Bucharest University of Economic Studies [307142]

Bucharest University of Economic Studies

Faculty of Business Administration in Foreign Languages

Master program: Business Administration in English

Brand marketing strategy for Laundry Brands from Unilever

Case Study for Dero and Omo

Student: [anonimizat]:

Prof. [anonimizat]

2018

1.Introduction

“Lifelong learning is no longer a luxury; it is a necessity.” Says Joseph E. Aoun, President of Northeastern University. [anonimizat] I know is FMCG and I am passionate about how this industry is so competitive. This is why I decided to deep dive in this industry and took the opportunity of writing my thesis regarding this subject. Brand marketing strategies are changing overnight.

We keep hearing the fact that today you cannot make marketing the way you did it 5 years ago. [anonimizat]: [anonimizat], there was only one competitive frame and there were only a few end benefits. [anonimizat]-channel, all is microtargeted and the possibilities are infinite. This leads to infinite brand positioning possibilities. Before the era of internet of things and social media, a brand could have the same marketing campaign for years. Only by being present on TV, a brand could reach 90% of the target. There is such a [anonimizat] Z. You need new content every day in order to reach their attention. [anonimizat], so sometimes brands need to focus on platforms that are the most relevant and not engage in to many messages all at a time. [anonimizat].

I decided to write my thesis on Brand marketing strategies for Laundry Brands for 2 reasons. [anonimizat], gender, geography or profession so the brand strategies have to be relevant for as many persons as possible. The other reason is the fact that I am working on this category and I can use this opportunity to share my knowledge and acquire new expertize by doing the research for the thesis.

The structure of my thesis is the following:

1. [anonimizat]’s structure, theory part about brand marketing strategy.

2. [anonimizat].

3. Research – [anonimizat], [anonimizat].

4. Marketing mix (product, place, price, promotion, packaging, proposition; related to the research and how the researches have influenced marketing mix and brand strategy.

5. Conclusions: how focus group helped brands improve their marketing position by adapting the strategy and recommendations.

The market tendencies from the previous year show a [anonimizat]. [anonimizat] a [anonimizat]t which is the powder format, but occasionally, for specific clothes, people use a new format, liquid or caps for coloured clothes or for protect the fibre.

According to Monica Tamas, Senior Marketing Manager from Unilever, this company is adjusting its products to the new market tendencies in order to respond to consumer needs. Unilever is also trying to position the products on the self in the most convenient way for the consumer.

Nowadays, consumers are buying more and more specialized products. In the past, they preferred to buy only one detergent for all clothes type, then there was the tendency of buying 2 detergents, depending on the colour of the clothes. So there was one detergent for white clothes and another one for coloured clothes. But now, people have more fabric cleaning products. The decision regarding of what kind of detergent to buy is usually taken before going shopping, this is why continuous communication is essential in order to differentiate yourself from competition.

Cristina Zamfir, Brand Manager from Ficosota says that different types of products are better displayed on the shelf, so that the consumer is aware of the different attributes of each fabric cleaning product. In this case, not only the consumer will benefit, but also the company because the consumer can better identify the products he needs and as a consequence, sold volume will increase.

Light duty detergents are growing year to date, being o more dynamic market then heavy duty detergents, in modern trade. On the other hand, light duty detergents represent only 5% of the market, but with a growth tendency. This is also the case of future formats detergents such as caps and liquid. In west countries, they represent a bigger part that the traditional powder this also being the case of Ungaria, Poland and Czech Republic. In the following years, the following trend is expected in Romania as well.

Larisa Guzga, Marketing Manager at Henkel says that it is important to teach the consumers the difference between a general detergent that removes stains and a more specialized detergent that is gentle to the fiber. Due to people’s salaries, but also the habits, consumers still have only one type o detergent that is used for all needs. Year after year, we see that the number of people having more than one type of detergent is increasing. In order to teach consumers the importance of fabric care, Henkel had a partnership with Andreea Raicu.

Representants of all the companies mentioned above agree on the fact that they are doing their best in order to be more visible for the consumers, but the retailers play an important role here.

The tendencies for 2018 in FMCG industry are a continuation of the trend from the previous years, but at an accelerated level. The main objective is growth, but this time it is exponential growth. One of the main pillars of growth is represented by acquisitions. Another important aspect is to maximize the potential of e-commerce as consumers are switching from buying from traditional retailers to online shopping as it is more convenient and it saves a lot of time. This is also the year of innovation for business model in developing countries.

In 2018 it will be more challenging to grow business and revenues as prices will increase drastically. In order to have more attractive price for the consumer, the price war among retailers will be more present and vibrant. The importance of e-retailers will mean more competition and more price challenges as they have different ways of doing profit and other costs. Legacy retailers will push costs even more, forcing them to give up selling products that are not profitable enough. The shelf space will change accordingly and only the most profitable products will be listed. E-tailers will be more vocal in the following period, investing in share of voice and media placement.

Channel shift represent an opportunity, but in the same time a threat, depending how FMCG will deal with this situation. The most impacted products by the channel shift are the ones with ecommerce friendly economics such as razors, make-up products, skin beauty, consumer health, but also beverages and food.

The trend of natural and environmental friendly is more and more pregnant in almost every country, that big companies such as Unilever, P&G, Henkel will make more acquisitions, trying to sell organic products that address current needs and tendencies.

Most probably, as Frederic Fernandez, FMCG Strategic Advisor said, FMCG companies will have their own e-commerce platform in order to make cost efficiency but also to take control of their digital presence. Grocery shoppers will move online even more and consumers will embrace this trend of online shopping as it is more convenient. Alibaba and Amazon will continue to grow in the following period, they will also continue to buy other retail players. We will also see the developing of direct to consumer trend, a new initiative in which many big FMCG companies will take place in order to eliminate retailers and be closer to consumers.

2. Economic context

Unilever

Unilever is a unique company, with a proud history and a bright future. It has ambitious plans for growth and a strong sense of social purpose – a spirit that has driven their success since their foundation.

In 1885, the British founder, William Lever, began his business by making Sunlight soap. He was a social entrepreneur who recognised that cholera and dysentery were rife in Britain's Victorian slums, and saw that selling affordable branded soap could improve people's lives and grow his business.  His Lever Bros company had an inspiring purpose – to make cleanliness commonplace – and used advertising to make cleanliness the new social norm.

In 1929, Unilever was created through an agreement between Lever Bros and Margarine Unie, which had its origins in the pioneering development of margarine as an affordable alternative to butter in the Netherlands in the 1870s.

Both businesses were among the most philanthropic of their time, improving the welfare of their workers and developing products with a positive social impact. Today, they still believe that success means acting with the highest standards of corporate behaviour towards each other, consumers, and the world in which we live. More than ever, their brands, business principles and leadership in sustainability are helping people live well, and live sustainably.

Figure Snapshot

At Unilever the purpose, to ‘make sustainable living commonplace’, guides everything they do.

Their vision is to grow their business whilst decoupling the environmental footprint from growth and increasing the positive social impact. An ambition which is consistent with their long history of doing well by doing good since their origins in the late 19th century.

Today, they believe in a future in which everyone lives well within the natural limits of the planet.

Unilever believes profitable growth should also be responsible growth. Some people think that business growth and sustainability are incompatible. But they’re proving that sustainability drives growth using these means:

Secure supplies of raw materials and reduce risk in our supply chain

Cut costs by making products more efficiently, for example by reducing waste and packaging

Grow the business with innovative products which meet people’s desire to live more sustainably

Enhance and protect their reputation

In 2016 their Sustainable Living brands accounted for nearly half our growth – and they're growing 40% faster than the rest of the business. And some of them are also playing a role in delivering the UN Global Goals which aim to achieve three extraordinary things by 2030 – end extreme poverty, fight inequality and tackle climate change. For our planet, the consumers and the company to thrive, the world needs a new business model with sustainability at its heart. That’s why in 2010 they launched the Unilever Sustainable Living Plan (USL).

