Presentation on

Ad-lider Embalagens, SA:

Marketing Research for
Drawstring Trash Bags in Brazil

CASE 3
 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 process

The 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 primary
lines, 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.
THEME
THEME
MAIN ISSUE
MAIN ISSUE

In
In growing
growing competition
competition of
of trash
trash bag
bag business
business in
in Brazil,
Brazil, itit is
is aa challenge
challenge for
for Ad-
Ad-
Lider
Lider to
to focus
focus on
on more
more onon employee
employee development
development rather
rather then then focusing
focusing only
only
on
on new
new product
product introduction,
introduction, with
with solving
solving HR
HR issues
issues andand howhow toto balance
balance
demand
demand and
and supply?
supply?
SWOT ANALYSIS
SWOT ANALYSIS

• SWOT: Strength, Weakness, Opportunities and Threat.

STRENGTHS
STRENGTHS
INTERNAL
INTERNAL
WEAKNESSES
WEAKNESSES
ENVIRONMENT
ENVIRONMENT
OPPORTUNITIES
OPPORTUNITIES
EXTERNAL
EXTERNAL

THREATS
THREATS

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

EXTENDED

 Extended SWOT. Complet

SWOT
 Narrow SWOT.
NARROW
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 regarding
the 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 employees
So 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 top
management 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
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 Growth
New Product Development. Ad-Lider Embalagens has taken
Management Philosophy
The 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: Techniques
Trend Analysis
Is a quantitative approach to study of
previous trends in the market and using them
to predict future trends
Management Estimates
is 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 Technique
qualitative 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 Workforce
Education 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 period
Unemployment 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?
RECOMMENDATION & IMPLEMENTATION

• Problem 02
AD-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?
RECOMMENDATION & IMPLEMENTATION

• Problem 03
AD-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?
RECOMMENDATION & IMPLEMENTATION

• Problem 04
THEY 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?
RECOMMENDATION & IMPLEMENTATION

• Problem 05
THEY 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?
RECOMMENDATION & IMPLEMENTATION

• Problem 06
THEY 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?
RECOMMENDATION & IMPLEMENTATION

• Problem 07
THEY 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?

RECOMMENDATION & IMPLEMENTATION

• Problem 08
Ad-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 qualities
2. 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.
RECOMMENDATION & IMPLEMENTATION

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

• What is the solution?

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. Interview
While 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. Advertising
In 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.
RECOMMENDATION & IMPLEMENTATION

• Problem 10
Ad-lider Embalagens don’t provide training to their employees
• What is the solution?

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 Analysis
2. Training program
3. 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!!!