Procter & Gamble Rolls Dice with These New Strategies

Tide, Procter & Gamble

Will consumers explore the high end of products as basic as paper towels and tampons? Procter & Gamble Co. (NYSE:PG) is betting such a strategy will bring it more market share in the second-thought aisles of supermarkets everywhere. However, the consumer staples powerhouse is also testing a lower-price version of its most recognized detergent, a signal the company is willing to come back to earth.

Wall Street Journal report looked at the more expensive versions of paper towels (Bounty DuraTowel) and feminine products (Tampax Radiant Collection) Procter & Gamble believes consumers will add 20 percent to their bills to acquire. Investors have been skeptical of the average consumer’s willingness to head in that direction for items so basic — or, as in the case of paper towels, unnecessary — to daily life.

In fact, Procter & Gamble seemed on the verge of acknowledging customer trends by announcing it would release a lower-price version of its Tide laundry detergent. According to the Cincinnati Business Courier, P&G would situate this less expensive Tide below the current products yet just above other bargain brands like Church & Dwight’s (NYSE:CHD) Arm & Hammer detergents. The possibility of cannibalizing its own Tide business is clear.