Description
It analyses the brand Tide in a market(Pune, India). It analyses the detergent and the bar. It studies various marketing concepts for the product. It also details P and G(proctor and gamble) and Tide as global brands.
Product Assessment Interim Report TIDE DETERGENT
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
CONTENTS
1) EXECUTIVE SUMMARY…………………………………………………………………….. 3 2) INTRODUCTION……………………………………………………………………………….. 4 a) HISTORY b) ABOUT P&G c) TIDE DETERGENT d) TIDE BAR 3) THE FMCG SECTOR…………………………………………………………………………… 7 a) FMCG: KEY POSITIVES b) FMCG: KEY NEGATIVES 4) DRIVERS OF MARKETING………………………………………………………………….. 9 a) NEED b) WANT c) DEMAND 5) SEGMENTATION OF DETERGENT MARKET………………………………………… 10 6) ADOPTION AND DIFFUSION OF TIDE IN MARKET………………………………. 11 7) MARKETING MIX………………………………………………………………………………. 12 a) PRICE b) PROMOTION c) PLACE d) PRODUCT i) VARIETY ii) QUALITY iii) PACKAGING iv) SIZE 8) MODE OF WORK……………………………………………………………………………… 16 a) MINUTES OF MEETING b) FUTURE COURSE OF ACTION 9) REFERENCES……………………………………………………………………………………. 17 10) OUR CONTACT DETAILS……………………………………………………………… 17
Page 2
MARKETING ASSIGNMENT I
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
1. Executive Summary
Tide is world’s oldest and most trusted detergent brand and is the market leader in 23 countries around the world. Tide has been promising “Outstanding Whiteness” for white clothes and a good cleaning for colored clothes. They have been actively promoting this idea in their advertisements and have been successful in creating an image in the minds of consumers. Tide was launched with cost tags below its main competitors and has since been preferred. Market has adopted the product for its satisfying results. In this report, we weigh the Tide detergent against many factors that are prevalent in market. Tide’s adoption in market, users’ views and expectations, non?users’ criticism and points of concern have been dealt with. Drivers of marketing and the mix that Tide follows have been carefully studied. Tide was launched in India in mid?2000. It is marketed by Procter & Gamble. P&G is a renowned name in Hygiene & Health care and Home Products around the world. In India, P&G owns products like Ariel, Head and Shoulders, Pantene, etc. P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company, USA, which in India, has carved a reputation for delivering superior quality, value?added products to meet the needs of consumers.
MARKETING ASSIGNMENT I
Page 3
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
2. Introduction
“Tide is the first big change in soap making in 2000 years.” Neil Hosler McElroy, President, Procter & Gamble, quoted in Time, October 5 1953. This statement sums up the impact that Tide detergent has had in detergent market. P&G launched Tide in mid?2000 in India. Tide detergent is the largest selling detergent in the world. Here, we look into a brief history of P&G and Tide detergent.
a. History
Early 1920s saw Americans using soap flakes to clean their laundry. The flakes performed poorly in hard water, leaving a ring in the washing machine, dulling colors, and turning whites gray. Procter & Gamble began an ambitious mission to change the way Americans washed their clothes. Researchers discovered two?part molecules which they called synthetic surfactants. Each part of the "miracle molecules" executed a specific function??one pulled grease and dirt from the clothes, while the other suspended dirt until it could be rinsed away.
In 1933, this discovery was introduced in a detergent called "Dreft", but it could only handle lightly soiled jobs. The next goal was to create a detergent that could clean heavily soiled clothes. That detergent was Tide®. Created in 1943, Tide detergent was the combination of synthetic surfactants and "builders". The builders helped the synthetic surfactants penetrate the clothes more deeply to attack greasy, difficult stains. Tide was introduced to test markets in October 1946 as the world’s first heavy?duty detergent. Consumer response was immediate and intense. Tide detergent outsold every other brand within weeks. It became so popular that store owners were forced to limit the quantity purchased per customer. Tide was touted as "America's Washday Favorite". Tide detergent was improved 22 times during its first 21 years on the market, and Procter & Gamble still strives for perfection. Tide is recognized for its distinctive orange?and?yellow bull’s eye logo. The original logo was designed by Donald Deskey, a famous industrial and identity designer. Tide was the first product to be nationally packaged using Day?Glo colors, strikingly eye catching when first introduced. The logo people see today is a product of a slight modification for the product's fiftieth anniversary in 1996. MARKETING ASSIGNMENT I Page 4
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
Currently, the Tide brand is given to over half a dozen powders and liquid detergents in the United States alone. The potential of dodecyl benzene sulfonate, the basis for Tide, was confirmed by SRI in 1948 through strategic scientific and business consulting activities for the petroleum company Chevron. In Latin America the Tide formula is marketed under the name “Ace” and in Turkey under the name “Alo”.
