Boston Consulting Group Matrix of Procter & Gamble’s Tide Detergent
Boston Consulting Group Matrix of Procter & Gamble’s Tide Detergent
The Boston Consulting Group (BCG) Matrix allows Procter & Gamble (P&G) to comprehend how consumers perceive Tide Detergent based on market growth and market share. P&G can utilize this information to determine if they should increase or reduce investments for their strategic business unit (SBU), Tide. This paper will discuss the relationship of Positioning, Market Share, and Marketing Research in the BCG matrix suggesting that P&G should continue investing in Tide as a star product.
Positioning for Tide
Tide is best categorized as a star in the BCG matrix for several reasons. Most importantly, Tide is associated with high quality by consumers through the creation of a consistent aroma, softness and feeling of clothing. The bottles, logo, and scents of Tide are widely recognized and used as a household name. Tide is a product used regularly by a large quantity of consumers to complete necessary household chores. “In a 2009 survey, Tide ranked in the top three brand names that consumers at all income levels were least likely to give up regardless of the recession, alongside Kraft and Coca-Cola.” (Paynter, B., 2013) There is room for continued innovation with the advent of new types of cloth washing machines (e.g., high efficiency (HE) units) and materials used in the manufacturing of clothing. Therefore, Tide will continue to remain at the maturity stage with continued investment. You may also be interested in BCG matrix of NESTLE
Market Share for Tide
The average American, before the introduction of liquid detergent, owned less then ten outfits due to the difficulty in hand washing. Tide is about cleaning clothes with less hassle and helping them last longer without a negative impact to the environment. “Executives at Procter & Gamble began tinkering with compounds called surfactants that penetrate dirt and unbond it from a garment while keeping a spot on a shirt elbow from resettling on the leg of a pant.” (Paynter, B., 2013) The breakthrough of using synthetic compounds rather than soap chemicals had a tremendous impact on the company
and also the market. Now, “the average U.S. consumer buys 68 pieces of clothing a year—more than one purchase a week—much of it cheaply made.” (Cline, E., 2012) When P&G patented the new technology of Tide, the competition found it difficult to create an alternative and successful offering. New offerings by Tide, such as “Tide Pods” and “Tide for Coldwater” will help continue to keep the brand thriving. Tide has contributed to society by allowing consumers to clean clothes with less effort and to increase the longevity of garments.
Marketing Research for Tide
P&G uses many methods to collect and analyze marketing information of their product(s) to ensure they are attractive to their target market(s). A Strength, Weakness, Opportunity, and Weakness (SWOT) analysis can ensure they don’t lose market share to the competition and allocate the proper resources to invest and innovate. Focus groups can also help identify the value of current offerings, like Tide, to consumers and what value they expect with future offerings. Marketing research is essential to remaining a viable company and to keep up on the cutting edge and staying on top of new trends.
Tide is a well-known established product. The BCG matrix helps companies like P&G make resource allocation decisions for products like Tide. Using the BCG matrix, P&G should find ways to continue to invest in Tide. Since Tide is a convenience offering, it is important to make it highly available and easy for consumers to purchase. Companies could waste substantial amounts money by not recognizing and continuing to invest in dog products that should be harvested or dissolved if they don’t utilizing the BCG matrix.
Boston Consulting Group Matrix for Tide
Name of Product
Market
Description
Market Growth Rate
Share of This Market
BCG Category
Strategy
P&G Tide Detergent
Adults (clothes detergent is an integral part of household chores)
Synthetic compound clothes-washing detergent.
Medium-High
High: “Tide costs about 50 percent more than the average liquid detergent yet outsells Gain, the closest competitor by market share (and another P&G product), by more than two to one.” (Paynter, B., 2013)
Invest to create new improvements, innovations and increase distribution. Continue to build market share and ensure less creep by competition. Learn more about T ide Detergent mission statement
References
(2012, 01). Product Information. Info. Retrieved 08, 2013, from http://www.tide.com/en-US/product/tide-original.jspx#info (2012, 01). Brands & Innovation. P&G. Retrieved 08, 2013, from http://www.pg.com/en_US/brands/household_care/tide.shtml Cline, E. (2012). Overdressed: The Shockingly High Cost of Cheap Fashion (1 ed., Vol. 1, pp. 1-236). New York, NY: Penguin Group. Paynter, B. (2013, 01). Suds for Drugs. News & Features. Retrieved 08, 2013, from http://nymag.com/news/features/tide-detergent-drugs-2013-1/ Tanner, J., Raymond, M. & Schuster, C. (2010). Principles of marketing (1st ed.). Irvington, NY: Flatworld Knowledge.
