Readers: 38 | Updated: 07-17

Ted Mininni: P&G’s New Billion-Dollar Baby?

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Consumer product industry watchers have known for some time that P&G’s Febreze brand has been an unqualified success. Launching hot selling new products out of the gate is quite a feat in these days of market saturation, but developing new categories and then positioning products for success within them is even tougher. Leave it to P&G to get the formula right...

Mind you: they didn’t always have it right when it comes to Febreze. With good reason. When the product first hit store shelves, it had great distribution thanks to P&G’s enormous clout at retail. But after consumers used it for awhile, the fabric odor eater wasn’t being used as often as P&G would have liked. Hence: a sales slow-down.

In its article titled “Febreze smells like $1B winner”, the Cincinnati Enquirer explains that: “. . .after a fast start in 1998 that saw Febreze quickly top $100 million in sales, then slowed, researchers decided the next move by visiting consumers in their homes, sitting on their sofas, and watching."

Being as savvy a consumer product company as P&G is, its marketers noticed that consumers were using Fabreze in experimental ways in their homes. A proverbial light bulb flipped on. Result? Febreze air fresheners, plug-ins, candles and ingenious pairings with other P&G detergents and household cleaners.

All stepping stones to birthing a billion dollar baby. The consumer has a firm brand image in mind when it comes to Febreze, according to the Enquirer article. “...the brand reminds people of a ‘fresh-smelling, clean home.’”

When Febreze air freshener debuted in the marketplace in 2004, and touted as “a breath of fresh air,” the brand enjoyed a 27% increase in sales. Moreover, the brand has maintained an enviable 20%+ annual growth rate as the product line has been extended with new product introductions.

Now, P&G has leveraged its design forward-thinking mentality to the Febreze brand, as well. The Febreze Décor Collection was recently launched to great reviews. The intention? To take the fabric freshener out of the closet, enabling consumers to openly display the beautifully-designed containers in their homes. Stylish, clear packaging with beautiful botanical or raindrop graphics make the latest Febreze line extensions stand-outs.

So much for the thinking that utilitarian products need to be packaged in ho-hum plastic spray bottles with bold, larger-than-life brand identities and colors to entice consumers. In fact, maybe this trend is an indication that it’s time for consumer product companies to totally rethink their packaging design.

Questions:
• Do you use Febreze?
• Would you be more likely to buy Febreze if you could keep the product out so you could use it as you need it, without having it look like it should be hidden away until you need it?
• Do you think P&G has hit on something here, by designing packaging that could integrate into anyone’s décor, so that it’s both functional and attractive?
• What other kinds of everyday consumer products would benefit from decorative packaging?

I’d love to hear from you.



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