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Proposed Study of Champion Detergent

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Kim De Leon

on 15 February 2015

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Transcript of Proposed Study of Champion Detergent

INTERNAL ANALYSIS
External Analysis
Proposed Study of Champion Detergent

Executive Summary
Industry Definition & Overview
Champion Detergent falls under the laundry Detergent Industry. There are five major leading players in this industry and they are Proctor and Gamble, Unilever, Peerless, Henkel and Church and Dwight. P&G are the proud owners of Tide, Unilever is associated with Surf, Peerless is associated with Champion, while Henkel are the holders of Purex and Church and Dwight are the manufacturer of Arm and Hammer. Proctor and Gamble offers its product lines beauty and grooming, baby and family care segment, fabric and home care, and health care segments. Henkel Company operates in three business areas home care like laundry detergents and dishwashing liquid. Personal care products such beauty and oral care products and adhesives, sealants and surface treatments for consumer and industrial purposes. Unilever Company manufactures consumer care products, cleaning agents and personal care products. Church and Dwight Corporation the company specializes in developing sodium bicarbonate products and markets household and personal care.
Market Analysis
Detergents industry is a smart industry that is continually developing, expanding and using innovative marketing techniques. As a whole, the industry caters to a younger market, and some detergent brand aim their product at a low class crowd thats why we choose to be uncompromising. when others start promotion we strive for product perfection. To make its products affordable, the company brought down its costs by producing its own primary raw materials, particularly the surfactants. This did not only enable the company to minimize costs, it also ensured that the quality of its raw materials would not be compromised and that supply and delivery would not be a problem. And because excellence has to start within, we look for sincere, honest and passionate people. That is how granule holds the cleanest and purest of intentions. The consistency of Champion can be seen by the naked eye, it can be experienced by the user. All the granules of Champion powder are the same. The granules dissolve evenly, leaving the water clear unlike other detergents, which leave sediments.
Introduction
Industry Analysis
Driving Forces

Macro-Environment Analysis (see list below)

Analysis of the task environment using Porter's 5-forces model of competition


Threats and Opportunities ( EFE Matrix)
EASE OF ENTRY
It is hard to enter this kind of business because many experiment should do to approve your detergent unlike fast food industry it is very easy to enter. The sources of competitive last longer in this industry, and firm also tend to benefit from having constant set of competitors.

CAPITAL REQUIREMENTS
The detergent industry requires large capital requirements due to manufacturing equipment, facilities, locations, distribution,marketing programs and other expenses to put up the same business. As we all know, manufacturing companies need large spaces for production and it would be hard for a new entrant to keep up with its competitors.

Market Size
Competitor Analysis
Key success Factors
Assessment of industry Attractiveness
Champion Detergent Powder provides cleaning solutions for small and medium industries such as laundry shops, restaurant, water stations and others.
Champion Detergent Powder are essential to personal and public health. Through their ability can loosen and remove soil from a surface, also they contribute to good personal hygiene, reduce the presence of germs that cause infectious disease, extend the useful life of clothes, tableware, and make our homes and workplaces more pleasant.

Nature of the business
Currently, the way of gaining customers of Champion is mostly through internet, advertisements on television and through referrals. One of their goals is to capture household market because nowadays, most households avail products the can be seen on televisions, they wanted to capture household market or a larger market without spending too much on advertisements like televisions ads, billboards and the like because if they would do that , the price of the Champion Detergent Powder would somehow increase and they didn’t want to be in line with the branded products because if that happens, they would feel obliged to spend money on advertisement. Champion Detergent Powder are trying to achieve for now, achieve a larger scale of market including households at a minimal expense and keeping their profile as a “Tapat po sa Inyo”.
Value chain Analysis
Competitive Strength Assessment (competitive Profile Matrix)
Financial Analysis
Strengths and Weaknesses ( IFE Matrix)
Evaluation of Present Corporate Strategy / Business Strategy
Values, Ethics and Corporate Social Responsibility (current practices)
Existing Company Vision and Mission
Generic Strategy Being Pursued
Source of Competitive Advantage (Resource & Capabilities, Distinctive Competence
All industries are characterized by trends and new development that gradually or speedily produce changes important enough to require a strategic response from participating firms. Champion detergent tends to create strategic planning in emerging new internet capabilities and application through social media. Nowadays, social media is very useful for a company to reach their goal in marketing their products.

In today’s fierce battle of laundry detergents, one brand comes to mind whenever these tenets for success are mentioned. Champion laundry detergent rose to prominence by taking the path few big players dared tread. It grew around the principle that putting the needs of the consumers above anything else was the key ingredient in forging a long and lasting relationship with its target market. The company behind the fast-growing laundry detergent put a premium on understanding these needs and made this the central focus in producing a range of high-quality products. Unfazed by challenges, the most trusted detergent slowly yet surely cut through the clutter of industry competition and was warmly welcomed in countless Filipino households.

