MKT 306: Detailed Analysis of Ariel's Marketing Strategy

This report provides a comprehensive analysis of Ariel's marketing strategy within the UK detergent market. It begins with an executive summary and table of contents, followed by an introduction to the report's objectives. A detailed situational analysis, including PESTLE and SWOT frameworks, is presented to evaluate Ariel's market position. The report explores Ariel's competitive advantages, specifically its unique selling proposition (USP), and evaluates its current marketing strategy. The second part of the report focuses on segmentation, targeting, and positioning (STP), recommending objectives, goals, and marketing strategies based on the marketing mix. The report concludes with a summary of findings and recommendations, supported by a bibliography of references.

Running head: MARKETING STRATEGY ANALYSIS OF ARIEL
MARKETING STRATEGY ANALYSIS OF ARIEL
Name of the Student
Name of the University
Author Note

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MARKETING STRATEGY ANALYSIS OF ARIEL
Executive Summary
The report is based on the analysis of an organization that operates in the detergent market of
the United Kingdom. The situational analysis of Ariel is based on the implementation of
SWOT framework and PESTEL analysis tool. The competitive advantage that has been
developed by Ariel in the market is also an important part of the analysis that is made in the
report. The marketing strategy currently used by the firm has been discussed and
recommendations are also provided about the strategies that the firm can implement for its
future operations in the market. The future marketing mix of the firm has also been analysed
in the report in detail.

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MARKETING STRATEGY ANALYSIS OF ARIEL
Table of Contents
Part 1..............................................................................................................................3
Introduction................................................................................................................3
Situational analysis.....................................................................................................3
PESTLE analysis....................................................................................................3
SWOT analysis.......................................................................................................5
Competitive advantage – USP...................................................................................6
Evaluation of the current marketing strategy.............................................................7
Part 2..............................................................................................................................8
Segmentation, Targeting and Positioning (STP)........................................................8
Recommended objectives and goals (SMART).......................................................10
Recommended marketing strategies based on marketing mix.................................10
Conclusion................................................................................................................12
Bibliography with references...................................................................................13

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MARKETING STRATEGY ANALYSIS OF ARIEL
Part 1
Introduction
The report will be based on the detailed analysis of a firm that mainly conducts
marketing based operations of detergent related products. The firm that has been selected for
this report is Ariel. The report has been thereby divided into two major parts. First part will
be based on the marketing audit, competitive advantage, marketing strategy and position that
has been formed by the company in the market. Second part of this report will be based on
the segmentation, targeting and positioning of the organization and the marketing mix that
can be developed as well. The goals will be based on increasing the profits, brand awareness
and market share of Ariel.
Ariel has been able to gain the topmost position based on the quality of detergent
products that are offered by the firm. The company was established in the year 1967 and
Ariel had been able to maintain its growth effectively in the 1980s and the 1990s. In the year
1992, Ariel had made an innovation based on the development of a detergent that is bleach
free in nature. In the year 2001, the company launched another product named liquitabs that
had the ability to provide unbeatable levels of results (Ariel.co.uk 2019).
Situational analysis
PESTLE analysis
Political factors – The parliament system is applied in the United Kingdom and the
government is able to provide major levels of opportunities to maintain its operations in the
country. The political condition of UK has both positive and negative effects on the
organizations that aim at entering the country. The consumers in UK are influenced by
regulations that are implemented in the country and the activeness of the government has a
positive impact on the organizational operations (Aghdaie and Alimardani 2015). The

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MARKETING STRATEGY ANALYSIS OF ARIEL
corruption levels in the country and decision related to Brexit are considered to be important
factors that are able to influence the firm.
Economic factors – The position that is held by the UK based on size of the economy
is considered to be high in comparison to the various countries in Europe. Worldwide that is
gained by the GDP of UK is fifth. The large economy is able to provide major growth
opportunities to Ariel. Global recession is a major negative factor that has influenced the
sales and revenues of the organization (Aguinis, Edwards and Bradley 2017).
Social factors – The government of UK is able to provide many different services to
the citizens free of costa and the population of the country has amounted to 65 Million.
Living standards of people are considered to be quite high and choice of products are based
on their needs and demands as well. Ariel has also developed products that are of high
standards and are also customised based on the consumer lifestyle (Al Badi 2015).
Technological factors – The economic development of the United Kingdom has led
to the proper implementation of technologies in manufacturing process of Ariel. Skills that
are required for the development of innovation are considered to be effective for launching
innovative products that are manufactured by Ariel. Competition in the industry can also be
faced by Ariel with the proper usage of technologies in the operations (Albers, Wohlgezogen
and Zajac 2016).
Environmental factors – The environmental conditions have always been taken into
consideration by Ariel that has further helped the company to develop an effective reputation
in the industry. The company has used renewable energy sources in order to maintain the
manufacturing process in an effective manner. The perception of customers based on the eco-
friendly nature of products of Ariel is also considered to be effective for image that is
maintained by the firm (Albrecht et al. 2015).

