Persil Detergent Brand Analysis

The assignment involves a comprehensive analysis of Persil, a famous detergent brand, using environmental and internal analysis. It explores how different country deals with political stability, social structure, demographic changes, and income levels impact sales. The report also discusses effective techniques to improve product quality and the marketing mix model to raise sales and profit margins.

University of Sunderland London -Faculty of Business and Law
SIM 306 Marketing Strategies
Submitted
By
Student Name: Awake Ababa
Student ID: 179171349
Submission date: 19 March 2019
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Executive Summary
The report will be discussed the marketing planning of Persil which is a well-known detergent
brand of UK. The presentation of the marketing audit will be discussed in this report. To do
external business audit the PESTEL analysis will be used and for the external analysis SWOT
analysis will be done. This report will demonstrate the current position of Persil within the
competitive business market. Also, the competitive edges and competitive performance will be
also analyzed in this report. At the second part of the report, a new marketing strategy for Persil
will be created by doing market segmentation, positioning. After that, the unique selling point of
Persil will be also analyzed. Overall this report will give suggestion to Persil about how to use
the marketing mix for strategic management.
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Table of Contents
Executive Summary...................................................................................................................2
1.0 Introduction..........................................................................................................................4
1.1 Company Overview.............................................................................................................4
1.3 Situational analysis..............................................................................................................5
1.3.1 PESTLE Analysis.........................................................................................................5
1.3.2 SWOT Analysis............................................................................................................7
1.4 Position in market................................................................................................................8
Market share...........................................................................................................................8
1.5 Competitive Edge (USP) of PERSIL...................................................................................9
1.6 Competitive performance of PERSIL................................................................................10
1.6.1 Sales Growth...............................................................................................................10
1.6.2 Net Income Growth.....................................................................................................10
1.6.3 Gross profit.................................................................................................................10
1.6.4 Net profit of and its competitors.................................................................................11
2.1 Segmentation, Targeting & Positioning............................................................................13
2.1.1 Segmentation...............................................................................................................13
2.1.2 Targeting for PERSIL brand.......................................................................................13
2.1.3 Positioning for PERSIL brand....................................................................................14
2.1.4 STP Analysis for PERSIL brand....................................................................................15
2.2 Marketing objectives for PERSIL brand...........................................................................16
2.3. Recommended marketing strategies.................................................................................16
Conclusion...............................................................................................................................19
References................................................................................................................................20
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1.0 Introduction
The purpose of the report is to prepare both marketing audit and plan for Persil which is a
famous detergent brand of UK. The report will be conducted in two parts. At the first part of the
report, there will be a discussion of the marketing audit of Persil. At the first part of the report,
the audit will be done by analyzing the external environment with the help of PESTEL analysis
tool. Also, the SWOT analysis tool will be used for analyzing the external environment of the
business. At this section of the report, the overall explanation of the current position of Persil in
the market will be also discussed. At the second part of the report, the effectiveness and
competitive performance of Persil will be discussed. A new marketing plan will be prepared in
this section by doing market segmentation, market positioning and making marketing objectives.
1.1 Company Overview
Persil is one of the well-known detergent brands all around the world. The company has been
established in the year 1907. The company is successfully doing business in the UK and other
countries. The main product of the company is Self-activating laundry detergent. The company
is a large company which are operating business in Albania, Austria, Canada, China, Cyprus,
Egypt, France, Germany, Greece, Ireland, Italy, Lebanon, Mexico, Netherlands, New Zealand,
Poland, Portugal, Romania, Saudi Arabia, Serbia, Spain, Syria, Taiwan, Turkey, United
Kingdom, United States and, Russia. The brand is well known to the customers. And this
company has a large number of loyal customers. The company is working hard to give the best
good quality profits to its customers. The company is hiring eligible workers who will work hard
to attain the goals and objectives of the company. The company is a brand of laundry detergent
manufactured and the products are marketed by Henkel over the world except for UK, Ireland,
Latin Amera, China, New Zeland, and many countries. The company is manufactured and
marketed by Unilever (Persil, 2018).
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1.3 Situational analysis
1.3.1 PESTLE Analysis
PESTEL analysis is used by many businesses to understand the external business environment.
Factors of PESTEL analysis are political, economic, social, technological, legal and
environmental. An diagram image of PESTEL analysis has been given below-
Diagram: PESTLE Analysis Tool Source: (Blythe, 2015).
The PESTEL analysis tool is very effective for the business to make an analysis of the
external factors that are making an impact on the operation of the business.
PEST Analysis of ARIEL
Political factors: Persil is operating its business in the different area of the country and while
doing business in a different country the company has to face different political situations.
