Doubling down on Dawn… Procter & Gamble is aggressively advertising pricey premium products like Dawn dish soap, even as cash-strapped shoppers struggle with rising prices. P&G, which makes aisle all-stars like Gillette razors and Charmin toilet paper, is running new sustainability-focused ads for Tide detergent that feature stars like Ice-T and Vanilla Ice.
- Ice ice water: P&G’s ads say shoppers will save $$ buying premium Tide detergent because it works in cold water, which is cheaper than hot.
- Maximizing market share: Last quarter P&G’s sales jumped 6% despite its largest price hikes in years. In the past four years, P&G gained US market share while raising prices as consumers continued reaching for its famous brands.
It’s good to be iconic… Leading companies can find an upside during downturns by leaning on their most recognizable brands. During the 2008 recession, consumer favorites like McDonald’s and Kraft (now Kraft Heinz) were some of the market’s top performers. Last week, PepsiCo raised its annual sales and profit expectations on strong demand for fan favorites like Doritos and Gatorade. Pepsi’s CEO said the snack giant has historically done well in recessions.
Even loyal shoppers have a price… Detergent divas could eventually turn on Tide if it gets too pricey. P&G has maintained strong growth so far despite decades-high inflation. But more consumers are starting to “trade down” to cheaper options like private labels. Mega-retailers like Best Buy, Costco, and Dick’s Sporting Goods say shoppers are ditching premium products for store-brand alternatives.