"The first heavy-duty synthetic laundry
detergent, Tide was not just a new product, but a new kind of product.
Tide has had one of the longest programs of sustained incremental innovation of
any product. Even as it was launching, P&G was working on ways to improve both the
formula and its production efficiency.
P&G now invests over $200 mn per year to understand the `whole' consumer—who
he or she is, including a focus on each
individual's aspirations, needs and wants.
The challenge now is to maintain Tide's momentum in a more cost-conscious
market without further increasing the complexity
of the product line."
Sustained organic profit growth is the
main goal of most companies, but it is extremely hard to achieve. Procter
& Gamble's (P&G's) Tide detergent has an almost unblemished record of such
growth over 65 years. How has this been achieved and what are the lessons for
other companies?
The initial launch of Tide (www.tide.com) in 1946 was a textbook
breakthrough technical innovation. The first
heavy-duty synthetic laundry detergent, Tide was
not just a new product, but a new kind of product. It was
recognized as a National Historic Chemical Landmark by
the American Chemical Society and was described by P&G's former
president, Neil McElroy, as "the first big change in
soap making in 2,000 years". |
