background of drawstring trashbags in brazil

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A brief outline of the company [***Ad-Lider Emb alagens, SA was founded in 1970, headqu artered in the town of Tres Rios, Rio de Janeiro, which is one of Brazil’s largest manufacturers of plastic bags and p ackaging***]  A commercial office is located in the city of Rio de Jan eiro. The company controls Ad-lider Transportation, a trucking firm that distributes its products. The firm sells direct to large accounts and uses 43 specialized distributors to cover other accounts throughout Brazil. Total sales in 1998 were US$21 million and were forecasted to be in the US$25  27 million range for 2001. The commercial division, which accounted for 52% of company income in 1998, had two primary lines, Limp-OLixo, the primary product, was a line of household garbage bags, sold in rolls, with individual bag capacities from 15 to 100 liters.   Ad-Lider, one of the Brazil’s largest manufacturers of plastic bags and packaging, wanted to launch a new drawstring trash bag product line named Climp Fecha Facil  . The company had already invested one million dollars f or the new production machines. So, the two senior executives of the company were anxious about the successful launch of the product. For this reason they conducted a test marketing research where they were specifically looking for preferences, habits of the consumer which would effect on the pricing, product size, and distribution decisions of the product. Lazlo Sved and Emilio Figer were conducted this market research in July 2001. They also wanted to know that their investing decision would be right in targeting, positioning and creating value of the product. As their current product mix would not bring satisfactory profits in the long-term, they were hoping that new product line of different, modern and favorable cost of the product would help them to capture market share and could make profit for the company.  Sales of Ad-Lider [***The firm sells direct to larg e accounts and uses 43 specialized distributors to cover other accounts throughout Brazil***] Sales by region vary greatly: the Southeast accounts for 50% of sales while the North and Northeast combined account for an additional 25%; the Central- West and South account for 12% and 10% respectively.

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A brief outline of the company

[ ***Ad-Lider Emb alagens, SA w as foun ded in 1970, headqu artered in th etown of Tres Rios, Rio de Janeiro, which is one of Brazil’s largestmanufacturers of plast ic bags and p ackaging***]

 A commercial office is located in the city of Rio de Janeiro. The companycontrols Ad-lider Transportation, a trucking firm that distributes its products.The firm sells direct to largeaccounts and uses 43 specializeddistributors to cover otheraccounts throughout Brazil. Totalsales in 1998 were US$21

million and were forecasted to bein the US$25 –27 million rangefor 2001. The commercial division,which accounted for 52% ofcompany income in 1998, had two primary lines, Limp-OLixo, the primaryproduct, was a line of household garbage bags, sold in rolls, with individualbag capacities from 15 to 100 liters. 

 Ad-Lider, one of the Brazil’s largest manufacturers of plastic bags andpackaging, wanted to launch a new drawstring trash bag product line namedClimp Fecha Faci l 

.The company had already invested one million dollars for

the new production machines. So, the two senior executives of the companywere anxious about the successful launch of the product. For this reason theyconducted a test marketing research where they were specifically looking forpreferences, habits of the consumer which would effect on the pricing, productsize, and distribution decisions of the product. Lazlo Sved and Emilio Figerwere conducted this market research in July 2001. They also wanted to knowthat their investing decision would be right in targeting, positioning andcreating value of the product. As their current product mix would not bringsatisfactory profits in the long-term, they were hoping that new product line of

different, modern and favorable cost of the product would help them tocapture market share and could make profit for the company. 

Sales of Ad-Lider

[ ***The f irm sel ls direct to larg e accoun ts and uses 43 special ized

dis t r ibutors to cover other accou nts throug hout Brazi l ** *]

Sales by region vary greatly: the Southeast accounts for 50% of sales whilethe North and Northeast combined account for an additional 25%; the Central-

West and South account for 12% and 10% respectively.

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The product line of Ad-Lider

The company had three div is ions:

Commercial products,

Industrial products,

Consumer products.

