Marketing Strategy of Tide Laundry Detergent in the UK

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Marketing Strategy
Individual Report
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Executive summary
The task provided below has the report on the marketing strategy of Tide, a detergent company
that is located in Manchester, United Kingdom. The situational analysis has been carried out by
assessing the external as well as micro factors of the business environment. The competitive
advantage of the company that has made it achieve growth in business so far has been provided.
The marketing strategy used by the firm recently has been explained. The use of STP has been
carried out in targeting a particular market fit for marketing of Tide’s products.
Recommendations have been done on setting goals of the business by using SMART technique.
Marketing strategies for the growth of business profitability has been done by utilising 7P’s of
marketing mix.
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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 & 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
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Introduction
Marketing strategy is the plan of an organisation for reaching the customers and sells the
manufactured products to them for enhancing the profit of business (Morgan et al., 2019). This
approach let the business meet the goals and objectives of the organisation and have sustainable
advantage over the rival firms. Tide is one of the brands of Procter & Gamble that produces
laundry detergent. This organisation has been formed in the year 1946 and has markets in
different countries of the world (tide.com, 2019). It has location in the United Kingdom in
Trafford Park, Manchester as well. As per the report of 2018, Tide is the highest-selling brand of
detergent globally. It has market share of 14.3% as reported in the same year (uk.reuters.com,
2018).
The present report will discuss the market position of the chosen firm that is Tide in the laundry
detergent industry. The internal as well as external environment of the business will be assessed.
The competitive advantage strategies of the company will be demonstrated as well.
Recommendations will be made on the marketing strategies of the company as well as the
application of the marketing mix will be carried out.
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Part 1
Situational Analysis – (PESTLE) (SWOT)
Elements Factors Analysis
Political The fall of sterling by 16%due
to Brexit has increased the cost
of the companies operating in
the United Kingdom (Browne,
2016).
Political instability or
uncertainty such as Brexit vote
has affected the business of the
country as the operations as
well as the profit of the
companies are affected due to
changes in the legislature and
constituencies (Rice and Zegart,
2018).
The rise in the cost of business
due to Brexit has reduced the
value of sterling that can affect
the Tide Company operating in
the UK as its cost will rise and
profit will be reduced.
Tide will be affected by the
governmental instability of the
UK because the sudden changes
in the system will affect the
workers as well as operations of
the firm.
Economic The growth rate of GDP of the
United Kingdom has
experienced a fall from 0.2% in
January 2019 to -0.2% in July
2019 (tradingeconomics.com,
2019).
The inflation rate of the UK has
been increased from 2% to
2.1% from June to August 2019
(tradingeconomics.com, 2019).
The fall in the growth of GDP of
the country can have a negative
influence over Tide, as the
firm’s economic power will be
decreased. This will reduce the
innovations and development of
the company. Due to fall in
economic power of the country,
the purchasing power of the
people will also be reduced that
will affect their decision in
selecting this particular firm
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over the companies that are less
expensive.
The rise in the rate of inflation
of the United Kingdom can
affect the cost of maintaining
business of Tide. This will affect
its profitability in a negative
manner.
Social People are preferring eco-
friendly detergents over
chemical-based laundry
detergents that will have less
impact on the environment
(Shah and NAFEES, 2017).
The gentle detergents are
popular nowadays because they
do not have negative effects n
sensitive skin as well as on
clothes texture (tide.com,
2019).
Tide will be influenced
positively by the preferred
choice of the customers as it
produces eco-friendly products.
This will influence the business,
as the sales will be increased
due to the company’s popularity
over other companies in the
context of its incorporation of a
sustainable method of
manufacturing goods.
The gentle detergents preference
will affect positively Tide
laundry detergent firm as it
produces gentle detergents that
are free from perfumes and
dyes.
Technological Technologies are used in
detergent manufacturing
companies to replace the
petroleum-based raw materials
for manufacturing detergents
(Jadhav et al., 2019).
Technological factor in
manufacturing detergent from
renewable sources such as palm
and palm kernel oil will
influence Tide positively as has
produced detergents from
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Online medium is used by the
companies in marketing of the
products as well as in selling
the goods through online mode
(Schwarzl and Grabowska,
2015).
renewable sources such as from
marine and agriculture
(tide.com, 2019). This will have
less negative influence on
environment that will enhance
the firm’s image in the society
and leverage its sales.
Tide will be influenced
positively if it increases its
marketing activities through
online method by promoting the
products on its website, social
media pages, and such active
platforms.
Legal As per the “National Minimum
Wage Regulations 2019”, the
organisations operating in the
UK have to pay the employees
with adequate remuneration
(legislation.gov.uk, 2019).
