, the market is saturated with car washes so it’s going to take time to displace or rebrand existing washes.
I think it should be a natural extension for P&G to look to brand with convenience stores and gas stations where they could tie into the fuel business and still have the space to sell their branded accessories. This is one budding franchise worth watching.
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Living in Cincinnati, I have had the privilege of visiting one of the Mr. Clean locations. As a marketing professional, I love the concept of extending the brand beyond the product platform to a services or lifestyle level. While P&G assuredly did its usual world-class research, my concern is how the consumer value will play out in the long-term, when the newness wears off. The two locations I’ve seen are big, bold, bright but inviting.
The car wash uses a menu-based price system that starts about $14.99 and goes up well over $50 for wax and interior cleaning options. On three visits, my average cost has been $25 for a basic wash, towel dry and ‘quick’ interior detail. In this economy, what is the value of a clean car? Likewise, my average visit has been 10-15 minutes–not a fast drive-through that many people will prefer. Time will tell if enough people will invest the time and money to make this a destination stop.
Even if it takes them a few years to get this going from a franchisee standpoint, this is a good branding move for Mr. Clean and P&G. Who doesn’t love a car wash?! If the brand rolls out D-I-Y car-wash product quickly in the Auto channel–I see it as a missed opportunity and threat for Armor All as well.
Just goes to show the power of brand identity. A trusted brand name will do wonders for almost any business. And if the product itself lives up to the name, you’ve got a winning combination.
And let’s not forget that people like to have clean cars, regardless of the what state the economy is.
Great brand being leveraged correctly. Franchising is still growing in spite of the spate of bankruptcies of individuals. I found their requirements of “Passive ownership not allowed” a key selling point to manage the brand.
As to timing, who can predict when it is right and wrong? The main thing they are trading on is a strong brand and convenience. I still bet that in the right market, they will be very successful.
I would not want to be a competitor in the car wash business right now. While business is tough, as most are today, the fact that people are not buying new cars could mean that they are more interested in taking care of the ones they’ve got.
Regardless, this is going to be a great opportunity for P&G for a number of reasons:
1. This is the absolute best time to start a business if you have (or can obtain) the capital needed.
2. The car wash business is fragmented with no national brands and it is thus ripe for consolidation and/or creating a truly dominant franchise. Done right, as P&G will likely do, this is an epic opportunity.
3. With media fragmentation and still a de minimis amount of accountability, P&G will create its own channel for connecting with and touching customers in a very uncluttered environment (relatively speaking)–their cars. Sampling, couponing, getting opt-ins including mobile–this is truly a green field opportunity.
It is refreshing to see a giant company like P&G being “intrapreneurial” like this. This is a great illustration of why leadership is most evident in tough times.
This is a perfect example of what P&G does best; when they find a brand that has great growth possibilities, they do not limit themselves to what the brand was, but instead expand the concept of what the brand is, and what the brand can be. Mr. Clean was a very tired brand when P&G recommitted themselves to expanding its presence in the marketplace, Now it is one of the Billion Dollar brands that P&G covets.
The car wash concept is a great way to expand the brand awareness, make some money, and use its car wash locations to sell additional product. I’m sure that the car washes sell Mr. Clean product, Febreeze air fresheners for the cars, etc. We shouldn’t be surprised if P&G rolls out this concept in other areas, and does the same with Tide branded laundromats.
P&G is on a roll!
With Procter, this is no gamble, Midwest Carwash Assn’s objection notwithstanding. I can envision P&G blanketing the country with the Mr. Clean Car Wash concept, create another P&G brand and then dominating the car wash business. What will those insightful Cincinnati Kids think of next?
The power of brand plus excellent execution equals success.
The market demand is still in place: consumers still do wish to wash their cars; offering a fun destination for kids and adults during errand missions is still appealing. P&G is meeting consumer needs, as usual. It’s no wonder they are enjoying response.
What do you do with a great brand? Leverage it! So of course if you have a cleaning product brand you begin to look for other cleaning applications. In that sense, it’s a half step from the kitchen and bathroom to the garage or–in this case–the car wash.
The concept can only help build the brand and a nationally branded car wash model ought to have legs. (Will we see a Mr. Clean home car wash system next?).
The only potential obstacle is the economy and that can’t stay bad forever.
Great branding concept. Taking the idea of creating a reason for consumers to come to a retail location as entertainment and introducing some fun into the retail area for both adults and kids is a great way to leverage consumer insight! I’m looking forward to having one near me!
I agree with it being a good idea. The next step is for independent car washes to push the edges where sterile corporate American cannot. I foresee another company doing for the car wash industry what Hooters did for the restaurant business. These good ideas only evolve into better ones.
P&G is smart. Given the limited rollout details, they’ll likely move slowly during the recession, picking locations carefully to build the brand among key demos. Then in the post-recession era they can launch a broader rollout.
The whole concept sounds great, and it’s a nice brand extension. This is where smart companies should be right now, i.e., spending some of the recession down time exploring new ways to reach consumers, making informed decisions, building the brand among changed/changing consumers and preparing for the post-recession when consumers feel more confident about spending.
And I don’t think rolling out this particular concept during the recession is a bad idea. The brand is well know, it’s a fun experience, it’s convenient (especially for those of us who reside in the snowy northeast) and some consumers could view it as either a necessity (i.e., they hate washing the car) or an affordable indulgence that puts a new shine on the car and their recession life.
Mr. Clean is a great brand name. It has been developed and nurtured by P&G for a number of years and lends itself to expansion outside of retail. For an operator like P&G, this is an exceptional opportunity to expand rapidly in an economy where cash is king. We know P&G has the cash and the concept seems to be proving itself. As for branding an unbranded industry, if anyone knows anything about brand building and brand management it’s P&G. Let’s all hide and watch!
Kudos to P&G for identifying a rather sleepy, fragmented industry and injecting it with an experiential consumer experience (interactive fun for the kids) based on a highly respected brand name.
In bringing the iconic Mr. Clean brand to life in this manner, Procter & Gamble may brilliantly cultivate a new generation of customers with the upside of a marked lift in ongoing retail sales.
Phil Rubin nailed it; this is a terrific time to leverage a great brand. Look at the confluence–spring cleaning time, bulletproof brand, a small luxury for people to enjoy. Businesses with cash that can tap into people’s desire to enjoy little luxuries will do very well.
Convenience stores are reporting that their car wash business is suffering due to the economy. It’s an expense that consumers can easily put off when money is tight (or they can wash their cars themselves). However, I would agree that the Procter & Gamble Mr. Clean car wash has a chance to be a powerhouse based on what we’ve seen of the inaugural one that Convenience Store News first reported on last June.
Many great comments here and I agree that P&G has the muscle to make this concept successful. However, the market is saturated with car washes so it’s going to take time to displace or rebrand existing washes.
I think it should be a natural extension for P&G to look to brand with convenience stores and gas stations where they could tie into the fuel business and still have the space to sell their branded accessories. This is one budding franchise worth watching.