Analyzing the status, strategies and resources of businesses and their products or services is very essential as it allows operators to determine how they will progress in the years to come. This also enables them to identify their strengths and how they will optimize them. On the other hand, business analysis also makes operators realize their weak points, allowing them to address them immediately with effective strategic actions. Conducting a business analysis also helps organizations to prepare for their future development and growth. Considering that competition in the business field is continuously growing, implementing efficient strategies through business analysis is indeed significant for all operators in any industry.
Product Overview
Procter and Gamble’s Tide is among the most popular and widely patronized detergents in the world. P&G takes pride in pronouncing that the product is its flagship brand (Decker, 1998). Since its launching in 1946, the world’s first synthetic detergent established its market supremacy. With its wide array of products offered such as Tide Liquid, Tide Powder, Tide with Febreze Freshness, Tide Coldwater, Tide with touch of Downy, Tide with Bleach, Tide with Bleach Alternative, Tide HE (High Efficiency), Tide Kick, Tide Stainbrush, Tide Buzz, and others, it continued its stability in the market and its fifty years of commitment in helping families in their laundry needs (Tide Fabric Care Network, 2006).
Reason(s) for Marketing Strategy
Today’s market is characterized by highly competitive organizations which are all vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth.
Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successful in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (Lowenstein, 1997). Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers’ satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. According to Bowers, Martin and Luker (1990), if consumers somehow become better customers – that is, more knowledgeable, participative, or productive – the quality of the service experience will likely be enhanced for the customer and the organization.
As in the case of every product, Tide present and future potential in the global market somewhat, if not entirely depends on its facility to lure prospective customers. Usually, Tide targets women ages 18 to 54 years old. Over years, Tide constantly directs its marketing strategies to suit women of these ages. This is because when it comes to laundry, women belonging to this category hold the power to make decisions. This claim gained support from the national survey conducted by the American Demographics. P&G sees that such feat is crucial if Tide is to maintain its leading position in the laundry detergent market (Larkin, 1996). Findings revealed that a minimal proportion of 8% of the grocery shopping for the household is performed by men as opposed to women who done almost 56% of the tasks. However, the proportion (36%) tends to equalizes when balance of the grocery shopping is to be determined.
To formulate such marketing strategy, the management must take into consideration some significant aspects such as market condition, competitor analysis, and consumer expectations.
Market Condition
Tide still dominates the laundry product marketing arena. Globally, Tide sales have been pretty stable over years. However, during the fifteenth celebration of its anniversary, P&G has to confront the challenge of introducing the product to a new variety of consumers (Barr et al., 1997). Customarily, marketing strategy of the products is directed to the mothers at home. However, the contemporary social arrangements call for a need to improve its marketing strategy. It will be advantageous to the company if it could make the product sells even to the younger women. What more effective to reach them than with the use of the World Wide Web. During its 50th celebration, the company also rejoiced its outstanding position in the global market. In the $4 billion laundry detergent market, the share of Tide sales reached up to 36.6% accounting the $1.5 billion in sales last 1996. These figures mirror the reason why its nearest contenders, Cheer (P&G) and Wisk (Lever Brothers) are lagging behind with only 8% and 7.9% market shares, respectively (Chemical Market Reporter, 1997). If R. Kelly Clark, the president of P&G’s U.S. Laundry and Cleaning Products is to be believed, the excellent performance of Tide sales are not merely due to its price but to its quality. Tide merely resembles the company’s commitment to provide consumers excellent service through innovations (Elliot, 1996). It is popular among costumers because of it provides high-quality cleaning specializing on both colored and non-colored clothes. No doubt the Tide is on of the most important products of P&G. In fact, according to Ed Rider, the Chief Archivist of P&G the future success of the whole company depends on the performance of Tide in global market (Elliot, 1996).
Competitor
Accordingly, Tide was among the top 20 world’s detergent manufacturer. In 2000, according to the records published in Euromonitor, Tide led the list with the highest share of $3.0bn. It is followed by its stalemate, Ariel ($2.7bn) and its strongest rivals Omo ($2.2bn), Surf ($767m), Henkil’s Persil ($763m), Attack ($505m), Skip ($502m), Uniliver’s Persil ($492m), Dash/Daz ($482m) and Purex ($480m) respectively (Tide/Ariel: brand profile, 2006).
Its strongest competitors are laundry products of Uniliver such as Omo, Surf, and Persil as seen on its contribution to the facts above. With the emergence of other detergent brands as effects of product innovation and consumer behavior dynamics, Tide and P&G needs further stratification and concentration of marketing strategy focusing on its eventual market domination.
