MARKETING MIX OF ARIEL

PRODUCT PRICE

 Ariel is one of the most popular

 Ariel follows the premium
detergent brands having a strong
pricing strategy in its
presence under the P&G brand.
marketing mix whose products
 . Ariel products has become one
cost is a little more than the
of the most preferred detergent
product’s price of its
which was launched with a
competitors.
combination of enzymes and
 Even with the high price it is
bleach without damaging the
one of the best choice for the
clothes.
consumers because of its ability
 Ariel detergent launched
to wash off stains in one time.
powder, bars and liquid in it
 This quality products attract the
marketing mix product portfolio
house-wives who are the
for the convenient usage. With
decision makers especially for
the increase in the usage of
washing small children clothes
washing machines Ariel
who generally gets lots of stains
detergent was in more demand
on their clothes.
and it has been keep coming up
 Main target segment for Ariel is
with new innovative products
the upper middle class who are
like bleach free chemical,
ready to pay a little more price
fragrance detergent, increasing
with the assurance of not
brightness and many more.
damaging their clothes. For the
 Few of the top products
lower middle class Ariel has
launched by Ariel are Ariel,
also launched products like
Ariel Matic front load, Ariel
small sachet.
Matic top load, Ariel 24 hour’s
fresh. Ariel always come up
with the products keeping in
mind that the clothes are like a
memento for the users so it is
vital to preserve them.
 Ariel drives its products
according to the user’s needs.
As with the early 21st century
when there was time shortage
among women because of the
life’s pace so it launched a
product with the quickest and
easiest clean. Even it launched a
 product to retain colors by
coming up with a bleach free
chemical compound. Ariel 3 in
1 pods is one of the latest
innovation launched in 2012
keeping all the 3 factors of
removing stains, cleaning and
increasing or retaining the
brightness of clothes as new
clothes.
 In order to capture the rural
market Ariel also launched a
product like Ariel super soaker
for the moderate income
segment which was mid-priced
as compare to its other premium PROMOTION
priced products.
 To pace up with its competitors
PLACE Ariel has always done a very
strong campaign for its all new
 Ariel, owing to the strong innovative products.
distribution of P&G, has a wide  For mass communication it has
global distribution. used traditional methods like
 After being launched in UK advertising in newspaper,
Ariel extended its empire into hoardings, boards, TV, radio
various other countries like etc.
India, Russia, France, Japan etc.  With the digital era Ariel also
Within each and every country uses internet in order to launch
Ariel has maintained a very various campaigns with catch
strong distribution channel. taglines. Ariel’s latest campaign
 There are storage house in “Share the load” is a huge
every country which helps in success which was tagged with a
distributing products in remote social message that intends to
areas. motivate men in helping their
 Ariel also provides a very good wives in the household work.
initiative to distributors in order  This campaign was even ranked
to increase its sales at a fast rate. as a top campaign of this year
Storage house also helps in by WARC 100. For various
connecting with retailers which campaigns Ariel keep in touch
helps Ariel to make its product with the popular people like
reach out at every shop. Bollywood celebrities in India
 In order to further multiply its who can help in creating a wider
impact among audience.
 sales Ariel has also increased  Ariel also promoted its products
the no. of wholesalers in Tier 2 by giving various discount
and Tier 3 cities and also has offers and also pitching with a
done different tie ups with retail new advertisement according to
stores so as that their product is the various festivals celebrated
available at almost all small and in different countries.
big retailer’s shops.

ARIEL SWOT ANALYSIS

Strengths:-

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 Excel 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.

Weaknesses:-

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.

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:-

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.

Segmentation targeting and positioning-STP MODEL:-

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 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
shares 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.
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.
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.

Line stretching –Line stretching is either stretching up or stretching down

(basically entering a new price slot & market segment). Product line stretching
develops when a firm adds additional products to a product line. Product lines
can be stretched downward, upward, or both.
P&G entered the high end detergent market with premium priced product, Ariel,
compared to Surf brand existing in the market. As the sales were very low for
Ariel due to its high price, P&G decided to stretch down with new products
penetrating the lower segment, like Ariel green alternate, Ariel super soaker.

