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| NAME VIVEK MISHRA
TIDE’S MARKETING CONCEPT
IS TIDE USING A PROPER MARKETING MIX?
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
Term Paper
Is Tide Using a Proper Marketing Mix?
Many may ask what a marketing mix is. A marketing mix consists of four basic
categories that relate to the given product. These four categories as enumerated in the textbook
page 375 are, developing a product strategy, creating a pricing strategy, elaborating a distribution
strategy, and finally having a promotion strategy. If these four categories are elaborated properly
and ethically, then the product will have a proper marketing mix. This term paper will be
discovering if Tide, the famous laundry detergent, has or does not have a proper marketing mix.
The first part of the marketing mix consists of having a product strategy. To succeed in
this category, you must have a brand name, a packaging, a choice of branding colours, and a
warranty. In Tide’s case, Procter & Gamble, Tide’s owner, had already chosen this name back in
1946 ((1)) when Tide was first launched. According to the dictionary, the word Tide means “
rise or move forward; "surging waves"”, and that is exactly what they had in mind when they
released this product. It was a move forward in a non-explored market. According to P&G ((1)),
the word Tide was chosen but no one knows why, and they promised that Tide washed “cleaner
than soap”. Tide’s packaging strategy was one of a kind, especially back then. Over the years,
P&G have improved the container, but always kept the same appearance. They kept the circular
target shaped background and almost the same colours, the bright orange, and yellow. These
colours have an impact on the success of the brand. The orange signifies a vibrant product,
which is also associated with warmth. The yellow, is a warm cheerful colour and according to
the textbook ((5)) page 425, it is the lead colour in products used in homes through 2004. The
brand is now home to over 41 different kinds of detergents ((3)), from Tide-To-Go, to Tide with
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
Baking Soda liquid or powder. This huge expansion in their line of
products makes it easy for the consumer to choose the Tide products
versus other companies. If you look at the picture taken from my
local supermarket ((4)), Tide’s products overwhelm the competition.
Also since this brand name is well known, we will buy this product “not only for what [it] does,
but also for what [it] means” as stated on page 375 of the textbook ((5)). Combined with the
assuring new slogan “Knows Fabrics Best”, ((2)) Tide can simultaneously assure the consumers
that their brand is better and present their huge range of products to them. According to my
survey conducted at Metro ((4)) Tide’s successful branding, packaging, and quality, is making it
the best selling brand of detergent. Therefore, since Tide has an appealing
packaging, and has quality products according to ConsumerReports.org ((10)), I
can conclude that Tide has a good product strategy.
The second part of the marketing mix consists of the pricing strategy. Having a good
product is one thing, but how does it compare price wise is another. Since the days Tide first
started, the original slogan “Washday Miracle” was created because the advertisers were
confident that “Tide’s performance was truly superior” ((1)). Today, Tide still believes in this
original statement and armed with its new slogan “Knows Fabrics Best” ((3)), Tide can continue
to be competitive in this market. By releasing a line extension (411) as stated in the product
strategy, Tide’s product life cycle (414) continues to go strong and rejuvenates the brand name.
According to page 415 ((5)), Tide is probably in the maturity stage, meaning it does not lose any
money, but must price aggressively and must use
different strategies to continue to prosper.
Survey
Tide Other
7 3
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
As we dig deeper into Tide’s prices, we discover that Tide is well priced as it continues to
deliver the message of higher quality, but manage to sell much more than any other brand. I
went to various stores to see how Tide was priced, and found out the following at Metro: Tide:
8.99$/2.95L, Sunlight: 8.99$/2.95L, Selection Mérite: 5.99$/2.95L ((4)). At Costco ((7)), Tide
was the highest priced detergent at 23.99$/8.87L, compared to Sunlight at 17.99$/8.9L.
Although these price differences, a look into the Costco yield management system (423)
AS400, reveals that Tide is still the best seller per day. Going back to the prices found at Metro,
Tide could not be a lower price because it would then visually seem as if Sunlight, produced by
Unilever, is a better product then Tide. It would also lead to believe that Tide is in the
price/quality category of the dealer brands and generic products, which is not what P&G wants to
display their products as being. In addition, if we compare pricing using the ConsumerReports
rating ((10)), we see that Tide is a high quality product that is well priced ((6)) within the other
products shown in the table, ranging from 27-35 cents per load. Therefore, to conclude this part
of the marketing mix, I can say that Tide has a very fair pricing strategy because of the above
information.
