Performance Improvement of Company Using Marketing Strategy

Executive Summary2 INTRODUCTION 4 PART 14 Marketing audit of the organization 4 PESTEL Analysis 4 Critical evaluation of the organization's competitive edge & organisation's effectiveness by providing an evaluation of competitive performance 7 PART 28 Segmentation, targeting and positioning 8 Targeting And Positioning Of Ariel9 Recommended marketing strategies 11 CONCLUSION 12 REFERENCES 14 INTRODUCTION Marketing strategy is a forward looking, long term approach for planning with the goal of accomplishing a sustainable competitive advantage. This is a laundry detergent and Ariel is a

Marketing strategy

Executive Summary
A brief information of marketing strategy has been analysed in order to improve the
performance of organization. Different external and internal factor of organization. The porter
five force model has been used to analysis the competitive for company. For better performance
of company in market place STP has been used.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
Marketing audit of the organization.......................................................................................4
PESTEL Analysis...................................................................................................................4
Critical evaluation of the organization's competitive edge & organisation's effectiveness by
providing an evaluation of competitive performance.............................................................7
PART 2............................................................................................................................................8
Segmentation, targeting and positioning................................................................................8
Targeting And Positioning Of Ariel.......................................................................................9
Recommended marketing strategies.....................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing strategy is a forward looking, long term approach for planning with the goal of
accomplishing a sustainable competitive advantage. It contains the organization's key brand
messaging, value proposition, other high level elements and data on target customer
demographics. A good strategy for marketing should be drawn from research of market and
focus on the appropriate product mix to sustain the business and achieve the maximum profit
potential (Alqahtani and Gupta, 2017).
Proctor & Gamble offers wide range of products,; Ariel is one of the high demanded product
of company. It is a laundry detergent and Ariel is a brand of P&G in different countries. This
detergent powder first developed in 1967 in UK market. Ariel is marketing line of laundry and
detergents made by proctor and gamble.
In this study, full marketing audit of internal and external environments. Assessing
strengths, weaknesses, opportunities and threats of Ariel. PEST analysis of organization.
Providing a critical evaluation of the organization's competitive edge (USP). Report will also
highlight Organization's effectiveness by providing an evaluation of competitive performance by
including other relevant market performance in respect of growth, sales trend and profitability. It
will also analyze target segment and set clear marketing objectives to increase brand awareness,
market share and growth in sales volume and profitability. Report will also lay emphasis on New
marketing strategy to address these objectives with the application of marketing mix of Ariel.
PART 1
Marketing audit of the organization
PESTEL Analysis
Political Factor-
This is the element that impact on overall working of business, P&G being a global brand
needs to take care of political situations otherwise it would not be able to sustain in market for
longer duration. It has to ensure implementing global and regional both regulations carefully in
business practices so that enterprise can generate revenues. Government of UK has made
changes in taxation polices which has affected sales of Ariel product of P&G to great extent.
Increasing tax rate on such products have reduced sales of Ariel detergent by 5% in a single year
(Hult and Ketchen, 2017). Apart from that local government of London has started imposing
heavy duties on purchasing of raw material which has reduced production capacity as well.

Hence political regulations impact on Ariel to great extent. P&G follows all regulations carefully
and take care of political changes which helps the firm in maintaining competition in the market.
Economic factor
This is another element which impact on performance of P&G to great extent. Due to
inflation in UK demand of Ariel gets down which has affected profitability of P&G to great
extent. But due to positive economic condition in 2012, P&G has raised 19% market share of
Ariel which is positive impact of this element on business unit (Kiseleva, 2017).
Social factor
Ariel product of P&G is able to satisfy needs of consumers, as it is cost effective product
which is affordable by wide range of consumers. Company has concentrated on health issues and
safety problem related to using detergents. In order to minimize such problems P&G has ensured
that it does not use any kind of chemical in its Ariel products. Hence people like this product
which has improved its brand image to great extent. Now P&G has started showing logo in Ariel
that has helped in promoting social desirability hence people like this item and buy it frequently
(Kolb, 2016).
Technological factor
P&G is taking support of e-marketing tactics in order to make great connection with
buyers and improving its brand image. Due to lack of technical capabilities, Ariel has faced huge
issues and it was very difficult for it to maintain its brand image. Hence P&G started using e-
marketing techniques to gain competitive advantage which has reduced cost of production to
great extent because by this way demand of Ariel has been raised at global level (Liang and
Nguyen, 2018).
Environmental factor
Ariel concentrates on sustainable development hence it has started using recycling
process and has contributed well in improving environmental condition of UK. Use of such kind
of renewable resources have improved brand image of Ariel to great extent and it has created
positive image in the mind of consumers.
Legal factor
P&G always follow all the regulation made by government and make changes in its
practices asper the current laws. It ensures that all the regional and global rules are fulfilled by

