trash bag

Ad-lider Embalagens, SA:Marketing Research for

Drawstring Trash Bags in Brazil

CASE 3

Presentation on

Group E

Group Members:• Nadim Hamid 063 399 530• Sadia• Nazmus• Ambrin• Shojib

BACKGROUND

BACKGROUND

Why they did the market research one more time and the reason behind this

• Lazlo was convinced that a successful launch of the Fecha Facil was of extreme importance. He believed that the current Ad-lider product mix would not bring satisfactory profits in the long term. He felt that Ad-lider needed to launch a new product that was different, modern, and offered the market amore favorable cost/benefit relationship than products currently on the market.

Brazil’s Population and Segmentation in different areas:• The country is divided into 24 states, two territories, and a federal district. Of

Brazil’s 170 million population, almost 43% or 72 million, live in the Southeast. Brazil’s three largest metropolitan areas are all in the Southeast: Sao Paulo (20.2 million), Rio de Janeiro (12.15 million), and Belo Horizonte (5.3 million). Brazil is one the world’s largest countries, covering an area of 8.5 million square kilometers

BACKGROUND cont…

Economic stabilization of Brazil: After a long period of high inflation and economic stagnation, In the mid-1990s,

the successful Brazilian economic stabilization plan, known as Plano Real, restored the purchasing power of the low income segment of the population.

The Brazilian Market Research Association makes social classification:

ABIPEME, developed a social class classification that was widely adopted by local researchers, marketers, and advertising agencies. As a result, during the second half of the 1990s, numerous segments of the economy, including several product categories, underwent fantastic sales growth.

BACKGROUND cont…

Different classes and their consumption level The scheme combined income, education, and material possessions to

define five social classes—A, B, C, D, and E. Classes A and B members possessed the highest levels of income, education, and purchasing power, and tended to be more sophisticated consumers.

Ad-lider Embalagens, SA and its establishment

and place Ad-Lider Embalagens, SA was founded in 1970. The company, headquartered in

the town of Tres Rios, Rio de Janeiro is one of Brazil’s largest manufacturers of plastic bags and packaging. A commercial Office is located in the city of Rio de Janeiro.

BACKGROUND cont…

Distribution and selling processThe firm sells direct to large accounts and uses 43 specialized distributors to cover

other accounts throughout Brazil. Sales by region vary greatly: the Southeast accounts for 50% of sales while the North and Northeast combined account for an additional 25%; the Central-West and South account for 12% and 10% respectively.

The company had three divisions: commercial products, industrial products, and consumer products.

The commercial division: The consumer division: The industrial division:

BACKGROUND cont…

The industrial division:which accounted for 52% of company income in 1998, had two primarylines, AD-ROLL and AD-SHOP. The AD-ROLL line consisted of plastic bags for produce

and meat departments

The consumer division: • SACOS REFORCADOS AD-LIDER • , FREEZER• Limp-OLixo

The commercial division:It had three product lines

BACKGROUND cont…

There were three national brands of garbage bag rolls:

• Limp-o-Lixo• Dover Roll• and Koleta. Market Research—Focus Groups. The focus groups were conducted on November 24–25, 1999, in the cities of Rio de

Janeiro and Sao Paulo. A total of three focus groups were conducted, two in Sao Paulo and one in Rio de Janeiro

Objective of the research of group: The objective of the research was to evaluate the acceptance of the new Easy Close

garbage bag, to learn about packaging preferences, and to determine how the easy close (draw string) feature was perceived by garbage bag purchasers.

MAIN ISSUE

In growing competition of trash bag business in Brazil, it is a challenge for Ad-Lider to focus on more on employee development rather then focusing only

on new product introduction, with solving HR issues and how to balance demand and supply?

MAIN ISSUE

SWOT ANALYSIS

SWOT ANALYSIS

• SWOT: Strength, Weakness, Opportunities and Threat.

• The latest and the full version of SWOT analysis require the following:

Extended SWOT. Narrow SWOT.

EXTENDED

NARROW

Complet SWOT

ENVIRONMENT

INTERNAL

STRENGTHS

WEAKNESSES

EXTERNAL

OPPORTUNITIES

THREATS

SWOT ANALYSIS

STRENGTHS (EXTENDED):

• One of Market Leader in plastic bag market.

• Research Result.• Location.

SWOT ANALYSIS

STRENGTHS (NARROW):• The company controls Ad-lider Transportation, a

trucking firm that’s distributes its product. So, it saves a lot of extra costs for Ad-lider.

