Thursday, August 06, 2009
P&G Introduces Tide Basic
The Wall Street Journal ran a front-page story about P&G's intense internal deliberations over whether to launch a less expensive, simplified version of Tide. In the end, facing pressure from consumers buying less of P&G's premium products during the recession, P&G decided to introduce Tide Basic. This debate highlights a crucial issue for many firms during this downturn. How does one cope with changing consumer habits while trying to not damage their brand equity? At the heart of this debate lies a critical question: Is the change in consumer habits temporary or perhaps more long lasting? It seems as though P&G believes they are facing a longer term challenge, driven both by the broader economy as well as the increasing pressures from higher quality private label products in many of their product categories.