Abbotsford Tide Detergents Target Market
3.0 Executive Summary
The following report gives an extensive product description of the Tide detergents and the target market for the products. The report has identified that the target market for the detergents are people aged between 25-64 making up over 90% of the detergents used in Abbotsford. The report identifies the main uses of the detergents including cleaning and laundry activities in the Abbotsford households. Through demographic analysis, the report gives a clear, detailed and accurate representation of the Tide detergents customers target demographic, psychographic and behavioral characteristics. The analysis identifies that even though the products price is a little bit higher than its competitors, it is still able to maintain a greater market share due to its quality, brand, and customer preferences for being able to meet their needs or what they look for in the detergents.
The global market for the laundry detergents in the whole world was valued at $ 133 billion in 2016. However, the number is a bit lower when it is Canada alone. In Canada and Abbotsford, the number one detergent brand that is preferred by most households as per the 2015 brand voting is Tide detergent due to its premier product ultra stain release liquid. It was voted again in 2016 for its Tide Plus Febreze (Chui et al., 2017). In 2017, the product was also voted the product of the year by the Original HE Turbo Clean Liquid. In general, the product is most preferred by the Canadians when it comes to laundry and cleaning activities.
Tides offer a wide variety of products. The main products are the detergents. However, it also offers powders liquids, stain removes, and softeners for all kinds of fabrics in the house. The products main purpose for the purchase of the products among the buyers is to clean the house and get a good scent from the clean products. The Tide products are quite unique in their sense that they are quite gentle on the hands of the users.
To be able to get a load of Tide, an individual has to pay around 16-20 cents. The same product, from a different company, may be available at a much-reduced price. However, the brand and the scent of the tide detergents has been ingrained in many Canadians which makes it the most preferred (Haight, 2014).
The 20% that will purchase 80% of the products
From the population report and demographic data, the 80% of the customers are from the ages 25 -64 years who make a total of 23,569 out of the 26,042users which are 90% of the population that uses tide detergents in Abbotsford. At this age, it can have predicted that most of the users are the breadwinners of the family or are in charge of the family decisions. They are the ones that purchase products, food and pay for bills for their family households. According to the statistics from the Abbotsford census report, it is the population that will make up most of the customer for the detergent. Looking at the total customers in this bracket (23,569) out of the 142,395 population of Abbotsford, they make up about 16 % of the entire population. However, they are the ones that account for 90 % of the total sells of Tides detergents (Curtis, 2012). The Tide detergents target market are the married people who have more children. The children and the married couple demand for the detergent are higher than those who have no families or stay alone.
In the household, the detergent can be applied for very many roles. However, most companies produced different detergents for different roles in any household. However, the Tide Detergents, in this case, are used for the following roles to satisfy the consumers. The customers prefer to use the Tide Detergent for its multiple satisfaction. In that not only is it used for cleaning the house and households stuff, it also gives them a nice scent (Huebna et al., 2010). Tide Detergent gives their customers different products with different types of scents. Generally, the customers need it for the laundry cleaning activities, for clothes carpets, some have heavy duty cleaning, cleaning the house for mopping, stain removal and toy cleaning for the children (Chui et al., 2017).
The tides customer demographic profile entails analyzing the customer’s typical age range, Gender and marital status, income background and education levels of the customers. Based on the data collected, Tide Detergents main market targets are the individual aged between the ages of 25-64 with the majority of the users 35-49 years old (Eastman and Stykolt, 2017).
Further analysis shows that individuals in this age group have a middle-level income level which is around 50,000 dollars per year (Ross et al., 2016). They are therefore able to spend more on detergents than the younger population that is between 25-34 years (Curtis, 2012). Furthermore, at this age individual have young families comprising of children in the household. A married couple who managed to get children will need to do a lot of washing as children tend to play around a lot. In this households, the demand for the detergents will be increased.
