ariel global marketing strategy

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Ryan Hickey Student number: 11515637 Christina Donnelly , Mn313 International Marketing Hickey [Pick the date]

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Page 1: Ariel Global Marketing Strategy

Student number: 11515637

Christina Donnelly , Mn313 International Marketing

Hickey[Pick the date]

Page 2: Ariel Global Marketing Strategy
Page 3: Ariel Global Marketing Strategy

l

Team PhoenixMn313 International Marketing:

Date: 14/11/2013

Background:

Ariel is a marketing line of washing detergents made by P&G. As a brand it supplies various types of washing detergents.

Ariel encourages customers to conduct washes in cold water. ‘By washing your clothes at 30°C, you could save over 30%

of your energy consumption ‘, resulting in less energy consumption, shorter wash cycles, less impact on environment as

well as benefits for the textile itself: (Ariel, 2013) Ariel’s current target market are “people who claim to be environmentally

friendly but accept no compromise on performance and price” (Donnelly, 2013). P&G’s primary objective is to convert 70%

of wash loads into cold water by 2020. In order to do this they need to change consumer perception on washing clothes in

cold water, as currently the majority of consumers believe washing at higher temperatures is more effective ‘Although

many people think that hot water gets clothes cleaner, it can actually be the worst choice for certain types of stains’

(Bchydro, 2013). They can achieve this by creating a global marketing strategy which focuses on product packaging, in

store campaigns and social media. P&G must try to educate the consumer more on how beneficial it is washing in cold

water (30 degrees) not only to them themselves economically , but also to the to the environment. The y must do this by

directly connecting the environmental benefits to the economic benefits; otherwise consumers will not care enough to

change their habits.

Recommendations:In order to reach P&G’s/ Ariel’s goal of a 70% conversion rate to cold washes, these are the recommendations we suggest:

1. Target people who claim to be environmentally friendly but accept no compromise on performance or price specifically the Millennial Generation beginning birth years from the early 1980s to the early 2000s

2. Begin a marketing campaign that educates consumers on the benefits of using Ariel; show comparisons of how washing in hot water can affect the environment and the consumers economically compared to using cold water.

3. Design innovative packaging that represents Ariel as an environmentally friendly product. This could be achieved by using less packaging, increase its recyclable content; reduce the amount of environmentally harmful components. Minimize the resources needed to make and transport their products.

4. P&G need utilize their social media outlets within the global marketing strategy. With over 2 million likes on Facebook and 62,720 followers on Twitter worldwide. This is an opportunity to increase brand awareness as social media advertising “so far, it only represents 1% to 10% of ad budgets for a wide majority of advertisers”. There's significant opportunity for that share to grow”, (BI Intelligence, 2013).

Global Marketing Strategy

Team Members:

Page 4: Ariel Global Marketing Strategy

1. Targeting millennial generation— as they are moving towards maturity, they become the most influential target market. They are now formulating their own habits, opinions and concerns. In 2010 this generation made up 29% of the world population estimated at 2,379,166 billion people (United Nations, 2012) By marketing towards them as they age and begin families of their own, what is currently seen as a “new” concept of washing clothes in cold water will be passed on resulting in the establishment of a new norm as time goes on, allowing P&G to meet its goal of a 70% conversion rate by year 2020 and continuous growth beyond 2020.

2. To make the market aware of both the environmental and economic benefits of washing clothes in cold water. Achievable by initiating a marketing campaign accompanied by various in store and television ad campaigns that make the consumer aware of the benefits of using Ariel. Showing that using Ariel will not only help save on electrical bills “Latest tests show that washing at 30°C could save you on average between £9 and £17 per year compared with washing at 40°C”, (Which, 2013), but also help conserve the earth's energy supply according to the U.S. Department of Energy, "90 percent of the energy used for washing clothes is for heating the water. This tactic will appeal to a vast majority of this consumer market as they are extremely price conscious.

3. Designing innovative packaging for Ariel’s products that represents the brand as being environmentally friendly. Continue with the reduction of packaging like that made in Turkey; P&G have already “designed a new process that packed Ariel in large, seal tight polyethylene bags. Entirely recyclable, these bags require 80% less packaging material than boxes”, (P&G, 2013). Incorporating this on a global scale it will minimize the processes and resources needed to make and transport Ariel products around the world. To date this form of packaging “takes up to 20% less space during transport and storage, and help speed up the packaging line”, (P&G, 2013).

