SNUGGLE Fabric Softener

Lever Brothers Introduction of new product

Introduction
Lever Brothers was a decentralized
company having 3 operating divisions
Household products
Personal products
Foods

Channels of Distribution
There are two channels of distribution:
Level - 1

Manufacturer
Retailer
Consumer

Channels of Distribution
Level-2

Whole
sellers

Manufacture
r

Retailers

Chain
headquart
ers

Consumer
Chain Stores

Situation Analysis
CUSTOMERS
Lever Brothers is introducing a new product snuggle
Fabric softener for its customers of 25- 54 years of
age.
Snuggle is a high quality fabric softener, currently
operating in 6 regions and 22 districts of United States.
It has 2 channels of distribution.
Level 1
Level 2

Lever Brothers is expanding its geographic range to

Eastern region of United States.

COMPETITORS

IN LIQUID:
In liquids, major competitor of Snuggle is
Downy by P&G.
Brand

Nation
al

Midwe
st

West

Downy (P&G)

54.4%

48.2%

57.7%

Snuggle

11.3%

31.2%

23.7%

Downy is holding more than Half of the market

share in Midwest and West region of United
States
Lever Brothers snuggle has a competitive
advantage of high quality product in low cost.

COMPETITORS
IN DRYER SHEETS:
In dryer sheet Bounce is the dominant brand
with 50.3% share.
Brand

Share of Dryer
Segment

Bounce

50.3%

COMPANY
The company Unilever is a result of Merger
and Acquisition of three European families, the
Lever (Lever Brothers), Jrgens(Margarine
Union), & the Van den Burgh.
Lever Brothers is one of the most important
companies of Unilever, by 1995 it has grown to
be one of the largest soap, detergent and toiletry
products.
It had started its operation in southern and
western regions of America and now is
expanding in Western region

CONTEXT
Annual sales of liquid fabric softener in 1989
were $398 million.
Production of fabric softeners has increased
to 22% since 1985.
There is growth in the production of fabric
softeners due to increasing demand of
product.

Conclusion
Sales of Liquid softeners of Lever brothers increased
over 20% since introduction of snuggle.
With introduction of snuggle, there was huge fall in
shares of sta-puf & Rain Barrel.
Final Touch & Downy experienced smaller percentage
loss in business due to cannibalism effect.
Lever brothers wanted to use Snuggle and Final
Touch to enhance its market position so it could
overtake its competitors like P&G as number 1 liquid
fabric softener manufacturer.

Decision
As Snuggle is a low price fabric softener, Lever
Brothers should Focus on price sensitive
consumers, to increase its market share.
Create awareness about Snuggle in Eastern region
of United States through different mediums of
campaign.
For promotion of snuggle in western region of
United States, Lever Brothers shall not rely only on
TVCs but also use Radio and bill board
advertisements.