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Despite a continual but slow growth in the Thai dishwashing liquid market, major players such as Sunlight, Lipon F, and Teepol are now suffering from price competition from both local and house brands of megastores such as Big C, Tesco's, and Makro. In response to price cutting from local products (including those labeled as " OTOP" products using local herbs as well as house brands of megastores, major industry leaders choose to remain the same price but reduce the size down from 700 ML to 650 ML. Each industrial players tend to lever on the same core benefits. Sunlight, the biggest industrial leader who enjoys 65% of market share, use scents and the ability of the liquid to eliminate fishy order and disinfect both the dish and the sponge as well as the brand legend and long-term trust it from the market worldwide. Teepol stress on the non residual quality for those who concerned with health (in fact all dish washing liquid brands are required by law to use edible chemical substances), and Lipon F, the second largest industry player, enjoys approximately 10% of market share, stresses on the concentrated formula that can effectively get rid of all kinds of grease and fishy odors. Another 25% of market share were allocated to house brands and local brands. As making dishwashing liquid does not require any special techniques or technology, so similar quality of products can be imitated easily. With lower marketing cost, products made under consignment can be priced 30%-40% lower than the major brands that spend a lot of budget both on advertising and merchandising. Considering the demand side, there is a growing number of price sensitive segment who has just started using dishwashing liquid in substitute to detergent. House brands and local brands seem, therefore, to have their market. The major brands now use their brand superiority as the differentiation point together with POP- Point of Purchase promotion to guard off their market share. In the long term, this market would be characterized by more variety of product series for more health conscious segments, package design and scents that appeal to different segments in the market. Source: Marketing Plus Magazine, Volume 5, Issue 44 March 2013
Friday, April 26, 2013
Suppose you wish to enter in "dish washing liquid" industry, how would you create a creative value proposition to escape away from the oligopolistic competition where there are practically two dominant brands enjoying 75% of market share?
Despite a continual but slow growth in the Thai dishwashing liquid market, major players such as Sunlight, Lipon F, and Teepol are now suffering from price competition from both local and house brands of megastores such as Big C, Tesco's, and Makro. In response to price cutting from local products (including those labeled as " OTOP" products using local herbs as well as house brands of megastores, major industry leaders choose to remain the same price but reduce the size down from 700 ML to 650 ML. Each industrial players tend to lever on the same core benefits. Sunlight, the biggest industrial leader who enjoys 65% of market share, use scents and the ability of the liquid to eliminate fishy order and disinfect both the dish and the sponge as well as the brand legend and long-term trust it from the market worldwide. Teepol stress on the non residual quality for those who concerned with health (in fact all dish washing liquid brands are required by law to use edible chemical substances), and Lipon F, the second largest industry player, enjoys approximately 10% of market share, stresses on the concentrated formula that can effectively get rid of all kinds of grease and fishy odors. Another 25% of market share were allocated to house brands and local brands. As making dishwashing liquid does not require any special techniques or technology, so similar quality of products can be imitated easily. With lower marketing cost, products made under consignment can be priced 30%-40% lower than the major brands that spend a lot of budget both on advertising and merchandising. Considering the demand side, there is a growing number of price sensitive segment who has just started using dishwashing liquid in substitute to detergent. House brands and local brands seem, therefore, to have their market. The major brands now use their brand superiority as the differentiation point together with POP- Point of Purchase promotion to guard off their market share. In the long term, this market would be characterized by more variety of product series for more health conscious segments, package design and scents that appeal to different segments in the market. Source: Marketing Plus Magazine, Volume 5, Issue 44 March 2013
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ReplyDeleteLooking at the market right now we can see that three major competitors' value proposition are:
ReplyDeleteSunlight: created scents and the ability of the liquid to eliminate fishy order and disinfect both the dish and the sponge
Teepol: non residual quality
Lipon F.: concentrated formula that can effectively get rid of all kinds of grease and fishy odors
We can see that those are the basic benefits that are expected by the consumers and actually nearly most of the dish washing liquids provided the same benefits in term of product but because they done a very good job on advertising and focusing on only one positioning and not trying to be the best at every benefits.
In order to be successfully launched in the market we must create a creative value proposition to escape away from the oligopolistic competition. We can differentiate our product from other dishwashing liquid by focusing on a unique benefit of the dishwashing liquid.
