Ariel's Marketing Strategy Analysis

This assignment requires students to analyze Ariel's marketing strategy in detail. The focus is on understanding how Ariel positions itself in the market, identifies its target audience, competes with rivals, and adapts to changing economic and social conditions. The analysis should cover aspects like product differentiation, pricing strategies, distribution channels, and promotional activities.

MARKETING STRATEGY
1

EXECUTIVE SUMMARY
In order to survive in the competing environment it is essential for organization to focus
on devising the adequate marketing strategy that support the overall organization in attaining
future direction. Along with this, with a proper marketing strategy, company can effectively
target and position itself in the market.
It has also measured various internal as well as external factors that affect the overall
operation and activities of the organization with the help of PESTLE and SWOT analysis. Along
with this, report also include evaluation of competitive advantage of firm through assessing the
unique selling point (USP) that distinct themselves from their rival companies. In addition to
this, report also focuses on recommending the segmentation, targeting as positioning of the
products so that large customers get attracted towards it.
2

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
Situational analysis......................................................................................................................4
Competitive advantage.................................................................................................................6
Evaluation of current marketing strategy.....................................................................................8
PART 2............................................................................................................................................9
Segmentation, Targeting & Positioning (STP)............................................................................9
Recommended Objectives and goals (SMART)........................................................................11
Recommend marketing strategies based on the application of marketing mix.........................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15
3

INTRODUCTION
In the present scenario, developing marketing strategies for company is considered as the
most challenging approach as by growing opportunities in market with the help of effective
marketing strategy, company can directly sustain their business (Berthon and et.al., 2012).
Therefore, formulating effective marketing strategy focuses on determining different ways
through which company can easily target their customers in order to increase sales volume.
Presently, report is conducted for the purpose of measuring marketing strategy of renowned
washing powder brand, Ariel. It is the flagship brand of Procter & Gamble that deals in offering
range of biological washing powders in different markets. Report is basically covered into two
parts that is part 1 and part 2 under which they analyse the external as well as internal
environment in which Ariel operates their activities. Along with this, it will also evaluate the
current marketing strategy that is used by washing powder firm to target their customers.
PART 1
Situational analysis
PESTLE Analysis
External Factors
Political The political factor focuses on political norms as well as regulations
that directly influence company's performance to become profitable
and successful. The brand, Ariel, operates in Middle east market that
basically has political unrest situation. Therefore, it affects their
operations (Lusch and Vargo, 2014). On the other hand, crash in the
oil prices in 2012 within UK also affects their operations as it directly
impacts the transportation cost.
Economical Another factor is economical that plays a significant role in the
success and failure of company (Bosomworth, 2013). With the growth
in economy, individuals will prefer the premium washing powder for
clothes as with economic growth, it may result in increasing the
purchasing power of individuals.
4

Social Social factor is also considered as an effective factor that supports
company in determining the needs of customers regarding washing
powder as well as clothing soaps (Li, Song and Collins, 2014). For
instance, customers are focusing on using fragrances washing powder
as well as those that do not affect their hands as presently, buyers
have become very health conscious.
Technological Another external factor is technological that directly affects the
activities of Ariel with respect to the way in which it will deliver their
washing powder as well as cleansing items in the market (Laroche,
2014).
Legal Legal factor also plays a vital role in the operations of Ariel that is
government has focused on various policies and laws related with
health as well as safety of individuals that are needed to be focused by
P&G for the safety of customers and children (Baker and Saren,
2016).
Environmental In order to succeed in the competitive market, P&G as well as their
brand, Ariel, needs to focus on the environmental factor so that they
can reduce negative consequences on consumers through using
washing powder (Chung, Lu Wang and Huang, 2012). Furthermore,
company also focuses on effective packaging of their washing powder
that is the packaging of washing powder must be recyclable so that it
may not affect the surroundings.
SWOT
Strength
 One of the leading washing powders in
segment.
 Deals in offering high quality washing
Weakness
 Key weakness of Ariel is that there are
various lower price washing powder
products that are available in the
5

