Sunlight Laundry Detergent
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Transcript of Sunlight Laundry Detergent
Ayan GhoshAyush AgrawalDivyesh SeksariaDyutiman GangulyGagan GargGaurav NagarRadhika Bansal
About Unilever and lever brothers• Formed by Merger of Margarine Unie and Lever brothers• 70 Countries and 3,00,000 employees• 500 Subsidiaries-Managements by nationals
Core business
Edible fatsdetergentsfood and drinksfrozen foodsagri businesspersonal productsspeciality chem
Presence
North americaEurope ROW
UNILEVER Organization StructureDutch Company
Unie
Unilever
Unilever Board Member heading Product Groups
Subsidiary Company
Operating Company
Lever Brothers
Operating Company
British Enterprise Lever Brothers
Unilever Board Member heading Product Groups
Unilever Board Member heading Product Groups
Subsidiary Company
Subsidiary Company
UCL
Background of Detergent Industry
Market Size of $423 million in 1989 at factory price.
Retail pricing at a 30% premium.1987 and 1988 the market size had grown.Growth after 1988 was not expected.Market split between liquid and powder.
Background contd…
• Liquid detergent share of 9%• Powder detergent clearly dominated the market.• Liquid detergent expected to show decline of 9% in 1989• Powder market to grow by 4% in 1989 and thereby
remain flat.• Liquid detergent basically losing out due to costing.• Performance brand and value brand in powder segment.
Environmental Concerns
Awareness about environment increased to 23% of Canadians
Green Products – Growth 30 % faster than other new products
Phosphates – harmful to marine life
Evolution of Green Sunlight1960s-Launch of non phosphate Sunlight Products
No Govt. regulations – non phosphate products dropped
Current scenario-Reintroduce non phosphate Sunlight Products
Introduction to Loblaws
Defense Strategies for Lever
Retention of ‘Value Consumers’ through sales promotions
Guard its weak front by bringing out new product like “Sunlight Green”
Defense Strategies for Lever
Maintain its current positioning of Sunlight – Fresh, bright and clean
Reduce price on Wisk Liquid Laundry Detergent to maintain its lead in liquid detergent market
Options for Lever Brothers
Defend current Sunlight Phosphate positioning
Launch a new “Green” laundry detergent
Extend Sunlight Powder Detergent brand
Reposition Sunlight Laundry Detergent
Defend current Sunlight Phosphate positioning
• PROS:• Low awareness of phosphate issue.• Nascent stage of “green movement”.• Reduce the expected impact of Loblaws’ launch.
• CONS:• Major advertising and public relations campaign would be required.• Cost of defending phosphates would be unlimited.• Potential volume loss.• Loss of business with Loblaw's.• Not capitalizing on first mover advantage.
Launch a new “Green” laundry detergent
• PROS:• Easier to establish an environmental positioning.• Opportunity to test customer response to an environment strategy.• Significant synergies.
• CONS:• Relaunch costs difficult to justify.• Conflict between existing product and an “environmental” brand.
Extend Sunlight Powder Detergent brand
• PROS:• Generation of incremental volumes.• An attractive option to inculcate line extention.
• CONS:• Huge investment for advertising, promotion, product and packaging
design.• Offering two very different products and letting the customers
decide—hampers reputation and existing positioning.
Reposition Sunlight Laundry Detergent
• PROS:• Allows Sunlight to capitalize on its current position.• Opportunity to gain share in the short term.• Incremental costs would be minimal.
• CONS:• Could jeopardize long term profits and corporate reputation.• Challenge to reposition, given the existing Sunlight family
positioning.
Recommendations
Follow Loblaw’s green strategy and introduce green Sunlight Detergent Powder
The green product will be under the umbrella brand of Sunlight
Positioned as better cleaning at lower price, being eco-friendly
Slowly phase out phosphate based productsGo along with Sunlight liquid products
Sunlight : Product Mix
PRODUCT-LINE LENGTH
Product-Mix Width
DetergentsPowder
Detergents Liquid
Disposable Bar Soap
Detergent Dishwasher
Liquid Dishwasher
Sunlight Laundry Detergent Powder
Sunlight Green Detergent Powder
Sunlight Laundry Detergent Liquid
Sunlight Bar Soap
Dishwasher Sunlight
Sunlight hand dishwashing liquid
Levels of Green Sunlight
Clean clothes
Phosphate free Detergent
Clean wash
Environment friendly
Use for Dry Cleaning
Sunlight Detergent Phosphate to Green
Sunlight Detergent
Brand positioning mapHigh phosphate
Low phosphate
High
pric
e
Low
pric
e
Sunlight Greenclean
Tide Total Regular Sunlight products
Tide variant
Thank You