Académique Documents
Professionnel Documents
Culture Documents
Recommendations
Overview
CMK
Marketing
CBD
PS
F&A
IDS
CMK
Mileage, simplification for Plus and inexpensive, mildness and everyday cleaning for Naturals
are desired PODs; Improve value proposition through increasing Rs. 10 grammage and value
adds for other SKUs
Marketing
Target Plus 1 Kg in urban, 500 g and Rs. 10 in semi-urban and Naturals Rs. 10 & 500 g in rural;
Improve coverage in medium & small traditional
Achieve higher SOVs in select states; Focus on trade spends and D2D in key states for Plus &
radio and wholesale trade for Naturals
Communicate Tide Plus fitting in monthly along with whiteness for Plus and inexpensive product
along with everyday cleaning and mildness for Naturals
CBD
Drive Plus Rs. 10 in small and 500 g in medium traditional; Use trade spends for small, retailer
communication for medium traditional; Drive Plus 4 Kg pack in MR and 2 Kg in large traditional;
Dont prioritize 6 Kg
PS
Reductions in cost need to be achieved in packaging, plant expenses and transport costs
Capacity sharing with contractors, production shifting and maximizing reach improve supply
chain; Create additional capacity to manage 95% situations and improve utilization
Shift to local RM and FP, shift repacking lines to plant and use contract mfg. to improve network
F&A
Plan achieves 206 index sales in 16 v/s 13 but net margins deteriorate for both products
Supply chain improvement, innovation, price-downs & increased GTM spends by competition
are risks
IDS
Real time order replenishment and feedback systems can improve distribution with high reach
Develop pull based and entertaining advertising campaigns through mobile in rural market
CMK
Marketing
Tide
Naturals
7.5
7.4
1.24
CBD
PS
F&A
IDS
Tide
Naturals
22%
26%
0.76
2012-Current growth
rate
9%
17%
11
12
3%
50%
1.36
.83
3%
500%
15
10
22%
26%
Current
Offerings
CMK
Marketing
Ariel
CBD
Rin,
Tide Plus
PS
Wheel, Ghadi
Tide Naturals
F&A
IDS
Marketing
CBD
PS
F&A
IDS
Targeted PODs Begin driving on need gaps of monthly budget & small amounts
needed (overall mileage of the product), along with process simplification for the user,
while retaining strength on Keeps white clothes superbly whiter
CMK
These form the key equities needed to drive Tide Plus value in urban, and have the largest
perception gaps v/s actual importance
2.95
2.45
2.05
1.15
0.27
2.84
2.76
0.93
0.92
0.99
0.67
0.32
Avg Tide Plus Perf.
*From Consumer survey Consumers asked to rate importance of various attributes and Tide Plus performance in each; Only urban consumers considered
CMK
Marketing
CBD
PS
F&A
IDS
These equities have largest perception gaps and congruence with current positioning
Improvement in expensiveness will automatically improve on Good cleaning at an
affordable price
3.88
3.63
3.54
3.32
3.01
2.86
2.85
2.43
1.07
0.58
1.33
0.57
0.66
0.41
0.49
0.02
Avg Tide Nat Perf.
*From Consumer survey Consumers asked to rate importance of various attributes and Tide Naturals performance in each; Only rural consumers considered
CMK
Marketing
CBD
PS
F&A
IDS
4.34
4.08
3.97
3.68
3.51
2.83
2.81
1.79
2.71
3.65
2.75
1.87
Urban Imp.
Rural Imp.
