American Apparel Marketing and Communications Strategy
Tide Marketing Proposal
1. Tide in USA & India
MABEL – MING – RAIZA – MARCIN –TALIA – FÉDIA - DHARMIK
2. •Flagship brand of P&G from more than 60 years
•World’s first heavy duty detergent
•Successful in more than 12 markets internationally
•One of the most trusted and favourite brands around the globe
Tide - Facts
4. Research Question
What can be drawn from the successes and failures of Tide's
current campaigns in the US and India and how can we
promote the existing product in a different market, or execute
the market extension for a new campaign in India?
5. Outline
I. External Diagnosis
(Opportunities & Threats)
II. Internal Diagnosis (Strengths
& Weaknesses)
III. Strategic & Operational
Decisions
IV. Promotion & Communication
Plan
V. The New Campaign: India
6. Dharmik Soni
CEO – P&G Global
Marcin Hajduk
MD – P&G Fabric
and Home Care
Mabel Manzo
Global Brand
Manager - Tide
Talia Meeuwissen
VP - Marketing
Raiza Ganzon
Associate Research
Director
Fedia Jean Claude
Head Creative
Research Analyst
Lu Ming
Associate Media
Director
9. POLITICAL FACTORS
•Subject to laws and regulations around the world with regards to FMCG
•FDI in retail a major factor
•Excise duty, sales tax, tax on imports and taxes on raw materials
ECONOMIC FACTORS
•Heavily affected by economic downturn
•Business dependent on continuing consumer demand
•Highly unstable macro environment
10. SOCIAL FACTORS
•Decreased accident rate with regard to employee safety
•Integrity, product quality and customer value
•Corporate Social Responsibility
•Shiksha Programme
TECHNOLOGICAL FACTORS
•Product quality and profits directly proportional to R&D
•High level of automation
•Minimisation of cost through IT effeciences
11. ENVIRONMENTAL FACTORS
•Promotion of sustainable development and utilisation of renewable
resources
•Maintenance of high environmental and safety standards
•Ecologically friendly packaging
LEGAL FACTORS
•Product safety, product claims, patents, employee health & safety,
corporate governance
•Advertising concerns over censorship
•Concerns over copyrights
17. P&G
140 Manufacturing
plants in 43
countries
Shipping contract
with Ryder
Distribution centres
in Ohio, Texas
Over 80 carriers
across North
America
800000 annual
shipments in over
8000 lanes in North
America
Direct to Retailers
Trade Intermediaries
Direct to Consumers
Tide E-Commerce
Walmart, Target,
Home Depot
Consumer
21. PARAMETER USA INDIA
Sales
(2014 - In billion
USD)
1.2 NA
Market Share 45% 13.5%
Http://www.statista.com/statistics/251472/sales-share-of-the-leading-10-liquid-laundry-detergent-brands-of-the-us/
http://www.slideshare.net/vaishali_singh/mm-presentation-pricing
24. INPUTS
Daily interaction with media
Word of mouth
Various choices
Numerous brand touch points
INFORMATION PROCESSING
Visibility of brands
Brand remembrance
Advertising influences
DECISION PROCESS
Regular purchase
Various alternatives
Fairly immediate outcomes
Satisfaction – Repetition
DECISION PROCESS
VARIABLES
Past experience with purchase
Individual preferences
Lifestyle changes
EXTERNAL INFLUENCES
Peer influences
Negligible societal influence
Familial choices
25. Individual Determinants
•Emotional connection – appeal to mothers
•Affective involvement drawn from brand loyalty
•Perceptions arising from brand appeal, packaging & advertising
•Primary demographic differences with regard to product form
•Evaluation of options – whiteness, gentleness with skin, fragrance, stain
removal, price changes
26. Exterior Influences
•Cultural difference over laundry preferences
•Familial preferences over outcome factors