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MARKETING STRATEGY ANALYSIS OF ARIEL
Legal factors – The regulations developed by government of the United Kingdom
have an impact on the operations and manufacturing process of Ariel. The strategies are
mainly developed by Ariel with respect to the laws that have been formed by the government
of the country (Andaleeb 2016).
SWOT analysis
Strengths – The parent organization of Ariel is Procter and Gamble that has gained
the topmost position in the industry with respect to its brand value. Ariel has also been able to
worldwide leader in detergent based sector based on the revenues. The products have been
developed by Ariel with the help of enzyme based technology. Quality of the detergents
based on stain removal capabilities and fragrances are considered to be major strengths of the
organization. Ariel has also been able to gain a large share in the market with the support that
is provided by the high quality products (Armstrong et al. 2018).
Weaknesses – Ariel has not been successful in the development of promotional
campaigns and activities in order to reach the customers and increase awareness based on the
products as well. The pricing strategies of Ariel have proved to be highly ineffective in nature
and fluctuations have a major impact on the organizational revenues as well. Ariel also faces
major levels of competition in the industry from companies that offer similar types of
products (Bang, Joshi and Singh 2016).
Opportunities – Ariel has the opportunity to offer its products to the customers who
are a part of the rural market. The company can also increase its shares in the market with the
proper usage of the potential developed by the rural market. Promotional activities can also
be developed in such a manner that can help in the improvement of awareness levels of
products that are offered by Ariel (Barrick et al. 2015).

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MARKETING STRATEGY ANALYSIS OF ARIEL
Threats – The competitive rivalry faced by Ariel in the industry and availability of the
substitute products are a major threat to the operations of the firm. The intensity of
competition in detergent industry can have an impact on the revenues that have been gained
by Ariel in the market (Camilleri 2018).
Competitive advantage – USP
The competitive advantage can be developed by an organization with the support that
is provided by the unique selling proposition or USP. The formation of USP is mainly based
on the advertisements and promotions of Ariel that is able to support the growth of the firm
as well. The unique feature that is possessed by the company is able to develop the levels of
personalisation of the firm (Craft and Hassan 2015). The advertisements of Ariel are also able
to offer a major description based on the features and benefits that are offered by the
products. Ariel has been able to form an USP that is related to the ways by which the
products are able to tough stains from the dress materials along with the effective fragrances
(Deepak and Jeyakumar 2019).
Ariel has also aimed at forming a differential advantage or distinctive feature that the
organization can use in order to face the competitors who are a part of the market. The
options that are offered to the customers in this industry are huge and development of a
differential advantage is considered to be a major factor that can have an impact on its
reputation. The perceptions that are formed by the customers in comparison to its competitors
are also based on advantage that is gained by Ariel in the industry (Dibb and Simkin 2016).
Ariel can also aim at becoming a leader in the industry with the development of an effective
advantage. The brand value of Ariel and its parent organization is also an important part of
the advantages that have been gained in the market. The behaviour of customers towards the
products of Ariel can also be managed effectively with the help of branding and promotional
activities that are developed (Dolnicar, Grün and Leisch 2018).

