Tide was introduced in 1946 as the world’s first heavy-duty detergent, and it outsold every other brand within weeks. It became so popular that store owners were forced to limit the quantity purchased per customer. Procter and Gambler’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 Breeze Freshness, Tide Goldwater, Tide with touch of Downy, Tide with Bleach, Tide with Bleach Alternative, Tide HE (High Efficiency), Tide Kick, Tide Sustaining, 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). Fifty years ago, Filipino housewives had to make do with soap flakes to clean their clothes. Soap flakes were not the perfect solution -? they couldn’t remove tough stains, dulled colors and often left white clothes drab and gray.
In hard water such as that found in deep wells, soap flakes didn’t lather and deposited a residue of scum in washtubs. Resourceful housewives had to work hard at inventing little tricks to keep their clothes as clean and as white as possible. In 1957, Tide revolutionized the way Filipinos did their laundry. The first heavy-duty synthetic detergent, Tide had a unique combination of cleaning agents that pulled away oils and grease from fabric, as well as “builders” -? compounds that penetrated clothes more deeply to attack difficult stains. This made Tide “the first big change in soap-making in 2,000 years.
STATEMENT OF THE PROBLEM How can Procter and Gambler’s Tide confront the challenge of introducing the product to a new variety of consumers? OBJECTIVES * To be able to introduce tide to untapped market * To be able to increase sales by tapping the untapped market * To be able exploit the true potential of Tide to its existing market AREAS OF CONSIDERATION The Impact of the ups on the sea’s: I ACCEPTABILITY I AFFORDABILITY I ACCESSIBILITY I AWARENESS I PRODUCT I PRIMARY BENEFITS I Additional Benefits I Additional Benefits I Additional Benefits I PRICE I Additional Benefits I PRIMARY BENEFITS I Additional
Benefits I Additional Benefits I PLACE I Additional Benefits I Additional Benefits I PRIMARY BENEFITS I I PROMOTION I Additional Benefits I Additional Benefits I Additional Benefits I PRIMARY BENEFITS I The framework that will be used in this case is The Marketing Mix and the sea’s of Marketing. Basically, there are 4 basic elements of the marketing plan of any business. One, the product – the business has to produce a product that people want to buy. It has to decide which ‘market segment’ it is aiming at – age, income, geographical location etc.
It then has to differentiate its product so that it is slightly efferent from what is on offer at present so that people or consumers can be persuaded to ‘give it a try. P&G has established Tide as the brand to go for when it comes to detergent. One of its selling points is can remove tough dirt stains. It also invested millions of dollars on research and development to further improve the product. Second, the promotion, customers have to be made aware of the product. The two main considerations are target market and cost.
A new business will not be able to afford to advertise on national television, for instance and would not wish to because its market will be local to start with. Leaflets, billboards, advertisements in local newspapers, Yellow Pages and Word of mouth’ would be more appropriate. This part for P&G will be easy since it invested millions of dollars in past for advertising. Third, the price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies.
The most commonly used are: * PENETRATION PRICING- charging a low price, possibly not quite covering costs, to gain a position in the market. This is quite popular with new businesses trying to get a toehold’. * CREAMING – the opposite of penetration pricing, this involves charging a deliberately high price to persuade people that the product is of high quality. Luxury car makers often use this strategy COST PLUS PRICING – this is the most common form of pricing. Costs are totaled and a margin is added on for profit to make the total price.
In a third world country such as ours, price is a very important factor in purchasing any product. The masses cannot purchase a detergent that is one eighth of its daily wage. Furthermore, if consumers can buy other detergent brand that does the Job as the branded detergent for half the price, the tendency is that consumers r the masses will buy or use the unbranded ones as long as it does the same Job. Lastly, the place, businesses must have a location that it can afford, and that is convenient and suitable for customers and any supplier.
Our country is one of the best places to sell detergent because most Filipinos have blue-collar Jobs. However, with the advent of the sea’s of Marketing we “can unlock the full market potential for any offering” (The sea’s of Marketing, 2012, Sheath and Cissoids). The benefits of which are: * Enables true customer eccentricity * Helps improve marketing productivity and accountability * Enables more effective resource allocation * Takes a holistic view of business success * Provides clear managerial prescription The AAA framework is a tool that helps marketers aligns their actions with the four essential values sought by customers.
These values can be summarized as: Acceptability – The extent to which the firm’s total product offering meets and exceeds customer expectations. It has two dimensions: functional acceptability and psychological acceptability. Affordability- The extent to which customers in the target market are able and willing to pay the product’s price. It has two dimensions: economic affordability (ability to pay) and psychological affordability (willingness to pay). Accessibility- The extent to which customers are able to readily acquire and use the product. It has two dimensions: availability and convenience.
Awareness – The extent to which customers are informed regarding product characteristics, persuaded to try it, and, if applicable, reminded to repurchase it. It has two dimensions: brand awareness and product knowledge. Looked at through the lens of the As, it becomes relatively easy to understand why products succeed or fail (The SEA’S of Marketing, 2012, Sheath and stood). ALTERNATIVE COURSES OF ACTIONS ACACIA: Improve marketing strategy of Tide products to cater to similar, complimentary or linked markets and by giving them the awards and recognitions for their loyalty in patronizing the products.
PROSE CONS I Increase Company’s productivity and sales. I Increase Company’s expenses. I Committed to the needs of the customers. I Creates a solid foundation of the products being sold and this will lead to an increase of customer’s loyalty worldwide. I I Creates better Image of the Company I Better appreciation of the customer’s patronage and contribution in the progress of he Company. I AC 2: Maintain its niche market. Filipinos value family time. I This move may be detrimental to P&G’s other products. I The wife and the husband may use tide simultaneously.