4. P&G need to utilize their social media sites in this global marketing strategy due to its potential audience. For example on Facebook “we know that over 1 billion people worldwide are on the platform…In the U.S., 83% of 18 to 29-year-olds who use the Internet are on it”, (Smith, 2013). These figures suggest a potentially massive market that has not been taken advantage of Twitter are also as important with over 500 million users, with the correct use of a Twitter page Ariel can provide a social media platform to get people talking about Ariel products as they currently to date have in the region of 63 thousand followers.

Rationale:

Page 5: Ariel Global Marketing Strategy

Focus target market on The Millennial Generation

Initiate marketing campaign that educates consumers on the benefits of using Ariel. Showing both Economic and Environmental factors

Continue R&D in innovating packaging and transport processes that represents Ariel as an environmentally friendly product.

Utilize the full potential of their social media outlets within the global marketing strategy.

2020

USERS OF ARIEL

BRAND EQUIY

2 million likes on Faceboo

83% of 18 to 29-year-oldsonline

Millennials = 29% of the world population

Ariel uses80% less packaging

Page 6: Ariel Global Marketing Strategy

S.W.O.T. Analysis

Strengths:

Major strength is that Ariel is a P&G product. (World leader in detergent segment, global serving-supplying their products to 180 countries worldwide-strong, reliable brand)

The Ariel brand is very diverse and caters to suit a lot of consumer’s needs. For instance they cater for people who have sensitive skin or for people who require a bleach-free detergent.

Known for acting in an environmentally and socially responsible way. (Creating compact detergents- reducing packaging, product measurements, size of transportation trucks etc.)

Weaknesses:

Very competitive market various lower priced products available in the market ,leading brands- Persil, Fairy, Bold, Surf, and Daisy (Tesco own brand).

Lack of control of the market: regulatory bodies can ban a substance or place a quota on a compound. Example of this The European Commission stated from June 30th 2013 “detergents must not be placed on the market if the total content of phosphorus is equal to or greater than 0.5 grams” (European Commission, 2012)

Marketing campaigns contain ‘greenwash’. Greenwash is when an organization tries to promote the perception that its products and policies are environmentally friendly. They use Fluffy language, words or terms with no clear meaning, e.g. ‘eco-friendly, Suggestive pictures green images that indicate a (un-justified) green impact and Irrelevant claims (Futerra, 2013)

Opportunities:

Ariel has a strong opportunity in strengthening their presence on social media

Some countries don’t have easy access to running hot water

Increased awareness of how much money consumers can save by washing at 30⁰ between approximately €7 and €20 per year compared with washing at 40°C(Which, 2013)

Page 7: Ariel Global Marketing Strategy

S.W.O.T. Analysis

Strengths:

Major strength is that Ariel is a P&G product. (World leader in detergent segment, global serving-supplying their products to 180 countries worldwide-strong, reliable brand)

The Ariel brand is very diverse and caters to suit a lot of consumer’s needs. For instance they cater for people who have sensitive skin or for people who require a bleach-free detergent.

Known for acting in an environmentally and socially responsible way. (Creating compact detergents- reducing packaging, product measurements, size of transportation trucks etc.)

Weaknesses:

Very competitive market various lower priced products available in the market ,leading brands- Persil, Fairy, Bold, Surf, and Daisy (Tesco own brand).

Lack of control of the market: regulatory bodies can ban a substance or place a quota on a compound. Example of this The European Commission stated from June 30th 2013 “detergents must not be placed on the market if the total content of phosphorus is equal to or greater than 0.5 grams” (European Commission, 2012)

Marketing campaigns contain ‘greenwash’. Greenwash is when an organization tries to promote the perception that its products and policies are environmentally friendly. They use Fluffy language, words or terms with no clear meaning, e.g. ‘eco-friendly, Suggestive pictures green images that indicate a (un-justified) green impact and Irrelevant claims (Futerra, 2013)

Opportunities:

Ariel has a strong opportunity in strengthening their presence on social media

Some countries don’t have easy access to running hot water

Increased awareness of how much money consumers can save by washing at 30⁰ between approximately €7 and €20 per year compared with washing at 40°C(Which, 2013)

Threats:

Shelf-position- Ariel products located just below eye level on the shelves in TESCO supermarkets. Concerns as consumers are attracted to products on eye level.

