Marketing Project Analysis

Submitted by:
Section B | Group 10
Somyata Rastogi

15P070

Deval Nigam

15P080

Lipika Agarwal

15P090

Pallav Singhal

15P097

Pushkar Singh

15P100

Shrey Bhat

15P110

Vikas Gupta

15P120

(No. of Words: 4602)

Faculty: Dr Kanwal Kapil
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EXECUTIVE SUMMARY
In this report the product TIDE detergent has been examined in detail. TIDE is manufactured by
Proctor & Gamble, a listed firm. TIDE has been research with Indian context in mind though it was
introduced in USA in 1946.
First SWOT and PEST analysis was done to understand the "what" of product. Its landscape,
manufacturing bases, distribution network, political and technological forces acting on it in order to
devise an effective strategy. It was followed by Porter's five forces model to formulate an effective
marketing strategy.
Primary research was conducted with internet used as a medium to evaluate the brand perception
demographic and psychographic characteristics of the product. A consumer behaviour pattern was
inferred from the data collected and finally a conclusion regarding product positioning was suggested.

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Table of content
EXECUTIVE SUMMARY ............................................................................................................................................ 2
INTRODUCTION ....................................................................................................................................................... 4
SWOT ANALYSIS OF TIDE DETERGENT .................................................................................................................... 5
STRENGTHS ......................................................................................................................................................... 5
WEAKNESSES....................................................................................................................................................... 6
OPPORTUNITIES .................................................................................................................................................. 7
THREATS .............................................................................................................................................................. 7
PEST ANALYSIS OF TIDE DETERGENT ...................................................................................................................... 9
POLITICAL ............................................................................................................................................................ 9
ECONOMICAL ...................................................................................................................................................... 9
SOCIAL ............................................................................................................................................................... 10
TECHNOLOGICAL ............................................................................................................................................... 10
Indian Laundry Detergent market analysis ........................................................................................................... 11
Primary Market Research ..................................................................................................................................... 12
Porters 5 Forces Model for Tide .......................................................................................................................... 17
Bargaining power of consumers ....................................................................................................................... 17
Threat of substitute products ........................................................................................................................... 17
Threat of New Entrants ..................................................................................................................................... 18
Threat of Established Rivals .............................................................................................................................. 18
Threat from Suppliers ....................................................................................................................................... 18
Bargaining power of Suppliers .......................................................................................................................... 19
Positioning Strategy .............................................................................................................................................. 19
Conclusion ............................................................................................................................................................. 23
REFERENCES .......................................................................................................................................................... 23

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INTRODUCTION
Introduced in 1946 in America, Tide is a brand of a laundry detergent manufactured by Procter &
Gamble. The household chore of doing the laundry began to change with the introduction of washing
powders in the 1880s.The detergent business was further revolutionized with the discovery of the alkyl
benzene sulphonates, which, when combined with the use of chemical "builders", made machine
washing with hard water possible. This presented Procter and Gamble with the opportunity to create a
product such as Tide.
Tide was first introduced in U.S. test markets in 1946 as the world's first heavy-duty detergent, with
nationwide distribution accomplished in 1949. Tide claimed it was "America's Washday Favorite."
Tide was the first product to be nationally packaged using Day-Glo colorsstrikingly eye-catching
when first introduced in 1959. The Tide trademark is an easily recognized, distinctive orange-andyellow bulls-eye. The logo was slightly modified for the product's fiftieth anniversary in 1996, and
remains in use today.
In 2000, Procter & Gamble launched Tide into the Indian market. It soon became Indias largest
Brand by Value in the year 2003-2004. Growing in the market it overtook Rin and became the midtier laundry leader in the year 2006.
The Tide range in India includes Tide (Detergent) and Tide (Bar with Whitens). Later, Tide Naturals
was launched in India in December 2009. Packed with the benefits of lemon and Chandan, it provides
great cleaning while keeping the hands soft. These variants come handy in various packaging such 100
gm, 500 gm, 1 kg, 6 kg etc. It then also made Tide surpass Surf and turn out as urban Indias biggest
brand in the year 2011.
The same year, Tide also became Indias first 1000 crore brand.

