Even With Soap, Less Can Be More : Marketing: Super-concentrated detergents in recyclable packages have hit West Coast stores. They already command 90% of the Japanese market.
Robin Peacock, who has used Tide detergent for three years, bought her first box of Ultra Tide two weeks ago at a Lucky Store on Lincoln Boulevard in Los Angeles.
“I like the little scoop,” said the legal secretary, who takes care of the washing for her family of four. “I used to use too much detergent; now I know how much to use.”
For Procter & Gamble Co., maker of Ultra Tide and other detergents, the likes and dislikes of consumers such as Peacock are a matter of keen interest. P&G; and other major manufacturers are closely watching reaction to the new super-concentrated or “compact” powder detergents that they have started selling on the West Coast.
They hope the new products will enjoy the same success they have had in Japan, where compact detergents were developed and marketed by Kao Corp. a few years ago. Such products now account for 90% of the Japanese detergent market.
Procter & Gamble, the largest U.S. detergent maker--with a 52% share of the $3.8-billion detergent market--started shipping its super-concentrated detergents to California and five other Western states in September.
Rival Lever Bros., the second-largest detergent maker, which has so far has made only liquid detergent, began marketing its Wisk Power Scoop in California and 13 Western and Southwestern states about the same time. “We want to establish ourselves in a known powder market,” said George Yuen, senior product manager for Wisk Power Scoop. (The West Coast is considered a particularly strong market for powder detergent.)
Clorox Co. is introducing its super-concentrated Ultra Clorox detergent in stores in California, Nevada, Denver, Phoenix and Utah this month, said spokeswoman Sandy Sullivan.
Super-concentrated or compact detergent is formulated so less is needed to achieve the same washing performance as traditional detergents. They come in compact boxes made with recycled paper and are labeled according to wash loads. Inside each box is a little scoop to make measuring easier.
For its compact detergent, P & G has made “substantial investment in plant equipment” here, spokeswoman Jennifer Bailey said. Its new detergent is manufactured using a “compact granule” technology. On a per-wash-load basis, the products are about the same in price as regular detergent, she said.
Lever Bros., with a 25% share of the detergent market, started production of its Wisk Power Scoop in July of this year at a new plant in Georgia--its first new plant in more than 20 years. The company said its Wisk Power Scoop is a super-concentrated powdered detergent “with a unique organic cleaning system.” It is also formulated to remove oily stains from clothes.
“We’re so confident of our product, we bypassed exhaustive consumer testing and went right into the launch,” said Yuen of Lever Bros. The company plans to distribute Wisk Power Scoop to the rest of the United States next year.
Lever Bros.’ launch is backed by heavy promotion, including free samples, coupons and television advertising. “We can’t give figures, but we plan to be the top advertising powder brand in the market place during the introductory period,” Yuen said.
“The new detergents did very well,” said Gary Rocheleau, the head grocery buyer in the Southern division for Lucky Stores. “Today’s consumer is conscious in terms of ecology. They see the package as beneficial. With a smaller package, there’s less material to dispose of.”
Rocheleau noted that the smaller packages “make a considerable difference to shelf space,” helping to reduce space by 20% so far as the stores are still carrying some of the regular detergent boxes.
Lucky plans to introduce its own brand of super-concentrated detergents into its 225 stores by mid-January. “For our store brand, we want to make sure that our product mimics a better product. We follow the major leader,” Rocheleau said.
Colgate-Palmolive, which makes powder and liquid detergents, tested its super-concentrated detergent Ultra Fab in three markets, including Phoenix, this summer. Spokesman Robert Murray said the company was pleased by results, but he declined to indicate when it will go into other markets.
Procter & Gamble first tested a super-concentrated detergent called Ariel in Denver in the early 1980s. This did not take off because the product came in a regular package. P & G spokeswoman Bailey said consumers “respond to a product innovation in totality.”
Last October the company tested compact detergents in the new packages in Arizona. The results showed that after six months, 50% of the powder detergent market there had converted to the new detergent. “Currently, 90% of the powder detergent market there is compact,” Bailey said.
“Perhaps the fact that there is so much activity and companies in the industry with compact versions indicate that it (compact detergent) is the way of the future,” she said.