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MARKETING STRATEGY ANALYSIS OF ARIEL
Evaluation of the current marketing strategy
The marketing strategy that is formed by an organization is based on the ways by
which an organization aims at maintaining its position in the market by enhancing the levels
of growth. The growth and sales based revenues of the firms are also influenced in a huge
manner by the marketing strategies that have been formed by the global organizations like
Ariel (Frow et al. 2015).
Ariel has gained the position of best detergents in the United Kingdom with the help
of the quality of its products. The organization has also been able to provide high levels of
competition to the other firms that are a part of the same industry. The products that are
offered by Ariel are priced at different levels for the purpose of fulfilling different needs of
the customers who are a part of various segments. The firm is thereby able to compete with
the low price based products that are offered to the customers by other organizations that are
a part of the UK market (Frynas and Mellahi 2015). The company is also aiming at the
improvement of the promotional activities in order to increase awareness of the products that
are provided by Ariel. The competitive levels and shares that are gained in the market have
an impact on the ways by which Ariel can maintain its position. The development of
competitive advantage is thereby considered to be quite important in this case for the purpose
of maintaining the operations profitably (Heding, Knudtzen and Bjerre 2015). The
profitability levels of Ariel have been considered to be quite high as compared to the
competitors of the firm in the market. The quality of products provided by Ariel have helped
the company to earn high levels of revenues in the market. The profits and revenues of the
firm in the United Kingdom are considered to be quite high and Ariel has faced the
competition in the industry in an effective manner (Helfat and Martin 2015).

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MARKETING STRATEGY ANALYSIS OF ARIEL
Part 2
Segmentation, Targeting and Positioning (STP)
Segmentation – The segmentation process that is implemented by an organization is
based on the ways by which potential segments of customers can be identified and they can
be provided with effective value as well. Ariel has also developed various customer segments
based on their value and the demands as well. The market based on detergents have been
divided into various segments with respect to the two categories that include demographic
and psychographic segmentation (Hitt, Ireland and Hoskisson 2016). The buying based
pattern of the customers and strategy of market segmentation can play a major role in
dividing the segments. The customer segments mainly consist of group of customers who
prefer similar types of products. The size and variants of the products of Ariel are able to
influence the choice of the consumers (Išoraitė 2016).
Geographic segmentation – This segmentation process can be used by Ariel in order
to target the customers in the urban areas. Ariel has mainly developed its target customer
groups in the cities and various urban areas as well. The company has not been able to
maintain a customer base in the rural areas in order to offer its products (Koryak et al. 2015).
Demographic segmentation – The demographic segmentation process has been
implemented by Ariel in order to divide the customers into different age groups. Women are
considered to be most significant part of the customer base that is formed by Ariel in the
United Kingdom.
Psychographic segmentation – The personality and lifestyle of the customers are
always taken into consideration by Ariel in order to understand the products that can be
offered to them. The conscious customers of industry however prefer the expensive products
in comparison to the other customers in the industry (Prajogo 2016).

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MARKETING STRATEGY ANALYSIS OF ARIEL
Behavioural segmentation – The behaviour of consumers are also taken into
consideration by Ariel in order to understand the usage of products that are being offered to
them. The levels of brand loyalty are also considered to be an important factor that have an
impact on the segmentation process of Ariel (Punt et al. 2016).
Targeting – The target customer segments of Ariel and the FMCG products are based
on the ways by which they use the products for clothes washing purposes. The various
customer segments that are targeted by Ariel with the help of products include lower class,
middle class and upper class as well. Small sachets are offered by Ariel to the customers who
belong to lower income group. The ladies are considered to be most significant targets of the
detergent products that are offered by Ariel (Serrat 2017). Ariel has been able to target the
customers with various types of detergents that are developed by the firm. Promotional
activities of the firm have an impact on the target customers and their perceptions based on
the products as well. Premium and large products of Ariel are offered by the firm to niche
market based area of the United Kingdom. The smaller segments of the market are on the
other hand targeted with the help of smaller products of Ariel. Competitive advantage can
also be gained by Ariel with the support that is provided by products that are offered by the
firm (Teece, Peteraf and Leih 2016).
Positioning – The position that is formed by Ariel in the market of United Kingdom
is mainly based on the trust levels of customers. Satisfaction that is offered by products of
Ariel to the customers is a major factor that is able to enhance the levels of brand loyalty.
Ariel has also been able to form an effective image in the market due to the sustainable
operations that are developed by the firm. The perception based on the brand of Ariel in
minds of consumers is able to play a major role in the formation of its position in the industry
(West, Ford and Ibrahim 2015). Strong positioning and brand value of Ariel is able to play a
major role in the ways by which the form is able to face the competitors. Advertisement and