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SWOT ANALYSIS OF TIDE DETERGENT

STRENGTHS
Company Reputation
The parent company of Tide detergent, Procter & Gamble (P&G) is one of the fastest growing
consumer goods company in India. P&G has 23 brands under its umbrella and enjoys total annual sales
of $1 billion to more than $10 billion. Nearly all of their $23 billion brands hold number one or two
position in their category or segment and hold tremendous value-creation potential.
Brand Value
In the year 2009, consumers ranked Tide among the top three brands that would be least likely to
give up during the Great Depression.
Tide became Indias first 1000 crore brand in the year 2011 surpassing Surf.
It has a global brand valuation of $3095 million, approximately 1964 crores (as of 2015)
Significant Market Share
The detergent market size in India has been estimated to be 12,000 crores. Tide is the 3rd largest in
mid level detergent market in India in year 2014, with 13.5% market share.
Ghari is the market leader in the detergent industry, with a market share of 17.3% and
Wheel is tagging behind closely at 16.9%. As in 2013, the global portfolio of P&G is led by a
collection of 25 billion-dollar brands, with contributing around $5 billion.
Lower Price and Good Product Quality
Since Tide caters to the middle class and lower middle class, it is very price competitive and happens
to be a better option than its competitors in the same segment. While other Indian value detergent
brands contain calcium carbonate and other insoluble cheap fillers that can be abrasive on fabric and
hands during the hand-wash process, Tide Naturals uses water-soluble sodium sulphate that helps
provide the additional benefit of keeping peoples hands soft.

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Distribution Effectiveness
Tide leverages on the sales and distribution network of the parent company P&G. Elements of
distribution channel include the packaging, storage facilities, transportation and the members of the
channel itself (producers, brokers, retailers and households).
Other distribution channels include supermarkets, convenience stores and kirana stores and also the
paan shops in the rural areas.
Promotional Effectiveness
In June 2007, at Hyderabad, Tide went out of the box and involved society in its promotional event to
illustrate its superior value offering to the consumers. For this, Tide conceptualized and realized
Indias longest Clothesline which ran around the famous Necklace Road on the perimeters of Hussain
Sagar Lake in Hyderabad. The Clothesline went for about 5 kilometres and comprised 2400 clothes.
This has also been recorded in the Limca Book of records.
TV and radio advertising are important channels and they usually start with good punch line like,
chauk gaye?. They also have a good recall value.

WEAKNESSES
Relatively Low Market Penetration
The product penetration of Tide is much lower as compared to its tough competitors like Ghari. For
instance, Ghari had substantial sales in 19 states and a wide network of 3500 dealers.
Low Technological Utilization
The competitors have leveraged high mobile penetration to co-ordinate with distributers through
mobile application. This has resulted in real time stock monitoring and monitoring of Sales persons
and has increased their effectiveness. P&G lacks in this aspect and finished ERP implementation
recently.
Sparse Manufacturing Locations
P&G has just 5 manufacturing sites in India as against Ghari which has 21. P&Gs recent attempts to
scale up its manufacturing capacity has not yielded fruitful results.

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Substitute Products at The Same Price

Since Tide caters to a very price sensitive market, it is very easy for people to shift with the current
explosion of choices. Products like Wheel, Rin, Ghari happen to be its tough contenders and can serve
as substitutes in absence of adequate technological innovation on Tides part.

OPPORTUNITIES
High Growth Market
The detergent market is expected to grow at 20% annually and hence provides Tide ample
opportunities to grow its revenues and market reach.
Rural Penetration
Since about 70% of Indias population resides in the rural areas, Tide has ample opportunities to tap
the rural market potential by effective strategy and pricing.
Technological Leverage
About 40% of Indian market is saturated with regional and small unorganized players, so it can
increase its sales and distribution by utilizing mobile applications to monitor sales activity and track
distributors positions using GPS in real time.
Scope for Innovation
The rapidly changing lifestyle of people in India calls for constant innovation and up gradation of the
existing product. Better and new variants of better quality and low price could be conceptualized.

THREATS
Price Wars
Right since it was launched, it has been involved in a consistent price war with its competitors. For
example, with Rin and later, in 2011-2012, Ghari went on to grab the first position in terms of market
share in India. This was mainly because of the fact that they had targeted their segment accurately and
indulged in affordable pricing to capture the rural market and the lower middle class population of
India.

