Essay on Marketing Strategy: Tide Detergent

Words: 1478
Pages: 6

Marketing Strategy for Procter & Gamble’s
Tide® Liquid Laundry Detergent Measure Trigger
Paul Lane
Marketing 1001
Professor Norman Hansen
February 20, 2010

Abstract
Procter & Gamble (P&G) and its competitors package laundry detergents in various sizes and packaging alternatives. Tide® liquid laundry detergent is available in sizes ranging from 40 ounces (25 loads) to 150 ounces (96 loads). Current packaging requires lifting and pouring from bottles weighing over nine pounds into a small measuring cup. The intent of this marketing strategy is to identify feasibility of an alternative dispensing system for the largest size containers of Tide® liquid laundry detergent.
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Another opportunity that currently exists is to have molded parts for the Measure Trigger assembly manufactured at P&G’s South Boston Manufacturing Center (SBMC). Taking advantage of SBMC’s mold-making expertise and injection molding capability will allow the company to establish and sustain a product differentiation competitive advantage.

Price Decisions: As part of P&G’s pricing strategy, a break-even analysis will be conducted. Taking into account that further analysis is necessary, initial pricing is planned to remain constant with products currently in the market. Although profit margin is expected to be lower during initial launch, other pricing strategies may be pursued once the new packaging becomes established in the market. P&G has a steep experience curve indicating a significant decline in manufacturing expenses as experience and production reliability increase. Of course, pricing must continuously be evaluated throughout the product lifecycle. Place (Distribution) Decisions: Tide® laundry detergent is already establish in the market, which is managed through a highly successful supply chain. The new product packaging would debut in the U.S. market. This is contrary to many P&G brand launches that test in smaller markets (typically Canada or European countries), but the primary market for the largest size