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De La Salle UniversityRamon V. del RosarioCollege of BusinessFINALS PAPER: What strategy can JoyDishwashing Liquid execute to improve itscompetitiveness in the market?In Partial Fulfillment of theCourse Requirements forPrinciples of Marketing1 st Term, SY 2020-Submitted by:Chun, Justyne KaileyKing, ...

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De La Salle University Ramon V. del Rosario College of Business

FINALS PAPER: What strategy can Joy Dishwashing Liquid execute to improve its competitiveness in the market? In Partial Fulfillment of the Course Requirements for

Principles of Marketing 1st Term, SY 2020-2021

Submitted by: Chun, Justyne Kailey King, Kyle Kenjo Mercado, Althea Angela Naldoza, Carmella Mae Submitted to: Prof. Iris Lenore J. Ostrea Submitted on: January 18, 2020

INTRODUCTION A dishwashing liquid is a detergent used in washing different kitchen utensils. It is usually a foaming mixture of surfactants and is primarily used for hand washing of plates, utensils, and cooking tools in a sink. It is a concentrated liquid that can cut tough grease and effectively remove bad odor and food stains. Commonly used brands of dishwashing detergents in the Philippines are Joy, Smart, and Axion. These three are tough competitors in the market. Joy being the leading dishwashing detergent brand in the market, its competitiveness is challenged by Smart and Axion.

Joy dishwashing liquid is the leading dish-cleaning detergent product that was previously owned by U.S. based cleaning products manufacturer and marketer Procter & Gamble but, now, it is owned by Joy Suds, LLC. Joy was introduced in 1949 as the first liquid dish soap. In 1962, it became the first detergent to be packaged in a plastic bottle. In 1968, they introduced Joy with a lemon scent which began the overall trend of lemon-scented cleaning products. They started advertising in 1971 and it was the first liquid detergent to emphasize performance in its advertising. The Joy brand was introduced in Japan in the 1990s where it became the market leader for a period of time. Smart Anti-Bacterial dishwashing detergent is highly recommended for manual dishwashing, pots, and pans, and cleaning kitchen sinks and floors. It is tough on grease and germs but retails at an affordable price. Smart Anti-bacterial dishwashing detergent comes in Lemon and Calamansi fresh scents and is also available in both liquid and paste. It is manufactured under ACS manufacturing corporation who has been producing world-class products since 1977 (ACS Manufacturing Corporation, n.d.). Ultra-Axion dishwashing liquid’s powerful grease-cleaning formula eliminates dirt, stain, and grease from your plates and kitchenware.

Its

powerful

cleaning

formula

contains

an

exceptional anti-bacterial agent that kills almost up to 99.9% of bacteria, moreover, it comes with a fresh lemon and calamansi scent that makes dishwashing more pleasant. Axion is a product marketed by Colgate and Palmolive and it is available mostly in Asia and Latin America.

VIEWPOINT The decision-maker of the case will be the head of the marketing department of Joy. The marketing department plays an important role in the promotion of the business and its mission. Its job is to reach out to potential customers and investors and create a positive image of the company. Specifically, the marketing head is responsible for finding solutions to the marketing related issues and problems that a company faces. Hence, he/she has the final say on what strategy will Joy Dishwashing Liquid execute in order to improve its competitiveness in the market.

TIME FRAME Joy started advertising its product during the 1950s. For SMART, the earliest advertisement was around the 2000s and Axion’s advertisement started in the early 1990s. With this case, the competitiveness of Joy was challenged during the arrival of different brands, specifically during the arrival of Axion sometime in June 1994 , that offered the same products as them in the market.

PROBLEM Over the years, the rise of different dishwashing brands has become recurrent. The presence of different dishwashing brands that offer similar varieties of products is everywhere in supermarket stalls and grocery stores. Competitors of Joy Dishwashing Liquid emerged in the market and challenged its competitiveness. With this, what strategy can Joy Dishwashing Liquid execute to improve its competitiveness in the market?

OBJECTIVES -

To determine approaches that prescribe various ways to build a sustainable competitive advantage.

-

To develop a strategy to attain advantage against competitors.

-

To minimize risks that might arise in the future.

