Wednesday, September 23, 2015

P&G invests in premium liquid soap

The American multinational Procter & Gamble (P&G) has invested $ 120 million in the expansion of Louveira (SP) to adapt the production lines at a new liquid soap formula Ariel. The Brazil will be the second country in Latin America to receive the Ariel Power Liquid, marketed since July in Mexico. Older versions of Ariel liquid does not come back to the shelves.
Production in Louveira will generate 73 new direct jobs and will supply only the internal market. According to the company, the product had features adapted to the country, as more scent to suit the taste of Brazil. The P&G is the second placed in liquid soap in Brazil, with slice of 29.4%, while Unilever, owner of the Omo brand, owns almost half of this market, according to Euromonitor consulting.
"We are growing and investing more in liquid, which is where we think the market will develop," says Thiago Icassati, Director of brand Ariel in Brazil. In European countries, the consumption of liquid soap to laundry reaches about 50%; in the United States, is approaching 80%, but in Brazil still edge the 20%, says Guy Persaud, global President of P&G clothing care.
"There is a great potential for growth. As we introduce the product to the consumer and it feels more satisfied, we can double, triple or even quadruple the liquid detergent market in Brazil, "said Persaud. According to the Executive, in the markets in which the category was introduced, there was a rapid migration of the powder to the liquid version, because the best dilution capacity, by not leaving residues and can be used also in the pre-wash, as a stain stick, with direct application in the tissue.
The detergent represents 60% of sales on the market of detergents for clothes in Brazil, but the revenues retreat annually from 2011. NET version represents 17% of the market, but almost doubled in size in 2010 and 2011 and grows to average double-digit since 2012, reports on the Euromonitor.
Mark Ariel is the focus of P&G clothing products in Latin America. According to Persaud, the category has moved toward a dispute over price. "The manufacturers do not have invested as they should and the differentiation of products has decreased." The proposal now is to offer more value to the consumer, so you can charge more for it. The price of the 2-liter bottle of Ariel Power Liquid is r $ 29.90, while the previous version of liquid soap, in 1.8 litre packaging, cost about $ 15. The 2-pound package of Ariel powder, flagship of the brand's sales, costs on average $ 15,59.
According to P&G, each liter of Ariel Power Liquid is equivalent to 2 pounds of laundry detergent, a good response to the more rational behavior of the Brazilian this year, justifying the price difference also. "The product lasts twice that the washing powder. The offer is very rational in terms of performance and also has better value, which is suitable for this economic moment, "said Persaud.
In the 12 months to June 30, the category of care with the clothes and the House totaled sales of $ 5,32 billion in continued operations P&G global, fall of 7% over a year earlier. The recipe is the largest for the company's business category, followed by the baby care, feminine and family.
The Brazil is the third largest market in the world of laundry products, after China and United States. The recipe of category in the country totaled $ 3,06 billion in 2014. "We are investing in Brazil thinking ahead, because we believe in its potential for consumption," said Persaud.
The research and development of Ariel Power Liquid took three years. The product begins to reach the points of sale of Brazil this week. "At first glance, is a completely different brand, with new packaging, and performance," says Icassi. The marketing strategy encompasses the distribution of samples, communication at the point of sale and a special campaign on the plane do Faustão.
The P&G aims to take the brand new Ariel for virtually all transactions in Latin America until July 2016.
In laundry detergent, Unilever is absolute leader with slice of 66%, while the P&G and the chemistry Amparo, owner of Ypê, tie in second place with just over 10% of participation.
In the United States, the P&G is a leader in detergents for clothes, with 58.6% share, according to Euromonitor. Unilever left the category to sell its brands for The Sun Products, which have slice of 12.4%.
Valor Economico
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