Marketing Strategy Analysis Report: Ariel's Market Position

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This report provides a comprehensive analysis of Ariel's marketing strategy. It begins with an introduction outlining the scope and objectives, followed by a marketing audit that includes SWOT and PESTLE analyses to evaluate the internal and external environments. The report identifies Ariel's competitive advantages, specifically its unique selling proposition (USP), and assesses its position relative to competitors using Porter's Five Forces model. Furthermore, the report evaluates Ariel's current marketing strategy, focusing on growth, sales trends, and profitability. The second part of the report explores segmentation, targeting, and positioning (STP) strategies, recommends SMART objectives, and suggests a marketing strategy based on the application of the marketing mix. The analysis covers various factors, including political, economic, social, technological, legal, and environmental aspects, providing a detailed overview of Ariel's market position and strategic recommendations for future success.
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Marketing Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Marketing audit...........................................................................................................................1
Competitive advantage (USP).....................................................................................................4
Evaluation of current marketing strategy....................................................................................6
PART 2............................................................................................................................................7
Segmentation, targeting and positioning (STP)..........................................................................7
Recommend SMART objectives and goals................................................................................8
Suggest marketing strategy based on application of marketing mix...........................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14
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INTRODUCTION
Marketing strategy is long term forward-looking concept to planning with the objective
of accomplishing sustainable competitive edge. Marketing strategy of the organization
incorporates value proposition, leading marketing information, target consumers and other high
level element (Adi, 2015). This study is based on Ariel. It is the marketing line of laundry
washing powder which is made by Proctor & Gamble. Report will explain the marketing audit h
includes SWOT and PESTLE analysis of the organization. It will evaluate competitive edge in
relation competitive performance. Furthermore, assignment will analysis target segment and set
the clear marketing objectives to raise brand awareness and profits of the business.
PART 1
Marketing audit
Marketing audit means to the encompassing, organized, investigate and explain of
surrounding in which company want to market of their products and services in both internal and
external manner. Through this, company determine principles and strategies to check the fields
of issues and chances for accomplishing the objectives' ad goals of Ariel. It is the necessary to
suggest process to increase marketing performance of organization (Becherer and Helms, 2016).
It is also called as the situational analysis which is the technique of gathering information
relating to consumers, abilities and business environment.
Internal Environment (SWOT):
Strength:
Ariel is leading brand in washing powder segment in the world. Also, it is the quality
washing powder that can remove the hard-bitten stains. These are strengths of brand or firm. In
this context, company make efforts in invention in the marketing that has made powerful base in
mind of consumers (Blakeman, 2018). Also, company has introduced 1st fragrances in
marketplace. This can aid to increase sales and profitability of Ariel as well as new product
development in the marketplace.
Weakness:
There are many powerful rivals such as Surf Excel, Henkel and Nirma Ltd. by which
Ariel has highly influenced in relation to sales, profits, market share and performance within the
marketplace. Also, there are many products available at lower prices in the marketplace. It is also
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huge weakness of the firm. This can influence to decrease sales and profitability of Ariel as well
as new product development in the marketplace.
Opportunities:
Ariel can utilized their brand marks in minds of people which increase their consumer
base that is the highly opportunity for the business. Also, organization will large undeveloped in
rural marketplace which can aid to enhance the sales and profitability of the business (Cheung
and Pires, 2015). This can aid to increase sales and profitability of Ariel as well as new product
development in the marketplace.
Threats:
There are counterfeit goods in rural areas and highly competitive price rivalry which are
threats of the business. Also, trap marketing of products that can harm on reputation of brands or
products. High prices competition will influence on cost of products of selected brand, its profits
and sales of business. This can influence to decrease sales and profitability of Ariel as well as
new product development in the marketplace.
External Environment (PESTLE):
Political Factors:
It involves government regulation, exchange rate, political risk, stability and instability
which influences on overall business in business environment. The impact of profits or
opportunities of survivals of the firm are quite different. The political risks vary from sudden
modification in existing program to civil unrest to major decisions taken by the government.
