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Tag: Tide

  • Cannibalization- Why Do Brands Cannibalize Their Existing Products (With Examples)

    Every Business has faced this situation, where there’s depletion in the company’s sales turnover as a new product has been introduced, repercussions affecting the sale of old products in the similar product line.

    In other simple words, generally, Cannibalization refers to eating one species, where the devourer belongs to the same species. Just like that, in the business field, the instigation of modern products is coupling the demand and supply of former products.

    Obviously, people purchase the new launch and totally overlook the old product considering it a banal version of a similar product line, moreover this is prevalent in business.

    For instance, Apple constantly releases a series of iOS to its customers, when the company introduced iPhone 12 Pro, people were enthralled to acquire it and ultimately shut one’s eyes to its previous version-iPhone 12. Thus; Cannibalization engenders no vicissitudes in the company’s sales turnover regarding existing products but gradually accelerates sales growth for the new product.

    What is Cannibalization?
    Effects of Cannibalization
    Why is there a need for Cannibalization in Brands? How they overcome Cannibalization?
    Five examples to state that Cannibalization works for existing products:
    FAQ

    What is Cannibalization?

    Numerous corporations practice Cannibalism in Brands, by discounting existing products to compete with their recent products in the market. As a result, this will bring an augment profit on both existing and new products of the company. Besides, Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.

    Effects of Cannibalization

    Just like Newton’s third law: for every action, there is always an equal and opposite reaction. So, when the incorporation did anything, then it would definitely influence the incorporation in terms of sales or production.

    If the company inaugurates a fresh product, say McDonald’s comes up with BTS meals, no wonder the BTS armies are everywhere and BTS meal is hyping up in recent times, albeit the existing food products like Big Mac or McMuffin are receiving derivative fond as customers prefer BTS meal to any other foods in McDonald.

    Therefore; no one holds any reprehensible for the loss of the company’s market share, but itself the company by inaugurating new products as one of the newest versions of its old products.

    Why is there a need for Cannibalization in Brands? How they overcome Cannibalization?

    Cannibalization plays a crucial part in brands; where existing products are overlooked because of the newest product introduction. This will accelerate the demand for new products and decrease the sales of former products of its similar product line.

    Businesses cannibalise their existing or outdated products by employing two ways to meet the same demand of their new product:

    Discount

    Company plans to touts existing products due to cannibalization, by providing discounts on such products in order to compete with the same demand for fresh products.

    For instance; Samsung has launched its new version Samsung Galaxy F22 in July 2021, which overruled its preceding product Samsung Galaxy F12 which came to the market in April 2021.

    What is the company planning to do, provided the former Samsung Galaxy F12 sales slump due to the demand for Samsung Galaxy F22 inflates?.

    Factually, it is apparently evident that people would buy stuff when it is provided at a discount rate. So, the company vents former products at a discount price, where people fall for Samsung Galaxy F12 rather than paying a higher price for its newer version.

    E-commerce

    This pandemic became a beneficiary to e-commerce, where everything is supplied through Amazon, Flipkart or Myntra etc. E-commerce is the best way to captivate customers by generating many offers such as festival offers, Today’s Deals or deal of the day etc. For instance, Amazon recently applied for 26th-27th July Amazon prime Day India by selling products at low prices.

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    Five examples to state that Cannibalization works for existing products

    Cannibalization for existing products can be seen in every company when a new product is launched ranging from low-cost products like school supplies to high-end products like vehicles. The cannibalization of existing products can be proved through these examples.

    iPhones

    Apple introduced iPhones which cannibalized iPods
    Apple introduced iPhones which cannibalized iPods

    Steve Jobs, the founder of Apple in his biography has quoted saying that ”If you don’t cannibalize yourself, someone else will”. And likewise, Apple itself cannibalizes its products.

    The iPhone first model was launched in June 2007. During this period Apple was coveted for its iPods and sales were at a high rate but Apple came out with iPhones that practically had the music feature along with phone services with internet connectivity and media support.

    This led to consumers straying towards iPhones as they were a better substitute for iPods. This product like in the case of iPhones is an example of Self Cannibalization.

    Coke-Zero

    Coke Zero Cannibalized Coke
    Coke Zero Cannibalized Coke

    Coca-Cola, famous for its product Coke and Diet Coke, chipped away at its sales by introducing Coke-Zero targeting the male population that worried about their sugar intake in 2006 in the UK while compensating their total revenue.

