(PDF) Marketing strategy executive summary | assignment

MARKETING
STRATEGY

EXECUTIVE SUMMARY
Marketing strategy refers to formulating a plan to serve all the short and the long-term
marketing objectives of a company. This includes all the ways companies undertake to
effectively market their products to the customers. This strategy help the firms to gain an edge in
the market and make them potential enough to be a market leader.
The current project undertakes a detailed analysis of the marketing strategy of Ariel
Company, which is a leading firm in production and supplying detergents. A detailed analysis
has been made on the internal as well as external environment of the company. Emphasis has
also been given to the company's competitive advantage over its enemies. The current marketing
strategy of Ariel has been thoroughly analysed and critical evaluation has been made in regards
of these strategies. At last, recommendations have been made regarding the STP (segmentation,
targeting and positioning) of the firm and new marketing strategies have been suggested
considering the marketing mix of the firm.
The mission of this report is to develop an effective marketing strategy that helps Ariel to
position itself again on the top of the market chain.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Situational analysis of Ariel:.................................................................................................1
P2. Competitive Advantages of Ariel over other competitive firms:..........................................3
P3. Evaluation of Ariel's current marketing strategy:.................................................................4
TASK 2............................................................................................................................................5
P4. Segmentation, Targeting & Positioning of Ariel:.................................................................5
P5. SMART Objective of Ariel:..................................................................................................7
P6. Marketing Strategies of Ariel based on its marketing mix:..................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing strategy cover all plans which provide assistance in business growth as well as
sustainability in global market. Managers include several activities which are related to sales
enhancement, operational, value position and so on (Ottman, 2017). The current assignment is
based on Ariel company, which is under the brand 'Proctor & Gamble' and was founded in 1967
in the UK. It is a global leader and giving tough competition in line of detergents products to
potential competitors. This assignment measuring situational analysis, competitive advantages
and evaluation of current marketing strategies on the bases of segmentation targeting along with
significant objectives. This assessment helps in maintaining productivity level through continuity
of maximum selling of products in potential market. These analysis will contribute in high
organizational productivity by sustaining business (Ryan, 2016).
TASK 1
P1. Situational analysis of Ariel:
SWOT: Company is well known for its excellent cleaning product which is also using in
washing machine. This analysis identifies a cluster of internal and external environment as
discussing below: Strength: It covers product quality, provide options, customer care and market share. In
respect of Ariel, company is providing best detergent product which remove solid stains
and winning customer trust. Consequently, it has second maximum market share and
profits in this similar brand category at global level. Weaknesses: This shows incapacity or dull point of an organization's activities. People
mostly favour that products which are used on daily bases, Ariel makes stain remover
detergent which can not be use on regularly. So customer decline demand at everyday
adoption of this product. Moreover, company has strong competition from its rival such
as Unilever which is gaining more market share in India. Opportunities: It shows new and existing growth of an organization. In developing
countries have maximum consumption of detergents so Ariel can enhance growth by
providing detergent product to potential customers. Mangers should also approach to new
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market in rural areas throughout low cost detergent which will cover great market share
across the world.
 Threats: This is considered on risky segment and aware to an organisation by thorough
assessment. Market has counterfeit products in rural areas, such problems are decreasing
revenue and standard of a company name. Secondly, some countries have price sensitive
markets such as India and China, so managers need to be aware for maintaining market
share. Thirdly other special detergents enable abilities to better cleaning of clothes in low
rate. Those activities can reduce company value and growth.
These exercise alert to top management about key strengthen over different rivals.
Throughout these acceptable perspective, manager can draft on developing arrangement and
essential improvement for Ariel's stability. This methodology provide an insight of relevant
information which is useful for continuous growth (Shaw, 2016).
PESTEL Analysis Political Factors: These aspects directly related to governmental rules which affect to a
company expansion and competition. United Kingdom has several uncertainty which can
create many challenges for Ariel such as trade restrictions. Profits margins are mainly
emphasize throughout changes in Govt. tax levies and consumer protection entitles.
These consideration are necessary while Ariel dealing with different countries which
allows to smooth business. Economic factors: Every country has different GDP growth rate and exchange rate. It
create many uncertainty against Ariel business expansion. So managers should be
consider on consumer habits, specific demand and supply country wise, negotiation
power with supplier and so on. This appropriate knowledge will help in production and
operational decision making process for fulfil surplus demand target market (Solomon
and et. al ., 2014). Social Factors: It leads to current trends, career attitudes, life style, consumer
preferences and demographic changes. Ariel is serving by several countries by all kind of
regions in order to extreme cleaning cloths. In rural areas public buy only low cost
regular detergents for their cloths so company need to concern on product price for these
areas to attaining maximum profits. Moreover, best quality for regular purpose also
should to be added in Ariel detergent.
