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Ted Mininni
Ted Mininni   BIO
07.16.08

P&G’s New Billion-Dollar Baby?

Consumer product industry watchers have known for some time that P&G’s Febreze brand has been an unqualified success. Launching hot selling new products out of the gate is quite a feat in these days of market saturation, but developing new categories and then positioning products for success within them is even tougher. Leave it to P&G to get the formula right…


Mind you: they didn’t always have it right when it comes to Febreze. With good reason. When the product first hit store shelves, it had great distribution thanks to P&G’s enormous clout at retail. But after consumers used it for awhile, the fabric odor eater wasn’t being used as often as P&G would have liked. Hence: a sales slow-down.
In its article titled “Febreze smells like $1B winner”, the Cincinnati Enquirer explains that: “. . .after a fast start in 1998 that saw Febreze quickly top $100 million in sales, then slowed, researchers decided the next move by visiting consumers in their homes, sitting on their sofas, and watching.”
Being as savvy a consumer product company as P&G is, its marketers noticed that consumers were using Fabreze in experimental ways in their homes. A proverbial light bulb flipped on. Result? Febreze air fresheners, plug-ins, candles and ingenious pairings with other P&G detergents and household cleaners.
All stepping stones to birthing a billion dollar baby. The consumer has a firm brand image in mind when it comes to Febreze, according to the Enquirer article. “…the brand reminds people of a ‘fresh-smelling, clean home.’”
When Febreze air freshener debuted in the marketplace in 2004, and touted as “a breath of fresh air,” the brand enjoyed a 27% increase in sales. Moreover, the brand has maintained an enviable 20%+ annual growth rate as the product line has been extended with new product introductions.
Now, P&G has leveraged its design forward-thinking mentality to the Febreze brand, as well. The Febreze Décor Collection was recently launched to great reviews. The intention? To take the fabric freshener out of the closet, enabling consumers to openly display the beautifully-designed containers in their homes. Stylish, clear packaging with beautiful botanical or raindrop graphics make the latest Febreze line extensions stand-outs.
So much for the thinking that utilitarian products need to be packaged in ho-hum plastic spray bottles with bold, larger-than-life brand identities and colors to entice consumers. In fact, maybe this trend is an indication that it’s time for consumer product companies to totally rethink their packaging design.
Questions:
* Do you use Febreze?
* Would you be more likely to buy Febreze if you could keep the product out so you could use it as you need it, without having it look like it should be hidden away until you need it?
* Do you think P&G has hit on something here, by designing packaging that could integrate into anyone’s décor, so that it’s both functional and attractive?
* What other kinds of everyday consumer products would benefit from decorative packaging?
I’d love to hear from you.

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25 Responses to “P&G’s New Billion-Dollar Baby?”

  1. Paul Barsch says:

    Ted, I am continually amazed at P&G ability to build billion dollar brands by growing mature product lines (or lines they might have thought were mature, but in fact had huge windows for growth).
    I haven’t had the oppty to read “Game Changer”. Have you? If so, any nuggets you can share related to Febreze?

  2. Ted Mininni says:

    Thanks for opining, Paul. No, I have not read “Game Changer” yet. But given P&G’s M.O., is it any accident it’s one of the largest consumer product companies (if not the largest) in the world? The company is also the largest advertiser of products world-wide. I’m just thinking that companies large and small, ought to study what Procter & Gamble is doing and emulate it on a scale that makes sense for them. That’s why I like to blog about the company.
    Thanks for weighing in, Paul. Always appreciated.

  3. Laura Monn says:

    I’d be very interested to know if the new design of beautifully packaged air freshners came before or after Method did largely the same thing. Not that P&G is not a master of the arena, but Method has been quite the dark horse of the playing field and I find that a lot of home products are quickly emulating their enviable designs.

  4. Lewis Green says:

    We don’t use the product but am impressed that P&G visited customers’ homes. Very smart. Want to learn what customers want and need and how they want to use what they want and need? Watch. Listen. and Ask questions. Be where they are.

  5. Ted Mininni says:

    Interesting point, Laura, and thanks for bringing it up. It’s no accident that Method is growing faster than most environmentally conscious household cleaning lines.
    In fact, I’m working on a new packaging article and here’s a peak at an excerpt from it:
    “While a number of eco-conscious cleaning products are on the market now, why is it that Method has garnered nearly a whopping $100 million in sales in a slow-growth category? Why is it that the brand has also created a community of avid brand loyalists? Products that are seen, are meant to be grabbed and used more. More product used, faster repeat sales.”
    Whether P&G marketers became inspired by what Method is doing, or whether they used their considerable research capabilities to arrive at the same conclusion is something we can debate. But, there is no denying that design is playing a huge factor in the success of both Febreze and Method.
    Thanks for the great insights, Laura. You’re very sharp.

  6. Ted Mininni says:

    Right, Lewis. I’ve written about cultural anthropology in relation to P&G, Whirlpool and even Xerox in past posts for this very reason. Nothing is better for marketers than observing consumers as they use their products and give their insights and opinions as to what they like, don’t like, what works, what doesn’t, etc.
    P&G has even done this for its Tide brand, so is it a surprise that Tide still owns 51% of the laundry detergent category business? Is it a surprise that Tide line extensions have performed so well? Again, none of this success is an accident.
    Thanks for weighing in, Lewis. I appreciate it.

