Promotional Strategy of Tide - Essay Example

?Running head: Promotional StratEGY Promotional Strategy of Tide [Supervisor’s of the Product: Tide is a laundry detergent and it is manufactured by the company Procter & Gamble. Tide has 39 different product line extensions that are targeted to different sets of consumers. It was the first product of United States that was nationally packaged in blue, white and red color. It has been present in the market since 1949 and the logo of the product was modified in its fiftieth anniversary and still remains the same (Tide). Product Review: Following table represents the quantity and price of a Tide ‘High Efficiency plus Downy’ detergent. The current tagline for this product is, ‘Clean you can see. Softness you can feel’. The 100 oz of Tide has a huge market share and demand for 214 oz is low (Tide). Quantity Sales Price 50 oz $8.00 100 oz $15.00 214 oz $23.99 Goals and objectives of the Company: The Goals of the company is to provide the World with the branded and superior quality products that would improve the lives of the consumers for the future generation to come. This will result in the increase in sales and it will create the value for the shareholders (Tide). Goals of Promotional campaign strategy: The goals of promotional campaign strategy would be to integrate all the characteristics that are found in the different brands of tide detergent and merge them into a single product and communicate that this particular brand holds every features that are found in various product lines of Tide which would fulfill the desires of the customers. This promotional campaign would synchronize with the company’s goals which say that we have to improve the lives of future generation. Tide Perfect Secondary Analysis of Competition: Competitors: Tide is far ahead dominating the detergent industry in United States with a major market share of 41.3 percent. The market share is more than four times than the second number brand exists in the market. There are so many brands that are trailing behind the competition that does not deserved to be called a number 2 brand. Snow white, All, Purex, Arm & Hammer, Etra and Wisk are the detergents with no more than 9 percent of market share each (Packaged facts). Procter & Gamble is the leading company in terms of sales in the United States and the total products of Tide detergent makes up to $2000 Million dollar sales which is far ahead than its competitors (Packaged facts). Particularly in Liquid detergents, Tide still leads with a handful of margin than its competitors but there have been reported a -2.16 percent decrease in the sales. One of the reasons of this decrease in the sale percentage is because other brands have spent much more in the advertising sector than Tide (Branna). Customers: The product will be targeted to the group of customers that wants all of the features of a detergent in a single product. These are the customers who would want to clean their clothes in a perfectly manner. They would want to get rid of the tough stains, dingy white and would want to eliminate the odor as well. The price of the product would remain slightly higher than the rest of the products of Tide, so the customers that have a slightly higher standard of living would be able to purchase it. Promotional Strategy: There are various promotional strategies to promote the brand ‘Tide Perfect’. The product is to be communicated to the right people and with a suitable strategy to make a product a success. ‘All in one’ strategy: The promotional strategy would be based on the integration of the elements present in the different brands of Tide detergent. To come up with a product ‘Tide Perfect’ that would have all the ingredients that is useful for all family members. It is to portray that this brand is complete in various aspects. It will also be conveyed in the message that Tide removes stains specifically better than its competitors because many people are attracted towards a detergent if it has better cleaning. If a detergent does not have a good cleaning then it would be considered as an ordinary stain remover detergent. It has been found through research that ‘Tide boost original’ has the highest capability than the other detergents in removing the stains effectively, which is shown in the chart below. In launching the ‘Tide Perfect’, the characteristic of ‘Tide boost original’ would be reflected in the promotional campaign (Packaged facts). Sweep 360: ‘Tide Perfect’ would have ingredients that would be used in cleaning the floors and will be used to wash the cars as well, this is the reason why this strategy has been named ‘Sweep 360’ because it will not only work as a detergent but it will be used for different purposes of cleaning. Go Green: The other type of promotional strategy would highlight the characteristic that the product is ‘Environmentally friendly’. People are getting awareness about the green environment and they support those companies that do the same. They seem to have a belonging towards those firms that care about the environment and prevent pollution (Team Treehugger HTGG). The wastes of the product would not be harmful for the environment and would not cause any erection to the hands of the people. Eco-products have become the global trend and people have started giving value to it. The following graph shows the detergent products that have the highest percentage of