Gain Detergents Industry Position

¶ … laundry detergent was first introduced in the market in 1969 and marketed as a powerful stain-fighting detergent. The brand was later rebranded to focus on the smell that was associated with the detergent and the "fresh scent." The brand is owned by Procter and Gamble (P&G) and represents one of their top ten largest brands. Since the early history of the detergent, the product mix has eventually expanded to include more related products such as fabric softeners and scent boosters among others.

The brands current core competency is focused upon the scent that the products have and less about the cleaning power of the detergent. Most detergent does at least an adequate job cleaning clothes in today's market place so detergent brands have to differentiate themselves in other ways. By focusing on the scent, Gain has steadily built a loyal customer base over the years. Today's formulas boost that the freshness and the scent can last over two weeks and combines "sniff-tastic" elements (Procter and Gamble, N.d.).

Competitive Analysis Tide represents Gain's biggest competitor in the industry. The Tide brand controlled almost a quarter of total U.S. liquid laundry detergent sales in 2013, which amounted to revenue of approximately USD 1.26 billion; however sales declined over five percent compared to the prior fiscal year (Statista, N.d.). Yet the sales of the liquid laundry detergent category in general declined 4.9%, while unit sales also took a three percent hit. However, Gain is the number two brand in the U.S.

And Procter & Gamble was the leading liquid laundry detergent vendor in the United States in 2013, controlling nearly 60% of the USD 5.3 billion market (through the sales of its 8 total brands) (Statista, N.d.). Figure 1 - Industry Players (Statista, N.d.) Market Segmentation & Benefits P&G owns several different brands in the laundry detergent market (Tide, Cheer, Bold, Gain, Era, Oxydol, Dreft, and Ivory Snow).

To keep the brands from having a counterproductive relationship with each other through competition of its own products, P&G must successfully segment the market based on the benefits that the products offer (Marketers Magazine, 2010) Gains segmentation is based all upon the scent that the product produces and the amount of time that the scent lasts. Gain's segmentation is focused solely on the scent and how long the fresh-scent lasts for clothes that are washed in the detergent.

The consumer benefits that the brand fulfills is the experience of having their laundry smell refreshing and clean. By contrast, other brands focus more on quality issues such as keeping colors from fading or getting the brightest whites. 4P Analysis Product -- Gain is a mid-priced mid-quality laundry detergent that is differentiated by its scent and the lasting experience of its "freshness." Place -- The detergent is marketed as a mid-level detergent that has a specialized niche. The products distribution channels primarily focus on big box retailers and smaller retailers.

Price -- Gain's price is slightly lower than the premium product, Tide, in this market. Based on a review of Walmart's (the top U.S. retailer) prices, Gain appears to be roughly one dollar cheaper based on the total cost. However, consumers must also consider the number of total loads that are included in the container to create a cost-per-load analysis.

Figure 2 - Walmart Price Comparison (Walmart, N.d.) Promotion -- Most of Gain's promotions focus on one of their many different scents or how long the freshness of the smell is expected to last. The brand boasts that the "freshness" will last over two weeks. The brand is also marketed to different demographics. For example: "It's a mid-priced brand in laundry…But Gain is way ahead - "overdeveloped," in Procter-speak - in one playground where Procter wants to play more: Hispanic consumers.

Every box of Gain sold in the U.S. features both English and Spanish on the box. Its market share among Hispanic consumers is 80% higher than among the general population (Peale, 2004). Different cultural and ethnic groups may place different priorities for their expectations of detergents. Apparently, the Hispanic demographic appears to value the scent more so than the other brands that focus on cleaning power. Thus, although Gain focuses solely on the scent, it can also further differentiate its product to focus on particular demographic market segments.

Comparison to Competitors It is difficult to accurately compare different detergent brands in the market place given the fact that there is a subjective element in the ratings. For example, Tide's consumers may prefer the detergent with the best cleaning ability while a consumer that prefers Gain will value scent and the freshness experience over the cleaning ability. While some detergents may clean marginally better than others, in today's market place most detergents have relatively similar cleaning abilities. One rating analysis was identified however.

Still, such a rating report should be considered with caution based on the level of subjectivity. However, the 7 top picks by one Consumer Reports analysis (Kim, 2013): Top Conventional Brands, for standard top-loading washers: 1. Wisk Deep Clean, liquid 2. Tide Plus Bleach Alternative Vivid White + Bright, liquid 3. Tide for Cold Water, liquid.