Customers’ Expectations
The varying tastes of consumers widely affect the position of every product in the market. Every consumer is expecting for continuous and excellent service. They also anticipate for new product innovation that will suit their varying taste whenever new threats (such as other brands) are present in the market. In general, consumer always expect for better products and services that will satisfy their needs.
Relative Importance of 4Ps
Primarily, Tide targets households who have exceptionally high amount of laundry to be able to realize its full market potential. It was previously determined that brand loyalty can be passed from generations to generations. When children learned to use a particular brand from their parent’s experience, the probability that he/she will remained loyal to it all the way through adulthood is great. Then, the habit would soon be imparted to their own children. However, without it would be another story when children leave their immediate family and decide to make a solo living. Since this is the prevailing tendency nowadays among youngster, Tide has to find ways to retain the brand loyalty among its consumers.
In study initiated by A.C. Nielsen, it was revealed that solo flight individuals, belonging to the age range 35 and younger, are less likely to buy traditional packaged laundry detergent. They opted to purchase single package, laundromat vending machine products and/or use wash/dry/fold services instead (Mogolensky, 1996). Moreover, a child who has grown with less or no responsibility is more likely to avail other laundry products instead of using Tide. Thus, Tide has to ensure that its consumers will retain its loyalty once they get married or built their own family by providing a sound branding link that would begins from the moment the daughter decides to leave their home and the time she get married.
Aside from the issue of establishing a secured brand link, P&G must, among any other else considered first the issue of marketing mix and its importance, which has a direct impact on its appeal to the target consumers and to the company as a whole.
Price – Being the most powerful tool in marketing, price is identified following the company’s established goals and objectives. These goals range from enhancing the market share of the products, improving the demands in the target markets, to extending the sales at an even rate for one whole day, week, month, or year. Pricing is utilized in several ways namely (1) to increase unit sales so that resources of the firm; (2) to restrict sales, or limit the quantities demanded per unit time;(3) to make the market less attractive to actual or potential competitors; and (4) to attract buyers so that they will buy other items once the transaction has begun.
Today, P&G pricing of Tide detergent soap proves to be an effective means not only to attract consumers but also to lessen the market appeal of its competitors. These had been the case in India, where P&G had launched the 20-50% discounts for both Ariel and Tide. As a result, buying Tide has become an economic-wise option for the larger masses. The prime purpose was to lure more consumers to try the product. With the slashed price, volumes of Tide sales have surged tremendously triggering (Chatterjee, 2004).
Product-Service Offering – Product-service offering, on the hand involves the offerings that can be manipulated. These include the features or attributes (actual or perceived), images, warranties, after-sales service, training for the customers, delivery, installation of the product, and responsibility for the product at the end of its productive life.
Tide’s usefulness expires as soon as the laundry is finished, but this is not to suggest that P&G will not be held liable after its use. As in the usual trend nowadays, providing a somewhat feedback mechanism is indeed useful. Although, this has long been realized by the P&G that’s why in every sachet/package of Tide one would notice phrases like “if you have comments/ suggestions…” However, only few of the modern consumers know of this right. Usually, they are contented with using the products, and no longer care less with how much the company would appreciate their effort to give them a ring or write them. P&G should reinforce the message to its consumers with their TV/radio/net ads so that the consumers would know of their rights. In return, the company would be able to know directly for costumers how they feel about the products, what they think of it, what recommendations they can provide etc.
“Tide” as a brand name is an excellent choice. It passes on the messages of supremacy and toughness. Tide has been renowned by its reputation of complimenting the ever-changing people’s temperaments for fashion. When, white fabric has been the overwhelming obsession, Tide with whitening power has been introduced. Likewise, when bright colors reigned, P&G led the campaign for Tide “extra action” specializing on bright-colored clothes.
Promotion – In 1999, Procter and Gamble spends nearly $5.5 billion on global advertising making it one of the world’s biggest advertisers. Procter and Gamble exhausts the benefits of both the print and electronic media worldwide (Himelstein and Galuska, 1999).
Today, the existence of Internet and the continued revolution in the world of Information Technology are certainly positive signs for the blossoming of many new advertising opportunities. For instance, pop-up ads and email ads have started to invade the Internet. Most advertising firms have also started to exert efforts to make their advertisements appealing to the public (McAndrews & Roberds, 2001). Further, personal selling, sales promotions, in the forms of souvenirs, and point-of-purchase displays (POP), publicity through non-paid presentation of the product to the target market (feature articles and special news coverage), and public relations (established link with the stakeholders. Similarly, TV and radio advertising are also important channels to further promote Tide. Usually, effective television and radio advertising involves a good opening punch line, presentation of the competitor’s product (brand must not be mentioned) and its weakness, testimony of experts or renowned personalities/authorities, and in some cases, use of famous movie actors and actress also helps.
