ARIEL IN TROUBLECase study

Group Members:Husain KarrarNadir RahimWajahat BukhariAli JiwaniSalman KaleemAhmer Mehdi

BRAND MANAGEMENT

Overview – Pakistani MarketTotal market size by volume= 162,211 tonnes Total market size by value= Rs. 19 billionDetergent Market is growing by 5.7% annually for the past 2 year

Companies By Volume By Value

Unilever 45,000 8 billion

P&G 9,000 2 billion

Colgate Palmolive 80,000 8 billion

Rest 28,000 1 billion

Continued ……..Brands By Volume By Value

Surf 25,000 38 billion

Bonus 35,000 21 billion

Brite 10,000 16 billion

Ariel 6,000 11 billion

Express 4,000 5 billion

Rin 2,000 3 billion

Rest 18,000 5 billion

Market Share By Volume (%) By Value (%)

Urban 73 79

Rural 27 21

Where Does Ariel Stands…….?? On price its competing with Surf Excel and Brite

1. Ariel Rs 2102. Surf Rs 200/kg3. Brite Rs 170/Kg

Rin, Express and Ariel are all going for SEC B

‘karak daar safaidi’ Its going one on one with surf excel as well

Surf Excel ‘dadi ek minute’Ariel ‘Sirf ek dhulai’

Comparative AnalysisFactors Surf Excel Ariel

Launch 1960 1998

Target market Mothers belonging to SEC A and B+ Housewives belonging to SEC B and B+

Price Rs. 200/kg Rs. 210/kg

Packaging Blue , pink and orange. Vibrant and attractive

Green and white.

Consumer insight

1) Approach- avoidance attitude of mothers.

2) Mothers want their kids to develop, learn and have fun

3) But they don’t want dirty clothes to reflect on their love for their children and their competency as good mothers

1) Housewives associate strong pleasant fragrance with cleanliness

2) Housewives are pulled towards functional benefits

3) Housewives perceive SKU’s which are bigger to have greater quantity of detergent

Factors Surf Excel Ariel

Brand positioning

Dirt is Good” / “Dagh tu achay hotain hain (indirect route to persuasion)

Initial positioning: to switch soap users

Ad Appeal Functional and Emotional Functional and benefit

Campaigns 1990 - Tough on stains, soft on hands1996 - Jaisa bhi daag ho, surf excel hai na2005 - Dirt is Good2007 - Games masti2009 - Meetha/Khara pani2010 - Dadi ek minute2011 - Tools for school

2000 - Ariel Maa Campaign2008 - Ariel longest kurta ad with Tariq Aziz2008 - Ariel challenge with Zubeida Tariq2009 - Ariel Bachat tip with Zubeida tariq2009 - Garam pani Thanda pani2010 - Ariel housewives ad2011 - Ariel housewives ad

Comparative Analysis

Factors Surf Excel Ariel

Brand activation and BTL activities 1) School Campaigns to carry out Art/Paint competitions & giving prizes

2) Fun-oriented activities in amusement parks to engage families & giving out gift hampers

3) Games masti

4) Tools for school

1) Blind tests

2) Celebrity endorsements on door-to-door basis e.g. Mr. Faisal Qureshi

3) Metro cash and carry campaign

Comparative Analysis

Factors Surf Excel Ariel

Point of Parity among two brands

Stain removal Stain removal

Packaging & sizes Both the detergents are available in same sizes and packaging

Bleach Content Comparatively lower Higher content of bleach

Name Surf is a generic name. Thus with time it has become a generic name for the detergents category

Surf has a competitive advantage as it creates association in the minds of consumers

Comparative Analysis

Media Spend

BRANDS 2009 (In Millions) 2010 (In Millions)

SURF 360 480

ARIEL 340 460BRITE 120 160

BONUS 90 120

Ariel ‘Maa’ Campaign

Surf Excel – Tools for School

Ariel - Zubaida Aapa Ad

New Surf Excel Ad

New Ariel Ad

Current Persona of Ariel in Pakistan A chubby middle aged

woman Limited budget Travels in a rickshaw or other

public transport may be a bike with husband

Has two three naughty kids Not modern or stylish Puts her husband and kids

before herself Its the question of her pride

when it comes to clean clothes of her husband and children

Fundamental Questions

Why does Ariel still target the lower segment when it charges a price equal to Surf Excel…?

Why are the market shares of Ariel still stagnant when they spend as much as Surf Excel on advertising…?

Points to Ponder A brand should stand for something Ariel’s wrong initial target market:

Soap users (Indirect competitors) and were consistent with it over the years. Did not look at its direct competitors

Ariel is a Premium priced brand, but it caters to lower classes Is under positioned Even though the major chunk of Ariel’s share belongs to Urban Markets , their

communication ideas still show housewives belonging to rural markets. AD spend by Ariel is similar to that of Surf Excel, but it failed to increase its market

share Position benefits instead of emotional appeal Advertising has no “punch” Surf a generic name, Ariel not a generic name. Surf has more top

of the mind recall (law of category)

Proposed Positioning Reducing price not an option So target A and B+ core target- A premium brand that quickly cleans clothes It saves time effort and has high quality cleaning capabilities

and aroma Therefore, in ads show a pretty house with well dressed

people who want products that save time and effort.

Proposed Persona A middle aged SEC A

woman age bracket 30-38 with a kid not necessarily a house wife.

She may be a working woman who manages the house along side work.

She travels in a car driving herself or with driver and has to maintain a balance between work and family and to her time is money

She does not compromise on quality.

Proposed Celebrity PersonaBushra Ansari

Having her would have the additional benefits of longer commitment reliability and established brand because she is older and well known

Nadia Hussain

If they want to go with the working women with young kids they can take Nadia Hussain as well and she fits the proposed persona very well.

Old & New Persona

Alternate Solution or a New Dilemma?

P&G only has Ariel to cater one segment. It should bring more brands in this category to become the market leader Tide ( Positioned above Ariel)

But Tide is a middle tier brand in India and a Top tier brand in USA and UK.

How they will go in Pakistan?

Thank You ….