Procter and gamble tide detergent in south africa

Procter and gamble tide detersive in south closely africaPG ability to enter the southward African trade place are of critical importance for the confederacys future success. They did non enter the trade of Republic of southeastward Africa forwards may be because of the political, economical and cultural come outs that prevailed then(prenominal). The following overcompensate depart discuss round the strength and weakness of Procter and Gamble and then how immersion the South African food foodstuff and how to pay attention to their challengers. subsequent on a merchandise plan will overly be discussing on how to in(predicate)ly position course in the South African market.The Procter and gamble is a Fortune 500 American multinational conglomerate that manufactures a wide range of consumer results which ranges from beauty and grooming, health and well being, planetary house care and so on The pampers an separate brand of PG that comes under its household fol k is the top selling diaper brand in the world .The course detergent comes under their house hold care category to For close to 60 days, run has been caring for the c componenthes of families across the globe and back up to provide the e actu on the wholeyday miracle of clean clothing .this intersection manufactured by Procter and gamble is a very bolt downular wash detergent and very successful on the markets in Canada ,the United States, Morocco ,India, Saudi Arabia etc .South Africa seems to be a promising market for the confederation this might be the factor the comp all entered the South African market with its Star homecare growth Pampers . heave is among the nigh popular and patronized detergents in the world .Since its launching in 1946 the worlds premier(prenominal) synthetic detergent was able to establish its market supremacy. The laundry detergent powder owned by Procter and Gamble currently holds some 40 part of the laundry detergent market and it was ab le to penetrate into all the market which its operating now within a small dot of time it continues its stable harvesting in the market and is committed towards component part families in their laundry needs. The billow offers a wide array of harvestings such(prenominal) as the tide facile, soar upwards Powder, soar coldwater, Bl for each one, Tide HE and so on. because we can say from its very Tide Bleach to Tide Total care to their very recent Tide stain introduce in wash booster it stress on the importance of clean, invigorated clothes that benefactors you feel youre the crush and most confident no payoff what you wearing thats their motto .Market Entry Since on that point is always this issue of a devil US corporation spreading American panache consumerism into all corners of the globe . that a Multinational Corporation cannot just trip the light fantastic toe into any country and beat the completion t here(predicate) and just assume the market get by there are lot of big seam houses that has failed in the past to local companies . In this case PG should enter the market with their product Tide as a local company investiture in the South African economy and hiring local workplaceers from there and this is merely how the company has been positioning itself for the past so many years .Yes it should be a Greenfield investment, yet though it might be an expensive pictorial selection however the benefit associated with its that it can build the subsidiary the way it wants and significantly could transfer the said(prenominal) kind organizational culture and practices with ease stumble it easy to establish operating routines and it in like manner divine services to expand and spread the force competencies within the enterprise through the way of Greenfield investment . Therefore Tide should enter the Republic of South African market by building manufacturing plants and hiring workers from thereby it can also create a honorable theme there by providing employment for the locals .Like said before even though it might be little expensive easyr on it will start to bear fruit .Environment analytic thinking-PG as we get is the worlds leading(p) laundry detergent company with a market packet of 28.1 percent compared to its main arch rivals Unilever with a market share of 17.4 percent as per a survey conducted in 2006. Even though its competitor Surf an separate study laundry detergent and some other detergent brands from Unilever has already made entry into the South African market more than before itself the penetration in this are hasnt been that significant .PG was deep in entering the Indian detergent market to its rivals Unilever Surf because the Indian economy wasnt that open and investment palsy-walsy until a couple of years ago by the time they entered even though Unilever held a unfaltering position and enjoyed huge market share there PG Tide was successful in bringing down the market share o f Unilever Surf by engaging in a expenditure war with them and now there no more huge market share is enjoyed by both(prenominal) the players as result. Similarly even if they are late in entering the Republic of South Africa with a population of almost 49,991,300 people as per 2010 census, and is predicted among as the next best developing economies along with countries interchangeable Bangladesh, Egypt etc leaves a lot a scope and significant growth opportunities for Tide in South African market.Political Environment-The Republic Of South Africa is parliamentary democracy wherein the members are elected for a 5 year quote .The Government brook a favorable attitude towards foreign chair investments countries manage United States and the members of European Union, Japan etc are their major job partners .Therefore one can say there not much PG has to rag about by introducing its Tide Detergent in this market as the Political factors are in favor and there is not much legal restrictions that the company has to comply with .The Government is investment friendly and has also formulated a new dodging to boost the countrys economic growth to 6 % by 2014.Economic Environment-The economy of South Africa is sensibly good. They suck up a growing economy with a GDP of 287 one thousand thousand USD in 2009 and a real GDP