    Coca-Cola has also cannibalized itself by introducing Minute Maid, Fanta, etc. and removing coke and its variants as the essential face of the company.

    P&G’s Tide Detergent

    Tide Detergent was introduced to cannibalize P&G's Ivory Soap
    Tide Detergent was introduced to cannibalize P&G’s Ivory Soap

    Procter & Gamble was mainly known as a manufacturer of soap and was known for its Ivory Soap which had drawbacks of its own like dirt wasn’t removed when used with hard water.

    So even with risking cannibalization of their Ivory Soap, the company went ahead and introduced Tide Detergent in 1946 which was the first synthetic detergent that could deep-clean clothing as P&G didn’t want to be cannibalized out of the soap producer industry.

    Maruti Suzuki Alto

    Maruti launched Alto which cannibalized Maruti 800
    Maruti launched Alto which cannibalized Maruti 800

    Maruti Suzuki Alto manufactured by Maruti Suzuki was introduced in 2000. It was the Indian built version of the fifth-generation Suzuki Alto. In 2006, it was India’s largest selling car and by 2008 it had crossed 1 million in terms of production. But this increase in sales was only achieved by eating away the sales of the famous Maruti Suzuki 800. This was done with the help of price cuts and an ad campaign that lured many.

    WeChat

    WeChat was introduced to cannibalize QQ
    WeChat was introduced to cannibalize QQ

    China’s Tencent famously known as the world’s largest gaming company and the most-used internet portal used QQ an online instant message service during the period when desktop computers were the hype.

    QQ failed to meet the standards with the development of smartphones and electronic devices. Therefore Tencent ordered a group of engineers to develop a messaging platform that would cannibalize QQ. Thus, WeChat was developed and released in January 2011.

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    Conclusion

    When human beings, in general, see something better, they essentially want it and feel inadequate with the thing they already possess and an urge to be updated with the upgraded version begins to fester. This is exactly what leads to the cannibalization of products.

    The overlooking of existing products for a new one. If this phenomenon doesn’t work, there wouldn’t be customers for a newly launched product be it smartphones or vehicles.

    Also known as corporate cannibalization of market cannibalization, this phenomenon is also the doom for a company as this nips away the sale of the previously introduced product. Thus proving this phenomenon to be double-edged.

    FAQ

    What is the example of brand cannibalization?

    Coke Zero was introduced by Coca-Cola which chipped away the sales of Coke is one of the famous example of brand cannibalization.

    What is Cannibalization?

    Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.

    Why do brands cannibalize their existing products?

    Brands usually cannibalize their existing products to accelerate the demand for new products and decrease the sales of former products of its similar product line.

  • As Indian As It Can Be-Indigenous Marketing Strategies of Tide

    Washing is one of the most important chores of an Indian household. We have many international and national companies that have held the market for so long. However, Tide stands a level higher than the rest of them. They have woven their marketing strategies in such a manner that even after 20 years of its launch in India, many of us do not know that Tide is a US company.

    They have revolutionised the Indian detergent market with their synthetic compounds that made Tide one of the most profitable brands of P&G. Although it was launched in the US as a heavy-duty laundry detergent in 1946, it entered the Indian markets only in 2000. Since then there hasn’t been a look back for Tide.

    According to various studies, it is estimated that Tide holds 13% of the Indian detergent market share and is third only to Indian companies like Ghadi and Nirma. Over the years, they have been successful in carving out their own space in the industry despite being a foreign company. At this juncture, the article will explore the marketing strategies of Tide which renders them so indigenous.

    Empathising With Local Sentiments
    Perfect Targeting of Audience
    Unique Campaigns and Catchy Tag Lines
    Attractive Packaging
    Affordability and Positioning Through Segmentation
    FAQ

    Empathising With Local Sentiments

    The first factor that enabled Tide to have a stronghold in the competitive yet incompetent Indian market was its ability to launch products and advertisements with a clear understanding of the problems of the users.

    Firstly, it is widely known that people in charge of the households are genuinely trying their best to make things smooth and easy. However, removing tough stains have always come up as a herculean task.

    Time and again, Tide has come up with modifications in its product that makes it easier to remove stains that contain carbohydrates and proteins. Similarly, their ads completely acknowledge the difficulties faced by users and portrays themselves as offering a solution to their problem.

