Research report on home care in costa rica

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The ongoing slow economic recovery caused home care to register slower growth in 2011 than in the previous years of the review period. Most producers did not significantly adjust their price levels as they continued looking forward to fully recovering demand levels affected by the global economic downturn. This situation led Costa Ricans to reduce their consumption of some home care products they perceive as non-essential, while opting for economic and value-for-money brands, which continue benefiting from the ongoing economic conditions and their increasing availability in local outlets.

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Research report on home care in costa rica

  1. 1. Research Report on Home Care in Costa Rica Discover the latest market trends and uncover sources of future market growth for the Home Care industry in Costa Rica with research from Euromonitors team of in-country analysts. The Home Care in Costa Rica market research report includes: Analysis of key supply-side and demand trends Historic volumes and values, company and brand market shares Five year forecasts of market trends and market growth Robust and transparent market research methodology, conducted in-country Our market research reports answer questions such as: What is the market size of Home Care in Costa Rica? What are the major brands in Costa Rica? What is the importance of the trend towards environmentally friendly products in home care? What are the main growth drivers of the home care market in Costa Rica? Why buy this report? Gain competitive intelligence about market leaders Track key industry trends, opportunities and threats Inform your marketing, brand, strategy and market development, sales and supply functions EXECUTIVE SUMMARY Most home care categories are affected by economic slowdown The ongoing slow economic recovery caused home care to register slower growth in 2011 than in the previous years of the review period. Most producers did not significantly adjust their price levels as they continued looking forward to fully recovering demand levels affected by the global economic downturn. This situation led Costa Ricans to reduce their consumption of some home care products they perceive as non-essential, while opting for economic and value-for-money brands, which continue benefiting from the ongoing economic conditions and their increasing availability in local outlets. Pricing continues to be the main purchase driver of home care products Although consumers have traditionally preferred the more recognised (and usually more expensive) home care brands available in local retailers, this trend began to change some years ago,
  2. 2. shifting towards rising demand for value-for-money products corresponding with recent productdevelopments by the main home care manufacturers. This low price trend continued progressingafter 2009, when consumers to a large degree suffered the consequences of the global economicdownturn, which continued to have an impact during 2011.Local and international brands compete for consumer preferenceEven though strong international manufacturers, such as Unilever, Procter & Gamble, Clorox andReckitt Benckiser, are strong competitors within most home care categories, local players Irex andPunto Rojo consolidated their competitive positioning within this industry, relying on the strongrecognition of traditional laundry care brands, while taking advantage of the manufacture anddistribution know how developed throughout the years in the Costa Rican market.Growing consumer preference for modern grocery retailersAs a result of new outlet openings, especially Wal-Mart’s aggressive expansion strategy, new pricingpolicies and deeper discount levels were seen across most modern grocery outlets in Costa Rica,increasing the attraction of consumers to the wide variety of products offered by these retailers.The ongoing economic downturn incentivised a significant portion of the middle-income populationto start visiting discount outlets in Costa Rica, with more consumers allocating most of theirresources to buying essential home care goods, as a consequence of the reduction in theirpurchasing capacity.An uncertain global economy will continue to have an impact on value salesThe uncertain macroeconomic situation expected over the early part of the forecast period willcontinue to mould ongoing preferences for value-for-money brands which will drive sales of homecare over the forecast period. At the same time, the incorporation of added-value characteristicsand functional features will remain the reserve of mostly mid- to high-end consumers, who will bewilling to continue paying more for differentiated and functional products.Buy Your Copy of Report: http://www.reportsnreports.com/reports/175760-home-care-in-costa-rica.htmlPublished: July 2012Price Single User License: US $ 2400Table of ContentsHome Care in Costa Rica - Industry Overview
