Assignment on Marketing Strategy – Ariel

Assignment on Marketing Strategy – Ariel

Introduction

The current assignment deals with the detailed study of an organization that is in the marketing of the detergent. The detergent organization chosen for the assignment is Ariel. The assignment consists of two parts. The first part describes about the company’s marketing audit, SWOT analysis, competitive advantage in the form of USP, evaluating the marketing strategy and market position relating to other organizations. Second part of the assignment gives the study about the organization’s goals and objectives, segmentation, targeting and positioning the product in the market, marketing strategies and marketing mix. Second part of this assignment also comprises of the study of how to increase the market share and increase profits and brand reputation and awareness.

Ariel: In the modern world, Ariel is considered as one of the best detergents worldwide. Ariel introduced itself into the market in the year 1967 coming up with the combination of a compound based on enzyme and encapsulated bleach which was an innovation of that time. In 1980’s and 1990’s, the other detergents offered whiteness and brightness to the clothes but for only two three washes. And then in the year 1992, an innovation from Ariel came in the form of bleach free detergent, which brightened the clothes and prevented them from fading.  In 2001, in order to save time, liquitabs were introduced to give unbeatable results easily and quickly. Ariel is a brand of P&G with its headquarters in Ohio, USA. (Ariel, 2016)

Situational analysis:

Swot analysis:

Strengths:

• It is a product of one of the leading company Procter and Gamble. P&G is the parent company of Ariel.
• In the sector of detergent, it is the worldwide leader.
• Guarantees to remove the stains. The toughest of the stains can be removed in one wash only.
• It uses the enzyme technology.
• Sweet smells and fragrances inside detergents were first introduced by ariel.
• Holds a good market share.

Weakness:

• The tactics and strategies involved in the promotional activity is not good.
• There are regular intervals. It is not continuous. There is availability of intermittent.
• The strategies involved in pricing of the product is not proper. There are fluctuations in the prices.
• Advertisement is also not done properly. The value in advertisement is not recalled.
• There are large number of competitors available in the market.

Opportunity:

• The detergent market is huge. It amounts to almost 5700,000,000.
• The market in the rural sector is not fully tapped. There remains a large portion in the rural market which is untapped.
• As it holds a large part of the market share, it has the potential to very much become the leader in the detergent market.
• Increase the awareness of the product.

Threats:

• There are other players in the detergent market that exists.
• The substitute of the product is easily available in the market, especially in the rural areas.
• There is intense competition in terms of pricing in the market.

Pestle analysis:

• This refers to how the company is effected to different factors (P- political, E- economic, S- social, T- technological). This PEST analysis is done on ariel in UK.

Political factors: UK operates under the system of parliament. There are opportunities for the organizations that operate within the country. There are both positive and negative effects of the political factors on the company.

Positive effects-

• The people in the country are greatly influenced by the inner workings.
• The government in the nation is very active, which has a direct effect on the company. Government being active or inactive largely effects the company.
• The political situation in the country is stable. It is not disturbing. This has a positive effect on the organization.
• The administration is further divided in the national and local level. It makes easy for the company to easily interact with the administration.

Negative-

• The corruption is involved in the system.
• Decision making on Brexit. There is a great effect which is put upon by the Brexit on the organization.

Economic factors: The position in terms of economy of UK is relatively higher as compared to other countries. The economic factors are as follows:

Positive-

• The rank in terms of GDP worldwide is 5th. In Europe, it stands 2nd.
• Small markets can also make good profits as there is huge population in the country.
• Both public sectors and private sectors are there in the economy.
• The market is free i.e. there is free entry and exit of the firms.
• More FDI.

Negative-

• There was recession in the year 2008, and after that period the recovery has been slow.
• In order to provide facilities to the general public like free services and order aids, lots of financial resources have been spent.

Social factors: In PEST analysis, social factors are very important. They are the all-round performances. The factors are as follows:

Positive-

• There are many facilities which are provided to the public free of cost.
• The population is very dense amounting to around 65 million.
• The place is not restricted for migrants. Around 13% of the population is born outside the country, resulting in lowering the cost of the workplace.
• The living standard of the people is high.

Negative-

• The dependency ratio is continuously rising and is high.
• The education is becoming expensive with high costs.

Technological factors: As the country is well equipped in terms of economic development, it also has good resources for technologies. Technological factors having the effect on United Kingdom are-

Positive-

• The skills involved in innovation are of good quality and good effects.
• Great experience and experts in IT sector.
• Strict laws and effective when concerned about the property.
• There exists competition, which is helpful is providing growth within the nation.

Negative-

• When compared to United States, the development in the field of technology is slow.

Environmental factors: Over the past many years Ariel has been able to maintain a good reputation worldwide in the detergent sector by effectively using the renewable source of energies and by doing sustainable development. The customers of Ariel believes that the product is eco-friendly.