Different country deals with different political stability which creates an impact on the business
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operation of Persil. Persil can huge political stability of a country to broaden the business
strategies of the business (Blythe, 2015).
Economical factors: While doing business Persil has to face different factors of the
environment in the local area and the international market. Economic factors like a tax, VAT
makes an impact on the business operations. The current European Union of the UK is making a
huge impact on the business of Persil in the UK market. Therefore the company can take the
opportunity from the good economic situation of the country.
Social factors: Being a detergent company the main target customer is the household people
who regularly use household products. The recent changes in the social structure and
demographic structure of the country and the change of income and expenditure level of the
people make an effect on the sales of the business. Persil is giving focus on the lifestyle of the
customers and making business strategies accordingly. Customers are now very much conscious
about the health and customers prefers to live a healthy life which Persil can adapt to create more
profitable business strategies (Berthon, 2012).
Technological factors: Advanced technologies are being used by many companies to make a
new product and for doing more effective research and development. Persil also uses effective
techniques to improve the quality of their products. Persil invests a huge amount of product to do
effective research and development by using updated technology. The advancement of
technology makes an impact on business performance. Using advanced technology helps the
business to save time and costing.
Legal factors: Persil operates a business in different countries so the company has to face a
different kind of legal factors. The different country follows different legal structure and
framework which creates an impact on the business. Not following the legal factors will create
an impact on the business of the company that is why Persil always ensures that they are
following all the legal factors of the country (Berthon, 2012)..
Environmental factors: The environmental factors are incredible for the business. There are
different environmental factors which create an impact on the activities of the business of Persil.
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The common environmental factors are flood, storm, earthquake, rain etc. All these factors make
the business to face the business operation problem (Blythe, 2015).
1.3.2 SWOT Analysis
The SWOT analysis is an effective tool which organizations use to analyze the internal
environment of the business. The company mainly uses a SWOT analysis tool to know about the
strengths, weakness, opportunities, and threats of the business.
Strengths
 Persil is a well-known brand and has a high brand image
 The company maintains an emotional connection with the customers
 The company has an attractive product line
 Hold a strong brand image in front of foreign customers
 The company has high brand visibility and good distribution process
Weaknesses
 The company has an association with two huge company- Henkel and Unilever which are
giving tough competition to the in both the local and international market.
 The company gives more focus on local business than international business.
 The recent loss in local share is making a huge impact on the business operation
 The company gives more focus on technology that customers needs
Opportunities
 The customer's interest over the eco-friendly product is a huge opportunity for the
business
 The new product line of the company is helping the business to grow the sales of the
business
 The niche market is a huge opportunity area for the business
 The company has to do improvement in their business production with proper technology
(Bennett, 2015).
Threats
 Slow growth of the economy
 The price wars of the different countries business
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 Rising of the cost of fuel price
 High level of competition in the international market
1.4 Position in market
Market share
According to the research it has been found that Persil got 15.50 total market share compare to
Unilever which got 5% share. The company L’Orieal has earned 3% total market share and
Kimberly Clark got 5% share. On the other hand John $ Johnson has captured 3.2% share in the
detergent market and other 60% share has been captured has been gained by other competitors in
the market. At below a diagram has been prepared-
15.50%
5.00%
3.00%
5.00%
3.20%
60.00%
Market Share
Persil
Unilever
L'Orieal
Kimberly Clark
Johnson & Johson
Others
Graph: Market share of and its competitors Source: (Slater, 2015).
According to the data above, we can see that Persil got the highest market share in the market
which means the company is maintaining a good position in the market by servicing proper
target customers.
Products ranges and prices in competitive market places
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Persil is a well-known brand in the UK and the main products of the company are homecare
products like detergent, air care, fabric enhancer, dish care etc. According to the data, the fabric
and home care segment of the company has gained £18 billion in 2015 which was a remarkable
sale for the company. In a recent market, the home care product of Persil is maintaining a good
position in the market. At below the key detergent products range of the company has been
given-
Graph: products ranges of and its competitors Source: Persil.co.uk. (2016)
1.5 Competitive Edge (USP) of PERSIL
Persil has a unique selling point in order to ensure a sustainable competitive advantage in a
competitive environment. The company is working hard to maximize the share in different
countries for raising the product margin of the business. One of the other reasons the company
has to expand business in different countries is to beat the key competitors. Persil is already
famous in many countries for its qualified products which are helping the company to gather a
high share of the market to raise the profit margin (Nath, 2015).