    Their ads are also reflective of national and regional sentiments regarding festivals, the whiteness of clothes etc. They have also addressed the issue of detergents being harsh on hands and have offered solutions for that as well.

    Perfect Targeting of Audience

    In India, family is a very important entity and women are the ones who take most of the familial decisions. Although the gender roles associated with domestic chores have been changing, the fact largely remains that women are in charge of domestic chores. This has inadvertently made Tide focus on Indian women through their ads. Especially homemakers.

    Whenever they launch a product or a campaign, they make sure that it will be attractive for Indian homemakers. Most of their ads and campaigns can be seen pitching themselves exactly in places worthy of it. For example, they have launched their soap bars and detergents in a range of varieties and prices which will suit the needs of their target audience.

    Unique Campaigns and Catchy Tag Lines

    This is one of the most important aspects of Tide’s marketing strategy. Their campaigns always have a positive social message while emphasising the benefits of using Tide. For example, campaigns like #TideGivesExtra, #TideWhite etc. have been successfully able to benefit from exploiting the Indian desire for white clothes and attention.

    They have also identified the loopholes and problems in the sector to come up with effective campaigns. One such campaign would be that of white collars. We all know the embarrassment that a dirty collar can bring. Identifying this, Tide launched the #CollarUpWithTide campaign which was an immediate hit. Similarly, its unique campaigns and catchy tag lines have helped the company tide over its competitors.

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    Attractive Packaging

    When it comes to marketing strategies, the packaging is its cornerstone. Tide has aced this part of marketing with grace and creativity. Its vibrant orange and white packaging is very distinguishable amidst any crowd.

    Tide Packaging
    Tide Packaging

    Apart from the colour, it has also brought in many innovations to its packaging too. They have recently launched a package that suits e-commerce platforms that prevent leakage and damage when transported over long distances through unpredictable modes. However, it is yet to be launched in India.

    They also have special packaging like packets, sachets, cartons, cans etc. which attracts the customers as it gives them a wide variety of choices.

    Tide Different Packaging's
    Tide Different Packaging’s

    Affordability and Positioning Through Segmentation

    Tide has been successful in being economical while being a premium brand. This is because they have launched products in different price ranges. They have divided their products into popular, premium, super-premium and what not. Hence, while it becomes accessible to the mass population, it also gets equated with other premium brands. Such an effective marketing strategy has helped Tide to expand its bases to all sections of society.

    Conclusion

    Upon analysis of the marketing strategy of Tide, it becomes evident that it is their ability to understand and respond to the issues of the Indian households that made it so popular and close to the consumers. They have also not held themselves back in promoting strong social messages.

    To be welcomed and accepted as an indigenous company in such a short span of time is not an easy task. Tide makes the importance of understanding the target audience more clearer now.

    Lessons have to be learned from their constant efforts to expand into newer sections of society without being too elitist. Considering its dynamic strategies there is no doubt that Tide will continue to grow its business in the industry in future as well.

    FAQ

    When was Tide detergent launched in India?

    Tide detergent was launched in India in 2000.

    Is Tide detergent an Indian company?

    No, Tide detergent is an American brand of laundry detergent owned by P&G.

    What is the target market of Tide detergent in India?

    Tide Detergent primarily targets Women age group from 18 to 54 years old.

  • Is Tide Going to Space? Why & How (Explained)

    We have seen our parents use Tide to wash our dirty clothes. But, can you imagine Astronauts using Tide to wash their clothes? I know you may find this question stupid. But, this thing has turned into reality.

    Tide and NASA have tied up to make a fully degradable detergent that will help Astronauts wash their clothes in space without water. Astronauts don’t have to worry about their clothes and can focus on other important things. Sounds exciting right? Keep reading this article to know more about this interesting project.

    Importance of Fully Degradable Detergent
    How Tide Detergent will be Extremely Beneficial for Three Years Mars Mission
    How the Tide Detergent will Help to Solve Problems on Earth as well
    Tide Degradable Detergent
    FAQ

    Importance of Fully Degradable Detergent

    You may think that fully degradable detergent that will help washing clothes without water may not be very useful. But, you are wrong. Astronauts in space cannot wash their clothes as it would require a lot of water.

    Other major challenges with the laundry system in space are compatibility with NASA life support systems and the risk that the ingredients of the detergent will cause harm to the Astronauts.