The third part of the marketing mix consists of the distribution strategy of P&G’s brand
Tide. Since Tide is an internationally known brand, it can be found in any stores including
corner stores. During my research, I found Tide to be in every supermarket and even in a
wholesaler such as Costco. Being in a wholesaler such as Costco, Tide can sell huge amounts of
its product in an environment where consumers purchase in bulk. In addition, as the image
inserted in paragraph two shows, in retail stores, Tide owns the shelves. Their products
overpower all the other brands due to Tide’s smart line extension strategy, which almost
guarantees the purchase. Although their product is more expensive at Costco, the AS400 system
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
shows that this brand sells more than any other one. Tide’s distribution is referred to being an
intensive distribution as page 446 ((5)) explains, since we can find it everywhere. Since
detergent is a convenience product (404), Tide must assure that consumers will never have to
choose a substitute product since Tide is not in stock at a specific location. Having this happen,
could result in a customer-losing situation if they discover that they like the new brand better.
To recapitulate this paragraph in one sentence, we could say that Tide’s distribution strategy is
built on the foundation of trying to reach as many consumers as possible.
The fourth and final strategy of the four P’s (375) is the promotion strategy. The
promotion strategy is perhaps the most important part of the marketing mix since the brand
depends on the marketing to highlight its assets. Tide’s assets are its huge line of products,
which require a solid brand name to be able to sell. We can say that over the years, Tide’s
brand equity (406) has grown a considerable amount that now enables them to expand their
brand line without losing profits. This ability is all thanks to successful marketing and
promotion of the brand name. Back in 1945 when Tide was still in the development stage, a
critical decision had to be made regarding the choice of going with the new product or not. Tide
was a new kind of product, created with synthetic compounds instead of soap chemicals ((8)).
This meant that P&G had to create a good strategy to promote this product. Originally, Tide ads
were found in magazines targeted to housewives, but today, Tide is targeted to the family as a
whole. Their advertisements can be found on TV, in magazines, on the Internet, by direct mail,
and in-store. Their TV and magazine ads are usually targeted to a demographic segmentation
(383), which usually is set to females or homemakers. Their internet advertisement is usually in
the form of online mini banner games, which allow users to use the Tide to Go product to wash
fabrics. This is usually targeted to a wide variety of people since everybody likes little games.
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
The in-store advertisement is very important, especially in supermarkets. Tide’s in-store
advertisement is in the form of coupons. These coupons do not lower the price on the tag, but
only on the receipt. Therefore this still gives the illusion that Tide is better because of the higher
price, but gives the consumer extra customer satisfaction (369) after purchase since it costs less.
Advertisement varies from weak strategies, middle-strength strategies, and strong strategies
((9)). In Tide’s case, they always aim for the strong promotion strategy since many of their
commercials are aimed towards specific people who usually purchase the detergent. In addition,
Tide realizes that if they can reproduce a real life situation in a commercial, they will captivate
the market that associates with it. An example of this is the Tide soccer commercials, where the
kids get dirty while playing soccer and the moms just cheer on without a care because they know
the grass will come off. Tide’s high-quality perception (380) due to good marketing allows the
brand to sell for more than the competitors do. To conclude, Tide is doing an effective job
promoting their line of products since it can continue to develop and sell new products without
disrupting profits. This is due to their strong marketing concept (368) that is intentionally made
so that consumers can identify themselves while watching the commercials, and enjoy
purchasing the product with incentives such as coupons.
After examining Tide’s marketing mix through the 4 P’s, product, pricing, place
(distribution), and promotion, I can conclude that Tide has a good marketing mix. This is due to
the excellence of the brand, the quality of their products, the appealing packages, the convincing
advertisements, and the competitive pricing. All of these points allow Procter & Gamble to
market and sell a product that consumers are willing to buy at a higher price than other products.
This also makes Tide a very desirable product for P&G to invest in since it generates high
revenue. So again, in conclusion, Tide is using a proper marketing mix.
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
WORD COUNT: 1, 671 words
** Attached is the ConsumerReports.org table, as it requires a membership to view. (I have one)
** Also, the information found on Tide at Costco using the AS400 system is due to the fact that I
work there and can access this information.
