Introduction
Tide is a popular brand by Procter & Gamble. Tide is also known as Ace, Vizir, or Alo in some countries. Procter & Gamble introduced Tide in 1949. The soap and other detergents industry includes companies that engage in the manufacture of soap, organic detergents, and glycerin from animal fats and vegetable oils (DATAMONITOR, 2011). The industry is extremely competitive. Procter and Gamble competes with various local and global competitors. Consequently, competitive pressure is mounting, and companies are finding it hard to maintain profit margins. Therefore, according to Farasyn et al (2011), P&G has to respond successfully to competitive factors like pricing, trade terms, and promotional incentives. QuickMBA (n.d) notes that managers require information on the market in order to introduce services or products. This paper seeks to identify three marketing forces and their impact on Tide, and strategies for overcoming threats and capitalize on opportunities.
Politics
Global and national politics affect the position of Tide in the market. Currently, P&G sells Tide in at least 180 countries. The political environment in these nations determines consumer trends, which in turn determines Tide sales. Members of the Democratic and Republican parties are planning to pass comprehensive tax reforms. These reforms will change the rules of income tax applicable to companies like P&G. However, it is not possible to predict whether the effect of the reforms will have a negative or positive effect on the products of P&G. Political unrest African and Middle Eastern countries have affected the sales of Tide (The Procter & Gamble Company SWOT Analysis, 2012).
Economy
The effects of the contracting global economy have reduced the purchasing power of consumers. Consequently, the sales of P&G in Western Europe and Northern America have remained largely constant as shown in figure 1 below. According to Packaging & Pricing (2012), other economic factors that determine the sales of Tide include the differing currencies of various countries, different inflation rates, and different rates of economic growth and uncertainty.
Figure 1: P&G geographical sales (2010-2012)
Source: (The Procter & Gamble Company SWOT Analysis, 2012)
Environment
Dibadj et al (2012) note that environmental sustainability is an essential marketing force that influences the sales of products in the soap and detergents industry. Procter & Gamble has put measures in place to manage the effect of its products, such as Tide, on the environment. Some environmental sustainability issues that affect the position Tide in the market include safety, efficacy, quality, and efficacy. Such issues determine the sentiments that customers have towards products.
Strategies
In order to address the challenge of global and national politics, P&G has to ensure that it complies with the legal requirements of operating in different nations. The contracting economy is a threat that P&G can address by increasing its market share in different companies. P&G has to alter its marketing strategies to reflect the increasing concern of sustainability. Procter & Gamble can use various opportunities to market Tide. For instance, instead of focusing on mature markets such as Western Europe and Northern America, the company can begin to introduce Tide in developing markets, in Asia and Africa (The Procter & Gamble Company SWOT Analysis, 2012). The company has put into place growth plans for the future. For example, from 2012, it began managing its operations in Asian from three headquarters. Through such a plan, P&G could increase its sales by 25%. Procter & Gamble is also building new production facilities in eighteen developing countries. The expansion can increase the number of people using P&G products from 3.5 billion to 4.5 billion (DATAMONITOR, 2011).
The main marketing forces in the soap and other detergents industry are politics, the economy, and environmental sustainability. Procter & Gamble can deal with the current threats and exploit opportunities to increase its market share and sales.
References
DATAMONITOR: The Procter & Gamble Company. (2011). Procter & Gamble SWOT Analysis, 1-11.
Dibadj, A., Powers, S., & O’Connor, M. (2012). Procter & Gamble: Time for Action — Enabling Growth Through Lower Costs and Increased Investments. Bernstein Black Book – Proctor & Gamble: Time For Action – Enabling Growth Through Lower Costs & Increased Investment, 1-213.
Farasyn, I., Humair, S., Kahn, J. I., Neale, J. J., Rosen, O., Ruark, J., & … Willems, S. P. (2011). Inventory Optimization at Procter & Gamble: Achieving Real Benefits Through User Adoption of Inventory Tools. Interfaces, 41(1): 66-78. doi:10.1287/inte.1100.0546.
Packaging & Pricing (2012), Distribution methods affect bottom line. Retrieved from http://www.bizfilings.com/toolkit/sbg/marketing/packaging-pricing/distribution-methods-affect-bottom-line.aspx
QuickMBA, (n.d.). Marketing: Marketing research. Retrieved from <http://www.quickmba.com/marketing/research//>
The Procter & Gamble Company SWOT Analysis. (2012). Procter & Gamble SWOT Analysis, 1-10.
