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CERTIFICATE
This to certify that Mr. Surendra Pratap Lodhi Student of B.B.A. (Hons)
IIIRD SEM , GIMS Has diligently worked on the Project Report of the Consumer
Buying Behaviour of “Tide Detergent”. He has done this Work under My Guidance
and Supervision. This project work is original and not submitted earlier for the
award of any degree or associate ship of any other University.
During this study he made meticulous efforts for its completion. I wish him
all the best in this sincere endeavors for a bright and successful future.
External Examiner
Name :
Sign :
DECLARATION
MANAGEMENT AND SCIENCE SAGAR I also ensure that this work done by me is
I. Certificate
2. Declaration
3. Preface
4. Acknowledgement
I INTRODUCTION.
2. HISTORY
3. OBJECTIVE
6. LIMITATION
10. BIBLIOGRAPHY
11. QUESTIONARE
INTRODUCTION TO THE ORGANISATIONS
1. Development
o After World War I, the shortage of vegetable and animal fat, an
ingredient in soap, prompted Procter & Gamble to begin development of a man-
made detergent. Procter and Gamble invented Tide in 1943.
Marketing
o Procter & Gamble first marketed Tide detergent to the public in
1946, which coincided with the introduction of the top-loading automatic washer.
The two items eased the chore of laundry. Boxes of Tide were placed in the
machines, as a marketing tool.
Ingredients
o Tide contains two synthetic detergent surfactants: hydrophilic
surfactants, which break down tension of the water surface, and hydrophobic
surfactants, which loosen and remove oils. Tide products may also contain a
fluorescent whitening agent, enzymes and fragrances.
Detergent Forms
o Tide in powder form comes in box sizes ranging from 15 to 80 loads.
The liquid Tide is available in a variety of sizes as well. Tide detergent products
are many, including one for cold water and one with bleach.
Recognition
o Tide was nationally recognized in 2006, when the American
Chemical Society proclaimed the development of Tide a "National Historic
Chemical Landmark."
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.
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. 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 and its weakness, testimony of experts or renowned
personalities/authorities, and in some cases, use of famous movie actors and
actress also helps.
Place/Distribution –
Tide being a product that serve to satisfy the immediate nee of people is
always 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.
HISTORY
The house - hold chore of doing the laundry began to change with the
introduction of washing powders in the 1880s. These new laundry products
originally were simply spewed soap. New cleaning-product marketing successes,
such as the 1890s introduction of the N. K. Fair bank Company's Gold Dust
Washing Powder (which used a breakthrough hydrogenation process in its
formulation), and Hudson's heavily advertised product, Rinso, proved that there
was a ready market for better cleaning agents. Henkel & Cie's "self-activating" (or
self bleaching) cleaner, "Persil;" (introduced in 1907); the
early synthetic detergent, BASF's "FeWA" (introduced in 1932); and Procter &
Gamble's 1933 totally synthetic creation, "Dreft," (marketed for use on infant-
wear) —all indicated significant advances in the laundry cleaning product market.
The original Tide laundry detergent was a synthetic designed specifically for
heavy-duty, machine cleaning (an advance over the milder cleaning capabilities
of "FeWA" and "Dreft"). Tide was first introduced in U.S. test markets in 1946 as
the world's first heavy-duty detergent, with nation-wide distribution accomplished
in 1949. Tide claimed it was "America's Washday Favorite." Authority was quickly
gained in the U.S. detergent market, dwarfing the sales of Ivory Snow; and
accelerating the demise of two of its main competing products, Rinso and Gold
Dust Washing Powder, both then Lever Brothers brands. These other brands
came in the more familiar soap-powder and soap-flake forms. Tide, however,
initially came shaped as a white powdered bead. The line was expanded to
include an orange-tinted clear liquid form in 1984. Today, most formulations of
liquid Tide are dark blue, with the exception of "Tide Free", which is clear.
OBJECTIVES
The following project has been given to us in order to make us understand the
real environment of the market in which research is conducted. Marketing
research, being a very important field of study in management can only be
learned through practically working in the markets. The subject of our study being
an FMCG product made us go and interact with the households and know their
buying behaviour, preferences and expectations from the detergents they use. In
our study we defined our research objectives as follows:-
Plain water, if used for cleaning, is a detergent. Probably the most widely used
detergents other than water are soaps or mixtures composed chiefly of soaps.