•Peer influences with regard to brand adoption
•Reference groups in accordance with purchase experiences
•Role of status and income class
37. STRENGTHS
Market Leader
Complex Offer
Strong parent brand
WEAKNESSES
Substitutes
available at similar
prices
Pods are expensive
and indivisible
OPPORTUNITIES
Increased R&D for
new products
Thriving online
market
THREATS
Increasing threat of
competitors
Price wars
Threat of
cannibalisation
39. STRENGTHS
Very strong brand image
and likeability
Lower price and superior
quality
Flagship brand of P&G
WEAKNESSES
Extreme competition from
HUL and local products
Substitutes at similar
prices
Small market share
OPPORTUNITIES
Increasing consumption
patterns
Changing lifestyles
towards FMCG
High potential untapped
rural markets
THREATS
Increasing costs of raw
materials
Segment threat – ambush
marketing
Counterfeit products
41. Strategic Decisions
USA India
Segmentation Middle class Middle class, mass
Targets
Women, college students,
people with no children
Mostly women
Positioning Superior product
Very good quality, superior
whiteness, affordable price
42. Marketing Mix – the 4Ps
USA India
Product
Available in 4 types: liquid, powder,
pods and stain remover
Tide Detergent Powder & Tide
Detergent Soap
Price Medium price
Medium price, more price sensitive
market
Place Retail stores, Internet
Traditional channels only – retail
and wholesalers, bars – also in
kirana stores
Promotion
Both traditional and electronic
media, sponsorships ex. NASCAR
Mostly traditional media + TV
commercials
46. • Mid-Range, 40% population.
• Women to 18-54 years old
• Housewives and suit women
• Working man
• Geographic location, different
needs
• Generation Millennials: 18-
32 years old.
• Generation X: Women 33-
44 years old with families.
• Working men
• Only one quarter of
American consumers are
brand loyal
Marketing Targets
47. Communication Objectives
6 Facets Model
Cognitive Ultra Tide Show P&G Fabric Care Event- They will use
the cognitive science of perception
Affective Experience the feeling of freshness,
smell and whiteness in clothing
effortlessly
Provide satisfaction with the care of her
clothes
Behavior The feeling that occurs with trade is the
result of behaviour that is easy to wash
with whiteness
Who cares about every type of clothing
with good results
Perception No longer a battle when washing by
hand, faster and better results
Be seen as the promoter of the family
Persuasion Quick wash and affordable packages Appeals to the emotional side of
mothers
Association They associated with the culture and
attitudes
Tide being part of the family
48. Combination of print media, television and
public hoarding
Communication Targets
The campaigns have a “desi” touch and are
well executed
Television and radio (Involves a good
opening punch line)
Advertisements have a good recall value
49. Budgeting
• 2013: They invested $302,576,438 in
advertising
• 2014: $150 million in the campaign
• 2015: #4 position with a market share
of 13.50%
• 2012: Invested $300 million in
campaign tide pods
• 2013: $142 million in advertising
• 2014: Invested $2 billion
• 2015: Tide has the 25% in sales, Tide
represents $22.1 billion in sales
50. Communication Mix
Type of Media/
Country
Print Outdoor Radio TV
Social Media
and other
tools
USA 30% 10%
0% 40%
20%
India
30%
15% 20% 30% 5%
51. Creative Strategy
Problem
To strengthen Tide’s position and
create brand loyalty
To introduce Tide as the leading
whitening product at a lower cost
Target Audience Men and women, 18-54 years old Women, 18- 54 years old
Consumer Insight
Consumers on the go, with wide range
