CASE STUDY 8
Frommy basic understanding of the article, I do not believe that Ad-Liderhas a comprehensive marketing orientation. This is evident from theway Ad-Lider has failed to tailor its product varieties to meet thespecific market requirements of its clients. From a close analysis ofthe article, most of the firm’s revenue are generated from itscommercial division (approximately 52% of the company’s revenue in1998 alone). Therefore, the decision to introduce a new productcalled Climp Bay’s Easy Close trash bags is not a very viable idea(ThunderbirdSchool of Global Management, 2009).This is because the new product to be launched is categorized in thecompany’s consumer division which is not the firm’s stoutestbusiness unit.
Thus,Ad-Lider’s resolution to introduce a new product in a relativelyweak division do not make any commercial or marketing sense.Moreover, the company has not clearly stated the particular Class inthe consumer division that they will exploit. Notably, while Class Cis identified to be highly profitable with numerous opportunities,Ad-Lider conducts group research in class A and B which are majorlyurbanized areas in Brazil’s cities of Rio and San Paulo(ThunderbirdSchool of Global Management, 2009).Based on these explanations, I believe Ad-Lider do not have anexplicit marketing orientation given that they have not clearlystated the particular class or market that they need to explore withthis new product.
Forthe focus group research, Ad-Lider had a clear objective given theircareful selection of people based demographic, psychographic,educational, and age background characteristic. Various focus groupswere reviewed in this research resulting in more generalizedoutcomes. For example, housewives from the A and B social classeswere chosen for the focus group research (ThunderbirdSchool of Global Management, 2009).The primary assumption was that the selected people contributed to52% of national consumption and lived in Sao Paulo and Rio.
Thequestions asked were precise and the responses were exhaustive. Themain objective was to derive a comprehensive picture of consumptiontrends among the targeted population. For Ad-Lider to successfullyattain this goal, they had to analyze the specific and generalpractices associated with the product to be launched. However, thefocus group failed to explore Class C which is considered to be ofextremely high potential. As such, the result gathered from the focusgroup research cannot be generalized given that it is notrepresentative enough. Similarly, the sample size derived fromClasses A and B are also not large enough.
Theprincipal objective of the company’s use of purchase interceptinterviews was to swiftly establish the profile of the customers froma random population, ascertain the frequency of product purchase andthe market share of major brands. This method of data collection alsoenabled easy gathering of valuable information based on theregularity of purchase behavior of related products. This enabled thecompany to affirm the frequency of repeat purchases on various brandsalready in the market (ThunderbirdSchool of Global Management, 2009).
Thecompany also aimed at establishing the primary motivation forpurchase and to ascertain the new product’s market performance whencompared to related product produced by competitors. The purchaseintercept interviews also enabled the firm to collect data andinformation from different genders making it possible to determinepurchase habits.
Differentlessons can be derived from the research findings in the marketing ofClimp Fecha Facil. For instance, it can be comprehended that that tomarket the product as the best garbage bag in the market, the companyshould stress on the resilience and the “easy to close”characteristics of the product. Similarly, the company shouldemphasize on the color features of the products (ThunderbirdSchool of Global Management, 2009).Furthermore, based on the different reactions gathered from theresearch (Appendix 4), Ad-Lider should establish both box and plasticpackaging materials. Markedly, most of the people who participated inthe research favored monthly purchases of the garbage bags.
Anotherimportant lesson is the critical need to make the company’s brandimage and name to be more discernible in the market. From Appendix 4,male customers comprised of approximately 28.86% of the totalpurchases. Therefore, Ad-Lider should use various marketingstrategies to attract and retain more male clients to its brands. Tosuccessfully penetrate this market, Ad-Lider should also introducedoor-to-door sales to the male consumption group. The results of theresearch show that some male customers were more loyal to theirdoor-to-door product suppliers and Ad-Lider should explore this area(ThunderbirdSchool of Global Management, 2009).
Fromthe responses stipulated in Appendix 4, Ad-Lider should put moreemphasis on the practicality and quality of the garbage bags.Similarly, Ad-Lider should establish premium and reasonable prices toits new product in comparison to the prices charged by its primarymarket competitors. From the market research findings, it is clearthat most clients are willing to pay more for Ad-Lider’s newproduct compared to Dover’s (ThunderbirdSchool of Global Management, 2009).The company should further justify its pricing mechanism based on theperceived quality of its product. Such qualities include thedistinctive color, durability, practicality and the “easy to close”characteristics.
Besides,based on the outcome from “sales by the capacity of the bag,”Ad-Lider should launch a new garbage bag sized 30, 50 and 100L. Byproducing products of different sizes, Ad-Lider will promote itsbrand as both suitable for household and larger commercial purposes.The company can also market its new product based on strength as canbe viewed from the results in Appendix 4.
Groundedon my analytical compression of this research, and based on theresearch outcomes, this research supports the launch of the ClimpFecha Facil Bag. The reasons why I believe the research support thelaunch of the new product is subsequently stipulated in thisdocument. First, the results from the focus group, indicates thatmajority of the customers still have serious issues with othercompanies’ products. Specifically, the results show that theconsumers are not convinced with the performance of the relatedproducts already existing in the market. Thus, the introduction ofClimp Fecha Facil Bag can help address their various concerns andunresolved issues (ThunderbirdSchool of Global Management, 2009).
Correspondingly,the focus group results show that most people are very excited aboutthe new product and are willing and ready to accept it. Most of thecustomers hopes that the new product will finally address theirrespective concerns. Indeed, given the stipulated features, this newproduct will adequately address some concerns given that it isrelatively easy to close and practical. The company’s significantmarket share will also help in increasing market awareness of the newproduct (ThunderbirdSchool of Global Management, 2009).Moreover, from Appendix four, 88.17% of the respondents had a “verygood” acceptance of the new garbage bag while 55.35% ascertainedthat Ad-Lider had a significant market share. The purchase interceptinterviews also established that the company’s large market sharewas a necessary footing that Ad-Lider could use to introduce the newproduct.
ThunderbirdSchool of Global Management (2009) Ad-LiderEmbalagens, SA: Marketing Research for Drawstring Trash Bags inBrazil.