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August 10, 2009

Tide's New Product Naming Gets Back to Basics

The Wall Street Journal is up in arms about the new Tide Basic product name, a less expensive, more "basic" version of the high-end stuff we're used to, declaring that it's proof "of how the sour U.S. economy is forcing mass marketers to shift course."

The new tagline is "Big Value. Basic Clean," it costs 20% less than regular Tide and surprisingly, it comes in a yellow, rather than orange, container.

Yes, this is a product made for consumers looking for ways to pinch pennies, but it is also a reaction to the strong store brands that are taking a bite out their bigger competitors. However, as such, it is a new product name that has the potential to attract new customers, while also slowing the exodus of current loyalists.

Apparently, P&G has concluded that it's better to eat your own lunch rather than someone else.

Tide has been steadily losing market share in recent years and Richard Harshaw of the Lodestar blog suggests that "trophy" brands like Tide have to be more adaptive in terms of their pricing structure rather than roll out cheaper versions of their products.

But this may or may not be a good idea - lowering price points often does not get customers back, and more importantly, it negatively affects customer perceptions of quality.

Watching P&G roll out a "basic" version of this product represents, according to Eli Portnoy of The Brand Man Speaks, a "paradigm shift" in branding - a reaction to the fact that even affluent customers are cutting back.

I'm still holding frim to the idea that this is more of a strike against private label brands than anything else. The key is the word "basic." This new product naming positions a top brand name very well within the private label shelves.

Customers are now going to be asking themselves if they want a private label washing power from, say Walmart or Target, or a basic version of an iconic brand like Tide. It's like asking somebody if they want a Toyota Camry with all the options or a "basic" Porsche.

My feeling is that this is a very good way to boost the equity around the extremely valuable ($3 billion in sales annually) Tide brand name while at the same time grabbing customers out of the cheap seats.

Technorati Tags: Tide Basic, Tide Product Naming, New Product Names

Posted by William Lozito at August 10, 2009 8:58 AM
Posted to Brand Naming | Branding | Household Goods | Industry | Marketing | Naming | Product Naming | Retail

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