Mr. Clean Car Wash: Procter & Gamble's Foray into Services

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Case Details:

Case Code : BSTR375
Case Length : 21 Pages
Period : 2007-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Procter & Gamble Company
Industry : Consumer Packaged Goods/ Services
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Mr. Clean Car Wash takes a brand name with over 50 years of consumer trust and delivers a delightful car cleaning experience. It's really a new day in car washing — and a whole new franchising opportunity. Our vision is to become the first national chain of branded car washes — which presents a unique opportunity for entrepreneurs to get in early in the growth curve.”¹

- Bruce Arnett Sr., CEO of Mr. Clean Car Wash, in 2010.

"Mr. Clean brand is in a pickle, because NPDES² and storm water rules are tightening, their home-use product puts consumers in jeopardy of breaking the law with water pollution rules. So, their only option is to do something different, but I do not think they have thought this through correctly. It will be interesting to watch, that's for certain.”³

- Lance Wislow, a business consultant, in 2009.

"It seems like a huge leap for a consumer goods company to move into services like this, but P&G has been considering entering the services arena since the 1960's, and has been testing and refining these ideas over the last several years. The company's caution is warranted. Moving from goods to services is not simply another brand extension; operating Mr. Clean car washes presents significantly different challenges than launching a Mr. Clean Magic Eraser.”⁴

- Ellen Peebles, Senior Editor, Harvard Business Review⁵, in 2009.

Mr. Clean Car Wash: Procter & Gamble's Foray into Services - Next Page>>

1] "Mr. Clean(R) Coming to Shine Cars in Texas,” www.pginvestor.com, February 26, 2010.
2] The National Pollutant Discharge Elimination System (NPDES) program was established by the US federal government to control water pollution by regulating point-source discharges of waste water such as pipes or man-made ditches.
3] Lance Winslow, "A New Car Wash Franchising System - P&G's Mr Clean Carwash Franchise,” http://ezinearticles.com, February 14, 2009.
4] Ellen Peebles, "Is Mr. Clean Service Ready?” http://blogs.hbr.org, February 18, 2009.
5] The Harvard Business Review is a leading general management magazine published by Harvard Business School Publishing, owned by the Harvard Business School.

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