Ariel can be exposed to appropriately appraise the level of overall organized political risk
(Dowell and Muthulingam, 2017). For instance: there are no policies relating to intellectual
property within the nation which refers entrepreneur can discover it too difficulty to invest in the
Ariel. Large level taxation will demotivate firms like Ariel from increasing their profitability.
Economic Factors:
These elements are those factors which concern to economy of nation such as
modification in inflation rate, foreign exchange rate, interest rate, step of economic cycle and
gross domestic product in the nation which influences on overall business in business
environment. For example: high GDP rate will influence ways of expected to grow in the future
by Ariel. Exchange rate of nation in which Ariel operates that effect on profits and involvement
of international trade by the firm.
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Social Factors:
These factors include culture, value, feeling and attitudes which are leading of the
population can hold as community which influences on overall business in business
environment. Social factors direct influence on reflection of society in which Ariel operates.
These kinds of social factors influence as an operational and marketing aspects of the company
(Gallemore and Labro, 2015). In this context, selected brand needs to be wholly aware of level of
standards of well-being, chemical reactions to harassment claims and significance of securing to
environment that predominate in the whole business.
Technological Factors:
The recent technological progression and discovery created by challengers like Tide. If
Ariel combats new devices which is earning popularity in the business, so that it is essential to
display the extent of quality and ways of growth as compared to their rivals quickly. The
improving and transforming of technology in products that can aid to firm in relation to raise
their sales and profits.
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Illustration 1: PESTEL Analysis
Source: (PESTEL Analysis, 2016)
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Legal Factors:
The government rules and laws in nation such as intellectual property, discrimination,
health and safety, data protection etc. that impact on employment within the organization. For
example: discrimination regulations are located through government to secure the workers in
Ariel in which treated fairly and providing similar chances relating to gender, age, ethnicity,
religion or sexual attitude (Goffin and Mitchell, 2016).
Environmental Factors:
It involves environmental regulation, climate changes, carbon footprints etc. which
influences on overall business in business environment. The standards of environmental
protection in head as norm in the different businesses. For example: current weather situations
can importantly influence capability to handle conveyance of both resources and finished good
of Ariel. Due to unexpected weather, influence on delivery date of final good.
Competitive advantage (USP)
It is the necessary to identify the competitive advantages which are situations that enables
to produce products or services of equal value at lesser cost or in more desirable fashion to
company or nation. Competitive edge are dimensions to various elements such as cost structure,
branding, quality of goods distribution network and consumer services. USP refers Unique
selling propositions. It is the marketing conception that is first planned as theme which explains
successful ads campaigns (Leonidou and et.al., 2017). Distinction is the most essential strategic
and tactical actions in which firm constantly involved. In this context, USP of Ariel is which
goods have been survived fr many years in marketplace. It has set up picture as washing powder
which can take the unclean and hard stains from cloths. For determine competitive advantages,
Ariel needs following the Porter's five force model in which five forces involve such as:
Rivalry Among Existing Firms:
There are many competitors of Ariel such as Surf Excel, Tide etc. which can influence on
their market share, profits and sales. Some challengers have huge market share which refers
these will involve in competitive activities to earn position and become market leaders. This
creates powerful forces of rivalry between existent companies within the industry (Porter’s Five
forces analysis, 2018). This force influences on Ariel in relation to develop new product line in
semi-rural location.
Threats of New Entrants:
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It is the difficult to accomplish the economic of scale within the industry in which Ariel
operates. It creates easier for those manufacturing large qualify to have cost advantages. Also, it
creates manufacturing expensive for new entrants (Porter’s Five forces analysis, 2018). This
creates weaker force of new entrants within the industry. In order to that, company needs
focusing on invention in differentiate goods from new entries. In can spend on marketing to build
powerful brand recognition. Also, this will aid it retains their consumers instead of losing them
to new entries. This force influences on Ariel in relation to develop new product line in semi-
rural location.
