Trail of tiers: How Procter & Gamble made cheap, new products to buck the recession

    Along with Tide Naturals, Procter & Gamble is launching lower-priced Pampers diapers in Europe, Naturella feminine products in China, oral care in Latin America, and Gillette shaving products in India.

    As for what's driving price cuts in North America, Lieberman and Modi agree that it's nearly impossible to determine whether retail prices are being adjusted by Procter & Gamble or by the stores themselves. Retailers are often willing to take a hit on a gallon of Tide if it drives consumers to buy a full basket of the rest of their goods. However, both analysts note that big box items like those found at Costco (COST, Fortune 500) and BJ's Wholesale Club (BJ, Fortune 500) have recently come down in price across the board.

    "Procter & Gamble isn't simply cutting prices to gain market share," says Lieberman. "What we're seeing now is the result of a strategy that was announced last summer to reach a wider range of consumers around the world."