Procter and Gamble’s Tide

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.