1 Illinois MBA OSBI Consulting Key Findings and Implications Research Methods and Target Markets Positioning Recommendations Hispanic and African

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Illinois MBAOSBI Consulting

Key Findings and Implications

Research Methods and Target Markets

Positioning

Recommendations

Hispanic and African American Markets

AgendaAgenda

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ObjectivesObjectives

Identify target markets that will respond favorably to Bon Ami as a household cleanser.

Develop positioning statement that will resonate with target markets and differentiate Bon Ami from competitors.

Make marketing recommendations that will be low cost and yet provide high impact.


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Key Findings and RecommendationsKey Findings and Recommendations

Recommendations


Key Finding #1

People clean because they

care

Target markets (New Mothers, New Homeowners, Re-modelers, & Epicureans) are chosen because they inherently care about something.

Positioning statement (“When You Care….Pure. Proven. Powerful.”) developed to specifically speak to the target markets. Care is focus of the positioning.

Target markets (New Mothers, New Homeowners, Re-modelers, & Epicureans) are chosen because they inherently care about something.

Positioning statement (“When You Care….Pure. Proven. Powerful.”) developed to specifically speak to the target markets. Care is focus of the positioning.

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Recommendations


Key Finding #2

Competitors rely upon additives

(chlorine, dyes, & perfumes) in their

positioning

Focus on the “purity” of Bon Ami’s formula. Pure becomes a focal point in positioning.

To emphasize purity, switch from cardboard to clear plastic container. Allows customers to see the “pure” white powder.

Focus on the “purity” of Bon Ami’s formula. Pure becomes a focal point in positioning.

To emphasize purity, switch from cardboard to clear plastic container. Allows customers to see the “pure” white powder.

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Recommendations


Key Finding #3

Customers either are not aware of OR do not know

what surfaces Bon Ami can be used

Develop website that is both informational and educational in nature.

Use product packaging to highlight website address, thus encouraging customers to visit the site.

Include multi-purpose verbiage on back label to emphasize the variety of surfaces that Bon Ami can clean.

Develop website that is both informational and educational in nature.

Use product packaging to highlight website address, thus encouraging customers to visit the site.

Include multi-purpose verbiage on back label to emphasize the variety of surfaces that Bon Ami can clean.

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Key Finding #4

Recommendations


Bon Ami’s formula (unscented and

powdered) does not appeal to Hispanics

and African Americans

In the short-term, marketing focus should remain on the identified target markets.

In the long-term a separate brand can be created that uses a formula containing bleach and/or scents to attract the Hispanic and African-American markets.

In the short-term, marketing focus should remain on the identified target markets.

In the long-term a separate brand can be created that uses a formula containing bleach and/or scents to attract the Hispanic and African-American markets.

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Research & Target Markets Positioning Recommendations Other Markets

Research Methods & Target Markets

Research Methods & Target MarketsIllinois MBAOSBI Consulting

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Research MethodsResearch Methods


External analysis:A look at the industry and competition.

Laddering:An in-depth, one-on-one interviewing technique used to develop an understanding of how customers

translate attributes of a product into personal values.

Hands-on use:Personal use of Bon Ami and competitor products to better understand products features, pros and cons. Findings also reaffirm laddering results.


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External Analysis – 5 Forces ModelExternal Analysis – 5 Forces Model


New EntrantsHIGH

Changes in technology (OxyClean) allow new entrants into cleanser category. Suppliers

LOWResources for cleansing formula are abundant and widely available.

SubstitutesHIGH

There are a multitude of products that can be used to clean the home (powder, liquid, etc.).

BuyersMODERATE

Switching costs are low but consumers do not appear to be very price sensitive.

CompetitionHIGH

Competing brands have greater brand equity and resources.


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External Analysis – 5 Forces ModelExternal Analysis – 5 Forces Model



External Analysis Implications:

Positioning will be very important as the household cleansing category is highly competitive with a variety of products.

Advertising must resonate with customers.●Bon Ami does not have marketing funds to outspend competition, so the ad copy must be memorable.

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LadderingLaddering


The mission of laddering is to discover the core values of users – personal drivers that explain why they are purchasing and buying certain products.

Identifies opportunities to differentiate a brand through personal values, rather than specific product attributes.


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Laddering – Interviewee ProfileLaddering – Interviewee Profile


Female89%

Male11%

36-4522%

46-5522%

>5617%

<2517%

26-3522%

n = 31Interviews were conducted in-person and lasted approximately 30 to 45 minutes each.

