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Assignment on Marketing Strategy – Ariel

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3. Assignment on Marketing Strategy – Ariel
Assignment on Marketing Strategy – Ariel
Program Diploma in Business
Unit Number and Title Assignment on Marketing Strategy – Ariel
QFC Level Level 5

Introduction
The current assignment deals with the detailed study of an organization that is in the marketing of
the detergent. The detergent organization chosen for the assignment is Ariel. The assignment
consists of two parts. The first part describes about the company’s marketing audit, SWOT analysis,
competitive advantage in the form of USP, evaluating the marketing strategy and market position
relating to other organizations. Second part of the assignment gives the study about the
organization’s goals and objectives, segmentation, targeting and positioning the product in the
market, marketing strategies and marketing mix. Second part of this assignment also comprises of
the study of how to increase the market share and increase profits and brand reputation and
awareness.
Ariel: In the modern world, Ariel is considered as one of the best detergents worldwide. Ariel
introduced itself into the market in the year 1967 coming up with the combination of a compound
based on enzyme and encapsulated bleach which was an innovation of that time. In 1980’s and
1990’s, the other detergents offered whiteness and brightness to the clothes but for only two three
washes. And then in the year 1992, an innovation from Ariel came in the form of bleach free
 detergent, which brightened the clothes and prevented them from fading.  In 2001, in order to save
time, liquitabs were introduced to give unbeatable results easily and quickly. Ariel is a brand of P&G
with its headquarters in Ohio, USA. (Ariel, 2016)

Situational analysis:
Swot analysis:
Strengths:

 It is a product of one of the leading company Procter and Gamble. P&G is the parent
company of Ariel.
 In the sector of detergent, it is the worldwide leader.
 Guarantees to remove the stains. The toughest of the stains can be removed in one wash
only.
 It uses the enzyme technology.
 Sweet smells and fragrances inside detergents were first introduced by ariel.
 Holds a good market share.

Weakness:

 The tactics and strategies involved in the promotional activity is not good.
 There are regular intervals. It is not continuous. There is availability of intermittent.
 The strategies involved in pricing of the product is not proper. There are fluctuations in the
prices.
 Advertisement is also not done properly. The value in advertisement is not recalled.
 There are large number of competitors available in the market.

Opportunity:

 The detergent market is huge. It amounts to almost 5700,000,000.

 The market in the rural sector is not fully tapped. There remains a large portion in the rural
market which is untapped.
 As it holds a large part of the market share, it has the potential to very much become the
leader in the detergent market.
 Increase the awareness of the product.

Threats:

 There are other players in the detergent market that exists.

 The substitute of the product is easily available in the market, especially in the rural areas.
 There is intense competition in terms of pricing in the market.

Pestle analysis:

 This refers to how the company is effected to different factors (P- political, E- economic, S-
social, T- technological). This PEST analysis is done on ariel in UK.
 Political factors: UK operates under the system of parliament. There are opportunities for the
organizations that operate within the country. There are both positive and negative effects of the
political factors on the company.
Positive effects-

 The people in the country are greatly influenced by the inner workings.
 The government in the nation is very active, which has a direct effect on the company.
Government being active or inactive largely effects the company.
 The political situation in the country is stable. It is not disturbing. This has a positive effect on
the organization.
 The administration is further divided in the national and local level. It makes easy for the
company to easily interact with the administration.

Negative-

 The corruption is involved in the system.

 Decision making on Brexit. There is a great effect which is put upon by the Brexit on the
organization.

Economic factors: The position in terms of economy of UK is relatively higher as compared to other

countries. The economic factors are as follows:
Positive-

 The rank in terms of GDP worldwide is 5th. In Europe, it stands 2nd.

 Small markets can also make good profits as there is huge population in the country.
 Both public sectors and private sectors are there in the economy.
 The market is free i.e. there is free entry and exit of the firms.
 More FDI.

Negative-

 There was recession in the year 2008, and after that period the recovery has been slow.
 In order to provide facilities to the general public like free services and order aids, lots
of financial resources have been spent.

