Detergent Powder

In order to gain market shares through the low-income segment of the Brazilian market, Unilever should launch a new Detergent Powder brand at an affordable price, which could replace in the long-run Campeiro, its cheapest brand. However this strategy is not without any risks, since it can lead to the cannibalization of Minerva.

One frequently asked question in business today that is least answered is, as stated by David Chaudron, PhD (2003), “What can we do to make our business flourish, survive and grow?” With the rapid changes in technology and the rise in the globalization of markets, we must have a game plan in place for adjusting to these changes. It has become increasingly difficult to predict what is going to happen, and there are thousands of obstacles and opportunities along the way. To add to the confusion, there are thousands of products, solutions and methods for dealing with these changes. With many brands, sizes and varieties it is very difficult to choose what is best for your organization. Add to that,

The Tide detergent was created in 1943 with the combination of synthetic surfactants and “builders”. The builders helped the synthetic surfactants penetrate the clothes more deeply to attack greasy, difficult stains. Tide was introduced to test markets in October 1946 as the world’s first heavy-duty detergents. Tide detergents was improved 22 times during its first 21 years on the market, and Procter & Gamble’s still strives for perfection.

Most markets are highly competitive, even if there are only a few organizations offering the product – the competition is for both initial and repeat sales. And of course, all organizations want their “slice of the pie”. With new adventures, however, come large risks. A successful company knows beforehand any issues that might arise so as to best plan how to deal with

The biggest impediment is that the Clorox enters an already existing market and the dominant market leader, PUR, has well developed its “PUR Ultimate” system. Moreover Procter & Gamble are about to take control over PUR. It is also likely that the sale of

The grocery and supermarket industry is a highly competitive and congested industry. In the face of serious obstacles, Trader Joe’s has managed to separate itself from its closest competitors within the industry. This case study aims to explain how Trader Joes has created its competitive advantage as well to examine the company’s future prospects. We will do this through analysis of four key factors related to the success of the company; Trader Joe’s external environment, the generic strategies used by TJ’s and its competitors, sources of the company’s competitive advantages, and TJ’s strategies going forward.

Clorox could adopt a mix of a cost effective and differentiation strategy for its ecological products. Cost cutting could be in the form of decreasing the quantity per unit or consolidating the current product line. Additionally, the management mentioned internationalization as one of the targets of the centennial strategy. The company can look to penetrate the developing economies with their established primary brands such as Pine-sol, Formula 409 as these products have reached maturity in the US. Their low prices and effectiveness can help the company’s global aspirations along with supporting the long-term strategy by keeping the sales and revenues consistent.

However, this approach is limited. Due to globalization, lowering cost of production and availability of information, the competition is more fierce some than ever in most industries, putting more pressure on companies and shrinking their profit margins. In this competition race, products and services

Dynamic Industry: The technology industry requires closely monitoring consumers' trend to maintain a low gap between the point of demand and the point of supply.

A company needs to create a series of programs to differentiate their product from those from its competitors and to appropriately price the product to achieve the maximum demand, in order to set up the dynamics of its competitive strategy (David, 2007). The competitive strategy of a company is also expected to offer better products or services to its customers, at a reasonable cost. Due to the mass influence of the external environmental on the customers’ preference, it is vital for the company to develop an available competitive strategy to be able to solve a series of problems, and ultimately to improve the company’s performance. Those problems include: how to differentiate its products or service from competitors, how to create market segments to maximize demands, and how to offer a wider range of products or services to better meet the customers’ needs at more acceptable costs (David, 2007).

The main issue of the P&G Korea case is centered around the question of market share. P&G and Unilever are the two major market shareholders in the Korean detergent industry holding 80-85% of the total market share. The remaining 15-20% of the market is held by low-priced local Korean brands. There are no new markets either company can tap for further market share since most Korean households already use laundry detergent, making the market saturated. Other than peripheral chemical changes claimed to be “improvements”, there are no major innovations to be explored for product development or diversification. Per Ansoff’s strategic opportunities matrix, P&G and Unilever are both focused on Market Penetration,

By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,

Unilever is assessing whether to enter the low-income NE market. Our analysis shows that there is a profitable opportunity to offer detergent powder to low-income customers living in Northeast Brazil and capture market share in a high-margin, high-growth market. We recommend that the firm keeps the existing brands but deploy a horizontal extension of the Campeiro brand - adding better scent / softness and utilizing specialty distribution network, thereby marginalizing Invicto, an inferior but better-known competitor.

Now looking at the three marketplaces that we have chosen to explore for our product, we conclude that in terms of consumer behavior, buying habits, values and concerns, these three marketplaces are totally different from each other. It is very evident that each region requires a separate pricing strategy and so that is what we are going to follow in this global plan of our company.

In 1988 and 1989 , its market shares were 33% of whole mouth-wash market while it slightly came down to 32.3% in 1990. It is good that the company didn't let its market shares decline despite introduction of new products. But it is also noticeable that the company did not make any progress in its market shares.