clothing colors and materials
Consumers place emphasis on
fragrance, soft on skin
Brand Imperatives Must have Tide logo Must have Tide logo
Communication
Objectives
To ensure customer loyalty as well as
appeal to the different sectors of the
market
To associate Tide with whiteness and low
cost
MBASkool.com. (n.d.) Retrieved November 12 2015 from http://www.mbaskool.com/brandguide/fmcg/818-tide.html
Brand Republic. (2007). Tide draws upon rich tapestry of mythology for new India campaign. Retrieved Novber 12 2015 from
http://www.brandrepublic.com/article/632796/tide-draws-upon-rich-tapestry-mythology-new-india-campaign
52. Creative Strategy
Proposition
Superior performance at an affordable
price
Provides good whitening and fragrance
at low price
Support or proof
Superior and unique formula, pioneer of
modern synthetic detergent, fragrant,
market leader
Superior and unique formula, pioneer of
modern synthetic detergent, fragrant
Creative direction
Focus on the many uses/efficiency of
Tide and emphasise long history
between Tide and its consumers
Focus on the whitening and cleaning
capacity of Tide and link with Indian
customs/traditions
Media Imperatives
Use of solid bright colours and orange
and yellow Tide Logo
Use of white cloths for props or
costumes, orange and yellow Tide logo
Majumar R. (2008). Product Management in India. New Delhi: Rajkamal Electric Press.(p. 274). Retrieved November 12 2015 from
https://books.google.fr/books?isbn=8120333837
American Chemical Society National Historic Chemical Landmarks. (2006). The Development of Tide Synthetic Detergent. Retrieved November 12 2015 from
http://www.acs.org/content/acs/en/education/whatischemistry/landmarks/tidedetergent.html
53. Copy Strategy
Route of
Persuasion
Peripheral (Emotional)
Uses images and colours
(e.g. Tide Pods commercials)
Central (Rational)
Appeals to beliefs, brand information and
demonstration
Copy Style
Approach
Heart
Appeals to emotions of the viewers
(e.g. "My Tide" and "Growing Up: Your
Parents vs. You")
Head
More rational approach
(e.g. "Tide Chhatriman", The White Stripe
campaign)
Hard Sell vs. Soft
Sell
Soft Sell
Tide is like a part of the family—
necessary and integral to everyday life
Hard Sell
Tide has a unique formula that lifts stains
quickly and efficiently
54. Media Planning
ATL
TTL
ATL
BTL
• TV
• Radio
• Press
• Outdoor/Out-of-Home
• TV
• Radio
• Outdoor/Out-of-Home
• Press - Print Media
• Direct Marketing
• Couponing
• PR
• Public Hoardings
• Web Marketing
• (Event) Sponsorship
• Social Media:
- Facebook
- Twitter
- Vine/YouTube
56. Traditional Media
TV
Launch Date July 2011 March 2010
Agency Saatchi & Saatchi Leo Burnett
Campaign “My Tide” “White Hai toh Tide Hai”
Length 30 seconds 30 seconds – 1 min
Focus Women (mothers), children, families Adults (Mainly men)
Broadcast (Time and Cost) Popular channel and TV programs Popular channel and TV programs
Seasonal Broadcast
(Time and Cost)
- 49 National TV Airings
- Sponsorship / Product placement
- Super Bowl
http://www.adweek.com/sa-article/pgs-picks-144574
http://www.ispot.tv/ad/7T0V/tide-sports-crazy
57. Traditional Media
RADIO
Launch June 2010
Broadcast 10 National Radio Stations
PRESS
Launch 2011 June 2010
Newspaper - print
Newspaper - digital
Newspaper - print / digital
Magazine - print / digital
http://psucomm473.blogspot.fr/2007/03/dove-campaign-for-real-beauty-case.html
http://www.coloribus.com/adsarchive/search/?x=0&y=0&q=tide+india
58. Traditional Media
OUTDOOR
Launch 2011 ***Clotheslines(2007); 2010
Non-Digital Out of Home - Transit (Bus Stops, Metro)
- Bus advertising
- Bulletin/Billboard (Place Based)
- Taxi advertising