2.2 Figure Unilever Sustainable Living Plan

It shows how we’ll achieve our growth ambition by embedding sustainability into every brand, every market and throughout our value chain. Our Compass Strategy explains what we need to achieve. The USLP explains how we’ll do it and has three big goals:

Figure Unilever Sustainable Living Plan Goals

Unilever has been making lives better for more than 125 years. From our founders’ 19th century commitment to “do well by doing good’ to their ambitious 21st century purpose, of making sustainable living commonplace, the company has always been an agent for social change. However, the Unilever brand has mostly kept out of the limelight and let its consumer brands do the talking. But things are changing. The Unilever brand is going to speak up more actively.

A company that is a leader in sustainable living

A growing, profitable business that delivers solid results year after year

Leading brands producing innovations that improve people’s lives

A great place to work, with great people

These aspects are all key but their emphasis on sustainability – or of ensuring future generations have the resources and opportunity to enjoy life – is at the heart of their brand. More and more, the Unilever brand will give a voice to their purpose of making sustainable living commonplace. It will create the conversation, with a credibility that rings true due to its direct link back to the actions of their founding fathers and forward to the work they are doing today, with their Unilever Sustainable Living Plan. Marc Mathieu, SVP Marketing, says Unilever’s pioneering roots helped shape the 21st century brand story. “Unilever as a company made everyday cleanliness and healthy food commonplace in the late 1880s. Now Unilever can mean making sustainable living commonplace, giving the Unilever brand a beacon role in delivering our sustainable living goals and helping make sustainability simple and more desirable for all.” They are raising their company brand profile because they believe it will help deliver the business goals.

Another reason to love Unilever brands

Many people do not realise that Unilever is behind so many of their favourite brands. By raising their profile, making people aware of the connection across their wide portfolio, and anchoring the brands to their purpose, consumers will have another reason to buy Unilever products. This will help drive sustainable growth and make more people’s lives better.

Winning with customers

Many retailers have sustainability goals of their own and need the support of suppliers like Unilever to implement them. This collaboration is deepening Unilever’s relationships and helping them win with their customers. Aligning their brand with sustainable living will create even stronger bonds.

Boosting innovation

Sustainability is a fertile area for product and packaging innovation. It is allowing Unilever to deliver new products with new consumer benefits.

Developing markets

As well as attracting consumers who are already committed to ethically sourced and responsibly-made products they believe their actions will encourage other people to live – and buy – sustainably for the first time. This will develop current markets and open up new ones.

Joining the conversation

Today’s consumers want to know what companies stand for and how they operate. They are having global conversations about businesses like Unilever, using digital technology that shares what they know – whether true or false – in an instant. They want to be part of this dialogue and to share information about themselves in an open and transparent way. Presenting clearly what heir brand stands for will help them do that.

Inspiring people

Their vision to create a sustainable, growing business is motivating them and attracting the best talent to join Unilever.

Good for us, good for our planet

Unilever cannot achieve their aim of making sustainable living commonplace alone. Unilever’s Sustainable Living Plan’s success relies on getting others involved too. Unilever’s consumer brands are already engaging millions of people in conversations about living responsibly. A stronger company brand will amplify the dialogue created by their individual brands and encourage even more consumers to take the small steps that will make a big difference to the world.

Unilever is organized in 4 Category organisations. Categories drive the brand portfolio strategy and innovation and leverage scale across the globe. These 4 categories are the following: personal care, home care, refreshment and foods. Each of them has many worldwide known brands that can be found every day in the house of thousands of people around the world. They are quality products that have been developed in order to satisfy even the more exquisite tastes and with the best quality-price ratio. I really encourage you to try them because they are good value for money and they also have a purspose. Unilever is not only interested in making a big profit, Unilever is also trying to make earth a better place because happy people means happy consumers.

In the attached photo you can see the 4 structures at Unilever. Personal care is one of the most desirable category to work for. And this does not come as a surprise that Dove, the most loves brand is part of it. Together with Dove, in personal care Unilever has Rexona, Clear, Signal, Axe. These brands cover the following segments:

Dove: skin cleansing, hair, body, deodorants

Rexona: skin cleansing, body, deodorants

Axe: skin cleansing, deodorants

Signal: oral

Personal care has a new member of the family. It is called Baby Dove and it it a new brand especially designed for babies.

Dove Baby : skin cleansing, hair, body

2.4 Figure Unilever’s categories

Home care category is represented by the brands that help you have the perfect home you dream of. It is composed of two separate subcategories: House hold cleaning and Laundry.

House hold cleaning is represented by brands such as Cif, Domestos and Savo.

Laundry segment has Omo, a premium brand especially designed in order to clean your clothes, a brand who encourages mums to let children play in order to discover the world, even though this means getting clothes dirty. Another brand is Dero, the Romanian detergent that cleans for more than 50 years and it’s purpose is to help women around the country follow their dreams, but also encouraging people to have fun in activities like Color Run. Coccolino is represented by the most fluffy teddy bear, liked by both kids and parents. It will make your clothes fluffier and smell very very good.

Refreshment is another fascinating segment that everyone wants to work for. You are wondering why? It’s simple. Refreshment at Unilever means ice cream and tea. We have many tasty ice cream brands such as Magnum for pleasure seekers with wonderful combinations such as double caramel and double chocolate, Ben and Jerry’s a new ice cream in Romania Business which is a premium brand with amazing combinations such as Peanut Butter and Half baked cookie dough, Napoca for kids and for those who want to remember their childhood and also Cornetto whose communication is designed mainly for teenagers and young adults.

Foods is represented by 2 brands: Delikat, a national brand and Hellman’s. Delikat is good for cooking, transforming every dish in a delicious dish, while Hellman’s is known for ketchup, mayonnaise and barbeque sauces.

Unilever is a complex organization with head offices and plants around the world.

They have deep local roots and global scale organized around Market Clusters addressing 190 countries, to allow needs in market to be met in faster and more cost effective ways. Within market clusters they have multi-country organisations (MCOs).

2.5 Figure Unilever’s Clusters

Our country is part of Europe and within Europe in South Central Europe. In this cluster, Romania is the biggest country, with the biggest sales, biggest turnover and biggest head office with many employees. In Unilever South Central Europe are other countries like Bulgaria, Moldova, Serbia, Montenegro, Macedonia, Kosovo and Albania.

2.6 Figure Snapshot

Unilver is very proud that in the region which contains Romania, the 2 romanian brands, Dero and Delikat are on the top of the 3 brands that make the most turnover. You can see in the attached graph which are the other brands that help Unilever get its turnover.

2.7 Figure Top Brands Overview

Today Unilever is a global company, with a turnover of over €52 billion and sales in nearly every country in the world.

We make many of the world’s favourite brands and, every day, 2.5 billion people use Unilever products to feel good, look good and get more out of life.

At Unilever we believe that companies which address both the needs of the environment and the concerns of citizens will prosper over the long term. It’s this thinking that’s behind our vision, set by our Chief Executive Paul Polman, of growing the business whilst decoupling our environmental footprint from our growth and increasing our positive social impact. Our blueprint for reaching our vision is the Unilever Sustainable Living Plan.

2.8 Figure Worldwide Overview

The business case for growing a company sustainably is compelling. Consumers expect it. Retailers increasingly demand it from their suppliers. It drives innovation and market development. It saves money and avoids costs. And it inspires the people who work for our business. So this isn’t just about doing good. It’s also about doing well.

