Background
Proctor and Gamble is a big consumer product company that deals with the promotion and advertisement of consumer goods to customers around the world. The household consumer goods promoted by the company are used by customers in the whole world. The products that the company promotes include fabric care, household care, snacks, and a myriad of other products. One of the biggest brands that the company deals with is the Tide product line. The Tide product line is part of the fabric care products produced by the company and a wide array of products including bleaches, powder and liquid detergents, and different stain brushes. The brand, introduced in the late 1940s, has gradually augmented supremacy in the synthetic detergents market. The aim of this paper is to perform market research for the Tide product line and propose a market plan for the introduction of a new product to be promoted by the company. The new product to be introduced is required to conform to the company’s business mission statement and be able to meet customer expectations.
Business Mission Statement
The mission statement of P&G revolves around the provision of quality branded products to its consumers to improve their lives in the current period and for generations to come. The aim of the company as reflected by the mission statement is for consumers to reward the firm with growing sales, profitability, and the creation of value (P&G 2). This main objective is to achieve the prosperity of major stakeholders in the operations of the company. The promotion of the Tide product falls in line with the mission statement because the product line has been accepted by consumers worldwide and provides profitability and satisfaction to the company stakeholders.
SWOT Analysis
For the development of a new product to sell, a company must first analyze the current market strategy used and determine the viability of the introduction of the new product. This is done by conducting a research on the current product’s position in the market, and determining the new product mix that includes the new product. To determine the product position, a SWOT analysis is conducted on the existing brand line. The product line for which a SWOT analysis is conducted here is the Tide product line.
Strengths
The Tide product line is promoted by Proctor and Gamble in the international market; this international positioning of the product is its main strength. The product line is sold all round the world and as a result, the market share of the company is assured. The second strength of the product line is the leading market position. The Tide product line is a leading product in the detergent industry, and has been accepted by customers worldwide as the product of choice in laundry detergents and household fabric care. The strong financial of the product line is also a major strength because it accounts for a big percentage of the sales of detergent in the world, and is considered the flagship product for the company.
Weaknesses
The main weakness of the company as discovered by market research is the control of the product quality. The Tide product line is produced at a large scale because of the customer demand; hence, quality control becomes a problem. The other weakness is the decline of revenues in some markets, particularly the Asian markets. This decline in sales in some markets can be attributed to rising competitiveness by substitute products promoted by other companies.
Opportunities
The main opportunity of the Tide product line is the development of new markets for the array of products. This development of new markets is due to entry into different markets in the developing world. The other opportunity that the company has is the change in demographic trends across the world. These changes in demographic trends provide the opportunity for the development of new product lines and introduction of new products into existing product lines.
Threats
As already stated in the weaknesses faced by the company, the main threat faced is the loss of market share due to increased competition. The other threat faced by the company is the rising cost of energy prices that will raise the costs of production. Rising costs of production have to be transferred to the customer by raising the prices of the products, and might lead to loss of market share to competing products. The introduction of new rules and regulations is also a threat because it might cap the efforts of the company in expansion of the product lines. Product Description and Objectives
The new product to be introduced is an entirely different product from the ones the company currently promotes. The new idea is the introduction of edible cake and cupcake liners. The main idea behind this new product is that many cake and cupcake liners are not edible and have to be disposed of by the consumer; therefore, the company should introduce a new type of cake that has edible liners.
The main objective of the introduction of this product is to increase the market share that the company currently holds in the consumer products department. Currently, even though the company controls market share in the consumer products department, it needs to increase market share by reigning in new consumers.
The market share is to be increased by capitalization on the consumers’ trust in the company’s current products to ensure that the consumers try out the new product. This is to be grasped in a timescale of possibly three years. This period is considered because the company needs to first develop the product and then market it to the consumers.
Target Market Strategy
The target market for the new product is all consumers who are dissatisfied with the current design of cup cakes in the market. The current cupcakes require the consumer to dispose of the liner after the cake has been consumed; the new liners will instead be edible together with the cake. The strategy is undifferentiated because the product is usable by all demographic sectors of the population; the main consumer being targeted is the average person. This is applicable because all consumers, regardless of the demographic characteristic, need a simplified way of making cakes. This target market strategy is decided on because of the number of households in the market, the prices they are willing to spend on the product, and the availability of a ready market.
Marketing Mix Strategy
For any product to succeed in the market, the company has to decide on an effective marketing mix. This is a combination of the 4Ps to determine the most effective marketing strategy (Lamb, Hair, and McDaniel 115).
Product
The product is the most important part of the 4Ps because its offering, importance and presentation to the consumer determine the sales to be made. The new product proposed for introduction is a new cupcake design for the market.
All consumers of cupcakes require a simplified method of disposal of the liners; and what better way than to be able to consume the liners together with the cake. The product being proposed is to be used is a cake whose liners are edible. In baking, instead of spraying a coat into the inside of baking pans, the liners can be eaten together with the cake.
Price
The pricing strategy for the new product is to introduce it at a low-testing price for the market. If the price succeeds in attracting customers, it will be maintained for the period needed to attain sustainable market share. This price is to be determined by considering competitor prices and setting a price that is equally competitive and profitable.
Place
The current product lines that the company employs already have developed distribution lines to the consumers. Because of this, the company does not need to develop a new distribution strategy; instead, the current distribution strategy is utilized.
Promotion
The promotion plan for the new product is mainly through the media and the Internet. As already stated, the consumers’ trust in the current products in the market will play a major role in determining the sales of the new product. The best promotion strategy to be used is to use gift and vouchers for customers when they purchase the new product. This will build customer demand for the product and increase the competitiveness of the product.
Implementation, Evaluation and Control
The plan for the development and subsequent promotion of the product starts at the production level. The product will be produced and made available to the market in a year. Before the product is made available, intense promotion is to be done to make the customers expect the product before it is made available. After the sales of the product have been conducted for six months, all the sales data is to be collected and evaluated for performance to establish whether the product is realizing the set objectives. If the product is meeting the objectives, the company will then make it available in the international market. If on the other hand the product does not meet expectations, the company will review the product or decide to take it off the market.
Works Cited
Lamb, Charles, and Hair, Joseph, and McDaniel, Carl. MKTG 4, 2010. Boston: South-Western College Pub. Pp. 15-150. Print.
Proctor and Gamble. Our Purpose. Web.