Tide Marketing Proposal
- 1. Tide in USA& India MABEL – MING – RAIZA – MARCIN –TALIA – FÉDIA - DHARMIK
- 2. •Flagship brand ofP&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
- 3. •Imminent and intense competition •Pricewars •Break into the market •Low market share •Powerful competition Challenges
- 4. Research Question What canbe 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
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- 9. POLITICAL FACTORS •Subject tolaws 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 accidentrate 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 ofsustainable 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
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- 17. P&G 140 Manufacturing plants in43 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
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- 19. P&G Home-based Suppliers Third Party Manufacturer in Kochi Wholesalers Statebased regional stockists Transportation chains through road & rail Retailers Big Bazaar, Hypercity, D-Mart Kirana Stores Consumer
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- 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
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- 24. INPUTS Daily interaction withmedia 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 differenceover 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
- 27. Internal Diagnosis Strengths andWeaknesses
- 28. Proctor & Gamble- Five Major Values Integrity Leadership Ownership Passion for Winning Trust
- 29. Company Structure Global Business Units Sellingand Marketing Operations Global Business Services Corporate Functions
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- 31. Selling and MarketOperations Source: P&G Global annual report 2015, page 10
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- 34. Financial Highlights (Unaudited) Source:P&G Global, annual report 2015, page 2
- 35. Net Sales -2015 Source: P&G Global, annual report 2015, page 2
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- 37. STRENGTHS Market Leader Complex Offer Strongparent 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
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- 39. STRENGTHS Very strong brandimage 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
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- 41. Strategic Decisions USA India SegmentationMiddle 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
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- 44. Price Quality Price Tide Wheel Ariel NirmaMr. White Henkel Surf Excel Quality Tide Persil Purex Sur f Source:http://www.slideshare.net/navinshan/business-analysis-12843523 slide 8 Source: http://www.slideshare.net/silvygoldy/final-project-report-mba-nit-warangal slide 23
- 45. Promotion and Communication Plan Comparisonbetween India and USA
- 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 FacetsModel 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 ofprint 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: Theyinvested $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 ofMedia/ 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 strengthenTide’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 performanceat 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
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- 56. Traditional Media TV Launch DateJuly 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 June2010 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
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- 64. Marketing Targets vs. CommunicationTargets People in the rural areas of India ages 18-64 Women in the rural areas of India ages 18-54
- 65. Communication Objectives - Newway 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 CommunicationMix 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 ofPersuasion 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 TVFree samples Radio Direct marketing in rural areas Outdoor Encourage purchasing of the SKUs
- 70. Traditional Media Television Campaign "Oceansof 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
- 72. Traditional Media Outdoor Non-Digital Outof 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 EffectivenessMeasures 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 ideaof 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
- 76. Bibliography • 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 • http://www.acs.org/content/acs/en/education/whatischemistry/landmarks/tidedetergent.html • http://www.chemweek.com/lab/Soaps-and-detergents-Consumers-remain- cautious_58079.html • http://economictimes.indiatimes.com/industry/cons-products/fmcg/pg-sales-decline-despite- focus-on-premium-products/articleshow/49330050.cms • http://marketrealist.com/2015/07/procter-gamble-brand-marketing-pioneer/
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Editor's Notes
- #51 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.
- #52 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.
- #53 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.
- #54 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.
- #55 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.
- #57 - "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.
- #58 - 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.
- #59 - 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.
- #60 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.
- #61 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 .
- #62 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 .
- #63 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.
- #71 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.
- #73 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.
- #74 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.