Ad-Lider Embalagens, SA is one of the Brazil’s largest manufacturers of plastic bags and packaging. Problem:
Ad-Lider Embalagens, SA want to launch a new product – drawstring trash bag named Climp Fecha Facil (Easy Close). They want to understand consumer preference, habits and impact of marketing mix to launch the product. Analysis:
Brazil is one of the largest countries of the world with garbage bag market estimated around $ 120 million. Brazil’s customer base is divided into Sophisticated (A & B) 19% people contributing to 52% consumption. Followed by Lower middle class ( C) 30% population contributing to 28% consumption and lower class ( D & E ) with 51% population contributing to just 20% consumption. In short, A& B are the target segment for Ad-Lider. Ad-Lider’s total sales in 1998 were $ 21 million and forecasted to be$ 25-27 million by 2001.That is 17.5% of total trash bag market. Ad-Liner has launched a new product in the consumer segment - trash bags with draw strings. Their main competitor is Fort-Roll which makes Dover Roll brand, the market leader and quality of symbol to many customers. Ad-Liner hired a Marketing Research company; they conducted focus groups in two main cities in southeast and came up with these results. Most of the decisions are made by women, directly or indirectly. Limp-o-Lixo has the highest brand awareness in market followed by Dover roll and then climp. 50 L capacity bags have the highest demand followed by 100 L capacity bags. As people use grocery store bags for bathroom or small trash use. The research showed that people in Rio are not price sensitive and associate themselves with Dover roll brand. Reasons for Dover being liked are: it is not transparent, is resilient and has a strong closing system. In Sao Paulo people are price conscious and do not associate with any particular brand. Mostly 100L bags are used by SP households as garbage man comes 3 times a week only, so people need big and strong...
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