• The firm sells direct to large accounts and uses 43 specialized distributors to cover the whole country.

• The closing of the bag a is a strength for the product.

• The majority of the plastic bags in the market were simple and weak. So, the Fecha Facil with its improved quality and outlook has a better stand against its competitors.

SWOT ANALYSIS

WEAKNESSES (EXTENDED):

• Interview with the small segmented people.

• Less awareness.• Super market bag.• Preference of local market bag.

SWOT ANALYSIS

WEAKNESSES (NARROW):

• Some housewives were loyal to some other brands.

• Low durability of blue bag.

SWOT ANALYSIS

OPPORTUNITIES (EXTENDED):

• Huge Opportunity of expanding Business.• Huge investment of 1 million dollar. • Availability. • Intense Promotion.

SWOT ANALYSIS

OPPORTUNITIES (NARROW):• The three major national brands were sold directly to

the largest supermarket chain. Wholesalers and distributors were used to distribute the product to smaller supermarkets, convenience stores, and other small retailers such as meat markets and fruit stands. So, if Ad-lider can make a good communication with its distribution channel, definitely it will be a win-win situation for both the parties.

• Women are more rational in buying things. Here, in some cases male controls the purchase decision. But, majority of the cases its different and as they take decisions with rationality so it increases our opportunity of higher sales.

SWOT ANALYSIS

THREATS (EXTENDED):

• Strong Competition in the market.• Own brand of Chain shop.

SWOT ANALYSIS

THREATS (NARROW):

• Competitor’s intention is a threat for them. As we are living in the open market era, so whatever Ad-lider do to boost its business other competitor can immediately copy that and with proper implementation they could have a winning edge over Ad-lider.

HR ISSUES

HR ISSUES

NO HUMAN RESOURCE DEPARTMENT AVAILABLE

Regarding this case Drawstring Trash bag in Brazil it does not have any dynamic human resource department. We know that Human resource department is responsible Human-Resource Management. It serves 5 key functions.

They are:

•Hiring •Compensation •Evaluation and Management (of Performance)•Promotions•Managing Relations.

HR ISSUES cont..

MORE EFFICIENCY CAN ACHIEVE A COMPANY THROUGH PROPER TRAINING PROGRAM FOR THE WORKERS

The company should also implement training program for the workers regardingthe labor union because the employee should also need to have the awareness about the laws which is for them. In the company the workers have to train with the company policies as well as the labor union laws for making them aware about what they should do regarding their problems and how to solve it.

HR ISSUES cont…

TO ATTRACTING, RETAINING AND MOTIVATE WORKERS BETTER COMPENSATION PROGRAM IS NEEDED

Generally the manufacture-based companies are totally focused on the quality of product, marinating good relationships with the customer and doing the right job on the right place and in a proper way.

They seldom focus on mechanism on retaining the workers

HR ISSUES cont…

AD-LIDER PACKAGING DOES NOT HAVE ANY PROPER TRAINING AND DEVELOPMENT PROGRAM FOR THEIR EMPLOYEES

It is seen in the case that Ad-Lider are trying hard to find the feasible customer response of their new product, but they are not yet into training their employeesSo that they develop ion the skills of doing surveys.

TO MAKE AD - LIDER MORE PROFITABLE GOOD COMMUNICATION PROCESS IS NEEDED

The communication process should be given such importance that the topmanagement gets information and they give important feedback to the employees.The workers should be trained the communication process of the company.

HR ISSUES cont…

GOOD RELATIONSHIP BETWEEN TOP MANAGEMENT AND EMPLOYEE MAY INCREASE PRODUCTIVITY AND CREATE BETTER JOB ENVIRONMENT

Ad- Lider does not maintain any employee top management relationship. We know that Labor relations managers and their staffs implement industrial labor relations programs.

AD- LIDER DOES NOT MAINTAIN PROPER PERFORMANCE APPRAISAL SYSTEM WHICH CAN INCREASE EFFICIENCY OF THE EMLPOYEES

A tough competition is seen in the Trash bag business in Brazil. Therefore employees and workers in the field and in the factory needs to be always on toe. But no information regarding performance appraisal is focused in Ad-Lider.

HR PLANNING

HR PLANNING cont…

Forecasting Demand for Employees: Considerations

• Product/Service Demand• purchasing power of the Brazilian people, consumption of those

people increases which increase the demand for the plastic bags or trash bags.

