Ariel Detergent's Marketing Strategies: A Comprehensive Report

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Marketing Strategy
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Executive Summary
Marketing strategies are very essential for strengthening of brands and increasing
performance of the firm. Various firms have various marketing strategies for achieving
suitable performance. This practise has been used by most of the entities from significant
amount of time. Ariel from its initial stage used marketing strategy and various drivers to
enhance their performance. Ariel is detergent company that has been using strategies to
achieve long term impact and they are successful in achieving it.
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Contents
Executive Summary.................................................................................................................2
Introduction..............................................................................................................................4
Part 1.........................................................................................................................................5
Part 2.........................................................................................................................................8
Conclusion...............................................................................................................................12
References...............................................................................................................................13
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Introduction
Goals and targets of the firm can be achieved by making and implementing efficient
marketing strategies. These strategies help in making the vision for the performance and set
an objective for the particular company. Drivers are components that are used for making
performance effective and to increase outcomes of the firm. For a better understanding case
study of Ariel is selected. Ariel is detergent powder in the U.K. having a supply of products
on an international level in many countries and is having its own website. It was established
in 1967 and is first detergent powder with stain removing moving. In 1980s company
introduced its washing machines. The main motive of Ariel is to provide the best detergent
powder to its customers in a suitable market. Marketing audit of Airtel is highlighted in the
report and SWOT analysis is also analysed to determine internal and external strengths of the
company. The competitive advantage of Ariel is elaborated in the report.
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Part 1
Situation Analysis
Determining the internal and external strengths of the organization are necessary
requirements as they help in determining the vision for performing tasks for the company and
makes the firm decide goals and targets for better outputs. Influence of internal and external
factors directly impacts the overall performance of the company. Hence firms should analyse
these factors very effectively to yield appropriate outcomes. Ariel is an old and successful
organization in the market. For attaining long term positive results this analysis is very
necessary. SWOT and PESTEL analysis are methods for analysing internal and external
factors of the company and there influence on the company (Ashley and Tuten, 2015). A
SWOT analysis determines internal factors and PESTEL analysis determines external factors.
SWOT analysis for Ariel:
Strengths:
 Brand Quality – Quality of Ariel is
a major strength of the company.
They remove the toughest stains and
removes dirt or marks better than
other organizations. This helped for
Ariel in getting top position for the
firm.
 Customers Base – Customers in
Ariel prefers their products only due
to the trustworthiness and products
quality. Hence, customers prefer
Ariel rather than another brand.
Weakness:
 Competition – Competition is very
significant for Ariel in the market.
Its main rival (Unilever) has
introduced surf excel and it is
achieving significant share market in
various markets and countries.
 Cost-Sensitive Market – Cheaper
products are used by most of the
people. Due to the quality of Ariel,
its prices are quite high and thus it
acts as a weakness for Ariel.
Opportunities:
 Penetrative Variants – Ariel if
supply low-cost products without
compromising on quality than it
could result in the increase of market
share.
Threats:
 Cost Threat – Many detergents are
there which are increasing their
quality and ability and with suitable
price. Mr Muscle, Vanish etc are
such products. They are a major
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 New Markets –Due to available
resources and image, Ariel can
significantly expand their business
in new markets (Atwal and
Williams, 2017).
threat to the company.
 Price sensitive markets – There are
many price-sensitive markets and
Ariel should focus on them.
PESTEL Analysis for determining external environment:
Political:
 Political stability in the U.K. has
proved in favour of Airtel and the
company does not have to change
its functioning regularly due to the
stability of politics in the U.K.
 Low minimum wage resulted in a
significant profit for Ariel in the
market.
Economic Factor:
 Growth in GDP of the country has
been recorded from the past few
years which make possible for Ariel
to make further growth (Cairns, et.
al., 2013).
 The employment rate is also
appropriate in the U.K. which
impacted on efficient performance
and outcomes for Ariel.
Social Factors:
 Rates of Ariel is affordable for
people in the U.K. Thus, sale and
demand of detergent of Ariel are
appropriate in the market of U.K.
 Ariel manufactures its products
which are not harmful to customers
which resulted in positive social
image of Ariel (Cairns, et. al., 2013).
Technological Factors:
 Manufacturing of Ariel detergent
powder and washing machine is by
the latest technology and this makes
their functioning more effective and
less time-consuming.
 The technology used id Ariel does
not impacts its financial condition on
a large extent. The technology they
use is less in price and more
productive for the company.
Environmental Factors:
 The environment in the U.K.
changes frequently which impacts
the transportation of Ariel products.
Legal Factors:
 Intellectual protective laws and data
protection laws if not followed by a
firm, then it would lose its
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 Ariel operates under environmental
laws of the country and
manufactures minimum waste.
competitive advantage infirm.
 Health and safety laws are followed
by Ariel which makes their
employees satisfied and makes firm
legal (Dzisi and Ofosu, 2014).
