Ecover

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...