The commercial division

It accounted for 52% ofcompany income in 1998, hadtwo primary lines, AD- ROLLand AD-SHOP. The AD-ROLLline consisted of plastic bag andthe AD-SHOP line consisted of bags purchased by retailers used at fashionboutiques and supermarkets for shoppers to carry goods home.

The consumer division

The consumer division sold three products for the consumer and commercialfirms. Their primary product was a line of household garbage bags, sold inrolls. Second was FREEZER and the third was reinforced bags, which weresold to commercial firms such as hospitals, restaurants, and buildingmaintenance companies.

The industrial division

The third division had three product lines: an automated packaging line formanufacturers, packaging materials and cardboard boxes.

From the 1998 perspective sales of the commercial division accounted for52%. It had two primary lines named AD-ROLL, which consisted of plasticbags for produce and meat departments, and AD-SHOP consisted ofshopper’s bags purchased by retailers. On the other hand, consumer divisionsold three products for the consumer and commercial firms, which were Limp-O-Lixo, Freezer and Sacos Reforcados Ad-Lider. The primary and mostpopular product Limp-O-Lixo which consisted 48.12% of total market shareused as household garbage bags from 15 to 100 liters where as FREEZER

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was sold to consumers for storing food in freezers.

Moreover, SACOS REFORCADOS AD-LIDER, which was reinforced bags,was sold to commercial firms such as hospitals, restaurants, and buildingmaintenance companies. The industrial division had three product lines.Those were automated packaging line for manufacturers that packagedproducts to sell consumers; packaging materials to shrink-wrap pallets andbundle products together to eliminate the necessity of cardboard boxes.These vast three-product line showed diversified and customized vision of thecompany.

The Country and its economic condition

[*** Brazil is one the world’s largest countries, covering an area of 8.5mil l ion squ are ki lom eters. The coun try is div ided into 24 states, two

territo ries, and a federal dis trict***]

 After a long period of highinflation and economicstagnation, during the mid

1990s’ the successfulBrazilian economicstabilization plan, known asPlano Real, restored thepurchasing power of thelow-income segment of thepopulation, which resultedfantastic sales growth. TheBrazilian Market Research Association, ABIPEME,developed a social class classification that was widely adopted by local

researchers, marketers, and advertising agencies. The scheme combinedincome, education, and material possessions to define five social classes— A,B, C, D, and E. Classes A and B members referred as the higher class withthe best of everything, classes D and E lacked referred as the lower class andclass C consumers have been described as typical workers, the lower middleclass, and it comprised of almost 12.6 million Brazilian households. It wasseen that Classes A and B made up of only19% of Brazilian households andaccounted for 52% of the national consumption. The lower classes D and Emade up 51% of the households but accounted for only 20% of the nationalconsumption.

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The Demand for household plastic bag

[ *** In 1997, the Brazi l ian g arbage bag market w as est imated to bearoun d 1.3 bi l l ion p ieces and w as valued at US$120 mil l ion *** ]

The product came in blue and black with capacity/sizes of 15, 20, 30, 50,60and 100 liters. The bags were packaged as rolls or folded. The rolled bagscame in a plastic bag, and the folded bags were packaged either in plastic orcardboard boxes. Smaller bags for the kitchen and bathrooms were alsoavailable.

The national brands of trash bags

[ ***There were three nat ional b rands, which cou ld be fou nd in al l the

major su permarket chains throu gho ut Brazi l***]

The three major national brands were sold directly to thelargest supermarket chains. Wholesalers and distributorswere used to distribute the product to smallersupermarkets and other small retailers such as meatmarkets and fruit stands. With regard to trash bags, thelarge supermarket chains tended to work with one leaderbrand and no more than two other brands. Fort-Roll wasthe strongest competitor to Ad-lider. It was themanufacturer of Dover Roll, the market leader and asymbol of quality to many consumers. According to theFort-Roll Web site, Dover Roll was targeted to Class Aand B consumers. The company also had productstargeted to Class C Consumers. 

