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Proctor and Gamble - Global Environment

Essay by   •  October 3, 2016  •  Research Paper  •  964 Words (4 Pages)  •  1,190 Views

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Global Environment

Tide Detergent

Proctor and Gamble manages in over 80 countries worldwide and sells over 300 products to over 5 billion individuals. Tide is a Proctor and Gamble’s billion-dollar leadership brand and a backbone of the company’s fabric care and home care business unit. Tide laundry detergent was first test-marketed soon after the end of World War II. When Tide was presented in 1946, it quickly became the best-selling laundry detergent in the United States. Currently, Tide can be located in almost about all international market. Tide has contributed above $1 billion in annual sales.

Globally, Tide sales have been pretty stable over the years. Tide has led to expansion in the Middle East, Africa, and Asia. “Ethnographic research showed that about 80 percent of consumers in India wash their clothes by hand” (Brown, B., & Anthony, S., 2011). Proctor & Gamble came up with Tide Naturals, which helped clean clothes well without causing irritation. The was priced “30 percent below comparably effective but harsher products” and made “accessible to 70 percent of Indian consumers and has helped to significantly increase Tide’s share in India” (Brown, B., & Anthony, S., 2011). The price decrease was an important factor in India where income level where lower.

Gain Detergent

Gain laundry detergent was released in 1968 and become very popular as one of the most influential and highest quality brands of fabric care in the United States market now. Ellen Byron (2007) states, Gain detergent “had grown a small following among cost-conscious consumers in the South, but failed to build nationwide appeal.” Gain brand has quickly been looking for fresh partnerships in Europe, Caribbean, the Asia and developing economics in order to distribute the product to a growing and industrializing population (Byron, E., 2007). In the North America market, Gain is a strong product and is likely to develop into an influential global brand.

Competitive Environment

Tide Detergent

Accordingly, Tide laundry detergent was among the top 20 worlds’ detergent manufacturers. Some direct competitors for Tide are Gain, Arm & Hammer, and Purex. A couple of indirect competitors are Clorox Bleach, and Laundry Services. Previously, Proctor & Gamble handled their competitors by uniting with them. Roughly three quarters of the accessible area at Wal-Mart shelves are taken up by Proctor & Gamble brands. Some competitors Tide run into are Woolite, All, Great Value, Purex, Extra, and Arm & Hammer. Though, Gain detergent is additionally a Tide’s competitor, which commands being more cautious in being sure that the brands do not disassemble each other in the market. However, Tide is more expensive than its competitors. The pricing is the only competition. “The $6.8 billion U.S. detergent business is dominated by Tide with a 38 percent share of the market” (Wiles, R., 2015). Robert Klara (2014) found that “Tide is so firmly rooted that it’s been difficult for any competitor to displace.”

Gain Detergent

Gain is a direct and closet competitor of Tide, Cheer, Bold, Ivory Snow, and Febreeze. Gain as a less expensive detergent in contrast to Tide. This means the Gain brand aims lower-income consumers that cannot afford to buy the lower price of Tide detergent. “Gain detergent holds 16 percent of the market share” (Ablah, P., & Cook, S.). Gain is moderately inexpensive comparable to its competitors. It is distinctive because it conveys high on its value proposition and guarantees. “Proctor & Gamble competes against itself because different consumers want different mixes of benefits from the products that they buy and thus, consumers prioritize the benefits that they want from each type of products” (McFarlane, D., 2013). Proctor & Gamble has an established reputation of having a family of products that are of exceptional value and will continue to be a frontrunner in fabric care.

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