  3. 3. EXECUTIVE SUMMARYMost home care categories are affected by economic slowdownPricing continues to be the main purchase driver of home care productsLocal and international brands compete for consumer preferenceGrowing consumer preference for modern grocery retailersAn uncertain global economy will continue to have an impact on value salesMARKET INDICATORSTable 1 Households 2006-2011MARKET DATATable 2 Sales of Home Care by Category: Value 2006-2011Table 3 Sales of Home Care by Category: % Value Growth 2006-2011Table 4 Home Care Company Shares 2007-2011Table 5 Home Care Brand Shares 2008-2011Table 6 Penetration of Private Label by Category 2006-2011Table 7 Sales of Home Care by Distribution Format: % Analysis 2006-2011Table 8 Sales of Home Care by Category and Distribution Format: % Analysis 2011Table 9 Forecast Sales of Home Care by Category: Value 2011-2016Table 10 Forecast Sales of Home Care by Category: % Value Growth 2011-2016DEFINITIONSSOURCESSummary 1 Research SourcesHome Care in Costa Rica - Company ProfilesIrex de Costa Rica SA in Home Care (Costa Rica)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 3 Irex de Costa Rica SA: Competitive Position 2011Punto Rojo SA in Home Care (Costa Rica)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 5 Punto Rojo SA: Competitive Position 2011Air Care in Costa Rica - Category Analysis
  4. 4. HEADLINESTRENDSDespite the strong marketing efforts of the main competitors to incentivise sales of air careproducts in Costa Rica, the ongoing slow economic recovery continues holding back the growthpotential of this category, as consumer disposable income has been declining since 2009 and theonset of the global economic crisis. Even though consumers often feel attracted to these products(especially in the case of new product launches and innovative scent combinations), most averageconsumers tend to consider air care as non-essential goods, avoiding these products or significantlydecreasing their purchasing frequency, as a result of their current budget limitations.COMPETITIVE LANDSCAPESC Johnson sustained its strong lead in air care during 2011 holding a 61% value share, having atop-of-mind presence and a broad segmentation of its consumers’ needs. It is characterised by astrong shelf presence in modern grocery retailers with a vast number of different product unitsranging from traditional candles to the most innovative and added-value products, such as electricair fresheners. SC Johnson’s leading brands Glade and Oust Air Sanitizer, continuously innovate byintroducing new scents, convenient product formats and functional features (such as fighting badodours). Reckitt Benckiser followed in second spot, accounting for a 34% total value share,benefiting from the strong positioning of its Air Wick and Lysol brands, which are also widelyavailable in modern grocery retailers, although more focused on the bestselling and dynamicsubcategories such as spray/aerosol and electric air fresheners.PROSPECTSAir care is expected to continue competing based on innovative new scent combinations andconvenient dispensing formats, segmenting consumers’ needs further while targeting a broaderbase of consumers besides women. The promotion of added-value products (such as temporisedelectric dispensers) and the addition of functional features to combat bad smells or to sanitisefabrics are expected to gain popularity among consumers, who are anticipated to become moreinterested in these products over the forecast period.CATEGORY DATATable 11 Sales of Air Care by Category: Value 2006-2011Table 12 Sales of Air Care by Category: % Value Growth 2006-2011Table 13 Air Care Company Shares 2007-2011Table 14 Air Care Brand Shares 2008-2011Table 15 Forecast Sales of Air Care by Category: Value 2011-2016Table 16 Forecast Sales of Air Care by Category: % Value Growth 2011-2016Bleach in Costa Rica - Category AnalysisHEADLINES
  5. 5. TRENDSEven though bleach is usually characterised as a very mature category due to the lack of innovationand advertising, during 2011 volume sales benefited from the slow economic recovery in CostaRica, as these products are often used to substitute other added-value surface cleaners, which tendto have significantly higher unit prices. Most local families continued considering bleach as anessential home care product used for both laundry care as well as a very effective surfacedisinfecting agent.COMPETITIVE LANDSCAPEInternational player Clorox is the leading company in bleach in Costa Rica, with a total value shareof 61% in 2011. This company has been able to consolidate significant production and logisticseconomies-of-scale as its leading brand, Los Conejos, is widely available at affordable prices viamost grocery retailers across the country, being targeted towards virtually all economicdemographics. Second placed Irex accounted for a value share of 33%, offering broad productavailability, while benefiting from the distribution platform local leader in laundry care productshas been able to establish in Costa Rica throughout the years, with its top-of-mind bleach brandsIREX and Blankita.PROSPECTSBleach sales are expected to remain virtually dormant over the forecast period, as the mainmanufacturers will likely prefer to invest in the further development and segmentation of otherproducts with higher growth potential, such as specialised surface care cleaners or laundry careaids. Nevertheless, the predicted slow economic recovery could make bleach sales achieve betterresults than originally expected, benefiting from consumers’ search for alternative and economichome care options.CATEGORY DATATable 17 Sales of Bleach: Value 2006-2011Table 18 Sales of Bleach: % Value Growth 2006-2011Table 19 Bleach Company Shares 2007-2011Table 20 Bleach Brand Shares 2008-2011Table 21 Forecast Sales of Bleach: Value 2011-2016Table 22 Forecast Sales of Bleach: % Value Growth 2011-2016Dishwashing in Costa Rica - Category AnalysisHEADLINESTRENDSDuring 2011, the dishwashing category remained fairly unchanged in Costa Rica, with localsmaintaining a reluctance to buy dishwashing machines, thereby sustaining the clear dominance ofhand dishwashing within this category, representing 95% of the category’s total value sales. As aresult, the main manufacturers continued focusing on adding value to hand dishwashing formulas,