Price – Ariel washing detergent is seen as a premium detergent and in the higher price range of the market.

The price comparison was based on a (1.75 kg – 2kg) box of washing powder and a box of biological liquitabs (20 packs) Highlighted in green are the biggest threats:

Washing powder: Liquitabs:

1. Persil €9.79 Ariel €9.99

2. Fairy €9.69 Persil (35pack) €9.00

3. Bold €9.00 Bold €8.75

4. Ariel €8.81 Fairy €7.00

5. Surf €5.00 Surf (10 pack) €5.00

6. Daisy €3.05 Daisy €4.00

Page 8: Ariel Global Marketing Strategy

S.W.O.T. Analysis

Strengths:

A major strength of Tide Coldwater is that it is a P&G product. P&G has a global presence in 180 countries, and has provided 175 years of service to the world

Tide Coldwater is specially formulated for cold water

Requires less detergent to wash clothes, creating a longer life span

Weaknesses:

Tide Coldwater are not utilizing the promotional mix effectively

Tide Coldwater as an individual product is not widely promoted or advertised in the US

Their promotions fail to stress the importance as to why using Tide Coldwater is beneficial economically and environmentally.

Opportunities:

Tide Coldwater like Ariel also has a strong opportunity in strengthening their presence on social media

Some countries don’t have easy access to running hot water

Increasing the energy awareness of the product

Threats:

Many consumer in the US market are not buying into the idea of cold water washes in favour of hot water (hygiene assumptions)

There are many generic brands or ‘own’ brand products available

Due to the lack of consumer spending (worldwide recession) consumers may turn to cheaper alternatives e.g. e Gain, a lower priced P&G detergent

Page 9: Ariel Global Marketing Strategy

Target Marketing Recommendations:

Republic of Ireland:

Target market segment - The target market that we recommend P&G direct there global marketing strategy towards are the Millennial Generation, or those between the ages of 16-34 (Barton et. al, 2012, p 3)

Main Positioning Benefits - Ariel’s objective should be attempting to create a distinct impression in the customer's mind with regard to both the savings to be made financially by washing in cold water (recommended 30⁰) with the added incentive of contributing to creating a sustainable environment by doing so. “Washing clothes at 30C uses around 40pc less electricity over a year than washing at higher temperatures, saving around £13 annually on energy bills”, (Christie and Winch ,2013). P&G could see promising results by utilizing social media. With a combined total of over 1.5 million likes on Facebook between P&G and Ariel pages and over 60 thousand followers on Twitter.

Value proposition- Ariel provides a premium detergent for Millennials who want to be environmentally friendly but reluctant to compromise on performance and price.

Ariel products offer brilliant cleaning performance even at low temperatures (15⁰- 30⁰), working on a wide variety of stains. At Ariel we promote washing at low temperatures as it not only lowers our C02 emissions while doing our laundry, but also our electrical bills where savings of up to €20 can be made.

Key benefits: Ariel Excel Gel allows you to wash clothes hygienically and effectively at 15 degrees

Washing clothes at 30C saves approximately £13 annually on energy bills”, By washing clothes at 30 ⁰ you can reduce your washing machine's energy consumption by up to 40%

Page 10: Ariel Global Marketing Strategy

Segment profile: Millennial Generation

The marketing segment P&G need to direct there global marketing strategy for Ariel tare the Millennial Generation. In 2010 this generation made up 29% of the world population, (United Nations, 2012). When focusing our attention to Ireland, figures show that in 2011 this generation made up approximately 79% of the Irish population, (CSO, 2013).

Typical Consumer: Name: Siobhan Flanagan

Age: 28

Marital Status: Married

Children: 1

Target Marketing Recommendations:

Price

Promoting Cold water washing

High

High

Low

Low

Page 11: Ariel Global Marketing Strategy

Target Marketing Recommendations:

Segment profile: Millennial Generation

The marketing segment P&G need to direct there global marketing strategy for Tide Coldwater in the U.S. is the millennial age group, or those between the ages of 16-34 (Barton et, al, 2012). When focusing our attention on the US, this generation represents 86 million people 27% of the U.S. population (Doherty, 2013).