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Implications in Manufacturing Expansion

P&G is unable to leverage its manufacturing capabilities to enable economies of scale. Its attempt to
set up manufacturing site in the outskirts of Hyderabad has run into government interventions and
legal issues. Even attempts towards third-party manufacturing has ended in legal issues. For example,
the case of JHS Svendgaard case in Himachal Pradesh.
Strong Competitors from Home Grown Brands
Market share of Tide has decreased substantially over a decade and a half due to proliferation of home
grown brands like Ghari and Wheel detergents. These brands have captured the rural demand across
the Indian market and have bolstered their presence in many states. Tide is unable to leverage its core
competencies in manufacturing capacity and employee effectiveness.

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PEST ANALYSIS OF TIDE DETERGENT

POLITICAL
JHS may take P&G to court for ending contract for producing Tide detergent
Procter & Gamble India could face a legal challenge from one of its leading contract manufacturers,
JHS Svendgaard, for not renewing a contract to make Tide detergent. The contract manufacturer
claims that a plant in Kalaamb, Himachal Pradesh was set up in 2010 to exclusively make Tide
detergent and that it would suffer considerable financial losses because of the move.
HUL files a suit on February 25, 2010 against P&G for false claims on Tide Naturals
P&G responds by claiming that there is no suggestion that natural ingredients of lime and sandal have
been used to benefit the skin and provide best whiteness. The generic word 'naturals' does not
communicate the presence of natural ingredients. The Madras High Court on March 1 issued an order
to P&G to modify its advertising for Tide Naturals to clarify prominently to consumers that the
detergent does not contain lemon and sandal.

ECONOMICAL
Effect of Inflation
At the time of inflation, the purchasing power of consumers decline. They become choosy, bargain for
better deals; buy bulk or economy packs and postpone discretionary purchases. Tide has come out with
bulk packets containing more quantity to be bought at a single time interval. People will be willing to
spend more if inflation comes down.
Tide Loses Market Share
According to a recent report, P&G continues to lose market share in spite of investments being made.
P&G, parent company of Tide and Ariel, had slipped to just 18% market share. This came as a shock
since a growth had been expected. Majority of the share had been eaten by Ghari.

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Tide caters to the middle class

Tide is the detergent to use for the middle class. As a result of growing number of middle class
consumers in India, Tides market is continuing to grow. The purchasing power of the lower middle
class has grown allowing them to upgrade their product category and buy products in a higher stratum
such as Tide.

SOCIAL
In its latest effort to raise awareness on the importance of laundry room safety, P&G brand Tide is
partnering with Safe Kids Worldwide, a non-profit organization working to keep kids safe from
preventable injuries. The partnership marks the launch of the Up, Up and Away campaign, a laundry
safety initiative reminding parents and caregivers to seal laundry detergent packs up, store packs up,
and keep packs away from children.
Tide Bars Remains Popular With Housewives
The Ad campaigns of Tide underlined under the theme: Chaunk Gaye? White ho to Tide ho. The ads
showcase the detergent's cleaning power and superior value proposition that Tide offers i.e. high
performance at low cost. Indian households are run by women and they believe that one of the ways
they can contribute to the family is by making the most of their budget. They use these bars for the
results and the quality of wash they get.
Indians love tough and long lasting things in all sorts of products they use. In many houses, people
even use Tide bars to wash their cooking utensils. These ad campaigns have no emotional aspect but
bring out social consciousness of white clothes that is so prevalent in India. Thats why Tide bars
continue to be popular and why bars hold a 40% share in the market in spite of the benefits of
detergents

TECHNOLOGICAL
A host of leading laundry detergent brands, including Ariel, Tide and Ace, will have phosphates
eliminated within two years, Procter & Gamble announced. This is because phosphates were
responsible for environmental degradation.
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According to The New York Times, 1,4-dioxane, a petrochemical solvent found in paints, varnishes,
and some cosmetics, are high in levels in the product Tide. Procter & Gamble has agreed to
reformulate Tide and other popular laundry detergents to reduce contamination. The giant
multinationals action came in response to a lawsuit filed last year by an Oakland-based non-profit
called As You Sow.
Tide provides Outstanding Whiteness on white clothes & excellent cleaning on coloured clothes as
well. This is possible, due to its anti-redeposit ion global technology which Tide employs. These
Anti-redeposit ion agents help keep soils from re-settling on clothes after they have been removed
during the wash itself.