Legal factors: Different countries have different rules and regulations regarding the different companies. Ariel needs to make strategies and decisions keeping in mind the laws, rules and regulations of UK. (Bush, 2016)

Competitive advantage (UPS)

USP stands for unique selling propositions. The advertising campaign for the company needs to be successful for the growth of the company and it is a theory can results or clarifies in success of the advertisement. Every company have some sort of a unique feature which it tends to make it the personal brand. It is also used to provide a description of a product which is similar to that product or the product of the competitor. The USP (unique selling proposition) of Ariel is that it has been in the market for past number of years. It is also recognized as a detergent which can be used to remove even the toughest of the stains. It was also the first company to introduce fragrance in the detergents.

Differential advantage:

It means the distinctive feature or advantage that a company or a product have over the product of its competitors prevailing in the market. The consumers in the market have several options for a particular product. Differential advantage refers to the observation by the targeted audience on the product of a company over the products offered by the competitors. Through this advantage, a company is able to establish leadership in the market. One of the main benefits for Ariel is the brand symbol of Ariel detergent. It is regarded as one of the best brands worldwide in terms of detergents. Ariel is able to establish thinking in the minds of the targeted audience that no other detergent is able to remove the toughest of the stains better than Ariel. Responsibilities, like corporate social responsibilities also have a vital role in expanding the competitive advantage for Ariel. (The Economist, 2015)

Evaluation of current marketing strategy:

Growth: In the market of UK, Ariel is regarded as one of the best categorised of detergents, and is able to position itself in such a way in the market. It is able to give stiff competition and eliminate its competitors. It has recently introduced medium priced products to compete with the rivals who are giving products at low prices. The main aim of these medium priced detergents to compete against low priced detergents and equip large area in the market. To provide growth, it has been continuously doing promotional activities and the advertisements have been put to great effect.

Sales trend:  The diagram below clearly shows that there is stiff competition in the market in the detergent sector. The other brands in the detergent sector have equal share in the market and exist equally in the market and top of it these competitors provide products at lower costs which serves as a great threat to the company.

Profitability: There are many competitors in the detergent factor in the UK market and Ariel has done exceptionally well when it comes to profitability comparison. Ariel being regarded as the best quality product, the prices are high and the customers relates the prices of the detergent as the quality of the detergent and yield high revenues from the sales. It is the best and leading brands in the sector od detergents of all time. In UK the profitability for Ariel is high as compared to the profitability of its competitors. (Ariel, 2016)

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Part 2

Segmentation targeting and positioning

Segmentation: Customer segmentation is based on the value of the customer. The identification of the potential customer is essential for the any company. Ariel also segments its customers accordingly. Ariel is a part of the market which is growing at a very fast rate. As the market is already existing the segmentation of the customers became a lot easier task. Categorizing the customer become easier when the market already existing.

The segmentation of the detergent market has two most dominant categorization: Psychographic and Demographic segmentation. Marketing segmentation is a strategy of dividing the customer with similar buying pattern and habits. They are a group pf people with the similar needs and hence they buy the same products. Ariel is a single product that is required by all segments of the society but the size of the packet they purchase also vary. The ways to segment the market for the detergent are as follows:

Demographic segmentation: Ariel is mostly used by the young and middle aged women who wash clothes of their family. Married women consume the product in large quantity as they wash clothes of entire family. Washing powder is used by all the section of the society irrespective of their occupation and educational background.

Geographic segmentation: The major usage of premium detergent is the urban area. The major share of sales come from the large cities. In rural areas people are still dependent on local detergents. The company sells its premium products in urban areas and low range products in rural areas.

Psychographic segmentation: Washing powder or bars is an essential requirement for all the people irrespective of their personality and lifestyle. The upper middle class is brand conscious so they go for expensive products.

Behavioural segmentation: The usage of the detergent is irrespective of the behaviour of the people. Mostly people don’t have brand loyalty when it comes to FMCG products. People are just interested in benefits while using the FMCG goods. (Mindtools, 2016)

Targeting: Ariel is a FMCG product required in every house for the purpose of washing clothes. Ariel targets itself in all sections of the society such as upper, middle and lower class. All class of people need to wash their clothes. Ariel has launched small sachet for lowers section of people who cannot buy a large packet. The major collection of Ariel is from large cities. The major targets of Ariel are the ladies of household who wishes to keep their clothes clean and in good condition. In the process of targeting the specific group of customer their needs and desires have to be identified. The size and capacity of the target customer have to be identified. The size of the target market have also to be identified. All the segments of market have to be considered. Promotion have to be made to increase the market share of the product. Large and premium products are sold to the niche market area while the smaller and less expensive detergents and bares are sold in the smaller segments. Lastly the services that the company can offer to the customer have to be identified. All the barriers affecting the targeting process of the company have to be understood. Strategies must be made to overcome these barriers. The company must try to gain the competitive advantage. Threats and opportunities that might affect the company have to be identified. (Anand, 2009)

Positioning: Ariel is a trusted brand detergent which is found in most of the households. The product is best known for the satisfaction of the customer. This product is better than all the competitors so has a brand loyalty. This product is creating an easy lifestyle for its customers. The image of Ariel is good in the minds of the customers so the customer don’t give a second thought before buying the product. The positioning of the product is strong in the eyes of the customers. The brand name and its packaging also determine its sales. The positioning of the product should be stronger in respect with its competitors. The positioning of the company must be better than the competitors in order to attract the customers. The packaging and advertisement improve the positioning of the company.  (Bhasin, 2016)

Recommended objective and goals (Smart): 

Smart goals and objective can be adopted by the team, organization or the individual to increase the efficiency.

