Competitive Analysis - Tide Pods

Only available on StudyMode
  • Download(s) : 520
  • Published : March 17, 2013
Open Document
Text Preview
Allison Scanlon
Michael Carter
Marketing 3700
13 March 2013
Competitive Analysis
Introduction

Proctor and Gamble has spent nearly a decade developing Tide Pods, and thus far, it appears that their work has paid off. Tide Pods have claimed a 68% market share in the new laundry pods category, which now accounts for 7.3% of the total multibillion dollar laundry industry (Monk, Tide Pods successful enough to boost P&G's earnings). Tide Pods are unit-dose liquid packets that are twice as compacted as liquid detergent. They contain three different chambers and products: a liquid detergent, stain remover, and brightening agent. Tide Pods unique chemistry and packaging add a little magic to a despised chore. Existing Competition

Proctor and Gamble gave their competitors a great advantage in the laundry pod market by delaying the launch of Tide Pods twice ("Proctor & Gamble Delay Tide Pods a Second Time"). Church & Dwight, a competitor of Proctor & Gamble, was able to launch Arm & Hammer Toss N’ Done Power Paks slightly before Tide Pods were released into the market. Power Paks are a single-use laundry pod, but they contain a powdered detergent as opposed to Tide’s liquid detergent Pods. Power Paks also contain a brightening agent and a bleach product for stains, which is a considerable strength for them (Leverette, Arm N' Hammer Toss N' Done Power Paks Laundry Review). No other unit-dose pack has these features besides Tide Pods. They also contain baking soda, a quality that has off put some consumers. Consumers have noted that the Power Paks are not soluble in all washing machines or water temperatures, and they sometimes leave a film residue on clothes. Another complaint that consumers have had with Power Paks is their scent; many have complained about an unpleasant smell after washing their clothes with the Paks. They do not have a cost advantage over Tide Pods either; they actually tend to run about $0.02 more per ounce (Amazon.com).

Laundry Giant Sun Products was able to launch the All Mighty Pac before Tide Pods hit the shelves. All Mighty Pacs are single-use laundry packets much like Tide Pods, but they only contain detergent, and do not include a stain remover and brightening agent. They are four times as concentrated as liquid detergents, compared to Tide Pods’ 3X concentration (Leverette, All Mighty Pac Product Review). This is a product strength because All Mighty Pacs can be used for larger loads than Tide Pods. Many consumers have had problems with the Mighty Pacs solubility, and noted that the residue from the Pac was left on their clothes. This actually became such a problem that the brand manager for All Mighty Pacs had to issue an apology statement. He also offered the solution of re-washing your clothes with no detergent if they had residue on them, which completely defeats the purpose of the convenient capsules (Leverette, All Mighty Pac Product Review). All Mighty Pacs are rightfully less expensive than Tide Pods; they cost about $0.10 less per load (Amazon.com).

Henkel Corporation’s brand, Purex, created a unit-dose laundry pod called Purex UltraPacks. Purex UltraPacks contain concentrated liquid detergent, and are Tide Pods’ largest competitor according to market share. A bag with 18 UltraPacks costs about $0.27 less than an 18 count bag of Tide Pods (Amazon.com). Purex dissolves very well in all washing machines, which is a major strength for Henkel, and something that other unit-dose competitors have problems with. They do not leave residue on clothes like other laundry packets. Their solubility has also caused some issues. Many consumers have complained that the packets often burst open while still in the bag, which causes a chain reaction of many of the packs dissolving, leaving a goopy mess. Consumers who live in high humidity areas would not want to purchase this product, because they dissolve so easily when in contact with any moisture. Product reviews also...
tracking img