*From Consumer survey Consumers asked to rate importance of various attributes and Tide Plus and Naturals performance in each
2.9
CMK
Marketing
CBD
PS
F&A
IDS
Initial trial is the key problem for Tide Plus, Nat both offer good value to non-trialists
but perform badly in terms of value share
*From Consumer survey Value rank obtained through weighted sum of consumer perceptions of multiple product performances along attributes mentioned
previously
CMK
Marketing
CBD
PS
F&A
IDS
Key barriers to trial are inertia being satisfied with existing brand and Naturals being perceived as too
expensive (wont fit into monthly budget primarily)
Major ways to bust this are
Strong communication focus on product being inexpensive
Driving Rs. 10 pack strongly to promote penetration and not focus on consumption
Drive trial through free samples in target states to induce trial
*From Consumer survey Consumers asked to rate top reasons as to why they do not purchase a produce; Only rural consumers considered
CMK
Marketing
CBD
PS
F&A
IDS
Price index has grown beyond sustained growth levels v/s Wheel and Ghadi
Value correction needs to be made by
Renewed focus on Rs. 10 pack of Tide Naturals (v/s Rs. 20), with a grammage increase to
200 g (118 and 113 index v/s Wheel and Ghadi respectively)
Renewed price-off on 1 Kg pack and free-bee promotion to improve value
Share-Tide
Index v/s Wheel
Share-Wheel
Share-Tide
*Pricing diagram not completely accurate monthly shares determined from diagram given in case
Share-Ghadi
CMK
Category
Size
Urban
10%
Marketing
P&G Share
36%
CBD
PS
Remaining Opportunity/
opportunity Market Size
64%
F&A
IDS
Objectives
6%
Semi-Urban
45%
27%
73%
33%
Rural
45%
11%
89%
40%
Target Plus 1 Kg in urban, 500 g and Rs. 10 in semiurban and Tide Naturals Rs. 10 & 500 g in rural
Overview
CMK
Marketing
CBD
PS
F&A
78.85
44.52
45
28.62
28
28
*From Consumer survey Consumers asked to give their monthly spends on laundry and residence, splits done based on that
IDS
CMK
Marketing
CBD
PS
F&A
IDS
76
60000
15000 20
6000060000
67
60
CMK
Marketing
CBD
PS
F&A
IDS
Achieve higher Share of Voice levels in different target states where both brands
respectively have good competitive position, TV is effective and which
Tide Plus
Tide Nat
Form a large portion of the total urban population for Tide Plus - Maharashtra, Tamil Nadu,
and Karnataka
Form a large part of total rural pop. for Naturals - WB, AP
States
Maharashtra
Uttar Pradesh
Tamil Nadu
West Bengal
Karnataka
Comp. Position
Good
Moderate
Good
Bad
Good
State
Comp. Position
Uttar Pradesh
Bihar
West Bengal
Maharashtra
Andhra Pradesh
Madhya Pradesh
Rajasthan
18.62%
11.05%
7.47%
7.39%
6.76%
6.31%
6.19%
TV Effectiveness
Good
Moderate
Good
Moderate
Good
Moderate
Low
Moderate
Good
Good
Low
Moderate
*Population figures obtained from http://censusindia.gov.in/ ; Competitive position through multiple articles and TV effectiveness through coverage & importance
of medium
CMK
Torture type
situations,
adding on
value with
whiteness
are most imp.
Marketing
CBD
Ease
of
effort is
good
second
ary
PS
F&A
IDS
Mildness
still
important
for
Naturals
CMK
Marketing
CBD
PS
F&A
IDS
Communication focus on value Tide Plus requires less and will fit in monthly budget
Secondary Tide Plus reduces workload for user and makes clothes look new
Continue driving Whiteness message along with these
Highest gap, 2nd
most important
need
High Gap
0.27
1.15
0.32
0.93
2.05
4.07
0.92
0.67
2.76
2.84
0.99
3.65
3.01
2.95
2.18
2.45
*From Consumer survey Consumers asked to rate importance of various attributes and Tide Plus performance in each; Only urban consumers considered
CMK
Marketing
CBD
PS
F&A
IDS
Everyday cleaning
High gap & desired POD
Mild existing strength
0.58
0.57
1.07
0.41
0.02
1.33
3.88
3.54
3.01
3.32
2.43
0.66
0.49
2.86
2.85
3.63
*From Consumer survey Consumers asked to rate importance of various attributes and Tide Naturals performance in each; Only rural consumers considered
CMK
Marketing
CBD
PS
F&A
IDS
Tide Plus Focus on trade spends (display and temporary price reductions to
increase value), driving door to door in key states (due to high cost) with low TV
coverage and TV ads on CS (highest reach)
Tide Naturals Focus on Radio (High success rate for low cost), wholesale trade
spends in semi-urban and TV on NCS (to reduce cost of advertising)
Tide Plus
Tide Naturals
*From Consumer survey Consumers who shifted to Tide in past 6 months asked to give what influenced their switch the most; Cost figures obtained from
multiple sources; Door to Door estimated
CMK
Marketing
CBD
PS
F&A
IDS
SKUs
Medium
Traditiona
l
Rs.
