Strategy of Uniwhite

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Business English

Le Fol Kevin IBM 2012

Introduction

The Britain’s larger producer of household detergents, Uniwhite, launched its first product ten years ago. It was an new lye called Miracle and able to wash at 40°C. That launch was great for Uniwhite, the “Miracle” happened to help poor and laborious housewives! That was a success, which brings steadily to the producer a 51% share of the household detergents market and to the market leading. Few times later, energy savings became important for the consumers and losses of market share (down 17%) are an inevitable result. That is why, Uniwhite decided to create, develop and sell a new kind of washing powder that is able to wash in cold water. “The new formula Miracle” contains an enzyme that makes the product very effective at low temperature. In fact this enzyme is reacting with the dirt and release it from clothes. It fit with the needs of the market. The problem was that Uniwhite knew about the potential risk on the skin when enzymes are used. Because the company saw its main competitor closed its factory during few days, cause of the enzyme that is itchy and irritant for the skin. Even with this demonstration, the Britain producer wanted to keep its formula in hiding the word “enzyme” on the packaging. The decision was to call the enzyme “Bioboost” in the aim of attract the consumer. Hopes were good for the company and the “new formula Miracle” knew a bigger success, at the launch, than the original “Miracle”. Sadly, two months later, some events have harmed the reputation of this new product. Therefore, the sales are falling since a month and the situation is critical for the objectives of the company. The aim of this report is to describe the different factors of weaknesses and documents about the “New formula Miracle” and analyse the results to find an issue at this crisis.

Findings

The “New formula Miracle”...
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