firm which has helped business in raising its brand image and performing well in the market
(Perreault, 2018).
SWOT analysis
It is the tool which is used to identify internal positon of company and analyzing its
capabilities to manage work.
Strength
 Ariel is the global brand and has covered 19% market share which is the biggest strength
of organization. As people like this product and are highly satisfied with the brand. Hence
demand of Ariel is increasing day by day. Being a global brand company always get
benefit to attract more people and serve them well.
 Quality is another strong point of Ariel brand;, Ariel is popular for its amazing quality.
There ae many competitors of it but still consumers are highly satisfied with the quality
of this detergents (Solberg, 2017).
 Innovation is strong point of Ariel, it always takes care of needs of buyers and ensure that
people like its products which make it unique from other brand. It implements innovative
ideas to raise quality of detergent which has made it most popular brand across the world.
Ariel has spent around 60% of entire budget in research and development activities so
that it can realize the needs of consumers. It has introduced fragrance detergent which
has raised demand of this item.
 Ariel is using high technology Pionner which is another strength of business unit.
Weakness
 Ariel is available at very low cost hence it has many substitutes which creates problem
for the firm in maintaining its market position. Unilever is the biggest competitor of
Ariel which has 18% shares in market hence substitutes are the weakness of the firm.
 High competition is another weakness of the Ariel,
 Low recall significance is another drawback of Ariel.
Opportunities
 Availability of huge rural market is the biggest opportunity for Ariel, there are many rural
areas where such kind of detergents are not available, Ariel is cost effective hence it is

affordable by many of the rural consumers hence entering into rural areas is the biggest
opportunity for business unit (Varadarajan, 2015).
 Brand traces is considered as biggest opportunity for Ariel as it has chance to raise its
consumer base through brand traces.
Threats
 High competition creates threat to the firm, as it sometimes fail to deal with such
competitor effectively.
 Price war is another biggest threat to the Ariel. Surf, Henkel etc. many brands are
available which are offering same kind of products at same price hence price war create
problem for Ariel (Wymer, 2017).
Organization positon
Ariel has developed its unique brand image in the market, it has many competitors such
as Vanish, Cascade, Surf etc. Ariel is popular for its brand symbol which supports the firm in
gaining competitive advantage. It has become the trusted band hence it has made strong positon
in the market. Company is fulfilling its corporate social responsibility in great manner which has
made this firm unique from other competitors (MARKETING THEORIES – PESTEL ANALYSIS,
2019)
Revenues
Ariel 50.4M
Cascade 10M
Critical evaluation of the organization's competitive edge & organisation's effectiveness by
providing an evaluation of competitive performance
Competitive edge (USP)
USP means Unique selling propositions. It is a marketing concept for successful
advertising campaigns. This term is used to explain the personal brand of a company. But now it
is used to describe the similar objects from other objects or competitors (Hult and Ketchen,
2017).
The advantage of P&G a multi-brand portfolio is that it allows the organisation to cover
all the different needs in a given category. It is one the most stable and oldest consumer products
organization spread over 180 countries (Kiseleva, 2017).

The USP of Ariel, in the marketplace is that product which has been in existence from
many years. It has established an image as a detergent which can remove the toughest and
dirtiest stains from cloths. It is 1st fragrance detergent introduced by the company (Kotler and
et.al, 2015).
Growth:
Ariel is the premium brand which has developed a unique brand image in United
Kingdom. Recently company has made changes in its pricing and has started offering average
price products to consumers which has made it low price detergent. But due to ineffective
advertisement tactics sales of company has been reduced .
Sales trends
Sales of Ariel has been increased by 37% whereas Unilever’s sales has
reaisedraised by 55%.
PART 2
Segmentation, targeting and positioning
Segmentation, targeting, positioning (STP) are three major elements of marketing. STP
helps the firm in defining the market and taking right action to meet the needs of potential
buyers. Ariel adopts the STP model of marketing where they can discover their customer and
targeting them. If the company follows the STP model, then their marketing techniques will be
more effective and efficient (7 P'S OF MARKETING, 2019). Ariel segments their target market,
targeting their best customer and then positioning their products and services in the target market
it will increase the growth of the business at a very faster rate. The goal of the company is to
create value for the customer and most important is customer relationships. By adopting STP
Ariel can come to know that which customer it will serve their products by segmenting their
markets. Then company selects their markets to serve their products. These are called
segmentation and targeting. Lastly the company decides how to serve the selected customer is
called positioning. Segmentation, Targeting and positioning are explained below:
Segmentation
It is the tactic which define the market and on the bases of features of market it divide s
people in different group. Segmentation helps in analysing different needs of different consumers
and offering them same products so that their needs can be satisfied. Company directly focuses

