Brand Positioning:

To (Target Market): Women in the households who do laundry; middle to upper income levels;
Is a (Category): Premium Detergent brand that cleans even the dirtiest clothes
Reasons to believe/POD: One wash clean; fragrance oriented detergent; gives shine to white
clothes; gives brightness to colored clothes;
Support to claim: Micro cleaning systems exhibiting superior technology utilized by the brand
exhibited through smart enzymes that can remove up to 100 stains in one wash;

Brand Positioning Statement:

Ariel is a premium detergent brand committed to help women in the households of
middle to upper income levels clean all their clothes – even the dirtiest and toughest to
remove stains – by incorporating smart enzymes that can remove up to 100 stains in just
one wash giving shine to white clothes and brightness to colored clothes, and even
boosting its fragrance.

Marketing Mix

Product:

Product Objective

Ariel is a multinational brand owned by Procter and Gamble (P&G). Consistent with P&G’s goal
to make people’s lives a little better, Ariel aims to make the lives of women easier by offering
products that can address their problems of having tough-to-clean stains, fading colors, and
clothes that are just not white enough.

The 1960’s was considered the decade of change for women, a period of growing expectations
among them. A time when good results were just not good enough. Ariel came in at 1968
offering women of that time a new and innovative biological washing detergent. A detergent that
could clean clothes with one wash only, that could renew their clothes, and renew their
experiences. By simplifying the laundry process for women, Ariel has set their vision to change
the entire landscape of doing laundry through imagination, innovation, and determination, while
keeping women always at the center.

Core Benefit

When consumers think Ariel, they think “one wash clean”, and “7.50”. With these perceived
values, it can be stated that Ariel includes functionality and affordability in their value proposition
as core benefits. Consumers - women in particular, perceive Ariel as a brand that that can clean
tough stains in just one wash, for a very low cost. Although competitors offer detergent products
with similar benefits, consumers keep in mind that Ariel can offer them a product that can clean
their clothes faster in one wash, and at a relatively low price.

Basic or Generic Product

What makes a product generic/basic? A good that is sold for the type of good that it is rather
than sold by its brand name is a basic product. These products are not heavily marketed and
are competing with other brands largely on a price basis. When shopping for a basic product,
the consumers are addressing their need rather than focus on a particular brand.
For example, rather than deciding whether to buy Ariel or other competing brands, the
customers focus primarily on a detergent that would help them in washing their clothes. This
laundry detergent should also compensate with the amount they are willing to spend.

Expected Product

When a customer buys a certain product, expectations are set towards their purchase. This is
often called the expected product. It is basically all about the aspects that the consumer expects
to get upon their purchase. For our chosen brand, the most common type of expectation
consumers have is that it gets to clean their laundry well. The brand’s product description, “Ariel
Sunrise Fresh is your ever-trusty detergent that will give you better tough stain removal in 1
Wash even vs your leading detergent powder brand!” is also a factor that leads their customers
to set a level of expectations that Ariel would easily wash away stains from clothes.

Ariel also stated that they have done qualitative and quantitative research so that they would
know what their customers really want. This customer research allowed Ariel to develop their
detergent with a tough stain removal in clothes with just one wash. Ariel seemed to meet with
the customers’ expectation because a lot of good reviews were stated especially highlighting its
good smell and its ability to get rid of stains for a premium price.

Augmented Product

Consumers usually think that a product simply is a physical item that he/she buys. What they
don’t know is that a product has three different sectors - the core product, actual actual, and the
augmented product.

The core product basically is the value and benefit you get and attribute to the product itself.
This is why and how you value a certain product. The actual product is the physical aspect of
the product. This is the one you can touch and get use out of it.

The augmented product is the non-physical part of the product, and usually consists of the
added value. Ariel is known as a tough stain remover. Consumers purchase Ariel because of
the attributes they have with it such as great benefits and service for cleaning stains.
Consumers also purchase and use this product because it also come in different forms. Ariel is
also available in liquid and in powder. There are also variants of Ariel that focus on specific
needs of its customers such as Ariel Oxybleach, Ariel Double Force. Aside from these
characteristics and assets of Ariel the product itself, consumers continue to patronize Ariel
because of the additional service it provides. It is true to its promise of cleaning stains and great
performance alongside its price. Consumers see that their clothes are well cleaned by using
Ariel, and in return they gain great consumer perceived value.

