Instead, Bounty doubled its volume in six years while maintaining prices at least 10% higher than competing brands. For the 52 weeks ending Feb. 25, the brand led the $2.1 billion paper-towel category with a 38.5% market share, according to Information Resources Inc.
With the lowest level of promotional activity in its category, Bounty has become one of the leading successes for P&G's everyday low pricing strategy, too.
The success stems from identifying consumer wants, developing superiority in strength, absorbency and low-cost production, and marketing these points to consumers, says Mark Ketchum, 46, President-U.S. Paper Sector.
He credits the 6-year-old "Little Kids-Big Spills" campaign by Jordan, McGrath, Case & Taylor, New York, with promoting Bounty's product-superiority message.
"If you have 100% more strength and absorbency, paying 10% more doesn't faze you at all," says Mr. Ketchum.
As Bounty's volume has doubled, P&G has more than doubled media spending on the brand.
The same consumer understanding, product innovation and strong marketing that currently make Bounty P&G's most successful domestic paper brand can be applied "throughout Procter & Gamble," Mr. Ketchum says.