- Transit (Bus Stops, Metro)
- Billboard
- Place Based
- Clothesline
(India’s longest - 5kms and had 2400
clothes on it)
http://articles.economictimes.indiatimes.com/2013-10-16/news/43107171_1_pg-home-products-procter-gamble-health-hygiene-gillette-india
59. Other tools & IMC Planning (Digital Media)
November 2005
October 2009
Aug 2013
2013 - 2014
60. Measure of Effectiveness - USA
Procter & Gamble's advertising spending on Tide in
the US from 2011 to 2014 (in million U.S. dollars)
Sales share of the leading 10 liquid laundry
detergent brands of the United States in 2014
http://www.statista.com/statistics/314855/tide-ad-spend-usa/
Http://www.statista.com/statistics/251472/sales-share-of-the-leading-10-liquid-laundry-detergent-brands-of-the-us/
http://www.wsj.com/articles/SB10001424127887323681904578641993173406444
61. Measure of Effectiveness - India
Awards
Radio
• Award at Goa Festival
Press
• Cannes Lions 2010 Press Silver
• London International Awards 2010 Print Shortlist
• New York Festival 2010 Outdoor Gold
• Spikes Asia 2010 Print & Outdoor Bronze
• One Show 2012 One Show Newspaper / Full Page or Spread - Single Merit
• Cannes Lions 2013 Press Lions Craft; Photography Silver
http://www.coloribus.com/adsarchive/search/?x=0&y=0&q=tide+india
62. Measure of Effectiveness - India
2012 2015
DR. Ritesh K. Patel. (n.d.). Indian Detergent Industry: Need For New Variant to Tap Potential Gaps. Retrieved Nov. 11, 2015
http://www.slideshare.net/sanchitgangar/p-g-procter-and-gamble-marketing-management
65. Communication Objectives -
New way of washing
Six-Facet Model Objectives
Cognitive
Make people aware there's a new way to wash
clothing
Perception
To give them a new option when choosing
detergent
Association To associate Tide product with better washing
Affective Tide is effectively priced and cloth-friendly
Persuasion
Tide product is mild for hand-washing, more
effective and multi-functional
Behaviour Make people switch from bars to powder
66. Budgeting and Communication Mix
Media Tool
Budget Allocation
(%)
TV 50
Radio 25
Outdoor 20
Other tools 5
• Budget will be
$302,576,438
• TV and radio reaches the
masses
67. Creative Strategy
• Problem: establish position& increase loyalty
• Target audience: women who currently use bar detergent
• Consumer insight: mildness on hands /superior whiteness /good for colored clothes /has fragrance
/affordable (Price) /tough stain removal /value for money/performance with hard water /long lasting foam
• Brand imperative: orange colour package, good odour, skin-friendly, economical
• Communication objective: to switch from bars to powder
• Proposition/Selling idea: cost-effective, fragrant product that is gentle on the skin
• Support/Proof: superior and unique formula, pioneer of modern synthetic detergent, fragrant
• Creative direction: focus on the cleaning capacity of Tide and link with it
• Media imperatives: "oceans of suds"
• Mandatories: must use original Tide colours and packaging
68. Copy Strategy
Route of Persuasion Copy Style Approach Hard Sell v/s Soft Sell
Central (Rational)
Appeals to beliefs, brand
information and demonstration
Head
More rational approach
Hard sell
Tide has a unique formula that
creates "oceans of suds" and is
gentle on the skin
69. Media Planning
ATL BTL
TV Free samples
Radio Direct marketing in rural areas
Outdoor Encourage purchasing of the SKUs
70. Traditional Media
Television
Campaign "Oceans of suds"
Length 30 sec.-1min.
Focus Women in rural areas
Broadcast (time and cast) Popular channels and TV programmes
Radio
Broadcast
Local radio: Special version in dialect
National radio
71.