growth rate of 3.7 % in 2009 from its previous 3% in 2008 .Their purchasing power is also evaluate grow over the period of time and its predicted as the next best 10 developing economies (In a report from France 24) after India and China. The key economic reforms have given rise to the macroeconomic stability of this country. Taxes have been editd, tariffs lower and exchange controls relaxed all these are positive signs.Social and Cultural Factors-Their unwashed income and disposable income has increased rapidly over the recent years compared to before and is expected to grow even more and there are lot of potential for further growth f or the country in different spheres. statistical figures indicate that the Engels co-efficient is slightly decreasing in the last few years. two the urban population and rural population have a train of welfare that they will be willing to spend on the raw material requirements products. Culture-South Africa has a population of about 40 gazillion people and about three quarters of its population is b wishing and about 15 percent white. Apart from Afrikaans most of them do sing good English which is the global language. South Africa is considered to be an Industrial giant of Africa. Some of their avocation etiquettes with respect to communications they do not like to rush deals and are very casual in business traffic ,its better to use titles and surnames to address the people ,hand shake is the most public way of greeting however handshakes vary between the non-homogeneous social groups . South Africans prefer a win-win negotiation and with respect to appearance and demea nour they like to be well dressed and gift giving is not norm in the business and business meetings will be in general held over lunch or dinner in some good restaurant.Technological environment-South Africas manufacturing output is technology intensive with eminent tech manufacturing sector such as machinery, scientific etc .South Africas technological look and quality standards is clean good. They have also developed number of leading technologies in fields energy and fuels, steel production, telecommunications and Information technology etc indeed after the PEST analysis it is pretty much clear that business environment is favorable to launch Tide in RSA.SWOT Analysis-Strength PG Tide is a very muscular brand its been in truth successful in numerous number of countries including the Unites States and mixed other countries in Asia such as India, Pakisthan, Srilanka and Bangladesh etc . It has a authorized popular tagline in each of these countries and these have helped to retain the Brand name in everyones consciousness. It makes its product useable in different quantities and prices based on that meeting the consumer needs. The company has about 127000 employees working for them with people from various nationalities working for them on the top direct group and PG operates in numerous number of countries it also invests a sizeable pile of money on their RD . The detergent also helps in trim down waster consumption. They also do have high quality workforceWeakness- Tide has a lot of competitors in the market such as the various Unilever home care brands such as Surf Excel, Omo, Comfort, Cif etc. Then since Tide is detergent product there are a lot of substitute products available in the market like detergent cakes, liquid detergents etc .This might reduce the market prerequisite for the detergent powders. The company might have to spend on for certain cultural and other activities in the public other than just spending for product development and investigate. The lack of reliability on data is another factor since the market is pretty huge and its spread over a lot of countries it is not achievable to get a reliable data about the market take on and other datas that will help in market development. This might reduce the predictability power of the companyOpportunities The Company can utilize upon the changing life-style of the people for increasing the demand of the product by concentrating on client needs and by giving the best product thereby the company can widen the scope and can increase the demand of Tide products. The company can try to acquire a high market share for the product by increasing the production and market share and thereby it is possible to achieve high demand and a diminution in price of the product thereby ensuring customer satisfaction. PG could also engage certain new tactics in the market by introducing a new product. Tide can opt this strategy by introducing a new variety in the market it could get a fulminant boost in the demand of the product at the time accession in the market.Threats The Company might face some legislative pressures as the chemicals that are used in the production of detergents are harmful for the compassionate body and natural environment. There might be environmental do as the detergent contains chemicals that are harmful for human being and natural resources. Therefore the company must make sure that it makes environment friendly products. There could be chances for price war we know that the primary terminus every manufacturer will be to increase the demand for their productions since decent demand is necessary for the company to survive in the competitive market. If any of the competitor company reduces their products price and this might result in a price war between the two.Marketing Strategy-Procter and Gamble as one of the worlds consumer products companies in the world often undertake market research before launching its pro duct and also uses this research to make decisions about the marketing mix as well as its marketing strategy and tactics. Market Research thus helped the company determine its marketing strategy by shaping the brand name and the product identification that the product would carry. Knowing the fact that women would be the primary target market for the product therefore the tactics should be developed keeping this in my mind and use in its promotional strategy.8704cov_piechart.gifThe Marketing MixPrice This is the most powerful tool in marketing, as we know it is utilized in many a ways mainly to increase unit gross sales ,to make the market less pull inive to potential competitors and to attract buyers so that they buy other items once the transaction has started .The PG pricing of Tide detergent soap proves to be an effective means not only to attract consumers but also to reduce the market appeal to its competitors .In India PG had launched discounts for both its brands Tide and Ariel for about to 20% to 50% literally there was a price war with its archrivals Unilever Surf which was enjoying a major market share in the market before .However by its reduced pricing strategy purchasing Tide has become an economic -wise option for the larger masses. By cut its price the volume of Tide sales have surged tremendously.PG will have to follow a similar pricing strategy here in South Africa like they did in India as their competitors Unilever brands are pretty strong there. 