Ariel Gel

About P&G

History

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from
England and Ireland, respectively, who had settled earlier in Cincinnati, who met as they
married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander
Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to
become business partners. On October 31, 1837, as a result of the suggestion, Procter &
Gamble was born. In 1858-1859, sales reached $1 million. By this point, approximately 80
employees worked for Procter & Gamble.

The company moved into other countries, both in terms of manufacturing and product sales,
becoming an international corporation with its 1930 acquisition of the Thomas Hedley Co.,
based in Newcastle upon Tyne, England. Procter & Gamble maintained a strong link to the
North East of England after this acquisition. Numerous new products and brand names were
introduced over time, and Procter & Gamble began branching out into new areas.

Recent growth

Procter & Gamble Co. is a Fortune 500, American Multinational Corporation headquartered
in Downtown Cincinnati, Ohio, USA that manufactures a wide range of consumer goods. As
of 2008, P&G is the 8th largest corporation in the world by market capitalization and 14th
largest US Company by profit.

In 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion
spent by P&G is almost twice as much as that spent by General Motors, the next company
on the Nielsen list.

Operations

Effective July 1, 2007, the company's operations are categorized into three "Global Business
Units" with each Global Business Unit divided into "Business Segments" according to the
company's March 2009 earnings release.

• Beauty Care

 Beauty segment
 Grooming segment
• Household Care
  Baby Care and Family Care segment
 Fabric Care and Home Care segment
• Health and Well-Being

 Health Care segment

In India Proctor & Gamble have two subsidiaries: P&G Hygiene and Health Care Ltd. and
P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest
growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500
crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products
Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands
such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and
Rejoice in the Hair Care segment.

Today, Proctor & Gamble is the second largest FMCG Company in India after Hindustan
Unilever limited.

Why go for Ariel Gel:

• 30-40% less energy and 50-60% less water during manufacturing

• Packaging reduced 14-45% versus previously available alternatives

• Half the number of trucks needed to transport, thereby reducing the co2 emission out of
the transportation modes

• 47% of laundry consumers use Ariel at or below 30º C versus just 22% for other laundry
brands
SEGMENTATION AND TARGET MARKET

We segmented the market on the basis of the ways of washing. Our target markets are

1. Laundry service centers

For most clothing the hotter the water, the cleaner the clothing will be. For most people the
majority of their laundry is washed with warm water. Most linens and white clothing are washed
in hot water to remove germs and heavy soil. However, many of our clothes won’t come out
looking very nice if they are washed in hot water. Hot water tends to make some clothing shrink,
wrinkle, and fade.

Cold water is usually used for delicate items, or items with instructions to be washed in cold
water. If your cold water items are heavily soiled or dirty, you need to be especially diligent
about checking and pre-treating for stains. You may also have to wash the items for longer, or
allow them to soak before washing if they are heavily soiled.

Here, Ariel excel jell finds application; this is a cold-water washing detergent that is more
effective than hot-water alternatives. With this, we can save money and time. There is no need of
heating of water before washing. Thus, power consumption can be reduced and also it is time
conserving. This can clean well from water as low as 15degree Celsius.

Also, Indians like to increase the life span of a product. As, Ariel Excel Jell is jelly in nature, the
user can dilute it to an extent and use it with equivalent performance result.

4Ps OF MARKETING

Product

The science behind Ariel Excel Gel’s low-temperature performance is called catalytic detergency
—a type of chemistry that actually regenerates itself. At first, stains are broken down and
suspended in the water away from clothes. But Ariel Excel Gel then returns to the clothes and
removes additional stains, again and again. This means a small amount of gel will achieve
fantastic results as low as 15°C. During the laundry life cycle, 70% of energy consumption
happens during the product’s use, heating the water needed to wash. Eliminating the need to heat
the water cuts energy use dramatically. It leaves the cloths cleaner, with no fades on bright colors
and no shrinking.

The cost of production of this product is very low for the company. 40-50% of water usage for
manufacturing is reduced and need 30-40% less energy for the manufacturer when compared
with any other products of the same company. But Ariel Excel Gel takes Sustainability a step
further. The formula only uses ingredients that add value to cleaning performance, adding no
thickeners, solvents, or stabilizers. Thanks to a breakthrough formulation that forms a gel
naturally, the product’s easy-squeeze consistency is achieved without the need for any
structuring agents. This makes it possible to handle the same number of loads in a highly
concentrated formula, leading to a dramatic reduction in packaging.14-45% of less packing is
only needed and also trucks for transport is reduced from 40-57%.