powder that supports in removing the
toughest stains (Pavlou and Stewart,
2015).
 Company also deals in different
marketing tactics that has built a strong
image in the minds of customers.
 It is the key brand of P&G that
introduces washing powder with
fragrances and stain removers in the
market (Bahadir, Bharadwaj and
Srivastava, 2015).
FMCG market.
 Another weakness of company is that
FMCG market faces strong competition
in the market.
Threat
 Major threat of Ariel is that competitors
use Ambush marketing which shackle
the brand image of Ariel in the market.
 Another threat within industry is
aggressive price competition by rival
companies.
 Imitative washing powder in the rural
areas is also considered as the major
threat for company.
Opportunity
 Firm has the possibility to grab
untapped rural market for expanding
their activities.
 Organization also has an opportunity to
use effective positioning technique to
renovate brand image in the minds of
their customers (Robles and Hassan,
2015).
Competitive advantage
Company profile:
As the use and popularity of washing machines has grown largely, washing powder is
required to clean the clothes and for keeping them fresh (Sharma, 2013). It is a biological
product which is free from any form of bleach and is able to protect the natural colours of
clothes. Ariel has also re-launched its own products with various innovations in order to keep
6

pace with the changing time. With its unique ingredients, Ariel assures its consumers with
impeccable cleaning of clothes.
Key competitive advantage or main USP of Ariel is that company is mainly serving
washing powder industry for the past many years. Therefore, firm has a strong presence in the
market for decades (Shaw, 2012). Thus, it supports the organization in establishing their brand
image in the market and among customers whose products are effective enough in removing dirt
and difficult stains from all types of clothes. This USP of Ariel distinguishes their products from
the rival companies that is Surf Excel. In addition to this, it also supports the firm to sustain in
the competitive environment. Along with this, another USP of Ariel is that it is considered as the
leading company that deals in manufacturing products with fragrance for customers so that they
can easily attract them (Shimp and Andrews, 2013).
Along with this, Ariel also features competitive advantage related with targeting
customers of all segments whether they are from premium segment, middle level customers from
mass market (Silverman, 2011). With increasing preferences of healthier washing powder that
may not affect the hands of consumers while cleaning clothes, company has manufactured a
different washing powder so that it will not harm their health. In the past, Ariel focuses on
offering washing powder that contains high ratio of bleach that negatively affects the skin in
terms of rashes (Sirgy, 2014). Therefore, with the changing scenario, company innovated their
product with using different ingredients so that it may not harm the health of customers. Thus, it
can be said that competitive advantage of Ariel will support company in maintaining its brand
image in the competitive industry.
Evaluation of current marketing strategy
In order to succeed in the competitive market among rival companies of Ariel, that is,
Surf Excel, it uses effective marketing strategies that support them to survive in the market. It
has been assessed that currently, company is using market penetration strategy to stay in the
competition for a long duration (Ariel, 2016). This strategy basically focuses on offering or
selling the present product in existing marketplace so that they can attain large market share.
This strategy must focus on persuading or influencing customers of different segments to
purchase their products. Ariel must focus on using various marketing tactics like competitive
7