b. About P&G
Two billion times a day, P&G brands touch the lives of people around the world. Globally, P&G has a d a & 4 a o s turnover of about $40 Billion, has on?the ground operations in over 80 countries and offers over 300 superior quality brands to the world’s consumers. P&G invests US $1600 million in R&D ahead of w s G a most of its global c ompetitors, to ensure innovative and superior quality products. It has o ver 7,500 n d u c scientists working at 22 researc h centers in 12 countries around the world. t 1 n D s P&G In dia has a turnover of Rs. 750 Crores. It has in its portfolio P &G’s Billion Dollar Brands such as i Tide, Ariel, Pantene (World’s number 1 bea uty shampoo), Whisper, Pampers, Rejoice (Asia’s Number m s 1 shampoo), Vicks and Head and Shoulders (World’s number one Anti Dandruff shampoo). s e G P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Co mpany, USA, which in n u r m India, has carved a reputation for delivering superior quality, value?added products to meet the needs of consumers. f
c. Tide Detergent
d Tide is the world’s oldest and most trusted Billion Dollar Detergent and it is the market leader in 23 countries around the world. La unched in India in mid?2000, the brand has gained popularity among d 0 e w e Indian housewives, thanks to i ts superior whitening, creative advertising and its Value?for?Money t r proposition. Tide is P&G’s single?largest brand in the world, with annual sal es of US$ 3.6 Billion, P e nearly 10% of total P&G Sales a nd was the World’s First Synthetic D etergent, after the bar. MARKETING ASSIGNMENT I Page 5
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
Tide’s unique “outstanding whiteness” comes from its ‘anti?re disposition’ global technology which it employs. These Anti?re deposition Agents help keep soils from re?settling on clothes after they have been removed during the wash itself. Tide’s Fabric Whitening Agents deposit on fabrics during laundering to enhance brightness of light colored fabrics. Tide improves the washing experience through its pleasant "lemon" perfume that lingers on the clothes hours after the washing and leaves clothed bright white and prevents them from turning yellow. It does not bleach or remove color from a garment.
Creative Advertising starring Shekhar Suman, ‘White Stripe’ Campaign and the recent ‘Bagbhan’ Commercial have help made Tide a household name. Tide enables the homemaker to spend more time with her family and keeps her family looking their best through clean and 'bright white' clothes. It is available in packs of 200 gm for Rs. 11, 500 gm for Rs. 26, 1 kg for Rs. 51, 2 kg and 4 kg. It is also available in 20 gm single use sachets. In 2006 the development of Tide was designated an ACS National Historical Chemical Landmark in recognition of its significance as the first heavy?duty synthetic detergent. Each year, researchers duplicate the mineral content of water from all parts of the United States and wash 50,000 loads of laundry to test Tide detergent’s consistency and performance.
d. Tide Bar
Tide also has a solution for consumers who prefer bat to detergent. The same quality of superior whiteness through tough dirt removal comes in form of Tide Bars also. Tide bar is different from the standard bars available in the market. Its three features as claimed by P&G make it an Ideal washing bar: • It has green speckles called Whiteons, a P&G proprietary technology to deliver superior whiteness, which is further enhanced when clothes are being dried under the sun, as Whiteons release a unique whitening action on reacting with sunlight.
MARKETING ASSIGNMENT I
Page 6
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
• Its technology also ensures that it lasts longer, does not dissolve easily and delivers a good balance between bar?hardness and ease of application on clothes.
•
It has a lemony & refreshing fragrance that lingers on clothes hours after wash.
It provides outstanding whiteness on white clothes and provides excellent everyday cleaning for colored clothes too, and is available at Rs. 5 for a 75gm. bar, Rs. 8.50 for a 125gm. bar, and Rs. 13 for a 200gm. bar.
3. The FMCG Sector
It is fuelled by growing fascination of youth towards the fast moving consumer goods (FMCG) and rising income levels. The FMCG market in rural and semi?urban parts is likely to grow at a faster pace in the next three years while the urban areas may register a drop in growth.
The rural market contributes 52% to the total FMCG market in India, which is expected to grow by 10% by 2010, driven by 180 million young populations. The semi?urban market is expected to grow by 6% in the next three years and contribute 21% to the country’s total market, up from 19%. In urban India the market size is estimated at 29% that is likely to come down to 22% by 2010 as consumers are becoming more health conscious and shift away towards adoption of organic products.
As per industry estimates, the total size of domestic FMCG market in volume terms is $15 billion, of which $7.9 billion come from rural areas and $2.85 billion from semi?urban markets while metros and other cities contribute $4.2 billion. The government’s permission to 100% FDI in FMCG will further fuel the growth in rural and semi?urban India. Most players like Dabur, Colgate, Britannia, Godrej, Nestle and HLL have invested in new manufacturing locations in tax?attractive states like Uttaranchal, Jammu, and Himachal. A 10?year excise and IT holiday and 50% cut on Income Tax for the next five years in these states would enable these companies to improve margins and net profit significantly w.e.f the next financial year.
MARKETING ASSIGNMENT I
Page 7
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT a. FMCG – Key Positives
• Rural penetration levels are still low. Also, according to estimates, only about 7?8% of the total food production is consumed in processed form. This speaks for itself, highlighting the scope for growth. The planned development of roads, ports, railways and airports, will increase FMCG penetration in the long term.
•
As growth has shown signs of slackening companies are increasingly focusing on key products and brands, cost efficiencies and rural markets. This is a sign of market sophistication, both from the manufacturer's point of view as well as the consumer's point of view.