Bibliography
(1). (2007). American Chemical Society, National Historic Chemical Landmarks. Retrieved
October 24, 2007, from The Development of Tide - Marketing Tide:
http://acswebcontent.acs.org/landmarks/landmarks/tide/marketing.html
(2). (2006, May 1). The McGraw-Hill Companies, BusinessWeek. Retrieved October 24, 2007,
from Detergent Can Be So Much More:
http://www.businessweek.com/magazine/content/06_18/b3982087.htm
(3). (2007). Procter & Gamble, Tide®. Retrieved October 24, 2007, from Laundry Detergent
Product Information from Tide.com: http://www.tide.com/en_CA/products/index.jsp
(4). (2007, October 25). Metro Groceries, Metro Plus Marché Desjardins. 2200, Boul. Du
Faubourg, Boisbriand, Québec, Canada.
(5). (2005). Althouse, Rose, Allan, Gitman, McDaniel, The Future of Business 2nd Edition.
Ontario: Thomson Canada Limited.
(6). (1988 (2004), October 10). FindArticles. Retrieved October 26, 2007, from Tide takes the
honors in household cleaners:
http://findarticles.com/p/articles/mi_m3092/is_n20_v27/ai_6733424
(7). (2007, October 25). Costco Wholesale. 3600 Ave Des Grandes Tourelles, Boisbriand,
Quebec, Canada.
(8). (2007, December 07). Harvard Business School. Retrieved October 26, 2007, from How
Tide Cleaned Up the Competition: http://hbswk.hbs.edu/archive/4254.html
(9). (2007, June 19). Wikimedia Foundation, Inc (Wikipedia). Retrieved October 26, 2007, from
Creative strategies in advertising: http://en.wikipedia.org/wiki/Creative_strategies_in_advertising
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
(10). (2007, January). ConsumerReports.org. Retrieved October 26, 2007 , from Laundry
Detergents, Ratings 1/07: http://www.consumerreports.org/cro/home-garden/cleaning-
supplies/detergents/laundry-detergents-1-07/ratings/0107_soap_rate.htm
Key Terms Used…
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013
NAME / VIVEK MISHRA
IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS
1227
December
29, 2013

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Marketing Mix of Tide

  • 1. 10/12/2013 | NAME VIVEK MISHRA TIDE’S MARKETING CONCEPT IS TIDE USING A PROPER MARKETING MIX?
  • 2. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013 Term Paper Is Tide Using a Proper Marketing Mix? Many may ask what a marketing mix is. A marketing mix consists of four basic categories that relate to the given product. These four categories as enumerated in the textbook page 375 are, developing a product strategy, creating a pricing strategy, elaborating a distribution strategy, and finally having a promotion strategy. If these four categories are elaborated properly and ethically, then the product will have a proper marketing mix. This term paper will be discovering if Tide, the famous laundry detergent, has or does not have a proper marketing mix. The first part of the marketing mix consists of having a product strategy. To succeed in this category, you must have a brand name, a packaging, a choice of branding colours, and a warranty. In Tide’s case, Procter & Gamble, Tide’s owner, had already chosen this name back in 1946 ((1)) when Tide was first launched. According to the dictionary, the word Tide means “ rise or move forward; "surging waves"”, and that is exactly what they had in mind when they released this product. It was a move forward in a non-explored market. According to P&G ((1)), the word Tide was chosen but no one knows why, and they promised that Tide washed “cleaner than soap”. Tide’s packaging strategy was one of a kind, especially back then. Over the years, P&G have improved the container, but always kept the same appearance. They kept the circular target shaped background and almost the same colours, the bright orange, and yellow. These colours have an impact on the success of the brand. The orange signifies a vibrant product, which is also associated with warmth. The yellow, is a warm cheerful colour and according to the textbook ((5)) page 425, it is the lead colour in products used in homes through 2004. The brand is now home to over 41 different kinds of detergents ((3)), from Tide-To-Go, to Tide with
  • 3. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013 Baking Soda liquid or powder. This huge expansion in their line of products makes it easy for the consumer to choose the Tide products versus other companies. If you look at the picture taken from my local supermarket ((4)), Tide’s products overwhelm the competition. Also since this brand name is well known, we will buy this product “not only for what [it] does, but also for what [it] means” as stated on page 375 of the textbook ((5)). Combined with the assuring new slogan “Knows Fabrics Best”, ((2)) Tide can simultaneously assure the consumers that their brand is better and present their huge range of products to them. According to my survey conducted at Metro ((4)) Tide’s successful branding, packaging, and quality, is making it the best selling brand of detergent. Therefore, since Tide has an appealing packaging, and has quality products according to ConsumerReports.org ((10)), I can conclude that Tide has a good product strategy. The second part of the marketing