Marketing Analysis Essay Example

powders due to negative effects on river life. However, not all developments bring positive outcomes for businesses. In December 1991, when the European Council's Environment Ministers decided to establish an eco-labelling scheme, it posed a major threat to Ecover as it undermined their unique selling point against conservative detergents.
When analyzing economic trends that impact businesses, it is important to monitor factors like global economic collapse, interest rates, inflation, unemployment, consumer price index, real GNP, personal income savings rate, and capacity utilization. It is crucial for companies to assess not only national economic factors but also regional and global influences. The social environment also plays a significant role in terms of elements such as beliefs, attitudes, lifestyle changes, and age distribution. The importance of the social environment varies depending on the nature of the business. For Ecover, a consumer-products company, the impact of social and environmental factors is highly significant. The society individuals grow up in shapes their beliefs, values,and norms significantly. Core beliefs and values tend to persist among people within a particular society. In the USA specifically,a promotion and discount-driven mindset has been prevalent among consumers due to media influence.However,recent cases have shown that this mindset can change with appropriate media attention.For instance,a medical research study demonstrated that allergies caused by optical brighteners in traditional detergents have increased fivefold over the past two decades.There are also considerations regarding threats.People have found that using green detergents can be time-consuming and have hesitated to purchase such products.In addition, a significant portion of the population lacks awareness about environmental safety. This presents a challenge for Ecover as they need to educate people on the impact of environmental

pollution. The technological environment also plays a crucial role in Ecover's operations, as new product and process technologies can greatly affect the company. A marketing strategist must analyze these technological changes and take advantage of them. New technologies that provide greater value in meeting customer needs encourage investment and economic activity. To stay competitive and seize opportunities in the market, Ecover collaborated with Henkel and utilized their labs and resources. This partnership resulted in the development of a phosphate-free dish-washing machine powder, allowing Ecover to introduce new products that catered to consumer demands. Through re-inventing pre-war technology using renewable natural raw materials, Ecover achieved a breakthrough. However, they faced competition from rivals who employed postmodern technologies. When evaluating the market, factors such as market size, growth rates, developments, customer preferences, purchasing behavior, market segmentation, and distribution were considered. Initially in the 80s, the eco-friendly detergent market was small due to limited concerns about environmental safety. However, as awareness grew regarding harmful chemicals present in other detergents, Ecover's market expanded.Europe is a significant market for Ecover, boasting over 20,000 health food stores. On the other hand, the USA presents untapped potential as consumers lack awareness about harmful ingredients and require education. The market has also seen an increase in competition with the entry of successful health-oriented chain stores from the US introducing green products. In order to attract and retain their target audience, companies like Ecover strive to provide superior value compared to competitors. Ultimately, consumer decisions are based on judgments about the values offered by suppliers. This text discusses the opportunities and threats that Ecover faces with its customers:

Opportunities: Ecover's customers show a willingness

to abandon supermarket shopping in favor of purchasing their products at health food stores. There is a strong emotional connection between Ecover and its customers, which was revealed through a survey on consumer attitudes. It was found that some customers were even willing to pay more for Ecover products due to this emotional connection. Additionally, consumers in Western Europe are eager to support a better environment through their purchasing habits.

Threats: For many customers, choosing a detergent is not something they deliberate upon extensively. They find Ecover detergents time-consuming and are too busy with work to prioritize environmental concerns. In countries like Japan, only 42% of existing Ecover customers expressed willingness to pay more for eco-friendly products.US customers were price-conscious and required education about the benefits of eco-friendly products. Additionally, they were uncertain if eco-friendly detergents would be as effective as other options. This section examines Ecover's competitors' objectives, strategies, strengths, weaknesses, size, and market shares. The weaknesses of Ecover's competitors create opportunities for the company while their strengths pose threats. In the detergent market, health food stores and pharmacies have relatively few competitors. In Belgium, the Netherlands, the UK, and Scandinavia in the early 1990s, competitors held less than 30% of the market combined. However, Ecover had an advantage as it operated in all European countries, Japan, USA, and Canada. Following Ecover's lead in selling eco-friendly cleaning products through health stores, pharmacies specialty stores and mail order services more than 20 producers entered this green market in the 1980s.Thus increasing competition with health-oriented chain stores emerging in Europe by 1990.In addition to Held (Switzerland), Awalan (Germany), Urtekram (Denmark), Ark (UK), Planet (USA)and Akwarein( Netherlands); larger

companies like Unilever,P,and Henkel posed threats to Ecover in mass marketsThese large companies offered lower prices to supermarkets and responded to the ban of benzene in detergents by launching their own ranges of washing powder in Germany and Sweden. Additionally, Ecover faced competition from companies like Unilever, which had a wider product line and occupied more shelf space in supermarkets. Unilever's advertising budget for their dishwashing liquid in the UK alone exceeded Ecover's worldwide turnover. Appendix 2 provides information on market share of competitors.