According to the “Health and
Safety at Work Act 1974”, the
firms located in the United
Kingdom should ensure the
well-being of the workers by
providing them with safe
environment or workplace and
safe equipment and materials or
tools to use in their tasks
(hse.gov.uk, 2019).
Tide has to comply with the
legislation of the UK’s
government by providing
sufficient salary to the
employees for their welfare as
well as for sustenance of
business in this country.
The organisation has to adhere
to the law of safety in order to
survive the business in the UK.
It would be affected by this
legislation, as it would have to
provide a safe working place to
the workforce.
Environmental According to the “Detergent The Detergent Regulations will
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Regulations 2004”, the
producers of detergents should
label the concentration’s quality
in the products (hse.gov.uk,
2019). They should limit the
content of phosphorous or
phosphates.
Both the government and the
common people appreciate
sustainability in any industry
because of its importance in
having less impact on
environment (Laszlo and
Cescau, 2017).
affect Tide, as it has to limit the
concentration of chemicals in
the products.
Sustainability will have
affirmative influence over the
functioning of the company, as
through energy-efficient method
as well as by controlling waste
the business’ cost would be
reduced.
Table 1: PESTLE analysis of Tide
(Source: Created by the learner)
Strengths
 Tide is a globally recognised brand that
has a market share of 14.3%
(uk.reuters.com, 2018).
 The product line of Tide is effective in
attracting customers with products such
as Tide Coldwater, Tide Pods, and
others (tide.com, 2019).
 This company sponsored various
products from a different industry such
as cars of NASCAR and others
(autoweek.com, 2016). This has
strengthened its relationship with other
firms and enhanced its image and
Weaknesses
 Tide has a traditional logo and
packaging design that can affect the
decision of buying negatively and
reduce its sales.
 The price of the product is high in
comparison to rival organisations such
as Surf, Arm and Hammer, and others
(thespruce.com, 2019). This can
influence the buyers’ behaviour
negatively as they would turn to the
companies that offer products at low
range.
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popularity.
 Tide has continued to develop its
products through innovation such as by
creating liquid detergent, pods or
concentrated detergents, and others
(tide.com, 2019).
 Tided uses the sustainable method in
producing detergents by reducing waste
quantity and recycling the materials
(tide.com, 2019).
 The organisation has developed the
recycling platform for recycling
laundry bottles (tide.com, 2019).
 The organization has reduced carbon
footprints in transporting goods by
manufacturing the detergents as pods
that have reduced the transportation
frequency (tide.com, 2019).
 Tide has formed the product known as
Tide purclean that is plant-based
detergent (tide.com, 2019). It has been
made from agricultural and forestry
sources to lessen the impact on
environment.
 Tide is active in the online website for
engaging the customers in learning
ways to clean safe stains. This
influences consumers and increases the
sales’ prospect (tide.com, 2019).
Opportunities
 Tide has the opportunity of expanding
Threats
 Competition from rival companies such
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High Quality
Low Quality
High price Low price
its business in various regions.
 It should reduce the price range to
attract customers (Lee and Fay, 2017).
This would provide it with the
opportunity of increasing the products’
sales rate.
as Persil ProClean, Purex, and others
can reduce the sales rate of business
and decrease its chance of becoming
the largest selling brand of detergents in
the UK (thespruce.com, 2019).
 Government regulations of the UK will
affect its operations, as it would have to
comply with the nation’s laws for
business’ survival.
Table 2: SWOT analysis of Tide
(Source: Created by the learner)
As per the figure, provided above it can be observed that Tide is positioned in the high quality
and high price segment while some of its competitors are positioned in low price and low quality
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Figure 1: Market Positioning of Tide
(Source: Created by the learner)

segment. However, the business o Tide can be affected due to the presence of Persil Company; it
is positioned in the same segment as Tide. However, some firms provide the customers with
good quality products at less rang of price such as Arm and Hammer (thespruce.com, 2019). This
can also affect the sales of the detergents of Tide.
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Competitive advantage (USP)
As per pg.com (2014), the competitive advantage of Tide over the rival organisations is that its
incorporation of innovation in manufacturing detergent. The USP or unique selling point of this
brand is its high quality of goods. It has positioned itself in the segment of high price and high
quality to make a positive influence on the customers. The company has developed with time by
introducing products convenient for washing machines. Moreover, according to Lafley and
Martin (2017), the brand has targeted the market of affluent people by producing high cost
products like condensed detergents, liquid detergents, and others. It has also targeted the middle
class people by producing powder-based detergent. It has uniqueness in its formation of using
renewable sources for manufacturing goods. Tide has been remarkable in running sustainable
business by reducing energy wastage and proper usage of natural resources. It has promoted its
sustainability in its website that has made the customers aware of its ways and methods. This has
influenced the customers and increased the brand’s value, profitability, and competitive
advantage.
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