mix consists of the pricing strategy. Having a good product is one thing, but how does it compare price wise is another. Since the days Tide first started, the original slogan “Washday Miracle” was created because the advertisers were confident that “Tide’s performance was truly superior” ((1)). Today, Tide still believes in this original statement and armed with its new slogan “Knows Fabrics Best” ((3)), Tide can continue to be competitive in this market. By releasing a line extension (411) as stated in the product strategy, Tide’s product life cycle (414) continues to go strong and rejuvenates the brand name. According to page 415 ((5)), Tide is probably in the maturity stage, meaning it does not lose any money, but must price aggressively and must use different strategies to continue to prosper. Survey Tide Other 7 3
  • 4. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013 As we dig deeper into Tide’s prices, we discover that Tide is well priced as it continues to deliver the message of higher quality, but manage to sell much more than any other brand. I went to various stores to see how Tide was priced, and found out the following at Metro: Tide: 8.99$/2.95L, Sunlight: 8.99$/2.95L, Selection Mérite: 5.99$/2.95L ((4)). At Costco ((7)), Tide was the highest priced detergent at 23.99$/8.87L, compared to Sunlight at 17.99$/8.9L. Although these price differences, a look into the Costco yield management system (423) AS400, reveals that Tide is still the best seller per day. Going back to the prices found at Metro, Tide could not be a lower price because it would then visually seem as if Sunlight, produced by Unilever, is a better product then Tide. It would also lead to believe that Tide is in the price/quality category of the dealer brands and generic products, which is not what P&G wants to display their products as being. In addition, if we compare pricing using the ConsumerReports rating ((10)), we see that Tide is a high quality product that is well priced ((6)) within the other products shown in the table, ranging from 27-35 cents per load. Therefore, to conclude this part of the marketing mix, I can say that Tide has a very fair pricing strategy because of the above information. The third part of the marketing mix consists of the distribution strategy of P&G’s brand Tide. Since Tide is an internationally known brand, it can be found in any stores including corner stores. During my research, I found Tide to be in every supermarket and even in a wholesaler such as Costco. Being in a wholesaler such as Costco, Tide can sell huge amounts of its product in an environment where consumers purchase in bulk. In addition, as the image inserted in paragraph two shows, in retail stores, Tide owns the shelves. Their products overpower all the other brands due to Tide’s smart line extension strategy, which almost guarantees the purchase. Although their product is more expensive at Costco, the AS400 system
  • 5. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013 shows that this brand sells more than any other one. Tide’s distribution is referred to being an intensive distribution as page 446 ((5)) explains, since we can find it everywhere. Since detergent is a convenience product (404), Tide must assure that consumers will never have to choose a substitute product since Tide is not in stock at a specific location. Having this happen, could result in a customer-losing situation if they discover that they like the new brand better. To recapitulate this paragraph in one sentence, we could say that Tide’s distribution strategy is built on the foundation of trying to reach as many consumers as possible. The fourth and final strategy of the four P’s (375) is the promotion strategy. The promotion strategy is perhaps the most important part of the marketing mix since the brand depends on the marketing to highlight its assets. Tide’s assets are its huge line of products, which require a solid brand name to be able to sell. We can say that over the years, Tide’s brand equity (406) has grown a considerable amount that now enables them to expand their brand line without losing profits. This ability is all thanks to successful marketing and promotion of the brand name. Back in 1945 when Tide was still in the development stage, a critical decision had to be made regarding the choice of going with the new product or not. Tide was a new kind of product, created with synthetic compounds instead of soap chemicals ((8)). This meant that P&G had to create a good strategy to promote this product. Originally, Tide ads were found in magazines targeted to housewives, but today, Tide is targeted to the family as a whole. Their advertisements can be found on TV, in magazines, on the Internet, by direct mail, and in-store. Their TV and magazine ads are usually targeted to a demographic segmentation (383), which usually is set to females or homemakers. Their internet advertisement is usually in the form of online mini banner games, which allow users to use the Tide to Go product to wash fabrics. This is usually targeted to a wide variety of people since everybody likes little games.
