Management Economics Report: Examining Tide's Market Strategies

This report provides a comprehensive analysis of Tide, a leading laundry detergent brand by Procter & Gamble, from a management economics perspective. It begins with an organizational description, detailing Tide's history, products, and services, highlighting its significant market share and trusted brand status. The report then delves into market analysis, discussing key determinants, the nature of goods, economies of scale, and competition levels. Various market structures, including perfect competition, monopoly, oligopoly, and monopolistic competition, are examined in relation to Tide's operations, emphasizing its transition from perfect competition to a monopolistic competitive environment. The characteristics of monopolistic competition, such as numerous buyers, product differentiation, and freedom of entry and exit, are discussed in the context of Tide's strategies. Finally, the report explores how Tide operates in different market structures, adapting its strategies to maintain cost-effectiveness and cater to customer preferences.

Management
Economics 2

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Organisational description.......................................................................................................2
Market analysis..........................................................................................................................4
Market structure........................................................................................................................6
Operations of company in different market structure..........................................................8
CONCLUSION.............................................................................................................................10
REFERENCES............................................................................................................................11
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INTRODUCTION
In this current scenario, management economic is taking a wider place in the
market and it is considered as the branch of the economics which mainly involve the
specific application of the economic techniques that can helpful to maintain the
managerial decision making procedures. The main aim of the managerial economics is
to generate the framework which can useful in maximize the profit & provide the
appropriate outcomes in an appropriate way (Dal Zotto, Sacco and Schenker, 2017).
This assessment is mainly concerned about the Tide, which is famous American
laundry detergent brand that is manufactured by the Proctor and Gamble. This well
known firm founded in the year 1946 and the cover the whole market all around the
world. This assessment will comprise the description about the company and discuss
about the history and products & services of the company. Moreover, this project
determines the market situation and explains the various characteristics of the market.
Lastly, this project will discuss about different market structure.
MAIN BODY
Organisational description
Tide is considered as the popular laundry detergent which are manufactured and
also marketed by the Procter and gamble in the year 1946. Tide band covered the
almost 14.3 % of international market. Tide is a highest selling brand which is most
trusted detergent brand in the whole globe (Farboodi, Jarosch and Shimer, 2017).
Products & services
Tide is containing various product lines and also offering diversified product range
to their customers. Basically tide is a famous brand which is marketed under numerous
sub brand like 2× Ultra Tide, Tide family, Tide Coldwater, Tide XK, Tide Free and many
other. Tide is leading the whole market place in context of laundry detergent which is
utilized by most of the people and also very reliable household product. Companies
constantly conduct market research and also identify the exact requirements of the
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customers. The main concern of the company is to provide adequate products and
services which can improve their market value (Illanes and Moshary, 2018).
Figure 1, Laundry Detergent Market Analysis By Product, 2020
This chart demonstrate the market analysis of the Laundry detergent from the 2014 to
2025 and it 9is analysed that household and industries and distributions containing
factors of the market.
History
The original Tide detergent was mainly synthetic designed for heavy duty and machine
cleaning. Generally, Tide was 1st launched in the United States test market as the 1st
world heavy duty detergent with the domestically distribution achieved in the year 1949.
Tide also claimed that, brand was also considered as American Washday Favorite" and
its authority was gained in the US laundry detergent market as compared to the Surf
that is Unilever brand. Production Department of the Tide, utilize specific cleaning
sources which can helpful to improve the quality of the detergent (Kley, Klüppelberg
and Reinert, 2018). Now company is doing business nationally and internationally and
improves their sustainability rate by launching the eco friendly goods. Company also
won environment possibility award like "Environmental Heroes of the Year” in the year
2020.
