Chapter 1 : Procter and Gamble’s Tide
Analyzing the status, strategies and resources of businesses and their products or services is very essential as it allows operators to determine how they will progress in the years to come. This also enables them to identify their strengths and how they will optimize them. On the other hand, business analysis also makes operators realize their weak points, allowing them to address them immediately with effective strategic actions. Conducting a business analysis also helps organizations to prepare for their future development and growth. Considering that competition in the business field is continuously growing, implementing efficient strategies through business analysis is indeed significant for all operators in any industry.
Procter and Gamble's Tide is among the most popular and widely patronized detergents in the world. P&G takes pride in pronouncing that the product is its flagship brand (Decker, 1998). Since its launching in 1946, the world's first synthetic detergent established its market supremacy. With its wide array of products offered such as Tide Liquid, Tide Powder, Tide with Febreze Freshness, Tide Coldwater, Tide with touch of Downy, Tide with Bleach, Tide with Bleach Alternative, Tide HE (High Efficiency), Tide Kick, Tide Stainbrush, Tide Buzz, and others, it continued its stability in the market and its fifty years of commitment in helping families in their laundry needs (Tide Fabric Care Network, 2006).
Reason(s) for Marketing Strategy
Today's market is characterized by highly competitive organizations which are all vying for consumer's loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth.
Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successful in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (Lowenstein, 1997). Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers' satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. According to Bowers, Martin and Luker (1990), if consumers somehow become better customers - that is, more knowledgeable, participative, or productive - the quality of the service experience will likely be enhanced for the customer and the organization.
As in the case of every product, Tide present and future potential in the global market somewhat, if not entirely depends on its facility to lure prospective customers. Usually, Tide targets women ages 18 to 54 years old. Over years, Tide constantly directs its marketing strategies to suit women of these ages. This is because when it comes to laundry, women belonging to this category hold the power to make decisions. This claim gained support from the national survey conducted by the American Demographics. P&G sees that such feat is crucial if Tide is to maintain its leading position in the laundry detergent market (Larkin, 1996)....
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