For the creative value proposition, the company should not think only in the company side. The company should look for the trend in the market and set up the idea market to gain information from different point of view. We could do some research to find the needs of the consumers, of what they are expecting in the dishwashing liquid, are there any unmet needs? That our competitors are not yet offering. But still at the end the company have to see whether they have the capability to serve those needs to the consumers or not.
The creative proposition that we can go for could be the mild dishwashing liquid. Which is the dishwashing liquid that is not harmful and creates irritation to the skin. Since the three major competitors are not yet emphasizing on this feature.
Titinun S. 5280330
Skin friendly and non allergic dishwashing liquid sounds great. Do you think who would be the target market for your product and do you think that the product should go mass or niche?
DeleteThe target market would be the housewife and generation Y and X who need to do dishwashing job, mainly aim for home users. The target will mainly be female since dishwashing job usually done by female and females are more sensitive to their looks. With the current dish washing liquid, some of them have a feeling of aging hands and irritation make them do not want to do dish washing.
DeleteI think the market should go mass since this problem does not only happen to certain group of people but usually most of the people who are doing dishwashing without using gloves.
Titinun S. 5280330
The variety of product series can help me to create value of dish washing liquid. In the Thai culture trend, we need something more than liquid to help customer clean all dishes. I think we want something new and real that can compete with the major competitors.
ReplyDeleteI create the value for the washing liquid by changing the liquid to the detergent ball. This idea adapt from the baht bomb idea. When customer want to clean all dishes they do not have to use the liquid anymore, just only throw the small piece of detergent ball in the sink. When this detergent ball get wet it will create bubble and consumer just only put all dish and washing them .
In addition, this new washing liquid has different scent and color with different mixture of chemical that can tell consumer which type of product match with the detergent ball. The new detergent ball not only have the strong chemical to make all dishes better clean but also have different scent that make the washing doesn’t bored anymore. Save time and have fun with detergent ball is the new concept of the new washing dish.
Thanika 5380042
That's creative yet if I were the customer, it would be doubtful for me. How can you make your targeted customers believe in your claims?
DeleteI would demonstrate my product that it is real and work.
DeleteI would show how it works to the customers and tells how the easiest of washing the dish by using detergent ball.
For example, i will use the detergent ball to wash all dirty dishes and tell the customer to catch the time and see how it work. So i think customer may believe in my product as well.
This comment has been removed by the author.
ReplyDeleteAccording to the article, the dish washing industry may not be totally attractive due to the low entry barrier. Since this kind of products doesn't require special specific technology, so it is easy for new entrants wanting to enter this industry. Though there are leading wash dishing companies in the market, we should focus on the current market demand and trends for what product's attribute that selected market demands in order to clearly differentiate our company's products from others. This is because those trends keep changing all time, so it is important to keep pace of it continuously. By doing this, we are able to come up with proper positioning offering important attributes that selected target demands. Therefore, based on increasing trends of customer's price sensitivity, this would be an opportunity for us to gain market share if we are able to come up with right marketing strategies and product's attributes that potential customers demand such as quality products with low cost.
ReplyDeleteTo summarize, to escape away from these leading competitors, we should first select targeted segments then do research on these potential buyers while doing company's analysis as well in order to contribute to competitive advantages. With these competitive advantages, we are now able to differentiate the products from other competitors, which consequently our products can sell themselves in the market.
Well, that's so correct in terms of principle. Can you please give me examples, eithier fictitious or real ones, that convince me you can really adapt the product to the theories you have mentioned
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ReplyDeleteIn order to compete in the oligopolistic market of the dish washing liquid, it is important to have creative advantage and differentiate ourselves from competitors. We can differentiate ourselves by studying our consumers and learn about what they want, their problems, interest and trends. We also should study our competitors and find out about their products and what did they not offer to consumers. From these we can come up with something different and new.
ReplyDeleteRight now most of the dish washing liquid are similar in scents, formulas, and core benefits. Now there are lots of smart buyers who are concerned with product safety, to both the environment and themselves. We can come up with formulas that are environmental friendly and user friendly. We could come up with dish washing liquids that are not harmful to users, environment and living things with the use of ingredients that are extracted from natural sources. The washing liquid will not irritate the users’ skin and safe enough that it can be used with baby products and clean dining table. To make dish washing a little less boring we could also offer consumers with different colors and scents such as passion fruits, grape fruits, lemon grass etc. Having these washing liquid come in pumps and refill would also make it easier for consumers to use, reduce trash, and the refill would we priced lower than buying a new bottle. Our creative value proposition would be safety and multipurpose dish washing liquid.
