Sunlight Laundry Detergent

Ayan Ghosh Ayush Agrawal Divyesh Seksaria Dyutiman Ganguly Gagan Garg Gaurav Nagar Radhika Bansal

About Unilever and lever brothers • • •

•

Formed Formed by Merger of Margarine Unie and Lever brothers 70 Countries and 3,00,000 employees 500 Subsidiaries-Managements by nationals

UNILEVER Organization Structure Dutch Company Unie British Enterprise Lever Brothers

Unilever

Board

Unilever Board Member heading Product Groups Member heading Product Groups Unilever Board Member heading Prod

Subsidiary Company

Subsidiary Company UCL

Operating Company Lever Brothers

Subsidiary Company

Operating Company

Background of Detergent Industry Ø Market

Size of $423 million in 1989 at factory price. Ø Retail pricing at a 30% premium. Ø 1987 and 1988 the market size had grown. Ø Growth after 1988 was not expected. Ø 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 Ø Awareness

about environment increased to 23% of Canadians

Ø Ø Green

Products – Growth 30 % faster than other new products

Ø Ø Phosphates Ø

– harmful to marine life

Evolution of Green Sunlight

Introduction to Loblaws

Defense Strategies for Lever Ø Retention

of ‘Value Consumers’ through sales promotions

Ø Ø Ø Guard

its weak front by bringing out new product like “Sunlight Green”

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Defense Strategies for Lever Ø Maintain

its current positioning of  Sunlight – Fresh, bright and clean

Ø Ø Ø Reduce

price on Wisk Liquid Laundry Detergent to maintain its lead in liquid detergent market

Ø Ø

Options for Lever Brothers Ø Defend

current Sunlight Phosphate positioning

Ø Ø Launch

a new “Green” laundry detergent

Ø Ø Extend

brand Ø

Sunlight Powder Detergent

Defend current Sunlight Phosphate positioning • • • • •

PROS: Low awareness of phosphate issue. Nascent stage of “green movement”. Reduce the expected impact of Loblaws’ launch.

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• 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.

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 Ø Follow

Loblaw’s green strategy and introduce green Sunlight Detergent Powder Ø The green product will be under the umbrella brand of Sunlight Ø Positioned as better cleaning at lower price, being eco-friendly Ø Slowly phase out phosphate based products Ø Go along with Sunlight liquid

Sunlight : Product Mix PRODUCT-LINE Product-Mix Width LENGTH Detergents Powder 

Detergents Liquid

Disposable Bar  Detergent Soap Dishwasher 

Liquid Dishwasher 

Sunlight Laundry Detergent Powder 

Sunlight Laundry Detergent Liquid

Sunlight Bar  Soap

Sunlight hand dishwashing liquid

Sunlight Green Detergent Powder 

Dishwasher  Sunlight

Levels of Green Sunlight

Sunlight Detergent Phosphate to Green

Sunlight Detergent

Brand positioning map High phosphate

Hi gh pr ic e

Lo w pr ic e

Low phosphate

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Thank You