Competitive Advantage of Ariel (USP):
Unique selling propositions (USP) is the practice in which the firm uses various techniques
for increasing their sales and productivity in the market. Every firm has its own strategy for
this purpose which makes them unique in the market. Ariel has been using this practice from
a long period of time to achieve efficient results from the company. USP for Ariel is they are
serving their customers from very old time and is present in the market from very old time.
One more unique feature they are having is, they are one of the best detergents in terms of
removing stains from clothes. Other products that are offered by Ariel are also its USP. For
instance, they manufacture washing machines also and detergents also have various varieties
(Haider, et. al., 2019). Customers are more influenced towards an organization that provides
more than one service to them as trust among the brand is maintained.
Evaluation of Current Market Strategy for Ariel:
Growth – Ariel is successful to operate in various markets for a long time. Their services and
products are always effective in the market. One of the best features they are having is, they
have the ability to eliminate their competitors from the market. Ariel also introduced products
of medium prices for their market-sensitive areas. This impacted positively for Ariel and they
became able to penetrate into sensitive markets. Ariel is operating in various countries and
due to the quality of detergents, they are successful in most of the markets they are operating.
Hence performance in every department for the country proved beneficial for the company. It
can be concluded that Ariel is regularly growing the organization and is successful in
achieving long term profits and success in the market.
Profitability – In terms of profitability Ariel has performed well. They introduced products of
high quality in the market of an appropriate price. Thus, customers of Ariel are influenced by
this quality for a long period of time. Quality is the main reason behind long term success and
profitability for Ariel. They are successful in grabbing the top position in terms of profit and
outcomes for the company. The profit rate of the company is significant and the company is
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also grabbing sufficient outcomes for the company due to the quality they are serving to their
customers.
Sales – In the detergent industry market share has huge competition for detergents. Detergent
companies are introducing detergents in markets at a very low price. This increased
competition as insensitive market areas people prefers products that are low in price. This is a
major threat for detergent companies including Ariel. Ariel has to sell its products on a
significant price because of the quality they provide. Hence for Ariel increasing sales in the
market is very challenging. To overcome this challenge Ariel offered some offers on a
particular price for their customers and also introduced a few products that are of the suitable
prize (Han, 2014). While lowering down prices Ariel should not compromise with their
quality because the quality they are offering is their major strength.
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Part 2
Segmentation Targeting and positioning (STP)
Ariel is an organization that manufactures a number of products and detergent are their major
product that is most productive and successful for the company. STP is the practice that has
been selected by the firm in order to perform segmentation of population according to choice,
targeting of particular market or customers and positioning of products in that particular
market. The main advantage of this strategy covers various needs of the market (Kritzinger
and Weideman, 2013).
Segmentation – Ariel sells its products in areas or places where the population is divided
according to different class related to the financial condition, and choice of people. Thus
Ariel should introduce brands such that demands of each of the segments can be fulfilled. For
example, there are some markets that are sensitive markets and people of these markets do
not purchase products that are of high price because they cannot afford that price. To
overcome this situation best choice Ariel having is to lower down prices of their products.
Prices should be such that they are affordable for medium class people and the quality of
these products should be such that they can be used for daily purposes of the company. Next
segmentation of people are those customers that are demanding high-quality products having
any price of products (Lobley, et. al., 2013). For fulfilling demands of these kinds of people,
Ariel should manufacture high-quality products without considering rates of the products.
Quality must be such that stains and dirt could be removed effectively. The environment
should also be taken into account while performing and achieving these tasks. Manufacturing
and sale of these products should be such that the environment is not impacted by it.
Targeting – Targeting is an essential practice to be performed and targeting these segments is
necessary. For targeting different segments different procedures should be adopted. Families
and earning people can purchase products effectively and targeting them is an easy task to be
performed. They are considered as most essential targeting segments as they are technically
advanced and can afford products. The best way through which these target customers could
be attracted is by promotion through television, radio, internet etc and by communicating
with these people efficiently. Health-conscious people and many females regularly using
products are another class of people that can be targeted. To attract and target these customers
Ariel should promote their health-related features of the product. It should be mentioned in
health-related magazines, programs etc. For targeting environment favourable people, the
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company should promote and work to reduce the amount of waste and to reuse products that
are possible.
Positioning – This step is very important and to make the process successful it is necessary
that positioning of the product should be done inappropriate manner. Strategy and stepwise
procedures should be adopted by Ariel for properly positioning product. The positioning of
products should be reachable for every segment of customers. Quality of products should be
enhanced while positioning. Environment procedures should be adopted and implementation
should be such that the environment is not harmed. Strategy decided by the company for
positioning should be such that all the requirements of customers related to quality and price
could be fulfilled (Pappas, 2016).
Recommended objectives and goals:
To determine goals and objectives for Ariel SMART technique has been used which is a
specific and most effective method for determining goals for the organizations. Specific,
measurable, attainable, realistic, and timely are the components of SMART which are used
for determining goals (Tiago and Veríssimo, 2014). Ariel must focus on an increase in their
sale for attaining suitable outcomes for the company. Increase in sales of 30% should be their
target on an annual basis and it should be done by dividing target as 15% for the first six
months and 15% for the next few months. In this way, the target should be divided. Once
decided target next step is to manufacture products such that improvement could be attained.