Hispanic16%

African-American

16%

Other68%


Age Gender Race

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Laddering Results – Core ValuesLaddering Results – Core Values


Reputation

Powerful Quality

AccomplishmentAccomplishment

Effectiveness Ease of Use

FamiliarConvenient

The interviews revealed three primary values that were derived from stated attributes.


ATTRIBUTES

BelongingnessBelongingnessFamilyFamily

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Core Values to CARECore Values to CARE


Laddering results reveal that all users essentially CARE.

Care about: FamilyHomeCleanlinessInvestments


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Target MarketsTarget Markets


New Mothers

New Homeowners

Re-modelers Epicureans (Home gourmet cooks)


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Target Market – New MothersTarget Market – New Mothers


Market size = 4 million+ births in 2001.

Why them?New mothers are eager to make everything clean and safe for their new babies. They CARE about the health and well-being of their children.

Bon Ami will appeal to new mothers since it does not contain chlorine, perfume, or dyes, which may be considered harmful.

Source: National Center for Health Statistics.


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Target Market – New HomeownersTarget Market – New Homeowners


Market size = 973,000 new home sales and

5,566,000 existing home sales in 2002.

Why them?They have just bought a place of their own and they would prefer a cleanser that gets the job done

without harming their new investment. They CARE about their new dream house and will go to some lengths to maintain it.

Source: US Census Bureau and National Association of Realtors.


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Target Market – Re-modelersTarget Market – Re-modelers


Source: 2003 American Express Home Improvement Index.

Market size = Average home improvement

budgets have increased 42% since 1997 to $3,796 per year. Kitchens and

bathrooms represent 57% of the rooms refurnished and 46% of the rooms renovated.

Why them?They have just made a considerable investment to remodel their home (be it kitchen or bath). Just like new home-owners, they are very

particular about cleaning, maintaining, and CARING about their new investment.


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Target Market - EpicureansTarget Market - Epicureans


Market size = Americans are buying more expensive kitchen appliances. Between 1997 and 2002 the percentage change in value outpaced the percentage change in units for:

Cookers--+12% value vs. +5% units Ovens--+17% value vs. +10% units Freezers--+17% value vs. +4% units

Why them?They love to cook and often invite family or friends over for gatherings. They may even own a professional line of kitchen appliances designed for home use. As such, they CARE about the look and cleanliness of their kitchen, as well as its maintenance. Source: Euromonitor 2003


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PositioningPositioning

PositioningResearch & Target Markets Recommendations Other Markets


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Competition’s PositioningCompetition’s Positioning

“Unique formula that gently removes stains and even rust. It does so effectively, yet safely.”

“With bleach for extra cleaning power. Easy rinse formula.”

“Soft powder formula cleans surfaces without harmful abrasives. Non-chlorine bleach formula.”

“Bleaches out tough stains.”

“Mild abrasive and versatile multipurpose cleanser that gently cleans without harsh scratching.”



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Competition’s PositioningCompetition’s Positioning


Competitors tout bleaching power to clean.

Use tests performed by team showed that Bon Ami cleans just as effectively without the bleach.

Point of differentiation is “less is more.”

Challenge:

Convince customers that non-bleach formula cleans as well or better than bleach formulas.


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Current Bon Ami PositioningCurrent Bon Ami Positioning


“Hasn’t Scratched Yet”Recommendation: Downplay primary position because:

It does not provide a strong point of differentiation since most competitors already claim “no scratch”.

It is a negative statement, rather than a positive one. It may imply that it will eventually scratch, just not yet. The positioning should not leave open a potential negative consequence in the minds of consumers.

Today’s consumer does not identify with the story behind the chick not scratching for food. The chick, however, can help represent the soft and gentle aspects of Bon Ami.


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Characteristics of Effective Cleansersas Identified in Laddering Interviews.Characteristics of Effective Cleansersas Identified in Laddering Interviews.


Soft

Friendly

Powerful

Gentle

Care

Experienced

Trust

PureTough

Unscented

Proven

Less residue

Safe

Loving


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New Positioning DevelopmentNew Positioning Development


Pure. Proven. Powerful.

The Tough Cleanser With The Gentle Touch

For Those Who Care


When you care… Pure. Proven. Powerful.When you care… Pure. Proven. Powerful.

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Proposed PositioningProposed Positioning


When You Care…

Pure. Proven. Powerful.


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Marketing Recommendations

Marketing Recommendations

RecommendationsResearch & Target Markets Positioning Other Markets


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Product – New PackagingProduct – New Packaging


Change to a clear plastic bottle with a closable cap.

Allow consumers to see the white powder. White is often associated with purity and by allowing consumers to see the powder the purity positioning is reinforced.

Closable cap makes usage and storage clean and simple.