Competitors of Ad-Liders

[ ***There were two n at ional brands except Ad -Lider who se were the

main compet i tors for the company. But For t -Rol l was the st rongest

com pet i tor among them, which was the manufacturer of Dover Rol l*** ]

 According to some consumers it was also counted as the market leader and asymbol of quality. As Dover Roll targeted not only Class A and B but alsoClass C consumers, it was threat for Ad-Lider who only targeted class A andB. Other than these two national brands, there were regional brands andsupermarket’s own brands, which were also accounted as competitors for Ad-Lider.

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the research would show the same purchasing level for both groups withdiversified customers.

Moreover the participants of the focus group living in the apartments in Rio deJaneiro were mainly single and divorced women whose ages were within 32to 42. The qualifications of these group was having children or not and had ahigh school graduation similar to the housewives of Sao Paulo who living inthe houses. In here some minority women were traced as professionalwomen. It reflects that their family income was comparable to the Sao Paulogroups. The most difference in lifestyle of the two states were the participantsof Rio were more active than Sao Paulo as they were going to gymnasium,

sports participants or walkers where other group did not.

Test market research of Climp Fecha Facil

[ ***Before the launc h of Fecha Faci l the company w anted to cond uct

second market research d ur ing May – June of 2001. Thoug h the prod ucthad al ready placed in Sendas Supermarket in Rio dur ing f rom Apr i l

2001, they ini t iated this addit ion al consumer test market research to

determine the prof i le of garbage bag purch aser by gender, frequency o f

garbage bag pu rchases by h ous eholds , the relat ive market shares ofmajor brand s***]  

It also determined the primary motivators or concerns with the purchase ofgarbage bags and how well the new product competed with the Dover Rollwith-a-handle bag. On the other hand, Purchase InterceptInterviews were conducted on seven consecutiveSaturdays, April –June 1999. Moreover, all interviews tookplace in 29 Sendas Supermarkets. Within total 528interviews 495 were considered valid because they did not

fulfill the other criterion. Besides that, Dover Roll was onsale for two weeks when the interviews were taken. Evenmore, the Limp-o-Lixo brand was on sale in final weeks ofconducting research. This indicates that before enteringthe market Fecha Facil faced the competition not only withother national brands but also with its existing brandproducts.

Interview guideline for market research of Climp Fecha Facil

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[ ***Ad-Lider had cond ucted market research for the successfu l launc h of

Cl imp Fecha Faci l . For this reason they fol low ed a specif ic guidel in e so

that they can acquire most of the information regarding the consumer’spreferences and the market demand of the pro duc ts*** ]

 At first they tried to warm up the interview session to the consumers so thatthey could have a great introduction. In here they mainly focused on how theywould conduct the research and what type of product development theywanted to came in the market. Besides this the interviewer also asked aboutthe name, age, profession, civil status, kids etc of the interviewee to attractthe attention of interviewee. After that, interviewer asked about the habits ofinterviewee. Here they mainly focused on day to activities of their family, whatthey wanted to do and not, daily domestic activities they needed to do. They

also asked about the dependence of maids in household chores, and whetherthe participants were enjoying the work or not and many others questionrelated to domestic chores. Then interviewer moved the topic to cleaningmaterials to the participants whether they were user of this product or not. After giving the introduction of the product interviewer asked interviewee whowould take decision about purchasing, what type of products attracted themmost, how much time they bought it and many other related questions. Theyalso asked about the consumer’s behavior regarding storing and disposal ofgarbage’s, what will make them happy and what was their expected productcriterion from the manufacturer, etc. The interviewer not only focused onindividual product but also asked consumer about the competition of the

product, what brand they preferred most, what was their ideal package interms of their perception. They also took information about what were thespecial changes and additional requirements consumers were looking for in anew product if it was entered into the market like color, size, quality andmaximum price they wanted to pay for the product and so on. The intervieweralso took the feedback and reaction of the consumers so that the researchwould be successful and would imply in real situation.