In order to help capture the ways in which sustainability contributes to our business success, we have developed this simple four-point framework:

Through more growth: Sustainability is supporting growth by deepening brand equity, driving sales and inspiring innovation. Our Sustainable Living brands are a good example – more on those later.

Lower costs: By cutting waste and reducing use of energy, raw materials and natural resources, we create efficiencies and cut costs. Cost avoidance ultimately helps to improve our margins. We have achieved cumulative cost avoidance of over €700 million through eco-efficiency in our factories since 2008.

Less risk: Sustainable ways of doing business help us mitigate risk across our operations. Operating sustainably helps us to future proof our supply chain against the risks associated with climate change and long-term sourcing of raw materials.

More trust: Placing sustainability at the heart of our business model strengthens our relationships with stakeholders and helps us succeed as a business. It helps us maintain our value and relevance to consumers, whilst inspiring Unilever’s current and future employees. Unilever is named number 1 graduate employer in 34 countries.

2.9 Figure Sustainability Driving Value

2.10 Figure Unilever Financial Performance

2.11 Figure Category Highlights

FMCG

Fast-moving consumer goods (FMCG) represent the products that have a high rotation, people buy them often so they don’t stay a long period of time on the shelves and they are not costly. This kind of products are also known as consumer packaged goods (CPG). The following products are part of this segment: product for personal wash, toiletries, cosmetics, packaged foods. On the other hand, durable goods have a slower rotation, people don’t buy them as often because they are designed to be used a longer period of time. Example of durable goods are kitchen appliances. Usually FMCG product are profitable, having a big turnover rate and this combined with the short shelf life, make FMCG industry profitable. Very important is the packaging for FMCG products for two reasons. One of them is related to marketing, is about the fact that being so many similar products, one way of differentiating them is by packaging. Moreover, on the pack you have the most important aspects you want people to know about the project such as: list of ingredients, marketing claims and easily identifiable logo. The second one is the fact that packaging is important in order to protect the product during transportation and stocking in warehouse.

It is often said that FMCG companies influence our daily decisions and daily life because they produce the most important products that we use everyday, so they are a vital part of our life. Even though there are hundreds of products, there are only a few giants which deal with the needs of billions of consumers everyday, for all around the world.

In the following graph you can see the FMCG companies in 2017, in a TOP that takes into consideration net sales. As you can see, Unilever is number 4th worldwide, while its number one competitor, P&G is on the second position. Figures are expressed in million US Dollars.

2.12 Figure TOP FMCG Companies

3. Research

Qualitative research

Dero -focus groups

Overall on brand context:

Dero is a Romanian heritage fabric cleaning brand with strong emotional references in consumer's mind. Hence, it managed to historically secure a strong position on the market (no. 1 in volume share & no. 2 in value share). However, Dero is now losing share & brand equity. Romanian FCL market is a very competitive, with strong players in premium tier (Ariel, Persil) and also in value tier (Bonux, Savex). Dero activates with two ranges: Dero 2in 1 & Dero Ozon. We learned from quantitative research that these ranges appeal to 2 different loyal consumer groups, with only 20% overlap (consumers buying both Dero 2n1 & Ozon = Dero Duals) and identifying profile of the se Dero consumers group based on socio-demographic we used for recruitment of the consumers.

Overall on the Unilever business objectives:

Generally, Dero is losing consumers year on year (drop in penetration among Hypermarkets). To a large extend the consumers are leaving Dero for Savex. Dero is losing share to Savex, a brand which is positioned in the same territory as Dero 2in1 ("great fragrances & clean") but has a price 27% lower vs. Dero 2in1 and 9% lower vs. Dero Ozon (details regarding ranges available in Brand context section). Decline is driven by traditional trade & supermarkets channels (where Savex has good distribution). We learned from previous research that Dero consumers switch to Savex for better price/value equation, good cleaning performance & relevant communication. Dero needs to act in order to regain penetration & share lost to Savex & to pre-empt share loss in other channels where Savex might expand in future.

Research core objective as per research brief:

The ultimate goal is to get Dero consumers to stay with the brand (stop the decline) so that we first have a healthy base on which we can build further by attracting consumers from competition by means of:

Understand main buying drivers for & differences between Dero 2in1 and for Dero Ozon+, from the 6P perspective

Understand switching drivers between the 2 ranges from the perspective of 6P.

Help evaluate several possible routes regarding reshaping both Dero ranges (Dero 2in1 & Dero Ozon) in terms of price, formula, portfolio expansion & architecture across ranges/ forma, package design, functional claim used in communication / on pack, communication. The critical elements are price, formula and portfolio expansion/ architecture

Research methodology:

All consumers:

All to be current category users; powder as most often used format

Medium income – Spread over 1400-2000/2001-3000/>3000RON – higher share of >3000RON for Duals

Medium education (2/3 of respondents per group)

For 49-60 y.o. age group – mostly Empty Nester

For 35-48 y.o. also to include families with kids

Have a portfolio of detergents (65/67% of consumer use at least 1 more detergent brand during 1year)

Dero 2in1 loyal users:

Buy Dero 2in1 in average 2 times per year

They are influenced by promotion, but less than Ozon buyers (30% of Dero 2in1 volume is bought on promo)

Dero Ozon loyal users:

Buy Ozon in average 2 times per year – loyal buyers even 3 times a year

More sensitive to discounts – They purchase Dero Ozon on promotion – almost half of shopping occasions

Dero Dual users & light:

Tend to have less loyalty towards Dero; Dero accounts for less volume in their total detergent needs

For 30-45- families with smaller & bigger kids (>14 y.o.)

Stimuli and flow of research:

The qualitative research consists of focus group discussions, each containing 6 women, all aged 30-55 from both urban and rural areas. First of all I wanted to know more about the lifestyle of our consumers. I wanted to know more about personal life, preferred activities, dreams and aspirations. Then, there were 4 activities developed during each focus group, as you can see in the attach figure.

3.1 Figure Activities for focus group

I realized the focus groups in the region where Savex is gaining a lot of share in order to have a better understanding of the reasons why the consumers choose Savex and I realized the figure below in order to summarize the results by region.

3.2 Figure Region Results

The idea of doing laundry is mostly anchored into a highly functional area – removing dirt (stains, dust, unpleasant odor) / “disinfecting even”, a basic process of keeping clothes and oneself in clean and healthy way.

The manifestation of clean laundry, on the other hand are moreover sensorial and emotional. The image of clean laundry itself is associated with: bright aspect, nice smell, neat aspect etc.

Laundry = not just removing dirt, a way to gain comfort and wellbeing, a sign of respect for self and others around (as social image is still highly important, especially for women in smaller communities).

3.3 Figure Needs for a laundry detergent

Some trends in laundry have been identified:

3.4 Figure Trends for laundry detergents

There are several criteria used by women to segment the market: format of detergent, colour of laundry, multi vs simple benefit, fragrance and price-quality ratio. In the attached graph you can see the effect of every criteria by their relevance.

3.5 Figure Criteria for choosing e laundry detergent

Regarding the format: Mostly using powder yet usage incidence of the new formats tend to increase, although still remaining occasionally used formats.

Color of laundry: High preference for a universal type of detergent used for all types of clothes. Only some use multiple / specialized detergents (mostly for whites).

Multi vs simple benefit: more important for 2 in1 users – considering efficiency of a multi-benefit type of detergent (no more fabric conditioning if 2in1).

Fragrance: tends to be an important criteria since smell = indication of cleanliness (“you can tell by the smell when you enter a clean house”).