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Market analysis
Market analysis is considered as bi analytical framework which involves
quantitative and also qualitative assessment of the whole marketplace. The main
concern of market analysis is to determine the market size and considered the both
market value and volume so that company can effectively maintained various customer
segments. Market analysis is also useful to understand the buying patterns, competition
level, and economic environmental conditions and also is specific barriers related to the
regulations of the market (Patel and Et. Al., 2020). Market analysis is useful to
determine the features of the market so the company can effectively take competitive
advantages and identify the real market situation of their rivals. In term of market
analysis, there are various factors are involved such as key determinants, nature of the
goods, economy of scale, number of buyers and sellers, competition level. In case of
Tide, manager of the company generalize the whole market situation in order to identify
the appropriate opportunities so that company can improve their market position and
also market structure. There are various types of market structure are discussed below -
 Perfect Competition - This market structure determined that large number of the
buyers & also sellers. It is analysed that all the seller of market are considered as
the equal sailor in the competition with each other. In this structure, there is no
one large seller exists which influences the market so that all the company in this
market contain as a price takers. In perfect competition market, some kind of
assumptions are involved such as products are homogeneous, the main concern
of the firm is profit maximization, free entry & exit from market , there is no
aspects related to the consumer preference (Quint and Dahlke, 2019). In context
of Tide, company operate in the perfect competition market structure at the initial
level and also considered as the price takers. The main concern of the company
is profit maximization. This structure is useful to allocate all the resources in an
appropriate manner, reduce consumer surplus.
 Monopoly - This market structure is containing only one seller so that one single
company will monitor and control the whole market. In this structure, company
can set any kind of prizes as for their choices because they are only one seller so
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company contains specific power. In this structure, customers do not contain any
alternative and customer must purchase the product speedy price which set by
seller (Sanchez Bayardo, Gonzalez and Iacovone , 2018). This structure is
undesirable because power is on hand of seller. In case of Tide, company has
full control on their business operations and also fluctuate their products prices
as per their consent so that company maintain their market price.
 Oligopoly - In this structure, only few companies are regulating their market
activities. In this structure there is no clear it related with the number of
Companies it is analysed that 3 to 5 dominant companies are considered as per
the norm. In this market structure, buyers are playing a prominent role and they
are far greater than sellers. This market structure contain homogeneous
commodity. For example, if Tide z operate in the oligopoly market fracture than It
has to maintain and share the market with some local entity. Company market
also monitors the price and also makes it critical for the other forms. This is
structure is useful to prevent the emergency e related to the new competitors that
can affect the business. There are various advantages of this structure such as
good customer support, more possibility to gain high revenue, price stability, and
low level of competition (Song, Chang and Song, 2019).
 Monopolistic Competition - This structure is a more realistic aspect which
maintains the requirement of real world. In this competition, there is large number
of buyers and sellers are existing. But all are not sell the homogeneous products.
In this structure, the products are similar but seller can sale slightly diversify and
different. This is a more realistic scenario that actually occurs in the real world. In
monopolistic competition, there are still a large number of buyers as well as
sellers. But they all do not sell homogeneous products. The products are similar
but all sellers sell slightly differentiated products. In term Tide , monopolistic
competition is considered because it can useful to sale the differentiated goat at
the reasonable and also competitive price. There are various types of benefits of
monopolistic structure are considered such as offer high quality of product,
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effective an active business environment, information about the market and
specific challenges which affect the performance of the employee. Customers
have a preference to choose the most convenient products over the others. For
example - The market of Surf is also containing monopolistic competition. The
goods are similar but goods are slightly differentiate in context of texture and
quality (Storey, 2019).
Market structure
Market structure determined that how various industries can classified and also
differentiate then self and maintains the degree & nature of the competition related to
their product and services. Where are four kind of market structure including perfect
competition, Monopoly market, oligopoly market and monopolistic competition.
Monopolistic competition is define as the imperfect type of competition in which there
are lots of sellers but the goods are differentiated and may not be example of perfect
substitutes. The main reason for differentiation can be product attributes , brand
perfection and product quality. Tide is Procter and gamble is example of the
monopolistic competition. At the initial level, Tide, operated their business in perfect
competition market structure with the effective time period, managers of the brand
transformed the company and decided to operate their business in monopolistic
competition. In monopolistic competition, various companies are representing the
industry and also produce same what differentiate products. Organizations are not even
price takers and maintain the free entry and also exit in the industry (Tang, Zhang and
Peng, 2021).
There are various characteristics of monopolistic competition considered by the Tide
which are discussed below -
 Large number of buyers - In this market structure, there are large number of
buyers are involved who made a purchase various differentiated products which
are producing why the various firms. Tide is a big brand which operates their
business all around the world so company is also targeting large number of
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buyers internationally and produce differentiated products as compared to their
rivals such as Surf product of Unilever.
 Product Differentiation - This is also containing as the main characteristics of
the monopolistic competition. Tide mainly concerned about the product
differentiation which determine the different types of product line, quality of the
product, applicability of the product which are available for the customers at fixed
period of time. Product differentiation arises when customers can differentiate
between the two products. These products are similar but closely differentiate
substitute of each other. Tide maintain this characteristics and also differentiate
their products with specific product attributes like shape, color, packaging,
measurement, durability and also quality of the product. For instance, Product
differentiation as per Tide detergent or Surf detergent brand.
