ACKNOWLEDGEMENT A work is never a work of an individual.

We owe a deep sense of gratitude to the intelligence and co-operation of those people, who have been so helpful, to let us understand what we needed, from time to time for the completion of this exclusive project report.

We want to express our gratitude towards Mr. SANJIT KR. ROY, Marketing Faculty, IBS HYDERABAD for giving us an opportunity to do this project.

CONTENTS
1. PREFACE 2. INTRODUCTION TO THE ORGANISATIONS HINDUSTAN UNILEVER LIMITED PROCTER & GAMBLE 3. 4 P S OF THE MARKETING MIX TIDE DETERGENT RIN DETERGENT 4. SWOT ANALYSIS [TIDE & RIN]. 5. PEST ANALYSIS [TIDE & RIN]. 6. SEGMENTATION, TARGETING & POSITIONING [TIDE & RIN] .. 7. THE CONTROVERSY [TIDE Vs RIN]. 8. CONCLUSION . 9. BLIOGRAPHY.. 3 .4 5 ..6 ..10 ..13 ..18 .22 ..31 .36 .37 2

PREFACE The success of any companys business entirely depends on the marketing strategies adopted by the company to promote its existing product line.

Marketing strategy plays a vital role in a business to make it success.

We have tried to put in our best efforts to complete this task on the basis of knowledge that we have gained in the marketing management classes. We have tried to put our maximum effort to get the accurate information. However, we would appreciate if any mistakes are brought to us by our instructor.

INTRODUCTION TO THE ORGANISATIONS HINDUSTAN UNILEVER LIMITED: Hindustan Unilever (HUL) is the largest fast moving consumer goods (FMCG) company, a leader in home & personal care products and foods & beverages. HUL's brands are spread across 20 distinct consumer categories, touching lives of every 2 out of 3 Indian. It has employee strength over 15000 & 1200 managers. It has created widespread network through its 2000 suppliers & associates. There 75 manufacturing locations in India itself. It caters its wide range of products to 6.3million outlets. It has market capitalization of 11.5billion. Home & personal care:- Under this it has brands that caters to every income segment of population. In this segment it has brands like Lakme, Axe, Pepsodent, Surf Excel, Wheel, Lux, Dove, Fair & Lovely & many more. Foods & Beverages:-Under this segment it has brand like Kissan, Knnor Soups, Annapurna, Kwality Walls, Brooke Bond & Lipton. It has also launch water purifier with the name Pureit. The FMCG market is set to treble from $11.6 billion in 2003 to $33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash, etc in India is low indicating the untapped market potential. Companies present in FMCG segment like HUL, Dabur, ITC, Godrej & many more have potential to acquire market share. Five of HUL's leading brands Lux, Dove, Pears, Clinic Plus and Sunsilk won the Reader's Digest Trusted Brand 2008 Awards. Four HUL brands featured in the top 10 list of the Economic Times Brand Equity's Most Trusted Brands 2008 survey. HUL was awarded the Bombay Chamber Civic Award 2007 in the category of Sustainable Environmental Initiatives. HUL was selected as the top Indian company in the FMCG sector for the Dun & Bradstreet - American Express Corporate Awards 2007.

PROCTER & GAMBLE: Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care Segment. Procter & Gamble's relationship with India started in 1951 when Vicks Product Inc. India, a branch of Vicks Product Inc. USA entered Indian market In 1993, Procter & Gamble India divested the Detergents business to Procter & Gamble Home Products and started marketing Old Spice Brand of products. In 1999 Procter & Gamble India Limited changed the name of the Company to Procter & Gamble Hygiene and Health Care Limited.

P&G Home Products Limited was incorporated as 100% subsidiary of The Procter & Gamble Company, USA in 1993 and it launched launches Ariel Super Soaker. In the same year Procter & Gamble India divested the Detergents business to Procter & Gamble Home Products. In 1995, Procter & Gamble Home Products entered the Haircare Category with the launch of Pantene ProV shampoo. In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter & Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter & Gamble Home Products Limited launched Pampers worlds number one selling diaper brand. Today, Proctor & Gamble is the second largest FMCG company in India after Hindustan Lever Limited.