Nicha 5380020
Despite the situation of the market, it is clear that the market is going towards the price war. Since dish washing liquid could almost be considered to be a generic product where consumers do not really see the difference within it. It is the producers who have to stress the benefits received form each brand. Thus, to be able to compete within the current market and to sustain you own position, it would be wise if the brand is able to differentiate itself. Furthermore, to differentiate itself from all brands which are current available in the market would be a challenge. However, it should be mentioned that, the current leaders of the brand is considered to be leading the market is basically due to the years it have been on market. Which could also imply the familiarity of the products consumers have. Thus, to be able to let consumers to be able to familiarized with new products, the value and benefits would be critical to be able to sustain within the market. Moreover, due to the rise of the health concerns of consumers, new products may focus on the health concerns and user friendly point to capture users. Although by stressing the mentioned benefits would imply a rise in cost, but to be able to attract an amount of users, it would be able to reach economy of scale and eventually be able to minimize costs. Thus, to conclude, the value proposition is to focus on benefits such as user and environmental friendly quality dish washing liquid.
ReplyDeleteYi-Pin 5380002
According to the article, it mainly talks about the market share, company proposition, and the current situation of dish washing liquid industry. The biggest leader of dish washing liquid is “Sunlight” who owns 65% while “Lipon F” owns 10% of market share. However, 25% of market share belongs to some local brands such as “Big C” and “Macro”. The reason why Sunlight owns the highest market share is probably because its proposition - “to create scents and the ability of liquid which can eliminate fishy order and disinfect the dish and the sponge as well as the brand legend and long term trust from the market worldwide” (Satisfaction and Globalizing). The process of making dish washing liquid, furthermore, does not require complexity and any special techniques. Also, the benefits and the attributes of dish washing liquid are nothing much but the ability to remove the dirt, be found in yellow or green packages, and favor scent in addition. Therefore, it is not that difficult for the new company to enter this dish washing liquid industry. For the new company, the specified target market that has high demand in the product should be set clearly. The trend and the consumer behaviors of using dish washing liquid should be considered as well since customers are the final users, if they satisfy with the product, it can create awareness and repurchase in step. The trend is usually changeable and has impacts to the users and it can affect the company sale. The company should find the proper proposition that matches the product, satisfies the potential buyer demand, and creates values to the brand, which lastly can link to profit maximization. Nowadays, a quality product with low cost or an environmental friendly product can gap attention of the users; thereby the company should analyze the company, the competitor, the customer, and the situation including marketing strategy and plan to make sure if the company has follow the right track and it is worth enough to make an investment.
ReplyDeletePunyawee 5380036
Can you please give me a concrete example of your product?
DeleteAccording to the articles, major brands have thier own features to compete each other by promoting their products through different communication tools. They know such way to attract consumers to buy them, but the concern is that the product is mass product so it is hard to have royal consumers because rivalry is stronger in markets where buyer demand is growing slowly and the products of rival sellers become more alike, so users cannot differentiate the products.
ReplyDeleteIf I am another firm who want to enter this market, I will have to analyze not only customers side, but I will have to analyze the competitors what they have and what they lack. Mostly all of them focusing on cleanliness and get rid of all kinds of grease and fishy odors. Therefore, only sales promotion to boost up the sales is not enough because it is short-term stimulation. As a result, to capture target market in long-term, the firm should come up with competitive strategy that right and suit to customers. I would differentiate the product to respond to the need of target market who are women or housewives. To wash dishes, users' hand must be touched with chemical directly, so their hands might not be soft and smooth as the same. As a result, I would develop liquid washing that can solve this problem and can make their hands more soft when using my liquid washing. However, before promote this product, development team has to make sure that the dish washing liquid is really work so that the firm can attract new consumers and maintain them as brand royalty. Furthermore, I will also emphasis on the TV advertising to trigger target audience to be aware the problem stated above from using chemical dish washing liquid that they might ignore and might not know. This can be appeal to target market.
Rutsee 5280544
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ReplyDeleteNowadays, the three major brands are dominating the liquid dish washing. All of them cover around 75 percent of market share which is quite a big field. In order to deal with this competition, there are some of the strategies that can be apply to this situation.