Focus Group for the trash bag in Brazil

[ *** In earl ier period of Nov ember 24 and 25 a qual i tat ive research h ad

done by Ad- Lider to evaluate the acceptance of new garbage bag “FechaFacil” and to know abo ut packagin g preferences***]

They conducted this market research on Rio de Janeiroand Sao Paulo. In here they took two focus groups, onewas residents of apartments and another was residents ofhouses. Most cases it was seen that the purchaser ofgarbage bags were female. According to research almost74.14% female took decision or purchase the products. So,the company targeted only housewives for their research.Now, the difference of perception and purchasing decision

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of housewives were analyzes both in Rio de Janeiro and Sao Paulo. 

Similarities of regular activities of housewives

[ ***By the interv iew it was fo und that there were simi lar i t ies amo ng th e

housewives***]

Most of them were hurry, quite involve in household chores and administrationof houses like the schooling of children, shopping. After that some of themwere professionally involved in other activities. As Rio people were moreactive than Sao Paulo, it was also reflected in women participation inprofessional jobs at this state.

Dependents on Maid

[ ***For the dom est ic work , most o f the housewives took help f rom

permanent maid or f rom temporary . If hous ewives did not take help of

maid, had to per form som e of dai ly dut ies l ike cook ing , c leaning and

laundr y by own***]

They actually liked to cook but disliked cleaning the whole houses and for thisreason they tried to avoid it. Besides this as the housewives of Rio was moreoutgoing, loved to take care of own physics, more dependent on maids. Onthe other hand, housewives of Sao Paulo were more demanding from theirmaids. But it was not possible for maid giving exactly the same services whathousewives wanted. As a result, household works were not separated fromthe life of housewives.

Ultimate purchasers of trash bag

[ ***Housewives m ade major i ty o f the t ime mo nthly sh opping for c leaning

produ cts . It was vary rare when a husband was involv ing in th is

process. But in yo unger cou ples in Sao Paulo w ere involved in

supermarket shopping. But in Rio, husbands o r boyf r iends was more

involved in d ec is ion making o f purchas ing p roducts*** ]

Some men did involve in purchasing and making decision. But the ultimate

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purchasers of cleaning products were female though their husbands,boyfriend loved supermarkets. Moreover, it was seen that some women were

loyal to one brand while purchasing. After analyzing it was found that womenwere more rational where man were more curious about trying a new productregardless of price.

Factors influenced in purchasing decision

[ ***The most im portant factor in purchas ing c leaning p roduc ts was

purchase dec is ion. And i t was m ost ly found in ho uses of Sao Paulo*** ]

 Advertisement was one of the influencing factors of purchasing decision. Pricewas the practical and quality is the fundamental attributes for makingpurchase decision. Some of the housewives understood quality as it wasworking or not. And they preferred that product which is good and efficient.Last of all, the promises of products to work were referred as quality. So, if anew product may fulfill these requirements at a time according to housewivesthey would buy the product.

Color preferences of consumers

[ *** It was foun d th at color p references varied from states to states as

wel l as residents in apartm ents to h ous es***]

In Sao Paulo, there was a predominant usage of the black color as itperceived more durable than the blue bags. In Rio de Janeiro, the black colorwas not available in the domestic market. And therefore the blue color wasassociated with garbage bags. There was a perception that black bags moreused for large quantity. Similarly, the residents of houses like more black one.

Their perception for black bag was quality. Some residents also said thatblack bags were cheaper but the quality was better. Somewhere blue bag wasused for storing. However black bag was more preferable than blue oneregardless of residents live in houses or apartments.

Size preferences of consumers

[ ***Size of the trash bag was ano ther important factor for pu rchasin g

decision***]

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In regards to size in Sao Paulo residents of apartments used 30 L and 50 Lbags more for bottles and kitchen garbage though there were 20 L, 30 L, 40 L,

50 L, 60 L, and 100 L bags available. But in Rio residents were more used 15L, 30 L and 50 L bags. In Rio, residents of houses were the highest user ofblack bags capacity of 60 L. In addition, 20 L and 30 L blue bags were usedas the supermarket bags. but for all sectors it was found that everyonepreferred 100 L black Bags for storing of huge garbage.