pricing strategies, increasing their promotional and advertising activities as well as using sales
promotion techniques to generate the sales of their washing powder in market (Market share,
2015). Furthermore, with the help of market penetration strategy, they can stay competitive in
the long run that further results in improving their profit margins, increasing sales of their variety
of products, etc.
Along with this, it has also been assessed that to survive or hold dominant position in the
market, company needs to get engaged in using effective pricing policies such as penetration
pricing strategy for their new range of fragrance washing powder products. Under this current
marketing strategy, company focuses on reducing or lowering prices of their products with the
key aim to generate more sales volume with increasing number of their production unit. With the
help of using penetration pricing strategy, company can easily target their new customers and
encourage them to switch towards the new product of Ariel due to their low prices (Marketing
strategy, 2015). In addition to this, it has been also evaluated that currently, Ariel also focuses on
using traditional method for distributing their products to the ultimate customers through retail
outlets or via departmental stores that company does not have in their authorized stores.
Furthermore, through evaluating the current marketing strategy, it has also been identified that in
order to increase market penetration of Ariel, company greatly focuses on aggressive
promotional events that is launching their advertisement campaigns that results in enhancing and
creating high brand awareness in the market (Doole and Lowe, 2012). Along with this, sales
promotion activity is also linked with the washing powder products so that it would attract a
large base of customers towards their products.
PART 2
Segmentation, Targeting and Positioning (STP)
It is with reference to state about the STP strategy of marketing by Ariel where it is a
vital subsidiary part of Proctor and Gamble (P&G) firm. P&G is known for its FMGC services
where Ariel is amongst its home care brands of products (Proctor and Gamble, 2015). It is with
a contending prospect of working where they have challenged to remove the toughest stains and
marks from cloths. STP strategy of marketing hereby refers to a three leading aspects, that is,
segmentation, targeting and positioning of goods and services in the market.
8

It is considered to be an important tactic of marketing products where companies like
Ariel work in a systematic and dignified prospective of work. It together assists them to obviate
any prior wastage of accessible resources by significantly using them in an appropriate manner
(Spelman, 2015). Thus, on referring to the STP strategy of Ariel where it is known for its widely
innovated commodities, it has recently launched a new product of 3in1 PODS washing capsules.
Below delineated factors define three precise components of STP with reference to the newly
introduced product of Ariel: Segmentation- It is the foremost constituent of implementing procedure of STP
marketing where organisations should firstly refer to segregate the entire market into
segments (Douglas and Craig, 2011). This makes it easy for entities to create a product
that matches with the preferential needs and demands of their segmented set of customers
with no decrement of resources. However, such focussed format works as a greater
assistance to the entities like Ariel where its current strategy of market segmentation
refers to the demographic alternative of products. Demographic segmentation is based
upon three vital compositions of age, gender and income level of consumers. Ariel with
an analogous cogitation of such format refers to the third concept of determining the
income level of its aimed set of clients and users (Douglas and Craig, 2011). It therefore
exists with some qualitative products with a premium pricing strategy. As a result to the
same, Ariel directly focuses upon people who readily pays for the products which exist
with good quality and a genuine nature. Targeting- It refers to a subsequent strategy of STP in which organisations mainly refers
to target the segmented set of customers in the above tact. Therefore, with a similar
reference to it, Ariel hereby refers to target the top middle class and affluent people of
society who volitionally correspond to the premium quality products of Ariel. This
peculiar strategy of targeting exists with a vital alternative of differentiated marketing
where Ariel have accordingly refer to target two leading groups of customers. It is mainly
with reference to its recently launched product of 3in1 POD washing capsules where the
cited firm precisely refers to make distinct package for rich and upper middle class
people by concentrating upon their different levels of income. Prices are however
segregated as per the enumerated weight of packages with a distinct cost of all. Here,
9