MARKETING MIX - 4Ps OF MARKETING

PRODUCT - An object or a service that is mass produced or manufactured on a large scale with a specific volume of units. A typical example of a mass produced service is the hotel industry. PRICE - The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity etc. PROMOTION Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. PLACE - Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Product Overview (TIDE) Procter and Gambles 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 in U.S, the worlds 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). Price Being the most powerful tool in marketing, price is identified following the companys established goals and objectives. These goals range from enhancing the market share of the products, improving the demands in the target markets, to extending the sales at an even
7

rate for one whole day, week, month, or year. Pricing is utilized in several ways namely (1) to increase unit sales so that resources of the firm; (2) to restrict sales, or limit the quantities demanded per unit time;(3) to make the market less attractive to actual or potential competitors; and (4) to attract buyers so that they will buy other items once the transaction has begun. Today, P&G pricing of Tide detergent soap proves to be an effective means not only to attract consumers but also to lessen the market appeal of its competitors. These had been the case in India, where P&G had launched the 20-50% discounts for both Ariel and Tide. As a result, buying Tide has become an economic-wise option for the larger masses. The prime purpose was to lure more consumers to try the product. With the slashed price, volumes of Tide sales have surged tremendously triggering. Product-Service Offering Product-service offering, on the hand involves the offerings that can be manipulated. These include the features or attributes (actual or perceived), images, warranties, after-sales service, training for the customers, delivery, installation of the product, and responsibility for the product at the end of its productive life. Tides usefulness expires as soon as the laundry is finished, but this is not to suggest that P&G will not be held liable after its use. As in the usual trend nowadays, providing a somewhat feedback mechanism is indeed useful. Although, this has long been realized by the P&G thats why in every sachet/package of Tide one would notice phrases like if you have comments/ suggestions However, only few of the modern consumers know of this right. Usually, they are contented with using the products, and no longer care less with how much the company would appreciate their effort to give them a ring or write them. P&G should reinforce the message to its consumers with their TV/radio/net ads so that the consumers would know of their rights. In return, the company would be able to know directly for costumers how they feel about the products, what they think of it, what recommendations they can provide etc. Tide as a brand name is an excellent choice. It passes on the messages of supremacy and toughness. Tide has been renowned by its reputation of complimenting the ever-changing peoples temperaments for fashion. When, white fabric has been the overwhelming obsession,
8

Tide with whitening power has been introduced. Likewise, when bright colors reigned, P&G led the campaign for Tide extra action specializing on bright-colored clothes. Promotion In 1999, Procter and Gamble spends nearly $5.5 billion on global advertising making it one of the worlds biggest advertisers. Procter and Gamble exhausts the benefits of both the print and electronic media worldwide. Today, the existence of Internet and the continued revolution in the world of Information Technology are certainly positive signs for the blossoming of many new advertising opportunities. For instance, pop-up ads and email ads have started to invade the Internet. Similarly, TV and radio advertising are also important channels to further promote Tide. Usually, effective television and radio advertising involves a good opening punch line, presentation of the competitors product and its weakness, testimony of experts or renowned personalities/authorities, and in some cases, use of famous movie actors and actress also helps. A thorough consideration has been given to the content of the site. Contents breadth, depth, manner of presentation, and timeliness are what primarily holds the attention of visitors. The more engaging is the site, the greater the possibility that the consumers will act positively to the ads. Lastly, it is very vital indeed to retain the site in order to engage sites visitors. To do this, the site must always be monitored and updated. It must also provide venue where visitors could give their comments, recommendations, and other feedbacks to the site or the product so that improvements may be incorporated accordingly. Effective promotion of the product through advertising in various media maintains the superior standing of the product in the wide detergent marketplace.

Place/Distribution Tide being a product that serve to satisfy the immediate nee of people is always available in both retail stores and wholesalers stores. On the one hand, packaging the product involved the following considerations; packaging must (1) facilitate storage and handling of the product, (2) protect Tide for extreme temperature or moisture, (3) protect Tide from being deformed or damaged, (4) to provide quantity, source (brand), and the concerned party to be called in times of any trouble with the products occur and, (5) isolate appropriate purchase quantities. Colors of the packaging materials (sachets and the like) must be bright colors to instantly capture the attention of the consumers. It does matter, too if the words are clearly comprehensible for the consumers. On the one hand, it is a minus factor when the words written in the packaging materials are of different language. This implies that the company is not in communion with the consumers since it further indicates that the target consumers are of someplace else. Meanwhile, storing Tide must be done complimenting the environmental rules of the place where it is to be stored. For effective handling of the storage costs P&G must inform its stakeholders, manufacturers and brokers about the various storage risks. These could range from fires, theft, or loss of market demand. There is also a need to further rationalize the supply chain management. P&G may opt to operationally implements the just-in-time management of products. The process may involve building of sound communication channels with the consumers, manufacturers, brokers, and other stakeholders (Ghosal and Bartlett, 1998). In summary, the marketing strategy for P&G to promote Tide detergent laundry soap consists was founded on the considerations of various marketing mix (4Ps). Pricing decisions was done considering the demographic and socio-economic attributes of its target market. Product-service offerings included a sound feedback mechanism. On the one hand, P&G focused on net advertising for Tide and its related products. Lastly, decisions on place/distribution were shared by various stakeholders manufacturers, retailers, broker, and the customers. Thus, the international marketing superiority of Tide is irrevocable.
10