Perception difference in brands

[ *** It was surp r is ing th at there was no brand r ecogn it ion amo ng the

residents of apartments of Sao Paulo. Bu t among the residents of Riobrand recogn it ion h ad been found a l i t tle bit***]

They somewhat easily named Dover Roll which had little strap and found in30 L size. Besides the residents of apartments, housewives living in housesrecognized the name of trash bags. Those were Pro-Lixo, So-Lixo, Pra-casa,Nips and So-Limpo. From the above research it was not clear which brandwas more preferable to the consumers.

Preference of garbage use among consumers

[ ***Besides the size, colo r i t was imp ortant that in what type of work

con sum ers wanted to use garbage bag. In bo th ci t ies, sup ermarket

p las t ic bags were used for smal l garbage such as bathroom and k i tchen

garbage. But the use supermarket plast ic bag was hig her in Sao Paulo

than in Rio***]

In Rio, the usage of the supermarket plastic bag was more closely associatedwith its ease of closing due to its handles. Some participants said that thepurpose of using trash bag was to throw away the garbage from the housesand for that they prefer handle in trash bag. Residents of houses usedgarbage bag in the house like in kitchen, bathroom.

Quality preference of consumers

[ ***Qual i ty w as the most im portant factor for pu rchas ing p roducts .

Whether some person gave more impo rtance on i t or s ome did n ot . The

imp ortance of a strong garbage bag w as clear in Sao Paulo as in Rio***]

Consumers’ actually preferred strong, thicker garbage bag because it

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provides high hygienic quality and closing facility in a roll. For this reasonsome used Dover Roll as they offered these services to its customers.

Conversely, consumers liked handling as a closing system in a roll but theyfaced lots of problem for that. Sometimes it was found that the quality of blackbags in supermarkets was not good enough. And for that reason they werelooking for warehouse bags as they offer better quality. Moreover, consumersunderstood better quality means of thickness of the product.

Problems faced regarding storage of garbage[ ***From most of the trash bag con sum ers, i t was found that they faced

problems regarding q ual i ty and c los ing system. Some said that i t was

hor r ible to close when the bag was in fu l l***]

In addition, if the bag had handle teeing the bag with stronger knots wasdifficult because the handle was then broken down. Furthermore, it was foundthat detaching handle in hurry time was difficult because it then didn’t cut butripped. Without handle carrying 100 L bag created difficulties for theconsumers. For that reason they had to use blue color bag. Because of the

poor and weak quality sometimes consumers faced problem like it rippedeasily.

Garbage bags in supermarkets

[ ***Going to shop ping h ousewives faced lots of p roblem regarding

pur chase of trash bag. There was lack of packagin g. Moreover, diso rder

of shelves and ais les of the su permarkets were made confus ion among

the avai labi l i ty of the p rod ucts***]

Trash bags were all hidden, completely disorganized and mixed most of thetime with other products. Even more, they were placed on the bottom shelfwith the cleaning products. Most of the time blue bags were out of the market.For this reason consumers could not recognize the brand. There was no sizemeasurement facility at the supermarket while purchasing trash bag.

Recognition of brands

[ ***There were numerou s brand s of bags in the markets bu t not every

one runn ing w el l and recogn ized by co nsumers. In Rio, the housewives

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were mo re in tune purch asing garbage bag than Sao Paulo. For this

reason i t was di f f icu l t to f ind b rand loyal ty among the consumers*** ]

 After asking some consumers could recognize some of the brand like DoverRoll, Sanito and Lixito. Though these bags were similar in natures and color ofblue, were differing in texture, resilience. From the consumer perspectiveLixito was associated with fragile, Dover Roll with roll, and Sanito tocleanliness. The other brands were recognized by the housewives of SaoPaulo were Saco Limpo, Pro Limpo, and Pro Lixo and in Rio were Modeplast,So Lixo, Pralixo, and Vulcao. But between the brands, consumers could notclearly define the similarities, differences, or even the preferences. Becauseof poor packaging and brand on products, consumers could not recognize thebrand as well. So, actually packaging system affected the recognition of brand

in regarding purchase.

