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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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PROJECT INNOVATION AND CREATIVITY

DERO DUO CAPS

Content

Team members

Abstract

Who is Unilever?

Who is Dero?

Dero DuoCaps

Best practice examples

Suggestions

Conclusions

Contribution:

Madalina: page 4, 6-10, 13-16. Slides 1-13

Cosmin: page 11-12. Slides 14-19

Stefania: page 5, 17-20. Slides 20-24

Team members

MADALINA IOAN- I am Brand Assistant at Unilever, as part of Marketing team. I like the fact that the brands I'm working with are all popular brands that consumers enjoy using. These brands are Dero, Omo and Coccolino. In my free time I enjoy going for long walks, taking photos and playing with my new pet. It's a baby bunny and I love him very much.

COSMIN ROMAN- I am Cloud Engineer at Orange. I like technology and staying in touch with the latest trends in technology. I love spending as much time as possible in the nature, going to the mountains and fishing.

STEFANIA DUMITRESCU '  Right now I am working as an accountant for France team in DB Schenker and I can say I am passionate about volunteering in any activity related to education. My greatest achievement on a personal level is climbing Moldoveanu peek.

Abstract

One of the most beautiful brands from Unilever, Dero, has just launched a new product: Dero Duo Caps. This is a new and innovative laundry detergent that required a lot of resources for the capital expenditure, raw material, R&D, supply chain, cost with people and marketing campaigns. Market trends show that people are turning from using a traditional format of detergent which is powder detergent, to modern formats such as liquids and caps. By launching this new product, Dero shows its innovative way of being, always reinventing itself and investing in R&D in order to satisfy needs of consumers.

Who is Unilever?

Unilever is a unique company, with a proud history and a bright future. It has ambitious plans for growth and a strong sense of social purpose - a spirit that has driven their success since their foundation.

In 1885, the British founder, William Lever, began his business by making Sunlight soap. He was a social entrepreneur who recognised that cholera and dysentery were rife in Britain's Victorian slums, and saw that selling affordable branded soap could improve people's lives and grow his business.  His Lever Bros company had an inspiring purpose ' to make cleanliness commonplace ' and used advertising to make cleanliness the new social norm.

In 1929, Unilever was created through an agreement between Lever Bros and Margarine Unie, which had its origins in the pioneering development of margarine as an affordable alternative to butter in the Netherlands in the 1870s.

Both businesses were among the most philanthropic of their time, improving the welfare of their workers and developing products with a positive social impact. Today, they still believe that success means acting with the highest standards of corporate behaviour towards each other, consumers, and the world in which we live. More than ever, their brands, business principles and leadership in sustainability are helping people live well.   

At Unilever the purpose, to 'make sustainable living commonplace', guides everything they do.

Their vision is to grow their business whilst decoupling the environmental footprint from growth and increasing the positive social impact. An ambition which is consistent with their long history of doing well by doing good since thier origins in the late 19th century.

Today, they believe in a future in which everyone lives well within the natural limits of the planet.

Unilever believes profitable growth should also be responsible growth. Some people think that business growth and sustainability are incompatible. But they're proving that sustainability drives growth using these means:

- Secure supplies of raw materials and reduce risk in our supply chain

- Cut costs by making products more efficiently, for example by reducing waste and packaging

- Grow the business with innovative products which meet people's desire to live more sustainably

- Enhance and protect their reputation

In 2016 their Sustainable Living brands accounted for nearly half our growth ' and they're growing 40% faster than the rest of the business. And some of them are also playing a role in delivering the UN Global Goals which aim to achieve three extraordinary things by 2030 ' end extreme poverty, fight inequality and tackle climate change. For our planet, the consumers and the company to thrive, the world needs a new business model with sustainability at its heart. That's why in 2010 they launched the Unilever Sustainable Living Plan (USL).

Unilver is very proud that in the region which contains Romania, the 2 romanian brands, Dero and Delikat are on the top of the 3 brands that make the most turnover. You can see in the attached graph which are the other brands that help Unilever get its turnover.

Today Unilever is a global company, with a turnover of over '52 billion and sales in nearly every country in the world.

We make many of the world's favourite brands and, every day, 2.5 billion people use Unilever products to feel good, look good and get more out of life.