Product overview(RIN): Rin was launched in a bar form in a test market in 1969 and extended nationally in 1970. It was launched as the first detergent bar at a time in as scenario when there were stringent rules imposed on the organized sector manufacturing laundry soaps. It was also realized at that time that powder were never completely replaced laundry soaps. Initially the brand was positioned as Rin is not a soap, it is a totally a new idea for washing soaps. The benefits clearly outlined that the bar had concentrated cleaning powder hence washed 50 percent more clothes moreover it washed whiter than any other brand. The memorable base line whiteness strikes with Rin was introduced and a strong brand property the mnemonic of the lightening flash was developed. The early 1990s also saw Rin successfully battling powder concentrate brands attempting a foray into detergent bars. To take advantage of the existing gap in the segment between premium powders and mass market powders a powder variant Rin Shakti powder was launched in 1995. Priced at Rs.25 per kg, it plugged the then wide price gap between premium powders-average price Rs.50 per kg and mass market powders Average price Rs.14 per kg. It capitalized on the brand equity that Rin enjoyed amongst consumers and was strategically positioned on superior whiteness as compared to ordinary brands. Product: Rin had 3 variants Rin supreme bar, Rin Shakti bar and Rin powder. Rin supreme bar and Rin Shakti bar operate at two distinctly different price points, while the Rin Shakti proposition is superior whiteness vis-a-vis mass market; the Rin supreme proposition is superior performance to give whites that look like new. Early 2004 saw the advent of a brand new Rin Shakti powder. Rin Shakti paved the way with a brand new proposition of double whiteness along with a powerful innovation of no mitti powder as it dissolved thoroughly in water as opposed to ordinary water which left behind a mud like residue. The suffix Shakti has now been dropped from the powder packed.

11

Promotion: Rin advertising has always been effervescent, bold and confident. It has often featured the progressive Indian women in control of her life and destiny. The Rin women manages all fronts efficiently, be it her home or her profession. Right from its first campaign- whiteness strikes with Rin and the criteria of the powerful lightening flash mnemonic: to the famous white to off white crossovers- whites that other noticed and the even more famous Zara Sa Campaign. Rin has created memorable milestones in Indian detergent advertising. The recent re launch of Rin Shakti powder early this year has revived and reinforced the brand mnemonic of the lightening. The powerful tagline Bizli Giri lightening strikes! perfectly capture the impact of Rin whites on others. This communication also strikes to drive home proposition that the new powder doubles the whiteness because it is completely soluble in water. Also this the step in further strengthening the power of the lightening mnemonic by alluring to it even in the audio and the tagline. Several well known people have endorsed Rin: Priya tendulkar and former miss world Lara dutta. Arguably the longest Commercial ever was Rins ten minute commercial which ran in rural India. Price: Hul increased the gram mage on detergent brands such as Rin, in a bid to offer better value to consumers. It also reduced the price points on detergent cakes and introduced schemes on large detergent packs. The move to slash the price of Rin detergent powder by 30% from Rs 70 a kilo to Rs 50 was a direct bid to counter the P&G move. Rin faced a share fall of 2.5% in December 2009 so the only available option was to react by cutting the prices. The price was cut down by 30% to Rs. 50.

12

The product was priced at Rs. 42 for a one kg pack. Rs. 80 for a 2 kg pack, Rs. 20 for 500 grams, Rs. 10 for the 250 gram pack and Rs. 1 for the 25 gram sachet. This was a bold and a confident move from HUL.

Place: Decisions involving the place/distribution are also crucial in meeting the needs of the target market. There are many factors to consider such as the choice of location where the product will be sold to the consumers, and the various channel distribution required to bring the product in the target market. Elements of distribution channel include the packaging, storage facilities, transportation, and the members of the channel itself (producers, brokers, retailers and households. It is always relevant to choose a channel pattern that is suitable for the target market needs. Thus, if the targets are the women who are working, selling directly to the Internet and through various salespeople is the best choice.

13

SWOT Analysis

A scan of the internal and external environment is an important part of strategic planning process. SWOT (S = Strengths, W = Weaknesses, O = Opportunities, T = Threats) is a tool used for auditing an organization and its environment. Role of SWOT is to take the information from the environmental scan and separate it into external and internal issues. Once this is completed, SWOT determines if the information indicates something that will assist the organization in accomplishing its objectives or if it indicates an obstacle that must be overcome or minimized to achieve desired results.