|Age characteristics||The population of Abbottsford composition||The population in numbers||The population of the composition that uses the Detergents||The number that uses the tide detergents in Abbotsford|
|Percentage of Population Tide Detergents||18% of the total population|
|Male||43||66,455||23 %( above 12 years old)||5994|
|Lost job early||6%||8483||5%||424|
|Start own business||2%||2827||4%||113|
|No Certificate or Diploma||4%||5655||6%||339|
|Secondary/High School Graduate||2%||2827||8%||226|
|University/Other Non-University Cert.||1%||1443||5%||72|
|Post Graduate Degree||1%||1443||4%||67|
3.1 Demographic Characteristics
|Occupation||Total||Percentage||Percentage that uses Tide detergents|
|Technical/Sales/Teaching//Another white Collar||0||0%|
|$150,000 Or Over||0||0%|
Understanding a company psychographic characteristic of their consumers can be quite difficult. However, if the company conducts a focused research on the target group it will help the company with the advertisement and tailoring the products to meet the customer demands.
According to Levy et al (2012), the Tides is the number one seller of the product in Canada. Also observing for the number of people who have been continuously voting for the company to be the number product of the year for the past 5 years shows that the customer believes in the product. Several studies conducted by the TNS in 2017 ranked the Tide Original HE Clean Liquid the best product for users. The company has been able to also boost its image through some of the social initiatives that it has started to compliments its activities (Chui et al, 2017).
The focused study conducted revealed that customers’ belief launching of the social initiative shows that it cares for the customers well being. Additionally, it also boosts the perceptions of the customers that the company will produce products that will be safe to use health wise Chui et al., 2017).
Under this category, the analysis will take into account Abbotsford purchasing activities, use or consumption activities and how they disclose the activities according to Kenyon and Black (2011). Specifically, the analysis determines how the Tide Detergents Abbotsford consumers acquire the products, and everything they do till they make the decision, information search and symbolic associations, disposal and reselling or donating.
From the data analysis of the market composition of the Tide target market the main source of information’s is the word of mouth. The customer overly depends on what customers that have used the Tides detergent have to say before they use it. Additionally, one boost for the company is that it has won very many awards in terms of products ranking making it the number one choice for the customers. The awards that the company wins have as the symbolic signs that the customers have associated with it. According to the research, 55% of the buyers said they trust the products because they have won the number one product of the year (Chui et al., 2017). That way they are sure that the product will be ideal for the had appliances and gentle on their clothes. While the products are available online for purchases and delivery, more than 86% of the customer chooses to go to the supermarkets to pick the detergents themselves (Chui et al., 2012).
The company has been in operation for more than 70 years (Megginson and Netter, 2001). 56% of the consumers in Abbotsford cite that they have been using the product for more than years. The rest have used it for less than ten years. Consumer loyalty is moderate according to Chui et al (2017). Through a survey conducted most customers cited that the main reason for using the product is that it is a quality product and could still fit in their budget. Same quality detergents from other manufacturers cost at least 20% more in Abbotsford (Hudson and Ritchie, 2009). As a result, it is the most preferred by the middle-income earners which are the target market for the products.
Additionally, it is also clear that the household depends on them for income. The packaging of the products especially the cans and the plastic are widely recycled and reused. Most of the polythene bags are kept well. Majority of the Abbotsford are environmentalist and are hygiene conscious.
The city has more than 100,000 people living in it. However, most of the customers for the products are expected t come from Abbotsford West and East, Sumas Prairie and Masque. These are places in the city that have more than one neighborhood surrounding them.
The whole population of Abbotsford is 141,395 people according to the 1017 census report. From the analysis currently, Tide detergent has a market share of about 18% basing from the population that uses the products. However, with continue advertising and improving quality, the Tide market detergents have the potential of reaching 50% (70,700) of the market share in two years (Chui et al., 2017).
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Kenyon, P., & Black, A. (2011). Small Town Renewal: Overview and Case Studies. For full text: http://www. birds. gov. au/reports/HCC/01-043. pdf.
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Ross, N. A., Wolfson, M. C., Dunn, J. R., Berthelot, J. M., Kaplan, G. A., & Lynch, J. W. (2016). The relation between income inequality and mortality in Canada and in the United States: cross sectional assessment using census data and vital statistics. BMJ, 320(7239), 898-902.