Social factors: In PEST analysis, social factors are very important. They are the all-round
performances. The factors are as follows:
Positive-

 There are many facilities which are provided to the public free of cost.
 The population is very dense amounting to around 65 million.
 The place is not restricted for migrants. Around 13% of the population is born outside the
country, resulting in lowering the cost of the workplace.
 The living standard of the people is high.

Negative-

 The dependency ratio is continuously rising and is high.

 The education is becoming expensive with high costs.

Technological factors: As the country is well equipped in terms of economic development, it also
has good resources for technologies. Technological factors having the effect on United Kingdom
are-
Positive-

 The skills involved in innovation are of good quality and good effects.
 Great experience and experts in IT sector.
 Strict laws and effective when concerned about the property.
 There exists competition, which is helpful is providing growth within the nation.

Negative-

 When compared to United States, the development in the field of technology is slow.

Environmental factors: Over the past many years Ariel has been able to maintain a good
reputation worldwide in the detergent sector by effectively using the renewable source of energies
and by doing sustainable development. The customers of Ariel believes that the product is eco-
friendly.
Legal factors: Different countries have different rules and regulations regarding the different
companies. Ariel needs to make strategies and decisions keeping in mind the laws, rules and
regulations of UK. (Bush, 2016)
Competitive advantage (UPS)
USP stands for unique selling propositions. The advertising campaign for the company needs to be
successful for the growth of the company and it is a theory can results or clarifies in success of the
advertisement. Every company have some sort of a unique feature which it tends to make it the
personal brand. It is also used to provide a description of a product which is similar to that product or
the product of the competitor. The USP (unique selling proposition) of Ariel is that it has been in the
market for past number of years. It is also recognized as a detergent which can be used to remove
even the toughest of the stains. It was also the first company to introduce fragrance in the
detergents.
Differential advantage:
It means the distinctive feature or advantage that a company or a product have over the product of
its competitors prevailing in the market. The consumers in the market have several options for a
particular product. Differential advantage refers to the observation by the targeted audience on the
product of a company over the products offered by the competitors. Through this advantage, a
company is able to establish leadership in the market. One of the main benefits for Ariel is the brand
symbol of Ariel detergent. It is regarded as one of the best brands worldwide in terms of detergents.
Ariel is able to establish thinking in the minds of the targeted audience that no other detergent is able
to remove the toughest of the stains better than Ariel. Responsibilities, like corporate social
responsibilities also have a vital role in expanding the competitive advantage for Ariel. (The
Economist, 2015)
Evaluation of current marketing strategy:
Growth: In the market of UK, Ariel is regarded as one of the best categorised of detergents, and is
able to position itself in such a way in the market. It is able to give stiff competition and eliminate its
competitors. It has recently introduced medium priced products to compete with the rivals who are
giving products at low prices. The main aim of these medium priced detergents to compete against
low priced detergents and equip large area in the market. To provide growth, it has been
continuously doing promotional activities and the advertisements have been put to great effect.
Sales trend:  The diagram below clearly shows that there is stiff competition in the market in the
detergent sector. The other brands in the detergent sector have equal share in the market and exist
equally in the market and top of it these competitors provide products at lower costs which serves as
a great threat to the company.

