Case study for Ad-Lider Embalagens Essay
1.What information is needed to make judgments of whether or not to launch Climp Bay’s Easy Close trash bags? Internal information: the budget of the company, the assumed revenue of this new product, the target marketing. External and customer information: the economic situation, the potential volume of trash bag market, the awareness of the brand, customers’ preference, customers’ daily purchase behavior towards to trash bag, the possible acceptance of this new product, the competitors’ situation, the fierceness of the competition, the potential volume of trash bag market, the awareness of the brand.
2.Does Ad-Lider have a marketing orientation? Justify your reasoning. I don’t think Ad-Lider have a marketing orientation. Because Ad-Lider, as the reading referred, has three divisions, commercial, industrial and consumer products. And although its products focus on plastic bags and packaging, its majority of income comes from commercial division, which accounted for 52% of company income in 1998, the new product they want to launch belongs to its consumer division, which is not the strongest area they are in. That doesn’t make sense. And as to their consumer division, they don’t clarify which class they want to step in, they said Class C might have great opportunity, but they did group research among Class A and B in the developed area in Rio and San Paulo. So I think Ad-Lider doesn’t have clear marketing orientation. 3.Evaluate the methodology of focus group and purchase intercept interviews. Focus group:
1)They had clear objective towards the focus group research 2)They selected the people very carefully, based on certain demographic, psychographic, educational, age background. And they conducted 3 focus groups, which made the results more generalized in some certain extend. 3)They asked many questions and had in-depth discussions.
4)The questions they asked include both macro and micro ways which is very thoroughly. Cons:
1)The only chose Class A and B to do the focus group, but ignored the highly potential Class C. 2)The results of focus group cannot to generalizing from focus-group participants to the whole market because the sample size is not big enough and the sample is not drawn randomly. Purchase Intercept
1)It collected some valuable and meaning quantitative data to analyze the customer purchase habit and the trash bag market competition 2)It can show the market share of certain brands and it also collected periodic purchase data to show the frequency purchase behavior so that we can know the repetition purchase of each brand. 3)It also collected data in separate gender, which is very helpful to the marketing plan. Because different gender has different purchase habit. Cons:
1)The time they picked to conduct the focus group is kind of inappropriate, because they during the research period, their main competitor launch a two-week sale and at the final week of the research, the Limp-o-Lixo brand was on sale. The data collecting during the purchase intercept interviews was not typical enough because selling records and purchase behaviors were more easily affected by the on-going sale.
4.What can be learned from the research findings with respect to marketing the Climp Fecha Facil? 1.In different areas, they have different criteria to determine whether it is the suitable trash bag. So in order to market CFF, it is important to discern the area’s preference. 2.Stick to and emphasize the esay close feature in the Rio and emphasize the color feature in Rio. 3.Make brand name more visible
4.Use marketing tactics on male customers.
5.The price can be the same with its main competitors
6.Make the capacity of the bags in their package.
7.Concentrate the practicality and quality of the bag.
5.Does the research support the launch of the Climp Fecha Facil bag? Why or why not? Yes. Because from the focus group, we can see that there are still complaints about the existed products and the CFF bag can make up for it. And the members in focus group are curious and excited about the newly coming product. The new feature in CFF is attractive to the potential
customers. Also, the purchase intercept interviews show that the leading product in trash bag product is Limp-o-Lixo, which comes from the same manufacturing company, and that means CFF has a good foundation of brand awareness.