  7. This is great stuff. P&G has been ahead of the game for YEARS. It is truly great to see them succeed with this product.

  8. Do you use Febreze?
    Yes, there’s a can sitting on my bathroom counter right now.
    Would I use more product with better designed packaging?
    When a product’s out of sight, it’s out of mind, so I might use more. Speaking of
    well designed packages that blend with home decor, I like the Renuzit adjustable cones from Dial. It’s unobtrusive on the kitchen and coffee tables without taking up valuable wall socket space. If Febreze had something similar, other than candles
    and the plugin Noticeables I’d consider buying it.
    What other kinds of everyday consumer products would benefit from decorative
    packaging?
    Dishsoap bottles are rather bland, but I doubt redesigning the packaging would increase usage or reduce the onus of washing dishes.
    How about toothpaste? Maybe instead of a plain jane roll, make it into the shape of a superhero, like Spiderman, but with the same pliable characteristics of a normal
    roll. Make brushing teeth fun for the kids, and less of a hassle for the parents. Has
    something like this been done already? I could see this working with floss too. Spiderman in his crouched pose, arm outstretched and the floss dispensing where the
    web would. Hell, I’d buy that!

  9. Ted Mininni says:

    Thanks, SEO. I believe you’re right: P&G is ahead of the game because they involve the consumer in their product development stages early on. Then, they are willing to tweak products to better match consumer expectations. I like the lesson this teaches marketers. We might have an innovative new product idea; even one that creates a potentially new category as P&G did with Febreze or Swiffer. But, we may have problems after the initial distribution of the product. Sales might plateau. The product or category might not seem as viable as we at first thought. So do we scrap it, or do we research and investigate what we can do to make it viable? That is the question.
    Thanks for weighing in, SEO. Much appreciated.

  10. Ted Mininni says:

    Jesse,
    Thanks for offering so many thoughtful responses to the questions in my post. I love the creative ideas, too. Great stuff.
    The Renuzit idea for a Febreze line extension is an excellent one. Hope P&G takes notice of consumer ideas on blog sites. Dish detergent bottles are pretty mundane; I agree with that. Not sure whether designing a prettier package would make people want to wash more dishes in the least!
    Your ideas about toothpaste containers rock. Licensed properties like Spiderman are used all the time–but generally as graphics on brand packaging, creating a co-branded product. Of course, it would have to fit into a package and retailers’ plan-o-grams. . .therein lies some of the problems with products that are too imaginative. Still, brainstorming like yours leads to great new consumer products, Jesse. I love the way you think.
    Thanks for weighing in.

  11. J. English says:

    I think Febreze is awesome and yes, I use it to mask the smell of oil paints and chemicals in my art studio. Febreze, however, is not one stop shopping for me– Upon spraying it, I then go back and light a Votivo or Trapp candle. As a marketer, I understand that products can not be all things to all people but it would be really great if a company (perhaps P&G) could make a really great line of luxury products that work! Then I wouldn’t have to go to Bath & Body for the hand soap (great packaging design by the way) and the boutique down the street for my linen spray, diffusers and candles. I also delight in great smelling fabric softener– so far Simple Pleasures gets my vote– LOL, this post is reading like I am a snobby, perfume-addicted chick that might overwhelm you in an small elevator–

  12. Ted Mininni says:

    Hi J,
    I liked the line: “– LOL, this post is reading like I am a snobby, perfume-addicted chick that might overwhelm you in an small elevator–” Not at all. These kinds of observations are of great interest to Procter & Gamble. Note that the company continues to improve its products with innovations per consumer observations. I think you’ve noted some real successes that other brands are enjoying, and P&G should take note!
    Thanks for weighing in, J. I appreciate it.

  13. Dawn says:

    I love anything that smells good…hence, my 12 year addiction to Bath & Body Works.
    Febreeze is a great product. I love it. I use it at home and at my office.
    With me the jury is still out on this one. Packaging is such a huge component of marketing, no doubt. But I think if P&G hopes to keep its customer base, it should not forget what made Febreeze such a huge success in the first place. I don’t really know if I want my home to smell like Febreeze every second of every day. I think it would become similar to “white noise” a sound you hear so constantly that you’re no longer concious of it.
    That “blast” of freshness was a welcome respite to the ordinary odors of the home or office. I would hate to see the Febreeze brand line-extend itself right into a Saturday Night Live skit.

  14. Dawn says:

    I love anything that smells good…hence, my 12 year addiction to Bath & Body Works.
    Febreeze is a great product. I love it. I use it at home and at my office.
    With me the jury is still out on this one. Packaging is such a huge component of marketing, no doubt. But I think if P&G hopes to keep its customer base, it should not forget what made Febreeze such a huge success in the first place. I don’t really know if I want my home to smell like Febreeze every second of every day. I think it would become similar to “white noise” a sound you hear so constantly that you’re no longer concious of it.
    That “blast” of freshness was a welcome respite to the ordinary odors of the home or office. I would hate to see the Febreeze brand line-extend itself right into a Saturday Night Live skit.

