This report evaluates the marketing strategy of Ariel detergent, including situational analysis, competitive advantage, evaluation of current marketing strategy, and segmentation, targeting, and positioning.
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Marketing Strategy 6 / 2 6 / 2 0 1 9
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Marketing Strategy1 Executive Summary In the present era, the rise in the competition has affected the company working due to which they need to take the steps for the marketing of the products. Ariel company is selected which is a well-known detergent powder that is made by Proctor & Gambler. Marketing is one of the major process through which the company deals with the external as well as internal situation of company with its formulation, expansion as well as the effective selection of the market that leads to the contribution in accomplishing the goals. The company is required to maintain the changes in the goals as well as regulations. Ariel Company needs to contract with great amount of contestants present in market. However, company has effective reputation in the market that helps them to deal with tough competition. The findings of the report shows that strong competitive advantage of the Ariel Company helps them to stimulus the audience to whom they want to target and to present that no detergent can improve work to eliminate toughest strains than Ariel. The finding of the report reflects the segmentation done by company for which the strategies are recommended to company. The promotion of the brand majorly relies on application of marketing mix and STP study in effective manner.
Marketing Strategy2 Contents 1.0 Introduction................................................................................................................................3 2.0 Situational analysis....................................................................................................................4 2.1 PESTLE Analysis..................................................................................................................4 2.2 SWOT analysis......................................................................................................................6 3.0 Competitive advantage..............................................................................................................8 3.1 USP........................................................................................................................................8 4.0 Evaluation of the current marketing strategy.............................................................................8 4.1 Growth...................................................................................................................................8 4.2 Sales trends............................................................................................................................9 4.3 Profitability............................................................................................................................9 5.0 Segmentation, Targeting and positioning (STP).....................................................................10 5.1 Segmentation.......................................................................................................................10 5.2 Targeting..............................................................................................................................11 5.3 Positioning...........................................................................................................................11 6.0 Recommended objectives and goals........................................................................................12 7.0 Recommend marketing strategy based on the application of the marketing mix....................12 9.0 Conclusion...............................................................................................................................14 10.0 References..............................................................................................................................15
Marketing Strategy3 1.0 Introduction The purpose of report is to determine organisation either producer or brand owner to get involved in the marketing of detergents either single product or product line. Further, the report is prepared with the motive to evaluate marketing elements of company. The business that has been particular for examination is Ariel detergent that is a promotion line of washing detergents made by Procter & Gambler. The brand Ariel first looked in 1967, UK market and since then it is considered as first cleaner with stain-removing enzymes solution for the customers (Ariel, 2019). The report includes marketing audit that include external as well as the internal environments. Further, it includes the SWOT analysis that helps in assessing the company to take the opportunity and contribute in converting the weakness into the strength. Moreover, the evaluation of the competitive performance has been which shows the USP of company, growth, sales, profitability and many others (Ariel, 2019). Considering this analysis on Ariel, detergents the target segment as well as clearly marketing objectives are presented. Further, the marketing mix connected to company shows strategy that the company should follow to attain the benefit in the market.
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Marketing Strategy4 2.0 Situational analysis Situational study is considered as gathering of the method that is used by directors with the cause to evaluate the interior as well as the outside environment that helps manager to understand capabilities, clients as well as the business environment (Armstrong, Adam, Denize and Kotler, 2014). 2.1 PESTLE Analysis PESTLE Analysis is a framework that is majorly used by the manager of the company in order to evaluate and monitor macro-environmental influences that can create impact on the performance of the organisation. ï‚·Political factors: - Political factors leads to huge effect on the working of company as P&G company is required to maintain the regional, local as well as the global rules as well as regulation (Baker, 2014). The publicity of the company gets affected if it remained unfulfilled. Ariel detergent is affected due to change in taxation system in UK because this will affect the profit of company. This has been witnessed that after all the change in the rules and regulations but the company is able to manage the relations with the government. ï‚·Economic factors: - The economic factors that majorly influence the working include GDP, purchasing power and many others. The position of economy of UK is comparatively better while comparing it with other countries. In the year 2017, the GDP of country was 2622.43 billion US dollars that is quite less than the previous years as well as required to be improved. The decline in the GDP affects the purchasing power of consumer that creates the impact on demand of Ariel in the market. In UK Procter &
