Management Problem: Management has invested one million dollars in obtaining the manufacturing machine for new drawstring trash bag product line named Climp Fecha Facil (Easy Close). They are curious about how to make the launch successful because they need sustainable long term profits. Therefore, they are trying to make such marketing mix which achieves their desire targets. Research Problem: The two senior executives were carefully considering how the findings of the marketing research they had commissioned would impact the launch of their new drawstring trash bag product line. They were looking for information about consumer preferences, consumer habits, and perceived competitive advantages that would impact pricing, product size, and distribution decisions. Findings Women are involved in monthly shopping mostly Advertisement influence women purchase decision
Women are rational while men are curious-like to experiment
Price, practicality and quality are fundamental attributes for housewives.
Color: House wives in Sau Palou liked black color for large bags and blue color for small bags.
Interpretation Women are the main purchaser Women purchase decision could be altered through advertisement. It is difficult to convince women for buying the product than men.
Women are much conscious about price, easiness of the product, and strength of the product.
In Sau Palou:
Housewives like to use black color bags for storage of bulk quantity of garbage. They think color black has more
Implications Fecha Facil promotion theme should target women Fecha Facil’ advertisement should focus women in their advertisement. Design promotional campaign in such a way that convinces women for the purchase of Fecha Facil. Price should be kept attractive to women. The bag should be designed so that it would be easy to use. The strength should be adequate to satisfy women in their households. In Sau palou:
They should large quantity black color. They should small quantity
position bags in position bags in
Housewives in Rio De Janerio liked blue color for large bags and black color for small bags. In Sau Palou, small usage bags were purchased from salespeople. They considered blue as of poor quality. In Rio, supermarket bags were used for small usage.
Super Market Plastic bags: Supermarket bags ‘use was high in Sau Palou and low in Rio De Janerio.
strength. They like to use blue bags for small quantity of garbage. They think that blue color is weak in strength which they purchase from salespeople at their doorstep. In Rio De Janerio: Housewives like to use blue bags for bulk quantity of garbage quantity because they think that blue has more strength. They like to use balck bags for small quantity of garbage because they think that black bags are weak which they purchase from supermarkets.
In Sau Palou: Housewives trust more in supermarket bags. As housewives in Sau Palou are not price conscious, therefore there would be no issue that supermarkets bags are cheap. Supermarket bags might be easy to use. Supermarket bags might satisfy their needs. In Rio De Janerio: Housewives are brand conscious.
blue color. They should also do canvas (door to door selling) initially for small size blue bags to attract housewives who purchase at their doorsteps from sales people. In Rio De Janerio: They should position large quantity Fecha Fecil in blue color. They should position small quantity Fecha Fecil in black color. Since, supermarkets sell only one brand, they must try to make target as many as supermarkets to sell their small products. If they find difficulty to convince supermarket, they must find out whole sellers or distributors who can sell near to these supermarkets. In Sau Palou: Try to position Fecha Facil in most of the supermarkets. Conduct same exploratory research in other supermarkets.
In Rio De Jenerio: Conduct promotional campaign to create awareness about the Fecha Fecil.
Reasons for using Plastic bags: Housewives in Sau Palou take them as of low cost and throw them after use House wives in Rio Dejnerio used it because of its easiness to close with its handles.
Brand Recognition: No brand recognition was found in Sau Palou. Dover roll was recognized in Rio.
Capacity:
Plastic bags are priceless to them.
Housewives want handles in plastic bags because they can close it easily with handles.
In Sau Palou: Housewives are not brand conscious there. In Rio: Housewives are brand conscious there.
In Sau Palou:
20L,30L,40L,50L,100L bags were used in Sau Palou 15l, 30L, 50L were used in Rio.
They use different sizes for different purposes
Price of Fecha Fecil should be as same as that of plastic bags so that housewives of Sau Palou would take it instead of plastic bags. Fecha Fecil should have adequate handles as a closing system. In Sau Palou:
In Rio:
Conduct promotional campaign to create awareness about the Fecha Fecil.
In Sau Palou:
Launch the Fecha Fecil in following sizes.
In Rio: Launch the product in following sizes In Sau Palou: Position both large and small sizes bags In Rio: Position small sizes bags.
Garbage collection: Garbage collection was not daily in Sau Palou houses. Garbage collection was daily in Sau Palou apartments. Garbage collection was daily in Rio. Price: Housewives of Sau palou houses were not price conscious. Housewives apartments conscious.
of
Sau were
palou price
Housewives of Rio apartments were price conscious but do not want to compromise on quality of the product.
They use large size bags. They use small size bags They use small size bags
The housewives of houses admitted to be willing to pay a bit more than for Dover. The housewife residents in apartments would pay the same as for Dover, even though it had a different Closing system.
