STRATEGY FOR TIDE IN INDIA

Submitted By:Rahul Chugh

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

Tide Naturals is in line with required growth while

Tide Plus needs explosion
Overview

CMK

Marketing

Target Vol. CAGRs needed

Tide
Plus

Tide
Naturals

Current Vol. Share

7.5

7.4

Current Price Index

1.24

Target Vol. Share

(FY15-16)

CBD

PS

F&A

IDS

compared with current growth

Tide
Plus

Tide
Naturals

Reqd. Vol CAGR

22%

26%

0.76

2012-Current growth
rate

9%

17%

11

12

2011-12 Growth rate

3%

50%

New Price Index

1.36

.83

2010-11 Growth rate

3%

500%

Target Val. Share

15

10

Reqd. Vol. CAGR

22%

26%

Tide Naturals performance closely matches

target, while Tide Plus needs severe
explosion in share

Look to drive Tide Plus in semi-urban and Tide

Naturals in rural
Overview

Current
Offerings

CMK

Marketing

Ariel

CBD

Rin,
Tide Plus

PS

Wheel, Ghadi
Tide Naturals

F&A

IDS

Monthly budget, small amounts and simplification

are additional desired PODs for Plus in urban
Overview

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

Possible Can drive scent line equity

4.07
3.65
3.01
2.18

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.

Gap v/s Avg Imp.

*From Consumer survey Consumers asked to rate importance of various attributes and Tide Plus performance in each; Only urban consumers considered

Inexpensive, mildness and everyday cleaning (right

amount) are key PODs for naturals in rural
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Targeted PODs Need to improve key weakness in being perceived as expensive,

along with good everyday cleaning (message that basically it gives the right level of
price and performance to rural consumers), while retaining strength in mildness

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.

Gap v/s Avg Imp.

*From Consumer survey Consumers asked to rate importance of various attributes and Tide Naturals performance in each; Only rural consumers considered

Plus targets focus on whiteness and mileage while

Naturals targets focus on mildness and inexpensive
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Urban consumer (Tide Plus target) places premium on whiteness, cleaning

with small amount and working with Washing Machines as well
Rural consumer (Tide Naturals target) prizes product being inexpensive
and mildness just the right level of price and performance
4.46

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

Despite high value proposition, share of Tide is low

due to shopper barrier reducing trial
Overview

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

Barrier comes in at shopper level due to cost and not value

Being expensive primarily means high price point that will not fit into monthly budget for Tide
Plus and Naturals both, as well as product not being very special / offering anything new
compared to others for Tide Naturals

*From Consumer survey Value rank obtained through weighted sum of consumer perceptions of multiple product performances along attributes mentioned
previously

Product being too expensive (not fitting budget) and

inertia are barriers to trial for Naturals
Overview

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

Improve value proposition through increasing Rs. 10

grammage and value adds for other SKUs
Overview

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

Slowdown in Tide growth

when Nat > 120 index of
Wheel, growth in Wheel

Share-Tide
Index v/s Wheel

Slowdown in Tide growth

when Nat > 115 index of
Ghadi, growth in Ghadi

Share-Wheel
Share-Tide

*Pricing diagram not completely accurate monthly shares determined from diagram given in case

Share-Ghadi

Index v/s Ghadi

Focus on consumption in urban, penetration with

Plus in semi-urban and in rural with Naturals
Overview

CMK

Category
Size

Urban

10%

Marketing

P&G Share

36%

CBD

PS

Remaining Opportunity/
opportunity Market Size

64%

F&A

IDS

Objectives

6%

Focus on increasing consumption Additional

penetration opportunity low Focus on larger
packs

Semi-Urban

45%

27%

73%

33%

Penetrate further with Tide Focus on smaller

packs for Tide Plus to uptier consumers and
larger pack for Tide Naturals

Rural

45%

11%

89%

40%

Penetrate further with Tide Naturals Focus on

smaller packs initially

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

Tide Plus 1 Kg onwards to

increase consumption
92

Tide Plus 500 gm, Rs. 10 to uptier

consumers, improve penetration
Tide Naturals 1 Kg

78.85

44.52

45

28.62

28

Monthly spend on detergent

Tide Naturals 500 gm, Rs.

10 to convert to Tide brand

Tide Plus Bag prices

28

Tide Naturals Bag prices

*From Consumer survey Consumers asked to give their monthly spends on laundry and residence, splits done based on that

IDS

Improve coverage of Plus in medium & small

traditional, Naturals in medium traditional
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Tide Plus growth target is towards

smaller town classes where
medium traditional is more
prevalent need to increase
coverage
Tide Naturals store coverage
limited v/s Tide Plus Target
medium traditional in rural
1000000
857143

3500 184 627 326

15000 1579 106

Tide Plus Stores

76

60000
15000 20

Tide Nat Stores

Tide Plus Sales/Store

Tide Nat Sales/Store

6000060000

67

60

Achieve higher SOVs in Maharashtra, TN,

Karnataka for Plus & WB and AP for Naturals
Overview

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

Urban pop. salience

13.48%
11.79%
9.25%
7.73%
6.25%

Comp. Position
Good
Moderate
Good
Bad
Good

State

Rural pop. salience

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%

Prev. Growth focus - Good

Good
Good
Tide Plus focus
Moderate
Prev. Growth focus - Good
Moderate

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

Value along with whiteness for Plus and mildness for

Tide, in torture test situation perform well
Overview

CMK

Torture type
situations,
adding on
value with
whiteness
are most imp.