Indian Laundry Detergent market analysis

Indian laundry detergent market is at a mature growth phase in FMCG sector. It is a competitive
market with eroding profit margins. Competition includes presence of both MNCs & Indian players.
MNCs include global leaders like Hindustan Unilever Ltd. & Proctor and Gamble, whereas home
grown Rohit Surfactant Ltd, the makers of Ghari, & Nirma Ltd have also made a remarkable market
share in the Indian laundry detergent industry. HUL & P&G dominates the premium and mid-priced
segment, whereas the low price segment is dominated by Ghari & Nirma. The detergent market in
Indian context has grown from 57 billion $ in 2003 to 130 billion $ in 2011, at an average growth rate
of approximately 11% per year. It is marked to be valued at 241 billion $ by 2017. The per capita
consumption of detergent is very low in India as compared to other economies: it was close to 2.7 Kg
per person annually in 2011 compared to close to 10 Kgs per person annually in USA & present
scenario hasnt changed much. Indian Detergent market can be classified into detergent powders and
cakes. Indian urban consumers prefer detergent powders, whereas, detergent cakes are preferred in
rural India. But, over the last few years rural consumers are shifting to detergent powders. Rural
market being price sensitive, many MNCs have introduced their low priced detergent products like
Tide naturals introduced by P&G at a lower price, to tap this new demanding markets, but these
products face a big challenge from the local players. This segment is witnessing huge R&D research to
make the offering more affordable without compromising on quality.
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Primary Market Research

To study and analyze the behavior of consumers of tide, we have prepared an online survey to get the
consumer inside. While preparing the survey we kept following things in mind:
1. Decision making process of consumers
2. Purchase behavior of consumers
3. Also compare tide with other competitive products available in market
The results of the survey are as follows:
1. Demographic profile of respondents:
Here, we took gender profile and age of the respondents into consideration to have their
demographic profile.
a) Gender profile: After analysis of the responses of our survey we found that over 70%
respondents were males and approximately 25% among them were females.

b) Age profile: Primarily our target group was youngsters. And according to data we received we
found that almost all our respondents were belong to the age group of 15-35 years.

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2. Income profile: More than 70% of our respondents were having income higher than 40
thousand and more. This signify that they belong to middle to rich income group.

3. Brand Preference: When we asked people to choose amongst the top brands, they would prefer
to buy. Here, we gave them the option to pick all the brands they would prefer (multiple
options). Close to 75% respondents chose Surf Excel along with other brands. It came out that
Tide would be chosen by 38% of the respondents.

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4. Buying Factors: When we asked respondents to choose amongst the factors (multiple
selections allowed) they consider while picking the detergent from the shelf of a glossary
store, we came to know about the two prime factors of Brand equity and price effectiveness.
Also, factors like quality, offers & fragrance came out to be some of the factors.

5. Shopping Destinations: We also, asked our respondents about their shopping preferences, to
analyze the buying habits of the respondents for the detergent. Most of the respondents, close
to 62%, are in the habit of buying their detergent, from the local departmental stores, whereas,
retails stores & super markets were preferred by almost one third of the respondents. Online
market for detergents came out to be in nascent stage.

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6. Monthly Consumption: We took average monthly consumption into account. When we

asked the respondents about the monthly consumption of detergents, close to 40% of the
respondents told they have an average consumption of 250-500 grams of the detergent per
month & it mostly depends on their family size.

7. Family Size: Most of our respondents, close to 81%, were from a family of 3-5 members &
their average consumption falling in the range of 250-750 grams. With close to 6% respondents
either living alone or in a family of two & their average consumption falling in the range below

250 grams of detergent. Close to 12% respondents were living in a joint family or a family
with more than 5 members, with their average consumption falling in the range above 500
grams.
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8. Tide Factor: when we asked our respondents to choose amongst the factors by which they
remember tide or relate it to (multiple selection allowed), Tides price effectiveness came out be
its prime differentiating factor along with its whitening effect. Fragrance and product packaging
were some of the other prime qualities of the Tide that our respondents thought would have
forced them to buy Tide.