•
Owing to India's cost advantage, many MNC companies have started using their Indian operations as their manufacturing base. Alternatively, some Indian companies have tested foreign shores like Bangladesh, Sri Lanka and the Middle East among others.
b. FMCG – Key negatives
• Weakness in the economy has led to a slowdown in demand for FMCG products. The top line growth of many FMCG majors has thus, declined. New entrants in the sector over the last few years have heightened competition in key segments like soaps and detergents, putting pressure on profitability.
•
The infrastructure for free transport of goods is not adequate in the country. Also, the fall in agricultural output continues to cast on FMCG sector's prospects in the short term.
•
A large part of the branded market continues to be threatened by spurious goods and illegal foreign imports. In times of weakened consumer demand such menaces continue to nightmares to large companies.
MARKETING ASSIGNMENT I
Page 8
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
4. Drivers of Marketing
a. Need
A basic human requirement for a product or a service is a need. Such essential requisites are the ideal situation for a marketer to come up with a product that can address these needs. Clothing is one of the basic necessities for humans and hence washing becomes indispensible as long as the clothing has to be reused. Hence cleaning agents such as soaps and detergents or their equivalents can be found around the globe in one form or another. Tide is a global leader in the detergent marker and has the high customer brand recall value in the segment. Therefore when it comes to satisfying the washing requirement the first brand that an average person turns to is Tide, if not because of any other factor, then simply because of its presence in a vast number of markets.
b. Want
Wants are expressions of interest and desire for a product or a service that one makes to either the society or to oneself. The wants of a customer are the focus of a marketer. Wants are a basic premise required for the demand to be generated. If the want for a product cannot be generated in a customer, there will be no demand for the product. Washing in general is both a need as well as a want. The ‘want’ factor is because the customer sees clean and hygienic attire as a desirable condition. P&G has always projected Tide as a brand which addresses the desire of the customer for cleanliness, this can be seen when the advertisements for Tide talk of ‘Outstanding Whiteness’ and excellent cleaning on colored clothes.
c. Demand
All the need and want for a product without the ability to pay for the product will amount to little. Therefore when there is situation where need, want and the ability to pay coincide, then there is demand for the product.
MARKETING ASSIGNMENT I
Page 9
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
To be sure that the prospective customers are in a position to pay for the product, a marketer has to ensure that the product is within reach of the customer. Therefore questions of pricing and selling unit size become crucial. These factors come into play even more when faced with FMCG products such a Tide detergent. Tide is available in numerous sizes from 6 Kg Jumbo down to 200 grams and for daily consumption Sachets (20 grams). This range ensures that the users have a wide range of sixes according to the usage. The pricing of Tide is very reasonable when it is compared to Surf Excel or Ariel (in the Indian Context). It is evident that Tide has positioned itself as brand that can be trusted as tough on stains and offers freshness as one of its attributes.
5. Segmentation of Detergent Market
Detergents sector is divided into four segments: • • • • Economy (less than Rs.25 per Kg) Mid?Priced (Rs.25 to Rs.90 per Kg) Premium (Rs.90 to Rs.120 per Kg) Compact (more than Rs.120 per Kg)
Tide is placed in the Mid?Priced segment along with HUL’s offering Surf Excel Blue. Ariel and Surf Excel are in the Premium segment. The Economy segment does not have any entries from either HUL or P&G. This Economy segment is dominated by Nirma and other locally made detergents of the region. The total market of detergents in India is upwards of 23 tonnes. 30% of this overall market is made up of detergents and soaps made from vegetable oil (unorganized). The synthetic detergent market accounts for 60% of the remaining market and the synthetic soap cakes take up the rest. The division of the detergent market into various segments makes sense because the different categories of customers have different needs and different expectations from the product that they buy. Hence there is very little competition and switch over from one segment to another by the customers. But, within the segment there is a scramble for the customer’s attention. Hence when P&G dropped prices of its two main detergent brands – Ariel and Tide by 28% and 45% respectively in early 2004, there was a swift response from the market leader HUL which slashed prices by a similar margin. MARKETING ASSIGNMENT I Page 10
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
6. Adoption and Diffusion of Tide in Market
In the Powder Detergent Segment it is crucial that the awareness of the brand among the customers is very high. Correspondingly, the presence of the brand at the places that the shoppers buy the product should be high. Tide was introduced to the Indian market in the year 2000 and hence started with a huge disadvantage when it was vying for the lead spot in the powder detergent market that has a number of established players including HUL’s Surf and indigenous products such as Nirma. Advertising and creating brand awareness was crucial for Tide to lure customers to its product and so it carried out a blistering launch campaign in 2000?01 wherein the objective was to make customers switch over from their regular brand to Tide. Various promotional methods such as gifts, free sample packs and demonstrations were used. The product’s price advantage and quality have helped it reach out to new customers. The word?of? mouth from the early adopters also helps speed up the diffusion process of Tide. The value proposition of ‘Whiteness’ is also a prominent promotional tool which helps the customer recall the brand.
