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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