Profitability: There are many competitors in the detergent factor in the UK market and Ariel has
done exceptionally well when it comes to profitability comparison. Ariel being regarded as the best
quality product, the prices are high and the customers relates the prices of the detergent as the
quality of the detergent and yield high revenues from the sales. It is the best and leading brands in
the sector od detergents of all time. In UK the profitability for Ariel is high as compared to the
profitability of its competitors. (Ariel, 2016)
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Part 2
Segmentation targeting and positioning
Segmentation: Customer segmentation is based on the value of the customer. The identification of
the potential customer is essential for the any company. Ariel also segments its customers
accordingly. Ariel is a part of the market which is growing at a very fast rate. As the market is already
existing the segmentation of the customers became a lot easier task. Categorizing the customer
become easier when the market already existing.
The segmentation of the detergent market has two most dominant
categorization: Psychographic and Demographic segmentation. Marketing segmentation is a
strategy of dividing the customer with similar buying pattern and habits. They are a group pf people
with the similar needs and hence they buy the same products. Ariel is a single product that is
required by all segments of the society but the size of the packet they purchase also vary. The ways
to segment the market for the detergent are as follows:
Demographic segmentation: Ariel is mostly used by the young and middle aged women who wash
clothes of their family. Married women consume the product in large quantity as they wash clothes of
entire family. Washing powder is used by all the section of the society irrespective of their
occupation and educational background.
Geographic segmentation: The major usage of premium detergent is the urban area. The major
share of sales come from the large cities. In rural areas people are still dependent on local
detergents. The company sells its premium products in urban areas and low range products in rural
areas.
Psychographic segmentation: Washing powder or bars is an essential requirement for all the
people irrespective of their personality and lifestyle. The upper middle class is brand conscious so
they go for expensive products.
Behavioural segmentation: The usage of the detergent is irrespective of the behaviour of the
people. Mostly people don’t have brand loyalty when it comes to FMCG products. People are just
interested in benefits while using the FMCG goods. (Mindtools, 2016)
Targeting: Ariel is a FMCG product required in every house for the purpose of washing clothes.
Ariel targets itself in all sections of the society such as upper, middle and lower class. All class of
people need to wash their clothes. Ariel has launched small sachet for lowers section of people who
cannot buy a large packet. The major collection of Ariel is from large cities. The major targets of Ariel
are the ladies of household who wishes to keep their clothes clean and in good condition. In the
process of targeting the specific group of customer their needs and desires have to be identified.
The size and capacity of the target customer have to be identified. The size of the target market
have also to be identified. All the segments of market have to be considered. Promotion have to be
made to increase the market share of the product. Large and premium products are sold to the niche
market area while the smaller and less expensive detergents and bares are sold in the smaller
segments. Lastly the services that the company can offer to the customer have to be identified. All
the barriers affecting the targeting process of the company have to be understood. Strategies must
be made to overcome these barriers. The company must try to gain the competitive advantage.
Threats and opportunities that might affect the company have to be identified. (Anand, 2009)
Positioning: Ariel is a trusted brand detergent which is found in most of the households. The
product is best known for the satisfaction of the customer. This product is better than all the
competitors so has a brand loyalty. This product is creating an easy lifestyle for its customers. The
image of Ariel is good in the minds of the customers so the customer don’t give a second thought
before buying the product. The positioning of the product is strong in the eyes of the customers. The
brand name and its packaging also determine its sales. The positioning of the product should be
stronger in respect with its competitors. The positioning of the company must be better than the
competitors in order to attract the customers. The packaging and advertisement improve the
positioning of the company.  (Bhasin, 2016)
Recommended objective and goals (Smart): 
Smart goals and objective can be adopted by the team, organization or the individual to increase the
efficiency.
S stands for specific: All the “Wh” question are answered under this category such as who, what,
when, why, when and where. The basic goal of the business have to be identified. Who are the
investors in the business? What is the sole purpose of the business? The location of the business
have to be identified. When the business have to be started.
M starts for measurable: In this category the progress of the business is measured in the limited
time frame. How far is the goal of business have to be also estimated? The experience and
achievement of the employees is measurable.  (Pilley, 2014)
A stands for Achievable:Is this task it is to be estimated that is it practical to achieve the goal of the
company. It is very important to estimate the goal of the company. The steps in attaining the goal of
the company have to be figured. The strategies must be changed when the company is reaching
closer to attaining the goal of the company.
R stands for relevant:The goal of the company must be realistic and must be achievable. The
employees and manager must coordinate in order to make the goal of the company real. The goal
must be able to direct the company in the line of success.
T stands for timely: The goal of the company must be attained within a subscribed time frame. The
things must be kept on track and targets must be completed on time. Completing the target on time
is very essential for increasing the performance of the company.  (Bright Hub, 2016)
Recommend marketing strategies, based on the application of the marketing mix of ariel:
Ariel is the washing detergent sold under the parent brand Proctor and Gamble. The marketing
mixes of Ariel are as follows:
Product: Ariel is the premium quality of detergent mostly popular for removing the stains from the
clothes. The detergent is suitable for use in washing machine and also used for washing clothes
manually. Aril has been in demand in the market from a longer period of time. The product does not
have any bleaching action on the clothes and does not spoil he colour of the clothes. Ariel has
introduced a lot of innovation in the product like introducing fragrance and power bristles. Ariel has
been introduced in the bar and gel form to gain competitive advantage over the similar brand in the
market. (Nawaz, 2011)
Price: The price of the Ariel is bit higher than the competitors as Ariel delivers quality detergent.
Ariel is known for making clothes white in a single wash. The pricing strategy of Ariel is in
accordance with the premium range of detergents available in the market. P&G has a separate team
dedicated in deciding the price of the product. The price of the detergent is bit higher as compared to
the competitors but Ariel is dedicated tin providing the premium quality powder. Ariel has become
 favourite product of the house wives as children put a lot of stains. People are ready to pay higher
price for the detergent as it does not harm the quality of cloth. The target market of Ariel is mainly
upper middle class who can pay higher price for the quality. For lower middle class people Ariel has
launched small sachet. For the rural area Ariel has launched low price products which have
expanded the company in the rural areas too. (Mokgata, 2013)
Place: P&G introduced Ariel in UK market in 1967. The company has extended it market in many
companies in many countries like Japan, India, China, Peru and Brazil. The distribution network of
the company is very strong and it supplies its product eve in the remote areas. The incentives
provided to the distributors are also very high in the company. In every country there is a national
centre from where products are distributed to the remote areas. The company owns many
warehouses from where the product is supplied directly to the retail stores. The Ariel adopts
penetration policy for the distribution so that the detergent is also available in the remote location.
Every superstore we visit has an availability of Ariel. The company has much association with the
super stores in the urban areas so that the store adopts the placement strategy. Ariel has started its
online store and is also available on leading sites on internet.
Promotion: Ariel has a very strong promotion strategy to order to increase the market share of the
product. Ariel uses many channels for promotion of the product. Ariel employs the use of latest
technology in the making of the detergent. It becomes essential for them to promote their new
innovation to increase the brand awareness of the product.
Ariel adopts the strategy of mass marketing in order to market on a large scale. Very attractive
advertisement is made on the television and radio in order to attract the new customer. The
packaging of the product has to be made attractive in order to increase the sale of the company.
Ariel also advertise its detergent on the internet. There are many campaigns launched by P&G to
promote Ariel. (Aperio, 2016)

