MKT 306 Marketing Strategy Assignment

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MKT 306 MARKETING STRATEGY
ASSESSMENT QUESTION
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EXECUTIVE SUMMARY
The report has highlighted marketing audit which includes SWOT and PESTLE analysis of Ariel
(P&G). The report has also discribe the market share of Ariel (P&G) that what is the market and
how large is the market of Ariel (P&G). The study also describe the uniqueness of Ariel and why
the product is so much purchased by the consumers, as the product is cost effective, high quality
and easy to use. Further it highlights the performance evaluation of Ariel (P&G) ie, past
revenuegenerated. And suggestion is given to increase the sales of Ariel.
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Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
PART 1............................................................................................................................................4
Marketing audit (internal and external environment) of following organisation........................4
USP of Ariel (P&G) and evaluation of competitive performance.............................................6
PART 2 ...........................................................................................................................................7
Marketing objectives and goals to increase brand awareness, sales and market share...............7
Suggestion to improve the sales of P&G..................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Marketing strategies is a tool which determine the objectives of the organisation. Market
resarchers analyze the market and evalute the right marketing strategy for the efficiency of the
organisation. Ariel (P&G) is the marketing line of laundry detergents, the company is located in
UK. Ariel is the product which is largely sold in all types of markets. The study will highlights
the marketing audit of Ariel (P&G)(Widuri and Sutanto, 2019). internal and external factors
which are affecting the working of company. Internal factors will include SWOT analysis and
external factors will include PESTLE analysis. Further the report will highlight the market share
of Ariel (P&G). And more the study will detail the unique selling proposition(USP) of Ariel.
Further the study will highlights evaluation of performance of P&G. And 4Ps (product, place,
price, promotion) of marketing will be explained in the report. The report will do the STP of
P&G and also give suggestions to increase the sales and market share.
PART 1
Marketing audit (internal and external environment) of following organisation.
Ariel is the marketing line of laundry detergents made by proctor and gamble. The
company is located in UK. Ariel is also known as Dynamo in Malaysia and Singapore.
Marketing audit (internal) of Ariel (P&G).
Strength- Ariel (P&G) has a very great brand name and it the one of the best detergent brand.
The company has a very successful marketing and advertising channels. The products offered by
Ariel (P&G) are high quality products. The sales of company are very high as they have very
strong distribution channel(Widuri and Sutanto, 2019).
Weaknesses- The prices of Ariel (P&G) products are high as compare to other products as it
provides high quality products, which turn price conscious customers away. Some people avoid
consuming this detergent as they think about its fragrances.
Opportunities- Market of Ariel (P&G) can also be increased to rural areas. There is a large
amount of population who still not consumes these products can be converted as new users by
effcient marketing strategies. Company can also diversify its product range into another related
segments(Dai and Qiao, 2015).
Threats- Products offered by other competitive brand at low pierces affects the company sales.
The sales are also reduced due to high inflation rates(Widuri and Sutanto, 2019). Competition
from international and local brands affects Ariel (P&G)'s market share.
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Marketing audit (external) of Ariel (P&G).
Political- High taxes decreases the sales of company. Product labelling and international trade
laws impact the operation of Ariel (P&G). Political factors affecting the launch of Ariel are
health and safety laws. Employment laws of different countries are different as company
sometimes has to appoint workers at high wages.
Economic- Economy of country differs easily affect the cost bared by the company. Ariel
(P&G) making a high contribution in foreign exchange. Economic recession globally affected
the company as well as it affected other confectionery company and industries(Patnaik, 2015).
Social- Demands of company's product change due to various factors like change in the
preference of consumers. As habits of people are different, many people like to consume
products which are cheap, so there are individuals who not prefer to consume high priced
products, impacts the sales of Ariel.
Technological- Production of Ariel (P&G) requires a higher quality machines and factories
enabling high quality mass production. P&G uses media such as television, social media enables
Ariel (P&G) to advertise its products to large audience. Technological advancement such as
social media provides new consumer group which increases overall sales of organisation.
Legal- Ariel (P&G) has to introduce more rights to ensure that the workers are getting proper
wages and another benefits are being given accordingly. Copyrights have been taken by the
company as to no one can make the same products which P&G produces otherwise they will be
sued.
Environment- The weather conditions impacts the ability of Ariel to manage the transportation
of both resources which are the input and output of the company(Dai and Qiao, 2015). The
weather impacts the delivery dates of final products to the customers due to unexpected
monsoon or any environment conditions. Change in climate also impacts the quality of products.