Environmental Scan / Internal Analysis /\ \ External Analysis /\

Strengths Weaknesses Opportunities Threats | SWOT Matrix

14

SWOT Analysis Framework Strengths- Internal to the unit; are a unit s resources and capabilities that can be used as a basis for developing a competitive advantage; strengths should be realistic and not modest. Examples: good reputation among customers, resources, assets, people, : experience, knowledge, data, capabilities, marketing; quality, location, accreditations

Weaknesses- Internal force that could serve as a barrier to maintain or achieve a competitive advantage; a limitation, fault or defect of the unit; weaknesses should be truthful so that they may be overcome as quickly as possible. Examples: gaps in capabilities, financial, deadlines, morale, disadvantages, gaps in capabilities, lack of competitive strength.

Opportunities- Any favorable situation present now or in the future in the external environment. Examples: unfulfilled customer needs, arrival of new technologies, loosening of regulations, global influences, economic boom, demographic shift

Threats- External forces that could inhibit the maintenance or attainment of a competitive advantage or any unfavorable situation in the external environment that is potentially damaging now or in the future. Examples: shifts in consumer tastes, new regulations, political or legislative effects, environmental effects, new technology, loss of key staff, economic downturn, demographic shifts, competitor intent; market demands; sustaining internal capability; insurmountable weaknesses; financial backing

15

Benefits of SWOT Analysis Scalable Simplicity Low Cost Flexibility Collaborative Quickness Integrate able

y y y y y y y

Strengths

Weakness

Opportunities

EXPLORE

EXPLOIT

Threats

AVOID

CONFRONT

SWOT SS

SWOT SNAPSHOT OF TIDE STRENGTHS: Experience is an archway through which one can see the rest of the world still undiscovered. Tides environmental friendly nature is an added advantage to its image. Tide maintains the softness of hands & this feature makes it a favorite among the housewives. It is priced comparatively cheap as compared to other detergents.
16

WEAKNESSES: No company can win if its products and offerings resemble every other product and offering. A huge number of substitute products were present in the market. A lot of money was spent on CSR, rather than innovation.

OPPORTUNITIES:

It is important for the firm to analyze the competition and respond proactively rather than reactively to sustain itself in the market Tide can focus on changing its customer base from urban to rural areas. It can enter into aggressive marketing of its existing product. Tide can hire staffs and factories on a contract basis to increase its production. It can enter into bundling or co branding.

THREATS: In business, the competition will bite you if you keep running; if you stand still, they will swallow you Tide faces a stiff competition from the emerging local players. It is still facing the drawbacks of being a late comer. The sales of Tide are picking up very slowly as compared to others. The unsophisticated buying behavior of consumers is a deterrent in its growth.

17

SWOT SNAPSHOT OF RIN STRENGTHS: Rin has a very strong brand portfolio associated to itself. It has the base of a strong company.[HUL]. It has a competitive advantage over other brands. The Corporate Social Responsibility of Rin adds to its value

WEAKNESS: The high price of the product makes it a big-time victim in the detergent market. The product caters only to a particular segment of the society. Rin lacks market control which in the long run severely affects its profit-margins.

OPPORTUNITIES: Rin can take into account the changing lifestyle of people and act accordingly. Rin can also focus on increasing its production volume. It can plan for acquisitions in order to strengthen its distribution tie-ups. Rin can aim at geographical exports & imports. Rin can use tactics to appeal the consumers.

THREATS: The price war in the detergent market is a serious problem to Rin. Increase in production & labor cost has posed a challenge to rin. The economic slowdown has affected the sales of Rin. MNCs coming to India particularly in toilet & soap industry are affecting the growth of Rin. Emergence of small but strong regional players is also a threat to the growth of Rins market share.

18

PEST ANALYSIS

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
y

Political factors, are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation.

Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

19

Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

PEST ANALYSIS OF TIDE: Political/Legal: The manufacturers of Tide should prove that all surfactants in a detergent are ultimately biodegradable. The company is required to make available on a website the ingredient data sheet for consumers. Economic: TIDE costs much lesser than other detergents used by upper class families. Its cost is about Rs.50/per kg. Inflation had an effect on the detergents sales figure.

20

SOCIAL 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. The company came up with a new version of the product that has constituents that helps protect the hands of the user .

Technological The R&D activity of the company pioneered the concept of cold water detergent. The company offers a cutting-edge technology for detergent powder . The complete detergent powder plant essentially begins from slurry formulation and finishes with the packing of the perfumed spray dried detergent powder.