Bargaining Power of Suppliers:
There are lots of suppliers as compared to their buyers within the industry in which Ariel
operates. This refers suppliers have less control over prices which creates weak forces of
bargaining power of suppliers. Also, they do not give credible threat for forward combining into
the industry in which Ariel operates. This can create weak forces of bargaining power of
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Illustration 2: Porter’s Five forces analysis
Source: (Porter’s Five forces analysis, 2018)
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suppliers. This force influences on Ariel in relation to develop new product line in semi-rural
location.
Threats of Substitute Goods or Services:
There are few substitutes products available by low profits earning industries. It refers to
that there is no controlling on increasing profitability which companies can earn in the industry
in which Ariel operates (Safari Farhang and Rajabzadehyazdi, 2016). All of these elements
create weak force of threats of substitute goods within the industry. This force influences on
Ariel in relation to develop new product line in semi-rural location.
Bargaining Power of Buyers:
The number of suppliers in industry in which Ariel operates which is lots more than
number of companies manufacturing the goods. This refers to that buyers have some companies
to select firm. Thus, they do not have more control over prices. Also, income of buyers is very
low which means there is force to buy at lower prices that making buyers more price sensitive.
This force influences on Ariel in relation to develop new product line in semi-rural location.
Evaluation of current marketing strategy
Marketing strategy informs marketing plan that is report that lays out kinds and timing of
marketing actions. This lays out target market and value proposal which will be provided based
on evaluation of the best chances of market (Soh and Martinov‐Bennie, 2018). Marketing
strategies are proven to be mots impressive for growth of the business. Through evaluation of
marketing strategy, company have many benefits such as:
Growth: Ariel is new positioned as in superior category of washing powder. It is the
high-budget available in the market of United Kingdom. The organization has currently
encouraged some mid-priced brands or products to compete with challengers of low priced
washing powder. It is leading improved to compete with low priced washing powder that is
leading covered broad field of the marketplace. This can assist in developing new product line of
Ariel in semi-rural location and its growth in the marketplace.
Sales Trends: The washing powder market of United Kingdom as there are various
brands of washing powder such as Surf Excel, Persil existing equally. Furthermore, these brands
give goods at lower prices that is more threatening to selected brand (Wahab, bin Mohamad Shah
and Faisalmein, 2019). Therefore, it is necessary to evaluate the marketing strategy for
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increasing the sales and profitability of the selected brand or company. This can assist in
developing new product line of Ariel in semi-rural location and its sales in the marketplace.
Profitability: Company has been done large so far compare to other rivalry unit. The
premium price of product is very large which is related to quality and revenues. It is one of main
washing powder brands of all time in the marketplace (Adi, 2015). The profitability is larger in
the United Kingdom as compared to another goods like Surf Excel, Persil, Tide etc. This can
assist in developing new product line of Ariel in semi-rural location and its profitability in the
marketplace.
PART 2
Segmentation, targeting and positioning (STP)
STP (Segmentation, targeting and positioning) is the procedure by that an essential
thoughts in knowing marketing and approaches of the organization. STP is determined the
market than making marketing segments, analysing segments on sets basis (Becherer and Helms,
2016). While, the strategy gives getter guidance than selection of target marketing can be taken.
The analysis of market segments and building sections profile is necessary. The marketing mix
can be implmented afteh developing target market strategy.
Segmentation:
It is the procedure of determining the market than dividing the marketplace according to
some features of market etc. Another term, it is procedure of assigning users into determined
markets to same group. The Ariel washing powder segment can be family size as demographic
like small, medium and large, quality, services and income group as benefits segment and urban
and semi rural areas as geographic segments in the UK market (Cheung and Pires, 2015). This
can assist in developing new product line of Ariel in semi-rural location and its growth as well as
success of the brand in the marketplace.