Potential Product

A potential product includes all augmentations and transformations that the product might
undergo in the future. These can be the unexpected changes in technology, attributes, features,
styles, color, grade and quality of the product.
In the case of Ariel, the potential product for this may be the upgradation in quality, upgradation
in amount of detergent required or used to wash the clothes. It can also be the change in
packaging of the product.

Branding Strategy

Brand Image
Ariel's advanced detergent formulas deliver great cleaning performance in both
quick and cold wash conditions, which helps both you and the environment. Ariel wants you to
be able to keep enjoying your experiences to the full, worry-free, looking and feeling at your
best, making the most of every moment.

Brand Promotion
October 2007 marked the 170th year that P&G had been in business. Over that
time, growth had stemmed from keeping faith with P&G’s core principle of sustainable
development: ‘Ensuring a better quality of life for everyone, now and for generations to come’.
The organization had a long heritage as a sustainability leader, and remained committed to
improving consumers’ lives through its brands and by contributing to the sustainability of the
planet and communities in which its employees lived and worked. Over the past decade, P&G
had made a significant impact through its ‘Live, Learn and Thrive’ corporate cause campaign
and, by using the trusted relationship its brands had with billions of consumers, continued to
champion domestic behaviour that contributed to the greater good.

Brand Elements

Brand Name: Ariel

Type of Brand: Family brand detergent
Company name: Procter and Gamble, Co.
Competitor: Surf, Breeze, etc.
Tagline: Superior stain removal
Logo: Ariel’s logo has an iconic atomic symbol which positions the brand as a new scientific
breakthrough, portrayed through progressive product innovations such as the cleaning and
whiteness performance, the use of activated bleach and bleaching systems, and specific
formulas to remove specific stains.

Famous Campaigns:

1. “Share the Load” Campaign

This campaign was first launched in India and dubbed as Ariel’s “removing the stains of social
inequality” campaign. Through this, men were encouraged to do the perceived traditional chore
for women which is doing laundry..
2. Big stain campaign
A giant digital t-shirt has been displayed in public places where people can cover it with virtual
ketchup, soy sauce, and mustard. This campaign used wii consoles to demonstrate Ariel’s
cleaning power. People covered the giant t-shirt with stains with the use of wii consoles
disguised as sauce bottle and to remove the stain, a console disguised as an Ariel bottle was
used.
Attributes:
Better stain removal in 1 wash
Scent
Brilliant whites and colors
Product Variants (Philippine context):
Ariel Power Gel
Ariel with Freshness of Downy Parfum
Ariel Sunrise Fresh
Ariel Color and Style
Ariel Power Gel with the Freshness of Downy Passion
Ariel with the Power of Safeguard

Price

Ariel has established a title of having its best qualities and various varieties. The brand has set
up an efficient team that helps in collecting data and analyzing various market trends. It then
decides and opts for the best possible pricing strategy for its products and for the benefits that it
delivers. Although Ariel offers prices a bit higher than its competitors, its excellence in washing
clothes without adding damage to them is what makes the customers repurchase their products.
Ariel Complete Sunrise Fresh detergent powder is offered at Php 7.50 for every seventy grams
of sachet. It is said that this product can take away tough stains in just one wash. Ariel uses the
Premium Pricing Strategy where they set costs higher than the competitors. Because customers
need to perceive products as being worth the higher price tag, Ariel works hard to create a value
perception. A lot of reviews show a positive note from their customers that they are indeed
paying for the product’s worth.

Place

Just like all other big companies, Ariel is engaged in building and managing a complex,
continuously evolving value delivery network. Here we analyze Ariel’s marketing channels, and
how they design and manage them.

Ariel’s Channel Design:

Companies are always torn between idealism and practicality. They look for many ways to
satisfy their customers by delivering value efficiently. To solve this dilemma, companies design
channels through a very in-depth process in order to deliver customer value. This process
includes: analyzing customer needs; setting channel objectives; identifying major channel
alternatives; and evaluating those alternatives.

What do customers want from channels? Ariel is a detergent product and is a necessity good
that serves a segment of women who do laundry. Since it is a product that their target
consumers use often, they would want it to be available all the time and to purchase it from
stores that are accessible and convenient to them. They may also want to purchase it in places
like groceries or supermarkets they usually go to buy household supplies. Simply, Consumers
want availability and accessibility from channels.

Setting Channel Objectives

Companies state their channel objectives in terms of targeted customer service levels. (Since
we are limited with information we can only assume Ariel’s channel objectives). Ariel may want
to compete in the same outlets that carry competitors’ products to facilitate and encourage
comparison shopping.