Price-quality: Most important (high frequency in emerging as first criteria to segment the market across Dero users) establishing, going for detergent that are able to provide good results at a fair price.

Summing up main detergent segments identified by women: Dero ranges are placed in the same group when talking about price-quality & format but differentiate in terms of fragrance and number of benefits.

Analysing the results from focus groups, I realised the following analysis concerning the perception of consumers regarding Dero and the competition.

As you can see, Dero is perceived by the consumers as a high quality product at a low price. It has a similar proposition with it’s number one competitor, but it is perceived as a better product at a little higher price.

3.6 Figure Price-Quality segmentation

Regarding the fragrance, Dero 2in1 and Savex are considered perfumed detergents and this is one of the main reasons people choose to buy these laundry detergents. They are at parity, having an intense floral fragrance.

3.7 Figure Fragrance segmentation

Other conclusions that I draw from the focus groups are regarding the number of benefits offered, the most preferred format and what brand consumers associate with different color of the clothes.

Price itself tends to be less relevant for a “true” segmentation of detergent, since not really talking about the value it brings to women – “I am no better if I use Ariel” . Therefore, women additionally referred to the quality of the detergent for the price it provides. It is important for a detergent not only to provide a good price, but value for money.

And Dero emerged as best value for money (even if not the most affordable/ cheapest variant).

3.8 Figure Format segmentation

Regarding price-quality segmentation of detergent market, Dero brand is seen as providing best price-quality ratio while also providing good results in terms of cleaning efficiency & fragrance (Ozon is seen as providing nice fresh smell to clothes while 2in1 is intense & persistent). In the attached figure, I realized an analysis for each brand.

3.9 Figure Price-Quality segmentation

Fragrance proved to be a very complex and often confusing for women, as several criteria can be considered when making this segmentation:

Indications of the package (pictures, denominations, colors-i.e. green, white & blue are automatically associated with fresh)

The actual smell of the product (as women declare they tend to smell the detergent when shopping, especially if seeing something new that attracts their attention)

So, in the following slide we will provide women vision on market segmentation based on type of fragrance vs. “personality” of the fragrance / its full body & intensity.

3.10 Figure Perfume segmentation

Fragrance segmentation of detergent market: Dero has the advantage of versatility, while also providing distinctive and well defined fragrances. It is identified a higher preference towards detergents with a well defined fragrance (either fresh or floral). Smell is an indication of cleanliness, an add value for our consumers. Research revealed a high openness of Dero users or multi-functional products given it brings both increased easiness in usage and more value (not having to use more products). However, market is seen as limited mostly to 2in 1 products – detergent & fabric conditioning – in the context in which Bonux is not a real 3 in1 product but basically still a 2in1 (being economical is not an extra-feature of the product) while Ariel 3in1 does not clearly state its characteristic/ not sure what it actually does & contains.

Dero brand view is generally positive: it is popular, well known, friendly brand (used by many), familiar presence yet adapted to modern times/ not left behind, warm and welcoming , open and lively, joyful presence, makes everyone feel good. The triggers are the following: a well known, trustworthy brand with a long presence on the local market. A local brand/ our brand ”we grew up with” (more important for mature target and Transylvania area). It is popular, used by many which gives reassurance that is a good choice. A brand that kept pace with times, adaptable (2in1 variant, new formats). Very good price-quality ratio – a fair and correct proposition. Providing a good range of products -Ozon and 2 in 1, variety of fragrances, variety of formats. Providing good results – cleans well, while providing a nice intense and persistent fragrance, especially in 2in1 range. There are no major barriers across its users that see the brand as providing good efficiency in terms of cleaning, all at a fair price. Seen as providing a wide range of products, able to satisfy consumers needs , while also providing a modern touch to the brand (through liquid & capsules). Few felt the need for additional products (like white) inside the range, since most of them prefer using universal detergents for all type of clothes. Furthermore, Dero Ozon is usually seen as “variant which is better for whites (i.e. one of the reasons for which people can use both 2in1 & Ozon at the same time).

Conclusion and recommendations:

As a conclusion to the focus groups, Dero loyals (Ozon+ and 2in1) proved to be satisfied with the quality of product, considered as efficient and meeting their need for “good value proposition”. Far from being just an affordable solutions, but one that also provides a very good experience, so current loyal users prove low risk to leave any of the ranges. Dero Ozon + appreciate highly the cleanliness efficiency of the product- removing stains, cleaning well especially white clothes while also providing a nice, good fresh fragrance. However, some younger consumers state that it is unjustifiable left aside, too static, which makes it harder to be noticed by potential new consumers (might be seen as too simple and basic in the context of other brands like Savex being heavily promoted). Dero 2in1 main differentiation is the pleasant sensorial experience it brings to the laundry process (mostly described from the perspective of intense, persistent fragrance and soft sensation it brings to the clothes). Although claiming among most of its users as providing good cleaning results (including stain removal), seen by some of its users and especially light users) as not necessarily superiorly efficient, especially when it comes to white clothes.

Further way forward with respect to Dero ranges

Step1: strengthen perception of superior/ differentiating product quality:

Dero 2in1:

Provide more reassurance of cleanliness performance for Dero 2in 1 product (currently more associated with fragrance, cleanliness efficiency is somehow secondary, even if not an issue for loyal)

Strengthen current perception of its uniqueness and differentiating benefit of long lasting fragrance in the context of Savex strongly coming from behind to capitalize on Dero territory of “affordable, cleaning well, nice fragrance” detergent, so as to avoid losing more light/ duals to this brand

Microcapsules characteristics might be brought more into women's attention as a reinforce of good quality product experience (yet needs to be explained to women)

Dero Ozon:

Dero Ozon is needs a slight revival, as currently seen as too static and shadowed

Promote and emphasize its cleaning efficiency and fresh smell, as differentiating element of the product (seen by users as providing the benefit of very nice but uninstructive fragrance, more than just a “classical” detergent smell)

Moreover, could promote more the liquid variant which might attract new, younger consumers to the brand as an affordable “liquid”

Step2: could also consider extending current Dero range so as to cover consumers needs :

Dero 2in1: Enlarge the range of fragrances, currently seen as pretty i=limited (lavender being the most known & used by majority of users)

Consider extending the range of fragrances into the area of “fresh/ natural” fragrances (i.e. pine tree)

Launch the new package for Color and consider launching “white” variant as a new fragrance and superior cleansing power.

Omo – Qualitative research-focus groups

Curiosity makes us see the Universe as an infinity gathering of keyways through which we peep like kids. We cannot open all the of them, but we surely keep at hand (in a pocket, purse or on a string around our neck) Empathy – the key fit for all doors to the Galaxy of People. We push the handle using the power of Imagination. And we discover a different room every time. A space so vast and full of small keyways itself, that we can only call it Humanature. Unilever is one of the world's largest consumer goods company; its products are available in around 190 countries. Unilever purpose is that whatever the brand, wherever it is bought, to work in order to ensure that its brands are playing a part in helping fulfil a purpose as a business- that of making sustainable living commonplace.

And Omo is such a brand in company portfolio, that has long time stopped being just than about clearing & laundry. And this is why Omo has embraced DIG platform Omo believes that dirt is good for kids. Why? Because every time kids come back with dirt and stains on their clothes, you know they’ve had an adventure. Experiential learning through messy play is essential for a child’s development.

On Romanian market Omo started its history in the Romanian market in 1995 and after a long pause in communication (approximately 7 years), in 2015 launched Omo Ultimate with a new package and communication focusing 100% on functionality. In 2016 it was taken under the global umbrella of Dig (Dirt Is Good), with the Babyhead ad.

In 2017 it changed the package, adapted the Babyhead ad but unfortunately, considering the high SOV in 2017(about 16% YTD, with a lower 5% share) it didn’t manage to perform according to the expectations.