At Unilever we believe that companies which address both the needs of the environment and the concerns of citizens will prosper over the long term. It's this thinking that's behind our vision, set by our Chief Executive Paul Polman, of growing the business whilst decoupling our environmental footprint from our growth and increasing our positive social impact. Our blueprint for reaching our vision is the Unilever Sustainable Living Plan.

Who is Dero?

Dero is a Romanian heritage fabric cleaning brand with strong emotional references in consumer's mind. Hence, it managed to historically secure a strong position on the market (no. 1 in volume share & no. 2 in value share).

Dero is present in 2 ranges, Ozon which is more affordable and 2in1 which is more anchored in fragrance. Dero Ozon is present in 2 variants: Mountain Dew and Sea Breeze. The available formats are powder, liquid and capsules. 2in1 is available in 3 variants and in all 3 formats. They are all universal detergents, so they are suitable for both white and coloured clothes. As per the research, consumers prefer the universal detergent, especially for the mainstream detergents, as Dero is.

Dero DuoCaps

In the EU fabric cleaning business, the capsules market has been the fastest growing laundry format showing 23% USG in Europe over the last 3 years, expecting to achieve a VMS of 29% in UK by 2020. The market landscape has dramatically changed and competition intensified significantly, as new  innovations are being launched rapidly. Today, the market is shifting to multi-chamber formats representing already a 54% of the Capsules business.

France + UK YTD 2016 YTD 2017 ''

Total Market  2,933,747  2,831,617 -3.5%

Capsules   650,059   660,249 1.6%

Capsule % of total 22.2% 23.3% 120bps

Like many homecare categories, Laundry is on a journey with new formats seen as increasingly modern and effective.

The energy in the category shifts towards the more modern formats and many consumers move into new formats with this progression.

While Dero mono-capsules have shown a very good performance over the last years and consumers understand the brand is about delightful fragrances perceived through the rainbow effect, Dero has decided to bring fun to the category by investing in multi-chamber format.

Recognized as a key pillar of growth, Unilever is currently developing for the first time a liquid-liquid duo capsule in-house in a new uplifted design.

Best Practices

In our research to find a competitor that was able to implement the similar  type of innovation  in  another  country, we have reached far to  North America and discovered the Product All SuperCore.

This detergent was created by the company Sun Products  which had in mind bringing to consumers a  combination of pods that comprises both powder and  liquid detergents. By creating this combo the detergent promised  powerful cleaning of laundry and also a freshness of the scents left to the clothes.

The product comes in three different types : for white clothes, for colourful clothes and for tough odors. They  have not put much enphasis on creating scents  that would attract the customers, but they focused more on the power of the product to clean stains. They have come up with their motto 'give us your  worst, we'll give you our best' which clearly states their position as being a detergent that can powerfully clean the customer clothes.

We can consider this detergent a good example of implementing the dual capsules innovation and actually acquire a good position on the market.

Suggestions

After analysing the implementation and evolution of this product we have consider several ideas that could help Dero improve their performance on the market.

The first thing we have remarked about the new capsules is that they have chosen for the scents Romanian flowers that are found on the territory of our country. This choice creates  for the consumers a bond  by associating the brand with the culture of their country. As it is a Romanian brand of detergent, it is not of coincidence that in the past they used in promoting their products the association with the images of dearest public names to the Romanian consumers such as Stefan Banica Junior or Loredana Groza.  

This is why strongly recommend Dero to continue to  promote this bond to the Romanian culture and also try creating packages with Romanian motives.

Another recommendation we make for the brand is to also try to bring to consumers many other flavours that could be inspired by the seasons such as gingerbread or cinnamon apples or summer waves. The consumer tends to get quickly bored if they don't have the possibility explore many other possibilities

The last recommendation we make is that the brand should continue to invest in R&D in order to bring to the market a new and innovative product that could possibly gain even more market share in the future.

Conclusion

As it toked over 50 years to develop the detergent pods, R&D places between departments as an important matter in establishing a company's market share. Without R&D it is impossible to be innovative and bring more promising products to consumers. The Dero brand has understood how important it is but also how the consumer perspective over their product can influence their future. The detergent was well seen and has achieved to conquer the hearts of Romanian consumers

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