  15. Ted Mininni says:

    Dawn,
    I believe that many consumers, yourself included, love Febreze. I also get it when you say that you don’t want everything at home and in the office to smell like Febreze. But aren’t fragrance offerings like “Linen & Sky, Meadows & Rain, Spring & Renewal” supposed to be light and don’t they blend in to the general atmosphere? I thought those choices were made available to consumers who don’t want cloying fragrances. . .
    The packaging really helps to sell Febreze, in my view. It’s pretty and streamlined, so it’s easy to see why consumers leave it out. Because it’s always at hand it gets used and used up, more frequently. Thus, more repeat purchases are a given. This all points to very sound marketing.
    Truthfully, Dawn, I think if P&G continues to line extend Febreze by paying attention to consumer demands, it will continue to be a force in the marketplace.
    Thanks for weighing in, Dawn. I always appreciate your insights.

  16. Ted Mininni says:

    Just one other thing I forgot to mention, Dawn, and this goes right to your statement: “I love it (Febreze)”. Love is a very powerful human emotion. We all know that. When love is directed at a particular brand among consumers, marketers have achieved their ultimate goal. Love leads to loyalty in a big way. And it is that emotive tie that binds consumers to brands over the long haul. As I said before, many consumers love Febreze–and that love has been achieved through superb marketing on the part of P&G.

  17. Astralis says:

    I used to use Febreeze until the original scent disappeared and now only the stronger (extra!) scents are available.
    Additionally, I realized that I could eliminate the odors by getting to them at the source instead of masking them. If there is a bad odor, it’s for a reason. While I like the scent, I prefer cleanliness. So, I no longer buy odor-masking products. On occasion I’ll buy a candle (from a candle company, not P&G chemical-scented candles).

  18. Ted Mininni says:

    Thank you for making a good observation, Astralis. Of course, there are times to mask a few odors. . .from house pets and the like, but that is never a substitute for basic cleaning. Besides Febreeze, candles are a great option to add lovely scents into our homes. As you point out, natural aromatherapy fragranced candles rather than chemically scented ones are ideal to add real ambiance into our homes.
    Thanks for weighing in, Astralis. Good points.

  19. cash says:

    Great articles on P&G Ted, really. They are an amazing company! What growth products do you think P&G will be focusing on next to achieve their goals of the 100bn company by 2010? I know in a previus article you mentioned health care and beauty, but any particular products you think will be the driver for those divisions?
    Thanks!

  20. Ted Mininni says:

    Thanks, Cash, for the kind words. P&G is an amazing company. As one of the largest, best-run FMCG (fast moving consumer goods) companies in the world, I think they’re well worth blogging about. Reason: I think consumer product companies of all sizes can learn from P&G and emulate them in a more modest way. Why not learn from the best?
    To answer your question, outsiders are not privy to P&G’s future plans until the company makes announcements, generally speaking. You can track company developments by going to their NYSE listing and read their press releases as well as industry analysts’ insights. http://www.nyse.com/about/listed/pg.html
    Just looking at the past couple of years, I think it’s a safe bet to say this: P&G will continue to update and line extend its core businesses. If you take a look at new Tide and Downy products, for example, you’ll see what I mean. With Swiffer, P&G gave birth to a new category that continues to see meaningful new product additions.
    In early July, P&G announced it would offer a new men’s body wash product, leveraging its powerhouse Gillette brand. Makes sense when you consider the strength of Gillette as a personal care line. This may be the tip of the iceberg. P&G will probably launch more skincare products for men under the Gillette brand if its first product entry is a success. And there’s no reason to think it won’t be. Skincare products for men are HOT.
    Thanks for weighing in, Cash. I appreciate it.

  21. Cash says:

    Ted, thanks so much for your thoughts! You really are extremely thorough!

  22. Ted Mininni says:

    You’re welcome, Cash. Hope it helped to answer your questions. And I hope you decide to follow developments at P&G. I believe there’s a lot of good ideas for marketers of every stripe where P&G is concerned.

  23. Sandeep Khullar says:

    It just goes to show you the magic of staying in touch with the consumers and living their life.
    It doesn’t matter whether you are big or small; you just have to remember who the end user is and be involved in their life as much as possible without intruding and you will continue to have winners one after another

  24. Sandeep Khullar says:

    It just goes to show you the magic of staying in touch with the consumers and living their life.
    It doesn’t matter whether you are big or small; you just have to remember who the end user is and be involved in their life as much as possible without intruding and you will continue to have winners one after another

  25. Ted Mininni says:

    Well said, Sandeep. This is my point in writing these blog posts. I think marketers from companies of every size can learn from the best practices of industry leaders. P&G is one consumer company with a long track record of successes. They’ve also had their share of flops, too, but they’ve learned from them. They’ve also taken flat brands and turned failures into successes. I think there are numerous important lessons for marketers here.
    Thanks for commenting, Sandeep. Much appreciated.

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