Based on the information in this case, do you think that Snuggle liquid fabric softener will be successful in the Eastern Region?

Question

What will be an ideal response?

Answer 1

Snuggle liquid fabric softener’s success depends on two factors. The first relates to consumer perceptions. If the consumer strongly believes that Snuggle delivers what it promises (a softer wash, a control over static cling, and a fresh smelling wash), then Snuggle will be a success for Lever. But consumers might have doubts about Snuggle’s
quality. Therefore, the success of Snuggle depends on the perception that consumers have about the belief that Snuggle is in fact a premium product that has a lower price. Once consumers believe this, Snuggle will be a successful product in any market.
Another factor influencing Snuggle’s potential success lies within its competitors. Even though Snuggle can decrease its price if a competitor uses a price reduction in an attempt to “beat out” Snuggle, this can only be done to a particular level. If Snuggle’s low-cost strategy becomes effective and places Snuggle above its competitors, these
competitors may copy this successful method and decrease the prices on their premium products.
In order to be effective and successful in the long run, Snuggle not only has to promise to consumers that its low-priced product is indeed a premium product, but it must be ready to defend its low cost position if other competing companies decide to “copy” Snuggle’s strategy. To be successful within a particular region, Lever must define consumer purchase patterns in that area. If this is done accurately and the above suggestions are also adhered to, then Snuggle can be successful in any market, including the Eastern Region.