Considering the low performance compared to the expectations, Unlock Market Research was asked to submit a proposal so as to help OMO to better understand their low performance and to get insights in how it could achieve their target.

Main research objective is to collect insights from consumers that will enable a better understanding of OMO current brand perception across premium consumers in order to identify potential way further on the local market

Specific objectives to respond to research questions:

Overall on the category understanding – role, benefits, usage –behavior- how do they actually use- how much at one wash (see for powder & liquid)? Do they read instruction or not? How do they establish how much detergent to use? Do they use a combination of powder & liquid (based on types of clothes)?

Buying behavior – most important elements taken into consideration, drivers – how do they choose (brand, price, communication, experience with it, appealing less appealing elements), potential of switching for both mainstream& premium (other brand) segment; what makes them loyal to a brand. Check relevance of claims on packs

Overall on brands landscape:

Brand mapping

Evaluation of main brand of interest. emotional & rational evaluation of main brands of interest (Ariel, Persil) with focus on OMO performance (6Ps approach – do we have the right price? The right pack? The right product? Are we present in the stores? Etc.)

Evaluation of OMO communication:

Understanding performance of current Omo communication as such and vs main competition

Depict potential of new Omo proposed communication European market (likes & dislikes, message, relevance, potential for RO market, fit with RO culture &brand & category)

Further conclusions and recommendation for the brand way further – what would they like more from OMO.

I organized 6 focus groups in Bucharest, with women aged 25-45. Notes on recruitment:

All to be current category users; to wash they laundry personally and be responsible for buying detergent in their household. To wash at least 2 times / week; mix of users of powder, liquids and capsules. Groups of premium users to comprise: 2 users of Ariel, 2 of Persil and 2 of Omo; All to be non-rejecters of Omo. To have at least medium to high education and income. None to have participated in market research studies in the last 12 months. None to work in advertising, marketing, communication, production or distribution of laundry products.

What Omo is trying to do for the Romanian society is anchored with Romanians way of being, with the fundamentals of Romanian culture.

3.11 Figure Cultural aspiration

The Romanians fundamental identified are the following:

We have a collective and insecure culture, dominated by mistrust, criticism and self defensive mechanisms. Romanians aspire to freedom of expression, connection and openness, which add a differentiation point to the culture across Balkans. Romanians have a PRO attitude (“let’s do it”) and a NO behavior (who’s implementing?). We call this behavioral inertia and this is what fundamentally holds back cultural evolution.

However, a cultural change is about to take place: brought by latest years of crisis and technological progress, by new generation and being more informed. Romanians have learned the personal progress depend on themselves and not on others. Main cultural turning points are the following :from child to adult culture, an era of empathy and selectivity, higher focus on individuality, self development, acting, aspiration towards independent, free, confident self.

Romanian mothers tend to treat kids as self extensions rather than self standing individuals. Completely subordinating their life to raising kids, doing everything she can in order for the kid to be “Happy”. Be there for him/ her to fulfill all their needs. Often blocking their path towards natural development of the kid into an independent adult.

This is why, Kids = always protected & guarded.

Mothers needs to relax more, to learn to let go to unnecessary fears so as to really build strong kids/ individuals. Liberation of both MOTHER & KID might actually result in happier individuals (adults & kids). Modern mothering style, approaching motherhood in a very natural way. Considering that kid has his own individuality and tries to adapt his style to the already settled family setup. Try to inspire him/ her to grow well and be happy. She is a careful selector of living rules that fit her style and that she feels at ease with. She settles grounds of free child development, but carefully controls the range of choices the kid has.

In this case, Kids = “supervised” freedom.

If in the past doing laundry was very much related to the “social self” (making a good impression on others/ being accepted), now it is an intrinsic part of maintaining personal well-being

Having clean clothes means that respecting and taking care of yourself; is about being a valuable person (especially across premium target). Not only about how you look but about how you feel. So, while cleanliness efficiency is still a primordial /must-have requirement from a detergent, women are also looking for products & brands that provide them wider benefits to support their lifestyle – efficiency, time saving, easing usage etc. –see next slide for manifestations of these needs across women.

The manifestations of the trend in women's’ behaviour is represented by the following aspects: Increased usage of capsules – perfect way to optimize even more washing process (not to worry about dosage and furthermore, saving storage space), Increased importance of detergent’s “protective role – prefer using liquid and capsules for being smoother/ less harsher on clothes as compared to powder, Multipurpose products – i.e. 3in capsules that provide all the products they need in just one simple pod (not having to buy multiple products any more), Small packages increased relevance – especially younger women avoid buying very large packs even if more “price advantageous”, Increased usage of short washing cycles – saving time (as they need time for doing other activities).

The ideal detergent for the premium market has both an emotional benefit, but also rational features. The emotionality benefit is represented by:

Looking for a brand that is able to provide efficient solutions to simplify their life. An empathetic brand that is focused on people and not on itself

people look for brands/solution to both ease their life and allowing them enjoy life (rather than focusing on the tasks / what they have to do).

The rational features are the following:

Products & packs that are easy to use, store, handle. Could be a hyper-concentrated product, yet still easy to use (in the context in which people not really reading usage instructions)

Less aggressive, invasive and chemical products so as to follow this increasing need for more natural/ healthy lifestyle of people

Ingenious but practical shapes – i.e. packages that can be re-used /transformed (i.e. packs in forms of toys/ cubes etc.)

Intuitive smart packs elements that ease usability – i.e. caps on bottle can have messages to state they can be used in the washing machine

Multi-purpose products / all in one type of product to ease their life

Consumers do not seem to have very strong emotional bond with the brands, choice is most of the time based on familiarity and product efficiency, as none of the brand has a higher purpose besides “washes good, removes stains”.

Competition

Ariel is seen as leading figure, well-established brand with a modern and innovative side. It is very similar to Persil which is an authority / expert figure, highly professional image. On the other hand, Perwoll is feminine and refined, elegant, yet also slightly show off and superficial. Omo has a not a very clear / coherent image, a shy and shadowed character. Not fully convincing, mostly seen as a second choice (most accessible choice in premium). It is not providing very clear reasons for choosing the brand (besides promotions, smaller price).

Perwoll: the soft and feminine and elegant choice

Conveying elegance, refinement and femininity; a soft, mild and delicate character. Attractive and alluring, yet risking too seem rather superficial- putting too much focus on aspect while lacking substance (not that good performance of the product, not really delivering the promise).

There are not many triggers, mostly implying a limited/ occasional usage:

Most are using the brand for their more special clothes (delicate, wool or black/ intense colors) as brand gained its renown in protecting colors/ materials. One of the first brands that started to talk of care for cloths and came with detergent for black.

Drawbacks:

Perceived as more expensive detergent and not that efficient in terms of efficiency , like stain removal. Brand associated with limited usage- special clothing/ materials (not for day to day or unpretentious clothing). Not associated with a universal variant. Also, limited to liquid variant (no powder or capsules).

3.12 Figure Perwoll

Persil: the expert, professional choice

Seen as a powerful and strong/ confident character; knows exactly what it wants and what to say, “well prepared”. Conveying strictness & professionalism, efficiency, always mastering every situation. Yet, also seeming slightly too pretentious, a rather aloof character that keeps a certain distance; could seem cold and stiff, wanting to do things only in its own way.

Triggers:

German connotations still remains an important trigger (associated with rigor & quality to the standard. An idea which is still maintained in brand communication as well). Seen as delivering to expectancies, good performance of product overall.