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The competitors of Persil are also ruling the business in different countries. Tide and Serf
excel is very much famous in Asia country. Persil is doing neck to neck business with their
competitors. The key unique selling points of the company are mainly the quality and integrity of
the product, competitive price and acquisition, and different innovative and creative products.
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1.6 Competitive performance of PERSIL
1.6.1 Sales Growth
According to the data, the competition in the market is growing day by day. In the year 2013, the
sales growth of Persil was 9% which has been growing 12% in the year 2015 and grown up to
20% in the year 2016. The brand Kimberly Clark gained 6% sales growth in the year 2013 and it
was 9% in 2015 and 5% in the year 2016. And lastly, Johnson and Johnson have gained 4%
share in the year 2013 which has been grown to 14% in the year 2015 and 5% in 2016.
Competitors Sales Growth
2013 2015 2016
ARIEL 9% 12% 20%
Kimberley Clark 6% 9% 5%
Johnson and Johnson 4% 14% 5%
According to the data above, we can see that the overall sales growth of Persil is higher than
other brands which are the main competitors of the company. That means the current business
strategies of Persil is very much effective and it is growing up slowly.
1.6.2 Net Income Growth
From the data the income growth of Persil was satisfactory in the year the growth was 15%
where the growth of Kimberley Clarks was -7% and Johnson and Johnson was 20%. In the year
the income growth has been rise to 20% and Johnson growth was 21% and Kimberley was 5%.
In the year it has been grown to 20%.
1.6.3 Gross profit
According to the data in the year the gross profit of Persil was 50% which has been increased
about 53% in the year 2014 but suddenly fell off by 1% to 52% in the year 2016. The gross profit
of Kimberly Clark was 25% in the year 2013 which has been raised to 28% in the year 2014 and
30% in the year 2015. And the gross profit of Johnson and Johnson was 70% in the year 2013
and it has been decreased to 69% in the year 2014 and again raised to 71% in the year 2016.
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2013 2014 2015
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
50% 53% 52%
25% 28% 30%
70% 69% 71%
Persil
Kemberly Clark
Johnson and Johnson
Gross Profit of Persiland its competitors
Chart: Gross profit of and its competitors Source: (Lamberti, 2015)
From the chart above we can see that the overall profit of Persil has been raised but
compared to Johnson and Johnson, this company has gained lots of gross profit. The brand
Kimberly Clark is having loser gross profit than Persil. So the overall business performance of
Persil is very much good then its competitors.
1.6.4 Net profit of and its competitors
From the data it has been found that the net profit of Persil was 12% in the year 2013 and in
the year 2016 it was increased by 1% and it has been raised 14% in the year 2016. And the net
profit of Kimberly Clark was 6% in the year 203 and it has been raised 8% in the year 2014 and
11% in the year 2o015. And lastly Johnson and Johnson net profit was raised to 15% in the year
2013 and that has been decreased to 8% in the year 2014 and then again increased to 20% in the
year 2016.
2013 2014 2015
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
12% 13% 14%
6% 8%
11%
15%
8%
20%
Persil
Kemberly Clark
Johnson and Johnson
Net Profit of Persil and its competitors
Chart: Net profit of and its competitors; Source: (Hoffman, 2015)
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The data above is showing that the net overall profit of Persil is increasing than its
competitors but Johnson and Johnson are maintain growing net profit. Kimberly Clark is gaining
lower net profit than Persil. So the overall business performance of Persil is good.
2.1 Segmentation, Targeting & Positioning
2.1.1 Segmentation
The term market segmentation refers to the process of diving heterogeneous market into a
homogenous market for collecting target customers. At following the example of segmentation is
given in a image-
Diagram: An example of market segmentation Source: henkel.com. (2016)
There are about 65 million people in the UK and for a detergent industry like Persil, this is a
big market. The company has to give focus on the specific people who will use the product and
service of the company. According to the need and demand of segment people the company has
to create products. The company has to find out its target market focusing on a number of the
group with the help of customers characteristics for example who shop in the supermarket, street
shop, shopping mall etc.
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2.1.2 Targeting for PERSIL brand
The term targeting refers to the choice of the business regarding the market segment in order to
attract the target customers. The targeting has been categorized in three which are differentiated,
undifferentiated and multi-differentiated. The company is giving focus on the differentiated to
attract the target customers of the company. The targeting strategies has been given below-
Diagram: Differentiated strategies for ARIEL detergent brand Source: (Fischer, 2015)
Persil can make different offers for different size of the product for example, small, large and
medium size products. The different size of a product will be convenient and attractive for the
customers.