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Porters 5 Forces Model for Tide

Bargaining power of consumers
The consumers for washing can be broadly divided into three categories- bar users, detergent users and
washing machine users. As far as Tide is concerned, it manufactures both bars and detergents.
Tide is P&Gs entry into the middle tier of the segment. For the premium category of detergents, P&G
has its Ariel brand. The bargaining power of the consumers is high in case of Tide due to a variety of
substitutes available. HUL, RB and others, all have certain detergent in this range and hence present a
lot of opportunity for switching the brand.
Also, there cant be a major price hike when it comes to the detergent. This is because; even a small
hike in price can alter the preferences and make the consumer shift to another brand. Also, Tide is the
delicate position of being in the middle tier. Hence, consumers on the fringe of the middle tier can
always take a leap forward or backward and shift to premium or lower quality washing materials
respectively.

Threat of substitute products

Tide is a middle level washing material with detergent and powder variant. This segment is overloaded
with competitors from HUL, RB and small players such as Ghardi and Nirma. Tide, being in the
middle segment occupies a delicate position which in beneficial but at the same time harmful. Tide has
various substitute products for not only its own segment users but also for borderline consumer users
who may jump or down to go for tide.
Any compromise on Tide whether on quality or price can have an adverse effect on its sales. As far as
Tide bars are concerned, consumers can end up shifting to other bars such as Rin. For the lower
quality detergents, consumers on Tide may want to save some money and go for cheaper products in
the market such as Nirma or Wheel. At the same time, if the market conditions are good enough and
the purchasing power increases, people may end up spending more on quality and go for higher
category detergents such as Surf Excel. Hence, this delicately poised situation for Tide is something
that it needs to navigate cleverly throughout.

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Threat of New Entrants

The threat for new entrants in the detergent industry for Tide is high. The new entrants have a large
area for tapping, be it urban or rural areas. The rural areas present area for entrance since the major
MNCs such as P&G and RB dont have well established products for rural areas. Those areas are
dominated by companies such as Nirma and Fena. Also, as far as urban areas go, new entrants can
disrupt the existing market share for Tide and others brands.
Detergent is a necessity and hence, it will always be in need. Also, there is plenty of land available
along with the availability of cheap labour. This results in a cheap manufacturing process with which
the product can be manufactured easily. Thus, the new product can enter and establish its own market
space.

Threat of Established Rivals

Surf Excel, Ariel, Rin, Wheel, Ghardi, Nirma are some of the established rivals in the detergent and
bar industries. For every kind of product Tide has or may release, a similar one will be there or
introduced by one of the companies. Hence, there is a high threat of established rivals.
There are bar competitors against Tide such as Rin and there are detergent competitors as well. Tide
cannot increase its price or hold back on its quality and not expect its market share to be eaten in by
one the competitors. Similarly, any new feature introduced by Tide will only hold as long as one of its
competitors doesnt end up doing the same. This high level of competition exists in a variety of
degrees always ready to pounce on the rivals moves.

Threat from Suppliers

P&G has integrated its manufacturing with its marketing of TIDE by Proctor & Gamble Home
Products Limited. Out of six manufacturing plants of P&G, TIDE is manufactured at:
Mandideep, M.P.
Baddi, Himachal Pradesh
Kothur Mandal, Telangana

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Bargaining power of Suppliers

Tide chooses its suppliers on the basis of two criteria:
1. Sustainability guidelines: P&G respects internationally recognized human rights as defined by the
Universal Declaration of Human Rights and Associated Covenants, and the International Labour
Organization (ILO) Declaration on the Fundamental Principles and Rights at Work. External
business partners must comply with all applicable wage and hour laws, including minimum wage,
overtime, maximum hour rules, meal and rest periods, and to provide legally mandated benefits.
External business partners must comply with all applicable health and safety laws, rules,
regulations and industry standards
2. Supply Chain Environmental Sustainability: Suppliers are evaluated on the basis of electric
energy usage, fuel energy usage, water usage, Hazardous Waste Disposal, Kyoto Greenhouse Gas
Emissions (Direct and Indirect), Fines and Sanctions and Environmental Management System.
As almost all the production is integrated and follows high quality legal and environmental standards,
threat from bargaining power and administrative complications is almost nil.
In 2010, JHS Svendgaard Laboratories was awarded the contract for Tide Manufacturing but was later
rescinded. Currently the matter is sub-judice under Supreme Court. CCI and Himachal Pradesh High
Court have already decided in favour of P&G.