Drawbacks:

A brand that seems more distant, not that friendly & welcoming overall. More expensive (especially in capsules and even liquid, that are seen as also benefiting of less promotions). Still, also see it in the “shadow” of Ariel brand; closely following on its footsteps and not really doing something revolutionary or different.

3.13 Figure Persil

Ariel: the confirmed leader

Associated with strength and authority; a well established and widely recognized leading brand. Determined, keen on doing things properly / to the standard. Also, seen as having a rather dynamic side, always looking to come up with something new, developing itself. Still, acting in a rather expected way – although developing, keeping same style/ “pattern”, not really surprising even when delivering novelties.

Triggers:

The first premium detergent to appear on the RO market. Consistent and coherent in building its image as premium / top quality detergent; also confirmed by product performance and constant launch of new products. Still benefitting from consumers’ recognition/ positive WOM as “best” detergent. Very good market presence – easy to find, good frequency of promo, expanding range lately.

Drawbacks:

Too functional brand/ approach, not involving consumers too much (somehow cold). Some could consider product as too aggressive on clothing & skin/ could be abrasive and unfit for colored clothes.

3.14 Figure Ariel

OMO: the undefined

Lacking a coherent and well defined image in consumers' mind, mostly given its inconsistency in terms of communication market action and presence. Appreciated as never keeping “straight” line, hesitant and thus, hard to associate with a specific idea/ positioning. Thus, triggering a rather dual imagery across consumers: On one hand seen as obsolete, left behind, reserved and shy (given its shadowed presence on the market). On the other hand, associated with the idea of joyfulness, innocence, playfulness. Caution, as can also be related to lack of expertise & experience.

Triggers:

Mostly bough for its “better” price as compared to consecrated brands like Persil or Ariel. Might give the impression of a less aggressive/ abrasive product (more fit for babies).

Drawbacks:

Not really convincing, to shadowed/ restrained and kept to itself brand; lacking consistency & coherency in which concerns its presence on the market (pack/ communication, distribution etc.). All this, makes people perceive the brand as less “performing” (less vocal= lack confident in its quality). Moreover, the fact that people often find the brand on promotion / lower price might transmit the idea of less performing product (in the absence of any other info on product/ brand).

3.15 Figure Omo

Impact on the brand: could strengthen the idea of freshness & cleanliness, yet not really making it to stand out too much/ preserving the expected lines (the powder even seen as too simple). People are appreciating the graded bottle cap since easing usage/more efficient. The capsules shapes &format seen as interesting – combining powder & liquid might make the product more effective. The silver adds a modern touch and makes the pack to stand out more. What people don’t like is the powder pack: too much white on the pack makes it seem as too simple and common (classical touch). The opaque bottle – not allowing the liquid inside to be seen which might increase “sensorial” of the product. Too much use of the silver color – might make people think of a different product category like detergent for dishes (esp. in capsules variant).

The logo is visible, distinctive, yet not having a very clear significance (could even seem chaotic if not linked to the main idea of the brand). The strengths are that it is very clear brand name / visible. Distinctive and unique, making it easy to be identified at the shelf. Could somehow communicate the idea of playfulness or the idea of splash of cleanliness (yet only if related to communication). However, the weaknesses are that it is Overall slightly confusing people with respect to the significance of the logo – people can also decode it as an anti-bacterial product (like a microbe/ bacteria). Thus, not really adding value to the brand / package as long as not linked to the idea of dirt is good platform.

3.16 Figure TVC evaluation

What people like about the commercial is that it is highly appreciated through the presence of the little boy; triggering positive mood and engagement with the ad, sweet and with a funny touch, moreover, seen as anchored in their daily life, something they can recognize into (dreaming about the future of the kids, kids messing the clothes), different from other detergent commercial though the focus on the story line; bringing emotion into this rather functional category (from communication point of view), positive and encouraging, inspiring a more approachable and welcoming brand. Main negatives are related to the TVC not being able to be linked / remembered as Omo commercial:

Seeming disconnected; too much focus on the story/ kid’s future that make people get lost in translation in the moment when detergent is introduced. Can be a commercial about everything – about insurances, financial plans, education etc. (no clear link with detergent till the end of the ad/ the last scene with kid eating). Too many messages- package change, new formats, improved formula (with rapid enzymes). Also, the product/ brand message is seen as too generic; people feel that Omo message is basically same as the one of Ariel & Persil – not to worry if your clothes get dirty, with Omo you can remove stains”.

3.17 Figure Packaging evaluation

Conclusion and recommendations:

Research revealed that premium users tend to perceive the detergent market as being rather stable and strongly anchored in brands managing to provide good efficiency in terms of product delivery. Premium target is very demanding in terms of product efficiency, while also less keen in trying products that are not able to raise to their standards (not having time to make useless experiments). Furthermore, coming with something new & differentiating is even more important in the context of perceived homogeneity in terms of benefits provided by premium brands – ““cleans well, no worry if you get dirty”. So, in current context, in order for OMO to be a relevant proposition for premium target, it is mandatory for the brand to build a strong and differentiating proposition on the market, both at brand & product level. OMO can be the first brand in premium segment that has a bigger purpose beyond clean laundry so as to create emotional link with people, to ad meaning to people’s life. yet< this can take place only if its brand proposition is backed-up also by a relevant & differentiation proposition at product level.

From an undefined and inconsistent brand profile to an engaging, inspiring, positive and new perspectives. Building further on “DIRT is GOOD” platform proved to be relevant for people, as long as the brand manages to communicate in the BIG IDEA behind it. Omo does not only cleans clothes, but support both. Yet, in order for OMO to break through in this highly demanding market, dominated by strong presence of ARIEL brand, it needs to:

Build a strong and consistent brand proposition, let people know what you stand for and that you are there. Provide distinctive product proposition. People in premium are very much demanding product efficiency, they are less willing to buy if not convinced by product.

In order for OMO to become a relevant proposition on premium market, there are some mandatory actions brand needs to consider:

strong and consistent media investment. BE present and visible is essential in the context of brands like Ariel and Persil being brands with a very strong presence on the market. Being always there, not letting “guard down” is a sign of their power & confidence. Being a “come & go” brand is seen as a sign of weakness, lack of confidence in own offer. product innovation – claiming same message of efficiency is not enough as not managing to make the brand stand-out. Launching the detergent with disinfectant is an opportunity for the brand – both new and responding to the brand proposition “Dirt is good” (not only cleans but also disinfects, so one more reason to let you kid free to play).

3.18 Figure Omo Swot analysis

1. Communication :

Consider I’m a believer TVC/ route of communication as more tonic and positive brand tone. Expressing more clearly OMO vision; “Dirt is good” being about letting kids free, opening their horizons, allowing them to “believe”

STILL, consistency is more important than TVC- maintain constancy in communicating brand role & vision

Develop further the idea /go beyond just TVC so as to be consistent and strong in transmitting brand purpose – educational campaigns, special promotions, in-store activations etc.

Developing consistent campaigns is even more important for premium target. You have to be where they are (digital, in-store) and not only on TV. Could use Skip idea of real life also

2. Product:

Communicate better the range of products, as many consumers are unaware of capsules or even liquid variant. Also, do not know if Omo has detergent for colour clothes etc.

disinfectant detergent could be considered in the current context of women using more and more shorter & low temperature washing cycles. Indeed innovative idea. Also, might sustain even more the idea of dirt is good – allowing kids to really be “free”

Might consider launching a concentrated product formula, as relevant for consumers (more efficient/ smart usage. STILL, also consider a very easy to doze system, as women hardly measure the amount of detergent used in one washing cycle

3. Package:

Consider launching new package formats to sustain the idea of brand’s being an inspirational and creative one – i.e. packs that can be transformed into toys (cubes game for kids)

Also, could consider some pack improvements (i.e. add more color to the powder variant, reduce from silver background in the capsules & liquid variant). KEEP THE BLUE as adding freshness to the brand, strengthening the idea of freedom

4. Price & promo:

Slightly smaller price as Ariel & Persil might be preserved so as to sustain the brand’ more approachable and close to people image

Still, avoid too frequent price promo so as to reduce the risk of being perceived as “not that efficient” / risk to damage brand equity

5. Activations:

Consider in-store activations like samplings for consumers to actually try and see product cleans efficiently

Could also consider CSR & educational campaigns to sustain the idea of “dirt is good”- parenting conferences etc.
Activations to imply games/ participations of both parents & kids (to stimulate collaboration & creativity of both).