  6. 6. especially in liquid concentrated products, which are often advertised as mild on the hands and notdamaging to the skin. On the other hand, the cream hand dishwashing format continued competingby offering attractive unit prices, resulting in a broad availability of economy brands (especially inrural areas), which maintained a significant portion of the market share within this quitefragmented category.COMPETITIVE LANDSCAPEColgate-Palmolive was the leading company in dishwashing in 2011 with a 39% value share. Itsleading brand, Axion, is widely available across most local retailers, is offered in a wide range offormats and prices, combines value-for-money and added-value within a single brand, making itattractive to most income segments. In second spot, Irex followed with a 23% value share with itstraditional IREX brand. Industrial Equilab ranked third with its Acibril brand, holding a 9%valueshare, competing with a broad number of other economy brands which base their marketpositioning on affordable prices and product availability (especially in rural areas), making theremaining shares in this category quite fragmented.PROSPECTSAs both the global and national economy continue on a recovery path over the forecast period, thefurther development of added-value products, especially within liquid hand dishwashing, areexpected to boost sales of dishwashing. This is because the hiring of maids will become morerestrictive (given the current shift in the aspirations of Costa Rican women), resulting in morepeople willing to invest in higher quality dishwashing products that have higher qualityformulations and which are gentler on the hands. Nevertheless, dishwashing creams are expectedto remain the most popular format in Costa Rica, benefiting from longstanding use and affordableunit prices.CATEGORY INDICATORSTable 23 Household Possession of Dishwashers 2006-2011CATEGORY DATATable 24 Sales of Dishwashing by Category: Value 2006-2011Table 25 Sales of Dishwashing by Category: % Value Growth 2006-2011Table 26 Dishwashing Company Shares 2007-2011Table 27 Dishwashing Brand Shares 2008-2011Table 28 Forecast Sales of Dishwashing by Category: Value 2011-2016Table 29 Forecast Sales of Dishwashing by Category: % Value Growth 2011-2016Home Insecticides in Costa Rica - Category AnalysisHEADLINESTRENDSDeeper levels of product segmentation and long effect formulations continued being the main
  7. 7. purchase drivers for insecticides during 2011. As a result of the tropical conditions and the broadnumber of insects that can be found in most Costa Rican houses, insecticides are often consideredessential goods by local families, incentivising a significant base of consumers to actively search forvalue-for-money presentations and promotional prices, especially among the low and mid-incomesegments of the population, who remain vulnerable to the effects of the ongoing slow economicrecovery.COMPETITIVE LANDSCAPESC Johnson continued dominating sales of insecticides in Costa Rica, accounting for a total valueshare of 85% during 2011. Its two leading brands, Raid and Baygon, have top-of-mind positioning.Both are available across most grocery retailers in Costa Rica, while offering broad productsegmentation and affordable prices, which makes them suitable to virtually all economic segmentsof the population. Second ranked Corporación CEK accounted for a 9% value share, thanks to itstraditional brand Cruz Verde, which attracts consumers with effective products and affordableprices, although having significantly lower brand recognition and product availability compared tothe two leading brands.PROSPECTSAs the national economy continues its recovery over the forecast period, insecticides sales areexpected to become more disputed and dynamic, with increased competition levels and newlaunches that will offer further product segmentation and safety formulations for use around thehome. Home insecticides are usually considered must have products in Costa Rica (due to theprevailing weather conditions), although their usually toxic formulations often discourage the useof some products, especially among families with children, offering room for manufacturers todevelop effective yet safe formulations and innovative and convenient dispensing formats.CATEGORY DATATable 30 Sales of Home Insecticides by Category: Value 2006-2011Table 31 Sales of Home Insecticides by Category: % Value Growth 2006-2011Table 32 Home Insecticides Company Shares 2007-2011Table 33 Home Insecticides Brand Shares 2008-2011Table 34 Forecast Sales of Home Insecticides by Category: Value 2011-2016Table 35 Forecast Sales of Home Insecticides by Category: % Value Growth 2011-2016Laundry Care in Costa Rica - Category AnalysisHEADLINESTRENDSEven though consumers have traditionally opted for more recognised and usually more expensivelaundry care brands, this situation started shifting at the beginning of the review period when theincreasing offer of value-for-money brands by the main competitors (especially in the case ofstandard powder detergents), began creating positive awareness among consumers, who were