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Product – LabelProduct – Label


A new, more modern looking, chick logo (without the egg shell).

Prominently placed positioning statement.

Add “Multi-purpose” to back label.

Highlight Bon Ami website.

Explain “Bon Ami”.


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Hospitals

Sample packs to new mothers. (New Mothers)

PlacePlace


Grocers

Gourmet and specialty grocery stores such as Trader Joe’s. (Epicureans)

Traditional channels

Keep traditional channels such as grocery stores and discount retailers.

Home improvement centers

Retail outlets such as Home Depot or Lowe’s. (New Home Owners and Re-modelers)

Kitchen supply retailers

Williams-Sonoma, Dean and DeLuca. (New Home Owners and Epicureans)

Bed & bath retailers

Bed Bath & Beyond and Linens ‘N Things. (Re-modelers and New Home Owners)


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PricePrice


Through laddering interviews, price was not a key driver in the purchasing decision.

● Do not lower price. Rather, differentiate through Bon Ami’s new positioning.

● Avoid price war with the competition. Currently, competition is better positioned to withstand a price war.


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Pursue a featured partnership with a highly reputable sink, bath,or counter manufacturer, such as Kohler.

Develop joint promotional relationships: point-of-purchase displays, coupon or sample with purchase.

Magazine ads for each target market.

For the long-term, create radio and television ads that appeal to the four target markets, selling on the caring nature of the users.

PromotionPromotion


recommends

for all Kohler kitchen & bath products

KOHLER


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Promotion – New MothersPromotion – New Mothers


Magazine ad placements:Good Housekeeping, Better Homes and Gardens, Redbook

Radio ad placements:Kathy and Judy Show (Women’s gossip show on WGN Radio)

TV ad placements:Lifetime, Oxygen, Women’s

Entertainment, HGTV, TLCIs your kitchen as clean as it should be?

Pure. Bon Ami does not contain unnecessary chlorine, perfume, or dye that may cause harm.

Shouldn’t you be using Bon Ami?

When You Care… Pure. Proven. Powerful.


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Promotion – New HomeownersPromotion – New Homeowners


Magazine ad placements:Architectural Digest, Metropolitan Home

Radio ad placements:This target market includes a larger cross-section of the American public. Advertising on mainstream radio will reach most of the target audience.

TV ad placements:HGTV, TLC, Travel Channel

You care about your new home. Bon Ami’s pure formula rids dirt and stains without chlorine, perfume, or dye.

Shouldn’t you be using Bon Ami?


How to maintain your new home:Step 1: use Bon Ami


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Promotion – Re-modelersPromotion – Re-modelers


Magazine ad placements:House Beautiful, Metropolitan Home, Interior Design, House & Garden, Martha Stuart Living

Radio ad placements:News radio stations

TV ad placements:HGTV, Discovery Channel, TLC, Travel Channel

Protect the ones you love with Bon Ami, the only cleanser without unnecessary chlorine, perfume, or dyes.

So go ahead, fall in love again.


Clearly, Agatha is in love with her new kitchen.


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Promotion – EpicureansPromotion – Epicureans


Magazine ad placements:Gourmet, Bon Appetite, Cooking Light, Martha Stuart Living

Radio ad placements:Talk radio shows dealing with the arts and cultural activities.

Magazine ad placements:Gourmet, Bon Appetite, Cooking Light, Martha Stuart Living

You seek quality in everything you do. So does Bon Ami. It cleans without chlorine, perfume, or

dye. Shouldn’t you be using Bon Ami?


Perfectionists.


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Sample :20 Radio SpotSample :20 Radio Spot


Caring for your family and for your home can be a full-time job. You don’t have time to worry that your cleanser is harming either one. Bon Ami Cleanser gently cleans your kitchen, bathroom, and cookware without potentially harmful chlorine, perfumes, or dyes so it is safe to use around children and pets. Bon Ami Cleanser….When You Care….Pure. Proven. Powerful.


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Website Recommendations

Website Recommendations



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Website – Why It’s NeededWebsite – Why It’s Needed


Target markets are accustomed to using Internet for informational purposes:

● New Mothers use Internet to search for parenting tips.

● New Home Owners use Internet to research homes and look for design tips.

●Re-modelers use Internet to obtain information on specific products for their projects.

●Epicureans use Internet for latest recipes and party planning.


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Implication – Give Them What They WantImplication – Give Them What They Want


Educational

Informs users what surfaces on which Bon Ami can be used. It may also include cleaning tips, how-to’s, and articles of interest that would appeal to the target markets.

Improve Brand Recognition & LoyaltyBrand recognition and loyalty can be increased through more brand exposure and knowledge of the product.