Positioning Strategy
The primary positioning strategy used by Tide was that it would give you whiter clothes than any other
detergent. The primary job of any detergent is to ensure that the stains are removed and that the
original shine is brought back. Tide primarily played upon this fact- the whiteness of the clothes would
be shinier and they would be totally clean. When a customer thinks of washing clothes, the first thing
that comes to the mind is how well the whiteness can be retained and not adversely affected. It was on
this primitive consumer sentiment that Tide played upon and tried to establish a space for itself in the
market.
Another aspect of Tide positioning strategy was the price of the product. Tide was in a cheaper range
when compared to the other detergents such as Ariel or Surf Excel. SO, the price effect was another
aspect that Tide played into. It promised to deliver high quality at low prices and thus be a difference
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maker when it came to its competitors in the market. However, Tides price range was in a category
higher than detergents such as Nirma and Wheel. Hence, Tide doesnt have a thought of poor quality
attached to it. It is superior to those options when it came to perception due to market prices.

The positioning strategy was divided into three steps- identify the ideal customer, map out a
competitive frame and establish a point of difference.
Tide, when launched by P&G, did not get a very enthusiastic response from the consumers. To add to
that, in 2003, the price wars took a toll further on the detergent market in India. There was no premium
brand in India as a result of this. The price wars enabled P&G to popularize Tide and increase its
penetration, however, after the price cut there was a serious problem of cannibalization between its
former premium segment detergent, Ariel, and Tide.
To circumvent this, Tide adopted a strategy of positioning itself globally as a detergent that cleans
perfectly and used safedi as a tool to launch campaigns and propagate its whitening power against
HLLs Rin with the same positioning.

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Tide identified the ideal customer as one who wanted a good quality wash in which the detergent did
its job to the best possible level all the while not willing to pay a premium. The middle class with a
strong demand for white, clean clothes was what Tide identified as the ideal customer.

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The campaigns had a desi touch and were well executed. The pricing was competitive and hence HLL
was forced to rope in none other than Big B to defend Rin.
Through the new strategy Tide aimed to capture the safety segment while Ariel would fight Surf in the
Color segment.

Before Tide, most of the detergents were either premium or catered to the bottom-of-the-pyramid.
Tide was the one that decided to cater to the growing middle class of the Indian society and
established a market niche for itself in this process.
In order to map out a competitive frame, Tides rivals were classified as premium washing productsSurf Excel, and lower quality products- Nirma. Tide decided to break away from this pre-established
segmentation and establish its own audience in the market- the ones willing to pay slightly more for
clean clothes but unwilling to go for premium products.
The point of difference that Tide established was the White hai toh Tide hai marketing campaign.
Tide introduced other complimentary features such as fragrant power with its washing but the main
USP for Tide was the whitening quality it brought to the table.

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Conclusion
By looking at the survey outcome we can say that most of our respondents were youngsters & were
living in a nuclear middle to high class family of 2-5 members. Thus, they preferred premium segment
detergents. But Tide was also preferred choice of many surveyors. We, also, analyzed that being a
competitive market, price sensitivity was one of the prime factors for them while they were choosing
detergents of various brands from the shelves of departmental stores, which were the prime destination
for the buyers of the detergents in our respondent segment. Currently, Online shopping for detergent is
at a very nascent stage in India.
For Tide, its branding as whitening detergent is a success in India, this phenomenon is apparent in our
survey as most people related it to whitening effect. Along with that its affordable pricing is also
drive customer to choose Tide over other detergents.

REFERENCES
www.pg.com/en_IN/
https://en.wikipedia.org/wiki/Tide_(brand)

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