Pricing

The product is available in three different quantities in India. 100ml, 250ml and 500ml are the
available quantities. They are priced as Rs.30 for 100 ml, Rs 60 for 250 ml and Rs 100 for
500ml.There are also products available in sachets of Rs 5 also as a promotional part of
marketing.

The existing competition in the field are bar detergent soaps and detergent powders. The price of
500 gm of Surf excel would cost Rs.70 where as the price of Ariel gel for 250ml is Rs.60, even
though this might seems a bit overpriced the strategy used here is skimming price. Besides the
quantity of the gel required is less when compared to powder or bar soap used in washing the
same quantity of dress.

Promotion

The promotional activities are given much importance in the case of Ariel Excel Gel as it is a
new product and awareness need to be made about the product.

1. Small sachets should be made available at very low price in shops where people can
buy for trial use.
2. Sale force should be educated about the technology behind the product and directions
of use and they should be made to go directly to potential customers to make
demonstrations.
3. Small free packets should be given along with already established P&G products like
pampers, deodorants etc.
4. Television advertisements should be made and promoted through the most prominent
channel in potential areas conveying the proper USP
5. Potential customers should be made aware of the advantages that they can acquire by
using this product.
6. Discount offers can be offered for sales for more than a certain amount.
7. Coupons, lucky draws etc can be used for promoting the product.

Places

The places of distribution can be the usual distribution channels followed by the company for the
other P&G products. Direct marketing should be concentrated to laundries of hotels, flats,
colonies, private laundries etc. Direct marketing also should be done in households where people
are illiterate to follow the other promotion techniques. Products should be made available in all
retail and wholesale dealers, same as for the other P&G products.

Distribution channels and marketing strategies should be more concentrated on the north eastern
part of India especially in the winter season.

Suggested Caption:

COLD IS THE NEW HOT

The was success in the western market and it would be striking on the minds of the people who
follow the traditional methods while washing and rings in their mind that they no more need to
spend money on fuel used in heating up the cold water. Also in the northern parts of India where
the temperature is low, they would find the caption captivated giving the direct idea to wash the
clothes in cold water itself.

PACKAGING AND POSITIONING

Problems with packaging, labeling and positioning in its first launch

Ariel Excel Gel was already launched in 2008 in the western countries. A study on its packaging,
labeling and positioning was done. This is to be taken into account while launching the same
product in India.

The gel is in an ovoid plastic white container, available in three colors with a removable cap at
the top. It is pointed out that the graphics for labeling on the bottle are not satisfactory as the
other P&G products. The instructions on the label are too small and hard to read. There was not
enough space given for writing the products usage and benefits and also the statutory warning
and information. There was problem noted also about the waste remains every time the pack is
opened there has been a small amount of leakage. The flip-top cap has a tendency to ooze sticky
gel from the hinges, which means the pack has to be stored upside down on its flat white base,
reducing the impact of the graphics and emphasizing the unbalanced, asymmetric nature of the
pack.

Ariel Excel Gel is positioned as an environmentally friendly cold-water washing detergent that is
more effective than hot-water alternatives. But the positioning in the shelf and also the labeling
was not satisfactory as it was not noticeable as much it was useful, so it failed to get positioned
in the minds of the people.

Proposed changes in packaging, labeling and positioning in India.

Products packaging is in the same ovoid plastic white container, but the graphics will change.
Along with the name of the product, its usage, benefits, and statutory warnings and information,
prices, manufacturing and expiry dates etc will be mentioned in larger fonts which will be easy
to read and understand.
The container is easy to hold in the hand, tactile and squeezable with an excellent integrated
'visi-strip' down the side to show how much gel remains in the pack. The removable cap can take
measurable quantities of according to need. The leakage problem will be solved as there will not
be a flip-top but only a removable cap at the top.

Positioning is made by good advertising and labeling as a cold water detergent, which can save
house hold and laundry power consumption. This can help the product to get good positioning
within the minds of the people.

CONCLUSION

Using of gel as a detergent is new in the field. Gel was used by us in pen, tooth paste, lubricants
etc. and have proved successful. The fear in the minds of people getting their dress damaged
when washed in cold water also is taken off.