Gain Laundry Detergent 91 oz: Brand & Marketing Analysis

Introduction to Gain Laundry Detergent

Gain Laundry Detergent is one of the most successful products of Procter & Gamble. In 2007, the product became P&G's 23rd multibillion-dollar brand. P&G has long been an institution in product development, and its wide variety of laundry detergents have each captured significant market share through distinct positioning. Tide is specifically targeted at stain removal, Gain is associated with fresh scent, and Cheer has been positioned as the all-temperature detergent. This distinct positioning has enabled P&G to dominate the detergent market without creating confusion in consumers' minds. Gain is currently the second-largest selling laundry detergent in the United States and is available in many different variants.

This analysis focuses on the original Gain laundry detergent in a 91 oz. box.

Gain has built its market share on the fresh scent it leaves in clothing. It has become particularly popular among ethnic consumer groups, most prominently African Americans and Hispanics. As one company statement explains, "Gain has been exceptionally successful understanding and meeting the needs of the increasing population of ethnic consumers, primarily African Americans and Hispanics. Gain is P&G's fastest growing brand amongst African Americans. As ethnic markets continue to develop rapidly, Gain will continue to strive to lead the way in maintaining ethnic consumer relationships through caring for their fabrics."

Target Market

The product is also targeted at families who value both economy and quality. It is not well suited to a single-person household, where a smaller quantity in liquid form might be more convenient. However, a budget-conscious family shopper is likely to find the 91 oz. box — which provides approximately 80 loads — an attractive proposition, given its fresh scent, economical price, and high number of loads per purchase.

Gain has been positioned as the detergent that delivers a "fresh scent," and this has remained its core positioning strategy throughout the United States and globally. Kevin Burke, P&G's Laundry Marketing Director, explains: "Gain consumers demonstrate an extraordinary passion for the brand. We work hard to understand our Gain consumers and work even harder to deliver the amazing scent experience they find in Gain. That's the secret to Gain's remarkable growth."

Gain has transformed scent into a multimillion-dollar proposition, investing heavily in scent equity by consistently developing newer and fresher scents across its various laundry detergent variants. Cherylanne Skolnicki, Gain Brand Manager, adds: "We've heard time and time again from consumers that they want long-lasting scents in their fabrics. Gain has truly delivered a variety of products that offer long-lasting scents along with great cleaning power."

Positioning Strategy

It was in 1981 that the brand was repositioned around fresh scent. Rapid growth followed, and "throughout the decade, the brand created a long-term vision to leverage Gain's great scent experience among scent-seeking consumers. The business grew rapidly behind this scent-focused positioning, and the brand continues to develop Gain around the scent experiences that the brand offers."

The price of Gain 91 oz. is approximately $17, depending on the retailer. Interestingly, P&G does not set a fixed price for its laundry products; pricing is at the sole discretion of the retailer, though there is normally a suggested retail price of around $17. This means consumers are getting approximately five loads per dollar — a level of economy that is especially appealing to families and frequent powder detergent users.

Gain has a wide distribution network. It is available through virtually all retailers, from Walmart to local grocery stores and Costco. Pricing is fairly consistent across outlets, with only minor variation — typically a few cents — at wholesale clubs.

Gain, Tide, and Cheer share the same distribution channels. Globally, P&G's distribution strategy focuses on reaching small, neighborhood stores no larger than a closet. The company believes that most consumers will purchase detergents from a nearby store rather than making a special trip to a large retailer. For this reason, P&G fights for prominent shelf space in these shops, even though small retailers may not prioritize P&G brands, estimating that only about 10 percent of their revenues come from detergent sales compared to roughly 45 percent from food and beverages. To counter this, P&G operates an active distribution system in which merchandisers visit stores every two weeks to clean and organize shelves, making P&G detergents more visible to shoppers (Gilman & McDaniel, 2008, p. 324).