You’re Kidding. He Really Said That?

Discussion
Feb 21, 2003
George Anderson

By George Anderson


Greg Tipsford, senior vice president for laundry care, Dial Corp., told analysts the company was increasing the size of caps on its Purex laundry detergent bottles because, “If you have a smaller cap, customers will use less of your product.”


Reuters reports, “Despite the smaller cap size, Purex was still a key growth driver for the company in 2002. The brand is priced at the ‘value’ or lower-priced segment in the market and is the No. 2 overall brand in terms of volume and No. 3 in terms of dollar sales.”


Moderator’s Comment: What are your thoughts on Dial’s
increasing the cap size of its Purex laundry detergent? Will it have a positive/neutral/negative
effect on the brand’s sales?


Mr. Tipsford’s cap size remark (if quoted accurately)
leaves Dial and its Purex brand vulnerable to criticism/questioning from consumer
groups, the media etc.


As a “value” product, Purex likely appeals to many consumers
with limited incomes. Getting these consumers to use more of your product without
a real need is not something a company should be publicizing. [George
Anderson – Moderator
]

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