Internally, Ecover can control micro factors that affect its performance. Micro environment scanning is typically conducted at the product/market or Strategic Business Unit (SBU) level to assess business performance based on environmental developments. This involves analyzing operating results, strategic issues, marketing mix effectiveness, marketing structure, and marketing system.

When evaluating operating results, Ecover examines sales, market share, profit margin, and costs. Some strengths identified include a four-fold increase in sales over four years (from BEF 50m in 1985 to BEF 200m in 1990) and Ecover accounting for over 70% of detergents sold in health food stores across the UK, Scandinavia, Netherlands, and Belgium; as well as around 50% in France and Switzerland. Dishwashing liquid represented 40% of Ecover's turnover. However, weaknesses were also identified.The retail price of Ecover's products was four times higher than the ex-factory price. In addition, in 1992, Ecover only sold 1000 tons of detergent powder annually. However, these efforts were not enough to gain traction in the mass market. Compared to Belgium, the Netherlands, UK, and Scandinavia, Ecover had a relatively low market share in France, Switzerland, Germany, and Austria. The company struggled against larger brands in terms of

profit per square meter of shelf space in supermarkets.

In terms of strategic issues analysis, Ecover had specific marketing objectives from the beginning – targeting specialty stores and health food stores in particular. Their key competitive advantage was their eco-label which appealed to environmentally conscious individuals. By 1992, Ecover products were being sold in 15,000 stores worldwide.

However, there were weaknesses in Ecover's approach as well. The company entered into the mass market without sufficient knowledge about its specific target segment. When evaluating marketing segments it is important to consider both the attractiveness of the market and the company's ability to compete within it. Ecover failed to recognize customers who preferred promotional offers and couponing while also attempting to educate people about harmful ingredients instead of catering to existing price-conscious consumers.The effectiveness of Ecover's marketing mix can be evaluated using the four Ps: product, price, promotion, and place. This involves effectively promoting the appropriate product at the right price in the correct location. One strength of Ecover is that their products were well-positioned in pharmacies and health food stores, giving them a reputation for being eco-friendly. The option to refill tanks in health food stores also provided customers with cost-saving benefits and enhanced their shopping experience. Furthermore, free booklets were distributed to explain the competitive advantage of Ecover products. Additionally, Ecover successfully reduced the cost per wash by 10%, thereby almost equating the price to that of regular detergents.

However, there are weaknesses in Ecover's marketing strategy as well. The ease of use and brightness of their products did not meet the standards set by traditional detergents. Moreover, Ecover detergent was priced 20-30% higher than traditional options. There

was also a lack of support from distributors, and unlike their competitors, Ecover did not offer mail order service. Another missed opportunity for Ecover was failing to introduce a benzene-free detergent powder in Sweden after benzene had been banned in hospitals.

When evaluating overall marketing performance, it can be seen that one successful aspect was the educational component of Ecover's strategy which created customer loyalty. The marketing team expanded its operations in Belgium and offered supermarkets a margin four times higher than what they received from selling traditional detergents. However, there was a failure on behalf of the team to effectively utilize agents and importers when developing strategies for entering supermarkets.There was a lack of advertisements and promotions for Ecover products, which contributed to their low awareness in the detergent market. The marketing team's efforts to raise environmental consciousness among consumers were unsuccessful, with less than 1% of the market knowing about Ecover. As competition increased, Ecover needed to enhance its competitive strategy. Initially, they enjoyed protection from larger firms and built a reputation. However, by 1990, traditional detergent producers became interested in the green detergent market, posing a significant threat. To compete against their massive advertising campaigns, Ecover had to find an alternative marketing approach.
One solution was selling their liquid detergent at a lower price compared to the market leader while also introducing powdered detergent to expand their product line. Unfortunately, outsourcing the production of powdered detergent resulted in decreased profit margins and traces of banned chemicals being discovered in the final product. To address these issues, Ecover established its own factory in 1990.
Ecover implemented various strategies aimed at lowering costs and attracting new customers.

They installed refilling stations in stores where customers could refill both liquid and powder detergents into empty bottles. This change in distribution style aimed to reduce expenses while offering convenience for shoppers.Additionally, Ecover implemented cost reduction measures such as reducing their advertising budgets. They also introduced the "building block system," which allowed customers to customize their soap, water, and bleach ratios based on their individual needs. This resulted in a 10% decrease in the cost per wash. Through this process, Ecover realized that including bleach in their powder was unnecessary as only one out of every five washes required it. As a result of these efforts, Ecover was able to bring their cost per wash closer to that of traditional brands.