Threat of New Entrants/ Potential Competitors
 There is an increasing amount of new brands appearing in the market with similar prices.
 Nowadays, direct competitors of champion detergent had a strong brand identity. Champion detergent establishing a strong brand identity to enable more households to identify with champion’s attributes.


Threat of Substitute Product
 There are many kinds of laundry detergent products in the market.

Bargaining Power of Buyers
 High number of customers
 Price sensitivity
 The ability to substitute
 Cost of changing

Bargaining Power of suppliers
 Few number of suppliers


Rivalry among Competitors
 High consumer loyalty
 Many commodity products
 Customer switching cost
 Terms of quality

POLITICAL Factors
This factor looks at how government regulations and legal issues affect a company's ability to be profitable and successful. Thus, as for Champion detergent, company makes sure that the Philippine government policies are being complied. They produce products with high quality and as provided by the government. Their conformity as to tax policies is being assured also.
These help them to compete in the market for the long run and one of the reasons why they were on a stable position in the industry.

ECONOMIC Factors
The company sees to it that the products they provide are affordable for the consumers. It also has a high contribution to the economic growth of the country.
It consider inflation and interest rates, economic stability, anticipated shifts in commodity and resource costs, unemployment policies, credit availability and unemployment policies.

Social Factors
Nowadays, the population has been ageing. This has increased the costs for firms who are committed to use detergent products. In buying perspective people affect their buying behaviors when it come to product its brand, feature, quality and price so now buyers are practical in consuming their needs in product. The high number of employment also gives high impact in the firms.

Technological Factors
It cannot be denied that technologies nowadays are innovating year by year. So as to Champion Company, they embraced innovative technologies that helped them increase their production. Moreover, internet also has a high impact to every business industry. That’s why champion uses internet to introduce its products to widen their consumers.

Environmental Factors
The Champion Detergent is a safer detergent that reduces risk to people and the environment by preventing pollution. Champion is also credited for using environment friendly ingredients while providing what most Filipinos look for in a laundry detergent. Champion detergent has a long track record of responsible environmental stewardship, and are committed to making the lives of consumers around the world better, now and for generations to come, with product that deliver the best performance while protecting the environment.

Legal Factors
PESTEL Analysis of Champion detergent


In today’s fierce battle of laundry detergents, one brand comes to mind whenever these tenets for success are mentioned. Champion laundry detergent rose to prominence by taking the path few big players dared tread. It grew around the principle that putting the needs of the consumers above anything else was the key ingredient in forging a long and lasting relationship with its target market. The company behind the fast-growing laundry detergent put a premium on understanding these needs and made this the central focus in producing a range of high-quality products. Unfazed by challenges, the most trusted detergent slowly yet surely cut through the clutter of industry competition and was warmly welcomed in countless Filipino households. In 1977, Champion was officially launched by Peerless Products Manufacturing Corporation, after extensive studies on uncompromising performance and efficiency. The need to come up with a high-quality product was fused with a staunch commitment to give consumers access to a new, superior laundry detergent that would be easy on the budget.

The result was an overwhelming success even without the mainstream advertising. Champion inched its way to becoming a leading laundry detergent in the country. Filipino households immediately found an ally in Champion — a product that delivers its promise to ease and help laundry needs while taking into consideration the financial constraints that most Filipino families have to deal with. In spite of the changes in product range and the move to a broader market reach, Champion remained affordable. Along with its ability to fight the toughest stains, maintain the vibrant colors of clothes and give a refreshing scent, Champion is still available at a “Filipino-friendly price.” Champion holds the highest rank in the most commonly known but second in the most used detergent by Filipino’s in Metro Manila. Anticipating a marketing counter-attack from competitors, Champion commissioned a series of adverts, targeted at their key demographic of 25-45 year old housewives.’

As Champion detergent moves with the changing times, it is not enough that the brand rests on its laurels. A strategic roadmap was put in place to bring Champion to where it is today and usher the brand to a more promising future. These brought soap-opera style drama, family values and the brand’s ‘essense’of honesty.

As a result of Champion’s retail growth and creative communications, consumers were assured of an effective solution to their laundry needs. Champion became among the top brands in terms of awareness and consumer loyalty within the laundry detergent category, and the brand continues to look for ways to serve the needs of consumers by introducing innovations to its product range. Champion detergent gave the sophisticated readers practical advice to care for their more stylish, delicate and premium clothes.




MILESTONE OF CHAMPION DETERGENT BAR

1997 - Champion was officially launched after extensive studies on uncompromising performance and efficiency. The brand was launched with very little fanfare and has since made its way into the hearts of millions of Filipino consumers, even without mainstream advertising.

2002 – Laundry detergent was one of the biggest categories in the fast moving consumer goods industry. Champion is now one of the top three laundry detergent brands in the country, accounting for about 20 percent of the market.