10
pack
15,000
500 g
15,000
Small
Traditiona
l
2,35,000
Rationale
Penetration into
semi-urban (low
monthly spend
v/s 500 gm price)
Penetration
Key trial SKU
currently
Modern Retail
Large Traditional
Small Traditional
Wholesale
Medium Traditional
CMK
Marketing
CBD
PS
F&A
IDS
Needs
Solutions
Increase communication & distribution reach in semiurban as part of Tide Plus share explosion
High-volume products
CMK
Marketing
CBD
PS
F&A
2 Kg performs better
than other SKUs at same
trade spends in Large
traditional
2 Kg Salience
2 Kg Trade Spend
4 Kg Salience
4 Kg Trade Spend
Medium traditional
performs worse than
large for same trade
spends
6 Kg Salience
6 Kg Trade Spend
IDS
CMK
Marketing
CBD
PS
F&A
IDS
82
129
110
74
CMK
Marketing
CBD
PS
Costs
Reasons
Raw Materials
Higher
Packaging Materials
Higher
Plant Expenses
Higher
Non-Mfg. Expenses
Lower
Excise
Higher
F&A
IDS
Recommendations
Innovations in compacted
powder formula (performance)
and packaging reduction
(packaging) usage of nonplastic, recyclable material
Shift to a contract
manufacturing model with
multiple parties close to
market / located in excise
free zones
Contract manufacturing
CMK
Marketing
CBD
PS
F&A
IDS
Contract Manufacturing
Cost Benefits
Reduce additional people cost in plants
Closer to market manufacturing reducing
transportation costs
Acquire contracts in excise free zones to reduce
costs
Reduce investment improves profitability
How to handle issues
Key issue is loss of decision making power once
contract is signed. To avoid this, introduce careful
screening mechanism taking into account
- Common goal-setting for stakeholders
involved
- Performance, quality and environmental
clauses
- Balanced Scorecard approach to monitoring
and review
CMK
Marketing
CBD
Opportunities
1
Demand
characteristics
Increase in demand
expected across
states
PS
F&A
IDS
Capacity
Sharing
Efficient mechanism
for utilizing capacity
within the plants
Growth of demand
induces supply side
strain
Capacity Utilization
Key sources of
advantage
Scheduling
Weekly workforce
scheduling
Manage some of the
peak time demand by
scheduling demands
in slack season
Specific competitive
challenges
Cross Utilization of
resources
Efficient
Distribution
Network
Maximize reach by
setting up or
collaborating with
existing distribution
networks
CMK
Marketing
CBD
PS
F&A
IDS
CMK
Marketing
CBD
PS
F&A
Microsoft Excel
Worksheet
IDS
Capacity
Addition
Plan
78%
77%
74%
72%
Est. Capacity
Cap. Utilization
CMK
Local
Marketing
CBD
PS
F&A
IDS
Storage
To DC
Port
To Small
retailer
To Retailer
To Depot
Transport
Storage
Mfg.
Repacking
CMK
Marketing
CBD
PS
F&A
Microsoft Excel
Worksheet
IDS
Inventory
mgmt.
2051
1656
1337
1080
97
65
43
126
84
164
55
Uttar Pradesh
Tamil Nadu
110
Rajasthan
214
71
DC-1
142
91
CMK
Marketing
CBD
PS
F&A
Microsoft Excel
Worksheet
Tide Plus
& Naturals
P&L
20
16
13
13
10
10
8
6
2013
2014
2015
2016
2013
2014
2015
2016
IDS
CMK
Marketing
Internal
Distribution reach
ROI on improving distribution reach into
small traditional will be bad if not
consistently backed by trade spends and
promotion
Supply chain optimization
Shifting of abroad operations to India and
reorientation of supply chain might be an
issue
Shifting repacking operations to main plants
through line extensions
Profit Margins
If proposed innovations fail, and competitive
response is very strong, profit margins may
be hit strongly, especially with low leeway
approaching 2016
CBD
PS
F&A
IDS
External
Price Downs
Ghadi and Wheel may both opt for price
downs, although recent trends in the
market show otherwise
Increased GTM spends
Distribution reach is already very good for
Ghadi and Wheel and is not a risk
Increased media spends, necessitating
higher marketing expenditure especially in
initial year, but margins are currently high
enough to be able to accommodate this
- Ghadi operates on a low marketing
budget and low margins already, it
will not significantly impact SOV
spends
- Communicate value proposition
strongly v/s Wheel due to high copy
effectiveness
Marketing
CBD
PS
F&A
IDS
CMK
Media Penetration*
* Report on Internet in Rural India 2012 by IAMAI and IMRB, News articles in Economic Times Forget its faith , rural Indias poor
http://articles.economictimes.indiatimes.com/2007-04-06/news/28473484_1_rural-cousins-rural-consumers-rural-counterparts
CMK
Marketing
CBD
PS
F&A
IDS
Mobile penetration high in rural India and with low cost of customer awareness
Develop pull based advertising programs
Missed call program - Advertise through radio & TV
Recall numbers with entertaining messages as Entertainment ranks high in media usage
Parameters for ROI No. of missed calls, Time a customer stayed on the call back .
* Report on radio listening and televiewing behaviour of rural women by Geeta Malagar
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