PEST ANALYSIS OF RIN: Political/Legal: The company should provide information in confirmation with the biodegradation of any surfactant or relevant EU derogation granted. Confirmation of the ownership of the test data for ultimate degradation or agreement with the owner for its use Economic: RIN= (BD Cost + Transportation)-(ULSD cost +Transportation)

Inflation had adverse effect on the demand of the products

21

Social: Basically targets the middle class Indian House wives

Rin Young Impressionists is a unique program aimed at developing the personality of school children at an early stage

Technological: Developed Rin Supreme with better enzymes

Anti-foam ingredients were used for machine-washing detergents, which made the lather rinse more quickly.

22

SEGMENTATION, TARGETING & POSITIONING: SEGMENTATION:

Market segmentation is the process of dividing a heterogeneous market into homogeneous subunits. Consider the Indian market, which consists of more that 1000 million people. For a consumer product company making detergents, this is a big number and hence a big market. However, not all the 1000 million people believe in the same things. Not all look for same features and buy for the same reason. The market segmentation helps a firm compete in a highly competitive market. A successful marketer knows that all elements of marketing mix are imitable. Sooner or later the competition will catch up and at the end of the day; it will become a promotion and price war. To be able to overcome this threat from competition, a successful marketer should always segment the markets, and then position themselves in a segment where they perceive they will be able to defend against competitive attacks, and emerge as the segment leader. The competitive advantage of a firm lies in being everything to a select few. To be everything to everyone is a sure recipe for a strategic failure.

23

Basis Used for Segmentation: I) Preferences:

II) Hierarchy of Variables: II) Situation Based

TARGETING:

Targeting is the next step in the sequential process and involves a business making choices about segment on which resources are to be focused. There are three major targeting strategies: undifferentiated, concentrated, and differentiated.

After the most attractive segments are selected, a company should not directly start targeting all these segments. The attractiveness of the segments is also depending on other important factors. In the main activity of defining a target market, four sub activities are given which are the bases for deciding on which segments will actually be targeted. The four sub activities within targeting are: 1. Defining the abilities of the company and resources needed to enter a market 2. Analyzing competitors on their resources and skills 3. Considering the companys abilities compared to the competitors 4. Deciding on the actual target markets.

24

Targeting can only be done when segments are predefined; there have to be segments to analyze the competitors which are in this market. When the process of targeting is ended, the markets to target are selected, but the way to use marketing in these markets is not yet defined. To decide on the actual marketing strategy, knowledge of the differential advantages of each segment is needed. When positioning a product, the segments are first analyzed.

Positioning:

Positioning is what the customer believes about your product's value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion. The goal of product positioning is to keep your product on top of your customers mind when theyre considering a purchase. To be successful, product positioning must achieve three objectives:

Differentiate your product from the competitions Address important customer buying criteria
25

Articulate key product (or company) characteristics

Process: Understand your target market Understand your competition Map buying criteria against competitive positioning Target market buying criteria (prioritized and weighted) 40% - Color selection 30% - Length of warranty 20% - Service reputation 10% - Makes me happy/feel good 5% - High tech gadgetry Company A Company B and D Company C Company B Competitive positioning

Assess your products strengths against the buying criteria STP ANALYSIS OF TIDE:

Procter & Gamble (P&G) is in just such a situation. When the Rs 750-crore company introduced Tide in India, it was meant to accentuate the fortunes of the companys detergent business in the

26

Indian market. After all, Tide is P&Gs best bet globally, accounting for 10 per cent of the multinationals $ 35 billion global turnover; it is also the worlds largest-selling detergent brand. However, three years after its entry into India, there is little to prove that Tide has made that desired splash for P&G. According to retail audit house, Tide has grown marginally from 0.1 per cent volume share in 2000 (it was launched in May 2000) to 0.7 per cent at present. P&Gs older brand in the Indian market, Ariel (launched in 1991), is also suffering. Ariels volume share has dipped from 2.6 per cent in 1998 to 1.5 per cent currently. Worse still, P&Gs total volume share in the detergents market has dipped from 2.6 per cent in 1998 to 2.2 per cent currently. But still P&G launched another premium detergent in a market where its super-premium brand was already present, risking cannibalization by the new entrant. An excerpt from Philip Kotlers Marketing Management: The Millennium Edition (Prentice Hall; 2000) throws some light on P&Gs global strategy with respect to its detergents: P&G will enter a market containing a large entrenched competitor. Instead of launching a me-too product or a single-segment product, it introduces a succession of products aimed at different segments. Each entry creates a loyal following and takes some business away from the major competitor. Soon the major competitor is surrounded, its revenues are weakened and it is too late to launch new brands in outlying segments. P&G in a moment of triumph then launches a brand against the major brand. In the Indian market, however, this global template quite didnt work. True, P&G managed to pre-empt adversary Hindustan Lever Limited (HLL) to some extent by launching a premium brand first in the Indian market first in 1991.

