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Executive Summary
Ad-Lider is currently a Brazilian market leader in the provision of garbage bags. However, its existing product line is unable to provide the desired long term growth and profit needed by the firm. As such, Ad-Lider needs to launch its innovative new line of drawstring equipped trash bags effectively, to capitalize on the new product being introduced into the market, and revitalize its overall product line, which has been largely eclipsed in quality by its rival, Dover Roll.

The main advantage to the new line is that it meets the criteria established by many focus groups in terms of product selection criteria. Such criteria includes strength, practicality, easy closing mechanism and attractiveness, among other considerations. Ad-Lider hopes that by launching the new line it can surpass the quality dimension provided by Dover Roll and take advantage of the favourable economic climate, that has seen rapid growth and increased spending power for Brazilians ranging from the lower-middle to upper class. Current products on the market all have weaknesses, either in terms of resiliency, easy closing mechanisms or privacy. Ad-Lider hopes that by trying to appease all these issues the company can take further control of the Brazilian market, and position its commercial division for long term growth and profitability.

While Ad-Lider is committed to launching the new product, questions such as how best to roll out the launch, which consumer segment to target, how to package, price and display the units will all determine the success of the new rollout. The company should target busy housewives in the upper classes of southeast Brazil. These consumers are harried, with many competing responsibilities, and little affection for housework. The new bag helps get these consumers back to the rest of their lives, by providing an easy, reliable mechanism for waste disposal. Ad-Lider should start the launch in the southeast region of the country, using existing distribution channels such as supermarkets, with a price just slightly above the market’s premium products to help convey the quality of the new bags. The Fecha Facil should launch undifferentiated save for size, where the line should contain 15, 30 & 50 litre options. The bag should be offered in green and packaged in boxes with the benefits of the new bags clearly shown, to help differentiate the bag from its competitors. Due to the lack of loyalty in consumers, the efficacy of word of mouth advertising and the frequency of purchase, Ad-Lider should also be very aggressive in displaying the products prominently in stores, offering coupons and samples and communicating the benefits of the new item via flyer ads with its partner stores. These steps will help ensure that new Fecha Facil helps Ad-Lider meets its goals.

The problem for Ad-Lider is how best to introduce the new product into the market, and which segment of consumer the company should target. These questions are extremely important, as the Brazilian market is stratified, and diverse in terms of product preferences and attitudes. Ad-Lider needs a sustainable way to maintain its market share, and surpass its closest rival, Dover Roll, in terms of becoming the preeminent garbage bag in the Brazilian market. The trash bag industry in Brazil is a lucrative market, and differentiation is difficult given the disposable nature of the products. Thus, the company needs to be extremely attentive to the details of the new product launch, and effectively follow through on the strategic decisions made. This entails targeting the right segments in terms of geography and demographics, branding the product the right way and selecting the appropriate price strategy and distribution channel. Situation Analysis

The garbage bag industry in Brazil accounts for the sale of about 1.3 billion bags, totaling revenues of approximately $120 million in 1997. Products come in a variety of sizes, packages and...
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