Bombrils return agitates market
Gazeta Mercantil - 06/16/2008
Laundry detergent is present in 99% of the Brazilian households. This piece of information is enough for one to imagine the size of such market, currently going through a period of agitation, whether due to the return of another competitor, or to the increased competition. A good starting point for the analysis of the market is the financial indexes. The sector of laundry detergents had an increase in the production volume, from 2006 to 2007, of 1.5%. Regarding the total sales, in 2005 they amounted to R$ 3.07 billion (US$ 1.3 billion), increasing to R$ 3.10 billion (US$ 1.42 billion) in 2006, a 0.98% expansion. Last year, the sector sold R$ 3.2 billion (US$ 1.7 billion), an increase of 3.23% compared to 2006, according to the data of Brazilian Association of Industries of Cleaning Products and Similar Items (Abipla). Regarding consumption, Brazil records a per capita consumption of laundry detergent of four kilograms per inhabitant a year, below Argentina (six kilograms per inhabitant a year) and half of Mexico (eight kilograms/inhabitant/year). In this scenario Bombril has recently returned to the laundry detergent market with the brand Tanto. The company has operated in the segment with Quanto, sold to Procter & Gamble, in the beginning of the 1990s. Bombril's strategy is to place Tanto as a premium category product, currently including brands such as Omo and Ariel, but at a lower price in relation to the famous rivals. Bombril's goals in this return are ambitious. Bombril's CEO, Gustavo Ramos, says that the goal is to reach at least 5% of market share in one year. Following a tendency in the segment, Tanto comes in different versions, including the detergent with a touch of Mon Bijou, the company's softener. The brand also presents a liquid version, which, among other things, is easy to use and dilute. Bombril has made a total investment of R$ 30 million (US$ 18.4 million) for the product‘s launching, including in this amount research, development, distribution and publicity. Tanto's advertising campaign, signed by DPZ, will be on TV in 2009. "We could not put the ads campaign on TV if the product were not properly distributed", states Ramos. Once on the air, the company expects to achieve 8% of market share until the end of 2009.