In the last article, we did a 360-degree SWOT Analysis of Gatorade. Today, we will be looking at the SWOT analysis of Tide.
Tide is one of the highest-selling detergent brands in the world with an estimated 14.3% of the global market. They have been in the business since 1946 and have witnessed a century of technological advancement and will continue to do so. Their future will also be equally exciting because they have designed a product that people need in their life and will continue to do so in the future.
In present times, Tide became a very successful brand only because of its marketing strategy and marketing efforts. In a world full of digital advancement, everything is online and if you are interested in learning about the latest trends in marketing, go over to our Free MasterClass On Digital Marketing 101 by Karan Shah, the CEO and Founder of IIDE.
In this case study, we will learn about the SWOT Analysis of Tide. But first, let us know about the company and the product better.
Tide is an American detergent brand launched by Procter & Gamble In 1946. Tide laundry detergent was originally a synthetic meant for heavy-duty, machine cleaning – an advance over the milder cleaning capabilities of Fewa and Dreft detergent brands.
Tide was first released in 1946 as the world’s first heavy-duty detergent in test markets in the United States, and nationwide distribution was completed in 1949. The company swiftly established dominance in the US detergent industry, dwarfing Ivory Snow’s sales and hastening the downfall of two of its key competitors, Rinso and Gold Dust Washing Powder, both Lever Brothers brands at the time.
Today, Tide is known for its load of laundry facility in which Tide uses the most sustainable ways to wash and clean clothes for millions of people in times of need. Slowly the brand entered other countries like India, Europe, the United Kingdom etc. In India also, Tide is one of the best laundry detergent brands followed by competitors including Airel and Surf Excel.
|Founder||Procter & Gamble|
|No. of Employees||N/A|
|Company Type||Brand by P&G|
|Net Income/ Profit||N/A|
Products of Tide
- Tide Pods
- Liquid Detergent
- Powder Detergent
- Laundry Boosters
- Stain Removers
- Odour Removals
Competitors of Tide
- Surf Excel
- Unilever’s Purex
As now we have a better understanding of Tide, let’s look into the SWOT Analysis of Tide.
SWOT Analysis of Tide
Carrying out a detailed SWOT Analysis of Tide helps in finding its strengths, weaknesses, opportunities and threats. Understanding internal strengths and weaknesses and external opportunities and threats. SWOT-analysis helps in forming correct objectives and plans for the future.
So let us go ahead and first have a glance at the strengths of Tide from the SWOT analysis of Tide.
Strengths of Tide
Strengths represent everything that an organization is good at and why it sets them apart from the competition. They are the internal and positive attributes of any company. Tide’s strengths are:
- Global Reach: Tide is extensively available in all the markets. Whether it be a small village or a metropolitan city, Tide is available everywhere. The reason behind is Tide’s excellent marketing efforts, Tide has strongly positioned itself as the best brand of laundry detergent since its inception in 1946.
- Brand Recognition: Brand recognition and awareness are outstanding. Tide has become one of the most important household names and it doesn’t even need recognition. Tide 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.
- Leading Market Position: As compared to other detergent companies, Tide has a leading market position. In terms of India Tide has the largest market share, giving Tide the chance of having a monopoly in the designated market segment.
- Support of P&G: Having a stable and strong parent company P&G has given a boost to their brand and helped in development.
- Machine Wash Ease and Referrals: Machine wash ease means that Tide is known for the ease of use of its products especially with washing machines and almost most of the manufacturers suggest or provide an Tide product with their machine to use for which shows the brand value and quality of its product.
- Initiatives other than Product: Tide is always committed to CSR initiatives. Other than product marketing and sales, the brand focuses on educating its customers on how to save the environment with sustainable cloth washing techniques.
- Promotion Strategy: The company has always invested well in the promotion of its products and many times sponsored several NASCAR stock cars.
Weaknesses of Tide
Weaknesses pull an organization back from performing at its best. They are the negative internal factors that weaken business strengths. A few drawbacks or weaknesses of Tide are:
- Price Sensitive Markets: Places like India and China are highly price-sensitive markets and Tide needs to consider its pricing strategy to not lose any market share as they are already a premium brand.
- Digital Presence: Tide 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.
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- 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 Tide has a backfoot as it is more premium and people only require premium detergent on occasions rather than the regular clothing.
Opportunities for Tide
Opportunities are the factors that provide an organization with a chance to edge over others. They are the external factors that can contribute to the success of any company. Certain opportunities that Tide has:
- Technology Advancement: With the help of advanced technology, they can create something new as this is what consumers are searching for.
- Marketing in Rural Areas: People in rural areas are changing to use detergent at a very fast rate, and marketing could be a golden chance for Tide to flourish.
- Identifying Niche Markets: The USP is often used to price any commodity, and Tide is white at a cheaper price. This would be fascinating to see how they might identify and develop a niche market in which they could build a monopoly.
- Market Penetration: There is a scope of growth of the Indian detergent market by 7-8% which Tide can find an opportunity to move ahead of its competitors and acquire.
- Untapped Market: Tide can acquire market share in the emerging markets and the rural areas of developing or developed countries.
- Stealing Market Share: Having a strong parent company to support them and a powerful brand image, “stealing” the market shares of their competitors is still a viable option using the latest technology to present alternatives to the competing products.
Threats to Tide
Threats are the factors that can affect an organization in a harmful way. These are the external factors over which no company has control. A couple of Tide’s threats are:
- Environment Policies: Government policies prohibiting the use of surfactants and chemicals pose a significant risk.
- Duplicate Products: Phoney products, Malpractitioner can easily introduce fake items with identical names and packaging for a product like detergent.
- Price Competition: Pricing wars with competitors, Because the industry’s competitors are all large corporations, price battles can be devastating for one or the other.
- Environment Safety: Is detergent safe, detergent is a material that contains a lot of additives during the manufacturing process. In this circumstance, Tide will ensure that they follow all applicable regulations to ensure that they are both safe and environmentally sustainable.
- Competitors: As businesses grow, competitors too and there are a lot of competitors in the market. The main competitions of Tide are Surf Excel, Ariel, Nirma, Ghari, Wheel, Rin, etc. Surf excel, Ariel and Ghadi are tough competitors in the lower-middle and the rural class people.
This ends our elaborated SWOT analysis of Tide. Let us conclude our learning below.
On studying the SWOT analysis of Tide, we got to know that Tide is one of the best laundry detergent brands with good product quality and a large market share. It can expand its product line and enter previously untapped markets to expand its market share. But even with such advantages, Tide suffers some flaws in the market.
The price-sensitive market, as well as the company’s lack of digital presence and counterfeit products, have a damaging effect on its growth. Applying the most up-to-date digital marketing strategies can help the company in enhancing its market positions. We are living in a digital era and it is important for every business platform to have a digital presence as most people are using digital media. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Tide has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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