Marketing Strategy5 Gamble, increase 19% market share from Ariel detergent and its succeeding product lines (Trading Economics, 2019). ï‚·Social factors: -Social factors contain modification in needs and demand of customers that influence the demand of detergents. Ariel has established a good reputation over different ages for serving bets detergent of market. The brand of Ariel is concerned for its customer health as well as safety due to which they promote less consumption of the renewable resources (Chernev, 2018). The logo of Ariel shows the positive sign that promote the social desirability and this is the reason due to which customers likes to purchase the product offer by brand in UK market. ï‚·Technological factors: - Technology is major factors behind the working of company as the up-gradation in technology can affect the operations in the favour or against. Ariel brand remains highly dependent on the technology due to which they work with the motive to improve the brand quality as well as its image (David, 2011). IT experts of the company ensure that they are able to make use of effective technology through which the company can meet up the needs of the customers. This has been found that they had the risk of absence of practical ability that will soon pull of the detergent from the market where they have the high competition that remain present in the global market. P&G Company majorly use technology so that they can reduce the cost related to the production of detergent with the help of the effective IT capabilities in the global level. ï‚·Legal factors: - Ariel brand of P&G needs to ensure that they are able to follow entire rules and regulation of dissimilar. This is the fact that diverse companies across the world have wide range of differences in the rules and regulations. P&G ensures that they are able to maintain good relations with the government that helps to remain aware about the
Marketing Strategy6 different rules and regulations that can effectively contribute in improving the marketing strategies (Ho, 2014). ï‚·Environmental factors: - Ariel brand has developed effective reputation by promoting the sustainable development practice among the customers (Dawson, 2014). Brand has advanced a brand image in which the customers think that Ariel is able to offer the environmental friendly products that support the company to deal with all different environmental perspective. 2.2 SWOT analysis SWOT analysis is a strategic scheduling technique that is mainly used by the managers of the company in order to determine strength, weaknesses, opportunities, as well as threats. Ariel brand SWOT analysis is given below which helps the manager to evaluate the internal as well as the external factors. The internal analysis is evaluated with the assistance of strength and weakness (Frynas and Mellahi, 2015). On the other hand, the external analysis is done by the company with the benefit of opportunities and threats. Strengthsï‚·Market share: - Ariel company has presence across the different areas of world but in UK it has 19% of the market share. ï‚·Quality: - Ariel brand ensures that they are able to offer the detergent with quality so that it can effectively contribute in removing the toughest stains, which leads to satisfaction of the clients in market (Grant, 2016). ï‚·Technology/Innovation: - In the marketing activities, it has brought numerous changes with the help of improved technology as well as innovation that is one of the major reason due to which customers get
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Marketing Strategy7 attracted and make the purchase of Ariel as their detergent. Weaknessesï‚·Substitutes: - Customers in the market can simply discover the substitute of detergent due to which they can switch to other brand that indicate to the direct impact on the transactions of company. For instance, Unilever Company is able to maintain 18% market share in UK that shows it is one of the major substitute that is available. Opportunitie s ï‚·Un-trapped markets: - It has been witnessed that P&G company has its operations in the urban areas where the rural areas remain un-trapped. One of the biggest opportunities for Ariel company is to cover the un-trapped rural area that can offer the improvement in the profits (Bhasin, 2016). ï‚·Effective brand traces: - Ariel brand has effective brand traces through which it can usage its brand image traces in mind and heart of clients to enhance its customer base within the market. Threatsï‚·Competition: - The rise in the competition is considered as one of the emerging threat for Ariel company because of the presence of different brand like Persil, Henkel and many others. ï‚·Pricing market: - Pricing market is considered as one of the major threat for the company in the market. The existence of aggressive competition might affect the company because they also bring the changes in price of products.
Marketing Strategy8 3.0 Competitive advantage 3.1 USP USP majorly refers to as unique selling propositions that help the company to attract the most of the customers towards them. The advertisement campaign for the organisation required to accomplish success for growth. Every brand in the market does have the unique selling feature that it tends to make it the individual brand (Hollensen, 2015). This is the way through which the brand communicates about the information related to brand among its competitors. USP of Ariel is that it has strong brand reputation in market from years. It is considered as the recognized detergent that is mainly used to eliminate the toughest of strains. Numerous customers deal with the issue of the toughest strains that can be resolved by them with the help of Ariel detergents. Differential advantage is still aligned with brand that helps them to deal with competitors. It has been witnessed that brand symbol is one of the major sustainable competitive advantage of Ariel detergent that is trusted as well as premium detergent brands. The customers of brand rely on the fact that they work in order to remove the toughest stains than Ariel. 4.0 Evaluation of the current marketing strategy It has been found that Ariel company is required to evaluate its current marketing strategy in UK market. 4.1 Growth In UK, Ariel detergent is considered in best detergent categories due to which they have effective position in the market. Ariel brand is able to offer the tough competition by eliminating their rivals exist in the market. It is witnessed that company has introduced the medium price products
Marketing Strategy9 so that they can beat their rivals who offers the products at the lesser prices (Wilson and Gilligan, 2012). It has been found that purchasing power of the customers influences them to shift towards the product available at low prices. The motive to offer detergent at medium priced so that they can acquire the market for the detergent that are available within the market for medium price market. The growth remained the continuous with the support of promotional activities as well as advertisements. 4.2 Sales trends The sales trends are essential to be maintained by the company that might get affected due to rigid rivalry in marketplace. In the market, it has been found that Detergents Company have equal share in terms of the market share (Rothaermel, 2015). The top competitors of the company offer the product at lower costs that leads to the threat for company. 4.3 Profitability In the present market, the profitability of the company gets affected due to the wide range of competitors present in UK market. Ariel is able to accomplish revenue in market because they