However, not all soaps have significant detergency and, although the words
"detergent" and "soap" are sometimes used interchangeably, not every detergent
is a soap. The term detergent is sometimes used to refer to any surfactant, even
when it is not used for cleaning. This terminology should be avoided as long as
the term surfactant itself is available.
Components
Detergents, especially those made for use with water, often include different
components such as:
There are several factors that dictate what compositions of detergent should be
used, including the material to be cleaned, the apparatus to be used, and
tolerance for and type of dirt. For instance, all of the following are used to clean
glass. The sheer range of different detergents that can be used demonstrates the
importance of context in the selection of an appropriate glass-cleaning agent:
a chromic acid solution—to get glass very clean for certain precision demanding
purposes such as analytical chemistry
a high-foaming mixture of surfactants with low skin irritation—for hand washing of
dishware in a sink or dishpan
any of various non-foaming compositions—for dishware in a dishwashing
machine
other surfactant-based compositions—for washing windows with a squeegee,
followed by rinsing
an ammonia-containing solution—for cleaning windows with no additional dilution
and no rinsing
ethano l or methanol in windshield washer fluid—used for a vehicle in motion,
with no additional dilution glass contact lens cleaning solutions, which must clean
and disinfect without leaving any eye-harming material that would not be easily
rinsed
However, three years after its entry into India, there is little to prove that Tide has
made that desired splash for P&G. According to retail audit house, Tide has
grown marginally from 0.1 per cent volume share in 2000 (it was launched in May
2000) to 0.7 per cent at present. P&G’s older brand in the Indian market, Ariel
(launched in 1991), is also suffering. Ariel’s volume share has dipped from 2.6
per cent in 1998 to 1.5 per cent currently. Worse still, P&G’s total volume share
in the detergents market has dipped from 2.6 per cent in 1998 to 2.2 per cent
currently. But still P&G launched another premium detergent in a market where
its super-premium brand was already present, risking cannibalization by the new
entrant.
Another factor, after the price game, that worked in favour of the detergent was
the “whiteness” proposition (Ariel has always been promoted on the “cleanliness”
platform). And finally, what helped Tide gain momentum is the communication
channels it chose to reach to its target audience, which was different from that of
Ariel.
In the case of Tide, though, P&G focused on the traditional Indian housewife (the
ideal core target for any detergent brand) from the beginning. Says Kamal Basu,
executive vice president, Saatchi & Saatchi (ad agency for Ariel), “The mid-priced
detergent segment is ballooning in Indian at present, eating into the shares of
both low and top-end segments. The price drop has only arrested the shrinkage
of this segment.
While media buyers say the game show is connecting with Tide’s audience, the
market dynamics pose a different challenge.Tide’s unique pricing could act as an
advantage because it is a convenient price point for a premium, “international”
brand in order to enable customers to downgrade from costlier brands. But what
if Tide washes away Ariel’s franchise?
Tide quickly spilled over the boundaries that company strategists had drawn for
the product and ripped through P&G's core markets.
“A powerful clean that won't wear out your clothes”. Tide Powder gets to the
bottom of dirt and stains to help keep your whites white and your colors bright.
For great stain
removal in any temperature, Quick Dissolving™ Tide is formulated to
immediately start dissolving — even in cold water and a super-soluble detergent
means virtually residue-free clothes! Moisture-resistant cartons — with Moisture
Guard Protection™ and Snap-Lock Lids™ — mean less clumping so your
powder stays fresh and free-flowing.
“Get the most out of your high efficiency washer”. High efficiency washing
machines accommodate larger loads and save money on utility bills. But unless
you're using the
right laundry detergent, you may not be getting the results you bargained for.
Tide HE is specially formulated to unlock the cleaning potential of high efficiency
washers in U.S.
Helps clean away stains and odors with ease. Tide with freshness gives you the
great cleaning you expect from Tide, now with the freshness you love. Tide with
Freshness is specially formulated to help target and remove common odors that
get trapped in fabrics, and then deposit "freshness actives."
LIMITATION
Though P&G might seek a legal remedy, HUL appears to have enjoyed its share
of colorful Holi by taking advantage of the long weekend during which its
commercial was aired.
If the case does wind up in litigation, it would be interesting to see how Indian
courts react to this form of advertising.
