Real Choices at P\&G Do you love doing laundry? if so, you are the extegtion! The American Cleaning institure gys that cleaning our cothes is our fifth-most-lovthed houschold chore, right behind deaning the kitchen, dusting, mogging, and clowing the bathroom. A Labor Department stugy found that Arrencans spend up to 375 houm per year keeging our clothes locing great (or at least presentable\}. For mafy of us, doing that task means grabbing a bor or botte of PRGs peodixt, Tide defergent in an efion 10 continue to domirate the garment-case segment, FEG is trying a new intiative as part of its gNowth strateqy-Tide Cleuners Larnched in 1946 as "The Washdyy Miracle," Tide has been the number one laundry detergent in the US. since 1949. About 40mil on Artwicand use it each your. Regular innovations have helped the brand to stay on wop, including laquid Tide. Tide Pock. and fide to Go stain ielever pers. While clearty the lesder among its indutry tivals, PEG alos has to stivy on top of thanging demographic and condumer behavor trends that infuence how Amercars do laundry-or avoid doing it. The company identified a growing desice among consigters to "outvoutce" this unglearant chare, so it realived its not enough junt to set a pogular dehergent if customers start to pay others to wash their clother irstead P6G began to explore a service-griented aqpioach to meeting consumers' garment-care needs. The compony initially launched a dry-cleaning chain as a venture to sel more detes. gent and to harn about consurners' sandry preferences-kind of a "real ife" aboratory to observe what people do with dirty clothes. Sute enough, PeVG started to pick up on changes especialy among milknnigls and Gen 2 consumers. Compared to ther patents, they tend to wear theit clothing many more times before they wash them. And they appear to be less loyal to leading laundry brands than their parents PBG also observed that these youngw customers are wiling to pay for on-decnand services lice DocrDash, Uberfats, and Grubtub. in general, they/re just more used to using apps and hiring cothers to do routine tasks for them, such as food delsery and rides around nown: That spells opportunity for expanded laundry services. For sore younger people, it' a practical matier- theie utum apurt. ments donf have washesdryer hookups, of the shared laundry foom or neghtoor hood laundramat may be far awdy. Consumens ane aloo trying to recover tirne in ther jam-packed schedules, parf tecularly thase in the milkennial and Gen 2 genetabors who place a high value on their free time. His critical we go for thin becaune its a natural extersion of the brand, "according to Sundar Raman. vice president of P\&G North American fabric Care. "The time people spend on chores is decreasing, and theres less and leas consumption hapoening at home. The market for out-of-horte laundry o just as big as for in heme and growing fastec." From its start with dry-cleaning outlets, Tide Cleaners has expanded to include wash-and-foid laundry and lockers in city buildings where you can drop off and pick up your laundry, its Tide Unwersity won't earn you colege cieding but it will free up some time for you to study if you attend one of the 20 schoob whese the serwce is campnty avaluble. Theres no heed to dive 70 an oft-rampus shop or to find a locker somewhere for a tropoff. 3 st loud up your bay with dity dothes and give it to the friendly attendent who drives a truck right onto your carnpus. Tide Cleantrs unes a personaloed motile app to communicabe with customes, a must for the digitaly sawy market it wants to atzact. The agp can also track your laundry as it moves through the cleaning process, using bar-coded laundry bags and chips attached to dry-deas-only carments. Fsobrtaheting for Tide Cleanens focused primarly on dinect mal, emal, digtel, and posters. it sso prodised a video ad whth the tagire "Lfe, Mat Landry" But its bigpest markoting etort is the repartion of its ghysical locationd The compary now plans to increse in 2,000 ouries by the end of 2020 , mast of Which will be qokrated ty franchicess. If doing leundry every diy al diy sounds gaod ts you, sme up your money, franchises ser requined to have 51.1 milion in loud capits and a net werth of $2 milion. Each of these locators prominenty dsplays the familar Tide logo, which net only idencfies it as a drgo-oft point for laundry but foinforces the brand imagary for punchases of Tide products for home use. The impact ongroduct seles could be one of the bigpast wirs out of the inturive for PBG, as it cormects dresty to corbiamers and collects whuble betharidral informatoon sbout its custimers. Not everyone agrees with the wisdom of P\&G's move into bundey serices. "We've watched Tide over the yeart, and they haven't fad a long-term strategy yet." accorting to Wayne Wubya, owner of cortpetiner tiuntingmpe Corpany, the largel dy-deim franchiser in the U.5. When I look at the economics of what they are doing. ts courterintutive * The dry-deaning industry has been declining in recent years, and while Tide Cleaness is not yet profitable, R\&G beleves its eipanded set of services is a ground llocr opporturity as more pecple choose to outsoure their iflphleast-favcribe chore competitors knew its dangerous to underetimate the pover of a 70 -year-old brand, owned by a comgary knowvh for its helvy investinent in maket. ing. Digual marketing consultant ludge Grahat sees Tide Cleaners as a win for PBG: "Tide understands that they have a legacy, old brand, and it ifl not them, others will come up with this iche," he waid. "They get to own this market, and Is sugpect they tl see a spike in their traditional retal sales as people percent Tide as this Uberenge' sort of innovative brand. "2 Questions for Discussion 3-28. What factors in an evaluation of the extertal ermitonment might hane led PEG te pursue the Tide Cleaners initabve? What other factors should it consider as it further develogs and promotes Tide Cleaners? 3-29. Reniow the Poduct-Market Growth Matrax in Figune 3.4. Which of the four approuches is PGG using with its Iide Cleaners inthative? What other growth strategies could it use to stimulate furtiver growth