In our previous blog, we did an exclusive SWOT Analysis of a leading consumer goods company in India, Godrej. Here we will be doing an In-depth SWOT Analysis of Ariel.
It is one of the best laundry detergent brands in India. It is also the Best Laundry Detergents in the UK.
Ariel has grown exponentially in its industry. It still has to improve its digital presence in the market. As most people are using digital platforms it is important for a brand to have a good digital presence. Thus digital marketing is essential for every business in the market, which will help them create a pepper audience engagement. If you are keen in learn what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Thus this makes us captivated in knowing how Ariel is able to gain such wide success in its industry. To understand that we have given an in-depth SWOT Analysis of Ariel. But before we start with its SWOT Analysis let us learn about Ariel as a Company, its products, competitors, financials, and more.
About Ariel
Ariel is a laundry detergent brand developed by Proctor and Gamble European Technology Centre in Belgium. Ariel had made its entry into the market in 1967 and is owned by the US’s FMCG giant Proctor and Gamble. It is a chemical detergent that cleans stains and dirt from clothes. Ariel is a big market player throughout their insurgence from 1967 till date.
Ariel’s products have established an image of the product that could remove and clean the dirtiest of stains. It is known for its cleaning abilities especially with washing machines, as it makes the process fast, simple, easy, and reliant. This has been ariel’s USP over the decades.
Due to which every or most of the washing machine manufacturers advise using ariel to the customer and customers also prefer the same due to its ability to remove any stain with ease and how easy it is for them to use.
Ariel was the first company that introduce fragrance in detergents and made this one of its biggest selling points back at that time. Ariel has always been a premium detergent brand that provided a fresh feeling with the ability to remove any stain with ease of use.
| Founder | NA |
|---|---|
| Year Founded | 1967 |
| Origin | Europe |
| No. of Employees | 1,616 (2020) |
| Company Type | Private |
| Market Cap | $7.094 Billion (2020) |
| Annual Revenue | $461 Million (2020) |
| Net profit | NA |
Products of Ariel
Ariel is a renowned brand in the world and it provides its customers with different products in the market. Following are some of the products that Ariel supplies:
- Washing Powder
- Liquid Detergent
- 3 in 1 PODS
- Detergent Powder
Close Competitors of Ariel
Ariel supplies its products all over the world thus it has many competitors in the market. Following are some of the top competitors of Ariel:
- Surf Excel
- Henkel
- Nirma
Now that we know about the company let us start with the SWOT Analysis of Ariel.
SWOT Analysis of Ariel
SWOT Analysis helps Ariel to grow in the market by helping it by showing an overview of the company. It can analyze the company overview and find out what changes needs to be made. Strengths and weaknesses are the internal factors of Ariel and Opportunities and Threats are the External factors of Ariel.
Let us start with its SWOT Analysis by first looking at the Strengths of Ariel.
Strengths of Ariel
Strengths are the thing, work, or skill that one is an expert on and distinguish them from others. Following are some of the Strengths of Ariel:
- Brand Quality and Trust – Ariel has an absolutely good brand quality and trust as it has been around for decades and also the constant positive reviews and references from customers as well as other manufacturers. Brand Quality and Trust are not achieved in a few years, there is a consistent amount of effort and channeling of feedbacks to outcomes that have to take place, which ariel has proved to have been able to achieve and still pursue.
- Market Share – In terms of India Ariel has the second largest market share but is highly being challenged by its competitor’s Surf Excel, Tide, Nirma. Having such a big market share ads to the economies of scale, reputation/ goodwill, innovation, etc. It also gives the chance of having a monopoly in the designated market segment.
- Machine Wash Ease and Referrals – Machine wash ease means that ariel is known for the ease of use of its products especially with washing machines and almost most of the manufacturers suggest or provide an ariel product with their machine to use for which shows the brand value and quality of its product.
- Marketing Strategy – Ariel has been able to do them both by acquiring a huge market share and uplifting its brand image and goodwill to its customers, partners, investors, etc through continuous development and marketing campaigns.