AREAS OF CONSIDERATION A brand’s competitive advantage depends on a number of factors that are interconnected and should not be missed in order for the brand to dominate the market. Some of these factors include customer preference, stockholder values, and the ability of the brand to act and react in a competitive market. In order to analyze and identify the strategy that can help Joy Dishwashing Liquid improve its competitiveness in the market, a SWOT analysis/matrix is considered in identifying and understanding the key issues that affect the performance of the brand. This will be useful to get a better understanding of the brand’s strengths, weaknesses, opportunities, and threats that will help them assess and enhance what they are good at, address what needs improvement, minimize risks, and take certain actions for a competitive advantage. Below is a SWOT analysis of Joy Dishwashing Liquid for consideration. INTERNAL FACTORS WEAKNESSES:

STRENGTHS: ●

It

has

the

consumers

trust since

of ●

expensive.

brand has been around

●

JOY Dishwashing Liquid SWOT Analysis

●

●

The product can easily be imitated by other

brand name and high

brands. ●

Joy

has

a

Joy contains moisturizer

degree

to prevent the user’s

diversification.

hands from drying out. ●

●

It has a hugely popular

brand loyalty. ●

other

brands, Joy is quite

the

since the 1940s.

Compared to

●

of

limited business

The packaging of Joy

Consumers prefer Joy

is

since they have

brands; they need to

different variants.

separate their design

They have strong

in order to be easily

advertising and

distinguished

marketing.

consumers.

They use high-quality ingredients to produce

●

similar

to

other

by

Joy may cause skin allergies

or

skin

their products. OPPORTUNITIES: ●

●

Joy can try and

EXTERNAL FACTORS

By developing new

markets.

and high brand loyalty

Joy can avoid

Development of

they can start

product imitation.

new scents and

expanding globally.

●

Find alternative

Engage in a contract

ingredients that are

products.

with potential existing

still high in quality but

Strengthen its

partner companies in

costs less to lower their

distribution network

other industries to

product price without

nsure market

lessen the risk of failure

sacrificing its quality.

etration in the

in diversification.

el. y can expand rnational operations. They can seek ways to lower prices. They could partner with other popular brands to introduce new products. ●

●

varieties of products,

ximum optimal

●

Since Joy has a hugely popular brand name

ting market at a

●

●

W/O Based Strategies:

venture into newer

varieties of

●

S/O Based Strategies:

irritation.

Creation of ecofriendly products.

●

THREATS: ●

Competitors in the

●

They can find ways to

cheaper

products in the market.

the price while still

By improving

keeping the same

detergents.

consistency in

quality.

Intensive

producing high-quality

competition among

products, intensive

developing other

competitors in the

competition among

cleaning products for

market can reduce

competitors can be

diversification.

business for Joy.

avoided.

The market

There is global and local competition among dishwashing products. It can easily be imitated which would reduce their market share.

●

●

reduce costs to lessen

suddenly change.

●

Develop and introduce new and distinctive

demand could

●

●

W/T Based Strategies:

market who offer

dishwashing

●

S/T Based Strategies:

Lowering product prices may sacrifice product quality.

●

●

They can venture into

ALTERNATIVE COURSE OF ACTION As different brands of dishwashing detergent emerge in the market over time, new trends and competition are forcing existing brands to redesign their business models and find new ways to improve its competitiveness in the market. In turn, brands are trying to explore new strategies that could help them enhance their competitiveness in the market. After careful consideration of the SWOT analysis of Joy Dishwashing Liquid, proposed strategies for the brand to have a competitive advantage: 1. Global Expansion and Partnership - Having a hugely popular brand name, Joy can expand its market globally by partnering with potential existing partner companies to lessen the risk of failure in diversification. Advantages ➔ The market of Joy will expand. ➔ Joy can learn new alternatives for a better dishwashing liquid. ➔ The company will not have a hard

Disadvantages ➔ It can create competition against existing companies in the area. ➔ Joy will have a hard time earning the customer’s trust since there will

time marketing their product since

be product competition against

they partnered up with an existing

other brands.

company.

2. Develop New and Distinctive Products - Joy can develop and introduce new and distinctive products that are new to the market with high quality. This can give them a competitive advantage over their competitors and can ensure that customer standards and satisfactions are met. Advantages ➔ The company can build trust with its customers. ➔ It can result in fewer customer complaints and returns. ➔ High-quality products produce a higher return on investment.

Disadvantages ➔ It may be costly for the business to produce high-quality products because of the materials needed. ➔ Selling a quality product can be expensive for customers. ➔ It is time-consuming because it takes time to train the employees

to create a high-quality product.

3. Production of products using alternative ingredients - Development of products with alternative ingredients, but still high in quality, that minimizes production costs for the brand to offer cheaper products without sacrificing its quality could be a competitive advantage for Joy. Advantages ➔ It could attract more consumers. ➔ It could increase revenue and profits

Disadvantages ➔ It involves great risk for the brand to try out new ingredients. ➔ There is still a possibility that the

➔ It could minimize the cost of

quality of the product will change.

production.

