Marketing Strategies of Ariel Detergent: A Comprehensive Analysis

Desklib provides solved assignments and past papers to help students succeed.

Marketing Strategy
Individual Report
1

Executive Summary
The report provided has discussed marketing techniques of the selected company of detergent
that is Ariel. Analysis of internal and external business environment have been analysed to assess
the influence of the factors on the functions of business. The USP or competitive advantage
factors of the company have been mentioned in the task that has leveraged its profit. Marketing
objectives have been recommended that the firm can use to focus the strategies for growth of
business. The framework of marketing mix has been presented to suggest the firm some
marketing strategies for business’ success. Evaluation has been done on the current strategies of
Ariel in marketing the goods.
2

Table of Contents
Introduction......................................................................................................................................4
Part 1................................................................................................................................................5
Situational Analysis – (PESTLE) (SWOT).................................................................................5
Competitive advantage (USP)...................................................................................................12
Evaluation of current marketing strategy..................................................................................13
Part 2..............................................................................................................................................14
Segmentation Targeting and Positioning (STP)........................................................................14
Recommended objectives and goals (SMART)........................................................................16
Recommend marketing strategies, based on the application of the marketing mix to your
chosen brand..............................................................................................................................19
Conclusion.....................................................................................................................................21
Bibliography..................................................................................................................................22
3

Introduction
Marketing strategy includes a comprehensive plan of the organisation that incorporates proper
market research, product mix, and other strategies to maximise profitability of the corporation.
This is vital for business sustaining the business that initiates with determination of objectives,
planning the activities, and application of the tactics for influencing the organisation.
Ariel is a detergent manufacturer as well as a marketer that has location in the United Kingdom.
This company has been introduced in the year 1967 (ariel.co.uk, 2019). It has markets in
European countries, Latin America, South Africa, North Africa, the Middle East, Pakistan, and
others. Procter and Gamble own this organisation. In some countries such as Singapore and
Malaysia, Ariel is known as dynamo as well.
The report presented in this task will have explanation on the marketing strategies of the chosen
organisation, Ariel. The factors of internal and external environment that can have influence over
the corporation will be discussed. Recommendations will be provided by using the SMART
objectives and marketing mix elements. Strategies of targeting, positioning, and segmentation
will be applied to the organisation.
4

Part 1
Situational Analysis – (PESTLE) (SWOT)
Elements Factors Analysis
Political Brexit has decreased the value of
the British pound that has
affected the regional business
severely (bbc.com, 2019).
Governmental instability in the
United Kingdom has affected the
operations of administrations of
the country by fluctuation in the
regulations and policies.
Due to decrease in the Sterling of
Britain, Ariel’s growth would be
affected negatively. This s because
the cost of the business would raise
that would limit its profit
accumulation.
Ariel’s business operations would
need to be changed as per
modifications in the rules of the
government of the country. This
will disrupt the functioning and
running the business as per new
policies.
Economic The unemployment rate of the
UK has risen from 3.8% from
June 2019 to 3.9% in August
2019 (tradingeconomics.com,
2019).
The growth rate of the UK’s
economy has decreased from
0.5% in May 2019 to -0.2% in
August 2019
(tradingeconomics.com, 2019).
The unemployment of the country
can affect the Ariel Company
positively, as the native people
would work even in exchange for
less salary in the firm.
Due to reduction in the economic
growth rate, the operations of the
firm will be affected negatively as
the business would not be able to
invest in business for development.
There would be chances of
reduction in sales, as people’s
power of purchasing products will
5

be reduced.
Social Biological detergents are
preferred over the non-biological
detergents by people nowadays
(repairaid.co.uk, 2018).
There are varieties of detergents
available in the market in
different forms such as
condensed, powdered, liquid, and
others that met the requirements
of various customers worldwide
(Hauthal, 2016).
Liquitabs and such products
offered by Ariel are free from
enzymes or bleaches that clean the
clothes in a gentle way
(ariel.co.uk, 2019). This will affect
the business positively as the
consumers would prefer the
products produced by the
company.
Ariel would be influenced by the
range of products existing in the
market as it also has a vast line of
products available as pods, liquid
detergents and in powdered form.
This will assist it in leveraging its
revenue structure by attracting the
customers in buying varieties of
detergents that are manufactured in
the firm in various forms.
Technological Technology is utilised in the
laundry detergent industry to
clean the clothes in an efficient
manner.
E-commerce has facilitated the
trading of the products of
businesses by providing them
with opportunity to reach global
market through online method
even without their physical
establishment in countries where
Ariel will be affected positively
with the use of technology in
improving the detergents’ quality.
The organisation will be
influenced by selling its products
through e-commerce, as it would
have opportunity of selling the
detergent goods in various regions
even in the localities where it does
not have physical outlets.
6

they are trading goods (Xue et al.,
2016).
Legal According to the “Equality Act
2010”, the organisations
functioning in the United
Kingdom should provide equal
rights to workers disregarding
their gender, age, race, religion,
sexual orientation, and such
factors (legislation.gov.uk, 2019).
As per the “Data Protection Act
1988”, the companies working in
the UK have to control the use of
information of customers as well
as of employees (experian.co.uk,
2019). This legislation protects
the data of people associated with
the firm by giving them rights to
have protection on their data
specifically that concerns their
health, sexual life, ethnic
background, and other factors.
The law of the UK’s government
will affect Ariel, as it would have
to amend the business’ policies
and set code of conduct to adhere
to the regulations of the legislation.
Ariel would be influenced by the
legislation concerning data
protection as the delicate
information about the employees
and customers would be
safeguarded that would influence
the image of the company in the
country. It would not have dispute
with the society or government
concerning this matter that would
help it in running business
successfully.
Environmental According to the “Environmental
Permitting (England and Wales)
Regulations 2010”, the companies
should control discharge of
polluted water in water bodies to
reduce water pollution
(environmentlaw.org.uk, 2019).
The people value sustainability in
detergent-based companies these
Ariel will be affected by the
regulation of government
concerning discharge of polluted
water because it would have to
control water pollution by
monitoring its activities that can
harm the natural resources.
Ariel will be influenced by the
popularity of sustainable method
7

