Action for Gain Laundry Detergent / Gain Laundry Detergent: Action Plan

Action Plan

Focus on what can be controlled

Retest the product

Choose the target customers

Improve Packaging

Price Strategy

Brand Image and Promotion

Obtain Feedback

The enzyme-driven, stain-removal laundry detergent known as ‘GAIN’ was launched in markets in the year 1969. In 1981, however, the brand opted to alter its positioning as stain remover — it re-positioned and marketed itself as a detergent producing a pleasant scent. All through the decade, the persistent vision of the brand was: leveraging Gain’s wonderful scent experience to buyers looking for a ‘fresh-smelling’ detergent. This positioning strategy prompted a rapid boost in the brand’s business, and, even now, the same positioning is used, drawing in customers looking for the good scent experience it offers (Target Market News, 2007). The brand has gone through numerous re-branding exercises to improve brand position in markets, similar to other P&G brands. Recently, however, Gain has been shown to be trailing behind rivals and losing its market share. The information presented aims to determine the reasons behind this gradual dropping-behind by Gain, as well as studying consumer trends which may have been a factor in the brand’s performance decline.

Action Plan

Focus on what can be controlled

Taking the overall situation and trying to deal with all aspects at once may be rather overwhelming. The bigger objectives have to be separated into convenient and practicable sections (Mielech, 2012). It is important to gain an understanding of brand marketing’s value and purpose (Rehman & Ibrahim, 2011).

Retest the product

Some customers have claimed to suffer mild to severe allergies after using the new laundry detergent from Gain. The company should aim to eliminate chemical and dye content from its products, and manufacture a detergent that can be used even by those whose skin is ultra-sensitive. The product must be altered to make it skin-friendly, and guarantee that no allergies will occur again (Taylor, 2015).

Choose the target customers

Target market refers to a group of individuals or companies a brand wishes to concentrate its marketing/selling efforts on. Often, companies conduct market analysis to decide upon the individuals/companies that will most likely be interested in, or be able to derive benefits from, their product/service. After selecting its target customers, brands make use of marketing’s 4 P’s (product, price, place, promotion) to effectively market their product/service to them. Gain, in particular, can focus on middle class mommies, who wish to get rid of stains and extend clothing life, as their target market (Lauren, 2015).

Improve Packaging

Undoubtedly, package designing is multifaceted. Product packages must be convenient and quick to open; any written information on its back panel must be clear and legible; it must make one trust the brand’s claims; product value should be clearly mentioned; the package must be convenient to hold; and it must be easily disposable. Brands must take care to avoid writing useless and irrelevant information on the package. A simple, but powerful marketing and positioning idea should be developed, and as design of package is a component of the marketing communication mix, it must be consistent with the positioning chosen for the product. Company members in charge of product packaging design would include a project leader, technical packaging engineer, and package designer. The package’s front panel denotes both front and side panels. Product package must allow recognition of brand, no matter which angle the customer views it from. For Gain, a three-dimensional layout beginning with ingredients at the top, followed by product denomination (clearly-stated) in the pack’s middle, and at its bottom, a soup ladle, is recommended (Packaging Sense, 2012).

Price Strategy

While pricing any product, companies must first take into account the prices of competing brands. In case of Gain, the price must be proportionate to competitor prices — neither too high nor too low. Furthermore, the best means of going about fixing a price for new products would be by consulting consumers. Marketing research and focus groups may be utilized for the purpose of determining product prices. Companies have to be careful not to price products too low and forgo profits, or price them too high and lose potential customers. The brand can, however, as part of its promotional strategy, occasionally reduce new products’ prices (Suttle, 2015). The above price adjustments are the responsibility of the finance and marketing departments. Additionally, while selling products online, the company must segregate handling fees from shipping fees. While adopting “partitioned pricing” (splitting aggregate costs into different parts), customers are secured via base price, and not the true aggregate cost. When buyers compare company prices to any reference price, the base price will more likely be dragged into this comparison process (Kolenda, 2015).

Brand Image and Promotion

Company personnel who may be placed in charge of brand promotion-related activities and decision-making include advertising accountant, marketing team, creative director, and legal adviser.

Gain’s promotional team should adopt both online and offline marketing strategies together, and consistent with each other. Brand website must be regarded as the key platform for carrying out marketing efforts. A majority of buyers intending to acquire information on any product/service will, at some juncture, visit the brand website in search of contact details and brand/product information. The basic focus of collaboration of online and offline marketing efforts must be according greater visibility to company website. Anniversary sales and other big promotional events should be advertised via offline media like newspapers, with company website information also prominently displayed; tracking URL’s, Quick Response codes or landing pages can be featured. Through the above techniques, brands can detect audience identity, source, and how many consumers in the market have acted in response to the anniversary promotion, that is, bought the product (Marketing- schools, 2012).