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Marketing Strategy10 offer the best quality product. The customers link the price of detergent with quality that leads to improvement in revenue from the sales (Kotler, 2015). 5.0 Segmentation, Targeting and positioning (STP) 5.1 Segmentation Customer segmentation is refers to market that include group of customers who are majorly considered by the company for targeting the people for their products. Ariel Company also considering the customer segmentation in which they determine the potential consumers that play a vital role for company (Kumar, Rahman, Kazmi and Goyal, 2012). The marketplace is exiting segmentation for clients that remains easy for them. Ariel is one of the single brands that are majorly obligatory by entire sections of society but the size of packet they buy might also vary. The market segmentation for Ariel Company has been given below – Demographic segmentation: - In this segmentation, the customers are selected on certain characteristics which include age, income, gender and many others. Ariel Company majorly uses this type of segmentation that includes the young as well as middle-aged women who rinse clothes of their family (Lovelock and Patterson, 2015). The women is majorly segment because they consume this product being it married as well as unmarried, housewife as well as working women and many others. Thus, they do not consider the occupation as well as the educational background. Geographic segmentation: - In the geographic segmentation, consumer are targeted based on their location as well as regions. In the research, this is witnessed that major use of the detergent is done by the consumer available at the urban area because rural people are easily accessible
Marketing Strategy11 towards the product. The major sales of company have been witnessed from urban areas due the presence of premium products. Psychographic segmentation: - The characters ticks of the customers include personality as well as the lifestyles are considered by company. Ariel found that personality as well as lifestyle of clients is not considered for targeting. However, this has been witnessed that the premium class customers of brand are conscious as they can pay the amount for expensive products. Behavioural Segmentation: - The behaviour segmentation includes product usage by the customers, their purchasing habit, and many others. The use of detergent is not linked with the behaviour of customers. Generally, most of the customers do not have loyalty towards the brand because it links to the FMCG products. 5.2 Targeting Target market is the collection of clients to whom business propose the goods on importance base. Ariel brand is a FMCG product required in every house with motive of washing clothes. The brand is major target market include upper, middle as well as the lower class people with different age group. The company also provide the small packet because most of the customers do not have the ability to purchase the products. The business makes use of multi-segmentation strategy for target market in which they include all the segments. The usage by the women has increased the company consider all women. 5.3 Positioning The position of company is brand value in eyes of the clients. Ariel brand is considered as one of the most trusted detergent that is determined in most of the households. It has been found that positioning of Ariel detergent is strong as in respect with different competitors. The positioning
Marketing Strategy12 of brand needs to the improved than challengers so that they can attract the customers in the market. The advertisement as well as packaging contributes towards enhancing the position and forming the effective brand position in the market. In the UK market, the brand is able to position itself within the high quality as well as affordable prices. 6.0 Recommended objectives and goals Smart goals as well as objectives are majorly adopted by firm in order to enhance efficiency within the marketplace. S- Specific: Ariel company objective is to enhance the brand value by 10% in the UK market. M- measurable: The objective company is to enhance the brand value in UK market within the period of next 3 years. A- Achievable: The goal of the company can be achieve with the effective implementation of strategies in the market of UK. R-Relevant: Improving the brand value is relevant to the motive of the company T-Timely: Time that is considered for improving the brand value by 10% 7.0 Recommend marketing strategy based on the application of the marketing mix The recommended marketing strategy for company is done to achieve the objective. Ariel is washing detergent that is sold under the parent brand P&G. The marketing mix of the company is given below:-
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Marketing Strategy13 Product strategy: - Ariel Company is considered as the premium quality of the quality of detergent that is most popular for eliminating the strains majorly from clothes. This product is most appropriate for the effective usage of washing machine. It is recommended to Ariel brand to do not have any bleaching component due to which they safeguard the colours of clothes (IÅ¡oraitÄ—, 2016). The brand should bring the innovation in product that is done by introducing fragrance with the power bristles. In addition, the feature of Ariel includes the bar as well as gel that gains the competitive advantage over alike sort of brand in marketplace. Price strategy: - Price is considered as the amount paid by the brand for getting the product. The brand uses the premium pricing strategy through which they can encounter requirements of high- class clients in market. P&G has distinct team who works on pricing of products so they should reduce the price and keep the competitive prices (Bhasin, 2016). This recommended strategy will help the brand to attract maximum clients in market that will enhance brand value. For the rural area, Ariel brand should introduce the low price goods that have extended within company that will increase number of customers. Place strategy: - Place is the location from where the customers purchase the products and the company sells the product through different distributors. P&G introduced Ariel in the market of UK through which they has extended it within the market. It is recommended to company to expand the distribution network that remains strong as well as it supply product within market (Khan, Khan and Khan, 2011). Ariel brand should enhance distribution and products to each store in the retail store to adopt the distribution. The recommendation to place strategy has been done through which they can meet their goals.
