¶ … LAUNDRY DETERGENT 91 OZ.
Gain Laundry Detergent is one of the most successful products of Procter and Gamble. In the year 2007, the product became the 23rd multibillion dollar product by P&G. P&G has always been an institution in product development and its wide variety of laundry detergents have all been able to capture significant market share due to distinct positioning. Tide is specifically targeted at stain removal, Gain has a fresh scent, Cheer has been positioned as the all-temperature detergent and this distinct positioning has enable P&G to dominate the detergent market without causing confusion in people's minds. Gain is currently the second largest selling laundry detergent in the U.S. And has many different variants present in the market.
In this study of the brand, we have chosen to focus on the original Gain detergent in a box of 91 oz.
TARGET MARKET:
Gain has gained its market share based on the fresh scent that it leaves in the clothes. It has become a major hit with the ethnic groups most prominently the African-American consumer. "Gain has been exceptionally successful understanding and meeting the needs of the increasing population of ethnic consumers, primarily African-Americans and Hispanics. Gain is P&G's fastest growing brand amongst African-Americans. As ethnic markets continue to develop rapidly, Gain will continue to strive to lead the way in maintaining ethnic consumer relationships through caring for their fabrics."
The product is targeted at families who prefer economy as well as quality. It is not a "single person" product because they would normally prefer something easier like detergent in liquid form and may not even purchase the 91 oz. box that gives 80 loads. However a family person who is conscious of his budget restrictions would be attracted to Gain because of instant fresh scent, economical price and reasonably high number of loads.
POSITIONING:
Gain has been positioned as detergent that gives "fresh scent" and this has been the main positioning strategy for Gain throughout the U.S. And even globally. Kevin Burke, P&G Laundry Marketing Director explains, "Gain consumers demonstrate an extraordinary passion for the brand. We work hard to understand our Gain consumers and work even harder to deliver the amazing scent experience they find in Gain. That's the secret to Gain's remarkable growth."
Gain has turned scent into a multimillion dollar proposition and invests heavily in scent equity by consistently and continually focusing on the development of newer and fresher scents for its various Gain laundry detergent variants. Cherylanne Skolnicki, Gain Brand Manager adds, "We've heard time and time again from consumers that they want long lasting scents in their fabrics. Gain has truly delivered a variety of products that offer long-lasting scents along with great cleaning power."
It was in 1981 that the brand was repositioned as the one that focused on fresh scent. The growth followed rapidly with this new positioning strategy and "throughout the decade, the brand created a long-term vision to leverage Gain's great scent experience among scent seeking consumers. The business grew rapidly behind this scent-focused positioning, and the brand continues to develop Gain around the scent experiences that the brand offers."
PRICE:
The price of Gain 91 oz. is around $17 depending on where you are shopping. Interestingly P&G doesn't determine fixed price for its laundry products and price is at the sole discretion of the retailer. But there is normally a suggested price and it falls around $17. This means people are getting around 5 loads for $1. The price is reasonable and people who use powder frequently would want this kind of economy especially people with families.
DISTRIBUTION:
Gain has a wide distribution channel. It is available through almost all retailers from Wal-Mart down to the local grocery store and Costco. The product is almost evenly priced everywhere with a little difference in cents especially at wholesalers.
Gain, Tide and Cheer all share the same distribution channels. Globally, the company has one distribution strategy i.e. targeting small mom and pop stores which are no bigger than closets. P&G believes that most people would buy their detergents from the next door store than visit a big store for it. It is for this reason that P&G fights for good shelf space in these shops even though small retailers do not consider P&G brands a priority since they believe that only 10% of their revenues come from the sale of detergents, while food and soda brings in around 45%. But P&G has a very active distribution system whereby...
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