  • 6. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013 The in-store advertisement is very important, especially in supermarkets. Tide’s in-store advertisement is in the form of coupons. These coupons do not lower the price on the tag, but only on the receipt. Therefore this still gives the illusion that Tide is better because of the higher price, but gives the consumer extra customer satisfaction (369) after purchase since it costs less. Advertisement varies from weak strategies, middle-strength strategies, and strong strategies ((9)). In Tide’s case, they always aim for the strong promotion strategy since many of their commercials are aimed towards specific people who usually purchase the detergent. In addition, Tide realizes that if they can reproduce a real life situation in a commercial, they will captivate the market that associates with it. An example of this is the Tide soccer commercials, where the kids get dirty while playing soccer and the moms just cheer on without a care because they know the grass will come off. Tide’s high-quality perception (380) due to good marketing allows the brand to sell for more than the competitors do. To conclude, Tide is doing an effective job promoting their line of products since it can continue to develop and sell new products without disrupting profits. This is due to their strong marketing concept (368) that is intentionally made so that consumers can identify themselves while watching the commercials, and enjoy purchasing the product with incentives such as coupons. After examining Tide’s marketing mix through the 4 P’s, product, pricing, place (distribution), and promotion, I can conclude that Tide has a good marketing mix. This is due to the excellence of the brand, the quality of their products, the appealing packages, the convincing advertisements, and the competitive pricing. All of these points allow Procter & Gamble to market and sell a product that consumers are willing to buy at a higher price than other products. This also makes Tide a very desirable product for P&G to invest in since it generates high revenue. So again, in conclusion, Tide is using a proper marketing mix.
  • 7. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013 WORD COUNT: 1, 671 words ** Attached is the ConsumerReports.org table, as it requires a membership to view. (I have one) ** Also, the information found on Tide at Costco using the AS400 system is due to the fact that I work there and can access this information. Bibliography (1). (2007). American Chemical Society, National Historic Chemical Landmarks. Retrieved October 24, 2007, from The Development of Tide - Marketing Tide: http://acswebcontent.acs.org/landmarks/landmarks/tide/marketing.html (2). (2006, May 1). The McGraw-Hill Companies, BusinessWeek. Retrieved October 24, 2007, from Detergent Can Be So Much More: http://www.businessweek.com/magazine/content/06_18/b3982087.htm (3). (2007). Procter & Gamble, Tide®. Retrieved October 24, 2007, from Laundry Detergent Product Information from Tide.com: http://www.tide.com/en_CA/products/index.jsp (4). (2007, October 25). Metro Groceries, Metro Plus Marché Desjardins. 2200, Boul. Du Faubourg, Boisbriand, Québec, Canada. (5). (2005). Althouse, Rose, Allan, Gitman, McDaniel, The Future of Business 2nd Edition. Ontario: Thomson Canada Limited. (6). (1988 (2004), October 10). FindArticles. Retrieved October 26, 2007, from Tide takes the honors in household cleaners: http://findarticles.com/p/articles/mi_m3092/is_n20_v27/ai_6733424 (7). (2007, October 25). Costco Wholesale. 3600 Ave Des Grandes Tourelles, Boisbriand, Quebec, Canada. (8). (2007, December 07). Harvard Business School. Retrieved October 26, 2007, from How Tide Cleaned Up the Competition: http://hbswk.hbs.edu/archive/4254.html (9). (2007, June 19). Wikimedia Foundation, Inc (Wikipedia). Retrieved October 26, 2007, from Creative strategies in advertising: http://en.wikipedia.org/wiki/Creative_strategies_in_advertising
  • 8. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013 (10). (2007, January). ConsumerReports.org. Retrieved October 26, 2007 , from Laundry Detergents, Ratings 1/07: http://www.consumerreports.org/cro/home-garden/cleaning- supplies/detergents/laundry-detergents-1-07/ratings/0107_soap_rate.htm Key Terms Used…
  • 9. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013
  • 10. NAME / VIVEK MISHRA IS TIDE USING A PROPER MARKETING MIX? / FUNDAMENTALS OF BUSINESS 1227 December 29, 2013