Thus, P&G saw the route to expansion in Indian detergents market through its safest bet by far, Tide. But by the time Tide was launched in 2000, the lather was subsidizing the premium detergents market. In 1999-2000 themselves, the premium market shrank by 27.09 per cent (in volume terms). Analysts are of the view that P&G floundered by launching Tide as a premium detergent at Rs 120 per kg, just Rs 35 lower than its super-premium sibling, Ariel.

27

The market was already experiencing a downward pull towards low-priced options like Ghari and Fena which had increased their shares in the market. Tides growth in the Indian market was initially slow on the uptake. Tide could manage no more than 0.3 per cent. Also, Tides pricing was a deterrent to initial product trials. Says Nikhil Vora, an FMCG analyst with ASK Raymond James, The need of the hour was a value-for-money brand and not another premium brand but P&G did not take that into account.

P&G did attempt to correct its mistake: in August 2001 it made Tide cheaper by Rs 35. With the market price down to Rs 85 per kg, it could address the consumer segment that couldnt afford Ariel. According to analysts, P&Gs strategy for Tide increasingly started to focus on the valuefor-money consumer and this could represent the companys strongest effort so far to grab volumes in India. Certainly, volume share crawled up. According to Rahul Malhotra, country marketing manager, P&G, the Tide business has tripled post the price reduction. But its not just the pricing strategy that helped Tide rise up.

Another factor, after the price game, that worked in favour of the detergent was the whiteness proposition (Ariel has always been promoted on the cleanliness platform). And finally, what helped Tide gain momentum is the communication channels it chose to reach to its target audience, which was different from that of Ariel.

In the case of Tide, though, P&G focused on the traditional Indian housewife (the ideal core target for any detergent brand) from the beginning. Says Kamal Basu, executive vice president, Saatchi & Saatchi (ad agency for Ariel), The mid-priced detergent segment is ballooning in Indian at present, eating into the shares of both low and top-end segments. The price drop has only arrested the shrinkage of this segment.

While media buyers say the game show is connecting with Tides audience, the market dynamics pose a different challenge.Tides unique pricing could act as an advantage because it is a convenient price point for a premium, international brand in order to enable customers to
28

downgrade from costlier brands. But what if Tide washes away Ariels franchise?

Tide quickly spilled over the boundaries that company strategists had drawn for the product and ripped through P&G's core markets.

A powerful clean that won't wear out your clothes. Tide Powder gets to the bottom of dirt and stains to help keep your whites white and your colors bright. For great stain removal in any temperature, Quick Dissolving Tide is formulated to immediately start dissolving even in cold water and a super-soluble detergent means virtually residue-free clothes! Moisture-resistant cartons with Moisture Guard Protection and Snap-Lock Lids mean less clumping so your powder stays fresh and free-flowing.

Get the most out of your high efficiency washer. High efficiency washing machines accommodate larger loads and save money on utility bills. But unless you're using the right laundry detergent, you may not be getting the results you bargained for. Tide HE is specially formulated to unlock the cleaning potential of high efficiency washers in U.S.

Helps clean away stains and odors with ease. Tide with freshness gives you the great cleaning you expect from Tide, now with the freshness you love. Tide with Freshness is specially formulated to help target and remove common odors that get trapped in fabrics, and then deposit "freshness actives."

STP ANALYSIS OF RIN: HLL launched the Sunlight (yellow), Wheel (green), Rin (blue) and Surf Ultra (white) detergents powders for different market segments. This strategy of segmenting the markets, understanding its needs and then evolving marketing mix to suit separate segment needs helped HLL win back its lost market. In fact Nirma made all other consumer product.companies sit up and take a fresh
29

look at their markets. It announced, for many, a beginning of an era of low priced products for a highly price sensitive Indian Market , and, to others ,an end of a mass marketing era. Clean clothes play a critical role in our lives by creating a good impression and being recognized by society. Rin plays an integral part in enabling us to look good by providing demonstrably superior whites. Now new Rin works to give you whiter, brighter clothes. Rin has always provided brilliant whiteness and new Rin is an effort to even better this. It is made up of finer particles that dissolve faster in the bucket. These finer particles attack the tough dirt areas and remove most of the dirt during the soak itself. New Rin gives your clothes twice the whiteness as compared to ordinary washing powders. Yes, that's true. Not only does Rin's new formula work faster than other ordinary washing powder, but also better. See it for yourself!