acid in their ingredient that can damage the environment due to their waste materials. The highest percentage of acid is found in ‘All’ detergent This is the reason why it is necessary to construct a promotional campaign and to raise awareness that ‘Tide Perfect’ cares for the environment and it is less acidic in nature than the rest of the brands (Packaged facts). Price undercutting strategy: In this strategy Tide should cut the price of ‘Tide Perfect’ in order to penetrate in the market but it should increase the volume so as to compensate with the loss. By applying this strategy the measurement of the market success will be based on the unit sales volume rather than dollar sales volume which will ultimately create higher demand. Promotional strategy on Price: Price to Distributors: The Tide Company should keep in mind the cost of the product, competitor’s price of the product and the target revenue that a company wants to achieve while providing them the products. Prices to Retailers: Certain amounts of discount should be given to the retailers and the company should charge different prices to different sets of retailers depending on their status of the shop been registered or unregistered. The prices should also be set on the basis of the product and its size. As the size of the product increases, more discounts should be given to the retailers. Media Mix: Tide would be more focused in advertising through Television commercial and online advertisements. The following graph shows the percentage of the viewers that spent most of their time viewing a media channel and are influenced by the advertisements. This data belongs to the people in United States and this proves that the majority of the people who surf internet are mostly influenced by the advertisements. The online advertisements viewers has been increasing since 2006 and most of the organizations are targeting the group of customers through the same channel. This has been proved in the following graph which shows the number of viewers who watch advertisements and videos through internet (Packaged facts). The number of US viewers of advertisements through internet has been increased with the passage of time. Tide should adopt a strategy of targeting its customers through internet and should allocate more resources for this media channel. By the end of 2012 it is reported that the online viewers would pass two hundred million landmark and it is expected to be doubled in future (Allen and Hill). Target Audience The target audience would include adults mostly the people who spend most of their time working outside and they have no time in choosing a particular detergent that has a specific capability. This is the reason why this detergent has all the features that are present individually in each detergent. We will capture this audience through television commercials and online advertisements. Through a survey it has been discovered that people the most appropriate way to capture this audience is to show the commercial advertisement in the news channel because the number of adult viewers exceeds with respect to the other forms of channel (Packaged facts). This graph shows that 61% of the US citizens watch news channels so the best to market this audience is by marketing on those media channels and most of these channels are viewed by the adults, which confirm that this is the suitable media to aim at. Budget: Advertising Expense (9% of sales) 1,236,599,000*9% $111,293,290 Go Green (20% of advertising Expense) $22,258,658 Sweep 360 (15% of advertising Expense) $16,693,993 All in one (50% of advertising Expense) $55,646,645 The detergent market of US has combined revenue of about $27 Billion in which Tide constitutes 41 percent of the market share. It has been reported that top 50 companies of detergent constitutes over 90 percent of the revenues. This advertising budget is distributed among the print advertising and television commercials and advertisement on the Internet. The target would be to increase the market share from 41% to 45% (Packaged facts). Measuring Success: The success would be measured by the appreciation of the product and the positive responses rather than the unit number of sales because customer satisfaction accounts more than the profitability of the company and if customers are satisfied then it is the proof that the company understands the need of the customers. A growing number of customer-base will tell how effectively we are reaching our target market. The long-term survival of the company is based on the reach of the customer base. Profitability can be accounted for measuring success, if the money is covering all the debt and the operating expenses and plus if it is accommodating in the revenues then the business is said to be in the profit (Giertz). Works Cited Allen, R and A Hill. The television studies reader. London: Routledge, 2004. Branna, T. "Coming clean." 10 February 2010. happi household and personal product industry. 14 March 2012 . Giertz, E. Measuring success: identifying performance indicators. New York: Cengage Learning, 2000. Packaged facts. "The U.S. Laundry Care Market." 01 June 2001. http://www.packagedfacts.com. 15 March 2012 . Team Treehugger HTGG. "How to Go Green: Why to Go Green." 09 February 2007. Treehugger a discovery Company. 14 March 2012 . Tide. "My Tide is: Tide HE plus a touch of Downy." 2011. http://www.tide.com. 15 March 2012 . Read More