Drawing the attention of the Internet users obviously would not readily move them in to action. It is very important, then to make some ways or employ some effective techniques to further engage them in the site (see www.tide.com site). Thus, a thorough consideration must be given to the content of the site. Content’s breadth, depth, manner of presentation, and timeliness are what primarily holds the attention of visitors. The more engaging is the site, the greater the possibility that the consumers will act positively to the ads. Lastly, it is very vital indeed to retain the site in order to engage site’s visitors. To do this, the site must always be monitored and updated. It must also provide venue where visitors could give their comments, recommendations, and other feedbacks to the site or the product so that improvements may be incorporated accordingly.
Effective promotion of the product through advertising in various media maintains the superior standing of the product in the wide detergent marketplace.
Place/Distribution – Decisions involving the place/distribution are also crucial in meeting the needs of the target market. There are many factors to consider such as the choice of location where the product will be sold to the consumers, and the various channel distribution required to bring the product in the target market. Elements of distribution channel include the packaging, storage facilities, transportation, and the members of the channel itself (producers, brokers, retailers and households. It is always relevant to choose a channel pattern that is suitable for the target market needs. Thus, if the targets are the women who are working, selling directly to the Internet and through various salespeople is the best choice. However, Tide being a product that serve to satisfy the immediate nee of people must always be available in both retail stores and wholesalers’ stores.
On the one hand, packaging the product involved the following considerations; packaging must (1) facilitate storage and handling of the product, (2) protect Tide for extreme temperature or moisture, (3) protect Tide from being deformed or damaged, (4) to provide quantity, source (brand), and the concerned party to be called in times of any trouble with the products occur and, (5) isolate appropriate purchase quantities. Colors of the packaging materials (sachets and the like) must be bright colors to instantly capture the attention of the consumers. It does matter, too if the words are clearly comprehensible for the consumers. On the one hand, it is a minus factor when the words written in the packaging materials are of different language. This implies that the company is not “in communion” with the consumers since it further indicates that the target consumers are of someplace else.
Meanwhile, storing Tide must be done complimenting the environmental rules of the place where it is to be stored. For effective handling of the storage costs P&G must inform its stakeholders, manufacturers and brokers about the various storage risks. These could range from fires, theft, or loss of market demand. There is also a need to further rationalize the supply chain management. P&G may opt to operationally implements the just-in-time management of products. The process may involve building of sound communication channels with the consumers, manufacturers, brokers, and other stakeholders (Ghosal and Bartlett, 1998).
In summary, the marketing strategy for P&G to promote Tide detergent laundry soap consists was founded on the considerations of various marketing mix (4Ps). Pricing decisions was done considering the demographic and socio-economic attributes of its target market. Product-service offerings included a sound feedback mechanism. On the one hand, P&G focused on net advertising for Tide and its related products. Lastly, decisions on place/distribution were shared by various stakeholders – manufacturers, retailers, broker, and the customers. Thus, the international marketing superiority of Tide is irrevocable.
Future Trends on Emergence
As a natural process of reaction in the product marketing, the dynamic and diverse consumer preferences and behavior is the most predicted trend that will affect the marketing strategy of P&G for Tide. Due to different geographical location, cultural beliefs and practices, and personal indifferences, various segments of the current marketing strategy are subject to possible changes.
Additionally, environmental factors are also trends to be considered. With the awareness and promotion of the harmful effects of non-biodegradable detergents to the environment is a serious matter Tide must tackle. Pro-environment advocates maintain their standing on protecting nature against the usage of harmful substances.
Economically, the consistent evaluation of economic situation and stability of the market is a powerful trend that will greatly affect the product especially to other countries covered by its patronization. A close contact is very necessary.
Further, the company management is also considered as contributor for future trends in the product. The human resource function of the company must maintain its esprit de corps to all the people involve in the production up to the marketing of the product. Unified workforce and harmonious relationship to the market guarantees continued growth and success.
International Marketing
The international marketing of P&G for Tide is highly significant. Basing it from the facts gathered in this research, it could be concluded that the international marketing of Tide is effective. Its continuous commitment in achieving its goals defines its success and further utilization. Every business must know how to stay in competition in order to survive in the market. In terms of competition one great and possible strategy to do is a possible merger, a joint ventures or a strategic alliances. By doing this kind of strategy it will lessen the competition in the market. In general, it is better to understand that the driver of firm profitability in a competitive market is a key marketing challenge and strategy.
In conclusion, this marketing srategy analysis was able to identify the different resources of P&G’s Tide. This report clearly stresses that despite the success of any company, constant strategic change and development is essential. This in turn, can help ensure the businesses’ future progress.
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