Look how Ultra Violet light shows the difference in the whiteness when compared to ordinary washing powders.
30

New Rin gives your clothes twice the whiteness as compared to ordinary washing powders. So why settle for anything less? New Rin available at your nearest store. Also available in Jasmine Fresh fragrance. The launch of new Rin powder with a unique double whiteness proposition. Unlike other detergent powders that contain mud like ingredients the all-new Rin powder dissolves thoroughly in water. This path-breaking innovation is patented by Unilever. The new Rin powder, with added perfume has a formulation far superior to the erstwhile Rin Shakti. The new Rin ensures longevity, keeps your clothes looking new longer with double the whiteness. A recent survey on habits and attitudes of consumers revealed that maintaining whiteness of clothes is the second most important consumer problem. Realising the criticality of whiteness for every Indian housewife, HLL has addressed their need by launching the all new Rin powder, which gives double the whiteness. Since its inception, Rin has always been a brand that stands for whiteness. While other detergent powders do not dissolve completely in water, but leave behind a mud-like residue, Rin's new innovation allows 100-per cent dissolution and thereby enhanced whiteness." Until then whiteness was an area dominated by HLLs Rin, a detergent soap. An HLL insider admits that Tide did manage to overshadow Rins proposition of whiteness for a while. Forcus on cost reduction across all dimensions valued by customers offers superior whiteness. Remove dirt and protect the whiteness.

31

PROMOTION AT ITS EXTREMES Even in this era of all-things-internet, there is no denying the fact that television advertisements have a defining impact on the brand positioning. With TV ads, brands put their best face forward and reach out to a mass target audience. TV Advertisements like any other forms of advertisements have one primary objective Conversion. A brand spending loads of money for an advertisement campaign strives to see a multi-fold ROI through increased sales. However, in recent times we have seen advertisement campaigns which have managed to generate a buzz for the brand solely on the captivating ad campaign. Telecommunication giants have experienced this first hand with the ad campaigns of Vodafone, Airtel garnering amazing response for their ad campaigns. The famous zoozoo have even provided a whole revenue stream for Vodafone in the form of custom merchandise. Hence, it comes as no surprise that brands are very aggressive when it comes to creating advertisement campaigns. The desire to outdo the competition is so clearly depicted in the form of advertisement campaigns. Such a strong medium television is that brands are resorting to settling scores through it. That is exactly what HUL, the maker of Rin tried to do; along with promoting their own product, they ran a negative campaign for their business rival. Viewers enjoyed the advertisement, which was really well made, but the folks at Procter & Gamble the maker of Tide were totally aggravated. The infamous 30-seconder commercial ignited a debate over advertising standards in India. No viewer could have missed that advertisement as it had hijacked majority of the slots in all the popular TV serials, soaps and movies. This was clearly a publicity gimmick on the part of HUL. They wanted to create a buzz around their product, Rin. In this endeavor they definitely succeeded. A big buzz got created and HUL guys must be patting themselves on their backs.

32

The concerned advertisement positioned a mother as having a son smug with the prospect of having whiter uniforms owing to Rins proficiency in contrast with another family using Tide. The first child even manages to steal Tides catchphrase to make the mother look silly. All in all, HUL has ended up making a real mess (pun possibility?). Thats what makes us ask the question, are we crossing the lines at times In the advertisement, placing itself to be a better bet than Tide is anything but squeaky clean (pun intended). Having done so, the ugly head of commercial disparagement has been reared again. P & G, the brand owner of Tide has a valid claim bolstered by the string of case laws such as
33

Colgate Palmolive India Ltd. v. Anchor Health & Beauty Care Pvt. Ltd. that have discussed its elements.

The veracity of whether Rin is truly a better product in cleaning clothes owing to production superiority is a question beyond the scope of the debate. No trader lacks the ability to state his product to be finest in the market and stronger, finer or better than its competitors. It is outside the law however, for a trader to declare his product to be the best if at the same time he asserts his competitors product to be of inferior quality. Credit for the same goes to the matter of Reckitt Colman of India ltd vs. MP Ramachandran and Anr. Rather than poking fun at a competitor as Pepsi and Coke did in their famous ad wars, Rin went all the way to bash any brand image Tide might have enjoyed. Therefore, while scientific veracity of the claim cannot be judged at the outset, the ad itself is negative to its competitor and hence, implicates HUL. However, in a media blitz such as the one our world resides in, is any publicity of this sortwhere a product itself has not been alleged to be harmful to a user per se and has simply been deemed less superior, opinion shaping? In other words, would such an ad cause a consumer to actually think that Tide is not a good product and cause its users to change loyalties? Surely a discerning viewer and consumer would not have looked at the Sprite ad that poked fun at Mountain Dew and decide against consuming the latter! In fact, by resorting to such a form of advertisement, Rin has unnecessarily included Tide in their screen time. Creating the current has only given Tide free publicity funded by Rin. Any good publicity agent would tell you that a good ad must create an impression on the minds of the viewer. Companies should stick to the aim of making sure that their brand identity is firmly imprinted on viewer consciousness. However, ads such as the one made by Rin are counter-productive to the company if such controversies are going to give Tide free publicity anyway. The advantage if any is offset by the unnecessary publicity highlighted.