Market share of Ariel (P&G)
Company's business operates in global market containing numerous brand in fabric and
home care category. The company provides nappies, baby wipes, bath tissues, kitchen towels etc.
in baby and family segment and in health care segment several distinct products are provided
which includes oral care, pharmaceuticals, respiratory medications and nutrition etc. The
company has a huge market share as in the fabric and home care segment (P&G) which
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generates about 31.77% of total revenue. Baby and family care generates 28.18% of total
revenue is generated. In health care 10.87% of total revenue is created by the company(Dai and
Qiao, 2015). In grooming 10.13% of revenue is generated.
P&G has invested around £ 20m into the field of ariel. P&G organised campaigns, and
these campaigns were funded by the owner of P&G. with this investment Ariel is increasing its
media investment by 40% over 2018 and is also spending around its education message by 68%
with the hope of raising 95% of UK customers. Within the liquid tabs segment ariel has 30%
share but the company wants to increase the market share by household penetration and value
sales.
USP of Ariel (P&G) and evaluation of competitive performance.
Competitive edge (USP)
USP means unique selling propositions. Clarifies successful advertising campaigns is the
theory which explains the marketing concept. The Ariel is competent in the market as it has a
aggressive promotional strategies for the product. Ariel has rooted in consumers mind about the
best detergent equals' ariel.
Unique selling propositions by which Ariel is selling so much in market are as follows-
High quality- There are many detergent companies in the market but all of them can not provide
high quality products to consumers. Ariel is a well known and old brand which has been
successful in satisfying the customer by providing quality products which were reqired by the
consumers(Boscagli, 2019).
Cost effective- P&G is known for high quality products as all the goods manufactured by
(P&G) are of superior quality, but with reasonable prices. Ariel is successful in holding large
customer base because of its prices. The unique point by which buyers prefers to purchase the
product is that it offers premium quality with reasonable prices. As the amount charged are not
so high, so it is easily purchased by consumers..
Convenience- As compare to other detergents and soaps, Ariel is the most efficient products it
can be easily used buy the consumer, it easy dissolves in water and it saves time and efforts.
Consumers not have to spend long hours on washing the clothes.
Available in different fragrances- The Ariel is selling more in the market because it is
available in many fragrances, as there are different people and different people have different
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choice, so Ariel is been successful in providing different fragrances to consumers(Piercy, 2016).
Smell of washing powder is so special and unique and this is the biggest strength of the product.
Evaluation of performance
Growth and profitability- Ariel has established its brand image as the best cleaning powder in
the industry and has been the most selling product of UK. The company has promoted some
lower priced brands so that it can compete low priced detergent companies. The growth and
profitability of the company is as follows, the company has an average revenue improvement of
6.31% year on year to $ 17,094.00 millions. In quarter 1 company has revenue of 16, 503
millions and in quarter 2 company has an revenue of 17,438.00 millions. In quarter 3 revenue of
16462.00 is generated and in quarter 4 revenue of 17,094.00 is obtained. P&G revenue increase
of 6.31% all over the position in fourth quarter(Dai and Qiao, 2015).
PART 2
Marketing objectives and goals to increase brand awareness, sales and market share.
Proctor and Gamble (P&G) Company is based in America and is a multinational
consumer goods company. It's headquarter is in down-town Cincinnati(Filatotchev and Bruton,
2017). Company is mainly focus on the Ariel detergent and set marketing objective to increase
the sales and profit making of the Ariel and increase the market reachability of the products in
the business market. The company targets the audience to increase the sales it mainly targeting
the adults, often all level of age group.
Objective and goals
To increase the brand awareness of company in next 6 months.
To enhance profitability of Ariel by 30% in upcoming 2 years
To increase the market share of company by 15% till the end of year 2020.
STP
STP (Segmentation, targeting and positioning) is a process in which important studies to
understand research methodology of the market where STP tell about the market, and make
market segment. In this stage it evaluate market segment and construct the profile which is
required(Filatotchev and Bruton, 2017).
Segmentation
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Segmentation as it define the market and than divide the marker on basis of some critical
features, market characteristic etc. In this market is divided into few similar groups that
ultimately match the resource and purpose of company.
Demographic Size of family( Large, Medium, Small)
Benefits Service, quality, income
Marketing type Niche marketing
Geography Semi urban, Semi rural and Urban
User status Political, regular and non users
Targeting of Ariel Detergent
Here the Ariel detergent decide which market segment that can served best for company. For
Ariel premium product hard to enter in semi-rural because it already capture by competitors. As
it has many factors that considered the time for choosing target market(Song and Amelin, 2016).
In Arial detergent target market where it target the idea.
Target Audience
ï‚· Washing machine users
ï‚· Newly married couples
ï‚· General consumer
ï‚· Housewife and working women
ï‚· Colour sensitiveness of cloths
From this the people who want quality they also willing to pay high for product that are mainly
target audience of Ariel detergent.