ReplyDeleteFirstly, we can use the price penetration in order to gain the market share. At the very first time, our company might make loss because of setting the initial lower price. However, when our brand is becoming familiar by customers, at that time, we can increase the price slowly.
Secondly, we can use the customization strategy. In other words, we are talking about focusing on service. Our company is planning to send the liquid dish washer to the ordered place. Yes, we are focusing more on restuarant, hotel, and some of the big firms. The cons of using customization might be that company might lose some revenue received from direct consumers. However, we can still enjoy the profit from selling a big lot.
Settapong 5380354
DeleteAccording to the article, in my opinion, I think each major brand is having their own value proposition to represent their products and using those propositions to compete with the competitors. However, there is also the local brand that takes some market share from them. Personally, I think there is a trend of using herb. If we are considering the cost, by using herb may be cheaper and harmless than chemicle, but the three major brands, they have economy of scale. Moreover, with the characteristic of the products which is the dishwashing liquid. It is hard to diffirentiate. What we can do is to cut the price in order to be in the market. Furthermore, since Sunlight has been in the market for a long time, Its brand is widely known amoung customers, and they use it from generation to generation. Even they are using other brands, but they still call it "Sunlight". See! Some customers are misunderstanding about the brand. Therefore, in order to enter this market, I would compete with the price rather than promote the formulas because customers are not aware of them. Moreover, to compete with the price in the market, so I can catch up the customers that has less purchasing power. And, promoting the advantage of the herb that soft and harmless to hand. To do this, cusmoters can be able to awear the benefit and safety that they would get.
ReplyDeleteChalisa 5280418
According to the article, I think this market should not be enter at first because there are major brands that consumers become their loyalty already and it is very hard to create the awareness for this dish washing liquid industry. However, to create a value proposition for dish washing liquid industry, the company that can fight with exist company in the industry should have some reputation before even the reputation is not in dish washing liquid industry. for example, if the company is famous in cleansing toilet liquid industry. it might can extend their product line into dish washing liquid. therefore, consumers will believe that your dish washing liquid have the same quality as others in your product line. If your company does not have any reputation in anything. the company must create some special thing about dish washing liquid that become the standout point for the product. for example, your dish washing liquid may made from natural ingredients without any chemical stuff. therefore, this can help consumers to feel comfortable with the product that even they may not rinse washing liquid out all, but it still safety because of natural product.
ReplyDeletePassavee Sakesuwan 5380038
According to the article, Sunlight use scents and the ability of the liquid to eliminate fishy order and disinfect both the dish and the sponge as well as the brand legend and long-term trust it from the market worldwide. Teepol stress on the non residual quality for those who concerned with health (in fact all dish washing liquid brands are required by law to use edible chemical substances), and Lipon F stresses on the concentrated formula that can effectively get rid of all kinds of grease and fishy odors. And these formulas are easy to copy. Therefore, it means that they compete in advertising and the benefits of the dish washing liquid.
ReplyDeleteIn order to escape from the oligopolistic competition, we need to make our products the same ability to clean to dishes but in cheaper price and sell it in rural areas because people in rural areas just want cheap price, and also there seem to be bigger market than Bangkok. In order to lower the cost, you should produce in Chaina, but you should make sure that your product will be in controlled quality. And if you want to lower the marketing cost, you should make it world of mouse by giving opportunity for customers to try your products by giving it as a trial or reward. Therefore, doing this you may gain marketshare when your products is in the market.
If this not work, just do anything to destroy the brand image of the dominant brands.
Ariya Thanasiripong 5280155
Since existing major dish washing liquid brands are having 75% of market share, this is very hard and risky challenge for new comer to be one of the chosen brands. Thus, if I want to enter this market, I have to create a “distinctive product attributes” in order to gain a “strong brand”.
ReplyDeleteAccording to the article, each major brand has each unique attribute; for example, Sunlight and Lipon F has its uniqueness in term of scent ability to eliminate fishy odor, Teepol focuses on safe substance, and local dish washing like OTOP concerns on environment by using herbs.
To escape away from oligopolistic competitions, product itself should be remarkably different. To avoid any risks or flaws, I will add a distinctive attribute of each existing brand to my product. However, it is noticeable that none of them states on “clean”; it is true that all existing brands make dishes clean, but NOT totally clean. My dish washing liquid will mainly focus on clean since I believe that the function of dish washing liquid is to wash dishes cleanest. Meanwhile, I will change the product to a form of foam instead of liquid, soap bar, or ball because foam helps washing cleaner, easier, and softer to hand of users.