Although this fcus group is willing to pay more but we cannot implement different prices in in different segments. Price should be less than or at least equal to the price of the competitive products. In this ways, we can target all three
focus groups in both SP and Rio.
In Rio:
Difficulties with Garbage Bags: In Sau Palou house , they had difficulty to close large black bags for which they had to use rubber bands. In Rio, they had difficulty of weakness and ripeness in blue bags.
Printing on bag: In Sau Palou , housewives liked printing on bag. In Rio, they also gave attention to good printing. Roll or folded: despite In Sau Palou , preferences in roll packaging, they were not big purchasers of them. They liked black which came in fold. In Rio, they liked Roll. Important aspects for purchase: Resilience: In Sau Palou, black was more resilient In Rio, blue was more resilient. Capacity: Important for housewives of apartments in Sau Palou. Closing aspect: The closing aspect of the bag was important; however, the participants did not mention it as
Housewives of Rio apartments admitted a willingness to pay a certain value/premium over Dover
There is no system in large (black) bags to close them.
The strength of large bags (blue bags) is not good.
Printed bags are liked by housewives in SP as well as in Rio
Black color is more important to them.
The handles should be capable of closing the bags especially the large bag. They can highlight the features of handles in their promotional theme. They should highlight the strength of bags in their promotional theme. A good image should be printed on the bag if it does not impact the cost too much. Launch roll packaging in black color.
In Rio:
Roll is them.
important
to
They have perception strength with black color. They have perception of strength with blue color. They like such bags which have more capacity per unit of size.
Position rolls packaging there.
Position black color especially in large sizes. Position blue color especially in small sizes. Shape of the bag can be of circular shape because circular shape has more capacity per unit area. An efficient closing system would add value
a main factor
The ideal garbage bag: Attributes demanded in Sau palou in order of preference: 1. Efficient closing system (handle to close) 2. Resilience 3. Color/capacity Attributes demanded in Rio in order of preference: 1. Color 2. Resilience 3. Closing sytem Another could be welcome but prie must be low
to the product.
It is clear that an efficient closing system would have helped the housewife considerably.
Closing system is more important for them.
Color is more important for them. They can accept other than blue but at low price.
Packaging appearance: Box Packaging: It was a differentiator for apartment housewives in Sau Palou. It was a perception of expensiveness of the box for them who reject it. In Rio, Housewives did not accept the box packaging. Plastic: They liked it because of practicality, Plastic + box: When they were told that prices are same, they had tendency for box. Packaging elements: Blue package in 50L: Preferred by the housewives of apartments in both SP and RIO.
Box packaging can value to the product.
Box packaging was not suitable for women.
They have perception of expensiveness with the box Housewives liked the 50L bag in blue color.
The closing system should be effective.
The color should be attractive to them which blue. The price of bags in color other than blue should be less than that of blue one. Therefore, the Fecha facil needed to have a closing system, be resilient, opaque and not too clear
Launch the Fecha Facil with box packaging but should not be expensive.
Launch the Fecha Facil in plastic packaging.
Launch the product with box in the same price.
Target the housewives of apartment of both cities with 50L bags in blue color.
In houses of SP, they preferred to mix color in both packages.
They like combination of colors.
Presentation of the garbage bag: Dark bag=strong bag Light color bag=weak bag Handles= some like and some doesn’t Side stitching liked by apartments
They think that dark color bags have more strength and light color bags have less strength. Handles have added advantage. Side stitching is attracted to them. They liked 50L bags
House likes it but they claimed that they could not use it outside as 100L. They would use only of 50L.
Advantages of the perceived by housewives: Closing of the bag Price
Ensure that blue and black bags are available in the market. The color of the bags should be dark i.e. dark black and dark blue. Bags should have handles. Side stitching should be fine and pretty that women like them. Target the housewives of houses in Sau Palou with 50L bags in black color.
bag
Uses of the bags mentioned by focus groups: Storing of sheets Shoes Dirty clothes Towels Books Old clothes Problems in Purchase of garbage bags: Lack of package imaging. Disorder in shelf and in aisles. Size of bags is not displayed on shelfs. Blue bags are always standout in shelves in SP and Rio.
They liked the closing system of the bag in the same price of other bags.
Housewives think these bags have multiples uses for them
Housewives like image printing on garbage bags. Supermarkets do not give importance and space to garbage bags in their shelves. Supermarkets owners do not mention sizes on shelves. Blue bags are purchased
The closing system should be effective.
Fecha facil’s management should portray these multiples uses in their promotion mix.
