MKTG 379 Drawstring Bags in Brazil summary

Ad-Lider Embalagans, SA: Drawstring Bags in Brazil

Introduction
Ad-Liner Packaging Inc. two executives Lazlo Sved and Emilio Figer needed to review the market research data to determine the best strategy to launching their product line. The product line was focused on creating easy to use trash bags that were durable and cost efficient. They considered factors such as consumer preferences, consumer habits, and perceived competitive advantages that would impact pricing, product size, and distribution decisions. The purpose before the launch was to “get it right” with respect to targeting and positioning, and creating value for the consumer (Ad-lider Embalagens, SA: Marketing Research for Drawstring Trash Bags in Brazil, Oct. 18th, 2009).

Case Issues Utilizing the market research will require extensive effort before making any decisions to launch the product. To narrow down the need of their consumers, focus groups and individual interviews were conducted to determine the best methods to creating the closest product that will cater to their future consumers. The Brazilian Market Research Association, ABIPEME, considered a variety of information to gather: population, demographics, income-levels, and social classes. The objective is determining the segment of market to cater to. For example, those with the highest income levels will have greater purchase power. However, Sved and Figer wanted to appeal the market segment where those with lower incomes can afford their product. The idea is take advantage of every market segment and set the proper price level, quantity, and where to distribute. The diagram (Appendix 1) below illustrates the populace per region:

The following categories were majority percentage from data collected:
Women purchase trash bags more than men
Garbage bags are a popular purchase item in rolls
Limp-o-Lixo (super-economy and multi-use) was purchased more for brand share
Climp Fecha Facil were the dominant in garbage bags with handles in rolls
50 liters was the most popular amongst Sales by Capacity of Bag
The periodic purchase per item was on a monthly basis

Pros