Still, I am also going to focus on price since the behavior of this market customers tend to be price-sensitive along with other strategies in order to be a strong brand and gain market share in the future.
5280765 Suwisa Wattanasin
in order to enter to this challenge market dur to the strong brand awreness and also for brand recall for tor the dominant firms as long as the clear cut attrubutes of the products that each brand usually offer to the market, it is too much difficult and also taking long time to think new product attribute to make the product differntiate to the dominant, so i think it no need to do that at the pharase that you going to enter the market. i mainly propose two main strategies to enter the market and the way to survie as the fringe firm.
ReplyDeletethe first strategy that help to enter the market is STP, it sound simple but this the key to help the firm know which is the most potential customer based that the firm should focus or the which market that the domonant frims have less potentail on it. later on, after know which cutomers base that fimr should focus on, the make a good research on consumer behaviors in detail in order to find the most weakness of the products that offered by each dominant fimrs are and also the most preferble that these cutomers want from dish washing liquid and try to seve it and promote by using that point. after all, firm need to focus only this small target at the begining in order to make fixed and also entry cost need to be cover and then try to start on R&D that will help in the long terms as well.
the second strategy is that cartel with aonother fringe frims in the market that will make all frims can fight with dominant frims and also gain some customers based and cover the cost as well.
Thinnakorn Jareeyatana 5280337
According from the case of "Dish washing case", I believe oligopoly will only happen when the monopoly firm did not do a good job on their financial and marketing strategy, that's why it allows both direct and indirect competitors to enter the market and compete with them. Of course the worst case would be price war, this would be customer's favorite but producer's nightmare.
ReplyDeleteIn order for local brands earning 25% of market share to grow even bigger to go up against the big brands like sunlight and lipon F, local brands can of course continue on using price advantage to attract more and more customers by using its competitors indirect marketing advertising effect. The reason why I said its indirect marketing advertising effect, this is due sometimes the dominant firms make big mistakes by comparing themselves to the lower brand image products to gain their monopoly power back, but the draw back was this action might even help the lower local brands got promoted to more people, therefore, more people would recognize this brand without themselves putting any advertising fee. Moreover, since the trend is that there are more and more people getting price sensitive, if the local brands can continue to keep the gap with the dominant competitors at around 30% to 40% price lower, also continue to remain its quality or even improve. I believe in long run local brands would win the market share more and more as time goes by.
Wei-min Lin 5180682
It is too difficult to enter the market that has such a great dominant like sunlight. Sunlight has highest market share of 65%, moreover it has been in the market for long time and gained first mover advantage. The market environment is also very competitive in term price which will have strongly negative impact to the new entrant. New entrant will suffer from this competition.
ReplyDeleteNew entrant should consider to go for niche market or differentiate the product by developing dish washing liquid for special purposes. For example,dish washing liquid for kid's utensil, or dish washing liquid that use with dishwasher. Although dishwasher machine has very little numbers of users, the company could gained first mover advantage and establish strong brand equity. One advantage of this strategy is that company does not have to compete in cutting price. Consumers are more likely to perceive higher value of specific-use products over generic products. However, to sell the product well, company have to create great commitment and trust to customers.
Another strategy is to develop more women friendly package. Most dish washing liquid seller has almost identical package color and theme, which i believe it does not design well enough to attract women customers who considers to be the major purchaser of dish washing liquid. However, the negative impact of this strategy is that consumers might not be familiar with the new look. So, company might have to invest more money in advertising and pay extra money to get great product display position at outlets.
Krit Vanichsangsopon 5380151
According to the article, in my opinion, this industry is not attractive to enter as there are low entry barriers due to the low cost of production and the product itself that no need of any technology in production or improvement also resulting in a high competition. Moreover, the industry is the oligopolistic competition that already have the major leading brands which gain the majority of market share and also have a strong brand name that make difficulties to other brand to compete. However, if the company wants to successfully enter to this industry, it needs to create the value proposition to both company brand name and also the product itself. For the consumers, we must seek for the unmet need of them through this product that other brands have not met yet. However, the major leading brand such as Sunlight already capture almost the whole market, so I recommend the company to concern on starting with the niche market that has no or few brands serve for such as women who concern on their skin. Moreover, due to the industry that hard to differentiate through the price or place, the company needs to focus on the product and promotion strategy differentiate itself from other brands. For the product, the company must find the unique characteristics that different from others to communicate and emphasize to consumers in order to create awareness and strong brand name to product. For example, dish washing that is not irritate to your skin and also help to maintain your nails and skin.