  8. 8. often willing to try such options in return for attractive savings. This trend continued developing,especially after 2009, when consumers began to be significantly affected by the global economicslowdown, and is likely to continue consolidating consumer buying patterns even further.COMPETITIVE LANDSCAPELocal company Irex is the leader in laundry care, accounting for 35% of value sales, due mainly toits leading powder detergents brands Irex (which has an important top-of-mind positioning andtradition among local families) and Fort 3, which are widely available across most local retailers.The company bases its brands’ popularity on good value-for-money characteristics, which havehelped it to consolidate a broad base of loyal consumers. Unilever followed closely in second spotwith 33% of value sales, thanks to its leading powder detergents brands Rinso and Xedex, whichalso benefit from top-of-mind positioning and are often backed by strong marketing campaigns. Inthird place. Procter & Gamble held a 14% value share, thanks to its well positioned powderdetergents brands, Ariel and Fab, which are also available on a large scale across most groceryretailers across the country, benefiting from a well consolidated distribution platform.PROSPECTSThe uncertain macroeconomic situation over the forecast period will lead to an ongoing preferencefor value-for-money brands and is expected to continue driving sales of laundry care products overthe forecast period. At the same time, the incorporation of added-value characteristics andfunctional features should continue to attract mostly mid and high-end consumers, who should bewilling to continue paying higher unit prices of differentiated products, as they are already familiarwith using certain brands. Product innovation, consumer demand for deeper segmentation and thedevelopment of new ecological formulations, should play a significant role in attracting consumerswith higher purchasing capacity, and establish new trends that are expected to continue addingvalue to laundry care sales.CATEGORY INDICATORSTable 36 Household Possession of Washing Machines 2006-2011CATEGORY DATATable 37 Sales of Laundry Care by Category: Value 2006-2011Table 38 Sales of Laundry Care by Category: % Value Growth 2006-2011Table 39 Sales of Laundry Aids by Category: Value 2006-2011Table 40 Sales of Laundry Aids by Category: % Value Growth 2006-2011Table 41 Sales of Laundry Detergents by Category: Value 2006-2011Table 42 Sales of Laundry Detergents by Category: % Value Growth 2006-2011Table 43 Laundry Care Company Shares 2007-2011Table 44 Laundry Care Brand Shares 2008-2011Table 45 Laundry Aids Company Shares 2007-2011Table 46 Laundry Aids Brand Shares 2008-2011Table 47 Laundry Detergents Company Shares 2007-2011
  9. 9. Table 48 Laundry Detergents Brand Shares 2008-2011Table 49 Forecast Sales of Laundry Care by Category: Value 2011-2016Table 50 Forecast Sales of Laundry Care by Category: % Value Growth 2011-2016Polishes in Costa Rica - Category AnalysisHEADLINESTRENDSAs more Costa Ricans adopt modern and hectic lifestyles, the demand for polishes continued losingpopularity in the country, especially as more women are joining the workforce, having less time tospend on keeping floors clean or maintaining impeccable silverware. Another important factorinvolved in the gradual decline of sales of polishes is related to the use of modern buildingmaterials, which can often easily be cleaned with generic surface care products or just water.COMPETITIVE LANDSCAPEReckitt Benckiser continued leading polishes sales during 2011 accounting for 45% of total valuesales, benefiting from the wide availability and top-of-mind positioning of its leading brands,Nugget, Rex and Brasso. SC Johnson followed with a 39% value share, thanks to its recognisedfurniture and floor polish brands Pledge and Klaro. In third place, local distributor Dafesaaccounted for a 4% value share, targeting higher-end niche consumers with the imported Weimanbrand, offering a broad number of specific polishes usually used in high quality furniture finishes.PROSPECTSFurther product segmentation, especially within furniture and floor polishes, is expected to bringcertain dynamism to this category’s sales, as manufacturers will continue to make an effort toattract new consumers by launching convenient and easy to use products that combine cleaningand polish properties in just one product. Consumers’ reluctance to invest much time in home carecleaning activities should force manufacturers to invest more resources in research anddevelopment, aiming to offer differentiated and innovative products that require minimum effortfrom their users.CATEGORY DATATable 51 Sales of Polishes by Category: Value 2006-2011Table 52 Sales of Polishes by Category: % Value Growth 2006-2011Table 53 Polishes Company Shares 2007-2011Table 54 Polishes Brand Shares 2008-2011Table 55 Forecast Sales of Polishes by Category: Value 2011-2016Table 56 Forecast Sales of Polishes by Category: % Value Growth 2011-2016Surface Care in Costa Rica - Category AnalysisHEADLINES
