US Laundry Care Market Case Study: How leading manufacturers can enhance perceptions of value

  • March 2011
  • -
  • MarketLine

Summary

Table of Contents

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 brandEnhance brand desirability by understanding what factors have the most influence on shopping behavior in the marketBest understand how to enhance perceptions of value and respond to the threat of cheaper priced competitorsUnderstand the key challenges for Tide, Cheer brightCLEAN and Purex in a post-recession marketGreater 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 betterLeading 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, offeringsWhat 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?

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