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 Technological Factors: It includes social networking upgrades, artificial intelligence
and security in respect of e-business. In today's era, everyone wants to buy necessary
products through online websites (Pappas, 2016). Ariel also conducting networking
activities for providing best facilities to their customers. Company is adding some more
features to associate strong fragrance with cleanliness, neither harsh nor toxic for
fascinate to housewives. As consumer more aware about environmental aspects, company
need to paying attention on chemical ingredient which mention on product's package. Legal factors: In future prospective, legislative bodies emphasize to an organisational
terms and condition by controlling on it. It involves many voluntary agreements between
company and a country's government. Aries mangers should maintain a dialogue with
Govt. authorities, operate activities transparently, explain company policies, avoid eco
marketing, and educating people for using products.
 Environmental factors: It allows a business activities without scarifying future
generation requirement. Some countries are facing water related problems by their high
population so company need to make suitable their product for less water (Jarach, 2017).
Moreover, Ariel should consider on renewable raw and packaging material in order to
maintain natural resources. Company must exercise for energy reduction for instance
using product in low temperature washing.
Thus, it evaluates all external business environmental factors in detailed manner which
emphasize to all activities. It assists to make new market strategies to increasing competencies
with similar brand categories. Through this evolution company can develop plan for new
products in potential market which will helps in greater proficiency.
P2. Competitive Advantages of Ariel over other competitive firms:
Company using value based strategies for product positioning to connecting more
consumers at global level. Procter and Gamble are managing number of brands and serving in
180 countries worldwide. It has strong financial growth by using own manufacturing plants
across the world along with appropriate resource facilities. It states to best production and
operational level in cost effective manner. Although, Ariel concern more on premium product
sources independently by allowing eco-friendly system. Moreover, organisation follows the
concept of unique selling product in their competitive business process. Throughout these
strategies, company is world leader in detergent segment by providing quality detergent which
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removes the tough stains. People who seeks best quality and convenient product, all those are
engaging with this brand at reasonable price. Consumers can derive goods at all departmental
store as well as specific online application (Jabbar, 2016).
P3. Evaluation of Ariel's current marketing strategy:
According to views of Scrinis (2016), the current marketing strategy of Ariel is strong
enough to sustain the market conditions lately. The firm uses personalised campaigns like “My
Ariel” since 2012 which describes stories of individuals that both users and non-users of the
brand could relate to. This has helped the firm in grabbing consumers' eyeballs in the past and is
continue to sustain its position in the present. But almost every firm in the current scenario is
adopting the same method in their marketing strategies. There has been a decline witnessed in
customers' preferences regarding this strategy. The company must adopt innovative ways to
market their product or despite of its premium quality service, customers would stop
recommending this brand over the others in the market.
The balance sheet of P&G is described below:
INCOME STATEMENT
(All numbers in thousands)
Revenue 30/06/18 30/06/17
Total revenue 6,68,32,000 6,50,58,000
Cost of revenue 3,34,49,000 3,19,42,000
Gross profit 3,33,83,000 3,31,16,000
Operating expenses
Research development 0 0
Selling general and
administrative
1,86,02,000 1,84,31,000
Non-recurring 0 0
Others 0 0
Total operating expenses 5,20,51,000 5,03,73,000
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Operating income or loss 1,47,81,000 1,46,85,000
Income from continuing
operations
Total other income/expenses
net
-14,55,000 -14,28,000
Earnings before interest and
taxes
1,47,81,000 1,46,85,000
Interest expense -5,06,000 -4,65,000
Income before tax 1,33,26,000 1,32,57,000
Income tax expense 34,65,000 30,63,000
Minority interest 5,90,000 5,94,000
Net income from continuing
ops
98,61,000 1,01,94,000
Discontinued operations 0 52,17,000
Extraordinary items 0 0
Effect of accounting changes 0 0
Other items 0 0
Net income 97,50,000 1,53,26,000
Preferred stock and other
adjustments
0 0
Net income applicable to
common shares
94,85,000 1,50,79,000
It can be seen that there hasn't been much increase in the revenue of the company from
last year. Ariel can formulate its marketing strategy that could increase the revenue of the
company by attracting customers of different markets through its extensive and aggressive
promotions of its product. A more emphasis could be given to acquiring new technological
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equipments which would enhance the production capacity of the company and more products
can be distributed across the country to facilitate a strong hold on the UK market (Yang and
Wang, 2015).