on finding the market where they can sell their products and services (MARKETING THEORIES
– PESTEL ANALYSIS, 2019). A company have to determine which segments offers them the best
opportunities. So market segmentation is where a company divides the markets into groups of
people according to their needs, behaviour, wants, demands etc. The company can divide the
market on different variable which is suitable for the company i.e. Geographic, demographic,
psychographic, and behavioural factors that are important for these segmentation process.
Ariel focuses on family size of consumers and offers then products accordingly. It adopts
demographic segmentation in which income, and family size of person is taken into
consideration which makes them firm able to identify various needs of various people.
Furthermore, geographic segmentation strategy is also adopted by Ariel to analyses needs of
specific geographic arearea which helps organization in satisfying needs of buyers of different
areas. In semi-rural areas people emphases more on quality hence Ariel provide them same
quality products so that they can get value for their money. This strategy of business has
supported the firm in getting success in the market. This segmentation strategy of the Ariel
supports the firm in attracting new buyers and raising sales of firm which helps in meeting its
30% sales generation business objective successfully (Liang and Nguyen, 2018).
Targeting And Positioning Of Ariel
Targeting-
It states that potential customers should be selected to whom a firm wishes to sell its quality
goods or services. This strategy involves segmenting of market means breaking a market to
segments from which they choose which market is suitable and select the goods according to the
segment this is known as targeting.
Positioning-
It means the process of making or establishing of image of a company or product
in the minds of consumers so that consumers think of it in a superior way.
Types Of Targeting Strategies In Marketing
Mass marketing- It is also known as undifferentiated marketing, it states that marketing is done
the same way to the entire market. It ignores segmentation instead of that it offers only a single
offer to the entire market and single marketing mix for everyone. In this concept market is
considered as homogeneous aggregate. It aims to reach their exposure to largest audience.

Though Ariel does not focuses on mass marketing, but in a way Ariel does it too because every
company tries to reach the largest audience possible and this concept gives the highest exposure
to a product. When Ariel advertises its products on national television, newspapers company
says it is for the target audience but it goes nationally. The success of it depends upon how many
people it reaches to out there. While this tactics come out costly but it saves money as it is
executed for one product only and one marketing mix.
Differentiated Marketing-
In this concept a company provides separate offerings in each market that is targeted. Its also
known as multi segment marketing. Each segment is given guideline to target a segment in a
particular way as it offers unique benefits to each segments. This helps the company to rise in
sales which helps in obtaining a higher market share across every segment they have targeted.
Earlier Ariel used to target only premium products but now it has started targeting upper middle
class and semi-rural class which helps in increase of sales and to obtain a higher market share
and in a way when it comes to targeting gender Ariel already did that on Women. It is a costly
method as you are targeting different segments.
Niche Marketing
This strategy targets only few specific segments of the customer population. Its goal is to obtain
high penetration among the selected targeted segments.
Ariel started with niche marketing when they used to target only premium consumers who were
ready to pay more for the superior quality of products they offered. The reason a company uses
niche marketing is to maintain a image in the market that it is for a specific type of people like
premium products will be targeted for high end people and normal products will be targeted for
low end people.
Micro Marketing-
It is also known as individual marketing. It is targeted on very small segments on the basis of
geography. It can be very resourceful if customers get what they need.
Ariel does not uses local marketing or targeting according to geography.
SMART objectives
 To increase sales of Ariel by 30% till the end of 2019.
 To enhance number of customer of Ariel by 10% in rural area till the end of 2019.

