Innovation, in the sense of keeping up with social change and the lifestyles of consumers, has always been a key component of the business.  That is why, according to Wikipedia, P&G has created scores of webpages on the internet to promote its products.
However, it is possible to innovate too far and hurt your business as a result.  That appears to be what happened when P&G came out with its new laundry product, Tide Pods capsules that you just drop in the washing machine.

The problem with premeasured detergent pods (besides children thinking they are candy) is that they keep consumers from overdosing or pouring in too much detergent.  For years the soap companies could count on extra sales from shoppers who overdosed with every washing load.  The sales bonus increased when manufacturers rolled out increasingly concentrated detergent and users thought, “That doesn’t look like enough soap; I will add a little extra.”

However, after the introduction of pod capsules, sales have begun to decline.  According to the latest market information, U.S. sales of laundry detergents fell 2.1 percent in the 12 months ending in March 2013.  Compared to the pre-pod era of three years ago, sales are down more than 5 percent (and that amounts to big bucks).  The finger-pointing has already begun.

At a recent industry conference, the head of P&G’s chief competitor didn’t mince words: "Pod is killing the laundry detergent category and P&G is to blame."  New products ought to expand the revenue pie formanufacturers and retailers, not shrink it. Thatis what innovation always did in the past, he said. Thelast round of more-concentrated liquid, in 2008, drovelaundry detergent sales up 5%.

The introduction of pods forced Tide’s competitors to follow suit.  Now the entire laundry soap industry is stuck with declining sales, unless they can figure out some new gimmick that will convince consumers to do more laundry.

Back to the overdosing problem, one expert says a major contributor is the oversize laundry jug, which he compares to sport-utility vehicles. The caps (used to measure the dose) tend to be much bigger than the amount needed for even the heaviest loads.
If bottles and packages become smaller, he believes, consumers will be less apt toover-pour. But that is something the detergent-makers won't want to give up.Why?  For the simple reason that going to a format that eliminated all the consumers overdosing would reduce profits.  Then you’d have a shareholder issue on your hands and somebody near the top would get fired.

Meanwhile, keep clipping those coupons.

Jerry Lincecum is a retired English professor who now teaches classes for older adults who want to write their life stories.  He welcomes your reminiscences on any subject: jlincecum@me.com