- Creative and Options – Ariel has been creative since the first day by being the first-ever company to introduce fragrance into detergents, coming up with their liquid matic technology, and many more. On top of that, they also provide a lot of options to their customers like – Ariel anti-germ matic washing powder, liquid detergent powder, 3 in 1 pod, and many more.
Weaknesses of Ariel
Weakness are the things that an organization or brand is not good at and is also inherent within the organization or brand. These are the areas that are needed to be worked upon and decrease the list of weaknesses. Following are some of the Weaknesses of Ariel.
- Price Sensitive Markets – Places like India and China are highly price-sensitive markets and ariel needs to consider its pricing strategy to not lose any market share as they are already a premium brand.
- Multiple Preference of Brands – Customers prefer multiple brands for multiple purposes and jump from brand to brand. Some people prefer cheap brands for daily clothes and premium brands for occasional or expensive clothes. This is where ariel has a backfoot as it is more premium and people only require premium detergent on occasions rather than the regular usage clothes.
- Digital Presence – Though ariel has its websites, blogs, and other digital adversaries. It still lacks in digitally placing its brand to potential customers. Their digital presence is not up to the point, there is still room for improvement in the online side of the business. They are active in running social media ads and campaigns, advertising but the reach is quite not there yet given the fact that it’s a P&G brand and is a premium product in its market industry.
Opportunities for Ariel
Opportunities are the advantages that would be beneficial for brands and organizations. These need to be identified through extensive market research and study. Once you know about the opportunities, you have an advantage over your competitors. Following are some of the Opportunities for Ariel:
- Market Penetration – There is a scope of growth of the Indian detergent market by 7-8% which ariel can find an opportunity to move ahead of its competitors and acquire.
- Variants – Ariel can introduce a new segment of variants at a cheaper price for the lower middle class and rural area people. This would also help them expand their reach and acquire new customers & market share in the long run and also provide options to its customers.
- Untapped Market – Ariel can acquire market share in the emerging markets and the rural areas of developing or developed countries.
Threats to Ariel
Threats are the phenomena that can impact an organization or brand negatively like changes in prices, deviant supply chains, and also competitors. Threats are to be taken utmost care of, as they can hamper an organization’s or brand’s growth and profit. Following are some of the Threats to Ariel:
- Counterfeit Products – There is a major threat to a companies reputation and brand image. Being a detergent brand there are many rural vendors that try to earn profit through these counterfeit products.
- Changing Tech – Brands that are not dynamic enough to adapt to the changes will not be able to survive in these rapidly changing markets.
- Ambush marketing – Ambush marketing means being on the coattail of a big campaign or event without even participating or sponsoring the same. For example, Surf Excel sponsors an R&D Scientist in Ariel’s R&D Technology Event. Brands need to be aware of this and be at the forefront of such threats.
- Government Norms and Tax Policies – This is quite a general threat to every major industry as the government can bring in new norms and tax policies without any prior notice and it can affect the operations of the business. So it is always better and advisable to stay updated and in sync with the updated norms and policies.
- Competitors – As businesses grow, competitors too and there are a lot of competitors in the market. The main competitions of ariel are surf excel, tide, Nirma, ghari, wheel, rin, etc. Surf excel, tide and ghari have already beaten ariel in market share of the lower- middle and the rural class people whose percentage is higher as compared to the market segment ariel has captured.
With this, we have reached the end of the SWOT Analysis of Ariel. These analyses help Ariel to get a larger idea of the market and its standing which will then be useful to make proper strategies.
Conclusion
On the study of the SWOT Analysis of Ariel, we have known that it is one of the best laundry detergent brands in India. Ariel has a good brand quality and trust, it also has a large market share. It can bring more variants in its products and can enter the untapped market to increase its market share. But even with such advantages, Ariel suffers some flaws in the market.
The price-sensitive market and its lack of digital presence along with the Counterfeit Products create a negative impact on the companies growth. It can improve its market stands by implementing the latest digital marketing techniques. It is important for every business to have a digital presence as most people are using digital media. If you are keen on learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
If you would like to read such detailed analyses of different companies, find more such insightful case studies on our IIDE Knowledge portal.
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