MARKETING ASSIGNMENT I
Page 11
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
7. Marketing Mix
a. Price
It is one of the most important variables in the marketing mix and has a very important role to play in influencing the final consumers of the product. The various tools available to a marketer under this component of the marketing mix are: • List Price • Discounts • Incentive Schemes • Price Validity • Payment Terms It was observed that the Pricing of Tide was very aggressive with cost of 1kg of the detergent being Rs 51. This when compared with the quality offered by TIDE is a good deal. The variant is also priced at the same price. The price of TIDE detergent bar is Rs8.50 for 125 grams. The promotions offered at present were Jumbo pack offers on Tide i.e. 6 kg pack (2*3kg) was offered at Rs 290.
b. Promotion
TIDE is one of the largest selling brands of P&G and the company promotes it in a very aggressive manner. Tide has considerable exposure in terms of Television commercial and focuses on its tagline “Power of Sun”. Creative Advertising campaigns with Shekhar Suman, ‘White Stripe’ Campaign and the recent ‘Bagbhan’ Commercial have help made Tide a household name. Tide under its promotion strategy created India’s Longest Clothesline and entered Limca Book of Records with demonstration of Tide’s Superior Value.
MARKETING ASSIGNMENT I
Page 12
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
c. Place
The distribution network of TIDE was studied and it was found to have the following structure:
Goods from Production centre are routed to the Company Depots which are regionally distributed. It is then forwarded by two methods i.e. either through Distributors or Carrying and forwarding agents. These intermediaries then either pass on the product to Retailers or Wholesalers depending on the geography of the place of sale. The large retail chains of Spencer’s, Food Bazaar or India Bulls have direct distribution channel through the company depots or distributors.
d. Product
Product is the backbone of the marketing mix and thus getting the various components of this variable right is one of the major concerns of the company. An analysis of TIDE on the various parameters under the product mix is as follows:
MARKETING ASSIGNMENT I
Page 13
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
i) Variety
Tide is currently being offered in the following forms: • Detergent Powder ? This is in the form of washing powder and has two variants, the base product and the one with jasmine fragrance. • Cake Form ? This is in the form of detergent cake for washing. It has green speckles called Whiteons, a P&G proprietary technology to deliver superior whiteness, which is further enhanced when clothes are being dried under the sun, as Whiteons release a unique whitening action on reacting with sunlight.
ii) Quality
Tide maintains high quality and consistency in a sense that it is soft on hands and clothes. This brings better washing experience and shine in the clothes. This is possible, due to its ‘anti?re disposition’ global technology which Tide employs. These Anti?re deposition Agents help keep soils from re? settling on clothes after they have been removed during the wash itself. Tide’s Fabric Whitening Agents deposit on fabrics during laundering to enhance brightness of light colored fabrics. Tide improves the washing experience through its pleasant "lemon" perfume that lingers on the clothes hours after the washing and leaves clothed bright white and prevents them from turning yellow. It does not bleach or remove color from a garment.
iii) Packaging
Packaging has a very important role to play in drawing the attention of the consumers. And in a market as competitive as the detergent industry where actual product differentiation is really difficult it becomes all the more crucial to have a packaging that makes a particular product stand out among the rest. TIDE uses a very bright color i.e. Orange for all its packaging. Its combination of bright orange and yellow color makes it very distinct in shops and is very eye candy. The package is good against moisture and contamination.
MARKETING ASSIGNMENT I
Page 14
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
iv) Size
Product Sizes available in the market are displayed in the table below:
Tide Detergent Powder 20 grams sachets 200 grams 500 grams 1 kilogram 2 kilograms 4 kilograms
Tide Detergent Cake 75 grams 125 grams 200 grams
MARKETING ASSIGNMENT I
Page 15
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
8. Mode of Work
a. Minutes of Meeting
Date 24 July 2008 Agenda Prepare a list of retailers & distributors to visit. Find information about the product in detail. Carry out survey at important places in the city. Course of Action Visited various retail stores like Spencer’s, More and India Bulls. Visited a distributor to gain knowledge about logistics and delivery operations. Survey was carried out on J.M. Road, F.C. Road, Pune Central, surrounding villages near Deep Bangla Chowk to touch customers of all backgrounds. Report structuring was done. Tasks assigned to members of group. Result Achieved Final reach of the product from Factory to Shelf understood. Product’s market and penetration understood. Drawbacks and advantages for the entire cycle understood. A comprehensive data about Tide and Non?Tide users collected. Important points regarding the product highlighted by customers from different strata of the society.
31 July 2008
7 August 2008
Final Report structuring decided.
A comprehensive report was made with contribution from each individual.
b. Future Course of Action
The following future course of action has been chalked out by the team to develop a comprehensive understanding of the product: • A visit to a Sales Manager of Tide detergent for comprehensive understanding of the supply of product and aspects related to its marketing. Survey to be broadened even further and data to be collected from other cities as well. Thorough knowledge exchange with customers as well as retailers about the product. This will help in understanding the requirements of sellers and market expectations.
• •
MARKETING ASSIGNMENT I
Page 16
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
9. References
1. http://www.pg.com 2. http://www.pg?india.com 3. http://www.tide.com 4. http://www.livemint.com 5. http://www.fmcgmarketers.blogspot.com
doc_765080959.docx
It analyses the brand Tide in a market(Pune, India). It analyses the detergent and the bar. It studies various marketing concepts for the product. It also details P and G(proctor and gamble) and Tide as global brands.