Conclusion
The present assignment describes the marketing strategy of the Ariel which is a flagship company of
P&G. The SWOT analysis helps in determining the strength and weakness of the company. PESTEL
analysis finds the various legal, environmental, social and technological factor attached with the
marketing of the product. Proper business strategy must be selected for promoting the product. The
competitive advantage of Ariel is gained by providing superior quality of detergent. Segmentation of
the market in done in order to target the potential customer. Positioning of the product is done to
attract the customer.
Smart objective of the company are decided by the company in order to obtain its goal. SMART
stands for specific, measurable, achievable, reliable and time-oriented. Marketing mix of the
company can be achieved by choosing the proper marketing strategy of the company. The 4P of the
company are promotion, place, price and product.
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Home » SWOT articles » SWOT Analysis of Ariel

SWOT Analysis of Ariel

March 15, 2019 By Hitesh Bhasin Tagged With: SWOT articles

Ariel is one of the strongest selling detergent brands in the world and hails
from the house of Procter & Gamble. P&G itself is known to have a slew of
detergent brands but Ariel is the strongest one in its arsenal. Ariel is known for
its excellent cleaning abilities when combined with washing machines. Hence,
many customers prefer Ariel over other brands when using washing
machines. Ariel is also known as a quick wash brand which focuses on quick
washing of clothes.

Page Contents

Strengths in the SWOT Analysis of Ariel :

Brand Quality: Ariel is known to remove the toughest of the stains and
consumers believe that. This shows high consumer trust on the product. This
is its biggest strength. Quality conscious consumers believe in the product
and buy it. Ariel is one of the billion-dollar revenue brands of Procter and
Gamble.

Market Share: Ariel is the the second largest market share holder of the
detergent category in India whereas globally it is the highest market share
holder. In India, Surf ranks higher then Ariel.

Machine Wash: The leading washing machine makers recommend Ariel than

any other brand globally. This shows the power of its product.
Strong Customer Base: Customers that have used Ariel do not go back to
any other detergent as they trust this product. This leads to an increase in the
brand equity of Ariel.

