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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Excerpts

P&G - A Leading Consumer Packaged Goods Company

P&G was founded in 1837 after William Procter, a candle maker, and his brother-in-law, James Gamble (Gamble), a soap maker, merged their businesses. Their business was based in Cincinnati, which was well known as a meat packing center...

About Mr. Clean

In 1958, P&G launched Mr. Clean, an all-purpose liquid used to clean hard surfaces, laundry, jewelry, etc. It was launched at a time when most women stayed at home, cleaning the house and keeping it tidy. Its advertising icon, also called 'Mr. Clean' , was arguably one of the most recognized and popular advertising icons in the US...

The Beginning

Over the years, P&G designed a global, diversified business portfolio which enabled it to grow consistently. Its core strengths were consumer understanding, brand-building, innovation, go-to-market capability, and scale which helped it in achieving financial stability and generating revenues...

Franchising Model

After testing its two car washes in the Cincinnati area, P&G initiated a franchise development program. According to analysts, the company opted for a franchise system instead of building its own outlets as large capital investments would be required to set up company-owned car washes...

Car Wash Facilities

P&G preferred to build new facilities rather than convert existing operations. Every Mr. Clean Car Wash center was optimized by its location and site design. Talking about the need to set up new facilities, Arnett Jr. said, "There are probably opportunities out there for conversions, but what we're trying to drive is that experience...

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