Ariel should manufacture products such that damage during shipping and manufacturing
could be decreased up to 20%. This step should be taken in order to increase manufacturing
quality and shipping. Target on a quarterly basis should be set by Ariel. Growth of 15%
should be a target for the company. For achieving these targets time should be managed and
decided to achieve these goals. Ariel should make these changes in 1. This indicates that
impact of changes and strategies applied by Ariel should be analyzed and calculated after 1
year.
Marketing Strategy by using the marketing mix:
External and internal factors of Ariel have been analyzed in the market of the U.K. For
introducing new products or to expand products in existing markets it is necessary that
marketing strategy should be prepared for that. It helps in deciding objectives for the
company and also helps in making a vision for performing to achieve goals. Marketing
strategy of Ariel should be effective and able to take competitive advantage for the company.
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Quality and prices of detergents manufactured by Ariel must be different and more suitable
for their customers. It would help in differentiating company in the market with respect to the
quality of products and their services (Park, et. al., 2014). This could be achieved by
promoting changes implemented by Ariel related to its products and services. Slogan or any
particular strategy should be decided for this particular purpose. This would help in achieving
a particular identity for the product. Packets of the product should be changed and innovative
practises must be adopted on them. The marketing mix is a strategy that could be used for
fulfilling the demand for a maximum number of consumers possible. This strategy is very
effective in accomplishing demand of customers and for making a strong brand image. 7Ps
are there in the marketing mix which are used by the companies in order to attain outcomes.
Product, price, place and promotion are the practises involved in 4Ps and are responsible for
making an appropriate marketing strategy.
Product – Ariel should manufacture high-quality products. Quality should be better and
different than other detergents. Environmental factors have to be taken into account and the
manufacturing of products should be such that the environment is not affected. The health of
people should also be taken into account and toxic-free products should be prepared. These
features of Ariel would help the brand in making a strong brand image and customers are also
influenced by it.
Price – Price of detergents should be decided after analyzing various departments of the
company. The price must be such that middle-class people can also afford the product and
quality should be maintained accordingly. Detergents manufactured should be according to
there use, such as those detergents that are used on a daily basis should be of low price and
detergents that are used on a frequent basis must be of a higher price.
Place – The price of Ariel products are higher thus, they should be sold in supermarkets,
malls, big markets etc. Supply in rural areas should also be accomplished and price in these
rural places must be affordable (Lobley, et. al., 2013).
Promotion – Promotion is an essential practice of the marketing mix as makes customers
aware of products and services offered by any company. Ariel should promote their products
in modern and attractive ways to attract the maximum number of people. Various ways are
there to perform this. Advertisements should be given in T.V. and radios and the internet
should also be used. The social media platform is being used by most of the people, thus this
platform should be used by Ariel (Kritzinger and Weideman, 2013).
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People – Employees and staff members working in an organization have to be very effective
and efficient. They are major factors that decide operations performed in the company and
outputs achieved. Training should be given to the employees and skills and knowledge should
be present in them to achieve any particular task. Training and development of employees are
necessary because it leads to achieving targets for the firm.
Physical Evidence – Physical evidence are those pieces of evidence or products that are
offered by the company. Main physical evidence that company are having is detergents and
washing machines. Thus, the company should focus on this physical evidence and makes
them stronger and effective. Physical evidence should be improved by the company to
improve outputs.
Partners – Partners or collaboration is the practice in company merges or makes a
partnership with other organizations. The benefit of having a partnership is tasked could be
achieved more effectively. Collaboration should be done between organizations performing
the same functions so that tasks could be achieved effectively. Ariel is performing operations
on their own, thus they are not collaborated with any other firm or brand to achieve their
tasks (Han, 2014).
Recommended marketing strategy:
Impact of marketing strategies differs according to the implementation of that strategy and
functions performed in it. Ariel if implies its strategies in an effective manner then it becomes
possible that effective marketing strategies could be accomplished. Proper implementation is
required because it impacts overall operations performed in the company and also on
strategy. International trade in the U.K. has impacted positively for most of the firms in the
U.K. Main impact they have made for organizations is to grab the opportunity to expand the
market on an international level. International trade is the practice in which import and export
of goods became suitable for companies. Due to this reason, most of the firm is entering new
markets as an opportunity to expand has increased effectively. Many organizations are thus
expanding their businesses on an international level. Ariel also has a chance to expand on an
international level and to introduce services and products such that a number of customers
should be increased. Ariel should take advantage of international trade price and must enter
in new markets on the international level (Dzisi and Ofosu, 2014). Markets or products where
Ariel already exists should also be focused and at these places image of the brand should be
enhanced, while for entering in new markets Ariel should manage accordingly and
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