Product Assessment Interim Report TIDE DETERGENT
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
CONTENTS
1) EXECUTIVE SUMMARY…………………………………………………………………….. 3 2) INTRODUCTION……………………………………………………………………………….. 4 a) HISTORY b) ABOUT P&G c) TIDE DETERGENT d) TIDE BAR 3) THE FMCG SECTOR…………………………………………………………………………… 7 a) FMCG: KEY POSITIVES b) FMCG: KEY NEGATIVES 4) DRIVERS OF MARKETING………………………………………………………………….. 9 a) NEED b) WANT c) DEMAND 5) SEGMENTATION OF DETERGENT MARKET………………………………………… 10 6) ADOPTION AND DIFFUSION OF TIDE IN MARKET………………………………. 11 7) MARKETING MIX………………………………………………………………………………. 12 a) PRICE b) PROMOTION c) PLACE d) PRODUCT i) VARIETY ii) QUALITY iii) PACKAGING iv) SIZE 8) MODE OF WORK……………………………………………………………………………… 16 a) MINUTES OF MEETING b) FUTURE COURSE OF ACTION 9) REFERENCES……………………………………………………………………………………. 17 10) OUR CONTACT DETAILS……………………………………………………………… 17
Page 2
MARKETING ASSIGNMENT I
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
1. Executive Summary
Tide is world’s oldest and most trusted detergent brand and is the market leader in 23 countries around the world. Tide has been promising “Outstanding Whiteness” for white clothes and a good cleaning for colored clothes. They have been actively promoting this idea in their advertisements and have been successful in creating an image in the minds of consumers. Tide was launched with cost tags below its main competitors and has since been preferred. Market has adopted the product for its satisfying results. In this report, we weigh the Tide detergent against many factors that are prevalent in market. Tide’s adoption in market, users’ views and expectations, non?users’ criticism and points of concern have been dealt with. Drivers of marketing and the mix that Tide follows have been carefully studied. Tide was launched in India in mid?2000. It is marketed by Procter & Gamble. P&G is a renowned name in Hygiene & Health care and Home Products around the world. In India, P&G owns products like Ariel, Head and Shoulders, Pantene, etc. P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company, USA, which in India, has carved a reputation for delivering superior quality, value?added products to meet the needs of consumers.
MARKETING ASSIGNMENT I
Page 3
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
2. Introduction
“Tide is the first big change in soap making in 2000 years.” Neil Hosler McElroy, President, Procter & Gamble, quoted in Time, October 5 1953. This statement sums up the impact that Tide detergent has had in detergent market. P&G launched Tide in mid?2000 in India. Tide detergent is the largest selling detergent in the world. Here, we look into a brief history of P&G and Tide detergent.
a. History
Early 1920s saw Americans using soap flakes to clean their laundry. The flakes performed poorly in hard water, leaving a ring in the washing machine, dulling colors, and turning whites gray. Procter & Gamble began an ambitious mission to change the way Americans washed their clothes. Researchers discovered two?part molecules which they called synthetic surfactants. Each part of the "miracle molecules" executed a specific function??one pulled grease and dirt from the clothes, while the other suspended dirt until it could be rinsed away.
In 1933, this discovery was introduced in a detergent called "Dreft", but it could only handle lightly soiled jobs. The next goal was to create a detergent that could clean heavily soiled clothes. That detergent was Tide®. Created in 1943, Tide detergent was the combination of synthetic surfactants and "builders". The builders helped the synthetic surfactants penetrate the clothes more deeply to attack greasy, difficult stains. Tide was introduced to test markets in October 1946 as the world’s first heavy?duty detergent. Consumer response was immediate and intense. Tide detergent outsold every other brand within weeks. It became so popular that store owners were forced to limit the quantity purchased per customer. Tide was touted as "America's Washday Favorite". Tide detergent was improved 22 times during its first 21 years on the market, and Procter & Gamble still strives for perfection. Tide is recognized for its distinctive orange?and?yellow bull’s eye logo. The original logo was designed by Donald Deskey, a famous industrial and identity designer. Tide was the first product to be nationally packaged using Day?Glo colors, strikingly eye catching when first introduced. The logo people see today is a product of a slight modification for the product's fiftieth anniversary in 1996. MARKETING ASSIGNMENT I Page 4
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
Currently, the Tide brand is given to over half a dozen powders and liquid detergents in the United States alone. The potential of dodecyl benzene sulfonate, the basis for Tide, was confirmed by SRI in 1948 through strategic scientific and business consulting activities for the petroleum company Chevron. In Latin America the Tide formula is marketed under the name “Ace” and in Turkey under the name “Alo”.