Marketing Strategy14 Promotion strategy: - The promotion of product in producing attentiveness about products in market due to which the company take the steps to improve the promotion. Ariel Company has strong promotion strategy so that they should enhance the share of market within the market. It is recommended to company to make use of updated technology for promoting Ariel detergent in the market (Luca and Suggs, 2010). The promotion has been done by using the effective tool of social media to increase the awareness in UK. The endorsement tool is recommended to use by the Ariel in marketplace so that they can simply attract the clients in market that will contribute in promoting the brand value of company within UK. 9.0 Conclusion In the end, it can be concluded that promotion strategy of Ariel Company that is a flagship company of P&G. The analysis includes situational analysis that includes PESTLE analysis as well as SWOT analysis. The analysis related to PESTLE includes different elements that include legal, environmental, social, and technological factors that can affect working of company. The effective business strategy is required to select for generating the awareness among the product. Further, the report include the competitive advantage of Ariel is increased by offering high superiority of detergent. Considering overall analysis, the segmentation, targeting and positioning of Ariel Company has been done. The positioning of product is among the high quality with price to meet requirements of company. The objective of the company has been decided which is achieved by the company through the effective strategy of the marketing mix. The marketing mix strategy of company comprises product, place, price and promotionrelated to Ariel Company.
Marketing Strategy15 10.0 References Ariel (2019)About us[Online]. Available from:https://www.ariel.co.uk/en-gb/about-ariel/about- us Ariel (2019)Ariel Home[Online]. Available from:https://www.ariel.co.uk/en-gb[Accessed on 26thJune 2019] Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014)Principles of marketing. 6thedition. Welbourne: Pearson Australia. Baker, M. J. (2014)Marketing strategy and management. London: Palgrave Macmillan. Bhasin, H. (2016)Marketing mix of Ariel[Online]. Available from: http://www.marketing91.com/marketing-mix-of-ariel/[Accessed on 26thJune 2019] Bhasin, H. (2016)SWOT Analysis of Ariel[Online]. Available from: https://www.marketing91.com/swot-analysis-ariel/[Accessed on 26thJune 2019] Chernev, A. (2018)Strategic marketing management. Chicago:Cerebellum Press. David, F.R. (2011)Strategic management: Concepts and cases. India: Pearson/Prentice Hall. Dawson, J.A. (2014)The Marketing Environment (RLE Marketing). New York: Routledge. Frynas, J.G. and Mellahi, K. (2015)Global strategic management. USA: Oxford University Press. Grant, R.M. (2016)Contemporary strategy analysis: Text and cases edition. New Jersey: John Wiley & Sons.
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Marketing Strategy16 Ho, J.K.K. (2014) Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), pp.6478-6492. Hollensen, S. (2015)Marketing management: A relationship approach. India: Pearson Education Limited. Išoraitė, M. (2016) Marketing Mix Theoretical Aspects.International Journal Of Research – Granthaalayah,4(6), 25-37. Khan, R.A.G., Khan, F.A. and Khan, M.A. (2011) Impact of training and development on organizational performance.Global Journal of Management and Business Research,11(7). Kotler, P. (2015)Framework for marketing management. India: Pearson Education. Kumar, V., Rahman, Z., Kazmi, A.A. and Goyal, P. (2012) Evolution of sustainability as marketing strategy: Beginning of new era.Procedia-Social and Behavioral Sciences,37, pp.482- 489. Lovelock, C. and Patterson, P. (2015)Services marketing. Australia: Pearson. Luca, N.R. and Suggs, L.S. (2010) Strategies for the social marketing mix: A systematic review. Social Marketing Quarterly, 16(4), pp.122-149. Rothaermel, F.T. (2015)Strategic management. UK: McGraw-Hill Education. Trading Economics (2019)United Kingdom GDP[Online]. Available from: https://tradingeconomics.com/united-kingdom/gdp[Accessed on 26thJune 2019] Wilson, R.M. and Gilligan, C. (2012)Strategic marketing management. New York: Routledge.