P&G Goes Against Tide with Laundry-Free Store

Many companies have used the test store concept to play with product and marketing ideas, so P&G's approach is nothing new. However, it does highlight the importance of creative testing in the current environment. Focusing on the college student demographic (the lead in group for those who will buy P&G products), determining what clicks with this demographic group, and playing with some marketing ideas in a low cost/low risk way all point to the need to get close to the consumer and involve them in your development processes.

Kenneth A. Grady, General Counsel and Secretary, Wolverine World Wide, Inc.

To me, the news isn't the market research method--it's retail by P&G. P&G made a similar move with an Oil of Olay pop-up store to test product lines. Charmin's public toilets in Times Square last Christmas were a tutorial in promotional pop-up branding.

In other categories, we are seeing CPG taking the bull by the horns--not playing hapless victim to retailers' whims. Bacardi has own-branded bars in airports; Heineken is offering mobile retailing at events.

The headline here is: Watch out Retailers--CPG is coming.

Liz Crawford, President, Crawford Consulting

Procter & Gamble can use the Swash store as a continuous focus group, testing a coordinated alternative marketing approach. The Swash concept brings several complementary products together as a "system." Sort of like Johnson & Johnson selling a first aid kit rather than separate branded items for bandages, ointments, gauze, etc. Before investing in a new approach, risk is always reduced by market research. Procter & Gamble can get a tremendous amount of data in a very short time using a pop-up store next to a busy college campus.

Mark Lilien, Consultant, Retail Technology Group

I'm with Liz Crawford on this. Hershey's has their own retail outlets, as well.

The larger issue here is that there are 20 major global CPG brands that supply 20 major global retailers. Those 400 relationships will define the direction of both brands and retailers in the years ahead (as they have in the past.) A major difference will be an acceleration to active vs. passive retailing.

Everyone wants everyone else to "stay inside their own lines." However, own-label is only one major facet of these relationships. The retailers have the power of "ownership" of their own customers. However, the brands have the power of transcending any single retailer, no matter how powerful. So coopetition continues.

Herb Sorensen, Ph.D., Scientific Advisor TNS Global Retail & Shopper, Adjunct Senior Fellow, Ehrenberg-Bass Institute

This is a brilliant, very targeted approach to an untapped target audience and market. Importantly, the new brand name will have an immediate support factor given this test outlet is built by P&G. Interestingly, P&G took the opposite brand approach with its Mr. Clean car wash outlet market test. Definitely, P&G will learn from both testing entities.

Just brilliant strategic thinking, an "outside-the-box" approach. No restrictions on being innovative; from this once very structured consumer packaged goods corporation.

Other companies and industries should note! Hmmmmmmmmm

Stephan Kouzomis, Faculty and Staff Member, University of Louisville's College of Business

Re Swash, P&G's car wash units and The Future: P&G will get additional valuable data from this and its similar ventures. They always do! But Swash could be more about The Future than just additional current data. P&G's future growth may require new and different fields to conquer. Its products and services continues to get modified, improved and/or revised to increase their market shares up to lofty and perhaps point-of-no-return levels. What then is the next world P&G might be trying to conquer? Are the Bells of Retail ringing louder inside of P&G's twin towers in Cincinnati?

Gene Hoffman, President/CEO, Corporate Strategies International

One of my college roommates wore only cheap white dress shirts (with pants, of course, mostly). This was the 60s, and white dress shirts were OK. He'd wear a brand-new shirt for a day or two depending on its aroma, throw it on the floor in the corner, and select another. He never did laundry. When he ran out of shirts, he'd buy another stack of a dozen for a few bucks. Eventually, he’d throw the shirts out. We had a free washer and dryer in the house. Students will do anything to avoid laundry duties. And, for those who believe that the "smell test" of previously-worn garments originated with "Animal House," please understand that it began well before that.

I've never been a fan of surface solutions. Don't apply paint to the rusty parts of an old car or the rotten parts of an old house. Don't go along to get along. And squirting stuff on yourself or your clothes is no substitute for personal hygiene. But we do it, and we do it all the time. Makeup over skin problems. It's just the way we are. If it's convenient in the larger picture for a student to take a shortcut to be socially acceptable during times when they're attending class or studying in the library, what's the problem? And when they finally do clean up (a kegger comes to mind), the improvement will be noticeable and, in a weird way, attractive.

This P&G initiative won't last long, but it'll be interesting.

M. Jericho Banks PhD, President, CEO, Forensic Marketing LLC

This is a great way to determine to move beyond the focus group without going to a full test market in traditional retail channels. The expenses associated with just one store will likely be far less than listing fees at a couple of retailers.

The result from this should confirm if the target market--youth--are interested in only sort of washing their clothes. If they're correct, it could lead to a new brand with a broad line of products for regular retail channels, or a new brand available only online.

I do not expect that P&G will get into the full blown retail business, but be prepared for them offer new brands outside of traditional channels.

Dan Desmarais, President, Cantactix Solutions Inc.