Targeting:
Each segment marketers of Ariel washing powder can decide that market segments can
be best served through the organization with detail information. For Ariel, as premium good hard
to enter into semi-rural fields because it is already acquired by the challengers. There are many
elements to consider at the time of selecting the target market (Blakeman, 2018). Ariel target
audiences such as general users, working women and housewives, washing machines users and
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colour sensitivity of cloths. This can assist in developing new product line of Ariel in semi-rural
location and its growth as well as success of the brand in the marketplace.
Positioning:
It is competed to choose target audience and set up brand image in minds of users in the
positioning strategy. The mots difficult portion is set up sense which is not only for the premium
class community but also now it will provide semi-rural upper middle class people and decrease
price for Ariel washing powder in current time (Dowell and Muthulingam, 2017). There are
some general positioning approach of selected brand such as high quality importance, fragrances
position washing powder, lower temperature washing powder, provides shines to cloths and easy
to wash. This can assist in developing new product line of Ariel in semi-rural location and its
growth as well as success of the brand in the marketplace.
Recommend SMART objectives and goals
The SMART objective is utilized guide sin setting goals. SMART goals stand for
specific, measurable, achievable, realistic and timely. Thus, SMART goals integrates all of these
bases to aid directs efforts and raise opportunities of accomplishing objectives (Gallemore and
Labro, 2015). In this context, the objective of Ariel washing powder for new semi-rural segment
is to create desirable brand of working women and housewives of United Kingdom semi-rural
areas. The goal is SMART because:
Specific: Ariel will be introduced new product line for semi-rural kin group to develop their
brand image.
Measurable: It will be within 3 years with expected profits of 40 million
Achievable: It accomplished through large brand promotion.
Realistic: Proctor and Gamble has needed resources to accomplish the goals.
Time-bounded: The likely time period of accomplishing this goal is within 2019.
In order to that, selected brand needs to follow appropriate marketing strategies like
utilization of social media and content marketing for accomplishing the SMART objectives of
the business (Goffin and Mitchell, 2016). If the firm can achieve objective of business, so that
they easily grow and develop product line in the marketplace.
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Suggest marketing strategy based on application of marketing mix
Marketing mix is the mixture of product, price, promotion and place. There are three
components has been added like people, process and physical evidence in current times. It is
about putting right goods or mixture in the place at the correct time and at the accurate price.
Product:
Product is the touchable physical object which can be provided to the users to satisfy
their wants and requirements. Ariel new product line for semi-rural users is generally service
customer products. The distinction approach for this product line can be form, characteristic,
execution and reliableness. Furthermore, this product line will adopt super devices and also can
take some corporate social responsibilities (Leonidou and et.al., 2017). The programs of CSR of
Ariel can involve education or learning plans for advantaged students, increase finance, giving
the scholarships and so on. The packaging line of goods of Ariel will be more attractive than
previous strategy. The new product line of Ariel can have tricky tag line for the goods. It is
considered as premium goods and fresh tag line will be promotional technique to attract new
users. Selected brand has already set up their positive brand image in consumer's mind.
Price:
Price is the value transacted through users for product or profits that they earn from the
business. Price is the one of leading component of marketing mix which can be managed
carefully. It is an obvious component that users mostly advised while buying. People specially
women mostly consider this objective in relation to household care. Ariel leading set up their
place in the consumer's mind as premium goods, so that the price of product is high. But Ariel is
now prepared to open new product line that will also serve the semi-rural people (after) than it
has to decrease their price bit (Malysheva and et.al., 2016). Ariel can consider optional feature
pricing. It can also advise product line pricing as new product line. Selected brand cab be utilized
cost-plus pricing for improving impressive pricing. It needs to consider competitive pricing to
hold competition in marketplace of semi-rural washing powder marketers.
Place:
Place or distribution channels is the approach that define ways of products that will be
delivered to eventual users. All the delivery actions done through distribution channels from
production to end users. The firm requires advising carefully the place approach of Ariel. Also,
they can advise physical store approach for new product line. They have already existent in
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