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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Moving From Goods to Services
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On February 26, 2010, US-based consumer packaged goods giant Procter & Gamble Company (P&G) announced that it would launch Mr. Clean Performance Car Wash (Mr Clean Car Wash) in Texas and open about 25 Mr Clean franchised car wash locations in Houston and Dallas.
Leveraging on the brand value of Mr. Clean, a line of cleaning products, P&G entered the arena of car wash services when it opened its first car washing facility in Cincinnati in 2007. Later in February 2009, P&G expanded the footprint of Mr Clean Car Wash through the acquisition of a car wash franchise chain in Atlanta, Carnett's Car Washes6 (Carnett's).
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P&G's car washing business was operated by Agile Pursuits Franchising Inc. (Agile Pursuits), a wholly-owned subsidiary of P&G. As of early 2010, Mr. Clean Car Wash was the largest full-service car wash franchise in the US, with 15 operations in Ohio and Atlanta and another six facilities under development.
Introduced in 1958 by P&G, Mr. Clean was one of America's top-selling brands in household cleaning. The Mr. Clean line included Mr. Clean Wipes, Multi-Surface Cleaners, Magic Eraser, and other cleaning tools. It was also one of the most successful brand extensions with licensed products exceeding over US$ 70 million in annual retail sales as of 2008. The brand's parent company P&G focused on providing branded consumer packaged goods...
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