Provides Options: It is known for providing first fragrant detergent in the

market thereby pioneering in giving the customers what they want. This shows
strong innovation at Ariel’s part.

Weaknesses in the SWOT analysis of Ariel :

Cost-Sensitive Market: People tend to keep to two detergents: one for
regular clothes and another costly one for the party wear clothes. This means
they go for some regular cheap detergent for their everyday use and premium
detergent like Ariel for the party wears. As the everyday load of clothes do not
have party wear this shows a decline in the demand for the product.
These results clearly show that 99% of the respondents use or have used two
or more brands and would probably try the new variant. In fact, 72% users
would welcome the new variant as they use three or more brands.

Competition: Ariel has very strong competition from its rival Unilever product,
i.e. Surf Excel. Surf Excel has managed to capture more market share in India
with its brand positioning and good promotion strategy. Even the prices are
very competitive. Surf Excel has the max market share and Ariel trails at
second in the premium segment of the customers.

Opportunities in the SWOT analysis of Ariel :

Detergent Market: Detergent market in India is expected to grow at 7% to
9%. The per capita detergent consumption in India is around 2.7 kg per year.
The penetration level should be enhanced to enable the market to grow at the
rate of 8 to 10 % per year.
New Markets: Ariel can think of capturing new markets across the globe.
Emerging markets as well as rural areas in developed and developing
markets can help Ariel surpass the market share of other brands.

Penetrative variants: Without hampering its brand value if Ariel can come up

with low-cost detergents for the rural households with the same kind of
cleaning process then it can capture great market share.

Threats in the SWOT analysis of Ariel :

Counterfeit: There is a problem of counterfeit products in rural markets. This
decreases the prospective sales of the detergent and thereby decreasing its
revenue and profits and hampering the brand name.

Price Sensitive Markets: India is a price driven market. Similarly, there are

other markets like China which are price sensitive too. Ariel needs to be
aware of the competitive pricing and adjust itself so as to not lose any market
share.

Special detergents: Mr Muscle, Vanish and similar such detergents focus on

their extreme abilities to clean clothes better. They are only a bit more costlier
then Ariel. So in that price range, people prefer these special detergents
rather then buying Ariel regularly.

https://www.marketing91.com/swot-analysis-ariel/

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BrandGuide ›
FMCG ›

Surf Excel Matic SWOT Analysis, Competitors & USP

Posted in FMCG, Total Reads: 4813

SWOT analysis of Surf Excel Matic analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In Surf Excel Matic SWOT Analysis, the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external
factors.

SWOT Analysis is a proven management framework which enables a brand like Surf Excel
Matic to benchmark its business & performance as compared to the competitors and
industry. Surf Excel Matic is one of the leading brands in the FMCG sector. The table below
also lists the top Surf Excel Matic competitors and elaborates Surf Excel Matic market
segmentation, target group, positioning & Unique Selling Proposition (USP).

Table of Contents +

Surf Excel Matic SWOT, Competitors, Marketing STP & Brand analysis Table

Surf Excel Matic Brand Analysis

Parent Company Hindustan Unilever

Category Soap & Detergents

Sector FMCG
Tagline/ Slogan Daag achchhe hain

A premium category detergent which is customized for front-load washing

USP
machines

Surf Excel Matic STP

Segment Soap & Detergents

Urban families which use washing machines to wash clothes due to

Target Group
convenience and lack of time

As a premium category product which is used for washing clothes in washing

Positioning machines and encourages consumers to indulge in fun activities without
worrying about their clothes

Surf Excel Matic SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT)

Analysis of Surf Excel Matic. Strengths are:
1. Market leader in the washing-machine using market of washing powders
2. Premium Detergent Brand for HUL introduced in 1959
Strengths 3. Surf Excel quick wash is powered with a path-breaking technology- it
reduces water consumption and time taken for rinsing by 50%
4. Strong distribution network by HUL, which is beneficial for the product
5. Good brand visibility and advertising with new ad campaigns to keep
brand top-of-the-mind

Here are the weaknesses in the Surf Excel Matic SWOT Analysis:
1. Slightly Higher price prevents it from reaching to the mass of customers
Weaknesses
2. Product awareness not high among rural markets
3. Legal issues due to brand wars