12 South African Rand for 1 Kg of tide would be a good idea.Product Its considered that Tides usefulness expires as soon as laundry is finished, but this is not to suggest that PG is not going to be liable after its use .The trend nowadays is providing feedback mechanism. Its been realized by PG which is why one can notice writings in the packets like if you have any suggestions or comment write to us. The company would be able to know how the customers feel about the products what they think o f it in roll to make this effective ,to bring awareness to their customers they have to re-in force the centre to its customers via TV , radio or internet .The company should therefore make sure what thats discussed above is done in the South African market. Tide is an excellent brand name which carries its supremacy and toughness across the markets where its present. progression The very existence of internet has revolutionized the world of information technology this a very good sign for many new advertising opportunities .For e.g. the pop up ads and email ads .The television and radio advertising are also distinguished ways to promote Tide in its new market .Like any other effective television and radio advertising it requires a very good punch line ,present the competitor product without mentioning its name tell about its weakness they should get testimony of experts or known authorities.Drawing the attention of the internet users obviously would not readily spark them into action. They have to therefore find some new ways or effective techniques to further engage them in company website. Therefore a strong consideration must be given to the content of the site. hence by making the site more attractive this will help to engage more consumers and they will start to react positively to the ads.Therefore company has to have an effective promotion and public relations in their new market in all the tools available to them. Advertising in various media maintains superior standing of the product in the wide detergent market place.Place /Distribution-The choice of dispersion is an extremely important decision to make. It should meet the needs of the South African market .When it comes to the elements of distribution transmission line which includes packaging, storage facilities, transportation and the members such as brokers, retailers and households must be suitable for the SA market needs. Tide must be made available both in the retail stores and wholes ale stores of South Africa as the product try to satisfy the immediate need of people.Packaging the product must take the following into consideration must facilitate storage and discourse of the product must protect Tide from extreme temperatures, isolate clutch purchase quantities. And also make sure that the packaging materials must be of bright colors to instantly capture attention of the consumers. At the same time storing Tide must be done by complying with the rules of the South African Government .PG must also inform their stakeholders ,manufacturers about the various storage risks that might happen such as fires,theft,loss of market demand etc this will also ensure effective handling of storage be . And its also important that they build a sound communication channel with their consumers, manufacturers, brokers and other stake holders in the new market for the smooth functioning. combative Analysis-Tide is among the top 20 worlds detergent manufacturers. According to cer tain reports published during the period Tide held the highest share of 3 billion dollars during the late 2000 followed by its stalemate Ariel with about 2.8 billion US dollars. The major competitors that Tide is going to face in South Africa will be its major arch rivals and strong competitors such as Omo, Surf and Persil the other laundry detergents from Unilever.The competitors have already established their brands in the South African markets . However PG neednt be worried about that since before also there was this mail were Unilever tapped into the Indian markets even when it was not so business friendly even after making a late entry into the market field they were able to capture significant share in the Indian market Tide will be able to repeat the same here also with its heavy advertising and other related campaigns so as to promote sales .However there are also lot of other small rivals in the field as a result of product innovation and behavior dynamics of the consumer s therefore Tide will have to concentrate on its marketing strategy focusing in fiat for them to dominate the market eventually .Conclusion-The international marketing of PG Tide is really important before its entry into the new market. Basing it from the facts gathered in this research, it could be concluded that the international marketing of Tide is effective. Its constant committal in achieving its goals defines its success and further utilization. Its necessary that one company must know to stay in competition in order to offer in the market. It is also important for the company to understand whats the major driver of the firms profitability in a competitive market this key marketing challenge and strategy. So as to conclude the report helps in identifying the various resources of PGs Tide. Its important for the company that in spite of their success it should continually work on its strategy change and development is indispensable. All this will help in the companys succes s.