Positioning Strategy of P&G-
An international brand which specialises in products of personal hygiene, personal
consumer health and personal care(Samiee and Chirapanda, 2019). This company focuses on the
needs and are at the top most importance for the customers and not on how different there
products are from the other consumers. P&G does not pay attention to the most popular brand
but they focus on getting in variety in a single product like Shampoo (head and shoulder,
pantene, etc) or be it Hand Soap (Old spice, Zest, etc).
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The company focuses on all the products to satisfy the needs of the customer and for all
genders. There has been a growth in the economic rate by 2.7% of the company in the fiscal year
2018. The company changes its products with the changes in the modern world. For example,
P&G made disposible diapers for babies which J&J had already started but they promoted it to
that extend that P&G became even more popular(Samiee and Chirapanda, 2019).
7Ps of marketing mix of Ariel (P&G)
Marketing mix is an combination of various factors that can control or use by an Ariel
(P&G company to influence the customer to buy its Ariel detergent products at large in quantity.
Products
As Ariel detergent is most accepted by the female customer and have biggest brand
detergent in the global world. Ariel (P&G) company work hard to position itself because of its
product, which is used by the lady buyers because of its exquisite cleanliness. By develop
different product design, features and name to stand out in the competitive market. P&G
considered several factors to develop the Ariel products strategy such as variety, quality,
features, brand , packaging and augmented services. The company want to increase sale of it
Ariel detergent products in the market by using this marketing strategy to achieve the objective
of the P&G organisation.
Pricing
This pricing marketing strategy can require the evaluation of an value of the products for
an target customer. Where this strategy of the Ariel detergent are mainly focus on the setting of
credit term, list price, payment period and discounts on Ariel products. Where if Ariel decide to
choose the penetration price strategy, than it have to set the lowest rate than the competitors. The
P&G company able to win market share on basis of discount pricing(Pelham, 2015). Also
management need to be aware of potential retaliations of their competitors in form of undesired
rate war. Today buyers are not that much interest to know the 'price' but total cost involved in it,
disposing and consuming of Ariel product.
Place
Place marketing strategy requires Ariel to make some essential decision when it develop
its distribution plan. Before that it can decide certain thinks such as.
P&G company first considered the product characteristics. Where it involve various middleman
to distribute perishable Arial products and accordingly find-out the dynamic market, preference
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of the consumer and own capability and resource. If the buyers place high essential to
personalise services in prefer shopping than traditional stores rather than the online shopping and
company also large resources to open its outlets(Pelham, 2015). Where as P&G company also
study the competitor distribution method need to be studied. And analyse the comprehensive
cost-benefit of each of the network and comparison with own capability and resource that can
help the Ariel to develop of an effective distribution of plan.
Promotion
It is also one of the essential Ariel marketing strategy. Ariel can blend below and above
line promotional strategies achieve its marketing objective. For the promotion activities for Ariel
are print-advertisement, television and radio. Where as below line promotion are trade show,
catalogues & direct mail campaigns. Before going for promotional plan, this strategy require
company to considered following factors. Understand. why the buyer need this and why it is
unique from alternative products. Also collect the target market information like who can
purchase Ariel product (Gender, income, age and social status) and try to analyse price
selectivity level and buyer desire communication channel and incorporate all information into
promotional plan(Grant, 2016).
Where direct selling or to make huge profile advertising can suit if the firm wants to push the
products. This pull strategy help in development of prestige brand image that attract the buyer
towards the Ariel product. Also crafts the message content find which way it help the customer
in making clear image for the offered Ariel product. Before that the company considered interest,
awareness, action, desire of the buyer before developing an message.
Filter out the promotional activities based on the cost benefit analyses. Such as TV
Advertisement promotional strategy can target the mass market and increase brand awareness
among the people. But it is an expensive promotional strategy(Grant, 2016). On other side social
media raised important role from last few decades. This strategy help the Ariel to reach at the
mass market economically and also offer opportunity actively to interact with buyers. So social
media is best way for promotion as it require low cost rate at high promotion of Ariel
product(Kimiagari and et.al., 2015).
People
This strategy also play an essential for the Ariel detergent. Where the P&G company
provide intensive training to the employees so that they can make the quality product without
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wasting the raw material while making the products and they can give proper attention towards
the packaging and also it can save the time.
Process
The company is using advance technology for manufacturing the products, advanced
machines are used. So that large amount of output can be generated with less input of raw
material.
Physical evidence
This physical strategy can attract the customer as it make the attracting packaging that
helps the buyers to by the product. And it satisfy the customer desire(Dai and Qiao, 2015).
