P&G Brands — Is Cheaper Really The Answer?
P&G introducing cheaper variants of Tide and Gillette was all over the news recently. Will Pampers, Pantene, Olay follow? CNN is wodreing if we will see an overall drop in P&G brand prices. But are cheap variants and lowered prices really the answer to get back to sustained growth at above-average margins? (I assume P&G is still shooting for that long-term goal).
My sense is that, while some price reductions might help, the bigger need is for P&G brand building to become best-in-class again (along with it coming up with more regular and more disruptive product- and business model innovations). P&G brands are no longer held in high regard by too many people — those at the point of market entry, in particular. The reputation there ranges from ‘un-cool’ to ‘industrial’ and potentially bad for you and/or the environment.
If you care about a certain category, P&G brands are often lacking ‘soul’ compared to many of the exciting ‘indie’ choices around. If you are not category involved, P&G brands might strike you as too expensive and not particularly convenient to get. — Certainly compared to well-performing alternatives by the likes of Amazon Prime suggested by Alexa or outright auto-replenished to your home.
Burt’s Bees or Chobani, Method, Mrs Meyer’s or Harry’s are not about organic, good taste, fancy design, cute story or cheaper prices, alone. In fact, craft-yogurt, -beer, -chocolate or … -shampoos have cannibalized mass brands from the top. Burt’s Bees seriously challenges mass-leader Chapstick at twice or more the price. These brands also communicate and live a higher purpose that attracts young audiences, in particular. Method unites “people fighting against dirty” — and yes, that dirty includes plastic waste in the ocean and …Big CPG. Honest Co. sells detergents and diapers with ‘good’ ingredients that are made and sold the honest way, just like HonestTea … you get the picture.
So what is a P&G to do? I say, rather than cutting prices it needs to elevate its brands and take them “ueber” behind a relevant missions, myth and truths lived. And that goes beyond bits and pieces like using ocean plastic on some products now or advertising that Gillette blades are made by ‘real people in Boston, USA.’ Read how Ueber-Branding works here:
And if they need help, they can always reach us at info@ueberbrands.com… and so can you.