PESTEL MODEL:-

Political Factors :-
The political factors that may impact the profitability or chances of survival of
the company are quite diverse. The political risks vary from sudden changes in
existing political regimes to civil unrest to major decisions taken by the
government. In cases of possible multinationals, one may also include political
factors that take place/ affect not only the host country but also all countries that
contain business operations, or that may engage in trade with Tide Ariel
To properly appraise the extent of the overall systematic political risk that Ariel
may be exposed to, the following factors should be considered before taking
part in any investments:

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of
corruption, as the resulting repercussions may lead to possible
impeachments or resignations of high level government employees.
 The laws that the country enforces, especially with regards to business,
such as contract law, as they dictate what Ariel is and is not allowed to
do. Some countries, for example, prohibit alcohol or have certain
conditions that must be fulfilled, while some government systems have
inefficient amounts of red tape that discourage business.
 Whether or not a company’s intellectual property (IP) is protected. For
example, a country that has no policies for IP protection would mean that
entrepreneurs may find it too risky to invest in Ariel
 The trade barriers that the host country has would protect Ariel;
however, trade barriers that countries with potential trade partners would
harm companies by preventing potential exports.
 A high level of taxation would demotivate companies like Ariel from
maximizing their profits.
 The risk of military invasion by hostile countries may cause divestment
from ventures.
 A low minimum wage would mean higher profits and, thus, higher
chances of survival for Ariel

Economic Factors :-
Economic factors are all those that pertain to the economy of the country that
Ariel, such as changes in the inflation rate, the foreign exchange rate, the
interest rate, the gross domestic product, and the current stage of the economic
cycle. These factors, and their resulting impact on aggregate demand, aggregate
investment and the business climate, in general, have the potential to make a
company highly profitable, or extremely likely to incur a loss. The economic
factors in the PESTEL analysis are macroeconomic.
The economic factors that Ariel may be sensitive to, and in turn should
consider before investing may include the following:
  The economic system that is currently operational in the sector in
question- whether it is a monopoly, an oligopoly, or something similar to
a perfect competition economic system.
 The rate of GDP growth in the country will affect how fast Ariel is
expected to grow in the near future.
 The interest rates in the country would affect how much individuals are
willing to borrow and invest. Higher rates would result in greater
investments that would mean more growth for Ariel
 However efficiently the financial markets operate also impact how well
Ariel can raise capital at a fair price, keeping in mind the demand and
supply.
 The exchange rate of the country Ariel operates in would impact the
profitability of Ariel, particularly if Ariel engages in international trade.
The stability of the currency is also important- an unstable currency
discourages international investors.
 A high level of unemployment in the country would mean there is a
greater supply of jobs than demand, meaning people would be willing to
work for a lower wage, which would lower the costs of Ariel

Social Factors:-
The social factors that impact Ariel are a direct reflection of the society that
Ariel operates in, and encompasses culture, belief, attitudes and values that the
majority of the population may hold as a community. The impact of social
factors is not only important for the operational aspect of Ariel, but also on the
marketing aspect of the organization. A thorough understanding of the
customers, their lifestyle, level of education and beliefs in a society, or segment
of society, would help design both the products and marketing messages that
would lead to a venture becoming a success.
The social factors that affect Ariel and should be included in the social aspect
of the PESTEL analysis include the following:

 The demographics of the population, meaning their respective ages and

genders, vastly impact whether or not a certain product may be marketed
to them. Makeup is mostly catered to women, so targeting a majority
male population would be less population than targeting a population that
is mostly female.
 The class distribution among the population is of paramount importance:
Ariel would be unable to promote a premium product to the general
public if the majority of the population was a lower class; rather, they
would have to rely on very niche marketing.
 To some extent, the differences in educational background between the
marketers and the target market may make it difficult to relate to and
 draw in the target market effectively. Ariel should be very careful not to
lose the connection to the target market's interests and priorities.
 Ariel needs to be fully aware of what level of health standards, reactions
to harassment claims and importance of environmental protection prevail
in the industry as a whole, and thus are expected from any company as
they are seen as the norm.

