First Mover

Advantages

13 yrsMarket Leader

Enjoyed Lion’s
Share of Profits
 1997
From

ARIEL
OMO P&G PERSIL
UNILEVER HENKEL
High-Tier
High + Low Suds
MARKET
 2
0
0 High-tier & High-Suds
2 Market DECLINING

Continue Market LEADERSHIP

- Retain Loyal Customers
- Stop Persil’s Gain Of Share
SITUATION OVERVIEW
BCG MATRIX

MARKET GROWTH
HIGH
ARIEL
LOW SUDS

LOW

ARIEL
HIGH SUDS

HIGH LOW
MARKET SHARE
SITUATION OVERVIEW
SWOT
• MARKET LEADER IN DETERGENT ANALYSIS • DEVIATION FROM CORE PRODUCT
SEGMENT IDEALS
• PRODUCT QUALITY • LACK OF ADVERTS RECALL VALUE
• BRAND RECOGNITION • ONLY IN PREMIUM MARKET
• PEOPLE’S BRAND TARGET
• DISTRIBUTION NETWORK S W
INTERNA
LXTERNA
E
L
• GROWING LOW SUDS MARKET
O T • COMPETITORS GROWTH
• DECLINING MARKET SHARE
• BIG UNTAPPED RURAL MARKET • DECLINING MARKET STAGE FOR
• HIGH OPPORTUNITY FOR MID TIER HIGH SUDS
CORE REQUIREMENTS
ANSWERING THE QUERIES
HOW
DEFENDING ARIEL’S MARKET SHARE AND LEADERSHIP
STOP PERSIL’S CONTINUOUS GROWTH
INTRODUCE ARIEL IN RURAL BANGLADESH
WHAT
INCENTIVE OF INVESTMENT IN THE HIGH-SUDS MARKET
IMPLEMENTABLE STRATEGIES FOR THE INTRODUCTION OF
ARIEL IN RURAL BANGLADESH

ARIEL’S MARKETING STRATEGY ON THE BASIS OF THE STRATEGIES EXECUTED BY ARIEL FOR THE FIRST TIME
BLUE OCEAN STRATEGY

WHEN WHY
SUITABLE FOR ENTERING THE GROWING SUCCESSFUL IN RURAL MARKET
LOW-SUDS MARKET
CORE ISSUE

ARIEL HIGH SUDS IS WITNESSING A DECLINING

MARKET SHARE AS WELL AS A DECLINE IN THE
OVERALL HIGH-SUDS MARKET DUE TO FIERCE
COMPETITION AND THE GROWING LOW-SUDS
MARKET IN EGYPT.
 Defend Ariel’s
Market Share & Leadership
BACKGROUND ANALYSIS

Brand of People
REALITY
Superior Cleaning Concept
- Excellent cleaning performance Engage Via
Roadshows &
- Tough stain remover Events
- Superior whiteness
BACKGROUND ANALYSIS

ARIEL (fabric & home-care) Sales $11.6 Billion

$45 Million
INVESTMENT from 1986 - 2002
BACKGROUND ANALYSIS

Market Share 1990-1996

CAMPAIGNS

Rural Women (1990 - 1992) Superior cleaning

Book of Ariel (1993 - 1995) Linking to people

Millions of Women (1995 – 1996) New addition:

powerful + stain
removal
MARKET CONDITION

Low Sud Market PREMATURE stage

Usage of washing machine No concept

Integrated Marketing Strategy Supports one

another
Trend Analysis - Market Share

July-Aug’04
CAMPAIGNS

Pride of the Nation (1998-99) Candid stories

Make clothes look
Rejuvenation (2000) new
Demanding Professionals (2001) Professions and
achievements
MARKET CONDITIONS

Low Sud Market GROWING stage

Usage of washing machine Increasing

Integrated Marketing Strategy Not followed

DEVIATION

Core Values:
1.Brand of the People

2.Superior Cleaning

New Campaigns focused on:

• Side Features instead of Core Values which led the Customers confused &
not remembering the core value
COMPETITOR ANALYSIS

PERSIL VS ARIEL
Superior cleaning performance
Brand of People
Continuous product upgrade
Distribution: 10% less
Equal pricing
COMPETITOR ANALYSIS

PERSIL copying ARIEL’S Idea

Removing Stains from the Roots

Real-life women
Popular & Credible Celebrity
Boycott of American company
All of Egypt is switching to Persil
KEY ISSUES

Deviation from 2 CORE VALUES

PARSIL’S increase in Market Share

High suds Market becoming saturated

Low suds Market growing

WHAT TO DO?

Superior Cleaning
CORE FOCUS
Brand of People

Ethnographic Customers’ Modify and

Market Research needs/wants Differentiate product
WHY?

REMIND & RETAIN

Remind existing Benefits, Quality, Consumers brand

customers Satisfying needs for last 13yrs
WHAT TO DO?

Target A, B, C+ class Under positioned – premium

of Urban areas product for high class

More for Same (20% more at same price as Parsil)

Re-packaging – core features in new form

WHAT TO DO?

Re-packaging – core features in new form

Return 10 packets and get 1 free!

Small sachet free with Weekly / Monthly / Family Packs

Roadshow event – celebrate 13 years together, illustrate

success, benefits and life changing moments
WHY?