In order to compete with larger companies in the industry, Ecover decided to enter the mass market by distributing their products through supermarkets. However, they recognized the need for further research and development in order to be successful in this new market segment. To entice supermarkets into carrying their products, Ecover offered them a higher profit margin compared to what they were earning from other detergents.

Ecover successfully attracted environmentally conscious consumers who were strongly attached and loyal to the brand. Some of these consumers were even willing to pay a premium price for Ecover products and preferred shopping at health food stores over supermarkets. These consumers highly valued quality but found that green detergents did not provide as much brightness as other options.

On the other hand, there were some consumers who weren't particularly loyal to any specific brand and were more drawn towards promotional offers and coupons available at supermarkets.Advertisements have a significant impact on

consumer behavior, particularly for larger companies like P&G and Unilever who have larger advertising budgets compared to Ecover. In addition to advertising, consumers also consider the effort required in using green products for washing. It is crucial to provide an easy-to-use, eco-friendly product that meets these needs. While US detergent consumers may not be environmentally conscious yet, it is believed that media interest can influence a change in their behavior. Price-conscious consumers prioritize products that are easy to use.

On the other hand, Western European consumers are willing to pay more for green products as a way of contributing to the environment. The table provided illustrates various customer reactions towards Ecover products. To effectively change consumer behavior, the influencing agent must either alter beliefs and values or modify the customer's environment.

Despite having good turnover, Ecover's financial position has become unstable due to the establishment of a new factory. Although Ecover holds a significant share in the health food store and pharmacy market, entering the supermarket industry will result in intense competition.

Based on analysis conducted, several recommendations can be made for Ecover:

1.[unspecified recommendation] 1: Gradually enter the supermarkets - Take a gradual approach when entering into the supermarket industry.
2: Increase financial reserves - Aim to build up more financial backup to ensure stability.
3: Conduct deeper market research - Carry out thorough market research to gain a deeper understanding of target markets.
4: Focus on innovation and differentiation - Develop unique features or benefits that set Ecover apart from competitors within different markets.

Overall, implementing these recommendations will help guide Ecover towards successful expansion into new markets while maintaining stability and competitive advantageThe text suggests that in order to compete

with major competitors, it is important to ensure that the price and quality of products are competitive. Additionally, finding potential international markets and developing an effective marketing strategy are crucial. Considering global perspectives and approaches is also recommended. Introducing a revamped marketing strategy can be beneficial. Many corporations now recognize the significance of the green movement as a marketing phenomenon. To enter the mass market, significant investments for marketing and expanding into new countries are required. However, Ecover faces limitations due to insufficient capital which hinders the creation of a new marketing strategy. To successfully penetrate the mass market, adopting a global mindset and approach is necessary. Prioritizing countries in Asia such as India and China where consumption is increasing annually is recommended for Ecover. Various entry strategies specific to each country's unique conditions should be considered when entering supermarkets, including licensing as an alternative when exporting becomes unprofitable due to intense competition.
This text discusses the potential benefits of reducing distribution and importing costs for Ecover, which would allow them to lower prices. The agreement in question is based on royalty and the royalties are guaranteed and not subject to fluctuations in shared income from investments. Exporting is seen as a way to gain international experience, but it is noted that exporting may increase the prices of Ecover products compared to competitors. Therefore, it is not recommended for Ecover to export to price-conscious markets like the USA and new markets. However, it is suggested that they should continue exporting within Europe.

The next topic discussed is market segmentation, which involves grouping customers based on similarities. Since Ecover has decided to enter supermarkets, they should tailor a

marketing mix package according to customer needs. Market research is recommended in order to understand customer requirements and characteristics. It is suggested that Ecover should focus more on the benefit-sought segment. To achieve success in terms of environmental performance and market share, a green marketing mix strategy is proposed.

Regarding product strategy, cooperation among finance, R, corporate staff, and marketing groups is considered essential for proper implementation. Product strategy decisions are typically determined by top management in many companies.
My product-positioning strategy aims to distinguish my product from competing brands and convey our values and identity. This involves positioning the brand favorably in a market segment compared to other products. To achieve this, I recommend focusing on leading supermarket chains like Tescos/Sainsbury in Europe when introducing Ecover products to new markets. It is important to present our products with a unique twist in order to attract new customers who have not yet considered our brand. Highlighting Ecover's competitive advantage can help draw in these new customers and expand the overall market, contributing to the growth of our product. Placing our product at the entrance of shops will ensure it catches everyone's attention, although there may be a high risk involved in directly positioning Ecover against other leading brands.