• Economy:• experiencing high inflation and economic stagnation Brazil is now

experiencing economic stabilization restore the purchasing power, and even the lower income people.

• Technology: • Technology refers to human innovation in action that involves the

generation of knowledge and processes to develop systems that solve problems and extend human capabilities

HR PLANNING cont…

Financial Resources: Ad-Lider Embalagens has invested one million dollars for the new. production

machine

Absenteeism/Turnover: Turnover simply refers to the movement of employees out of an organization , Absenteeism refers to the absence of employees from their work often due to illegitimate habit, or sometimes, because of sickness, accidents

Organizational GrowthNew Product Development. Ad-Lider Embalagens has taken

Management PhilosophyThe mission and vision of an organization and how it treats employees and belief of how the process of working with and through others should be designed to achieve Organizational objectives

HR PLANNING cont…

Forecasting Demand for Employees: TechniquesTrend AnalysisIs a quantitative approach to study of previous trends in the market and using them to predict future trends

Management Estimatesis no direct information about the management estimates of the organizations future needs. But from the whole case and overall situation we can easily identify that there will be huge demand for the new employees

Delphi Techniquequalitative method to forecasting that attempts to decrease the subjectivity of the forecasts by soliciting and summarizing the judgments

HR PLANNING cont…

Forecasting Supply for Employees: External Considerations

Demographic Changes: housewives living in apartments and houses in Sao Paulo and others are housewives living in apartments in Rio de Janeiro.Education of WorkforceEducation of Workforce refers to the level of academic skill employees currently possess obtained from academic institutions recognized as schools, colleges, or universities

HR PLANNING cont…

Labor Mobility: Labor mobility refers to the freedom of workers to practice their occupation wherever opportunities exist.Government Policies: effective government policy during the time of downturn can help a country to come out of a stagnation and high inflationary periodUnemployment Rate: Unemployment Rate refers to the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

HR PLANNING cont…

Forecasting Supply for Employees: Techniques

Staffing Tables: Staffing Table is the graphic representations of all

organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements.

Markov Analysis: Markov Analysis is a method for tracking the pattern of

employee movements through various jobs

HR PLANNING cont…

Skills Inventories: Skill Inventories refers to the files of personnel education, experience,

interests, skills, etc. that allow managers to quickly match job openings

with employee backgrounds.Management Inventories: Management Inventories are the files where the content of skills

inventories is gathered based on the managers to employ right people at the right place

Replacement Charts: Replacement Charts refers to listings of current jobholders and persons

who are potential replacements if an opening occurs.

Succession Planning: Succession Planning refers to the process of identifying, developing,

and tracking key individuals for executive positions

HR PLANNING cont…

BALANCING SUPPLY AND DEMAND::• Increase the number of products line in the

company. Its previous product line like Limp-o-Lixo is going very well in the market.

• No need for the company to go for layoff decision

• Ad-Leder should go for the Recruitment of efficient and skilled people ( Internal / External )

• Identify "critical talent“( Internally )

HR PLANNING cont…

Externally • Recruit technical expertise on contractual

basis• Recruit workers for the production process• Recruit salespeople on full-time basis

RECOMMENDATION AND IMPLEMENTATION

RECOMMENDATION & IMPLEMENTATION

• Problem 01• AD-LIDER EMBALAGENS DON’T HAVE ANY PROPER HR DEPARTMENT.

• What is the solution?A proper Human Resource Department is mandatory here in this case.

• Why it is the best solution?The HR department ensures better opportunities for any organizations well as increasing the ability to widen the agenda and to challenge in the here and now.

• How will it be implemented? Ad-lider Embalagens needs to establish a proactive HR department to take strategic decisions on proper time.

• Who will implement it?While designing the management ultimate authority should be concern regarding this issue.

• Where do they implement it?• When will it be implemented?


• Problem 02AD-LIDER EMBALAGENS DO NOT YET EMPHASIZED ON A PROPER TQM (TOTAL QUALITY MANAGEMENT) SYSTEM FOR WHICH THEIR SERVICE QUALITY MIGHT NOT BE VERY EFFECTIVE REGARDING THE INTERNAL AND THE EXTERNAL FACTORS.

• What is the solution?• Establish a well defined TQM culture in every aspects of commercial customer

service at Ad-lider Embalagens.

