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Tide Pods Market Analysis

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Ashley Wallace

on 16 May 2013

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Transcript of Tide Pods Market Analysis

By: Allison Scanlon
and Ashley Wallace Market
Analysis Total
Market Target
Market Market
Segmentation SWOT
Analysis Size Location Trends Location Trends Size Behavioristic Usage Rate Benefits Loyalty Demographic Income Age Family Life Cycle Geographic Liberal Cities Urban Cities/College Towns Psychographic Busy Lifestyle Adventurous personalities Measurable Substantial Accessible Differentiated Actionable Description Strengths Opportunities Weaknesses Threats Summary Product - Tide Pods are three-chambered liquid detergent packs that make laundry more efficient and convenient Targeted Consumers - middle to upper middle class ($60,000/per year or above for each working individual) Working parents with multiple children - a lot of laundry, little time Young working couples - likely to live in an apartment complex, two disposable incomes not spent on children 18-64 age group
more likely to try new products
busier lifestyles Heavy
Average American family does 400 loads of laundry per year 23.95% of Americans choose Tide Products for their laundry needs Tide Pods provide three high quality products in one easy-to-use capsule
laundry detergent
stain remover
brightening agent 313,914,040
- 74,397,627
193,316,413 U.S. Citizens
Under 18
Above 18
Below the Poverty Line
Total Potential Market consumers in liberal areas (California, Oregon, Seattle) will be drawn to the environmental benefits of Tide Pods
high efficiency washing machines United States of America consumers who live in dorms or apartments carry large laundry detergent bottles up and down flights of stairs, and could greatly benefit from Tide Pods Urbanites and college students enjoy a fast-paced lifestyle and are more willing to try new products The length of the average american work day is increasing, and consumers have less time to complete their household chores consumers who are always buying the "next big thing" are likely to purchase Tide Pods 313,914,040
x 21%
x 80%
34,360,143 U.S. Citizens
Under 17 or over 65
Adults 18-64
Making $100,000+
Middle Class 18-64
Non-rural Areas
Target Market Convenience -97% of consumers were satisfied with the time, effort, and results of using Tide Pods Powerful brand name - the average american spends $12/year on Proctor and Gamble products Features - Tide Pods contain 3 chambers: a laundry detergent, a stain remover, and a brightening agent. They are fully disolvable, unlike many competitor's laundry capsules College Towns Liberal Cities Cost - Tide Pods cost about 10-25% more per load than liquid detergents Competition - Proctor and Gamble delayed the product launch of Tide Pods several times, which allowed competitors to develop similar products Specific use - Tide Pods are an individual capsule and cannot be sub-divided; budget-conscious consumers cannot divide Tide Pods for lighter loads Develop a Tide Pod for Dishwashers (similar to Cascade Complete) Take advantage of the environmentally-conscious trend (Tide Pods are eco-friendly because they are soluble in cold water) Tide Pods work well with high efficiency washing machines, which are increasing in popularity Current Competitors - Delayed launch of Tide Pods allowed competitors to develop similar products Economy - Consumers are more budget-conscious since the recession began Safety - There have been some reports of children eating Tide Pods due to their candy-like size and appearance Price - Proctor and Gamble sells Tide Pods at a 10-25% premium over other Tide Detergents Place - Tide Pods are sold at Walmart, Target, Costco, CVS, Walgreens, Amazon.com, and many other retail stores Promotion - P & G launched a $150 million dollar ad campaign to promote Tide Pods The laundry pod market represents 7.3% of a 7 billion dollar laundry market, so there is enormous profit potential for Tide Pods Tide Pods already control 68% of the laundry pod market, and created $131 million dollars in revenue in 2012 Proctor and Gamble executives estimate that Tide Pods will earn $300 million dollars in revenue in 2013 Proctor and Gamble has serious brand power; 98% of American households have at least one P & G product in them P & G could threaten to pull other products off of Walmart's shelves if they refused to distribute Tide Pods Tide Pods can be found in almost any large retail store (Target, Walmart, Costco, Sam's Club) the market is measurable because we can define it with age and income Tide PODS are aimed at a premium market - those who can afford convenience will not hesitate to purchase in spite of a minor price increase. Large potential market Target busy, open-minded places and people Competitive Advantages: convenience, design, brand Potential Competitors - Unilever has not released a laundry capsule. They are the second biggest corporation next to P&G. Already control 68% of the laundry pod markets "The U.S. organic industry continues to expand, growing 21.8 percent and reaching $17.8 billion in consumer sales in 2006." (Franchise Help) "Consumer-driven U.S. organic market surpasses $31 billion in 2011." (Organic Newsroom) "Not only are Americans working longer hours than at any time since statistics have been kept, but now they are also working longer than anyone else in the industrialized world." (ABC) "The number of people in the U.S. living in poverty in 2010 rose for the fourth year in a row, representing the largest number of Americans in poverty in the 52 years" (Washington Post) "In 2010, the number of families living in poverty was 9.2 million, up from 8.8 million in 2009. The family poverty rate also increased, from 11.1 percent in 2009 to 11.7 percent." (U.s. Census)
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