Is Tide Basic an Innovation?

Adam Hartung, Managing Partner of Spark Partners, a strategy and transformation consultancy, asked this question on LinkedIn:

“Do you think “Tide Basic,” a less-good formulation, is an innovation? Isn’t innovation about making things better and cheaper, not just cheaper?”

The genesis of the question is a story in the Wall Street Journal describing why P&G recently rolled out Tide Basic. Tide Basic “lacks some of the cleaning capabilities of the iconic brand – and costs about 20% less.” As the article notes, Tide’s historic posture is to improve the laundry detergent continuously. It gets better every year. And the price does go up as well. The decision to go down-market didn’t come easily.

Much of this is reminiscent of Clayton Christensen’s analysis of the steel industry. In that story, low-cost mini mills ultimately led to the demise of the big, integrated steel mills.

Reflecting on that, here’s how I answered Adam’s question on LinkedIn:

“Conceptually, going simpler on something *could* be an innovation. Clayton Christensen’s mini steel mills were the catalyst for disrupting the steel industry in the 1970s and 80s. The innovation was decoupling the low cost, simple steel from the integrated high end. It enabled quality customers wanted at much lower prices.

That was their innovation.”

How about you? What do you think?

Image Credit: Wall Street Journal

Hutch Carpenter is the Director of Marketing at Spigit. Spigit integrates social collaboration tools into a SaaS enterprise idea management platform used by global Fortune 2000 firms to drive innovation.