This case basically talks about Ad- Liner Packaging Inc, Brazil’s largest manufacturer of plastic bags and packaging, and their decision of launching of new drawstring trash bags named Climp Fecha Facil. With the investment of one million dollars already done to purchase new machines for production of the new trash bags the stake seem to be high. Market analysis regarding perceived acceptance, packaging preferences and the perceived feature for the new trash bag are done with three focus group in Sao Paulo and Rio de Janeiro of housewives living in apartments and houses. In order to learn more about the population a market test is conducted in Sendas Supermarket in Rio. Purchase intercept interviews were conducted with the people visiting the supermarket to better understand the profile of buyers by gender, frequency of garbage bags purchased, market share of major brands, motivators and concerns on purchase of garbage bags and their competitive advantage over Dover Roll. This case clarifies about market analysis procedures, methods for creation of customer value and other things that are required to be analyzed before launching a new product.
Issue
Company had already invested one million dollars to purchase new machines and had already come up with their new product before doing any research. And now they are testing whether or not the product fits to the customer's best interest or not. We are here to analyze whether this organization is marketing oriented, to evaluate methodologies used in research, and to find the ways to market the product and the justification to the launch.
The Analysis
To analyze the acceptance of new Easy Close garbage bag in the market and to study about its profitability we need to do an industry analysis. This industry analysis is done by using Porter's Five Forces Model.
The industry is high in competition with companies such as Geral, Dover Roll, DR w/handle, Koleta, Sendas to be competing with. Along with high