It appears that P&G views its rival's latest commercial as a great lie and is acting
like a big fish on dry land; it may fret and fling and make a frightful bother, but it
cannot hurt you. You have only to keep still, and it will die of itself.
CARRER GROWTH AND MAJOR BRAND
• The latest move comes in the wake of the high profile launch of Tide
detergent bar.
• Tide and Ariel always created problems for Surf and Rin. The migration of
Rin Supreme bar to Surf Excel bar is aimed at countering Tide.
• HLL has announced a drastic reduction in price by Rs 20 per kilo on
Surf Excel, its premium detergent brand, making it cheaper than competing
brand Ariel from Procter & Gamble (P&G). price cut, from Rs 155 to Rs
135 per kg.
Detergent Brands
NIRMA
Exploding the myth that ‘better quality always demands higher price”, Nirma
introduced a spray-dried blue coloured washing powder in the premium segment,
in 1996. Available in 25g, 500g and 1000g packs, this product out-classed its
competitor brands. Though, priced almost 40 % lesser, thus providing a very
attractive ‘value-for-money’ proposition. This brand, within a short span of two
years, had cornered substantial market share in the premium detergent segment
and continues to perform well.
To cater to the needs of the specific target audience, Nirma launched a good
quality product at a very affordable price. The objective is to convert the non-
users of detergents into users and also prevent the competitors and local
manufacturers to lure away the prospective Nirma consumers by sub-standard
products. This product has created a loyal consumer base of its own and has
established substantial amount of volumes. It is available in pack sizes of 500g
and 1000g pack sizes.
Deriving inspiration from its success in the Detergent Powder market, Nirma
expanded its product portfolio by introducing the “Nirma detergent cake” in 1987.
Here again, the excellent price-quality equation tempted the consumers to try the
product. Available in 125g and 250g pack sizes, this brand has done
exceptionally well. AIMS survey ranked Nirma detergent cake as “The Most
widely distributed detergent cake brand”. Due to its unique formulation, this
product offers benefits like less melting in water, better stability, and therefore
lasts longer. As per the ORG-MARG Rural Consumer Panel[December 1998]
survey, Nirma brand is ranked highest in terms of penetration in washing
cakes / bars category [BT Rural Market Watch, Business Today, June 22, 1999].
Super Nirma Detergent Cake was ranked as the fastest Climber for the year
1997-98 in the detergent cake/ bars category [BUSINESS TODAY, Octobers 22,
1998].
Nirma Popular Detergent Cake
WHEEL
The largest laundry brand in Bangladesh, Wheel has always been focused in
making laundry a pleasurable and delightful experience for the housewives.
Based on its years of understanding of its consumers and huge experience in
laundry, Wheel has been continually improving its formulation and form to suit
the modern day users. Different formats and pack sizes of Wheel has been
designed to cater to the requirements of users with different family sizes, laundry
requirements and income groups.
ARIEL
Ariel first appeared on the UK market circa 1968 and was the first detergent with
stain-removing enzymes. It was a high-sudsing powder designed for twin-tub and
top-loading washing machines. With the rise in popularity of automatic front-
loading washing machines, a suitable low-suds variant was launched in the early
1970s. The mid-eighties saw the range expanding to encompass liquid detergent
and compact powder.
The compact powder was originally known as "Ariel Ultra"; and was subsequently
reformulated into the nineties as "Ariel Futur". This was possibly in response
to Unilever's launch of the ultimately doomed "Persil Power", which was seen to
damage clothes. Compact powders never proved popular in the UK; so when the
tablet variant appeared in July 1999, the compact version disappeared.
In 2003, Ariel brought out its quickwash action to its detergents, to allow
consumers to be able to do their laundry on a quickwash cycle.
In 2006, Ariel started its "turn to 30" campaign to inspire consumers to wash in
cool water so that energy can be saved.
SEGMENTATION:
TARGETING:
Targeting is the next step in the sequential process and involves a business
making choices about segment on which resources are to be focused. There are
three major targeting strategies: undifferentiated, concentrated, and
differentiated.
After the most attractive segments are selected, a company should not directly
start targeting all these segments. The attractiveness of the segments is also
depending on other important factors. In the main activity of defining a target
market, four sub activities are given which are the bases for deciding on which
segments will actually be targeted.