Identifying Major Alternatives:

Since Ariel is assumed to aim for spaces in outlets that encourage comparison shopping, Ariel
identifies intermediaries that are relatively big in size that can offer its shoppers alternatives
(e.g. groceries, supermarkets, hardware stores). In order to achieve this Ariel should seek
intensive distribution – stocking the product in as many outlets as possible. By partnering with
intermediaries that fall under these criteria, Ariel is ensured of efficient value delivery to its
customers.

Evaluating the Major Alternatives:

Ariel must consider the following criteria for its channel alternatives: likely sales, costs, and
profitability; what investments are required and what results will it yield; control issues; and
adaptability criteria. Once Ariel evaluates its alternatives based on these criteria, it must decide
on the best channel alternative.

Ariel’s Marketing Channel:

Ariel distributes its products through multiple channels. It designs its distribution channels to
make products and services available to customers in different ways. For example, Ariel makes
use of a number of channel levels or intermediaries, thus making their channel an indirect
marketing channel. From the producer it goes to wholesaler, and retailers, then to the
consumers. In the Philippines, P&G is partnered with Eastworld Sales Philippines to distribute
their products, including Ariel, all over the Philippines. Eastworld Sales Philippines then
expedites the process of distributing Ariel to wholesalers, then to retailers, until it finally reaches
its customers. This distribution channel is classified as a conventional marketing channel as it
consists of a lot of independent wholesalers, and retailers, each seeking to maximize its own
profits. As a partner, Eastworld Sales Philippines can offer lower priced Ariel products, faster
delivery, call center services for professionals, training, and even special laundromat
promotions. By partnering with Eastworld Sales Philippines P&G is able to save time and money
on gathering and distributing information on customers, promotion, finding contacts of
prospective buyers, matching customer’s supply and demand, negotiation, physical distribution,
financing, and risk taking. Just imagine if P&G had not partnered with any company in the
Philippines, they would risk a lot of money putting up physical plants, purchasing a lot of delivery
vehicles, and etc.

This partnership, of course, is protected by legal provisions of government policies, and

contracts signed by the two parties. This channel has enabled Ariel to deliver value to its
customers efficiently at a targeted level of customer service at minimum cost.

Ariel’s Supply Chain Management:

Suppliers: Procter and Gamble (P&G) enumerates a long list of raw materials they need to
outsource from suppliers. These include raw materials in the following industries: Chemical
manufacturing; rubber and plastics; container and packaging; forestry and wood products; iron
and steel; paper and paper products; construction raw materials; miscellaneous manufacturing;
industrial machinery and components; conglomerates; personal and household products; oil and
gas production; S&Ls savings banks; and real estate investment trusts. There is no information
however provided on which specific suppliers of raw materials directly supply for Ariel, but let us
assume that all these raw materials are part of Ariel’s production. All these companies listed
under each industry are the suppliers of Ariel, and therefore part of its supply chain.

Company: P&G gets these raw materials from its suppliers and converts it to a finished product.
This finished product then proceeds to its resellers.
 Resellers: Intermediaries like Eastworld Sales Philippines is in charge of facilitating the
distribution in the Philippines which then goes to different wholesalers and retailers.

Customers: From wholesalers and retailers it goes straight to customers who purchase directly
from them.

Promotion

Ariel’s Total Promotion Budget and Mix

1. Setting the Total Promotion Budget
Kantar Media revealed that in the Philippines, one of the 2013’s biggest Advertising spenders in
the Philippines is Procter and Gamble Philippines, Inc. as ranked top 2, and Ariel Detergent
Powder on top 4.

2. Percentage-of-sales Method
Through the years, Procter and Gamble Co.’s advertising expenses continuously
increases.

Ad spending
Year Sales ($B) Ad expenses ($B) as % of sales
1987 17.000 1.386 8.2%

1988 19.336 1.594 8.2%

1989 21.398 1.660 7.8%

1990 24.081 2.059 8.6%

1991 27.026 2.511 9.3%

1992 29.390 2.693 9.2%

1993 30.498 2.973 9.7%

1994 30.385 2.996 9.9%

1995 33.482 3.284 9.8%

1996 35.284 3.374 9.6%

1997 35.764 3.414 9.5%

1998 37.154 3.638 9.8%

1999 36 .710 3.471 9.5%

2000 38.545 3.828 9.9%

2001 37.855 3.654 9.7%

2002 38.965 3.696 9.5%

2003 42.133 4.406 10.5%

2004 50.128 5.401 10.8%

2005 53.210 5.804 10.9%

2006 64.416 7.010 10.9%

2007 71.095 7.714 10.9%

2008 77.714 8.426 10.8%

2009 75.295 7.453 9.9%

2010 77.567 8.475 10.9%

2011 81.104 9.210 11.4%

2012 83.680 9.345 11.2%

Fiscal years ended June 30. Source: Ad Age DataCenter analysis of Procter & Gamble Co.'s
10-K and annual report disclosures. Some data reflect restated P&G figures.