34

Why would HUL approve the campaign? According to The Nielsen Company, in January this year the value share of Tide (8.8 per cent) was almost double that of Rin (4.8 per cent). In January 2009 the gap between the two brands was closer when Tide enjoyed 8 per cent value share and Rin was behind at 5.1 per cent value share. To combat the fall in shares, this January HUL did drop prices of Rin Powder (1 kg) from Rs 70 to Rs 50. In its latest ad the price cut is being prominently displayed (Rs 25 for 500 gm) for the Rin pack while Tide Naturals is pegged at Rs 20 for 400 gm. There are also some promo pack sizes at Rs 10 for 250 gm. Well, if you cant beat them, at least defame them seems to be the mantra. Another interesting insight that this Rin-Tide saga has brought to light is the Consumer Connect With Brands. ACSI is acting on the issue based on the various consumer complaints received and even generally, consumers have been unanimous with their support for the Tide brand ( or the breach of conduct by Rin campaign)

Consequences The effect wasnt very beneficial for HUL

35

The Hindustan Unilever stock was beaten down by 4 per cent on the following days on concerns about a renewed price war emerging in the detergents category. HUL's much larger size, market share and large product portfolio certainly allows it greater leeway to persist with aggressive pricing strategies, than the smaller P&G. This suggests that the company may be able to eventually ward off this new threat to its market share as it did in 2004. However, for investors in the stock, this could mean loss of pricing power in one of HUL's key categories for some time to come. HUL's margins in its key soaps and detergents segment, which were at well over 20 per cent levels in 2003, moved significantly downwards in 2004 during its much publicised price war with P&G. Current margins in this segment hover at 14-15 per cent. With input costs beginning to chart an upward trajectory once again, and HUL fighting turf wars on a few other brands as well, this appears to be one additional worry that HUL can do without. No matter who has the last laugh in this HUL-P&G advertisement battle, this issue has made it clear that promotion through TV Advertisements have tremendous impact for brands and lines can be crossed to outdo the competition

36

CONCLUSION

Today a brand needs to focus on all the aspects of its business, whether it is external, internal, macro or micro. They should be analyzed based on PESTEL, before deciding the business strategy. A business is impacted by all these factors and so is the strategy of running the business. As we observed by the SWOT analysis of the two brands rin and tide that, every product offering should accentuate its strength and negate its weakness. The opportunities for both the brands were similar in nature but still by proper segmentation targeting and positioning, Tide was able to create its own category in the existing crowded detergent market of India. Even though both the detergents more or less provided the same kind of functional benefits still they had different marketing mix (4ps) so as to differentiate. But faced with a competition mudslinging and indulging in price war is never the best option. As we have observed that, rather than gaining anything HUL kept loosing its market share and stock valuation even after the defaming campaign. The answer to competition is innovation. Tide was able to sweep HUL off its feet was because they were not innovative enough. So if a brand is to be managed properly one should depend on two tools: marketing and innovation.
37

BIBLIOGRAPHY:

http://www.quickmba.com/marketing/mix/ http://www.scribd.com/doc/6464143/McDonalds-4Ps-Of-marketing http://www.greenfile.net/resources/downloads/mkt_mix.pdf http://www.researchconnect.com/downloadreport.asp?RepID=55248 http://managementfunda.com/tag/marketing/ http://www.scribd.com/doc/9823405/SWOT-Analysis-of-the-Detergent-Powder-Surf-Excel http://wiki.answers.com/Q/PESTLE_analysis_of_HUL

www.plu.edu/~simpsoja/doc/pg-pp.ppt

http://marketingteacher.com/lesson-store/lesson-segmentation.html http://202.205.89.79/download/materials/2007f/discipline/Marketing/Kevin%20Jones/6.%20Segm entation,%20Tarketing%20&%20Positioning%20for%20Competitive%20Advantage.ppt http://news.priorsmart.com/rin-v-tide-analysis-the-controversy-b388/ http://rajeshaithal.blogspot.com/2010/03/rin-vs-tide-ad-ethical.html

38

39