Whenever a business launches a promotional campaign or new product, or attains a business milestone, it must develop and send a media release to local newspapers, magazines, television, radio, and other digital media. It must strive towards development of a business network, as this will prove infinitely handy for marketing cost-sharing and drawing clients/consumers via referrals. However, the challenge here is getting in touch and forging a business relationship with another company that isn’t a competitor, but a seller of complementary products/services (Sandu, 2015). Additionally, promotional campaigns enable companies to ensure that brand identity and image are in line with each other. Gain can adopt all elements of the promotional mix, namely, advertising, sales promotion, publicity, and personal selling (Ubeja, 2014). The most effective sales promotion technique would be offering discounts, as well as pop displays, sales contests, cooperative advertising, and dealers’ gifts (Shah and Sindhu, 2011).

There are several benefits of e-commerce over conventional models of business. These include overhead reductions, access to wider audiences, and better customer service by means of allowing direct purchase of products/services through company website. However, in today’s cutthroat competitive arena, all aspects, namely, website design, safe payment, search engine optimization, and pay-per-click advertisements have to be done exactly right for a company’s e-commerce strategy to succeed (Marketing Donut, 2015).

Obtain Feedback

Company pages on social networking sites help them obtain necessary feedback. Social networking enables firms to interact with a multitude of potential buyers who may have a different outlook towards the company. These people on social media may not view the company as ‘attempting to sell’ a product/service, but may feel that it connects more personally to customers and ‘cares for customer needs’. This helps bridge the seller-consumer divide, and boosts company image in a positive direction. Another means of gaining consumer feedback is by contacting them via telephone or mail following a sale. Such a promotional tactic shows customers that their satisfaction is the company’s foremost priority; also, contacting buyers is a further promotional opportunity. Lastly, the company may send competent salespersons to visit customers and survey them by posing questions regarding what they feel about the purchased product/service. This technique promotes the brand not only as one that cares for customers, but also as one that constantly strives to provide its customers with the best product/service in the market. Information collected can, at some later time, be employed in marketing (Hose, 2015).

References

Hose, C. (2015). Top Ten Promotional Strategies. Advertising & Marketing. Texas: Hearst Newspapers, LLC. Retrieved on 15 September, 2015 from http://smallbusiness.chron.com/top-ten-promotional-strategies-10193.html

Kolenda, N. (2015). The Psychology of Pricing: A Gigantic List of Strategies. Psychology & Marketing. Kolenda Entertainment LLC. Retrieved on 15th September, 2015 from http://www.nickkolenda.com/psychological-pricing-strategies/

Lauren, L. (2015). Why Is a Target Market Analysis Important?. Advertising and Marketing. Texas: Hearst Newspapers, LLC. Retrieved on 15 September, 2015 from http://smallbusiness.chron.com/target-market-analysis-important-22979.html

Marketing Donut. (2015). Online Marketing. Retrieved on 15th September, 2015 from http://googleweblight.com/?lite_url=http://www.marketingdonut.co.uk/marketing/online- marketing&ei=A_xORWZZ&lc=en- IN&s=1&m=101&ts=1442358059&sig=APONPFlofnaXeFzc37v3i4EySZ7ndK2mnQ

Marketing- schools. (2012). Offline Marketing: Explore the Strategy of Offline Marketing. Retrieved on 15th September, 2015 from http://www.marketing-schools.org/types-of- marketing/offline-marketing.html

Mielech, D. (2012). 5 Ways to Help Improve Your Sales. Business News Daily. Retrieved on 15 September, 2015 from http://www.businessnewsdaily.com/3318-meet-sales-goals.html

Packaging Sense. (2012). 10 waystoimproveyourpackagedesign. Design. NattyWP. Retrieved on 15th September, 2015 from http://packagingsense.com/?p=380

Rehman, S.U., & Ibrahim, M.S.(2011). Integrated Marketing Communication and Promotion. International Refereed Research Journal. 2(4). Available on www.researchersworld.com

Sandu, B. (2015). 20 Offline Marketing Ideas That Work. Design your Way. Retrieved on 15th September, 2015 from http://www.designyourway.net/blog/misc/20-offline-marketing- ideas-that-work/

Shah, H.M., & Sindhu, A. (2011). Synopsis on Sales Promotion Strategy of Selected Companies of FMCG Sector in Gujarat Region. Rajkot, Gujarat: Department of Business Management Saurashtra University.

Suttle, R. (2015). New Product Pricing Strategy. Texas: Hearst Newspapers, LLC. Retrieved on 15th September, 2015 from http://googleweblight.com/? lite_url=http://smallbusiness.chron.com/new-product-pricing-strategy- 2782.html&ei=TbU1CkQc&lc=en- IN&s=1&m=101&ts=1442351975&sig=APONPFnjOfdNPTt7ghUiOmdsq4e8hKxbjA

Target Market News. (2007). Black Consumers Drive P&G’s Gain Detergent to Billion Dollar Status. Chicago, IL: Target Market News Inc. Retrieved on 15 September, 2015 from http://targetmarketnews.com/storyid09070701.htm

Taylor. (2015). Hypoallergenic Laundry Detergent: Use It To Avoid Allergic Reactions. Stain Removal 101. Retrieved on 15th September, 2015 from http://www.stain-removal- 101.com/hypoallergenic-laundry-detergent.html

Ubeja, S. (2014). A Study of Sales Promotion Mix on Customer Satisfaction With Reference to Shopping Malls in Indore. Global Journal of Finance and Management. 6(3). 245-252. Research India Publications. Available on http://www.ripublication.com