b. About P&G
Two billion times a day, P&G brands touch the lives of people around the world. Globally, P&G has a d a & 4 a o s turnover of about $40 Billion, has on?the ground operations in over 80 countries and offers over 300 superior quality brands to the world’s consumers. P&G invests US $1600 million in R&D ahead of w s G a most of its global c ompetitors, to ensure innovative and superior quality products. It has o ver 7,500 n d u c scientists working at 22 researc h centers in 12 countries around the world. t 1 n D s P&G In dia has a turnover of Rs. 750 Crores. It has in its portfolio P &G’s Billion Dollar Brands such as i Tide, Ariel, Pantene (World’s number 1 bea uty shampoo), Whisper, Pampers, Rejoice (Asia’s Number m s 1 shampoo), Vicks and Head and Shoulders (World’s number one Anti Dandruff shampoo). s e G P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Co mpany, USA, which in n u r m India, has carved a reputation for delivering superior quality, value?added products to meet the needs of consumers. f
c. Tide Detergent
d Tide is the world’s oldest and most trusted Billion Dollar Detergent and it is the market leader in 23 countries around the world. La unched in India in mid?2000, the brand has gained popularity among d 0 e w e Indian housewives, thanks to i ts superior whitening, creative advertising and its Value?for?Money t r proposition. Tide is P&G’s single?largest brand in the world, with annual sal es of US$ 3.6 Billion, P e nearly 10% of total P&G Sales a nd was the World’s First Synthetic D etergent, after the bar. MARKETING ASSIGNMENT I Page 5
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
Tide’s unique “outstanding whiteness” comes from its ‘anti?re disposition’ global technology which it employs. These Anti?re deposition Agents help keep soils from re?settling on clothes after they have been removed during the wash itself. Tide’s Fabric Whitening Agents deposit on fabrics during laundering to enhance brightness of light colored fabrics. Tide improves the washing experience through its pleasant "lemon" perfume that lingers on the clothes hours after the washing and leaves clothed bright white and prevents them from turning yellow. It does not bleach or remove color from a garment.
Creative Advertising starring Shekhar Suman, ‘White Stripe’ Campaign and the recent ‘Bagbhan’ Commercial have help made Tide a household name. Tide enables the homemaker to spend more time with her family and keeps her family looking their best through clean and 'bright white' clothes. It is available in packs of 200 gm for Rs. 11, 500 gm for Rs. 26, 1 kg for Rs. 51, 2 kg and 4 kg. It is also available in 20 gm single use sachets. In 2006 the development of Tide was designated an ACS National Historical Chemical Landmark in recognition of its significance as the first heavy?duty synthetic detergent. Each year, researchers duplicate the mineral content of water from all parts of the United States and wash 50,000 loads of laundry to test Tide detergent’s consistency and performance.
d. Tide Bar
Tide also has a solution for consumers who prefer bat to detergent. The same quality of superior whiteness through tough dirt removal comes in form of Tide Bars also. Tide bar is different from the standard bars available in the market. Its three features as claimed by P&G make it an Ideal washing bar: • It has green speckles called Whiteons, a P&G proprietary technology to deliver superior whiteness, which is further enhanced when clothes are being dried under the sun, as Whiteons release a unique whitening action on reacting with sunlight.
MARKETING ASSIGNMENT I
Page 6
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
• Its technology also ensures that it lasts longer, does not dissolve easily and delivers a good balance between bar?hardness and ease of application on clothes.
•
It has a lemony & refreshing fragrance that lingers on clothes hours after wash.
It provides outstanding whiteness on white clothes and provides excellent everyday cleaning for colored clothes too, and is available at Rs. 5 for a 75gm. bar, Rs. 8.50 for a 125gm. bar, and Rs. 13 for a 200gm. bar.
3. The FMCG Sector
It is fuelled by growing fascination of youth towards the fast moving consumer goods (FMCG) and rising income levels. The FMCG market in rural and semi?urban parts is likely to grow at a faster pace in the next three years while the urban areas may register a drop in growth.
The rural market contributes 52% to the total FMCG market in India, which is expected to grow by 10% by 2010, driven by 180 million young populations. The semi?urban market is expected to grow by 6% in the next three years and contribute 21% to the country’s total market, up from 19%. In urban India the market size is estimated at 29% that is likely to come down to 22% by 2010 as consumers are becoming more health conscious and shift away towards adoption of organic products.
As per industry estimates, the total size of domestic FMCG market in volume terms is $15 billion, of which $7.9 billion come from rural areas and $2.85 billion from semi?urban markets while metros and other cities contribute $4.2 billion. The government’s permission to 100% FDI in FMCG will further fuel the growth in rural and semi?urban India. Most players like Dabur, Colgate, Britannia, Godrej, Nestle and HLL have invested in new manufacturing locations in tax?attractive states like Uttaranchal, Jammu, and Himachal. A 10?year excise and IT holiday and 50% cut on Income Tax for the next five years in these states would enable these companies to improve margins and net profit significantly w.e.f the next financial year.
MARKETING ASSIGNMENT I
Page 7
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT a. FMCG – Key Positives
• Rural penetration levels are still low. Also, according to estimates, only about 7?8% of the total food production is consumed in processed form. This speaks for itself, highlighting the scope for growth. The planned development of roads, ports, railways and airports, will increase FMCG penetration in the long term.
•
As growth has shown signs of slackening companies are increasingly focusing on key products and brands, cost efficiencies and rural markets. This is a sign of market sophistication, both from the manufacturer's point of view as well as the consumer's point of view.
