Tag Archives: target market

P&G Introduces New Detergent ‘Swatches’

Tide Pods were a revolution when they launched in 2012 and have since spawned a new look for many detergent and soaps as pods took over the laundry room. But what’s next? Could P&G top the Tide Pod craze? Perhaps. And the answer may be in producing a new product line without using a key ingredient – water.

The innovative products are not in the old soap and detergent forms; instead, they come in small swatches that look like fabric, but foam when water is added during washing and cleaning. The new product form substantially reduces the size and weight of detergents, making them lighter and smaller to package, ship, and store. There are eight types: hand soap, face wash, body wash, shampoo, conditioner, laundry detergent, surface cleaner, and toilet cleaner.

Think about it. Instead of carrying home (or shipping) a gallon of detergent that can weight upwards of eight pounds, the new product can be carried home in a small box that weighs ounces, and is packaged in biodegradable boxes. This new size would allow P&G to sell direct to consumers. Pricing is higher than standard products though. A box of 60 body wash swatches are $19, while laundry detergent costs $29 for 30 swatches (compared to 81-pack of Tide Pods at $19).

One remaining topic is how to brand and name the new product line. It is currently being called EC30. P&G is still considering whether to create a new brand, or use another well-known P&G product name.

What is your opinion of the new product line?

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Show the IndieGoGo campaign that P&G used for proof of concept: https://www.indiegogo.com/projects/ds3-next-generation-cleaning-for-body-and-home#/
  3. A video of the product can be found at https://youtu.be/ToPjozrz6ME
  4. The product can also be found on Web site: https://ds3clean.com/
  5. For this product, what is the target market? Include demographics, psychographics, behaviors, values, attitudes, etc. (Note: Can the product be sold to organizations also?)
  6. Based on the target market profile, what makes this product unique for these customers?
  7. Poll students: How should P&G brand/name the new product line?

Source: Terlep, S. (22 April 2019). Forget Tide Pods. P&G bets water-free soap ‘swatches’ are the future. Wall Street Journal.

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SpotMini Learns to Dance and Atlas Does Parkour

In an article posted on this blog earlier a few weeks ago, the focus was on the simplicity of innovation. Sure, innovation can often be smooth and simple, such as extending a brand line, or simplifying packaging and pricing. But, what really grabs consumers’ attention is the more imagination-capturing innovation involving high-tech products such as drones, self-driving cars, and of course – robots!

Welcome back our friends SpotMini and Atlas from Boston Dynamics. They’ve both learned new tricks and are excited to show us their accomplishments: dancing and parkour!

While the videos are not typical robot behavior, they do show how robots can be programmed and even autonomously learn new behavior such as jumping over obstacles. While to date, all of its robots have been built individually, Boston Dynamics plans to manufacture hundreds of SpotMinis next year. But, unfortunately for consumers, the robots won’t be sold in the consumer market. The likely industrial markets include construction, commercial security, municipal security, and entertainment.

In the meantime, watch the videos and enjoy the show. (But be warned. Seeing a robot dog twerk can cause lasting damage…)

Group Activities and Discussion Questions:

  1. Discuss the principles of innovation.
  2. First, show Spot mini dancing to Bruno Mars “Uptown Funk”: https://youtu.be/kHBcVlqpvZ8
  3. Next, show Atlas doing parkour: https://youtu.be/hSjKoEva5bg
  4. Finally, this video is an interview with Boston Dynamics about how its videos became YouTube viral sensations: https://video.wired.com/watch/the-story-behind-the-internet-s-favorite-robots
  5. Discuss business-to-business marketing.
  6. Divide students into teams. Have each team define an industry that SpotMini or Atlas could be sold to.

Source:  Wired, Boston Dynamics

 

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Target Launches New Brand – “Smartly”

Not all innovation requires high-tech. Sure, shiny robots, drones, talking home pods, and self-driving cars get a lot of coverage in the innovation spot light. But there is plenty of innovation around in even the simplest of household items. The key is to make sure the innovation meets the needs of the customers.

A very simple new product line innovated and launched by Target this fall is called ‘Smartly’. Smartly is a new, low-price brand with more than 70 items priced below $2.00. That’s right. Two dollars. The products include household cleaners, razors, hand soap, paper plates, and toilet paper.

And it’s not just a low price point. Most of the products are sold as single-items, or in small multi-packs. This is ideal for space- and budget-conscious consumers, such as students and young apartment dwellers starting their first jobs.

Going along with the reduced packaging, prices are roughly 70% lower than traditional brands such as Tide, Gillette, and Charmin. And, the Smartly line even undercuts Target’s own Up & Up brand by about 50%.

Simple innovation can equal smart innovation.

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Explain the use of a product-market grid to determine market segments.
  3. Show Target’s new Smartly product line: https://www.target.com/c/smartly/-/N-r4rpp#?lnk=snav_rd_smartly
  4. Read Target’s announcement of the new line: https://corporate.target.com/article/2018/10/smartly
  5. Divide students into teams. Have each team build a market-product grid by identifying five market segments that shop at Target, and five categories of product groupings sold at Target.
  6. Where does Smartly fit in the product groupings? What market segment is the best one for Target to pursue with this new product line?
  7. Finally, how should the company promote the product line?

Source:  New York Times, Wall Street Journal, Target, other news sources

 

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