Based form the available data from 1987, the company spent 8.2 cents for each dollar of sales
on advertising. Compared to year 2011, it spent 11.4 cents for each dollar of sales in its recent
advertising. Fortunately, Procter and Gamble Co., is a strong company with great brands and
higher sales which enables them to afford the biggest and budgets on advertising.
Ariel continues to use its big stain removal campaign with freshness and no powder
residues in washes. In line with its marketing, Ariel uses a variety of ways to promote itself to its
customers. In advertisements, they started its commercials with different categories of people
as its subject. From mothers, firemen, and big personalities in the Philippines. But underneath
this established connection on the surface, Ariel uses the push strategy, and first assures that
they have a strong connection with its channel members, such as grocery stores, networkers,
and retail stores. As the strategy manifests in performance it correlates to sales promotion,
groceries provide service in return to Ariel in terms of promotions. For example, some SM
supermarkets provide a separate stall for Ariel products. Through this, the channel member,
which is the supermarket help Ariel to promote its products by giving special attention and giving
priority to it. By this, addition to the perception of customers to Ariel is being enhanced. Another
visible and common example is the selling of retail stores. The product is obviously being
pushed to the customers from the mere concept of having their products available at the nearest
store to their doors. Instead of focusing on a wider set of customers and viewers, they used the
experience and way of living of the said subjects so that they portray a significant connection
with them, with Ariel as part of its direct and digital marketing. Through these advertisements,
they showcased what Ariel can do to these problems of the mums, firemen, and laundry
washers. Aside from TV commercials, they sell and market Ariel sunrise fresh in supermarkets.
 They need to connect to the buyers and target consumers personally, and showcase the
benefits they can offer through Ariel Sunrise Fresh. From washing samples, to promos and
freebies of Ariel products, they create better promotions against its competitors such as Surf,
Breeze, etc.

Core of Advertising

Ariel primarily uses informative marketing. Through this, Ariel introduces to the
customers its products by also informing the consumers on the composition of their stain
removing formula to build primary demand. Ariel continuously adopts different approaches in
advertising. They engaged in comparative advertising. In one of their TV commercials, they
compared their product’s performance on a brand x. By using this type of advertisement,
customers can immediately see the advantages they get from using Ariel compared to other
products.

Developing Advertising Strategies

1. Madison and Vine strategy (merging advertising and entertainment), to create a connection
with its customers, through its advertisements, they used melodies and songs. In their TV
commercials, they advertised the Ariel detergent powder with the use of lively beats and dance
steps performed by moms. Creatively, they show the viewers and/or their target consumers
which are usually mom, that they can get rid of their pain points which is hard removal of stains
while enjoying it with ease brought by Ariel.

People Strategy

Ariel’s channels to receive customer feedback include popular social media platforms and their
own email address as posted in the official website. Ariel also implements employee
empowerment. The management gives rewards to keep the bond and harmonious relationship.
Rewards that recognize the valued contributions of global colleagues and allow us to attract,
motivate, and retain the best talent.

Physical Evidence

When a consumer sees white, green, and red, they are immediately reminded of Ariel.
This association of colors help consumers easily identify Ariel. Moreover, these colors help build
up Ariel’s desired brand positioning. Ariel’s logo has an iconic atomic symbol which positions the
brand as a new scientific breakthrough, portrayed through progressive product innovations such
as the cleaning and whiteness performance, the use of activated bleach and bleaching systems,
and specific formulas to remove specific stains.

Process Strategy

Ariel’s facilities are organized by product. Specifically speaking, each facility caters to a
particular product of Ariel. In the detergent department, Ariel offers high volume, low variety
products that are in line with a Product-focused type of Process strategy. Whereas found a
continuous process manufacturing usually applied on commodities. The advantages of the
utilization of this strategy for Ariel are lower variable cost per unit, lower but more specialized
labor, easier production planning and control and higher equipment utilization (about 70% to
90%). While its disadvantages are lower product flexibility, more specialized equipment and
usually higher capital investment.