Resilience and important preferences

[ ***Resi l ience of trash bags impl ied the tough ness and f lexibi l i ty of

stor in g garbage. For this reasons it was a fundamental factor in

choo s ing garbage bags. And i t had a percept ion that a good qu al ity and

stron g bag would have weight*** ]

This attribute was valued more by the people of Rio de Janeiro, since in SaoPaulo. They found that black bag implied more strength. Though resiliencewas important for the housewives of houses, the norm was in using blue one.If they decided to buy, the purchaser had determined it already. So, theimportant issue for this focus bag was the choice of purchasing trash bag forthe type of usage.

Capacity was the first issue for purchasing products from the point of view ofsome consumers. And resilience and price also affected the purchase

decision also. Though closing aspect was not mentioned as a main aspect ofpurchasing but it affected the purchasing decision also. Color andtransparency had also affected in purchasing decision. Because they bothwere related with privacy issue and it was a important issue. Nobody wantedshow what type of garbage was being thrown outside.

Expected requirements from Ideal garbage bag

[ ***From the con sum ers poin t of view basical ly the ideal garbage bag

needed to had th e qual i f icat ion of easy closing system , resi l ience with a

dif ferent color from the others exist ing p rodu cts*** ]

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In Sao Paulo, an efficient closing system was expected from both houses andapartments residents. Because it was very difficult to close strongly a 100L

black garbage bag. Resilience followed closely in importance after the closingfeature, which was followed by the color and capacity of the bag. In Rio, colorand resilience came before the closing attribute. However, ideal bad neededto have in different color so that it could easily identify from the others andgave above benefits within a low price. Overall, the ideal bag needed to havea closing system, be resilient, opaque and not too clear.

Reaction of showing the dreamed Ideal garbage bag

[ ***Af ter pul led ou t the simi lar of consumers expected bags th e react ion

of them w as pret ty muc h sim i lar. They were exci ted to see that kind of

pro duc t . Because it ful f i l led almo st the ent ire cr i ter ion w hat they

expected from the trash bag  – having th e faci l i ty of easy closin g,carry ing the g arbage***]

Furthermore ideal bag fulfilled the expected texture, size, and quantity of bagsinside packaging. And the package had information table by which consumers

easily could make their choices. From every aspect it fulfilled the expectationof both states consumers. But some consumers said that it was too big forusing outside and too big for using inside. If the company would come up withdifferent sizes of the ideal bag, consumers would be more satisfied. Becauseit fulfilled the closing preference of Sao Paulo and brand name of Climp forthe residents of Rio.

Preference on plastic and box packaging

[ ***As the company w anted to come up w i th two packaging sys tem  – plast ic bag and box, they showed i t to the focus gro ups. The plast ic

packaging was shown to the house group of Sao Paulo and apar tment

group of Rio. And b ox packaging was show n only to the apar tment

gro up in Sao Paulo***]

The residents of Sao Paulo both consumers liked the box packaging becauseit is more practical, pretty, different and easy to take out the bags from thepacket where it was difficult to pull out from the plastic packaging system.Furthermore, some residents preferred plastic system because it associatedwith low cost where box seemed more expensive. But while it was said that

both had same price, most of them preferred to buy box though it was forsmall packaging. In Rio the reaction was just negative. The consumers

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preferred plastic packaging system because box was associated with moreexpensive, could wrinkle and got wet and too chic. They did not like to shift

their preferences from roll to another one. So, the reaction for the participantswere varies from state to state. There was no specific way out of the situationif they considered this represented the whole market.