days because of its less impact on
nature (Zhao, 2018).
as it has incorporated in business
sustainable ways in packaging the
goods (ariel.co.uk, 2019). It has
also used energy-efficiency
formula to make goods that would
require less energy when used by
customers (ariel.co.uk, 2019).
Table 1: PESTLE analysis of Ariel
(Source: Created by the learner)
Strengths
 The business has expanded in various
regions such as South Africa, Pakistan,
North Africa, Middle East regions, and
many others (Mourdoukoutas, 2015).
This has supported the firm in
increasing its sales and profit rate by
trading goods in different regions. This
has also assisted Ariel in enlarging its
business territories and improving the
brand’s value.
 The business use innovation in
producing goods that consume less
energy when used for washing clothes
(ariel.co.uk, 2019).
 Ariel has used technology in
developing odour-removal detergent
products (ariel.co.uk, 2019). This has
helped the business in leveraging the
sales rate by influencing the customers.
 The firm provides health safety tips to
Weaknesses
 The price range of the products is high
in comparison to other brands such as
Surf, Arm and Hammer, and such
(todaysparent.com, 2018). This can
have a negative influence over the sales
rate of Ariel by diverting the
customers’ towards themselves in
purchasing their products.
8

the customers through its official
website (ariel.co.uk, 2019). This has
helped it in engaging the consumers
and making connection with them.
 The organisation’s products come in
variant forms such as washing powders,
capsules, liquids, gel, and such
(ariel.co.uk, 2019).
 The business has made innovation in
creating innovative products that can
clean clothes in cold temperatures
(ariel.co.uk, 2019).
Opportunities
 Ariel has the opportunity of increasing
innovation by developing innovative
products to influence consumers in a
positive manner (Bossle et al., 2016).
 The business has the chance of
leveraging the rate of sales by making
expansion in various countries. This
will leverage the market share of Ariel
that would be profitable for business’
growth.
 Ariel can use e-commerce to increase
the sales of goods, as through e-
commerce organisations such as
Snapdeal, eBay, and others more sales
will be made.
Threats
 Ariel has the threat of rival
organisations such as Persil among
others that can reduce the sales of the
goods manufactured by the firm.
 Brexit can pose threat to the business
by controlling the migration of
employees from EU nation. This can
lead to shortage of workers and affect
the activities of firm negatively.
Table 2: SWOT analysis of Ariel
(Source: Created by the learner)
9

High Price
High Quality Low Quality
Low Price
It can be observed from the figure presented above that Ariel has been positioned in the high
price and high quality segment. In the same position, Persil, another brand of detergent is placed,
which have high price along with high quality products. Ariel can also have competition with
Arm and Hammer brand that provides good quality detergents to customers at moderate price
range. However, the customers’ decision can be affected by such brands that provide customers
with products at affordable price. Surf is positioned at low quality and low price segment
because of lack f innovation in its products’ quality and due to its favourable price that can
attract the consumers who do not want to spend more on laundry.
10
Figure 1: Positioning of Ariel
(Source: Created by the learner)

Competitive advantage (USP)
The unique selling point or USP of Ariel is that it has an attractive website that provides
sufficient knowledge to the customers about the key aspects of the goods. The people from all
over the globe would be able to know the company’s activities such as its sustainable ways,
innovation, advancement in technology, and such. As per recorded from ariel.co.uk (2019), Ariel
through its website provides the users with tutorial on how to clean clothes effectively by using
less energy. The competitive advantage that Ariel has is its method of targeting the high-class
people to generate most benefit.
Moreover, as per newscientist.com (2016), it has also created products that are available to the
consumers at low price to beat the rivals such as Arm and Hammer and Surf. Ariel has
revolutionised the detergents with its incorporation of innovation in developing detergents that
would keep the lustre of clothes even after several wash. In addition to this, its odour control
technology in detergents releases scents from the clothes to ensure freshness that lasts for long
duration even if the customers have to spend an active life (ariel.co.uk, 2019). The organisation
uses sustainable method in packaging of the products as well as in the contents of the products
itself. Its pods work on tough stains in lesser time than other products that assist in reducing the
energy used in running washing machines.
11

Evaluation of current marketing strategy
It can be observed from statista.com (2019), that the leading brand in laundry, Ariel have
different varieties of detergents among which Ariel Biological have vast number of customers, as
estimated that this variant of product is bought by 2.1 million people in Great Britain. Therefore,
it can be said that due to innovation in products formation by Ariel, the customers’ decision in
buying the laundry goods have been influenced. This strategy of Ariel has been effective in
attracting customers due to their preference over biological products that would not harm the
environment. As per the article by Vizard (2018), Ariel has leveraged its marketing activities for
growth of business. It has put effort in convincing the consumers on choosing liquitabs over
traditional washing powder for washing arguments. In the liquitab segment, Ariel has the market
share of 30%. It has advertised the products through broadband channels such as television to
reveal the simple and easy method of cleaning apparels through liquitabs. It has also tried to
engage people in trying pods through campaigns. Ariel has also used celebrities in providing
video tutorial to the consumers on the way to utilise pods in washing clothes.
12