With the homegrown brand already established in these selected provincial markets and the second factory (in Laguna) already built, Champion entered Metro Manila and went nationwide.
It got itself brand ambassadors deemed best suited to represent Champion—Susan Roces, the queen of Philippine cinema; host Ryan Agoncillo and TV personality turned Congresswoman Lucy Torres-Gomez.

September 2010 – Champion Detergent Bar created their first TVC with their ambassador, Ms. Susan Roces.

November 10, 2011- Champion became the most popular brand in Manila, and second most popular nationwide.

February 23, 2012 – Champion reduced its adspend by 20% but maintained its number one position in Metropolitan Manila.

January 16-18 2013 - contract making of Champion Infinity the title sponsor of the 2013 Philippine Ladies Open slated at the Malarayat Golf and Country Club in Lipa City, Batangas.

October 25, 2013 – The brand was awarded as the “Golden Champion” during PPMC’s 50th Anniversary and 90th Birth Anniversary Celebration at Rizal Ballroom, Makati Shangri-La.
TIDE
Tide was introduced in 1946 as the world's first heavy-duty detergent, and it outsold every other brand within weeks. It became so popular that store owners were forced to limit the quantity purchased per customer. In 2005, Tide Coldwater was introduced, allowing consumers to reduce energy bills by delivering deep cleaning in cold water. And today, all Tide liquids use recyclable packaging, and 2X Ultra Tide's concentrated formula has reduced plastic packaging by 43%, meaning less waste for the planet.

Price : Php 9.00


ARIEL
Ariel first appeared in the UK market in 1968 as the only laundry detergent with stain-removing enzymes. Its high-sudsing powder designed for twin-tub and top-loading washing machines yielded immediate success. With the rise in popularity of automatic front-loading washing machines, a suitable low-suds variant was launched in the early 1970s. Ever since, Ariel has vied with Tide for leadership among our laundry brands.

PRICE: Php 9.00

SURF
Surf works with experts in aromas from the leading perfume house in the world to develop products with amazing fragrance – using exciting ingredients such as essential oils and natural extracts to lift up your laundry and inspire your senses.

PRICE: Php 8.00

PRIDE
Pride Powerwash is ideal for washing machine because it has low lather formula. Hence clothes move more freely and your washing machine cleans more efficiently. Low lather makes rinsing also makes rinsing easier and faster.

PRICE: Php 8.00

BREEZE
Breeze is dedicated to showing you that dirt isn’t always bad. In fact, Dirt is Good – especially when it’s the result of your kids going out into the world to have fun, explore, learn and experience the very best the world around us has to offer. Not only will this help develop kids’ understanding of their world, the environment and nature, it will also shape their values, grow their confidence, benefit their health and ultimately help them reach important milestones.

PRICE: Php 9.00

We have sound capability in
* Marketing with the ability to effectively research, develop and communicate appropriate value propositions.
* Building and Maintaining strong brand equity
* Selling and Distributing our product effectively
* Influencing the proper installation of our product

Total
As shown in the table above, the total weighted score gained was 3. And as a result, the total weighted score indicates that the product is strong among its competitors.


Values
The need to come up with a high-quality product was combined with a staunch commitment to give consumers access to a new, superior laundry detergent that would be easy on the budget. With this, the Champion becomes the leading laundry detergent in the Philippines.
Ethics
The champion laundry detergent is considered as one of the leading company in laundry soap in terms of the environmental factor. They maintain their product as an environmental friendly in line with the ingredients they used.

Corporate Social Responsibility
Champion detergent assures that the product they produce was good enough to the users. They also give a better place to work for their employees. They set up a free training for their workers to gain additional knowledge. This action will be viewed as an asset to all of the communities that it serves, while developing a positive public profile.
Mission
- Making energy safe, efficient, and clean
Vision
- We are a recognized, global leader committed to innovation, our people and a better world by creating engineered solutions for the energy industry.
The affordability of the product was one of their generic strategies. Producing of another variant of laundry soap cannot affect its price. It is the Filipino price quality products where consumers can afford to buy this laundry soap were they can be satisfied.
The competitive advantage of champion detergent soap is their affordable price and its quality. Its quality combined with affordability make their business successful. Their company brought down its costs by producing its own primary raw materials particularly the surfactants, they ensure that the raw materials they used would not compromise their product.
POWER OF BUYERS
The power of buyers in this industry are high because detergents are one of their basic needs in life. Almost everyday people wash their clothes and they need a detergent to make it more fragrant/aromatic.

THREATS/OPPORTUNITIES
THREATS : Champion Detergent produce its own primary raw materials particularly the surfactants, they ensure that the raw materials they used would not compromise their product.
OPPORTUNITIES : achieving deeper channel penetration with existing products, launching new products and expanding internationally.

SEASONAL/CYCLICAL FACTOR
This industry does not have intrayear cycles in sales. Detergent is considered as a necessity and it is used almost everyday.
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