P&G is aiming to leverage its name and enviable brand recall for a venture into the dry cleaning business.
Owners of several brands that are instantly recognizable as industry leaders, P&G wants to harness its expertise in related markets, notably detergents, to branch out into the dry cleaning sector. Citing the popularity of the Tide brand, P&G’s FutureWorks unit – which was set up to identify market opportunities and develop new business units to capitalise on them – wanted to stamp a name people can trust on an otherwise unbranded business.
Going against the industry norm of using off-brand detergents and fabric softeners, P&G wants to put its name on the service using its own products.
P&G is franchising the business as it wants to concentrate its resources on what it excels at. Shifting day-to-day operations to owner manages will allow P&G to concentrate on its core business – producing consumer products that stand out.
The company is wary of the possible outcome but decided to push through. Mismanaged, dirty, franchises with lousy service could definitely stain the good name of Tide. Should that become the rule rather than the exception, P&G said it will not hesitate to pull the plug.