Study of effectiveness of Tides marketing strategy in India

By Deepak Vishnu Nochiyil ( 1011238 ) Jithin Valsarajan ( 1011171 ) Sandeep Andugula ( 1011277 ) Shivaprasad S Raja

PROBLEM DEFINITION: Background

W h o a re th e d o m i a n t p l ye rs i I d i n n a n n a d e te rg e n t m a rke t?

Premium Segment

Medium Segment

Low Cost Segment

PROBLEM DEFINITION: Statement

To study the effectiveness of Tides marketing strategy Strategic Pricing, Packaging and Differentiation on fragrance through Tide Naturals Product

APPROACH TO THE PROBLEM

Looking at this from a Marketing Research perspective, the management would need to know the following :

The current positioning of Tide w.r.t. other detergent brands i.e. is the brand extension strategy consistent with Tides brand image How price sensitive is the current market? relationship between brand switching probabilities and price levels

The relative importance of the various choice factors e.g. demand at various levels of factors

RESEARCH DESIGN Types and Information needs

We used a three pronged research design methodology to answer the marketing research problem defined earlier

(i) Exploratory Research

To gain familiarity with the consumer To understand the decision making process

(ii) Multi-dimensional Scaling

To determine the current positioning of the Tide brand To understand the possible effects of Tide Naturals brand extension

(iii) Conjoint Analysis

To determine importance of various choice factors To estimate demand at different levels of choice factors

RESEARCH DESIGN (i) Exploratory Research

Aim : To gain an initial understanding of a typical detergent powder consumer

Methodology:
Mall and Retail Shop intercept interviews Telephonic Interviews

Information required: Broadly, we wanted the respondents to answer two unstructured questions.
How do you decide on buying a detergent powder brand? What do you look for when you select a particular brand?

We also used standard follow up questions which followed a laddering framework. However, we did not go in-depth into the value level.

RESEARCH DESIGN (ii) Multi-dimensional Scaling

We asked respondents to:
Rate pairwise similarity of five major detergent brands : Surf, Ariel, Tide, Rin and Wheel Rate each of the brands on three attributes: Cleans my cloths very well Gives good fragrance to my clothes Is value for money

Plan: Derive spatial map (MDS) with pairwise preference data Identify the dimensions using attribute ratings

RESEARCH DESIGN (iii) Conjoint Analysis

We used Choice Based Conjoint (CBC) to estimate the relative market shares of Tide, Rin and Wheel Following three attributes were used:
Brand: 3 levels Rin, Tide, Wheel Price: 3 levels Rs.15-20, Rs.20-25, Rs.25-30 Fragrance: 2 levels Natural fragrance and No fragrance

Fractional factorial design with 12 sets and 4 alternatives Efficiency = 96%

RESEARCH DESIGN (iii) Conjoint Analysis

S a m p l C B C ca rd sh o w n to e re sp o n d e n ts Rin Tide Wheel
500gm Rs. 15 - 20 500gm Rs. 20 - 25 500gm Rs. 20 - 25 None of these

Natural fragrance Natural fragrance Natural fragrance

R e sp o n se s fi d to a M u l n o m i lLo g i M o d e l tte ti a t T h e e sti a te d l g o d d s a re u se d to e sti a te m o m th e p ro b a b i i o f ch o i a n d h e n ce th e l ty ce m a rke t sh a re

Sampling
MDS
40 respondents drawn from different social categories Mall intercepts, Retail intercepts Respondents were prequalified by asking if they purchased detergents for home use

Choice Based Conjoint

20 respondents Mall intercept

DATA ANALYSIS

(i) Exploratory Research

We did not have a structured data analysis for exploratory research. Based on the responses obtained, we tried to qualitatively infer findings

(ii)

Multi-Dimensional Scaling Data was processed using procMDS in SAS. Plotted using %plottit macro (iii) Conjoint Analysis Data coded using proc Transreg. Multinomial Logit Model fitted using proc phreg.

RESULTS (i) Exploratory Research

Low Brand Loyalty
Prone to switch brands without any particular reason Some consumers even used premium and low cost brands simultaneously

Important determinants of detergent buying

Cleaning ability most important Fragrance Foaming ability Value for money, Color retaining abilities, quick wash

Role of advertising on buying decision

Even though respondents could remember ads ( Daag Accha Hai), they did not feel that it greatly influenced their buying decision

Most important attributes

Price, Brand Image/quality, fragrance

RESULTS (ii) Multi-Dimensional Scaling

Freshness/ Value for money

Cleaning Ability

RESULTS (ii) Multi-Dimensional Scaling

H o ri n ta l d i e n si n i e n ti e d a s C l a n i g zo m o d fi e n a b ii l ty V e rti l d i e n si n : V a l e fo r m o n e y a n d ca m o u fre sh n e ss S u rf, A ri l Ti e h i h o n cl a n i g a b i i e, d g e n l ty Ti e i l w o n fre sh n e ss d s o Ti e N a tu ra l w i li h e ri cl a n i g a b i i fro m d s l n t e n l ty Ti e a n d w i l b e h i h o n fre sh n e ss d l g

Cleaning ability

Freshness

Value for Money

RESULTS (iii) Conjoint Analysis

Multinomial Logit Model:

DF

Parameter Estimate 3.38995 3.49279 2.15608 0 0.97194 -0.1289

Standard Error 0.49258 0.48916 0.5062 . 0.17209 0.02514

Chi-Square

Pr>ChiSq

Rin Tide Wheel None Natural Fragrance Price

1 1 1 0 1 1

47.3625 50.9842 18.1418 . 31.8963 26.2933

<.0001 <.0001 <.0001 . <.0001 <.0001

C l a rl fra g ra n ce a n d p ri a re i p o rta n t e y ce m a ttri u te s b

RESULTS (iii) Conjoint Analysis

Brand Demand curve for Tide Naturals:

Rin: Rs. 25/500g Wheel: Rs. 15/500g Tide is Tide Naturals

Tide Naturals Market Share of 70% at Rs.20/500g

RESULTS (iii) Conjoint Analysis

Brand demand curve corroborates the fact that demand for Tide is very price elastic in Rs.20-30 range As the results show, Tide Naturals is a show stealer
Panic reaction from HUL when Tide Naturals was introduced Price of Rin, Wheel and Surf slashed, grammage increased

We have developed a market simulator to answer What if questions

Conclusion
Tide is positioned high on cleaning ability and low on freshness Tide Naturals will inherit the cleaninng ability attribute of Tide and will be high on freshness At comparable prices, Tide Naturals is a very strong threat to HULs Rin and Wheel

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