Typical Consumer: Name: Millennial Generation

Page 12: Ariel Global Marketing Strategy

Segment profile: Millennial Generation

The marketing segment P&G need to direct there global marketing strategy for Tide Coldwater in the U.S. is the millennial age group, or those between the ages of 16-34 (Barton et, al, 2012). When focusing our attention on the US, this generation represents 86 million people 27% of the U.S. population (Doherty, 2013).

Typical Consumer: Name: Millennial Generation

Low

LowHigh

High

Promoting Cold water washing

Price

Marketing Mix:Product:Outline potential to save customers energy by washing in cold water. The core benefits are its cleaning power in cold water. The colour of packaging

Page 13: Ariel Global Marketing Strategy

+

Marketing Mix:Product:Outline potential to save customers energy by washing in cold water. The core benefits are its cleaning power in cold water. The colour of packaging

Conclusion:

This report covers various stages of the global marketing strategy needed to achieve the goal of converting 70% of all washes to cold water by 2020.

Including a S.W.O.T analysis of Ariel products, target market and marketing mix. We outline the potential Ariel has in capitalizing on the millennial

Page 14: Ariel Global Marketing Strategy

References/ Bibliography:1. Ariel. (2013). Ariel Sustainable Commitment. Available: http://www.ariel.co.uk/AboutAriel/Ariel_Sustainable_Commitment.aspx. Last accessed 08/11/2013.

Conclusion:

This report covers various stages of the global marketing strategy needed to achieve the goal of converting 70% of all washes to cold water by 2020.

Including a S.W.O.T analysis of Ariel products, target market and marketing mix. We outline the potential Ariel has in capitalizing on the millennial

Page 15: Ariel Global Marketing Strategy

2. Barton, C., Fromm, J., Egan, C. The Millennial Consumer Debunking Stereotypes. The Boston Consulting Group, pgs. 3-7

3. bchydro.com. (2013). Wash in cold, and your wallet will thank you. Available: http://www.bchydro.com/news/conservation/2013/wash-in-cold-water.html. Last accessed 09/11/2013.

4. BUSINESS INSIDER. (2013). Why Social Media Advertising Is Set To Explode Read more: http://www.businessinsider.com/social-media-advertising-set-to-explode-. Available: http://www.businessinsider.com/social-media-advertising-set-

to-explode-2013-7. Last accessed 07/11/2013.

5. cleanorganizedfamilyhome.com. (2013). Laundry Wash Temperature: Hot, Warm or Cold?. Available: http://www.clean-organized-family-home.com/laundry-temperature.html#sthash.lJirJ4et.lZWrK0lw.dpbs. Last accessed 10/11/2013.

6. Central Statistics Office. (2013). Population by Age 2011. Available: http://www.cso.ie/Quicktables/GetQuickTables.aspx?FileName=CNA15.asp&TableName=Population+by+Age+2011&StatisticalProduct=DB_CN. Last accessed

10/11/2013.

7. Christie,S and Winch, J. (2013). 'Is it really better to wash clothes at 30C?'.Available: http://www.telegraph.co.uk/finance/personalfinance/consumertips/10187880/Is-it-really-cheaper-to-wash-clothes-at-30C-rather-than-60C.html. Last

8. consumersearch.com. (2012). Green Laundry Detergents. Available: http://www.consumersearch.com/laundry-detergent/green-laundry-detergents. Last accessed 12/11/2013.

9. Doherty, J. (2013). On the Rise. Available: http://online.barrons.com/article/SB50001424052748703889404578440972842742076.html#articleTabs_article%3D1. Last accessed 08/11/2013.

10. Forte, C. (2013). The Biggest Mistakes You Make Using Your Washing Machine Read more: Mistakes to Avoid When Using Your Washing Machine - What Not To Do When Doing The Laundry - Good Housekeeping Follow us:

@goodhous. Available: http://www.goodhousekeeping.com/product-reviews/research-institute/biggest-washing-machine-mistakes?click=main_sr. Last accessed 10/11/2013.

11. Fromm, J , Lindell, C and Decker, L. (2013). AMERICAN MILLENNIALS: Deciphering the Enigma Generation. Available: http://barkley.s3.amazonaws.com/barkleyus/AmericanMillennials.pdf. Last accessed 10/11/2013.