72. Traditional Media
Outdoor
Non-Digital Out of Home
Billboard/Clothesline
Mobile van
Booth at fairs & market
Live demonstrations
Free samples
http://www.citeman.com/5215-rural-markets-initiative-of-fmcg-companies.html
http://susritasen.blogspot.fr/2010/07/way-towards-rural-markets.html
http://www.citeman.com/5215-rural-markets-initiative-of-fmcg-companies.html
73. IMC Planning
• PSA (the education issue and
welfare of the rural area)
• Publications: Pamphlet about the
company’s history
• Special event: corporate with
local event such as celebrations
and local markets
• Promote the cost effective pack with
original Tide colour
• Media: TV/radio/outdoor activities
• Launch special version in dialect
depending on the area
• Tide is a brand with history
• Change the way of washing
clothes in the rural area
• It is more economic and
convenient to use Tide
detergent
• Target Market: rural market in
India
• Target group: women age 18-
54
Target Message
Public
Relations
Advertising
&
Promotion
74. Control and Effectiveness Measures
Financial Measurement
• The market share (especially in rural area)
• The increase of sales
• The return of the investment of the campaign
Social & Media Measurement
• The total sales proportion between bar and detergent powder
• Brand awareness
http://www.citeman.com/5215-rural-markets-initiative-of-fmcg-companies.html
http://susritasen.blogspot.fr/2010/07/way-towards-rural-markets.html
75. Conclusion
• Fundamental idea of the new campaign based on the early campaign in the US
• Branding as a brand product
• Focus on promoting the long-lasting foam/superior whiteness/value for money
• Rural area market is an untapped market for Tide
• Choose the product with the highest potential to succeed
For the US, majority of their budget goes to their TV advertising, in keeping with the American culture that constantly watches television. They invest in making eye-catching short ads that would leave its mark on the audience. They also have a lot of print advertising present in magazines and the like. They also have outdoor advertisements placed in systematic areas, like bus stops. In the US, they put more emphasis on TV rather than the radio. The key recognizing factor for Tide are the colors and its logo, so the brand puts emphasis on media that involves vision rather than hearing. Tide also makes use of social media such as its Twitter and Facebook account in addition to its website. However, most of these sites cost less in terms of maintenance, so a lower budget is allocated as well.
For India, most of its advertisements are focused both on print and on TV advertisements, as both are easily accessible for the people. They also invest in outdoor media to get the attention of the masses in public areas. More people in India listen to the radio, and additional budget is needed to translate the radio ads to the different dialects or languages in India. They also began exploring social media in India, but there is less impact and less reach, so a smaller budget is allocated for it.
Tide in the US is the pioneer of synthetic detergent from 1946 when it was first released. Since then, it has been the market leader and it's main concern to keep that lead and to adapt to the other needs of its target market. It has since served generations of Americans since then, and their main concern is to meet the differing needs of the newer generation in order to maintain brand loyalty.
Tide is a somewhat recent introduction in India, and it has difficulty becoming the market leader because of the cutthroat competition, especially with its major rival, Rin. It aims to differentiate itself from other brands by being affordable and yet maintaining its quality. Tide banks more on its whitening capacities rather than its price to gain a lead over its competitors.
Tide in the US uses its established history to convince its consumers of their consistent delivery of top quality products, and stays competitive by keeping the price affordable. Most of its advertisements focuses on showcasing Tide efficiency in relation to the everyday problems of the current generation that is always on the go.
Tide in India tries to tie modern day India with traditional India, such as their campaign where female characters are shown wearing standout-white clothing in a faded tapestry, with the Tide logo at the bottom corner.
Tide in the US focuses on appealing to the emotions and attitudes of the viewers, because the quality and capacity of their product has long since been established and recognized by consumers. The goal of Tide is to anticipate the needs of the new generation that stems from their changing lifestyle as opposed to the needs of the previous generation when Tide was first introduced.
Tide in India focuses on emphasizing its superior quality over its competitors, because of the Indian tradition to focus on the whiteness of clothing to indicate cleanliness, not just the lack of stains. It also focuses on being friendlier towards skin, also due to its unique formula.
Tide's media planning can be categorized into: Above-the-line advertising (Traditional Media); Through-the-line (Internet); Below-the line advertising
While both divisions understand the power of traditional media (Above-the-line), they differ by the fact the United States company also focuses on through-the-line advertising while India's division focuses Below-the-line advertising. The American division has a strong social media presence and promote its products on the web primarily through their Facebook, Twitter, and YouTube pages. Due to cultural difference and the reality that only about 10% of the Indian population uses internet, Tide India has faced difficulties adopting through-the-line advertising. Instead the company relies on Below-the-line advertising to promote the detergent mainly through couponing and public hoardings.