4. Venture into new markets - Joy can venture into new markets by developing other varieties of cleaning products to offer a wide variety to the customers. This could help them diversify their products to reach out to more potential customers and help grow the operations of the business. Advantages ➔ This could enhance the revenue and profitability of the brand. ➔ This can maximize the use of unutilized resources. ➔ This could offer the opportunity for

Disadvantages ➔ Diversifying will demand new skill sets. Lack of expertise can be a setback for the company. ➔ A mismanaged diversification can lead the company to over

exponential growth and brand

expanding which could result in

recognition.

insufficient resources and lack of attention. ➔ A diversified company will not be able to respond quickly to market changes because the focus on the operations will be limited which can limit the innovation within the company.

DECISION MATRIX A weighted decision matrix was used to compare alternatives with respect to multiple criteria of different levels of importance. By extensively evaluating the choices, the most suitable course of action among the choices will be able to guide Joy to be aggressive in the market. WEIGHTED DECISION MATRIX ALTERNATIVE COURSES OF ACTION CRITERIA

WEIGHT

ACA 1

ACA 2

ACA 3

ACA 4

Score

Total

Score

Total

Score

Total

Score

Total

Cost-Efficiency

4

3

12

3

12

3

12

2

8

Financial

3

4

12

4

12

4

12

4

12

Innovativeness

5

4

20

5

25

4

20

5

25

Market Share

5

5

25

5

25

4

20

4

20

Profitability

4

4

16

4

16

5

20

4

16

Risk Capacity

3

2

6

5

15

3

9

5

15

Strategic

5

4

20

5

25

3

15

4

20

Sustainability

Alignment TOTAL

111

130

108

116

RECOMMENDATION On the analysis of Joy Dishwashing Liquid, the problem identified revolves around the competitiveness of the brand due to the emergence of different brands in the market that offer the same products as them. By analyzing and identifying which aspect of Joy requires more focus, a SWOT analysis/matrix was considered to get an in-depth understanding of which area of the brand needs to be prioritized. After careful consideration, it is recommended for Joy to develop new and distinctive products. Doing so can give Joy an advantage among its competitors in the market, can improve its reputation, and can also increase its sales, revenue, and profitability. Implementation of a successful product development strategy can help Joy achieve business goals such as entering new markets, selling more to their consumers, and winning from their competitors.

PLAN OF ACTION An action plan helps people in an organization know what needs to be accomplished and how it will be achieved. By following an action plan, Joy can track their own pace, obstacles, and efforts given in the road to success. Prioritizing, along with the proper allocation of time, all tasks needed to achieve their goal needs to be organized in order of importance for the brand to know what requires more attention. For Joy Dishwashing Liquid to successfully and efficiently execute the strategy that can help the brand improve its competitiveness in the market, provided below is an action plan for implementation. ACTIVITY

MEASURE

PERSON- INCHARGE

Review the

Organize a

General

organization’s

meeting with

Manager

mission

the executives

statement and

of the

corporate

company

START DATE

END DATE

March 1, 2021

March 21, 2021

March 22, 2021

April 22, 2021

objectives Conduct a

Collect and

Head of

marketing

analyze data

Research and

audit and

and

Development

research

information

Department

and report findings Set measurable Plan what will

Head of

marketing

be the

Development

goals

direction of the

Department

April 22, 2021

May 13, 2021

May 14, 2021

May 28, 2021

May 29, 2021

June 29, 2021

June 30, 2021

July 14, 2021

July 15, 2021

July 29, 2021

July, 30, 2021

January 30,

product

Create and ask Schedule a

Head of

for budget

meeting with

Marketing

the Finance

department

department Develop a

Conduct a

Head of

concrete

meeting in

Development

marketing mix

order to

Department

strategy

formulate

(Product, Price,

innovative

Promotion,

ideas

Place) Reevaluate

Scan and

General

and finalize the

double-check

manager

plan

the plan

Wait for the

Submit a

approval of the recommendati CEO

General Manager

on letter to the CEO

Obtain and

Find potential

Human

allocate

suppliers

Resource

materials

Director and Accountants

2022

Development

Production and Head of

of New Product manufacturing of new

Development

January 31,

June 30, 2021

2022

Department

products Advertise

Release

Head of

through

advertising

Development

different forms

campaign

Department

of media

materials

Launch the

Execute an

Human

products

Event

Resource

July 1, 2022

July 15, 2022

July 16, 2022

July 20, 2022

July 21, 2022

August 21, 2022

Director and General Manager Analyze results

Interpret

All of the

carefully and