packets with low weight are less priced which is mainly considered by the higher middle
class people who occasionally refer to use such premium goods and thus, refers to often
buy the products. However, other packages with more weight are highly priced for the
wealthy category of people who regularly use this product and hence, goes for a frequent
purchasing. Positioning- It is an ultimate strategy of marketing which means to broadcast the active
existence of products in markets. This together associate with another vital consideration
of promoting launched commodities by significantly defining their qualitative attributes
to the targeted segment of users (Kurt and Hulland, 2013). Ariel hereby uses some fine
mediums of advertisement via TV channels where it also uses the paper techniques of
posters, hoardings and brochures, etc. However, another package with more weight is
highly priced for the wealthy category of people who regularly use this product and goes
for a frequent purchasing.
 Positioning- This strategy of marketing which means to broadcast the active existence of
products in markets. This together associate with another vital consideration of promoting
the launched commodities by significantly defining their qualitative attributes to the
targeted segment of users (Lee and Carter, 2011). Ariel hereby uses some fine mediums
of advertisement via TV channels where it also uses the paper techniques of posters,
hoardings and brochures, etc.
Recommending objectives and goals (SMART)
It is with reference to recommend Ariel about some impelling strategies of marketing its
products to the customers where it can refer to use some topical measures of advertising goods
and services (Pavlou and Stewart, 2015). It also refers to another leading tact by Ariel where they
can implicate a pivotal step of SMART objectives. Such setting of goals work upon five major
arenas in which establishments like Ariel prominently determine a specific target to work upon.
In addition to this, ascertained target should together reflect some other eminent features of being
measurable and reasonable in nature and can be attained with a specific frame of time (Chung,
Lu Wang and Huang, 2012). Hence, on referring to the same, Ariel is hereby recommended to
implicate some efficacious strategies of positioning its product where they should use some latest
10

means of advertisement via the recent tools of internet and social media. Distribution strategy of
Ariel together refers to the same where they can use both the means of direct and indirect
distribution of its newly introduced product.
Along with that, they can also implement some progressive promotional activities for the
users by offering discounts to them. Such effective measures will directly result in an enhanced
state of profits and revenues with rising sale of goods. Sales are a resultant factor of marketing
where Ariel should substantially adopt some impressive means of broadcasting their
commodities to the users (Bahadir, Bharadwaj and Srivastava, 2015). They can hereby refer to
distribute brochures of their 3in1 POD washing capsules to acknowledge the audience about its
leading benefited features. Online website of Ariel can together refer to work with a similar
perspective where the viewers can directly refer to engrossed content or characteristics of
products at the time of ordering it online. This will also lead to build a valuable sense of buying
goods and services by interested parties of users where they will thoroughly be impressed by
such transparent measures of Ariel (Robles and Hassan, 2015). It will prove to be profitable for
Ariel where they will also attain a raised image of their brand along with increasing earning of
incomes.
Recommending marketing strategies based on the application of marketing mix
Marketing being a resultant factor of sales play an utmost important role in every
organization where it refers to provide a competitive advantage to the firms like Ariel. It is
mainly due to high existence of rivals where the cited entity is together dealing with two active
challengers, that is, Henkel and Surf Excel (Baines, Harris and Lewis, 2002). Thus, on enforcing
some unique defined strategies of business, Ariel can gradually attain a persuasive image of its
brand in comparison to its ascertained number of contenders that are positioned in the market.
Marketing is hence depicted to be the most vigorous solvent to attain a compelling position
where quoted firm can also refer to entail four pivotal components of marketing mix. This will
give a prior sense of operating in a systematic format where Ariel profoundly works upon the
below mentioned factors of marketing mix- Product- It refers to the foremost factor of marketing mix in which the manufactured
products should always consist of some unique attributes as a primary mean of acquiring
11

a competitive advantage. Ariel with has introduced the most innovated product of 3in1
POD washing capsule. This is referred to be the most invented strategy of Ariel where it
has also defeated all its leading number of contenders. It doesn't reflect any prior
recommendation for Ariel with a relative context of its product where such progressive
enforcement of innovation is always assured to give some best possible outcomes. Place- It refers to an apt positioning of product in the market that can easily reach to the
utmost extent of its users. Ariel with a similar reference to it works with a powerful
distribution strategy of products where it refers to allocate the commodities via both
measures of direct and indirect dispersion. Cited enterprise is having a strong formulation
of its supply chain management where it has maintained a respectable relationship with
all its distributors and suppliers (Czinkota and Ronkainen, 2012). The quoted entity
presently refers to store their goods in warehouses with a direct linkage with retail
organizations from where customhouse can eventually acquire its products. However, in
this particular case, Ariel can refer to locate its own establishment in the form of shops
that will directly serve upcoming users with a free demo of usage. Price- Ariel is hereby referred to work upon the premium strategy of pricing due to
which it owes products with slightly higher costs as compared to their competitors.
Premium pricing of goods is however predicted to be a considerable measure that
demands for a qualitative positioning of goods and services. Ariel thus works with a
reflective image of its brand where it builds some high quality products for its customers.
However, such strategy of pricing exists with a quite uncertain clause that sometimes lead
to provide less responsive approach by the users. In such a case, competitive strategy is
referred to work with a more compelling approach where Ariel can refer to compare the
costing strategies of its competitors before framing prices of its own commodities.
 Promotion- It is yet another crucial strategy of marketing in which promotion is to
broadcast the active existence of products to the clients. Ariel hereby uses some general
strategies of mass marketing as of its competitors through varied means of advertisement
via newspapers, hoardings and magazines, etc. However, they can also refer to inculcate
here some strategies of online marketing via some contemporary tools of internet and
social media. Some other important recommendation of promotion is to provide some
12