Marketing Mix

Marketing mix (product, place, price, promotion, packaging, proposition related to the research and how the researches have influenced marketing mix and brand strategy)

SWOT:

The marketing mix is a tool used in marketing in order to analyse the most important aspects of a brand, also known as 6Ps: proposition, pack, product, price, promotion, place.

I realised the analysis for Dero and Omo versus their main competitor which is Savex for Dero and Ariel&Persil for Omo.

Figure 3.19 Dero vs Savex

3.20 Figure Omo vs Ariel/Persil

Proposition

Dero Ozon is local & affordable proposition, anchored in freshness, lower price than DERO 2in1. Dero 2in1 is good Value for money proposition, delivering an uplifting & complete sensorial experience (also anchored in Surf platform). Omo has premium proposition, with focus on stain removal, but at the same time, anchored in an emotional platform.

Regarding the brand pyramids, DERO is stronger than Savex, but overall weak conviction level (driven by quality, differentiation and performance). OMO needs to build higher salience and trial as it has a rather low presence.

3.21 Figure Brand Proposition

In order to have a better understanding, I realised an analysis for the category attributes for each brand. The results of the analysis are the following: Ariel is owning all attributes, Dero is not owning any of the must wins, Omo is gaining more associations year on year as it has restarted to communicate.

3.22 Figure Must win attributes

There are some conclusions regarding the wash performance for wash. Bellow you can find them for Dero, taking into account that the performance is measured at 40 Celsius degrees.

3.23 Figure Format Performance

The same analysis was also conducted for Omo and its main competitors: Ariel from P&G and Persil from Henkel.

3.23 Figure Performance by format

Pack&Portfolio

Dero has a very complex portfolio, covering all the available formats. Dero is present in 60 skus, in different variants and different sizes. It is available in powder, having the biggest percentage, but also is growing in liquids and capsules.

3.24 Figure Dero Portfolio

Dero is present in 2 ranges, Ozon which is more affordable and 2in1 which is more anchored in fragrance. Dero Ozon is present in 2 variants: Mountain Dew and Sea Breeze. The available formats are powder, liquid and capsules. 2in1 is available in 3 variants and in all 3 formats. They are all universal detergents, so they are suitable for both white and coloured clothes. As per the research, consumers prefer the universal detergent, especially for the mainstream detergents, as Dero is.

3.25 Figure Dero vs Savex powder portfolio

Dero is also a playes in liquids. There are 5 variants available for both white and colour clothes.

3.26 Figure Dero vs Savex liquid portfolio

In capsules, the situation is more favourable to Dero because it is the only mainstream detergent available in this format. Yet, the market share is 6.6% as capsule is the smallest segment of the market, but it has a big impact.

3.27 Figure Dero caps portfolio

Omo Portfolio is composed of 26 skus, it is newer to market compared to Dero and it is developing at this moment of time. Being a premium detergent, we can see that liquid is more important for this brand because consumers with high and above average wages are more likely to use liquid detergent.

3.28 Figure Omo portfolio

Omo is available in 2 variants, one of them is universal and the other one is color. Both of them are available in more sizes: 6 sizes for universal variant and 3 sizes for Color. As compared with Dero which is available in high suds and low suds, Omo is only for low suds which means that it’s suitable for the washing machine. Ariel and Persil, also premium detergent, with tradition on the market, are present in more variants: universal, color, but also 2in1 which means fabric cleaning and fabric conditioning.

3.29 Figure Omo vs Ariel vs Persil powder portfolio

Fabric cleaning future formats are represented by new formats, having the same power of cleaning as powder, but can be dosed and stored easily. Liquids and capsules are both future formats. We can see that premium detergent are all available in future formats, it’s the market trend. While in powder Omo is available in 2 variants, in liquid it is available in 4 variants: Active Clean, Color, Fresh Clean and Sensitive. Ariel and Persil have almost the same market share, each of them having approximately ¼ of the market. They are well known and trusted brands, even though Omo is only at the beginning, it is starting to grow at every reading which is an encouraging sign.

3.30 Figure Omo vs Ariel vs Persil liquid portfolio

Capsules is the newest format on the market, Ariel is covering almost 80% of the market, Persil is the second player. Omo is available in 4 variants as Ariel, while Persil has 5 variants.

3.31 Figure Omo vs Ariel vs Persil caps portfolio

Price

Capsules are the most premium format on the market, it’s the newest, most appealing, most easy to use, but with the highest price. Liquids price is the most discounted in order to attract more powder users to this new format. As you can see in the attached graph, Ariel and Omo are in the super premium category, having an Api of 174 for Ariel and 166 for Omo, but the strategy for Omo is to have more dicsounts and be in the premium range in order to drive more trial. Dero 2in1 and Savex are both in the segment of making clothes smell great, having a premim, mid and value positioning. Perwoll is the only one in the segent of clothes and color care, while Dero Ozon is almost alone in the smart shopper segment.

3.32 Figure Price and performance analysis

Further, I realised a more in-depth analysis of the prices for each format. We can see that in the traditional trade chanel, Savex is the cheapest brand, which is one of the main reasons that grow Savex market share. Yet, this positioning is not fully reflected on national level. We can see that Dero 2in1 is not competitive enough versus Savex. This is why, the price strategy for Dero is to reduce the price. Omo is lower versus Ariel as per internal strategy.

3.33 Figure Price analysis

For the liquids, we can see that Ariel and Persil are at parity, while Perwoll is a little bit less expensive.

3.34 Figure Price analysis

For the capsules, Ariel is leading the category and is also the most expensive, followed by Omo and Persil. Dero is below 100.

3.35 Figure Price analysis

DERO has a strong promotional presence in the market; while Omo is still building up.

3.36 Figure Share of leaflet powder

Dero underrepresented in hypermarkets; Omo not reaching its full potential in hypermarkets and supermarkets.

3.37 Figure Share of leaflet liquid

Ariel is undisputable leader across channels regarding capsules, having the biggest share of market, but also share of leaflet.

3.38 Figure Share of leaflet capsules

Promotion

The budget brands have and invest in visibility is called BMI which stands for Brand & Marketing Investment or A&P which comes from Advertising & Promotion. The more BMI you have, the more visible you will be. In the attached graph, you can see the share of voice of the main competitors on Fabric Cleaning Market in Romania in 2017. You can see that Dero ends the year at 15%, while it’s dropping its budget with 413 bps vs 2016. Omo has a higher investment of 16.6%, and compared to last year results, it is bigger with 517 bps. Ariel is the loudest brand with 20% share of voice, even though it is dropping investment versus last year.

3.39 Figure Share of voice by brand

Brands are communicating on TV, but they are focusing on different formats. From the attached table, you can see how the share of voice is composed. So, for Dero that has a share of voice of 15%, we can see that 7.9% of its communications are for the full range and 6.3% are for liquid format. Omo is communicating almost only liquids because 13% out of 13.4% of the budget goes in promoting liquids.