Suggestion to improve the sales of P&G
As the P&G company want to increase the sale of its Arial detergent product in the
market and want to make aware about the products by keeping in mind the objective of
company. The company should use various marketing tactics which can help the organisation to
become success. If the company use the skimming method to sale its products than also it can
help the company to raise the sale of the products. As people are not mainly focus on the price of
the product, instead of this, they are focus on the quality of the products and if the products are
of high cost. Than also people are willing to pay for the high cost to get the quality products. But
it can be mainly useful in the urban area, where the people can afford high price for the product.
In rural area this strategy may not work as people can't afford such high price for the products
and ultimately they can select other option or product(Briscoe, King and Leitzinger, 2018).
On other hand if P&G company use the penetration strategy, where it lower the price of
the product as compare to the competitors in the market. It may increase the sales of the Ariel
products because of getting the quality products at cheaper cost. As it increase the sale on the
other hand it can be easily afford by all people including the rural people. By getting good
quality product at lower cost people mostly buy Ariel product instead of moving to other product
and hence consumer will retain at same product for an longer time. Which is beneficial for the
company generate profit at high cost as well as increase the sale of product in the competitive
market.
Regarding the promotion of the Ariel product in the market. P&G Company can use
various promotion strategies(Briscoe, King and Leitzinger, 2018). To promote the product in the
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market company should use offer and social media tactics to promote the products in the market.
As It is cheaper way to promote the product by giving the offer it will attract the customer
towards the product and more customers can be attracted when company provides different type
of offers. Company can expand the market through social media platform such as Facebook, you
tube, Instagram etc. and it is an cheaper way to attract more customer, instead of going for
advertisement through pamphlets, newspaper and magazines as it is an costly one(MKT 306
Marketing Strategy Assessment Question, 2019).
CONCLUSION
From the above study it can be concluded that marketing strategies are essential for a
business as by effective marketing strategy sales of the company can be increased to an great
extent. It is concluded that internal by SWOT analysis the strength and weakness of company are
addressed as company will adopt new measure so that weaknesses can be addressed, thus helps
in increasing efficiency of Ariel (P&G). And by PESTLE analysis all the political, legal,
technological factors are carried out which assist is making decision that how the negative
impact can be controlled. New effective decision can be made by SWOT and PESTLE analysis.
The study also concluded the (USP) for Ariel, which defines the uniqueness of products, as why
the product is so unique and why it is largely purchased by consumers. The uniqueness of Ariel
is that it is high quality products as people who prefers quality products will purchase that
product, another uniqueness of the Ariel is that it is cost effective as high quality goods is
available at reasonable prices.
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REFERENCES
Books and Journals:
Boscagli, M., 2019. Competitive strategy analysis in the food system. CRC Press.
Briscoe, F., King, B.G. and Leitzinger, J. eds., 2018. Social Movements, Stakeholders and Non-
Market Strategy. Emerald Publishing Limited.
Dai, T. and Qiao, W., 2015. Optimal bidding strategy of a strategic wind power producer in the
short-term market. IEEE Transactions on Sustainable Energy.6(3). pp.707-719.
Filatotchev, I., Su, Z. and Bruton, G.D., 2017. Market orientation, growth strategy, and firm
performance: the moderating effects of external connections. Management and
Organization Review.13(3). pp.575-601.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Kimiagari, S. and et.al., 2015. Market Strategy of International New Ventures Originating from a
Small and Open Economy. Handbook of Research on International Entrepreneurship
Strategy: Improving SME Performance Globally. pp.85-103.
Patnaik, S., 2015. Essays on international non-market strategy and the political economy of
environmental regulation. Business & Society.54(4). pp.559-571.
Pelham, A.M., 2015. Strategy, Market Orientation, or Environment: Relative Influence on Small
Manufacturing Firms. In Proceedings of the 1998 Academy of Marketing Science (AMS)
Annual Conference (pp. 458-458). Springer, Cham.
Piercy, N.F., 2016. Market-led strategic change: Transforming the process of going to market.
Routledge.
Russell, J.D., 2018. Market transformation for value-retention processes as a strategy for circular
economy.
Samiee, S. and Chirapanda, S., 2019. International Marketing Strategy in Emerging-Market
Exporting Firms. Journal of International Marketing.27(1). pp.20-37.
Song, M. and Amelin, M., 2016. Purchase bidding strategy for a retailer with flexible demands
in day-ahead electricity market. IEEE Transactions on Power Systems.32(3). pp.1839-
1850.
Widuri, R. and Sutanto, J.E., 2019. January. Differentiation Strategy and Market Competition as
Determinants of Earnings Management. In International Conference on Tourism,
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Economics, Accounting, Management, and Social Science (TEAMS 2018). Atlantis
Press.
Online
MKT 306 Marketing Strategy Assessment Question. 2019. [Online] Available Through
<https://www.mbaskool.com/brandguide/automobiles/4898-ariel-motor-company.html>
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