•
Owing to India's cost advantage, many MNC companies have started using their Indian operations as their manufacturing base. Alternatively, some Indian companies have tested foreign shores like Bangladesh, Sri Lanka and the Middle East among others.
b. FMCG – Key negatives
• Weakness in the economy has led to a slowdown in demand for FMCG products. The top line growth of many FMCG majors has thus, declined. New entrants in the sector over the last few years have heightened competition in key segments like soaps and detergents, putting pressure on profitability.
•
The infrastructure for free transport of goods is not adequate in the country. Also, the fall in agricultural output continues to cast on FMCG sector's prospects in the short term.
•
A large part of the branded market continues to be threatened by spurious goods and illegal foreign imports. In times of weakened consumer demand such menaces continue to nightmares to large companies.
MARKETING ASSIGNMENT I
Page 8
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
4. Drivers of Marketing
a. Need
A basic human requirement for a product or a service is a need. Such essential requisites are the ideal situation for a marketer to come up with a product that can address these needs. Clothing is one of the basic necessities for humans and hence washing becomes indispensible as long as the clothing has to be reused. Hence cleaning agents such as soaps and detergents or their equivalents can be found around the globe in one form or another. Tide is a global leader in the detergent marker and has the high customer brand recall value in the segment. Therefore when it comes to satisfying the washing requirement the first brand that an average person turns to is Tide, if not because of any other factor, then simply because of its presence in a vast number of markets.
b. Want
Wants are expressions of interest and desire for a product or a service that one makes to either the society or to oneself. The wants of a customer are the focus of a marketer. Wants are a basic premise required for the demand to be generated. If the want for a product cannot be generated in a customer, there will be no demand for the product. Washing in general is both a need as well as a want. The ‘want’ factor is because the customer sees clean and hygienic attire as a desirable condition. P&G has always projected Tide as a brand which addresses the desire of the customer for cleanliness, this can be seen when the advertisements for Tide talk of ‘Outstanding Whiteness’ and excellent cleaning on colored clothes.
c. Demand
All the need and want for a product without the ability to pay for the product will amount to little. Therefore when there is situation where need, want and the ability to pay coincide, then there is demand for the product.
MARKETING ASSIGNMENT I
Page 9
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
To be sure that the prospective customers are in a position to pay for the product, a marketer has to ensure that the product is within reach of the customer. Therefore questions of pricing and selling unit size become crucial. These factors come into play even more when faced with FMCG products such a Tide detergent. Tide is available in numerous sizes from 6 Kg Jumbo down to 200 grams and for daily consumption Sachets (20 grams). This range ensures that the users have a wide range of sixes according to the usage. The pricing of Tide is very reasonable when it is compared to Surf Excel or Ariel (in the Indian Context). It is evident that Tide has positioned itself as brand that can be trusted as tough on stains and offers freshness as one of its attributes.
5. Segmentation of Detergent Market
Detergents sector is divided into four segments: • • • • Economy (less than Rs.25 per Kg) Mid?Priced (Rs.25 to Rs.90 per Kg) Premium (Rs.90 to Rs.120 per Kg) Compact (more than Rs.120 per Kg)
Tide is placed in the Mid?Priced segment along with HUL’s offering Surf Excel Blue. Ariel and Surf Excel are in the Premium segment. The Economy segment does not have any entries from either HUL or P&G. This Economy segment is dominated by Nirma and other locally made detergents of the region. The total market of detergents in India is upwards of 23 tonnes. 30% of this overall market is made up of detergents and soaps made from vegetable oil (unorganized). The synthetic detergent market accounts for 60% of the remaining market and the synthetic soap cakes take up the rest. The division of the detergent market into various segments makes sense because the different categories of customers have different needs and different expectations from the product that they buy. Hence there is very little competition and switch over from one segment to another by the customers. But, within the segment there is a scramble for the customer’s attention. Hence when P&G dropped prices of its two main detergent brands – Ariel and Tide by 28% and 45% respectively in early 2004, there was a swift response from the market leader HUL which slashed prices by a similar margin. MARKETING ASSIGNMENT I Page 10
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
6. Adoption and Diffusion of Tide in Market
In the Powder Detergent Segment it is crucial that the awareness of the brand among the customers is very high. Correspondingly, the presence of the brand at the places that the shoppers buy the product should be high. Tide was introduced to the Indian market in the year 2000 and hence started with a huge disadvantage when it was vying for the lead spot in the powder detergent market that has a number of established players including HUL’s Surf and indigenous products such as Nirma. Advertising and creating brand awareness was crucial for Tide to lure customers to its product and so it carried out a blistering launch campaign in 2000?01 wherein the objective was to make customers switch over from their regular brand to Tide. Various promotional methods such as gifts, free sample packs and demonstrations were used. The product’s price advantage and quality have helped it reach out to new customers. The word?of? mouth from the early adopters also helps speed up the diffusion process of Tide. The value proposition of ‘Whiteness’ is also a prominent promotional tool which helps the customer recall the brand.
