Case Study | Procter & Gamble - Tide Pods

Managing Long-Term Supply Issue with New Product Launch

Market6 enabled P&G and retailer category managers to:

  • Create DC orders based on actual need per location, minimizing enterprise-wide OOS
  • Monitor actual store-level sales and inventory rates daily to minimize overage and OOS

Challenge

In 2012, during the initial launch of Tide Pods, Procter & Gamble (P&G) faced limited manufacturing capacity for its new items and struggled to deliver enough product to its key grocery’s warehouses to fill store orders. Simultaneously, because the new items were unique, past sales of similar items were of little value in forecasting demand. Long-term supply issues, coupled with uncertainty about future demand, made planning product shipments during the introduction tricky.

P&G and its grocery partner needed a solution that would help maximize sales during the introduction period and let as many shoppers as possible try the new items, while also allowing the partners to manage weekly supply versus demand for all 12 new Tide Pod items across more than 15 warehouses.

Solution

P&G turned to Market6 to help optimize the flow of product to stores during the early days of the product launch, when the company faced constrained supply. Using Market6 analytics and reports, P&G was able to:

  • Manage weekly supply available to create warehouse orders based on actual need for each location, and minimize OOS across the grocery retailer’s enterprise
  • Monitor actual store-level sales and inventory rates daily to minimize overage/out of stocks
  • Prioritize shipments to stores that truly had minimal inventory and were in real danger of being out of stock

Impact

Working with Market6 during the Tide Pod launch allowed Procter & Gamble and its grocery partners to:

  • Maintain warehouse service levels to stores at or above its target of 98.5% average
  • Minimize out of stocks at the store level
  • Minimize the time the grocery retailer’s category manager and the manufacturer’s sales team had to spend managing the supply issue among divisions