Question

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open.

Refer to Scenario 11.3. Tide holds a large market share in the laundry detergent industry. However, Tide has been on the market for many years. Procter & Gamble was hoping that its pods would bring new life to its product and excite consumers once more. Tide laundry detergent is most likely in what stage of the product life cycle?

Answer 1

Tide laundry detergent is in the maturity stage of the product life cycle, where sales growth has slowed and the market is saturated, prompting Tide to innovate with Tide Pods to rejuvenate the brand and its market share.

Step-by-step explanation:

Based on the information provided, Tide laundry detergent by Procter & Gamble, which has been on the market for many years and is looking to reignite consumer interest with its new Tide Pods, is likely in the maturity stage of the product life cycle. This stage is characterized by a slowdown in sales growth as the product has achieved widespread acceptance and faces increased competition.

The innovation of the Tide Pods signifies a strategy often used by companies during the maturity stage to rejuvenate the product's market share and extend the lifecycle of the brand. Initiatives like repackaging and altering the concentration to create a new, convenient form factor (Tide Pods) are indicative of efforts to differentiate the product and generate renewed consumer interest without changing the fundamental cleaning agent.

While powdered and liquid detergents both represent a significant share of the worldwide laundry detergent market, innovation in product form, like the development of detergent pods, is aimed at capturing further market share and meeting consumer demand for convenience.

Additionally, environmental considerations have led to the reformulation of detergents to contain less phosphorus, mitigating the impact of eutrophication. The changes made by Procter & Gamble to the Tide Pods' packaging and concentration are responses both to market demands and to health and safety concerns, embodying the adaptation often seen in the maturity phase.