3.40 Figure Share of voice details

I realised a graph with the share of voice by manufacturer, which you can see below. The 4 main players on detergent market are P&G, Unilever, Ficosota and Henkel. In 2016 the situation was different, but Ficosota starting to invest more in Savex, while Henkel dropped the investment and now they switched positions, Ficosota moving from the 4th position to the 3rd. P&G is the loudest with 35% share of voice in 2017.

3.41 Figure Share of voice by manufacturer

Place

The brands from Unilever have a distribution in all the channels across Romania. WSD is an indicator representing the weighted selling distribution. In the attached graphs we can see the distribution for Omo and Dero, but also for the competition.

3.42 Figure Distribution total Romania

DERO is in line with Ariel, Savex is still building at national level.

3.43 Figure Distribution powder Romania

In powder, Dero is leader, Ariel is closely following.

3.44 Figure Distribution capsules Romania

Ariel is leading the segment, Dero has a slight decrease.

3.45 Figure Distribution liquid Romania

Savex has a slight decrease. Omo needs to strengthen in supermarkets in liquid segment.

3.46 Figure 6P one pager Dero

In order to compare Unilever brands and main competitors, I realised the following one pagers taking into account marketing mix.

3.47 Figure Portfolio and range overview Dero

Dero portfolio is complex, available for both Dero 2in1 and Ozon, but also for manual detergent and washing machine detergent.

3.48 Figure commercial activities Dero

Dero is always active on TV, in digital and also very present instore. There are locally developed assets in order to match the needs and desires of local consumers. In the new purpose campaign, Dero is encouraging the all family to share together the chores in order to enjoy more moments together.

3.49 Figure 6P one pager Savex

Savex proposition is similar to Dero, whose key attribute is great fragrance for clothes that lasts longer after they’re washed. Savex is a Bulgarian brand, that is starting to gain more share. Savex packaging is communicating freshness. In Traditional Trade, it is the cheapest brand on the market.

3.50 Figure portfolio and range overview Savex

Savex portfolio is composed of powder and liquids, they do not have capsules. In other countries they also have fabric conditioners. They have 7 variants of powder, available for both manual wash, but also for the washing machine.

3.51 Figure commercial activities Savex

Savex is communicating on TV perfume lock, a technology that helps clothes keep more their fragrance. The main character is an old lady “Tanti Florica” who is funny especially for their target. There are also POSM especially in Tratditional Trade, but also in supermarkets and hypermarkets.

3.52 Figure 6P one pager Ariel

Ariel has a premium proposition and it is focusing on stain removal. This is their main attribute that is being communicated in evert TV Commercial and on digital as well. The product is of good quality, being part of premium brands, it is parity performance with Omo and Persil for powder. Ariel has a national wide distribution, with a focus on hypermarkets and supermarkets.

3.53 Figure portfolio and range overview Ariel

Ariel portfolio is complex, containing many SKUs in powder, liquid and caps all coming in different sizes. They are designed for white and color clothes, but also there is universal detergent.

3.54 Figure latest commercial activities Ariel

Ariel is always very visible in instore, having different point of sales materials that are helping consumers to easily identify the product. The new range with Lavender is available in all formats and it is heavily communicated.

3.55 Figure 6P one pager Persil

Persil has a premium proposition, as well as Ariel, it is focusing on stain removal. Main claim used is “High power in removing the stains”. The pack is premium and the distribution is national. Taking into account the proposition, the price is also in line with other premium brands.

3.56 Figure portfolio and range overview Persil

Persil has a big portfolio, activating in all 3 formats. Its capsules are duo, combining 2 chambers of liquid, but also one chamber of liquid and another of powder.

3.57 Figure Latest commercial activities Persil

Persil has adapted its global communication to the specific of local market. The TV commercial has the specific white and way of using lights as in the already existing global commercials, but it is featuring a local celebrity in order to be more targeted.

5.Conclusion

Both qualitative researches developed in 2017 provided important insights that are being used in the next campaigns and in the plans for launching new products. Focus groups confirmed the things we were thinking and also came up with interesting insights.

Dero is a Romanian heritage fabric cleaning brand with strong emotional references in consumer's mind. Generally, Dero is losing consumers year on year. First thing to address is the price. To a large extend the consumers are leaving Dero for Savex. Dero is losing share to Savex, a brand which is positioned in the same territory as Dero 2in1 ("great fragrances & clean") but has a price 27% lower vs. Dero 2in1 and 9% lower vs. Dero Ozon. As a consequence, Dero prices will be decreased by giving more discounts. We will also have copacks of Dero and Coccolino in order to be more attractive for the consumers.

The second thing to address is the fragrance. Regarding the fragrance, Dero 2in1 and Savex are considered perfumed detergents and this is one of the main reasons people choose to buy these laundry detergents. They are at parity, having an intense floral fragrance. This is why, we will increase the perfume in Dero.

As a conclusion to the focus groups, Dero loyals (Ozon+ and 2in1) proved to be satisfied with the quality of product, considered as efficient and meeting their need for “good value proposition”. Far from being just an affordable solutions, but one that also provides a very good experience, so current loyal users prove low risk to leave any of the ranges. Dero Ozon + appreciate highly the cleanliness efficiency of the product- removing stains, cleaning well especially white clothes while also providing a nice, good fresh fragrance. However, some younger consumers state that it is unjustifiable left aside, too static, which makes it harder to be noticed by potential new consumers (might be seen as too simple and basic in the context of other brands like Savex being heavily promoted). Dero 2in1 main differentiation is the pleasant sensorial experience it brings to the laundry process (mostly described from the perspective of intense, persistent fragrance and soft sensation it brings to the clothes). Although claiming among most of its users as providing good cleaning results (including stain removal), seen by some of its users and especially light users) as not necessarily superiorly efficient, especially when it comes to white clothes.

Omo is encouraging parents to let kids explore the world and don’t panic about dirt, Omo is encouraging everyone to be curious, to discover and to develop. Consumers do not seem to have very strong emotional bond with the brands, choice is most of the time based on familiarity and product efficiency, as none of the brand has a higher purpose besides “washes good, removes stains”.

Ariel is seen as leading figure, well-established brand with a modern and innovative side. It is very similar to Persil which is an authority. Omo is still not so well estabilished, people consider it a premium detergent, but it comes in mind after Ariel and Persil. It is lacking a coherent and well defined image in consumers' mind, mostly given its inconsistency in terms of communication market action and presence. It is mostly bough for its “better” price as compared to consecrated brands like Persil or Ariel. Might give the impression of a less aggressive/ abrasive product (more fit for babies). Impact on the brand: could strengthen the idea of freshness & cleanliness, yet not really making it to stand out too much/ preserving the expected lines (the powder even seen as too simple). People are appreciating the graded bottle cap since easing usage/more efficient.

In conclusion, focus groups organized by me help me better understand the brand positioning in the eyes of consumer and represented the starting point for making the future brands in order to gain more share of market and be more relevant for the consumers and also to understand the fact that it is essential to build awareness for your brand because otherwise other not so well intentioned people could do this.

6.Bibliography

Frederic Fernandez, 2018, 2017 FMCG Winners & Losers and 10 Predictions for 2018, Linkedin

Karen Leland, 2016, The Brand Mapping Strategy: Design, Build, and Accelerate Your Brand

Maria Vaschi, 2018, Detergenții specializați – o provocare pentru furnizori, retaileri și utilizatori, Piata Magazine

Michelle Greenwald, 2018, The Evolution Of Brand Marketing Strategy From One To Infinity, Forbes Magazine

Sicco van Gelder, 2005, Global Brand Strategy: Unlocking Brand Potential Across Countries, Cultures and Markets

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