Additionally, I aim to exceed customer satisfaction by improving or modifying our products. The strategies employed by competitors regarding their product, pricing, distribution, and promotion are pushing us towards making these improvements. While Ecover's products already meet quality standards comparable to those of its competitors, there is a need for further improvement in order to surpass them.To exceed customer satisfaction, further research and reformulation are necessary. It is crucial

for Ecover to design products that are more user-friendly in order to differentiate them from competitors' offerings. Additionally, expanding the product line is a priority for Ecover to provide customers with more choices and compete with competitors who have a diverse range of products. The introduction of new items like car wash liquid, glass cleaner, detergent cakes, bathing soap, shampoo, and conditioner under the Ecover brand will give customers greater options.

In order to gain a competitive advantage in the market, Ecover needs to review its pricing strategy. Considering that other companies follow an "everyday low price" strategy, it is important for Ecover to reconsider its approach. I propose adopting a pricing strategy focused on gaining market share by setting the lowest possible price. As a newcomer in the mass market, pricing should aim at enhancing customer experience and increasing market share without compromising quality.

Even if operating at a loss initially, focusing on gaining market share is vital for Ecover's success. As volume increases over time, costs will decrease allowing even a low initial price point to be profitable for Ecover. By starting with lower prices, Ecover can quickly increase sales volume and establish a cost advantage over larger competitors which will accelerate overall market growth.Ecover's distribution strategies focus on efficiently and quickly reaching a large number of customers at low costs. This involves minimizing intermediaries and building strong relationships with distributors. Once established in supermarkets, Ecover aims to expand into intensive distribution, ensuring its products are available at all retail outlets. This will lead to a significant increase in turnover.

Regarding promotion strategies, the goal is to transition customers from being unaware of Ecover products to

becoming aware, understanding, strongly believing in, and ultimately purchasing them. To achieve this, Ecover should first create brand awareness by highlighting the unique features of its products. Additionally, supporting the promotions of licensees and dealers can also be beneficial.

To stimulate consumption, Ecover could consider offering promotional strategies such as a 'value added pack' for customers. Moreover, it would be advantageous for Ecover to provide more educational information with long-term objectives that encourage and promote new values and behaviors.

Lastly, targeting environmentalists for product recommendations should be prioritized by EcoverAppendix Appendix 1: Survey of consumer attitudes in various countries:

Australia:
Pay 10-15% more for green products - 69
Boycott others - 82
Give up 10-15% quality for environmental safety - 65
Pay more even if it's hard to make ends meet - 43

Canada:
Pay 10-15% more for green products - 72
Boycott others -
Give up 10-15% quality for environmental safety -
Pay more even if it's hard to make ends meet -

Germany:
Pay 10-15% more for green products -68
Boycott others -76
Give up 10-15% quality for environmental safety -62
Pay more even if it's hard to make ends meet -47

Italy:
Pay 10-15% more for green products -79
Boycott others -
Give up 10-15% quality for environmental safety -
Pay more even if it's hard to make ends meet -

Japan:
Pay 10-15% more for green products -42
Boycott others -43
Give up 10-15% quality for environmental safety -45
Pay more even if it's hard to make ends meet –46

Holland:
Pay 10–?15?%%%% more for green products –87 
Boycott others –74 
Give up ?5–?30%% ?quality for enviromentel satey –74 
pay moer eaven iff its hart doo maike endes meite —46–

Spain:
Pey ten-fifteen percente + foar gren prodects < eighty-five >
Boykot otters < eight-six >
Giwe yupp ten-fifteen percente cwaliti foar envyrmental safty < sixty-four >
Pei moar eaven iff its

hart doo maike endes meete < sixty-four >

Switzerland:
Pay 10-15% more for green products -80
Boycott others -75
Give up 10-15% quality for environmental safety -78
Pay more even if it's hard to make ends meet -64

Source: David Jobber, 1998, Principles and practice of Marketing, 2nd Edition.

Appendix 2: Table showing Ecover's competitors' market share:

Competitors in Germany & Austria - More than 50%
Competitors in Swiss & Germany - Almost 50%
P and Unilever together (in the 1980s) - Almost 80%
Private brands (by the 1990s) - 10-30%

Bibliography:
1. David Jobber, 1998, Principles and practice of Marketing, Second edition.
2. Subash.C.Jain, 1997, Marketing Planning & Strategy, Fifth Edition.
3. Wayne D.Hoyer, Deborah J.Maclinns, 1997, Consumer Behaviour.