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Linda Liu, Shui Jing, Mark Williams, Frank Li, Sebastian Voss
E-MBA – Shanghai Class of 2007 University of Maryland, Smith School of Business
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 2
¾ Building a new low-cost Productfor the Mass Market – ‘Wash-by-Hand’
Basis for this new Marketing Plan
¾ Keeping ‘TIDE’ focused on the high-end Market
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 3
Inner Industry (high)
• Fierce Competition
(Powerful local Players)
• TIDE is a Late-Comer
• Sales picking up slowly
• Infrastructure
(Washing machine)
Substitutes (medium)
Traditional Soap as a ‘manual’ Detergent
Substitutes (medium)
Traditional Soap as a ‘manual’ Detergent
New Entrances (low)
Unlikely to be expected
New Entrances (low)
Unlikely to be expected
Buyer Power(middle)
• Volume Market,
therefore Consumers
very Price sensitive
• “Unsophisticated”
Buying Behaviour
Buyer Power(middle)
• Volume Market,
therefore Consumers
very Price sensitive
• “Unsophisticated”
Buying Behaviour
Supplier Power
(low)
• Capacity
available
• Raw
Material
sheep
Supplier Power
(low)
• Capacity
available
• Raw
Material
sheep
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 4
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1. Diao
2. Qi Qiang
3. OMO
4. BREEZE
5. ..
6. ..
7. ..
8. ..
9. TIDE
10. ..
Chinese Players
Unilever
Proctor & Gamble
? How to get far up
the ladder?
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 5
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‘Introduce Low-Price Brand’
‘Change Production Base (City vs. Rural)’
‘Buy local Brand (1st/2nd)’
‘Advertise existing Product more intensely’
‘Different Product for a Niche’
‘Reduce Costs by Outsourcing’
‘Contract Production Factories / Staff’
‘Bundling / Co-Branding’
‘Features (Softener, environmental-friendly’)
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 6
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NEW BRAND
Chinese Name: .. but ‘powered by TIDE’
DIFFERENTIATION
.. by Features: Environmental FriendlySoft to your HandsHand and Machine Wash
PACKAGING
Primary Package: Absolutely Chinese
PRICE Competitively cheep (~ 1/3 of TIDE)
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 7
Existing Products New Products
Exis
tin
g
Mark
ets
New
Mark
ets
Product
Development
Strategy
Product
Development
Strategy
Market
Development
Strategy
Market
Development
Strategy
TIDE
Market
Penetration
TIDE
Market
Penetration
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vs.
‘TIDE Handwash’
Diversification
‘TIDE Handwash’
Diversification
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 8
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PTIDE
PTIDE HW
QTIDEQTIDE HW
PTIDE HW = ¥ 2,99
QTIDE HW = 4,7b RTIDE HW = ¥ 14 b PTIDE HW = ¥ 1,4 b
*Calculations on yearly Basis, 500g Boxes
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 9
P&G-owned
Complete Outsourcing
Traditional ‘TIDE’
‘TIDE Hand Wash’
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 10
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¾ Research & Development
¾ Advertisement
¾ Promotion
¾ Distribution (contracted)
¾ Manufacturing (contracted)
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 11
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Less negative Impact to Environment
Increasing overall Sales Performance
Tapping new MassConsumer Target Group
Improving Brand and Corporate Image
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 12
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QuestionsQuestions
CommentsComments
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??Next StepsNext Steps
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 13
Thank You for your Attention!
Thank You Thank You for your Attention!for your Attention!
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2005 –TIDE Detergent – Marketing Plan Proposal: ‘TIDE goes Hand Wash’ 14
Questions and Discussion