Marketing

Making clothes look good

as new and hence
improving confidence is
good secondary imp.

*Ads from http://www.youtube.com/ and P&G Dream Team FB page

CBD
Ease
of
effort is
good
second
ary

PS

F&A

Pure whitenessbased message is

not enough

IDS

Mildness
still
important
for
Naturals

Communicate Tide Plus fitting in monthly budget

due to requiring less along with whiteness for Plus
Overview

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

Monthly budget key trial barrier

for Tide Plus, small amount
adds to mileage proposition

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

Avg Tide Plus Perf.

2.45

Gap v/s Avg Imp.

*From Consumer survey Consumers asked to rate importance of various attributes and Tide Plus performance in each; Only urban consumers considered

Communicate inexpensive product along with

everyday cleaning and mildness for Naturals
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Communication focus on inexpensive product, along with everyday

cleaning
Continue driving mildness which is strong
Highest gap, 3rd
most important
need

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

Avg Tide Nat Perf.

0.66

0.49

2.86

2.85

3.63

Gap v/s Avg Imp.

*From Consumer survey Consumers asked to rate importance of various attributes and Tide Naturals performance in each; Only rural consumers considered

Additionaly, use trade spends and D2D in key states

for Plus & radio and wholesale trade for Naturals
Overview

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

Drive Plus Rs. 10 in small and 500 g in medium

traditional; Use trade spends for small traditional
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Drive Rs. 10 pack in small traditional and 500 g in medium traditional

Medium traditional trade spend v/s salience performance is bad focus on
communication
Small traditional gives good return Drive through trade spends (better ROI than
other media as well)
Channel

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

For medium traditional, use retailer communication,

driving Plus Rs. 10 & increased marketing
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Medium & Small traditional

Needs

Solutions

More marketing campaigns

Increase communication & distribution reach in semiurban as part of Tide Plus share explosion

Smaller size SKUs & storage

Communicate, Increase drive of Rs. 10 SKU in Small

traditional, in line with previous strategy to increase
penetration

Low Inventory costs, working capital

Reporting and tracking at depots of transactions, credit

incentives to smaller retailers

High-volume products

Rs. 10 will be a focus SKU for trial in Small and medium

traditional and 500 g in Medium traditional

*Key dealer needs obtained from telephonic interviews with dealers

To increase consumption, drive Plus 4 Kg pack in

MR and 2 Kg in large traditional; Dont prioritize 6 Kg
Overview

CMK

Marketing

CBD

PS

F&A

Larger packs focus must be on high volume stores

Drive 4 Kg in Modern Retail and 2 Kg in Large traditional
Do not prioritize 6 Kg SKU business salience is already low
4 Kg has
disproportionately
good perf. In
Modern Retail

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

Trade spends for 4 Kg in MR and 2 Kg in Large

traditional are the best ways to drive sales
Overview

CMK

Marketing

CBD

PS

F&A

IDS

4 Kg in MR performs well v/s 2 Kg and Tide Plus average in MR on a

relative salience v/s trade spends index Drive 4 Kg in MR through trade
spends
Similarly drive 2 Kg in Large traditional through improved trade spends

4 Kg salience v/s spend clearly

outperforms average and 2 Kg in MR
89

82

129

110

2 Kg salience v/s spend clearly outperforms

average and 4 Kg in Large Traditional
105

74

Rel. Salience / Spend Index

Reductions in cost need to be achieved in

packaging, plant expenses and transport costs
Overview

CMK

Marketing

CBD

PS

Costs

Tide Nat v/s Popular

Reasons

Raw Materials

Higher

Superior raw materials

Packaging Materials

Higher

Better laminate used

Plant Expenses

Equal for contract, higher for

P&G plant

Higher people cost

Transport & W/H

Higher

Competitor production takes

place in CM states across
India

Non-Mfg. Expenses

Lower

Excise

Higher

Competitor plants in excisefree zones

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

Innovation ideas from P&G Sustainability report - http://www.pg.com/en_IN/downloads/sustainability/reports/PG_2011_Sustainability_Report.pdf