 Freedom of the entry & Exit firms - monopolistic market competition is
maintain the freedom of free entry and also exit in the market just like perfect
competition. Tide mainly use differentiate products under this market structure.
Tide deals with various range of products which are offering in various foreign
countries so company maintaining free market structure.
 Selling cost - This is also a important characteristics of this market structure
because Tide is spending more money in advertisement and promotional
activities of their products. Company advertise their products via online and
offline methods including newspaper, magazine, radio, television and another
media platforms like Facebook, Instagram, Twitter so that company can sale of
their product on a maximum amount. So Tide invests in all these things are a
part of the selling cost.
 Imperfect knowledge - Monopolistic competition is also determining the
situation of the imperfect knowledge about the products and market. Buyers and
sellers of the products,. Owner of the sources do not contain specific knowledge
about the different cost of the products (Tanusondjaja, 2021).
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Operations of company in different market structure
Tide Company is maintaining their business operations in various markets structure
at every phase of the company. The main reason to adopt a specific market structure is
to maintain the specific cost structure, analyzing customers preference so that company
can effectively offer diversify the products to the customers. Through specific
applicability of the market structure is useful in effectiveness of the Tide market. Distinct
kind of market structure various choices so that company can take appropriate
decisions as per to improve their business operations. Various structures are helpful to
provide the lots benefits to the company and also useful to comprises the company
products and improve the productivity and profitability of the company. As per the highly
competitive market situation, Tide is regulating their market structure effectively (Tirole,
2017). In beginning phase, Tide adopted perfect competition market structure so that
company can effectively deal with the customers and maintain the effectiveness of the
market so that company can effectively enhance the selling, volume of sales and also
resolve the entry barriers. For instance, when Tide was operating with the perfect
competition market like another company products like Surf , Unilever products so that
company can effectively entry in the market and also clear all the barriers so that
company can earn the normal profit like surf which is considered as the big competitor
of the Tide.
In the specific time period, company adopted monopolistic competition so that
company can effectively improve the market situation to follow specific considerations of
monopolistic competition market structure. Through this market structure, Tide can
effectively target large number of buyers and face low entry & exit barriers and company
can take decision about the price. Through monopolistic competition structure, company
differentiates their products from their rivals so that company can effectively take more
competitive advantages. Tide adopting different market structure as for the situation of
the company so that company can effectively improve their applicability, set higher
price, target more customers, clear all the barriers so the company can effectively
develop their market and gain more profitability (Phukon and et. al., 2020). Company is
following all the considerations of the market structure so that company can properly
maintain the government policies and legal procedures which can useful to reduce the
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chances of conflicts among the market players. Through specific applications of the
monopolistic competition market structure, company can take appropriate decisions for
the development of their organization. Company also considers the practices of
government intervention so that company can effectively implement all the decision-
making procedures. Tide is also implement specific set of rules and course of actions
which are formed by the government because Government have a power and right to
create a specific subsidiaries, taxing public, tariffs, add tax to the international
communities (Baweja and et. al., 2017). It is determined that Tide can implement all
the government interventions in the special working operations of the company because
the nature of the economy is changing and market situation is fluctuating and the whole
scenario is very unpredictable. With the help of appropriate considerations of the market
structure and government interventions is useful to to maintain the performance of the
company.
CONCLUSION
On the beaches of this assessment, it can be concluded that management
economics is useful to maintain the consideration of the managerial economics factors.
Management economy is useful to provide proper directions to the company's so that
company can effectively adopt appropriate market structure in order to improve their
productivity. This report discussed about market analysis and market structure of the
company and also analyzes that which market structure is more convenient for the
company. As for the market condition of the selected organization, monopolistic
competition structure is convenient because it can useful to target large number of
buyers , improve the selling cost, freedom of entry and also exist.
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REFERENCES
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Tanusondjaja, A., Graham, C., Dunn, S., Nenycz-Thiel, M. and McColl, B., 2021. A
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Phukon, L.C., Chourasia, R., Kumari, M., Godan, T.K., Sahoo, D., Parameswaran, B.
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Baweja, M., Singh, P.K., Sadaf, A., Tiwari, R., Nain, L., Khare, S.K. and Shukla, P.,
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