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MARKETING STRATEGY ANALYSIS OF ARIEL
packaging are also considered to be important factors that can have an impact on the
positioning of Ariel.
Recommended objectives and goals (SMART)
The SMART goals can be developed by Ariel in order to improve the revenues in the
future along with its position in the market.
S – Specific – The category of customers and people who can invest in the business
are decided in this part of the SMART goal based framework. The purpose of the business
operations is also decided as a part of this step (Wolf and Floyd 2017).
M – Measurable – The time that will be required for proper achievement of the goals
is developed as a part of this step. Ariel has developed a timeframe of 1 year for the
achievement of its goals.
A – Achievable – The people who are required for proper achievement of the goals
are decided in the third step of this framework. The achievability of the goals that have been
developed by Ariel is analysed in this step (Hitt, Ireland and Hoskisson 2016).
R – Relevant – The company has to develop the goals that are realistic in nature.
Goals developed by Ariel are considered to be real and relevant for the future operations of
the firm.
T – Timely – The time frame of achievement of the goals is decided in the last step.
Ariel needs to keep in check the activities that are performed by individuals towards proper
achievement of the goals (Išoraitė 2016).
Recommended marketing strategies based on marketing mix
The marketing strategies and objectives that have been set by the organization will be
based on the proper development of marketing mix for its future operations.

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MARKETING STRATEGY ANALYSIS OF ARIEL
Product – The quality of products offered by Ariel are considered to be quite effective
for proper removal of the stains. Detergents of Ariel are quite suitable for usage in the
washing machines and manual washing as well. The demands for products of Ariel are high
in the market and the products are able to maintain their quality as well. The gel based
products and bars of Ariel are considered to be major products of the firm that help the firm
to develop a new customer base (Bang, Joshi and Singh 2016).
Price – The prices that have been set by Ariel for the products are higher in
comparison to those which are provided by its competitors. The strategy based on pricing
implemented by Ariel have help the firm to develop a premium position in the industry. The
prices of various products of Ariel are decided by a separate team in the organization. Ariel
has also gained a favourable position in the houses of consumers. The consumers are also
paying higher prices for the products due to the quality of detergents. Products based on low
prices are also offered by Ariel in order to attract the rural customers (Aghdaie and
Alimardani 2015).
Place – Ariel has been able to develop its market in the United Kingdom in the year
1967 and the firm had further been able to enhance the operations in various other countries
that include India, China, Japan, Brazil and Peru. Ariel has formed its distribution channel or
network in such a manner that is helpful for the firm to reach the customers faster. The
distributors are provided with effective levels of incentives that are considered to be quite
high. The warehouses that are maintained by the firm have an impact on the distribution
process of the organization. Penetration policy has been implemented by Ariel in order to
improve the distribution process of the organization (Aguinis, Edwards and Bradley 2017).
Promotion – The promotional strategy that has been implemented by Ariel is
considered to be quite strong and has been able to increase its share in the market as well.

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MARKETING STRATEGY ANALYSIS OF ARIEL
The company has also implemented latest levels of technologies in order to develop the
products of Ariel. The new levels of innovation that are used by Ariel for manufacture of
various products of the firm that are promoted with the usage of different channels (Andaleeb
2016).
The mass marketing based strategy has been implemented by Ariel for promoting its
products to large number of customers. The company aims at the development of attractive
advertisements for attracting the customers towards the organization. Radio and television are
used by the company for the purpose of increasing awareness related to the products that are
offered by Ariel (Frynas and Mellahi 2015).
Conclusion
The report can be concluded by stating that Ariel can maintain its position in the
detergent market with the products that are offered to the customers in order to fulfil their
demands and needs. The SWOT and PESTLE framework has been implemented in order to
understand the situation of the organization. The competitive advantage has been gained by
Ariel by development of high quality products and the customer base as well. The marketing
strategy that is implemented by Ariel is also an important factor that can helps in
development of the future operations of the firm in detergent market. Marketing objectives
and goals that are formed by the organization have been able to play a major role in
formation of marketing mix of the firm. The future operations of Ariel will be supported in a
huge manner by the objectives that have been formed by the firm.

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