    As they cannot do laundry Astronauts wear the clothes again and again. Once the clothes get stinky they are ejected with other waste to burn up in the atmosphere or sent back to Earth as trash.

    Astronauts need to exercise for two hours every day. As you can imagine after doing so much exercise their clothes will get dirty easily. Due to this, they need to carry a lot of clothes while going to space. An Astronaut requires up to 68 kgs of clothes in space each year. The cargo is used to carry or store dirty clothes. The detergent will help the Astronauts save that precious cargo weight and use it for some other life-supporting gear.

    How Tide Detergent will be Extremely Beneficial for Three Years Mars Mission

    Most Importantly, this detergent would be extremely beneficial for a three-year Mars mission. They don’t need to carry tons of clothes with them during this long journey. Do you know Astronauts need to turn dirty laundry water into drinking water? This is because ISS has closed-loop water systems.

    This means that Astronaut wastewater like sweat, urine, and moisture from their breath is captured. Then all the impurities are filtered out to turn it into water. Since the detergent will not use any water, the filtration process will not occur. Now, Astronauts don’t need to worry about filtering the dirty laundry water. NASA and Tide Detergent aim to turn this laundry water into drinking water.

    How the Tide Detergent will Help to Solve Problems on Earth as well

    Apart from saving the cargo storage of Astronauts if the detergent is successfully made it will have many benefits on earth as well. Most of the detergents contain ingredients that can pollute the watershed after we throw out dirty water there.

    Due to this Detergent, we won’t use a lot of water. This will help us to keep Oceans, Rivers clean. A quarter of the world’s population doesn’t have enough water. The Detergent would help us to save a lot of water.

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    Tide Degradable Detergent

    The deal with Tide and NASA is estimated to be $111,000. Tide scientists are using Machine Learning Technology and existing data to find out what things will work and what will not in space.

    Detergent has not been made yet and currently, scientists are working on it. In December, as an experiment both the companies will send the detergent to the space station.

    Onboard a 2022 cargo launch to the space station, “Mission PGTide” (P&G Telescience Investigation of Detergent Experiments), teams will test the stability of cleaning ingredients under microgravity conditions and exposure to the radiation levels experienced in space in partnership with the ISS U.S. National Laboratory and SEOPS.

    In addition, the stain removal ingredients and performance will be tested on board the ISS through experiments with Tide To Go Wipes and Tide To Go Pens. The Astronauts will see the product’s reaction to weightlessness. In May Astronauts will receive the Stain removal pens and wipe for testing purposes.

    Tide To Go Wipes and Tide To Go Pens
    Tide To Go Wipes and Tide To Go Pens

    ”Through private-sector utilization of the space station, companies like P&G can conduct investigations in ways not possible on Earth to develop new consumer products, enhance existing products, and better understand processes that further business models both on the ground and in low Earth orbit. We look forward to this first investigation of Tide in Space and hope that many more will soon follow.”, said Dr. Michael Roberts, Acting Chief Scientist for the ISS National Lab.

    P&G is developing a washer-dryer combo as well. This will use less water and detergent and would work on both the Moon and Mars. On Earth, this machine will help the people living in arid regions.

    Conclusion

    We can all hope that the detergent and other stain removal products work and don’t disappoint the Astronauts. As told before Detergent is not yet made. If Tide and NASA successfully make these products then this would be a revolutionary thing for both the Astronauts and for the people on Earth.

    We will only wait till December and May. If products are working then they will be very useful in the upcoming three-year Mars mission and for all future missions.

    FAQ

    Why did Tide and NASA have tied up?

    Tide and NASA have tied up to make a fully degradable detergent that will help Astronauts wash their clothes in space without water.

    Has Tide made the Degradable Detergent?

    Detergent has not been made yet and currently, scientists are working on it.

    When will the testing of Detergent and other Stain removal products be done?

    In December, as an experiment both the companies will send the detergent to the space station. In May Astronauts will receive the Stain removal pens and wipe for testing purposes.

    Why is Tide making a Detergent for Astronauts?

    Astronauts in space cannot wash their clothes as it would require a lot of water. So, the Astronauts wear the clothes again and again. Once the clothes get stinky they are ejected with other waste to burn up in the atmosphere or sent back to Earth as trash. The Detergent would help Astronauts wash their clothes without water.

    What is the estimation of the deal between Tide and NASA?

    The deal with Tide and NASA is estimated to be around $111,000.