Marketing Tool

Promotions, surveys, and polls.

Feedback

Provides a channel for consumer feedback and questions.


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Suggested Website ComponentsSuggested Website Components


Bon Ami website needs its own product-specific website (www.BonAmi.com) that is linked to, but separate from, Faultless Starch and its sister products.

Product description / uses: Description of product ingredients (where the purity and powerful aspect of Bon Ami can be boasted), correct pronunciation, recommended uses, and list of surfaces that can be used.

How-to’s: Everyday to not-so-everyday cleaning directions for common and not-so-common surface types (bathroom, special cookwares, patio furniture).

Product comparison: A brand by brand comparison of household cleansers in terms of effectiveness, toxicity, abrasiveness, etc.


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Feature articles: A section that is regularly updated featuring articles on topics that interest the target audience (ex: “What to look for when buying a new home”, “Top summer traveling destinations”, “Kitchen makeover: do’s and don’ts”). It can also be e-mailed as a newsletter for those who sign up.

FAQs: A section that lists the most common questions users have concerning Bon Ami and their answers.

Suggestion box / Q&A: A prominent link or button that allows users to email or post questions or suggestions regarding Bon Ami to the company. It should be fairly visible since many users have questions on where Bon Ami can be used.


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Idea Forum: A bulletin board where users can share their own experiences, tips, and ideas. It should be noted that it can be potentially abused.

Promotions: Any company or product-related promotions or offers (such as coupons, Bon Ami chick toy, giveaways, etc.).

Sample request: A page where visitors can ask for a free sample and information just by filling out their home address.

Environmentalism: Facts, history, statistics, and stories of how common household cleaning agents, such as bleach, can have a devastating effect on the environment.

About: Product and company history and a link to company website.


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Hispanic & African American Markets

Hispanic & African American Markets

Other MarketsResearch & Target Markets Positioning Recommendations


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Hispanic Population Growth ProjectionHispanic Population Growth Projection


1995 2000 2005 2015 2025

58,925,000

46,704,000

36,059,00031,360,000

26,921,000

16% 15%

26%30%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Source: http://www.clac.state.mn.us/english/usproj.htm


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Hispanic-American CultureHispanic-American Culture


Recent Immigrants

Born into low income stratus in Latin America

Generally less educated speak no English

Prefer the same brands they used in their old country

Will not risk buying a new brand and having to disregard the product

Able to purchase familiar brands in grocery stores and bodegas in predominantly Hispanic communities in the U.S.

Adapters

Those who have adopted the use of American products

Changed buying habits due to:

Interaction with American-Latin friends

Exposure to American TV advertisements

Formula 409, Lysol, Tilex


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Hispanic-American Buying BehaviorHispanic-American Buying Behavior


EffectivenessCleans well

Takes out grease & dirt

Clean house is a symbol of:

Progress Affluent life Self-realization Happiness

FastTime not wasted

Busy women need time to enjoy life and family

OdorLatin women say, “If it does not have odor, it is not clean.”

Odor = Clean = Effective

ColorColor implies odor

Odor implies cleanliness

Cleanserattributes

“Ideal Product” = Very Effective + Fast Acting + Long-lasting Odor


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Why Hispanic Adapters Do Buy PowderWhy Hispanic Adapters Do Buy Powder


CLEANS FAST: When Hispanics use spray cleaners, they have to wait a few minutes before cleaning can begin. Therefore, powder cleanser is faster since they do not have to wait.

CLEANS BETTER: It’s more powerful and can take out difficult stains. Hispanics say that you can feel the powder cleaning, which reassures them a good cleaning. They feel accomplished when everything is perfectly “white”.

MORE CONVENIENT: No bothersome chlorine smell.

SMELLS CLEAN: Although the powder cleanser is not scented, the cleaned area “smells clean”.

FAMILIAR: Hispanics used powder in their native country. Some could describe themselves as native Indians since they could not get accustomed to sprays.

PACKAGING COLOR: It is important because it suggests it is clean.

SPECIAL NOTE: Interviewees said that powder is especially for cleaning dirty spots because you can really use its power there.


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Recurring Images in Hispanic MarketRecurring Images in Hispanic Market


Hispanics associate U.S. with modernity

Spray cleaners = Modern

Powder cleansers = “Obsolete” and “Too old”

Powder cleanser is associated with a maid or hired worker!


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PrototypePrototype


She enjoys inviting or receiving guests to her house.

Social life and what people think about her and her family are important. Therefore, she really wants to hear that she has a great home.

She thinks that to show a clean house is to show that her family is progressing in these lands.