S stands for specific: All the “Wh” question are answered under this category such as who, what, when, why, when and where. The basic goal of the business have to be identified. Who are the investors in the business? What is the sole purpose of the business? The location of the business have to be identified. When the business have to be started.

M starts for measurable: In this category the progress of the business is measured in the limited time frame. How far is the goal of business have to be also estimated? The experience and achievement of the employees is measurable.  (Pilley, 2014)

A stands for Achievable:Is this task it is to be estimated that is it practical to achieve the goal of the company. It is very important to estimate the goal of the company. The steps in attaining the goal of the company have to be figured. The strategies must be changed when the company is reaching closer to attaining the goal of the company.

R stands for relevant:The goal of the company must be realistic and must be achievable. The employees and manager must coordinate in order to make the goal of the company real. The goal must be able to direct the company in the line of success.

T stands for timely: The goal of the company must be attained within a subscribed time frame. The things must be kept on track and targets must be completed on time. Completing the target on time is very essential for increasing the performance of the company.  (Bright Hub, 2016)

Recommend marketing strategies, based on the application of the marketing mix of ariel:

Ariel is the washing detergent sold under the parent brand Proctor and Gamble. The marketing mixes of Ariel are as follows:

Product: Ariel is the premium quality of detergent mostly popular for removing the stains from the clothes. The detergent is suitable for use in washing machine and also used for washing clothes manually. Aril has been in demand in the market from a longer period of time. The product does not have any bleaching action on the clothes and does not spoil he colour of the clothes. Ariel has introduced a lot of innovation in the product like introducing fragrance and power bristles. Ariel has been introduced in the bar and gel form to gain competitive advantage over the similar brand in the market. (Nawaz, 2011)

Price: The price of the Ariel is bit higher than the competitors as Ariel delivers quality detergent. Ariel is known for making clothes white in a single wash. The pricing strategy of Ariel is in accordance with the premium range of detergents available in the market. P&G has a separate team dedicated in deciding the price of the product. The price of the detergent is bit higher as compared to the competitors but Ariel is dedicated tin providing the premium quality powder. Ariel has become favourite product of the house wives as children put a lot of stains. People are ready to pay higher price for the detergent as it does not harm the quality of cloth. The target market of Ariel is mainly upper middle class who can pay higher price for the quality. For lower middle class people Ariel has launched small sachet. For the rural area Ariel has launched low price products which have expanded the company in the rural areas too. (Mokgata, 2013)

Place: P&G introduced Ariel in UK market in 1967. The company has extended it market in many companies in many countries like Japan, India, China, Peru and Brazil. The distribution network of the company is very strong and it supplies its product eve in the remote areas. The incentives provided to the distributors are also very high in the company. In every country there is a national centre from where products are distributed to the remote areas. The company owns many warehouses from where the product is supplied directly to the retail stores. The Ariel adopts penetration policy for the distribution so that the detergent is also available in the remote location. Every superstore we visit has an availability of Ariel. The company has much association with the super stores in the urban areas so that the store adopts the placement strategy. Ariel has started its online store and is also available on leading sites on internet.

Promotion: Ariel has a very strong promotion strategy to order to increase the market share of the product. Ariel uses many channels for promotion of the product. Ariel employs the use of latest technology in the making of the detergent. It becomes essential for them to promote their new innovation to increase the brand awareness of the product.

Ariel adopts the strategy of mass marketing in order to market on a large scale. Very attractive advertisement is made on the television and radio in order to attract the new customer. The packaging of the product has to be made attractive in order to increase the sale of the company. Ariel also advertise its detergent on the internet. There are many campaigns launched by P&G to promote Ariel. (Aperio, 2016)

Conclusion

The present assignment describes the marketing strategy of the Ariel which is a flagship company of P&G. The SWOT analysis helps in determining the strength and weakness of the company. PESTEL analysis finds the various legal, environmental, social and technological factor attached with the marketing of the product. Proper business strategy must be selected for promoting the product. The competitive advantage of Ariel is gained by providing superior quality of detergent. Segmentation of the market in done in order to target the potential customer. Positioning of the product is done to attract the customer.

Smart objective of the company are decided by the company in order to obtain its goal. SMART stands for specific, measurable, achievable, reliable and time-oriented. Marketing mix of the company can be achieved by choosing the proper marketing strategy of the company. The 4P of the company are promotion, place, price and product.

References

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