Analysis

1. Price-Point & Competitor (Namely Surf Excel):

The price of Ariel, a product of Proctor & Gamble Pakistan, varied
between different stores, with the variation ranging from as low as Rs.15 to as high as
Rs.40. This suggests that stores with a higher buying power were able to negotiate with
the manufacturer for a much lower price. This enabled them to sell these products
forward to the customers at a much lower price as compared to the normal retail
environment. Consequently, this increased customer retention as people in today’s
uncertain economic environment are looking for ways to cut down their cost of living
as much as possible.

2. Point of Purchase Merchandising:

While touring the retail stores, no such point of purchase merchandising
such as signs, posters, stickers or any kind of promotional material was found regarding
Ariel. However, at one of the marts, a gondola for Ariel was seen, and as well as for the
Surf-excel. This makes sense, considering that Ariel is in direct competition with Surf-
Excel by Unilever Pakistan and promotion of Ariel alone would lead to disagreements
with the other major brand.

3. Shelving and Visibility:

Ariel and Ariel downy had separate shelves and were placed at eye-level
in all the LMTs and small grocers. More often than not, these products were placed next
to Surf Excel, which also had a separate shelf all to itself and was also placed at eye-
level. This is because it is often said that eye-level is the buy level. Expensive products
are placed at the eye level because the super-market wants you to buy them more. In
addition to this, Ariel in Hyderi Super was placed at the end of the aisle. Conversation
with the store manager revealed that the placement of the Ariel at the end of the store
actually leads to increment in sales. This is because the customer is able to get the time
he needs to being adjusted in the aisle before he can make a purchase.

4. Competition:
One of the things worth noticing is that along with the shelving format, the prices of
these two washing detergents belonging to two different companies had the same price
point for the same size packs. For example both 500g packs were priced approximately
the same (Rs.145 for Ariel Original and Rs.150 for Surf-Excel Original). This is logical
as both brands have a tough competition against each other, each struggling for a greater
share of the same market segment. However, it should be noted here that a short
conversation with the store manager of Diamond Super Market in North Karachi
revealed that the demand of Ariel and Surf-excel has dropped significantly due to rising
financial constraints faced by different families, and only the true friends of these two
brands of washing detergents have continued making the same purchase decision. More
and more people are moving towards price-sensitive products that meet their basic
needs; i.e. general washing efficacy at a low price. In this case, the promise is being
fulfilled by brands such as Bonus. The marketing department of these two different
brands need to revamp their promotional efforts in order to justify the higher price they
are charging, if they want to maintain their grip over the market.