Moreover, she believes that a house that looks like new will attract more friends to her and will make her a respectful woman.

She wishes to make her husband happy, so she has everything clean for him.

She wants to always have a clean house so that she can feel that she is doing a good job as a housewife.

She likes to have everything clean because it is more comfortable and convenient to clean now than later.

She thinks that having things not clean is a sign of laziness and dirtiness. She will feel like a dirty person.


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Why Hispanics Don’t Buy Bon AmiWhy Hispanics Don’t Buy Bon Ami


Hispanics have never heard of it.

If they are prone to adopting an American product, they will use a well-known brand.

Latin people are afraid to use a product that no one uses, especially one that “Americans do not use”.

Housekeepers consider this kind of product unpractical. With the spray product, they just apply the liquid with one hand and clean with a towel with the other hand. Using a powder requires much more work. Implications:

Too much work Too much time Too much energy Too messy to use

They are afraid of using powder.

Housewives feel powder products are not socially acceptable. Not modern enough Negative implications


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Recommendations for Hispanic MarketRecommendations for Hispanic Market


Implement a new brand

Reformulate original product (11 oz.)Add chlorine and/or fragrance to powder base



Establish relationships with wholesalers

Dollar General, Dollar TreeSam’s Club, Costco



Use brand name

“Buen Amigo”

Use brand name

“Buen Amigo”

Create cheap and generic package

Use completely different label colorsSimSun font




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Why African-Americans Buy Bon AmiWhy African-Americans Buy Bon Ami


Two out of five interviewed buy Bon Ami

Interviewee 1:

Bon Ami shines pots and pans

Gets stains out of old tough sinks and tubs

Not over-bearing in smell

Interviewee 2:

Uses Bon Ami primarily on bathtubs

Bon Ami is the cheapest of all powder cleansers in her area (California)

Good value for the money


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Why African-Americans Do Not BuyWhy African-Americans Do Not Buy


Lack of awareness and familiarity

Cleaners must have a strong smell

Bleach

Lemon, orange

Nostalgia drives purchases

Low probability of switching

“I purchase it because my Mom used it.”

Priced higher in comparison

Ajax (11 oz for 2 for $1 at Dollar General)

Comet (11 oz for 2 for $1 at Dollar Tree)


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Recommendations For The AA MarketRecommendations For The AA Market










Use brand name

“Good Friend”

Use brand name

“Good Friend”






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Questions? Clarifications?

Questions? Clarifications?



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Appendix 1Appendix 1


Hispanic Market Demographic Information


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Hispanic DemographicsHispanic Demographics


Hispanic Composition

Family households

Spending

Growth Age

Income Location


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Central & South

American, 9%

Mexican, 66.10%

Cuban, 14.50%

Puerto Rican, 4%

Other, 6.40%

Percent Distribution of Hispanics by Type (2000):

Total = 32.8 millionSource: Current Population Survey, Match 2000


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36%38%

34%

19%

29%

24%

0%

10%

20%

30%

40%

Hispanic Mexican PuertoRican

Cuban Centraland SouthAmerican

Non-Hispanic

White

Percent of Population Under Age 18 by Hispanic Origin (2000):

Source: Current Population Survey, Match 2000


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Married couple, 68%

Female householder,no spouse, 23%

Male householder,no spouse, 9%

Family Households by Type (2000):



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Source: U.S. Census Bureau Hispanic Population 2001

Hispanics by Population (2000):


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71.50%

60.90%56.50%

69.10%

7.70%13.10%

17.90%11%

0.00%

20.00%

40.00%

60.00%

80.00%

Mexican PuertoRican

Cuban Centraland SouthAmerican

Less than$30,000

More than$50,000

Percent of Hispanics with Full Time, Year Round Earnings of Less Than $30k and More Than $50k by Hispanic Origin (2000):



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Where Hispanics ShopWhere Hispanics Shop


Hispanic-owned

supermarket, 10%

Neighborhood store, 14%

Bodega, 2%

Other, 3%

American-oriented chain

with a large Hispanic

section, 44%

American supermarket

with little Hispanic

section, 27%

Source:Thomas Opinion Research


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Appendix 2Appendix 2


African American Market Demographic Information


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African-American DemographicsAfrican-American Demographics


African-Americans in the U.S.

Family households

Spending

Growth Age

Income Location


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African-Americans By PopulationAfrican-Americans By Population



Source: U.S. Census Bureau, Annual Demographic Supplement to the March 2002 Current Population Survey

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African-American Demographics African-American Demographics




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Documents

1 Illinois MBA OSBI Consulting Key Findings and Implications Research Methods and Target Markets Positioning Recommendations Hispanic and African