Submitted by: Submitted by Tullq
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Category: Business and Industry
Date Submitted: 12/01/2011 02:54 PM
ECOVER CASE STUDY
Question: Identify the key marketing issues (i.e., company weaknesses and the main opportunities/threats for the company) met by Ecover.
According the case study data, it can be analyzed with some marketing issues in the details below:
1. Operating results:
Strengths:
* Increasing sales by four times from BEF 50m in 1985 to BEF 200m in 1990).
* Ecover occupied approximately 70% of detergents sold via health food stores in UK, Netherlands and Belgium.
* Ecover dish washing liquid represented 40% of Ecover’s turnover.
Weakness:
* The retail price was four times the ex-factory price.
* Market share in France, Switzerland, Germany and Austria was low compared to Belgium, Netherland and UK.
* Ecover did not succeed in term of shelf space in the supermarkets.
* Ecover was terribly undercapitalized.
2. Strategic analysis:
Strengths:
* The initial period they concentrated on the specialty stores.
* Re-filling tanks in health food stores helped clients to save money and shop better profit margin.
* Ecover offered a variety of productions in supermarkets to get four times margin than the traditional detergents.
* Free booklets explaining the competitive advantage were distributed.
* The eco-label was the key competitive advantage.
* Marketing team was successful in making customers loyal to Ecover.
* By 1992, Ecover was sold through 15000 stores worldwide.
Weakness:
* Ecover did not research carefully about the promotional offers and couponing customer (ex: US market)
* Only 1% consumers were aware of Ecover productions.
* Trying to executive the existing major segment.
* Lack of distributor support
* Price of detergent was 20-30% higher than traditional detergents.
* Lack of advertising and promotion.
* Aggressive competitors with better price, brand and market share.
3. Social and Market effects:
Opportunities:
* Banned on environment...