MARKETING ASSIGNMENT I
Page 11
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
7. Marketing Mix
a. Price
It is one of the most important variables in the marketing mix and has a very important role to play in influencing the final consumers of the product. The various tools available to a marketer under this component of the marketing mix are: • List Price • Discounts • Incentive Schemes • Price Validity • Payment Terms It was observed that the Pricing of Tide was very aggressive with cost of 1kg of the detergent being Rs 51. This when compared with the quality offered by TIDE is a good deal. The variant is also priced at the same price. The price of TIDE detergent bar is Rs8.50 for 125 grams. The promotions offered at present were Jumbo pack offers on Tide i.e. 6 kg pack (2*3kg) was offered at Rs 290.
b. Promotion
TIDE is one of the largest selling brands of P&G and the company promotes it in a very aggressive manner. Tide has considerable exposure in terms of Television commercial and focuses on its tagline “Power of Sun”. Creative Advertising campaigns with Shekhar Suman, ‘White Stripe’ Campaign and the recent ‘Bagbhan’ Commercial have help made Tide a household name. Tide under its promotion strategy created India’s Longest Clothesline and entered Limca Book of Records with demonstration of Tide’s Superior Value.
MARKETING ASSIGNMENT I
Page 12
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
c. Place
The distribution network of TIDE was studied and it was found to have the following structure:
Goods from Production centre are routed to the Company Depots which are regionally distributed. It is then forwarded by two methods i.e. either through Distributors or Carrying and forwarding agents. These intermediaries then either pass on the product to Retailers or Wholesalers depending on the geography of the place of sale. The large retail chains of Spencer’s, Food Bazaar or India Bulls have direct distribution channel through the company depots or distributors.
d. Product
Product is the backbone of the marketing mix and thus getting the various components of this variable right is one of the major concerns of the company. An analysis of TIDE on the various parameters under the product mix is as follows:
MARKETING ASSIGNMENT I
Page 13
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
i) Variety
Tide is currently being offered in the following forms: • Detergent Powder ? This is in the form of washing powder and has two variants, the base product and the one with jasmine fragrance. • Cake Form ? This is in the form of detergent cake for washing. It has green speckles called Whiteons, a P&G proprietary technology to deliver superior whiteness, which is further enhanced when clothes are being dried under the sun, as Whiteons release a unique whitening action on reacting with sunlight.
ii) Quality
Tide maintains high quality and consistency in a sense that it is soft on hands and clothes. This brings better washing experience and shine in the clothes. This is possible, due to its ‘anti?re disposition’ global technology which Tide employs. These Anti?re deposition Agents help keep soils from re? settling on clothes after they have been removed during the wash itself. Tide’s Fabric Whitening Agents deposit on fabrics during laundering to enhance brightness of light colored fabrics. Tide improves the washing experience through its pleasant "lemon" perfume that lingers on the clothes hours after the washing and leaves clothed bright white and prevents them from turning yellow. It does not bleach or remove color from a garment.
iii) Packaging
Packaging has a very important role to play in drawing the attention of the consumers. And in a market as competitive as the detergent industry where actual product differentiation is really difficult it becomes all the more crucial to have a packaging that makes a particular product stand out among the rest. TIDE uses a very bright color i.e. Orange for all its packaging. Its combination of bright orange and yellow color makes it very distinct in shops and is very eye candy. The package is good against moisture and contamination.
MARKETING ASSIGNMENT I
Page 14
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
iv) Size
Product Sizes available in the market are displayed in the table below:
Tide Detergent Powder 20 grams sachets 200 grams 500 grams 1 kilogram 2 kilograms 4 kilograms
Tide Detergent Cake 75 grams 125 grams 200 grams
MARKETING ASSIGNMENT I
Page 15
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
8. Mode of Work
a. Minutes of Meeting
Date 24 July 2008 Agenda Prepare a list of retailers & distributors to visit. Find information about the product in detail. Carry out survey at important places in the city. Course of Action Visited various retail stores like Spencer’s, More and India Bulls. Visited a distributor to gain knowledge about logistics and delivery operations. Survey was carried out on J.M. Road, F.C. Road, Pune Central, surrounding villages near Deep Bangla Chowk to touch customers of all backgrounds. Report structuring was done. Tasks assigned to members of group. Result Achieved Final reach of the product from Factory to Shelf understood. Product’s market and penetration understood. Drawbacks and advantages for the entire cycle understood. A comprehensive data about Tide and Non?Tide users collected. Important points regarding the product highlighted by customers from different strata of the society.
31 July 2008
7 August 2008
Final Report structuring decided.
A comprehensive report was made with contribution from each individual.
b. Future Course of Action
The following future course of action has been chalked out by the team to develop a comprehensive understanding of the product: • A visit to a Sales Manager of Tide detergent for comprehensive understanding of the supply of product and aspects related to its marketing. Survey to be broadened even further and data to be collected from other cities as well. Thorough knowledge exchange with customers as well as retailers about the product. This will help in understanding the requirements of sellers and market expectations.
• •
MARKETING ASSIGNMENT I
Page 16
PRODUCT ASSESSMENT INTERIM REPORT – TIDE DETERGENT
9. References
1. http://www.pg.com 2. http://www.pg?india.com 3. http://www.tide.com 4. http://www.livemint.com 5. http://www.fmcgmarketers.blogspot.com
doc_765080959.docx