Technological Factors :-
Technology can rapidly dismantle the price structure and competitive landscape
of an industry in a very short amount of time. It thus becomes extremely
important to constantly and consistently innovate, not only for the sake of
maximizing possible profits and becoming a market leader, but also to prevent
obsolescence in the near future. There are multiple instances of innovative
products completely redesigning the norm for an entire industry: Uber and Lyft
dominate the taxi cab industry; smartphones have left other phones an unviable
option for most et cetera.
The technological factors that may influence Ariel may include the following:

 The recent technological developments and breakthroughs made by

competitors, as mentioned above. If Ariel encounters a new technology
that is gaining popularity in the industry in question, it is important to
monitor the level of popularity and how quickly it is growing and
disrupting its competitors’ revenues. This would translate to the level of
urgency required to adequately respond to the innovation, either by
matching the technology or finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other
firms in the industry, leading to other firms copying the technological
processes/ features of Ariel
 How much an improvement of technology would improve/ transform
what the product initially offers. If this improvement is drastic, then other
firms in the industry suffer more heavily.
 The impact of the technology on the costs that most companies in the
industry are subject to have the potential to increase or reduce the
resulting profits greatly. If these profits are great in number, they may be
reinvested into the research and development department, where future
technological innovations would further raise the level of profits, and so
on, ensuring sustainable profits over a long period of time.

Environmental Factors :-
Different industries hold different standards of environmental protection in their
head as the norm. This norm then dictates what every company should aim for,
in the least, to prevent becoming the target of pressure groups and boycotts due
to a lack of environmental conscientiousness. A company in the textile industry,
for example, is not expected to incur the same level of pollution and
environmental degradation as an oil company. The new consumer, armed with
the interest and the knowledge it carries, prefers to give its business to
companies it views as more ethical, particularly about the environment in the
wake of global warming.
The environmental factors that may significantly impact Ariel include:

 The current weather conditions may significantly impact the ability of

Ariel to manage the transportation of both the resources and the finished
product. This, in turn, would affect the delivery dates of the final product
in the case of, say, an unexpected monsoon.
 Climate change would also render some products useless. For example, in
the case of textiles, in countries where the winter has become very mild
due to Global Warming, warm winter clothes have much less of a market.
 Those companies that produce extremely large amounts of waste may be
required by law to manage their environmental habits. This may include
pollution fines and quotas, which may place a financial strain on Ariel
 If Ariel should (knowingly or unknowingly) contribute to the further
endangerment of an already endangered species may face not only the
consequences from the law but also face a backlash from the general
public who may then boycott Ariel in retaliation.
 While relying, in any percentage, on renewable energy may be expensive,
it often receives support not only from the government but also from its
customer base, who may be willing to pay a premium price for the
products that Ariel may produce.

Legal Factors :-
The government institutions and frameworks in a country, while technically
also political and thus subject to whichever political party holds the majority in
a government body, are also legal and thus should be considered in a PESTEL
analysis. Often Tide Ariel policies on their own are not enough to efficiently
protect Ariel and its workers, making Ariel appear an undesirable place of
employment that may repel skilled, talented workers.
The legal factors that deserve consideration include the following:

 Intellectual property laws and other data protection laws are, as

mentioned earlier, in place to protect the ideas and patents of companies
who are only profiting because of that information. If there is a likelihood
that the data is stolen, then Ariel will lose its competitive edge and have a
high chance of failure.
 Discrimination laws are placed by the government to protect the
employees and ensure that everyone in Ariel is treated fairly and given
the same opportunities, regardless of gender, age, disability, ethnicity,
religion or sexual orientation.
 Health and safety laws were created after witnessing the horrible
conditions that employees were forced to work in during and directly
after the industrial revolution. Implementing the proper regulations may
be expensive, but Ariel has to engage in it, not only due to the law but
also out of Ariel's personal feeling of ethical and social responsibility to
other human beings.
 Laws are also placed to ensure a certain level of quality or reasonable
price for certain products to keep the customer safe and prevent them for
being provided. The industries this applies to find often their costs
elevated.