I AC 3: Develop a more sustainable or green marketing strategy through innovations. The implementation of green practices by P&G’s Tide will help to increase public awareness in protecting and saving the environment. I Require high cost structure. I Green publicity and a sustainable image is fast becoming a valuable asset to establish good client relations and recommendations. I May incur expenses for advertising and/or publication of the end products. I It ensures that our resources are not wasted, and that earth is left in good shape for future generations to live and thrive on.
I The consumer may not be aware of preserving limited resources. I DECISION CRITERIA Below are the proposed decision criteria which we find valuable for Procter & Gambler’s Tide Product. I Ease of I I Total I I Cost-Benefit I Implementation I Timing I Score I | (50%) | (30%) | (20%) | (100%) | COCA’S Improve marketing strategy of Tide Products | 45% | 28% 120% I 93. 00% | Manhattan niche market | 127% 118% 1 87. 0% | Develop a more sustainable or green marketing strategy through innovations 126% 116% 1 82. 00% | Cost benefit (50%) – Among the ACS which approach will be cost efficient as well beneficial to the firm in the long run?
Simplicity of Implementation (30%) – Among the ACS which is alternative is easy to implement? Timing (20%) – Among the ACS, which alternative is the most efficient? RECOMMENDATION Based on the established decision criteria, the group recommends AC 1, Improve marketing strategy of Tide products to cater to similar, complimentary or linked markets. Linked or Complimentary Market P&G has marketed Tide numerous times as the number one stain remover detergent; however, with the introduction of the “All Purpose” tide, it was not marketed as literally “All Purpose”.
Wherein Tide can be used in different household chores such as cleaning the bathroom, removing kitchen stains, washing the car, or even washing shoes. If Tide really wants to tap new markets, it has to change its perspective that Tide is Just a laundry detergent. In the case of its “All Purpose” detergent, it has to live up to its name. Tide should educate its users that Tide All Purpose is really an all around detergent and not Just for clothes. Let’s say the wife bought Tide All Purpose to wash the family’s clothes. The husband wants to wash the family car.
Instead of purchasing a separate soap to clean the car, the husband can use Tide All Purpose to clean the car. When P&G will advertise different uses of Tide, the company can tap linked or complimentary markets. Instead of buying a different soap for the husband’s car, the family can buy a bigger pack of Tide to use for different purposes. The competitor, Breeze, advertises its detergent can also be seed in washing shoes. The product may not be literally labeled as all-purpose, but it shows that it can be used in other things aside from washing clothes.
Pricing When you compare detergent prices in a supermarket, you will notice that Tides pricing is above the average of the other detergents. This means that Tides pricing is quite high for a minimum wage worker. With its price not affordable enough for the minimum wage worker, only the middle class or above the minimum wage employees can afford to purchase it. Looking at our country’s poverty stricken population, it is one fourth of our population. Minimum wage workers simply cannot purchase household necessities priced above the average of other necessities.
It will be impractical to purchase such. People will opt for the cheapest product that does the same Job as the branded ones. Brand Loyalty As indicated in the case, the target markets of Tide are households with tons of laundry. Moreover, it was also indicated that that brand loyalty could be passed from generations to generations. If this would be true, it would be hard for parents to impart their brand knowledge to their children because most of them would leave heir homes as early as 16 years old to go to college and live in the capital city.
Their children living in dormitories or in condominiums have no space and time to do their laundries. Instead, they send their dirty clothes to laundry shops. If P&G will continue to hold on this idea, it will be hopeless. Instead, P&G should focus on marketing Tide to laundry shops. It could be sold in sacks, instead of 5 keg bags. Laundry shops are now as ubiquitous as convenience stores and they are found in almost every street corner, catering to yuppies and students alike who have no time o do their laundry.
Tide will definitely lose its market if it keeps on holding to the idea that brand loyalty can be passed on from generation to generation. That idea may have been true in the past but is not applicable in the present. In giving credit to the loyal customers, P & G should put up an avenue by giving awards and recognitions to those consumers who have been there to witness the continuing progress of its tide products in order to sustain the viability of the products being sold to the consumers. In return, this will take a strong lead in the market as a whole.
In fact, this is part of the Corporate Social Responsibility of the Company to give back the fruits of its Company’s prosperity to those consumers who have been patronizing the products for so many years. Moreover, by doing these, the sustainability of the products being sold to the market will lead too good indicator that the products will remain to the hearts of every consumers and have a long- lasting effect to their lives as they continue to be part of the success of the Company. MARKETING PLAN Category I Strategy I Target Market I Business owners like laundry shops, sari-sari store, grocery store or convenient store.
Any of the spouses who are both working with the task to handle “budgeting” of the family’s expenses between the ages 25 and 55. I Positioning Statement I Affordable “All Purpose” Tide detergent that can remove tough dirt I Offering to customers I To educate all consumers about the tide stains. Products being sold in the market and to offer awards and recognitions to those consumers who have been there as loyal customers for the last five years onwards like for example, giving them the plaque of appreciation, cash incentive or discounts for any tide products.
I Price Strategy I To maintain the reasonable price this is Geiger than the competitors because of its high quality and effectiveness. I Distribution I The Company must concentrate on the consumer’s capacity to sell and buy the products in bulk or based on the volume of quantity purchased to be distributed to all laundry shop owners, sari-sari stores, grocery stores, convenient stores, wet market, and among others.
I Sales Strategy I Expand by 20% for this product line, hire a national account manager I Service Strategy I Available 24 hours through P & G Offices nationwide with its telephone numbers hotlist and internet website connections. I Promotion Strategy I Develop a strong convincing rower that focuses on the usefulness of the tide products, positioning, affordability, and its accessibility.