12. Health and Safety Authority . (2013). Detergent Regulations. Available: http://www.hsa.ie/eng/Your_Industry/Chemicals/Detergents/Detergent_Regulations_apr.html. Last accessed 11/11/2013.

13. Honigman, B. How Millennials are Shopping: 20 Interesting Statistics & Figures. (2013) Medium: How to Succeed. retrieved Oct 7 2013 https://medium.com/how-to-succeed/c76"1231"b

14. Marks & Spencer. (2013). Keep clothes clean at 30°. Available: http://plana.marksandspencer.com/you-can-do/climate-change/15/. Last accessed 11/11/2013.

15. P&G 2012 Sustainablity Overview. (2012) P&G. retrieved Oct 7 2013. http://www.pg.com/en_US/downloads/sustainability/reports/PG_2012_Sustainability_Overview.pdf

16. Smith, C. (2013). 7 Statistics About Facebook Users That Reveal Why It's Such A Powerful Marketing Platform Read more: http://www.businessinsider.com/a-primer-on-facebook-demographics-2013-10#ixzz2kSyUNV1B. Available:

http://www.businessinsider.com/a-primer-on-facebook-demographics-2013-10. Last accessed 11/11/2013.

17. thegreenguide.com. (2013). Wet Cleaning and Dry Cleaning Alternatives.Available: http://www.thegreenguide.com/wet-cleaning-and-dry-cleaning-alternatives. Last accessed 09/11/2013

18. Tide. (2013). Get brilliant clean in cold water.. Available: http://www.tide.com/en-US/product/tide-coldwater.jspx. Last accessed 08/11/2013.

19. Trout, J., (1969) ""Positioning" is a game people play in today’s me-too market place", Industrial Marketing, Vol.54, No.6, (June 1969), pp. 51–55

20. US Department of Energy. (2013). ENERGY USAGE. Available: http://energy.gov/science-innovation/energy-usage. Last accessed 10/11/2013.

21. United Nations Department of Economic and Social Affairs. (2013). World Population Prospects: The 2012 Revision. Available: http://esa.un.org/wpp/Excel-Data/population.htm. Last accessed 09/11/2013. accessed 10/11/2013.

22. Which. (2013). Laundry detergent Washing at 30ºC. Available: http://www.which.co.uk/home-and-garden/laundry-and-cleaning/reviews-ns/laundry-detergent/washing-at-30c/. Last accessed 09/11/2013.

23. Winslow, T. (2013). Turning The Tide. Available: http://www.tide.com/en-US/product/tide-coldwater.jspx. Last accessed 10/11/2013.

24. Donnelly, C. (2013). International Coursework Assignment. Available: https://2014.moodle.nuim.ie/pluginfile.php/74964/mod_resource/content/1/Coursework%20Scenario%20PG%2001.10.13.pdf. Last accessed 13/11/2013.

Team experience:

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When first being tasked with thought of partaking in an international assignment I must admit I was a little daunted, largely due to the fact that I had never experienced anything like this to date. Nevertheless I was also excited by the idea and grasped the opportunity with both hands when asked would I like to be part of an international team, despite a little convincing for my other team members. Our first meeting was merely a ‘meet and greet’, just an opportunity to get to know one another , names, ages, hobbies etc. this was conducted on Webex which at first proved a little difficult with a few minor technical problem but we soon got the hang of it and meeting where then taking place without a hitch. We corresponded at total of 5 times with our American team mates, the most difficult part about meeting was simply arranging a time that suited most. Not only had we to take timetables, jobs, and other commitments into consideration but also a 7 hour time difference which at time proved very difficult and slightly frustrating. However I feel that this has given me a platform as to what working in a real international marketing team is like. Another issue that arouse within our team was lack of information, looking back I perhaps did not take full advantage of the information accessible to out American team member such as real life market research. Many of our meeting ended with both parties struggling to find more information on the spot, better preparation I feel was needed on both my behalf and on the behalf of my other team members. We did not utilize the time we spent together and often the topic of conversation drifted from what we set out to accomplish. Despite this I will reiterate my point that overall I found this to be a very positive experience , it shown me what possibly to do and more importantly what not to do the next time I find myself work in an international team or any team for that matter. I only hope that my team mate’s experience of working together was as pleasant and appreciated as my own.

Ryan Hickey