- "My Tide" campaign was launched on American TV in 2011. The campaign displayed the following products: Tide Laundry detergent (Liquid with Downy and Febreze- powder) and Tidepods. The campaign was the production of Saatchi & Saatchi.
- "White Stripe" is Tide India's campaign launched in 2010 by the advertising agency Leo Burnett. The campaign displayed the following products: Tide Plus and Tide Dirt Magnet (Detergent Powder)
N.B. It is important to know that Tide India only markets detergent in the form of powder that claims to instantly remove dirt like mud. This strategic decision from the company comes from the fact dust and mud are an infrastructural problem in the country and that the majority of India's population hand-washes clothes.
- Tide USA never launched a radio ad.
- At the beginning of Tide India's campaign 1 ad was broadcast on 10 National Radio Stations
- At the beginning of its campaign, Tide USA put ads on newspaper with coupons to primarily promote the new Tide+Downy or Tide+Febreze.
- Tide India maximized the use of Print media from the start of the campaign with at least 15 different print ads that have won over 5 awards worldwide.
- Tide USA places their outdoor ads in highly populated areas with high traffic
- Tide India's outdoor advertising is less intense than in the USA. However, the company is famous for its clothesline. Although the clothesline has been present since 2007, the company included in the "White Stripe" campaign by hanging packages of Tide Plus and Tide Dirt Magnet on it.
Other tools & IMC Planning is related to the Internet, especially how Tide USA promotes through social media. It is important to inform that this section only focuses on Tide USA because Tide India does not use digital media (Through-the-line advertising) as previously mentioned.
- Tide USA's Facebook, Twitter, and YouTube's pages have existed before the launch of the "My Tide" campaign; the firm has just incorporated them into the campaign. In 2013, the company started using Vine to create seasonnal 6 seconds videos. Tide USA also sponsors athletes like Nick Goepper and fashion designers Nicholas K. and Richard Chai. It also holds the annual Festival Mode & Design.
Procter & Gamble, the parent company invest considerable amount of money in advertising; in fact, it is now spending more than a third (25%-35%) of its U.S. marketing budget on digital media. However, it has helped Tide maintain its #1 spot in the list of top 10 leading firms in the laundry detergent industry with more than twice the sales share of its competitors .
Tide India's only radio ad launched in 2010 has earned the firm and its advertising agency Leo Burnett an award at Goa festival (A cinema festival). But it their print ads that retained the most attention with more than 5 awards won worldwide and many more nominations .
Although Tide is #1 laundry detergent in the USA, the brand is still finding its grounds in India. From the launch of the "White Strap", the brand is slowly growing and went from holding 10% of the Indian market share in 2012 to 13.5% today. Tide detergents managed almost 24 per cent increase in sales at Rs 4,826.5 crore, better than its top rivals, including Hindustan Unilever.
We're going to use the slogan 'Oceans of suds' which was used in the early campaign of Tide in US. Tide was a 'wash day miracle' that promised it's cleaner than soap. We want to reproduce the success of promoting the Tide detergent and change the consumer behavior from using bar soaps to powder detergent.
About the radio, since there's totally different language spoken in different province in India. So we are going to create diffrent version of the radio commercial in diffrent language depending on the area we're marketing. And using Hindi for TV advertisement.
Nowadays in the rural area in India, only small sachets of Tide product are available instead of large SKU. Tide need to work on it's distribution system and make variable size package available to the customer. So we're going to encourage customers in the rural area to purchase the large package. First, it's more economic and the customer in the rural area are very price-sensitive and it also helps with increase the brand loyalty. The other thing about the rural area in India is people are used to use the soap bars because they don't know how to used powder detergent. So in our new campaign we're going to send sales people to the manage to show them how to use the powder and give out free samples to make them realized how efficient Tide's product can be.
P&G have already develop a program called shiksha to help with the education in the rural area in India. Since we are targeting the women in the rural area. Tide can do some PSA about the public issue in the rural area about the women right and education to make the public realize Tide is a brand actually cares about the people and women in the rural area. The people in the rural area in this moment prefer their own brand, so we have to establish our brand in an affective way.
