It is October 2007 and competition in the fast-moving consumer goods space is heating up in the developing markets. Vietnam is no exception and Unilever believes it can seize greater market opportunity through innovative and environmentally sustainable product offerings.
Nguyen Van Linh, head of marketing at Unilever Vietnam is concerned. Back in April, Unilever launched Comfort One Rinse, a fabric conditioner designed to reduce water use for rinsing hand-washed laundry by 66%. However, consumers are sceptical of the product’s efficacy and do not believe that this new fabric conditioner will work as advertised. To complicate matters, P&G just launched their own nearly identical product, Downy One Rinse.
In part A of this case series, Nguyen addressed the new product’s credibility issue while contending with P&G’s challenger product. Will she secure Comfort’s market leadership and reach 50% market penetration before Downy?
Part B of this case series takes place in December 2008, a little more than a year following the events of part A. Although significant progress has been made since then, the Comfort One Rinse range has not yet reached 50% market penetration ... though neither has Downy. The biggest obstacle is rural activation. What more can Nguyen do to push into the rural market?
This case series is suitable for classes related to marketing and/or innovation. Through the first part of this case series, students will evaluate how a firm’s sustainability initiatives can be aligned to a firm’s profitability. They will identify emerging megatrends and recognise how companies are innovating their product offerings in order to capitalise on such trends and be able to differentiate between disruptive and incremental innovation. Students will recognise potential roadblocks to consumer adoption of new, innovative products and formulate strategies to overcome such roadblocks.This case series is suitable for classes related to marketing and/or innovation. Through the first part of this case series, students will evaluate how a firm’s sustainability initiatives can be aligned to a firm’s profitability. They will identify emerging megatrends and recognise how companies are innovating their product offerings in order to capitalise on such trends and be able to differentiate between disruptive and incremental innovation. Students will recognise potential roadblocks to consumer adoption of new, innovative products and formulate strategies to overcome such roadblocks.
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· Teaching Note (SMU-14-0006TN)
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