TASK 2
P4. Segmentation, Targeting & Positioning of Ariel:
Ariel is one of the biggest companies under 'Procter & Gamble' which is acknowledged
all around the world. The firm keeps updating its strategy which helps it to retain its position as a
market leader in detergent brand (Chiu, Tzeng and Li, 2014). Based on the above evaluation, the
segmentation, targeting and positioning of Ariel is mentioned below:
Segmentation: Segmentation refers to diving the potential market into groups or
segments which helps the companies to sort out different customers with different needs
(Carrillat, Colbert and Feigné, 2014). In Ariel, segmentation of the market would enable the firm
to identify individuals or groups that can be a potential customers for the firm in future. The
segmentation is based on various factors.
 Geographical: This factor focuses on the geographical location of the market. For Ariel,
the potential market would be United Kingdom which has a population of more than 66
million composing of urban, suburban and rural communities. The country experiences
maritime climate.
 Demographics: This factor includes the gender, age, income and occupation of the
population. For Ariel, the potential demographics could involve general population above
15, with average income level. The focus of the company would be on urban and semi-
urban areas with average family size composed of regular, potential and non-users.
 Psychographics: It focuses on the social class, lifestyle and personalities of the customers.
Ariel would be focusing on population ranging between working to upper class, with
average lifestyle.
 Behavioural: This segment takes all the behavioural aspects of the individuals into
consideration such as their loyalty towards the brand, usage rate, attitude towards the
product and the company, etc. Ariel would consider individuals ranging from non-users
to regular users, with varying usage rates. Also, its market segmentation would include
customers that are unaware to the customers who intend to buy company's offerings.
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Targeting: It refers to targeting the potential segment or a blend of segments on which
the company applies its marketing strategy. Success and failure of the products depend upon the
acceptance of that offering in the target market. It is one of the most crucial step in setting up the
product (Scarborough, 2016). Along with this, existing products keeps modifying their target
markets according to their needs which helps them gain a competitive advantage over other
firms. The target market of Ariel constitutes.
 General population of UK who cover urban and semi-urban areas of the country.
 Population above the age of 15 years and below age 70 with income over 15,000.
However, the company would focus more women as their target customers, and family
size between 2-4.
 The company would target customers between middle and upper social class, with
healthy lifestyles who can be potential customers for the company along with the regular
users.
 Behaviour of the customers can be an important factor for the company as impressive
market strategies can easily influence customers to buy firm's offerings. Ariel would
target customers who are regular users of detergents and even those who can be potential
users of such products. Emphasis of the company would be on average and heavy users
and customers that are well aware with the product name.
Positioning: It is the phenomena through which customers develop a perception about
the brand in relation to its competitors. It helps the firm to gain a competitive edge in the market
(Funk, Alexandris and McDonald, 2016). Positioning strategy of Ariel would include factors that
would satisfy the demands of the customers. Technology would be given more importance in the
production of the product as it would help produce more units in limited time with maintaining
its quality. Moreover to attract the target market, products will be produced that will be
environment friendly and can be used effectively even in low temperatures.
P5. SMART Objective of Ariel:
SMART objectives refer to those goals that are specifically designed by the company for
fulfil their overall end-goals of the organisation. These objectives are Specific, Measurable,
Attainable, Relevant and Time-Bound, hence the acronym SMART (Pawaskar and Goel, 2016).
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The SMART objective of Ariel is to increase their sales revenue from 9% to 12% in the
span of 1 year to increase their profitability share in the UK market. This objective would help
the firm to be a market leader again in the country which would enable them to satisfy the needs
of more customers in a short period of time.
P6. Marketing Strategies of Ariel based on its marketing mix:
Marketing mix refers to the blend of the elements that are used by companies to achieve
their marketing goals. This composition consists of 7P's which are mentioned below:
 Product
 Price
 Place
 Promotion
 People
 Process
 Physical Evidence
These elements help a firm distinguish itself from its other competitive firms and
influence their customers in an appropriate and a better way, Ariel must formulate its marketing
strategies that would help the firm reinstate its position and increase its customer base in UK.
Marketing Mix of Ariel and its marketing strategies based on these mix are as follows:
 Product:
Ariel is an established brand in the UK market. Its products aim at stain removal from
clothes and cleaning them thoroughly without damaging the fabric. More demand of its product
has risen since increase in the popularity of washing machines (Grönroos, 2016). The product
strategy of the firm has always been to prevent any damage to the quality of the product. This
strategy has helped Ariel to become one of the most acknowledged brand in detergents.