Recommended marketing strategies
Marketing mix refers to those actions and methods which are used to promote their brand
and products in the market. There are 7 P's in marketing mix which can used by companies for
their product promotion. These 7 P's are Product, Place, Price, Promotion, People, Physical
Evidence and processes are explained below.
PRODUCT:
Products refers to the item which is offered by the company to their customer according
to their wants and needs. Ariel focuses on the quality, design, features, packaging of the Ariel
washing powder so that they want to give the best washing powder to their customer and it will
increase the customer relation of the company. Brand ensures offering value for money hence
maintain its quality and ensure the safety as well. Hence demand of its Ariel product is
increasing day by day which can help the firm in meeting its sales target objective of 30% within
stipulated period of time (7 P'S OF MARKETING, 2019).
PLACE:
Ariel ensures that reach to mass audience hence implements direct and indirect both
distribution channels to reach to large number of consumers. For the new product it needs to
implement in-store placing strategy which will help in gaining attention of potential buyers. It
can also develop strategic location to work better in the rural areas which will help in increasing
number of consumers in rural areas easily by 10% till end of 2019. Furthermore, use of
wholesaler distribution strategy can also help Ariel in attracting more consumer and serving in
villages and semi rural areas effectively. By this way entity would be able to raise its sales easily.
PRICE
The company should fix the amount of the product which is affordable by the customer
and comparably low from its competitors and also sometimes give discount to their customer.
Pricing means amount which a customer happy to pay for the product (Mohammad, 2015).
People like to spend their money in such products where they can get value for money. Ariel has
to reduce its prices to gain attention of people who live in rural areas. Penetration pricing
strategy would be helpful for Ariel as it would help in gaining attention of people and if product
is affordable them rural areas people will like to buy it. Furthermore, to raise sales in semi-rural
areas it should take assistance of cost plus pricing strategy. By implementing these strategy Ariel

would be able to raise its sales by 30% till the end of 2019 successfully (Liang and Nguyen,
2018).
PROMOTION:
A company adopts various techniques and methods for promotion of their products from
this they can sale their products in large quantity. Ariel uses TV channels, social media, digital
marketing, etc. Use of social media would be better for the brand in reaching to mass audience
and making people ready to spend money in Ariel. This will influence their mind and they will
buy this product which will help the firm in raising its sales. For raising sales in rural areas it can
take support of billboard advertisement which would be great way to make people positive
towards the brand. It can also show its contribution to society by conducting CSR activities in
rural areas which will increases awareness among rural audience and they will purchase product
easily (Kiseleva, 2017).
PHYSICAL EVIDENCE:
Physical evidence refers to all about creating a brand face for their product. It plays a
vital role in the market. Logo of Ariel is amazing which gain attention of buyers. Apart from this,
its quality and quantity influence buying decision of consumers hence this Ariel provide high
quantity products at affordable rate to consumers. This
PEOPLE:
People is the essential element for the marketing. All peoples have their own roles to
play without getting in touch with the customers. Ariel will train people and will give them
rewards so that they feel motivated and work better in the brand. this would help in serving
consumers well. By this way Ariel will be able to raise awareness among people which will raise
its sales in rural and urban both areas significantly (Kotler and et.al, 2015).
PROCESS
Process of Arial would be smooth, as it will make face to face contact with consumers
and consumers will be able to know detail about this product. There will be no barrier hence
problem of people will be resolved soon which will help Ariel in raising the sales in rural areas
by 10% till the end of 2019 (Alqahtani and Gupta, 2017).
CONCLUSION
From the study conclude that Procter & Gamble is one of the largest consumer product in the
world. Including SWOT analysis and PESTEL of Ariel product. A brief description over the

Ariel's unique selling proposition(USP). P&G is one the most aggressive marketers and is the
largest advertiser in the world. This study represents that how growth strategy, sales trend and
profitability effectively capture larger market area in comparison to other competitors.
Awareness of brand among all category consumers in respect of higher market share , increase in
sales volume and improvement in profitability. Explanation about how marketing strategy made
more effective using 4P's of marketing mix. Ariel with strong consumer base has potential for
growth and acquisition of new consumer currently choosing competitor brand.

REFERENCES
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Wymer, W., 2017. Social marketing strategy and industry involvement. Journal of Social
Marketing.7(3). pp.297-304.
ONLINE
7 P'S OF MARKETING. 2019. [online] Available
through.<https://www.business.qld.gov.au/running-business/marketing-sales/
marketing-promotion/marketing-basics/seven-ps-marketing>
MARKETING THEORIES – PESTEL ANALYSIS. 2019. [ONLINE] Available
through:<https://www.professionalacademy.com/blogs-and-advice/marketing-
theories---pestel-analysis>

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