Ad-Lider Embalagens
TB0141
October 18, 2009
Ad-lider Embalagens, SA: Marketing Research for Drawstring Trash Bags in Brazil
Introduction
In July of 2001, Lazlo Sved and his new partner, Emilio Figer, were going over the market research one more time. The two senior executives at Embalagens Ad-lider, SA (Ad-lider Packaging, Inc.) were carefully considering how the findings of the marketing research they had commissioned would impact the launch of their new drawstring trash bag product line named Climp Fecha Facil (Easy Close). See Appendix 5 for a picture of the product. They were looking for information about consumer preferences, consumer habits, and perceived competitive advantages that would impact pricing, product size, and distribution decisions. Having invested one million dollars for the new production machine, the two executives were anxious to “get it right” with respect to targeting and positioning, and creating value for the consumer. Lazlo was convinced that a successful launch of the Fecha Facil was of extreme importance. He believed that the current Ad-lider product mix would not bring satisfactory profits in the long term. He felt that Ad-lider needed to launch a new product that was different, modern, and offered the market a more favorable cost/benefit relationship than products currently on the market.
Brazil’s Population and Economic Stabilization
Brazil is one the world’s largest countries, covering an area of 8.5 million square kilometers. The country is divided into 24 states, two territories, and a federal district. The five regions of Brazil and their respective population sizes are presented in Appendix 1. Of Brazil’s 170 million population, almost 43% or 72 million, live in the Southeast. Brazil’s three largest metropolitan areas are all in the Southeast: Sao Paulo (20.2 million), Rio de Janeiro (12.15 million), and Belo Horizonte (5.3 million).1 In the mid-1990s, after a long period of high inflation and economic stagnation, the successful
October 18, 2009
Ad-lider Embalagens, SA: Marketing Research for Drawstring Trash Bags in Brazil
Introduction
In July of 2001, Lazlo Sved and his new partner, Emilio Figer, were going over the market research one more time. The two senior executives at Embalagens Ad-lider, SA (Ad-lider Packaging, Inc.) were carefully considering how the findings of the marketing research they had commissioned would impact the launch of their new drawstring trash bag product line named Climp Fecha Facil (Easy Close). See Appendix 5 for a picture of the product. They were looking for information about consumer preferences, consumer habits, and perceived competitive advantages that would impact pricing, product size, and distribution decisions. Having invested one million dollars for the new production machine, the two executives were anxious to “get it right” with respect to targeting and positioning, and creating value for the consumer. Lazlo was convinced that a successful launch of the Fecha Facil was of extreme importance. He believed that the current Ad-lider product mix would not bring satisfactory profits in the long term. He felt that Ad-lider needed to launch a new product that was different, modern, and offered the market a more favorable cost/benefit relationship than products currently on the market.
Brazil’s Population and Economic Stabilization
Brazil is one the world’s largest countries, covering an area of 8.5 million square kilometers. The country is divided into 24 states, two territories, and a federal district. The five regions of Brazil and their respective population sizes are presented in Appendix 1. Of Brazil’s 170 million population, almost 43% or 72 million, live in the Southeast. Brazil’s three largest metropolitan areas are all in the Southeast: Sao Paulo (20.2 million), Rio de Janeiro (12.15 million), and Belo Horizonte (5.3 million).1 In the mid-1990s, after a long period of high inflation and economic stagnation, the successful