ReplyDeleteTo sum up, I recommend company to create strong brand position and image through the unique characteristics of product and communicate this to consumer in order to enhance their interesting and create brand awareness. Moreover, it should start with the niche market to avoid the high competition to both leading brands and other local brands.
Nuttakorn Pattaratreranond 5280896
According to the article, This industrial is not quite attractive to enter and it will be a big challenge for the new firm to enter into this oligopolistic competition industry. As all the firms in this market produce a very similar product but there is only two dominants that eat almost 75% of the market. The reason behind this is because the long run reputation. It is also hard for the new entrance to compete with the existing firm in term of cost because the existing firm should gain EOS and good relationship with suppliers. Therefore we should plan the strategy on the product not the production process. First strategy is to create the brand's competitive advantages such as the dishwasher that has 100% natural ingredient. Nowadays, people are more educated, so they are concern about their health, so they will consume the product that concern about health-oriented. The second strategy is to spend the money on advertising activities that can gain high market coverage. The faster we can put the product into the customers' mind the more revenue we can generate
ReplyDeleteChavit Tirarattanakul 5280870
Considering the current market of dish washing liquid where there are three existing brand, Sunlight, Teepol and Lipon F, competing in price war. Each brand have there strong point, Sunlight having the ability to get rid to fishy odor while disinfect both the dish and the sponge, Teepol focuses on the health conscious consumer by emphasizing on non residual quality and Lipon F having the ability to eliminate all kinds of greasy and fishy odor through it concentrated formula. To be able to successfully enter this market, a competitive strategy need to be crafted in order to produces a competitive edge over rival. Since dish washing is consider as consumer goods, where product is almost identical and common, heavy marketing plays a big role. One of the strategies is to use a competitive weapons like advertising on TV or radio by using jingle or through a distinguish packaging so that consumers will be able to recall and remember our brand name and product. Current packaging of dish washing liquid is quite dull, having same shape and color, therefore, a out of the box packaging can help boost buyer demand and increase the product differentiation and value. Example of unique packaging can be done to the bottle are pump bottle with a sponge holder or a bottle with a hanger.
ReplyDeleteLaksina Prompan 5280096
Due to the situation that occurred in the article, we can see that there is the obvious oligopolistic competition in “dish washing liquid “market. The main brand such as Sunlight and Lipon F are now suffered to the price competition from the house brand and local brand. If I want to play role and take some market share in this field of business, my brand must have the creative value which different from other brand. Now, we can see that big brand such as Sunlight has only 75% market share which is not so much at all if they want to the best. Thus, to compete in this market, our brand which is new needs to create brand awareness and brand recognition which is the very important point. We might spend money on advertisement, create own and unique attribute and formulas, and differentiate the packaging itself.
ReplyDeleteOther brands have their unique feature such as Sunlight create scent and ability to eliminate fishy order, Teepol has non residual quality, Lipon F will get rid of grease and fishy order, and Local brand use herb. We might change form of liquid into the foam to make it easier to clean and concern about effect on human skin because of chemical material. Also, advertising on TV is the way to make our brand become knowledgeable and recall by consumer. We might put some unique Jingle song with 3 musical notes at the end of advertisement. The last factor is the distinctive packaging. We need to develop packaging to make it clearly appear in consumer eyes when they buy. The form of package might look different because it can stick on the wall or has the handle. May be, we might put the 2 scents and formulas in one package in case of consumer boring the scent.
I believe that these creative value can make our new brand play role in this field.
5280850 Tanakorn Toonkumthornchai
Interesting! do you think your competitors will follow you? how can you prevent them to?
DeleteIn order to enter this dish washing liquid industry and escape away from oligopolistic competition, the new product that would be launched should aim at capturing niche market.
ReplyDeleteTrends on health conscious consumption and environmentally friendly products is what the company should bare in mind. Consumers are also looking for mutable benefits in one product. The product should not only offer consumer with basic benefits of diminishing the odor and cleanliness of dishes after product use, but should also focus on users with sensitive skin and is environmentally friendly. With technology, the company should be able to come up with a formula that offers multipurpose cleaning liquid to increase product benefit such as cleaning windows and kitchen counter tops.