Preferences in packaging elements

[ ***Af ter disp laying green and blu e color bag w ith dif ferent design

elements to the interv iewees, react ion h ad varies in focu s gro ups . Here

con sum ers examined the preferences of colo r, design , at t ract iveness,

expos ure and clearness***]

The residents of apartments in both cities responded to the changes. Somepreferred blue, some preferred green. Surprisingly there was a tendency tomix up the boxes with colors. But it appeared that blue package was moreattractive and some participants gave suggestion about it also. But housegroups liked to mix both packages in antagonist manner like they wanted bluebag with green design, green with blue design. But overall they liked thechanges.

Evaluation method of Climp Fecha Facil

[ ***Af ter analyzing the packages, garbage bags with the Fecha Faci l

sys tem; i t was distr ibuted to the con sum ers to evaluate the expectat ion.

Thoug h it had been wel l descr ibed in the packages, al l consumers l iked

to test the handles***]

 As the bags were empty, participants could not realize how much would ithold and how the handle would work. After showing the process participantsagreed the efficiency. Again, the color was very much related to resilience.When they were shown darker bags with handles, they associated them witha better texture, and when they tried the clear bag, the first reaction was weakbag. Some suggested to product with side stitching. However the house groupof Sao Paulo reacted well to the new product as practical, hygienic but theymentioned size of 50 L as a problem.

Resilience of Climp Fecha Facil

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[ ***Some interv iewee argued that resi l ience wou ld be mo st in thick er

one’s. From the presentation and packaging system i t s eemed that bag

wou ld pro v ide bet ter qu al ity and res il ient . Some argued about color wi thqual i ty . They preferred darker o ne for usage***]

If the company could provide the product, they would switch of from the doorto door supplier. Another thing would be important for the purchasing of bagwas price, size and capacity. If all of the above qualifications were fulfilled andprice was affordable for the consumers they would like to try it.

Advantages of Climp Fecha Facil

[ ***The f irst advantage of Fecha Faci l was th e bet ter closing system

from other exist ing bags . The best feature of the produ ct was  – i t would

be eas i ly c losed wi thout leak ing and co nsum ers could eas i ly carry i t by

the hand les***]

The critical site was the price. If it was affordable the new product could grabthe consumer’s attention more. Another feature of the product was it coulduse in storing of sheets, shoes, dirty cloths, towels, books or cloths which wasnot usable and they could hang it as well. Without good and attractive featureit could not attract the market and for this reason features were important

issue in purchasing and making purchase decision.

Price expectation of Fecha Facil from consumers

[ ***Price was th e impo rtant determinan t of p urch ase. There were

dif ferent price percept ion s between Sao Paulo and Rio. This dif ference

bas ically ex is ted in the grouping s of ex is ting g arbage bags in the

market***]

In Rio the existing garbage bags were simple and weak or the competitorproduct of Dover Roll were more milky, thick, and had a closing system ofwings or ears. On the other hand in Sao Paulo, there was no differentiationonly blue bags were perceived as weak with weak handles. However,housewives did not believe that the handle could be a differentiator of existingblue and black bags.

Though having additional features in Fecha Facil, consumers were willing topay differently. In Sao Paulo the participants of apartments would pay the

same as for Dover where participants of houses were liked to pay a bit more.But in Rio the participants were liked to pay more for compensating additional

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features of the product. In controversy, some argued that products would betoo expensive and doubted about the price they were willing to pay would be

worthy or not. However, there was a preference stated for a green color asperceived as prettier, different and easier to find on the shelf. With regard tocolor vs. resilience, darker colors were stated as better as it appeared to bemore resilient.

Tie Tie Bag

[ ***For th e bet ter market research, interv iewer was also showed tyin g

sys tem to the interv iewee where the bags cou ld be t ie with p last ic or

twist -um s. But st i l l cons umers were l iked the handle bag***]

Besides, some interviewees believed the bag would be more resilient underthe weight of the garbage and would be cheaper. But some believed that themethod would be more complicated due to the number of edges. For theHandle Tie, the perception was the same and there were two controversiesalso and it seemed that would be much cheaper than the drawstring. Finally,with too much controversy and expectation Climp Fecha Facil would be acompetitive product if the company could launch the product successfully. And then competitors had to be in scare.

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