An attractive image should be printed on Fecha Facil. Fecha Facil should provide shelves in supermarkets and manage the shelves continuously with coordination with supermarkets management.
more in SP and Rio. It means that large blue bags and small blue bags are liked in SP as well as in Rio
Fecha Fecil sizes should be mentioned on the shelves and displayed separately. Large blue bags in RIO and small blue bags in Sau Palou should be positioned.
Possible courses of actions: Possible course of action # 01(First mover advantage) As Ad-Lider is pioneer in this industry, they can take aggressive strategy to take first mover advantage. Product mix for Fecha Fecil:
Launch 20L,30L,40L,50L,100L bags in both black and blue colors in Sau Palou
Lunch 15L, 30L, 50L in both black and blue colors in Rio
Pricing mix: Set the Fecha Fecil price slight more than the price of other competitor products.
Promotion Mix:
Those women who are not price conciosu and do not want to compromise on the quality of the pructs can be focused in their advertisement.
Use direct selling to convince women at their door step or in supermarkets.
Sales promotion would be an advantage to attract house wives
Distribute merchandise during interviews in other stores
Install point of sale displays at different supermarkets.
Use billboards for advertisement.
Ditribution mix:
Make agreement in supermarkets to display and sell Fecha Fecil
The image of housewives can be printed on the Fecha Facil.
An attractive stitching style would add the value to the Fecha Fecil. Launch Fecha Fecil in both box and plastic packaging.
Provide shelves to supermarkets and reserve them for Fecha Fecil only
Possible course of action # 2 (Defensive Strategy) If Ad-Llider adopts complete defensive strategy, then the marketing mix would be as follows: Product mix:
Launch only black color large size bags in Sau Palou
Launch only blue color large size bags in Rio
Pricing mix:
Set prices little bit more than the price of the competitor products.
Promotion mix:
Target those women in advertisement who are price conscious..
Distribution Mix:
Place the Fecha Fecil on their existing distributors’ side and supermarkets. Possible course of action # 3 (Semi aggressive Semi defensive)
Product Mix: Large black color bags should be launched in Sau Palou. Small blue color bags should be launched in Sau Palou Large blue color bags should be launched in Rio. Small black color bags should be launched in Rio. Pricing mix:
Set price exactly at the price of the competitor products
Promotion mix:
Target those women in advertisement who are price conscious but concerned about quality too.
Distribution Mix:
Focus on canvas selling initially.
Evaluation of Research Methodology Research Methodology: Research methodology focuses on the process of developing information and knowledge, which provides application knowledge and further disciplinary understanding: It is concerned with how analytical processes are undertaken:
Developing models (based on theory, which is related to economic methodology)
Selecting an obtaining data
Evaluating implications of the hypothesis, and so on
Exploratory research is carried out when the problem is not defined clearly. Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumer, employees, management or competitors, and more formal approaches through in depth interviews, focus groups, projective methods, case studies on pilot studies. Qualitative research involves an in depth understanding of human behavior and the reasons that govern human behavior. In this research paper, management want to explore the consumer preferences, consumer habits, and perceived competitive advantages that would impact pricing, product size, and distribution decisions. The stratified sampling procedure is used in this research in which women has been taken as the entire population. The population is stratified into two strata: Housewives in houses (Strata 1) Housewives in apartments (strata 2) The sample information is as follows: Classes of population: A,B,C,D,E A & B= High class people with high income and purchasing power=19% of Brazilian Household=52% National consumption
D & E = Low class people with less income and low purchasing power=51% of households =20% of national consumption. C =Lower middle class= 12.6 million= 30 % of Brazilian household= 28 % of Brazil’s total consumption
Participants were selected from A & B classes. Profile of Housewives in houses in Sao Paulo: 28-40, married, with children, minimum of high school education. Some are university graduates and had professional careers. Profile of housewives in apartments in Sau Palau: 28-39, married, most with university graduate, most with professional career in clinical psychology, education, nutrition, and small business. They have comparable salary. People came from dispersed regions in both groups.
Profile of housewives in apartments in Rio de Janerio: 32-42, mainly single and single women, with or without children, with high school education. A minority were professional.
Analysis of the research
In this research, research problem is clearly stated and concise. The need of this research is significant because they want to see the consumer preferences, consumer habits, and perceived competitive advantages that would impact pricing, product size, and distribution decisions. Researcher did not state any hypotheses in this research. Technically, each hypothesis should be stated using: Null (Ho) and alternative hypothesis (H1). The null hypothesis is a hypothesis that the researcher attempts to disprove. It is usually a negative statement. Researcher did not mention any literature review of the previous study (research).
The researcher gave all the conceptual definitions of consumer preference, consumer habits, and perceived competitive advantages so that he would be to plan his marketing mix. All the conceptual definitions are consistent with the frame work.
He selected the best type of research i.e. exploratory research to determine the best research methodology.