Develop reduced packaging, powder compaction,

zero mfg. waste and rational contract manufacturing
Overview

CMK

Marketing

Innovations to reduce cost

Packaging innovations to reduce quantity of
material
Reduced packaging, through use of better
materials, thinner laminates and recycling
Green packaging, eliminating plastic and greater
usage of biodegradable waste
Performance innovations in product
Powder compaction Use of denser cleaning
agents, reduce product volume by 33%
Up to 6% fewer trucks, 28% less corrugate and
6.5% less fuel
Manufacturing innovations to reduce variable cost
Achieve zero manufacturing waste sent to landfill
through optimizing recycling, identify solutions for
selling scrap material in niche markets through
GARP team

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

Innovation ideas from P&G Sustainability report - http://www.pg.com/en_IN/downloads/sustainability/reports/PG_2011_Sustainability_Report.pdf

Capacity sharing with contractors, production

shifting and maximizing reach improve supply chain
Overview

CMK

Marketing

CBD

Opportunities
1

Demand
characteristics

Increase in demand
expected across
states

PS

F&A

IDS

What will drive the winner?

2

Capacity
Sharing

Efficient mechanism
for utilizing capacity
within the plants

How many potential

customers, how much
value is created?

Ability to select &

modify contract
manufacturers supply

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

In house & acquired

expertise in
managing the supply
chain

Adopt lean supply chain to achieve continuous

optimization and make contractors as stakeholders
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Adopt a Lean supply chain planning model focused on continuous

improvement of planning process through
Using single forecasts with internal consensus
Collecting data with high accuracy for right level of aggregation and
continuous improvement in process
Clear definition of stakeholder responsibilities
Plan processes to address failures by impact
Alert systems for deviations
Bottom-up feedback loops and short interval controls
Visual review and reporting
Culture of employee empowerment

Create additional capacity (176 index in 16 v/s 13)

to manage 95% situations and improve utilization
Overview

CMK

Marketing

CBD

PS

Capacity addition planning based on

Poisson demand process by month and
95% probability of fulfilling peak demand
Constantly improving utilization rates,
reaching 78% by 2016

F&A

Microsoft Excel
Worksheet

IDS

Capacity
Addition
Plan

78%
77%

74%

72%

Sales Volume (est)

Est. Capacity

Cap. Utilization

Shift to local RM and FP, shift repacking lines to

plant and use contract mfg. to improve network
Overview

CMK
Local

Marketing

CBD

PS

F&A

IDS

Storage

Additional storage, costs,

handling complexity due to
import shift to local RM prod.
Abroad

To DC

Port

Repacking additional time, lowvalue-add, increase lines in

plant for repack
Far from market
Contract model to
move closer, lower
transport, storage
cost, time

Additional supply planning

complexity, high lead times
eliminate import of FP

To Small
retailer

To Retailer

To Depot
Transport

Storage

Mfg.

Repacking

Benchmark inventory v/s proposed models in 3

states UP, TN and Rajasthan
Overview

CMK

Marketing

CBD

PS

Inventory forecast shown for 3 states with

various sizes UP, TN & Rajasthan
Inventory for DCs assumed based on 2
DCs in India (2 plants manufacturing
F&HC)
Inventory based on EOQ Model

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

Plan achieves 206 index sales in 16 v/s 13 but net

margins deteriorate for both products
Overview

CMK

Marketing

CBD

Overall, sales more than doubles, and net

sales to company increases by 198 index
for Tide Plus and 219 index by Tide
Naturals from 2013 to 2016
Net Margins for Tide Plus and Tide
Naturals decline to 56 and 51 index
respectively from 2013 to 2016

PS

F&A

Microsoft Excel
Worksheet

Tide Plus
& Naturals
P&L

Gross margins increase

while net margins
decrease for both Tide
Plus and Naturals

20
16
13

13
10

10
8
6

2013

2014

2015

2016

2013

2014

2015

2016

IDS

Supply chain improvement, innovation, price-downs

& increased GTM spends by competition are risks
Overview

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

Real time order replenishment and feedback

systems can improve distribution with high reach
Overview

Marketing

CBD

PS

F&A

IDS

Real Time Order Replenishment system

CMK

Mobile platform for real time order

replenishment system at a retailer level in Tier
III and IV cities
Direct connectivity with wholesalers and
company database
Parameters for ROI Improvement in
efficiency , decrease in reorder times

Media Penetration*

Real Time Feedback system

Dedicated SMS Gateway to receive feedback

from customers on the product and
distribution system of Tide
Parameters for ROI Number of SMSs per
month, Relevance of feedback, Increase in
customer satisfaction

Decreasing cost per customer awareness

* 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

Develop pull based and entertaining advertising

campaigns through mobile in rural market
Overview

CMK

Marketing

CBD

PS

F&A

IDS

Advertising using Mobile medium

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 .

TV - Programmes preferred by Rural Women*

Radio - Programs preferred by Rural Women *

* Report on radio listening and televiewing behaviour of rural women by Geeta Malagar

THANK YOU