  10. 10. TRENDSDuring 2011 the main manufacturers of surface care products focused on offering attractive pricesand value pack presentations, mainly as a result of the increasing competition levels within thiscategory, as more imported brands (such as Weiman) continued gaining relevance in local retailers,benefiting from the valid free trade agreements, especially with the US, approved throughout thereview period in Costa Rica. Further product segmentation based on specific use purposes (such asfloor, kitchen or glass cleaners) and the offer of appealing new aromas are the main strategies uponwhich local competitors continue to trust, attracting clients who often tend to remain loyal tocertain top-of-mind brands, such as Formula 409 or Brasso, given the similar price levels offered bythe main options available in local outlets.COMPETITIVE LANDSCAPEThe multinationals Clorox and Reckitt Benckiser continued leading surface care sales in Costa Ricaduring 2011, each holding value shares of 27%. These two companies continued to account for asignificant portion of surface cleaners’ sales in the country, given the broad product segmentation,wide availability and competitive prices of their main brands (such as Formula 409, Poett Lysol andBrasso) across most local grocery outlets. This is because they benefit from important economies-of-scale in terms of their production and distribution systems. SC Johnson ranked third holding a16% value share, thanks to the good positioning and availability of its leading brands Klaro, Pledge,and Mr Músculo. Finally, domestic company Grupo Constenla held fourth place with an 11% valueshare, thanks to its traditional floor cleaning brand Tronex, which has gradually become lesspopular due to the increasing offer and competitive prices of more recognised international brands.PROSPECTSOver the forecast period, surface care is expected to continue developing towards a furthersegmentation of consumers’ needs, launching new and specialised products intended to be used inthe broader options of countertop finishes that are now available. Furthermore, with the gradualremoval of import taxes contemplated in free trade agreements entered into over the review periodin Costa Rica (especially with the US), the offer of imported added-value products at relativelyaffordable prices is anticipated to bring dynamism to this category’s sales.CATEGORY DATATable 57 Sales of Surface Care by Category: Value 2006-2011Table 58 Sales of Surface Care by Category: % Value Growth 2006-2011Table 59 Sales of Household Care Wipes and Floor Cleaning Systems by Category: Value 2006-2011Table 60 Sales of Household Care Wipes and Floor Cleaning Systems by Category: % Value Growth2006-2011Table 61 Surface Care Company Shares 2007-2011Table 62 Surface Care Brand Shares 2008-2011Table 63 Forecast Sales of Surface Care by Category: Value 2011-2016Table 64 Forecast Sales of Surface Care by Category: % Value Growth 2011-2016Toilet Care in Costa Rica - Category Analysis
  11. 11. HEADLINESTRENDSThe main manufacturers of toilet care products continued offering new and convenient applicationformats within this category, which has a strong driver towards the offer of fresh scents and anti-germ formulas. New product developments for toilet care often focus on offering practical andinnovative dispensing formats, while competing on prices with existing products, which havealready established a top-of-mind positioning among consumers.COMPETITIVE LANDSCAPESC Johnson sustained its lead in toilet care sales in 2011 with a total value share of 38%, benefitingfrom the strong position of its leading brand Pato, which is offered under a broad range ofdispensing formats and price ranges. Its production systems which enable it to achieve economies-of-scale help this manufacturer offer wide product availability and competitive prices targetingmost consumer groups. Reckitt Benckiser followed with a 30% value share, thanks to its popularHarpic brand, which is also largely available via local grocery retailers at very competitive prices. Inthird place Clorox held a 10% share, focusing on chlorine-based formulations which are highlyeffective in killing most germs and bacteria, although with a limited reduced product offer whencompared to the other leading brands.PROSPECTSToilet care is expected to continue growing at steady rates over the forecast period, due tomanufacturers’ ongoing efforts to create further product segmentation, investing in research anddevelopment to continue adding more value features to their brands, while offering moreconvenient and easy to use dispensing formats. The fierce competition levels should also encouragecompanies to continue investing in the launch of creative marketing campaigns, enabling them tocreate brand awareness while communicating their products’ main attributes.CATEGORY DATATable 65 Sales of Toilet Care by Category: Value 2006-2011Table 66 Sales of Toilet Care by Category: % Value Growth 2006-2011Table 67 Toilet Care Company Shares 2007-2011Table 68 Toilet Care Brand Shares 2008-2011Table 69 Forecast Sales of Toilet Care by Category: Value 2011-2016Table 70 Forecast Sales of Toilet Care by Category: % Value Growth 2011-2016Browse more Research Reports @ http://www.reportsnreports.com/market-research/consumer-goods/Contact Us:
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