Increase sales Reach more number of customers

Make consumers realize Ariel cares about them and always

improving to serve the best product to its’ customers

Convenient offers + promotional activities

BOTTOMLINE

Ariel retaining it’s customers

Constant or increasing Market share

High Sud saturated market: Limited customers; if ARIEL

holds them, PARSIL cannot gain more
TIMELINE

5th month onwards

4th month

3rd month
CONTINUE
1st-2nd month PRODUCT INTRODUCE PROMOTIONAL
DEVELOPMENT NEW PACKS & OFFERS +
RESEARCH
AND PROMOTIONAL PROMOTIONAL
RE-PACKAGING OFFERS ACTIVITIES
TARGET & KPIs

Retain Market Leader position

Not loosing
customers to
COMPARE, PARSIL
Retain
ASSESS,
Customers
IMPROVE

Defend Market Share

EXPECTED
RESULTS
CURRENT OUR TARGET
SITUATION

LOSING HOLD
CUSTOMERS MARKET
LEADER
POSITION

DEVIATE REMIND AND

FROM RETAIN
Change in
CORE
APPROACH
VALUES
Was The Declining High-suds Market Worth Investment In The First
Place, Or Should They Allocate More Resources To
The Growing Low-suds Market Led By Ariel?
INVESTMENT IN HIGH SUDS THEN

YES
Making Competition
Irrelevant
Product Market
Easy to compete with
High Suds Market Was the then low quality
Feasibility Analysis Uncontested detergents
• LOW SUDS market was in Time Saving
very premature stage +
Super Cleaning Agent
• Could not afford Automatic
machine
• Washing Day was a social day
INVESTMENT IN HIGH SUDS NOW

OPTIMUM

REINVESTMENT

REVENUE Revenue generated

will be used to reinvest
PROSPECTS in LOW SUDS
High Suds will retain as a
• LOW SUDS will turn into cash cow to provide a
STAR continues source of revenue
• Needs high investment
INVESTMENT IN LOW SUDS

YES

GOAL

MARKET
Become Market
PROSPECTS
Leader
• Campaigns and Adverts
• LOW SUDS will turn into • Partnership
STAR
• Needs high investment • Product Quality
• LOW SUDS market is
increasing
• Investment needed to grab the
market
INTRODUCTION OF ARIEL IN RURAL
BANGLADESH
ARIEL IN RURAL BANGLADESH
TARGET MARKET
DEMOGRAPHIC SOCIO-ECONOMIC

WOMEN LOW INCOME

MARRIED/UNMARRIED LOW LITERACY RATE

BEHAVIORAL

PREFERANCE FOR AFFORDABLE

PRODUCT
ARIEL IN RURAL BANGLADESH
BOTTOM OF THE PYRAMID
MODEL

FAIR AND INCLUSIVE

GROWTH

CONSUMER
EDUCATION

AFFORDABILITY,
AVAILABILITY
AND ADAPTABILITY
ARIEL IN RURAL BANGLADESH

MAKING IT AFFORDABLE

SINGLE SERVE SACHETS

LOW-PRICE
ARIEL IN RURAL BANGLADESH

MAKING IT AVAILABLE
PHYSICAL ACCESSIBILITY OF THE PRODUCT IS KEY

DISTRIBUTION CHANNELS:
• OPEN MARKETS
• KIOSKS
• PARTNERSHIPS WITH SMALL OUTLETS
ARIEL IN RURAL BANGLADESH

MAKING IT ADAPTABLE

ADDRESSING THE CONSUMER NEEDS

• CLEAN WITHIN MINIMAL EFFORT
• EASY TO USE
• TIME SAVING
• DOES NOT CAUSE COSMETIC DAMAGE
ARIEL IN RURAL BANGLADESH

CONSUMER EDUCATION

REQUIREMENT TO INFORM THE BENEFITS OF THE

PRODUCT

• LITERACY RATE ISSUE CAN LEAD TO INAPPROPRIATE USE

• SIMILAR METHODS FOLLOWED IN RURAL EGYPT

ARIEL IN RURAL BANGLADESH

CAMPAIGNS
ROADSHOWS IN THE RURAL AREAS
TRIAL ACTIVITIES
USING WOMEN TO CREATE A COMMUNITY
PRIZES AT THE END OF THE ROADSHOWS
FREE SACHETS IN THE TRIAL ACTIVITIES
FIRST TIME STRATEGY BY
ARIEL
Heavy Reliance on market research: focus group, ethnographic research and other
qualitative methods
Trial Activities
Door to Door Activities
Discount Pricing
In store promotions
Promotions and auxiliary sales force
Road show: breakthrough
RURAL AREA SUCCESS

Used real life people in the Advertisements to connect with people

Connecting with people

Focused on the concept of using Ariel without the need of extra additives

Established Ariel as BRAND OF PEOPLE and SUPERIOR CLEANING

BLUE OCEAN STRATEGY

The Blue Ocean Strategy is a business theory that suggests companies are better off searching
for ways to gain "uncontested market space" than competing with similar companies.

The strategy represents the simultaneous pursuit of high product differentiation and low cost,
thereby making competition irrelevant.
ARIEL MARKETING STRATEGY
Making Competition
Irrelevant

Product Introduction
Gained Market
Leader Position
P&G took the lead in
Uncontested Market introducing the first
Space
detergent branding
the market
In 1989, the Egyptian
market had hardly any
detergent products.
THANK YOU