As the players in the industry are engaged in price competition, the company should break away by capturing niche market with benefits offered. Variety of fruity scents should be offered in modern packaging that is easy to open and close e.g. a pump with lock cap. Tips on using product with multipurpose should be produced. The Marketing strategy should focus on penetrating individuals that are home keeper with relatively high income.The products should be available at high end stores.
Furthermore, the product should come with a complementary product that emphasize the young theme as. Thai society tend to prefer cuteness e.g. Washing sponge with flower shape, bear shape leaf shape that could be used for purpose of cleaning difficult spots at the same time. This is to enhance POP decisions.
Sakotkarn Thanadsornsarn 5380242
We can see from this article that the market is difficult to enter, but we can also see that the benefits given by each product are similar so it seems to be down to brand value and the equity of the brand names that keeps the current companies in control of the market.
ReplyDeleteOne option that maybe be viable is competing in a niche market such as students or younger people by using a more up to date attractive marketing scheme targeting a specific group of people.
Another option, possibly more difficult would be to differentiate by product, for example environmentally friendly as this seems to be popular with consumers currently another example could be hypoallergenic as this could be popular with consumers as it may differentiate from the current products. I feel that it may be too difficult to differentiate by price as this would require economies of scale which may be difficult for newer smaller companies.
James Hammond 5280469
The industry is already high competitive for those existed players. For example, Sunlight have many different products such gel form instead of liquid and also strawberry scents added but consumers do not interested in them yet since the purpose of the products is used to clean dishes and to reduce oily and fishy left-over. Moreover, those products also are improved to maximum ability such as only a drop and clean up to high amount of the dishes. Therefore, if you want to participate in the industry, i would suggest to carefully focus on the addition eco-friendly and health care substance such as prevent the hand dryness as well as the function for clean vegetables in lower and reasonable price. However, Lipon F also got a good reputation about this already. Thus, to enter in the industry, u should segment them because people who purchase high amount of these products are used in the restaurants, compare to households used is totally different. Then you can define the value and the need of consumers better. I also suggest that you should start with households used and make its extremely convenient to buy as much as possible along with increase the awareness of users with POP will not enough. I think the price difference is essential and you should carefully define the right price strategy to the right users.
ReplyDeleteUchukorn N. 5180656
In fact, thinking of entering into this business is not different from committed suicide because the two giant players in this market already gain market share for 75% already. However, i still believe that in the the business world nothing lasts forever. The one who is going to enter to this industry should admit that there are very few ways to escape from this oligopolistic competition. One major interesting option i believe many people are trying to do is to differentiate themselves from Sunlight and Lipon F. For my opinion, i have noticed that almost every manufacturer of dish washing liquid produces the gel liquid in very similar colors and quite boring, such as yellow, or in clear color. What i want to represent to the customers in the new perspective is that i want to add more fun and pleasant atmosphere and perspective in doing dishes by producing very unique scents, colors, and texture of the liquid. Chocolate, vanilla, or mint scents will be the examples that i want the customers to experience them in the new perspective of doing dishes. To do this, I have to target the customer segment mainly in the household, in other word, B2C because in B2B they are not going to care about the pleasure in washing the dishes. On the other hand, washing is also something that no one would love to do, so i think by adding new styles of dish washing liquid may encourage some housewives to enjoy more washing dishes. When changing the character of the liquid gel, we certainly have to change the packaging into totally new design. Not to stick with the same old traditional pattern like yellow and green in which almost every brand did. Unique and fresh new design of dish washing liquid is needed.
ReplyDeleteStill, as the new entrant, heavy marketing programs are extremely important in order to create the brand awareness to consumers to aware of our product first. Advertisement in TVC would be the most interesting option if you have enough advertising budget because it can provide a large coverage to
the audiences in countrywide scale. Below-the-line marketing is also needed to be considered in the new marketing method. the debut of new launching product or event marketing seems to be interesting to many consumers. Plus, hiring the celebrity who their characteristic related to product also help influence the product, for instance, the celebrity who already married and have family can give an image of modern housewife.
Thanawat Lumveerakul 5280542
According to the article, the Major brands have their own strategy to communicate to customer through media such as advertisement on television and radio. Therefore, this industry is similar in the purpose of cleanliness for washing dishes. This same purpose make the difficulty for other new brands to enter in this market.