2.1.3 Positioning for PERSIL brand
The term positioning refers to the process of defining the target point of the business a
specific period of time. The target point is the point where the business wishes to attain. When
the business will be able to attain the point then it will help the business to reach its goals and
objectives. At below, an image has been given-
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The positioning map will help the business to improve the service speed and service quality
to attract the customers. The map will also help the company to determine the price of the
product.
2.1.4 STP Analysis for PERSIL brand
Persil has a unique selling point which is helping the company to gain a competitive
advantage in the business. The company is doing a successful business in both local and
international area which is a key selling point of the company. Another unique selling point of
the company is the acquisition with another brand. In the UK market, Persil has a large number
of giant competitors (Cravens, 2016).
The company has multi-segment products for its different target customers. The current
position of Persil is now better than its competitors. The company is expanded its business in the
UK and appear as a well-known brand. The company has a high range of loyal customers. Many
of its competitors are still working hard to appear in the position of Persil.
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Persil has to work with their product pricing strategy to beat its competition in the global and
local market. The key unique selling product of the business is the quality and integrity of the
product and competitive prices and acquisition with different brands in the world (Blythe, 2015).
2.2 Marketing objectives for PERSIL brand
The overall objectives of marketing are mainly referred to the mission and vision of the
business to get the turn in business goals. At following the marketing objectives of Persil has
been given-
Marketing objectives for PERSIL brand
Prospective Objectives
Financial To raise the market share up to 5% within 2020
To make improvement of gross profit up to 8% and 5% net profit
within 2020
Customer To achieve 100% customer satisfaction and 100% customer retention
and 70% customer loyalty within the year 2020.
Internal Reducing the operation cost to 3% within 2020.
To ensure 100% satisfaction of the employees and 100% employee
retention and 70% loyalty of employee within 2020
Learn and growth To produce new products within 2020
Source: Kaplan
and Norton (2014)
Source: Researcher based on Annual Report (2015)
2.3. Recommended marketing strategies
The marketing mix (4Ps) model is shown in the following diagram: The marketing mix strategy
can be adopted by Persil for their business growth. The 4P of the marketing mix are – product,
price, place, and promotion. The 4P helps to improve the performance of the business. At below
the 4P of marketing has been given in an image-
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Diagram: Marketing mix (4Ps) model; Source: (Berthon, 2012).
The marketing mix will help Persil to make improvements to the strategies of business and
business performance.
The company should offer a product which has proper value and features. The product
offering should be done by providing focus, delivery of the product and ensuring the after-sales
service of the product. Persil has to ensure properly valued added and features of their product. It
will help the company to reach a large of customers in different countries (Berthon, 2012).
Price is the critical tool for the business to achieve the business goals to achieve the demand
of the market share. From the study, it has been found that many of the competitors are offering a
good quality product with lower price and Persil have to give focus on this factor to raise the
sales volume of the business (Berthon, 2012).
The business can attract target customers by doing effective promotion of the product by
doing different marketing campaigns. The company can use both traditional advertising strategy
or can use digital marketing strategy to advertise the product. Social media will be using a useful
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platform to attract customers via the internet. It will make easy for the company to communicate
with the customer easily over online (Bennett, 2015).
The place of the business needs to be convenient so that the customers can come easily to
find their desired product. The company can take more steps to improve the distribution of the
product in both the wholesale and retail market. This will help the business to increase the
business activities in different area and the world. And it will also help the company to gather
potential customers for the product.
Conclusion
The overall discussion of this report is about the marketing activities of a business to achieve
business success. Different factors regarding marketing activities have been discussed in this
report. The main target of this report was to find out what type of marketing activities a business
has to do to achieve business success. The discussion this report has been done according to the
business context of Persil which is a famous detergent brand of UK. The external and internal
environmental analysis of Persil has been done in this report by using PESTEL and SWOT
analysis. The finding shows different country deals with different political stability which creates
an impact on the business operation of Persil. Persil can huge political stability of a country to
broaden the business strategies of the business. While doing business Persil has to face different
factors of the environment in the local area and the international market The recent changes in
the social structure and demographic structure of the country and the change of income and
expenditure level of the people make an effect on the sales of the business. Persil also uses
effective techniques to improve the quality of their products. Persil operates a business in
different countries and follows different legal structure and framework which creates an impact
on the business. Environmental factors are incredible for the business. There are different
environmental factors which create an impact on the activities of the business of Persil. The
common environmental factors are flood, storm, earthquake, rain etc. All these factors make the
business to face the business operation problem. The discussion of the marketing mix model has
been done in this report. The discussion of the report concluded that Persil has to improve the
quality of their product in about the services the customer appropriately to raise the sales and
profit margin of the business.
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