01/15/09
“Will P&G’s Streamlining Move Give Consumers What They Want?”
In an article in the January 15 issue of Marketing Week, Booz & Company Vice President Barry Jaruzelski (North America) endorsed Procter & Gamble’s strategy to scrap several of its format lines across its laundry brands, particularly in an economic recession. “It is possible to migrate the segments so there is no substantial loss,” Jaruzeleski said. “Companies are often selling a product that people buy, but they would be just as happy with another version.” In a major shake-up in the hyper-competitive laundry detergent market, Procter & Gamble plans to scrap several of its format lines across its laundry brands, Ariel, Bold, Fairy and Daz—as it pins its hopes that the low-temperature Excel Gel is what consumers want. Though the P&G strategy is based on substantial consumer research, Jaruzelski added there is a limitation in market research into what consumers want. “Sometimes it’s just what they say they want, based on what they know,” he said. “Sometimes you have got to assert what they want.”