ReplyDeleteIn my opinion, If I am the new company who want to enter in this market, I will looking for the outside in and the SWOT strategy, For the outside in, I will look for the needs and want of the customers to satisfy their needs. Moreover, I will searching for the strength and weakness of the competitors to develop our strategy and product to serve the best product for the customers. In the way that I will change and develop to be unique than other brands is that I will change the liquid to be good for the human skin which will not affect to the human skin, and I will add more value to the liquid as a scent in to different scent for customer to choose. For example, the scent of flower, vanilla, and etc. to be the strength of the company. Furthermore, the price is competitve to others too, so people will see the more value but in the same price, so we can capture these customers.
In conclusion, these strategy will be effective to company to gain attraction more from the custmers.
if a new company wants to enter this market, they will have to be able to understand the needs and the wants of the customers. then they have to try their best to create products at a reasonable price to satisfy the needs of the customers, they will be able to build a string brand image and have a strong position in the market.
ReplyDeleteFrom my experience and some of my other marketing classes I have learned that in order to really create your own positioning, you can create choose to use Differentiation or be a Lost cost provider. Since the market seems to having an oligopoly, we are not in the situation to understand the prices they are charging, but seems like maybe its going to a price war since there arent many varieties to vary your products on, except smell and feel. But I believe creativity is something that can lure the customers to buy things that might not even otherwise make them. And ofcourse we would need to know the depth of this market's product varieties, but I see only a few types of varieties. I had a look at the Walmart's stores in The United States. The amount of varieties they had of Cerials, it was unbelievable. We the new company could be known for many varieties, maybe altering the products by the type of food the households cook. One for fish, One for Chicken, One for soup? Also Thai's dont cook that often, it would be interesting to try to use push marketing to try to give them ideas and benefits of cooking, and ofcouse eventually make them use our brands
ReplyDelete5180008 Navneet Agarwal
DeleteWhat If I want to try DIY (do it yourself) washing liquid that we provide everything for our customers to create their own washing liquid. As in hotels, restaurants or pubs are heavy use on dish and glass washing for their operation and we could offer them this DIY formula that enable them to reduce washing cost with eco-friendly ingredients. At the same time this product will let customers to have fun with experimenting own scents and attributes of the dishwashing liquid. However, we must do some research about the formula and able to create an easy understanding small booklet for customers to study and able to implement it with their purpose.
ReplyDeleteHowever, we also have our own small packaged formulas that could target in the household that are looking for eco-friendly, different form of washing liquid ( in powder perhaps ) So this would allow customers to experiment with DIY little work for mixing powder with water and scent they desire.
Uchukorn Nala 5180656
According to the article, the market is hard to enter, the stands of feel or smell or ingredients are already taken and reducing price would just ending up with price war which is somehow already started by home based brands.
ReplyDeleteThe new creative proposition that I thought of is to just trying to change the focus entirely, since all of the stand taken by these brands are too much focus on what is traditional and convention properties that dish washer are suppose to have.
Firstly, we could shift consumer perception and try to point out the harmful effect that chemical in dish washers could harm their skins which would allow them to know that if a dishwasher is so concentrated that It entirely remove all stench and stain with ease, it means more chemical are there and more harms are there. So therefore, we could do some research on how to make skin friendly or even skin enriching type of dishwasher by basing it with ingredients that are appropriate. The philosophy behind this idea is not the properties, but the focus on perceptions.
Secondly, either we could ignore the above proposal entirely and focus on dish washer that mainly targeting stain and ease. From personal experience, I find it very annoying to try to scratch off the stain from a pot for minutes without much progress, and considering what if a weak lady with small hands doing it. We could target these kind of heavy duty to differentiate ourselves at all.
Sawang 5280815
As mentioned, there are limitation in term of improving quality due to nature of the products. Therefore, what customers think of the products is important, so they compete a lot in advertising and trying to different themselves among the competitors. When firms provides similar products, customers tend to be more sensitive to the price and quantity. I think rather than adding blah blah blah... Into the products, the firm should focus on minimizing their costs in order to gain more margin. As well, spend more on marketing or increase market coverage to gain more customer base. The products can be sold in different size of packages respected to the need of customers targeted in each area. For instance, in countryside, more bulk breaking products are reasonable. Divide products into level of chemical intensity may also benefitial. This help respond different perference in customers as well.
ReplyDeleteVatcharivat i. 5080473