The four sub activities within targeting are:
1. Defining the abilities of the company and resources needed to enter a market
2. Analyzing competitor’s on their resources and skills
3. Considering the company’s abilities compared to the competitors
4. Deciding on the actual target markets.
Targeting can only be done when segments are predefined; there have to be
segments to analyze the competitors which are in this market. When the process
of targeting is ended, the markets to target are selected, but the way to use
marketing in these markets is not yet defined. To decide on the actual marketing
strategy, knowledge of the differential advantages of each segment is needed.
When positioning a product, the segments are first analyzed.
Positioning:
Positioning is what the customer believes about your product's value, features,
and benefits; it is a comparison to the other available alternatives offered by the
competition. These beliefs tend to based on customer experiences and evidence,
rather than awareness created by advertising or promotion.
The goal of product positioning is to keep your product on top of your customers’
mind when they’re considering a purchase. To be successful, product positioning
must achieve three objectives:
Differentiate your product from the competition’s
Address important customer buying criteria
Articulate key product (or company) characteristics
Process:
This table is showing that how frequently people wash their clothes.so out of 276
respondents 177 respondents wash their clothes daily which results for 64.1 % of
total and 21 wash their clothes once a week which result for 7.6 % of total ,78
wash their clothes twice a week which results for 28.3 % of total respondents.
Q.2) Which according to you is the most appropriate form for washing
clothes?
a) bar
b) powder
c) liquid
ANALYSIS AND INTEPRETATION
Q.6 What is the price range(per kg) of the detergent you use?
a) 50-75
b) 75-100
c) 100-125
d) 125-150
e) 150+
Today a brand needs to focus on all the aspects of its business, whether it is
external, internal, macro or micro. They should be analyzed based on PESTEL,
before deciding the business strategy. A business is impacted by all these factors
and so is the strategy of running the business. As we observed by the SWOT
analysis of the two brands rin and tide that, every product offering should
accentuate its strength and negate its weakness. The opportunities for both the
brands were similar in nature but still by proper segmentation targeting and
positioning, Tide was able to create its own category in the existing crowded
detergent market of India. Even though both the detergents more or less
provided the same kind of functional benefits still they had different marketing
mix (4ps) so as to differentiate. But faced with a competition mudslinging and
indulging in price war is never the best option. As we have observed that, rather
than gaining anything HUL kept loosing its market share and stock valuation
even after the defaming campaign.
The answer to competition is innovation. Tide was able to sweep HUL off its feet
was because they were not innovative enough. So if a brand is to be managed
properly one should depend on two tools: marketing and innovation.
BIBLIOGRAPHY:
http://www.quickmba.com/marketing/mix/
http://www.scribd.com/doc/6464143/McDonalds-4Ps-Of-marketing
http://www.greenfile.net/resources/downloads/mkt_mix.pdf
http://www.researchconnect.com/downloadreport.asp?RepID=55248
http://managementfunda.com/tag/marketing/
http://www.scribd.com/doc/9823405/SWOT-Analysis-of-the-Detergent-Powder-Surf-Excel
http://wiki.answers.com/Q/PESTLE_analysis_of_HUL
www.plu.edu/~simpsoja/doc/pg-pp.ppt
http://marketingteacher.com/lesson-store/lesson-segmentation.html
http://202.205.89.79/download/materials/2007f/discipline/Marketing/Kevin%20Jones/6.%20Seg
mentation,%20Tarketing%20&%20Positioning%20for%20Competitive%20Advantage.ppt
http://news.priorsmart.com/rin-v-tide-analysis-the-controversy-b388/
http://rajeshaithal.blogspot.com/2010/03/rin-vs-tide-ad-ethical.html
QUESTIONAIRE
THANK YOU
PREFACE
There are more than 10 brands available in the Indian market, but we have chosen
6 major brands. The Indian laundry market is Rs 5000 crore, with HUL enjoying
highest 38% of share, followed by others like P&G, Nirma, Ghari etc. Detergent
bar comprises of 43% of market share and powder enjoying the rest 57%. The
brands which we tapped are Nirma, Ariel, Surf, Tide, Wheel, Surf Excel and
leaving others as option. Competition in this market is really high with HUL, P&G,
Nirma etc strategizing and innovating to capture the market.