impelling discount offerings to the users (Dibb, Farhangmehr and Simkin, 2001). It is
where on setting up their own establishment, Ariel can hereby refer to some introductory
offers by providing discounts on the first purchase of its newly launched products. This
can surely lead to favorbale results such as high level of customer attraction etc.
CONCLUSION
From the above report, it has been summarised that marketing strategy plays a significant
role within organization that supports company in promoting their products as well as services in
the market so that they can easily target customers of different segments. Therefore, it is said that
strategy within organization plays a pivotal role in attaining the short term as well as long term
goals that assist them to sustain their business in the long run. Furthermore, report has also
analysed internal as well as external environment through focusing on tools, that is, PESTLE and
SWOT analysis. With the help of these tools, Ariel can easily access their internal as well as
external factors that impact their operational activities. Along with this, report has also measured
their competitive advantage that is their USP which assists them to be different from their rival
companies. Further, it has also recommended Ariel about some impelling strategies of marketing
its products to the customers where it can use some appropriate measures of advertising goods
and services. This also refers to another leading tact by Ariel where they can implicate a pivotal
step of SMART objectives. Lastly, the report has also focused on providing necessary
recommendations related with marketing strategy through applying all elements of marketing
mix.
13

REFERENCES
Books and Journals
Bahadir, S. C., Bharadwaj, S. G. and Srivastava, R. K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal
of International Business Studies. 46(5). pp.596-619.
Baines, R. P. Harris, P. and Lewis, R. B., 2002. The political marketing planning process:
improving image and message in strategic target areas. Marketing Intelligence &
Planning. 20(1). pp.6–14.
Baker, M. J. and Saren, M., 2016. Marketing theory: a student text. Sage.
Berthon, P. R. and et.al., 2012. Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons. 55(3). pp.261-271.
Bosomworth, D., 2013. Mobile marketing statistics 2015. Smart Insights site.
Chung, H. F., Lu Wang, C. and Huang, P. H., 2012. A contingency approach to international
marketing strategy and decision-making structure among exporting firms. International
Marketing Review. 29(1). pp.54-87.
Czinkota, M. and Ronkainen, I., 2012. International marketing. Cengage Learning.
Dibb, S., Farhangmehr, M. and Simkin, L., 2001. The marketing planning experience: a UK and
Portuguese comparison. Marketing Intelligence & Planning. 19(6) .pp.409–417.
Doole, I. and Lowe, R., 2012. International marketing strategy. Cengage Learning.
Douglas, S. P. and Craig, C. S., 2011. Convergence and divergence: Developing a semiglobal
marketing strategy. Journal of International Marketing. 19(1). pp. 82-101.
Douglas, S. P. and Craig, C. S., 2011. The role of context in assessing international marketing
opportunities. International Marketing Review. 28(2). pp.150-162.
Evans, D., 2012. Social media marketing: An hour a day. John Wiley & Sons.
Fifield, P., 2012. Marketing strategy. Routledge.
Kurt, D. and Hulland, J., 2013. Aggressive Marketing Strategy Following Equity Offerings and
Firm Value: The Role of Relative Strategic Flexibility. Journal of Marketing. 77(5). pp.
57-74.
Laroche, M., 2014. New developments in global consumer behavior and marketing strategy:
Introduction to the special issue. Journal of Business Research. 67(3). pp.225-227.
14

Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction. 27(1). pp. 25-
29.
Li, H., Song, W. and Collins, R., 2014. Post-event visits as the sources of marketing strategy
sustainability: a conceptual model approach. Journal of Business Economics and
Management. 15(1). pp.74-95.
Lusch, R. F. and Vargo, S. L., 2014. The service-dominant logic of marketing: Dialog, debate,
and directions. Routledge.
Pavlou, P. A. and Stewart, D. W., 2015. Interactive Advertising: A New Conceptual Framework
Towards Integrating Elements of the Marketing Mix. In New Meanings for Marketing in
a New Millennium. pp. 218-222. Springer International Publishing.
Robles, F. and Hassan, S. S., 2015. Reaching Global Market Segments with Direct Marketing.
In Proceedings of the 1991 Academy of Marketing Science (AMS) Annual Conference.
pp. 140-143. Springer International Publishing.
Sharma, D. N., 2013. Marketing Strategy on different stages PLC and its marketing implications
on FMCG products. International Journal of Marketing, Financial Services &
Management Research. 2(3). pp. 121-136.
Shaw, E. H., 2012. Marketing strategy: From the origin of the concept to the development of a
conceptual framework. Journal of Historical Research in Marketing. 4(1). pp. 30-55.
Shimp, T. and Andrews, J. C., 2013. Advertising promotion and other aspects of integrated
marketing communications. Cengage Learning.
Silverman, G., 2011. Secrets of Word-of-Mouth Marketing: How to trigger exponential sales
through runaway word of mouth. AMACOM Div American Mgmt Assn.
Sirgy, M. J., 2014. Real Estate Marketing: Strategy, Selling, Negotiation, Management, and
Ethics: Strategy, Personal Selling, Negotiation, Management, and Ethics. Routledge.
Online
Ariel. 2016. [Online]. Available through: <http://www.ariel.co.uk/en-gb>. [Accessed on 5th
August 2016].
Market share. 2015. [Online]. Available through:
<http://www.marketingmagazine.co.uk/article/1142455/sector-insight-laundry-
detergents-fabric-conditioners>. [Accessed on 5th August 2016].
Marketing strategy. 2015. [Online]. Available through:
<http://www.marketingdonut.co.uk/marketing/marketing-strategy>. [Accessed on 5th
August 2016].
15

Proctor and Gamble. 2015. [Online]. Available through: <http://www.pg.com/en_IN/>.
[Accessed on 5th August 2016].
Spelman, M., 2015. Tactics Or Strategy: Which Marketing Approach? [Online]. Available
through: <http://www.business2community.com/marketing/tactics-strategy-marketing-
approach-01174170>. [Accessed on 5th August 2016].
16

APPENDIX
Strategy comprises with different marketing goals in one broad plan that results in
accomplishing maximum profits for business. Ariel mainly produces washing powder where it is
operating from many decades and has established the finest position in markets. Ariel has been
able to meet this demand of industry by introducing new and excellent products in the market at
regular intervals. It is a high quality brand that positioned itself as a best-seller in the washing
powder that has enzymes for removal of stain without restraint the wearing apparel. With
increasing technological factors, company would get engaged in researching ways through which
they can reduce the use of acid in washing powder. Economical factor mainly includes economic
growth and stability that affects the operations of Ariel in the overall market. Company is
engaged in selling the fragrance washing powder as well as liquids that assist customers in
removing difficult stain from all the types of clothing without damaging them. Apart from that,
social factors include changing lifestyle as well as preferences of individuals that also affect the
activities of Ariel.
17