• Why it is the best solution?• How will it be implemented?• Who will implement it?• When will it be implemented?


• Problem 03AD-LIDER EMBALAGENS DON’T HAVE AN HR planning to initiate the progressive HRM practices.

• What is the solution?

After establishing the HR department companies must go for an HR planning to initiate the progressive HRM practices.

• Why it is the best solution?If it is done correctly, then HRP can save the organization several intangible costs. The lack of HRP can result in vacancies remaining unfilled, causing a loss of organizational efficiency.

• How will it be implemented?• Who will implement it?• When will it be implemented?


• Problem 04THEY DON’T USE MODERN TECHNOLOOGY TO IMPROVE

• What is the solution?Ad-lider Embalagens can utilize its opportunity of installing the latest technology to improve product quality and come up with differentiated products by conducting a thorough research and development process.

• Why it is the best solution?• How will it be implemented?• Who will implement it?• When will it be implemented?


• Problem 05THEY DON’T PROVIDE ANY SORTS OF BENEFITS TO THE PEOPLE OF THEIR DISTRIBUTION CHANNEL.

• What is the solution?THEY SHOULD GIVE THE PRODUCT DISTRIBUTION CHANNEL PEOPLE A SPECIFIC TARGET AND IF THEY CAN ACHIEVE THE TARGET THEN THEY WILL PROVIDE THEM SALES COMMISSION.

• Why it is the best solution?• How will it be implemented?• Who will implement it?• Where do they implement it?• When will it be implemented?


• Problem 06THEY DON’T PROVIDE CUSTOMERS WITH SAMPLES OF THEIR NEW PRODUCT

• What is the solution?Ad-lider Embalagens SHOULD PROVIDE SAMPLES OF THEIR NEW PRODUCT TO THE CUTOMERS SO THAT THEY CAN USE IT AND REPURCHASE IN FUTURE.

• Why it is the best solution?• How will it be implemented?• Who will implement it?

• Where do they implement it?in the point of purchase they can give away the samples.

• When will it be implemented?


• Problem 07THEY DON’T HAVE A PROPER PROMOTION STRATEGY

• What is the solution?THEY SHOULD PROMOTE THEIR PRODUCT AMONG THE SELLERS AS WELL AS THE CUSTOMERS

• Why it is the best solution?• How will it be implemented?• Who will implement it?

• Where do they implement it?we will give posters to the distributors and to create awareness we will advertise in billboards.

• When will it be implemented?


• Problem 08Ad-lider Embalagens DO NOT INVOLVE THEIR EMPLOYEES IN THE PROCESS OF DECISION MAKING.

• What is the solution?Ad-lider Embalagens should go for decentralization

• Why it is the best solution?IF Ad-lider Embalagens INVOLVE THEIR EMPLOYEES IN THE DECISION MAKING PROCESS THEN THEY WILL FEEL EMPOWERED AND MOTIVATED.

• How will it be implemented?1. Training on leadership qualities2. Accomplishing Better Departmental Understanding

• Who will implement it? At the strategic level, the top management will take the decision.

• When will it be implemented? The initial decision has to be taken now whether they want to go for a more effective human resource planning or stay with the better than industry practice effective human resource planning that they are following now.


• Problem 09• Ad-lider Embalagens don’t provide job security to their employees.


The company must provide job security to its employees and in case of any emergency situation the company must have provisions to provide a sufficient compensation for the laid offs.

• Why it is the best solution?if the employees job is secured then they will feel secured and be more loyal to the improvement of the company.

• How will it be implemented?

1. InterviewWhile doing the recruitment Ad-lider Embalagens should talk about the job security during the interview. The company will share its current status with the employees after the recruitment.2. AdvertisingIn the advertising for recruitment, Ad-lider Embalagens also should clarify about the job security such that the potential candidates will come and will have confidence on the company.

• Who will implement it? At the strategic level, the top management will take the decision.

• When will it be implemented? The initial decision has to be taken now whether they want to go for a more effective human resource planning or stay with the better than industry practice effective human resource planning that they are following now.


• Problem 10Ad-lider Embalagens don’t provide training to their employees


Ad-lider Embalagens must provide training to train the new recruits as well as the existing employees.

• How will it be implemented?1. Training Need Analysis2. Training program3. Instructional Design

• Who will implement it?The HR department will ensure and monitor the process.

• Where do they implement it?• When will it be implemented?

THANK YOU!!!

trash bag

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