However, Ariel must focus on developing products that can attract lower income groups
as well. In addition to this, in many areas in UK, washing machines are still just a concept. To
increase its customer base, Ariel should focus on developing soap bars that can easily and
effectively be used in low-temperatures too seeing the weather conditions of the country. Price:
Ariel has maintained an impressive pricing strategy so far. It keeps modifying the price of
its products according to the market it operates in. Such modifications help the firm to set a
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competitive price in the market that gives its product an edge over the other firms. Since Ariel
sells premium quality products in the market, it follows premium pricing strategy which makes
its products a little costlier than similar products in the market (Dos Santos, 2014).
In UK, the target market is ranged between the middle class to the upper social class. The
firm must lower its prices for the middle-class customers to prefer its products over competitive
products without degrading the quality of its offering.
 Place:
Place refers to the channels of distribution the firm adopts to make its product accessible
to its potential customers (Krueger and Haytko, 2015). Ariel is known to have used retail stores
as its prime source of distribution channel in the world.
Currently UK is inclining towards technological advancements. To expand its reach to
the customers in the country, the firm must opt those departmental stores and supermarkets that
are easily accessed to the customers. In addition to this, Ariel must emphasize more on online
selling through its website and establish flexible channels for customers to acquire these products
within the expected time frame.
 Promotion:
Ariel has always adopted strong and effective promotional campaigns that serve the
purpose of increasing its sales. Ariel have focused more on the traditional methods of mass
communication, like newspapers and television advertisements. The advertisements in these
mediums often focus on catchy tag-lines that inform the customers as to why prefer Ariel over
other competitive firms.
The current population of UK are more towards using social media and internet. Lately,
the country is facing a decline in the traditional methods of advertisements. Ariel should see this
as an opportunity to increase its sales revenue and should focus on developing compelling videos
and pictures to promote itself on the internet. Usage of social media portals would allow the firm
to grab attention of the millennials and would influence them to buy its products.
 People:
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Ariel operates under the flagship of P&G (Procter & Gamble) which has more than 95
thousand employees worldwide. Managers should focus on hiring more employees that are
skilled and that can help to bring more innovation in the product line of Ariel.
However, The people aspects also deals with the customers using the commodities of the
company (Strauss and Frost, 2016). Ariel must find innovative ways to retain its customers and
attract new markets with these strategies. Process:
The process in which a company offers its products and services in the market are
described in this aspect. Ariel has known to have handled its sales and marketing department
effectively since its inception. The process of ordering the company's products was quite
standard, and customers could acquire company's products from retail outlets.
With change in time and technological environment, the firm must modify its process and
use more efficient ways to make its product available in the market (Allen and et. al., 2015). It
should start selling its products online and must focus on after sales services and feedbacks from
consumers online. This would allow the firm to acknowledge the satisfaction level of the
customers and their products' usefulness. Physical Evidence:
Physical evidence refers to the tangible product the company has to offer. This aspect
arises at the final stage after the customers acquire the products. It includes, the design of the
product, its accessibility, its look, the fragrance, etc (Gillespie and Riddle, 2015).
The new products of Ariel must be available in all sizes (small, medium and large) for
customers to use it according to their needs. Because sometimes due to availability of just one
standard size, people refuse to buy the product as it doesn't serve their needs. The offerings of the
company must be attractive looking, they should clearly send the message without too much
emphasis on the written material, rather the design of the product should be attractive enough to
catch the eye of the customers. In addition to this, the products must be easily handled by the
customers and directions to use must be a crucial part of the packaging of the commodities.
These new marketing strategy can be another profitable decision for the firm and could
help to effectively raise its sales revenue and profit share.
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CONCLUSION
Thus we conclude by the above report that the current uncertain condition of the political
and economical environment of the country can be profitable of the firm if it focuses on its
pricing and promotional strategies. It is required from the product to help raise the standard of
living of the people. With its premium quality and low pricing, it can help to achieve this goal.
Ariel also has a competitive edge over many competitive firms in the UK market due to its
exceptional quality and flawless processing. However, the current marketing strategy will not be
as profitable for the company in the future as it is now. The firm must modify its target markets
periodically to serve new customers along with the loyal ones. It also must use a perfect blend of
marketing mix to achieve its SMART objectives. Reviving its strategies would enable the
company to reinstate itself as a market leader with an impressive market share all around UK.
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