Following are the Opportunities in Surf Excel Matic SWOT Analysis:

1. Increase its market share in Tier-1 by promotions, both traditional & non-
Opportunities
traditional
2. Introduce and promote a top-load washing-machine compatible variant
 The threats in the SWOT Analysis of Surf Excel Matic are as mentioned:
Threats 1. Low profit margins in detergent sector
2.Threat from existing and new players in the market

Surf Excel Matic Competition

Below are the top 2 Surf Excel Matic competitors:

Competitors 1. Ariel Complete Matic
2. Ariel Oxy Blu Matic

The brandguide table above concludes the Surf Excel Matic SWOT analysis along with its
marketing and brand parameters.

Similar analysis has also been done for the competitors of the company belonging to the
same category, sector or industry. Browse marketing analysis of more brands and
companies similar to Surf Excel Matic. The BrandGuide section covers SWOT Analysis, USP,
STP & Competition of more than 6000 brands from over 20 categories. This SWOT and
marketing analysis has been researched & authored by our BrandGuide Research
Team members.
https://www.mbaskool.com/brandguide/fmcg/5802-surf-excel-matic.html

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 Laundry Care and Detergents
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 Laundry Detergent Market in India (2018-2023)

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
 Laundry Detergent Market in India (2018-2023)
 ID: 4757744 

 Report 

 March 2019
 

 Region: India 

 Netscribes (India) Pvt Ltd

 DESCRIPTION

 TABLE OF CONTENTS

 SAMPLES

 COMPANIES MENTIONED
FEATURED COMPANIES
 Fena Pvt. Ltd.
 Hindustan Unilever Ltd.
 Jyothy Laboratories Ltd.
 Nirma Ltd.
 Patanjali Ayurved
 MORE
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Market insights:
The India laundry detergent market is anticipated to expand at a compound annual growth rate (CAGR) of
~5% during the 2018-2023 period, owing to rising consumer demand. Based on type, hand wash detergents
constitute ~82% of the market share, while machine wash detergents hold the remaining of it. The demand
for hand wash detergents is high, since only ~33% of the population use washing machines and require
machine-wash detergents, and the rest of the population use hand-wash detergents for washing clothes.

Market segment insights:

Among the major laundry detergent companies like Hindustan Unilever Ltd. (HUL), Rohit Surfactants Pvt. Ltd.
(RSPL), and Proctor and Gamble Home Products Ltd. (P&G) dominate the market, owing to high customer
satisfaction both at national and regional levels. Apart from these players, Nirma, Jyothy Laboratories, Fena,
and Reckitt Benckiser also operate in the market.

Among the major laundry detergent brands, Ghari had the largest market share during the period of 2014-
2017, followed by Surf, and Wheel. Owing to its affordable price, Ghari detergent is the most preferred
 among the masses, and secures a high market share. On the other hand, brands like Surf and Wheel suffice
demands of the middle-market and premium consumers.

Market drivers:
The growth in market demand for washing machines has recently expanded at an impressive rate in India.
The growing penetration of washing machines is directly increasing the demand for machine-wash laundry
detergents. Moreover, the purchasing power of Indians has increased, which is encouraging many players in
the detergent market to expand their network and upturn product penetration, especially in the rural
market.

Market challenges:
Based on product pricing, laundry detergent manufacturers in India often face stiff competition. In addition,
there is not much scope of product differentiation in the sector. Thereby, product differentiation, and high
competition act as deterrents to the growth for the market players.

Companies covered:

 Fena Pvt. Ltd.

 Godrej Consumer Products Ltd.
 Hindustan Unilever Ltd.
 Jyothy Laboratories Ltd.
 Nirma Ltd.
 Patanjali Ayurved
 Procter & Gamble Home Products Ltd.
 Reckitt Benckiser (India) Ltd.
 Rohit Surfactants Pvt. Ltd.
Note: Product cover images may vary from those shown

FEATURED COMPANIES
 Fena Pvt. Ltd.
 Hindustan Unilever Ltd.
 Jyothy Laboratories Ltd.
 Nirma Ltd.
 Patanjali Ayurved

https://www.researchandmarkets.com/research/hnr2ff/indias_laundry?w=4