A market comparison between the Netherlands and Flanders on the different development of Oxi adaptation.

The Magic of Oxi

“Stains disappear in front of your eyes”

A market comparison between the Netherlands and Flanders on the different development of Oxi adaptation.

University of Groningen University Supervision:

Faculty of Management and Organisations Drs. R.W. de Vries International Business Dr. A. Saka

Ida Maria Aletta de Jong Henkel Supervision:

Utrecht, June 2005 T. Schuffenhauer

The Author is responsible for the contents of this thesis, the copyright lies with the Author.

The Magic of Oxi

“Stains disappear in front of your eyes”

A market comparison between the Netherlands and Flanders on the different development of Oxi adaptation.

The Author is responsible for the contents of this thesis, the copyright lies with the Author.

Preface

That all goods things come to an end is proven here with my thesis. After seven years of studying Management and Organisations it is time to finish my education. The final paper is lying here in front of you.

During the last six months of my education an internship with a company will prepare you for the future. I got the opportunity to fulfil my internship at Henkel Netherlands BV. An internship that not only helps you to carry out your last assignment, but also makes you part of the marketing team with own projects and responsibilities. I now feel confident and prepared for the future.

During the six months at Henkel Netherlands BV there were small and big projects, small and big challenges. Writing this thesis was a big challenge! One of the products I got acquainted to during my internship at Henkel Netherlands BV was Sil Oxi. Struggling in the Oxi segment The Marketing department worked very hard to promote this stain remover. This thesis can hopefully contribute to strengthen the position of Sil Oxi.

I would hereby like to thank my supervisor and the team at Henkel Netherlands BV (Thomas Schuffenhauer and Caroline Zaanen) for giving me the opportunity to explore my interests in International Marketing. And thank them for the pleasant times I had during my internship.

Secondly I would like to thank my supervisors at the University of Groningen, Rudi de Vries and Ayse Saka for their support and effort during the writing process.

Last but not least I would like to thank everybody that is close to me that have put up with me during my writing process. Thanks for all the trust and comforting words in the last months!

Ida Maria Aletta de Jong

Utrecht, June 2005

Management Summary

In 2002 a new Oxi stain-removing product was introduced and since this introduction the segment has encountered an enormous growth. This has led to a shift in the market for stain removers. When Henkel launched its product Sil Oxi in the beginning of 2003 expectations were high. The Oxi segment has exploded and only one company has been able to attract the consumer’s eye. The explosive growth of the Oxi segment and the development differences between the Netherlands and Belgium has resulted in a need for Henkel Benelux to closely monitor consumer behavior.

The research question that was stated for this research is as follows:

The research objective is as follows:

The focus of this research lies on consumer buying behavior. The literature on consumer behaviour describes several stimuli that can influence consumer behaviour

. These stimuli can be divided into marketing stimuli and other stimuli; the economic and demographic stimuli.

The marketing stimuli: product, promotion, place and price show differences between the respondents from the Netherlands and Flanders, but do not immediately explain the differences in the sales of Oxi products. Also the other stimuli, the economic and demographic stimuli, show a lot of comparisons between the Netherlands and Flanders, considering education, income, size of the household and age groups.

According to the research conducted by the Mooij

many consumption differences can be explained and predicted by analysing the relationships between consumption and the scores on Hofstede’s dimensions of national culture. Analysis of the influence of income or culture on consumption at country level over time shows, that when countries converge with respect to national wealth, cultural variables increasingly explain the differences in country level

1 Kotler (1997)

2 De Mooij (2003)

What stimuli influence consumer behaviour, and can the differences in consumer behaviour between the Netherlands and Flanders be explained by cultural differences?

To acquire information for Henkel Benelux on consumer behavior of Oxi consumers in their purchase decision in the Netherlands and in Flanders in order to make

recommendations to strengthen the position of Sil Oxi.

behavior. Two dimensions of Hofstede were chosen to indicate cultural differences between the Netherlands and Flanders. These dimensions were chosen because of the great differences between the Netherlands and Belgium. These dimensions are Uncertainty Avoidance (UA) and Masculinity (MAS). Although the Netherlands and Belgium seem very similar, no two countries with a border and a common language are culturally so far apart. The two regions in Belgium, Walloon and Flanders greatly resemble each other looking at culture

.

The collection of data was derived by administering questionnaires in the Netherlands and Flanders. The questionnaires were administered to supermarket visitors in Amsterdam and Antwerp, in each city sixty two questionnaires were completed.

The collected data were analysed looking at the marketing stimuli, the economic and demographic stimuli together with the variables repurchase and purchase frequency. The marketing mix was analysed for the Netherlands and Flanders pointing out the main differences or similarities. The first marketing stimuli product focused at consumer awareness. The awareness of the consumer is reflected in the questionnaire by asking them to identify which products they know and which products they have used. In the Netherlands as well as Flanders the competitive product Vanish Oxi shows much higher consumer awareness than Sil Oxi. This is also reflected in the usage of these products. Henkel should focus on increasing the awareness of Sil Oxi among prospective consumers by portraying the special features of this product to influence buying behaviour

The second marketing stimuli price was aimed to see if there was a fit between the perceived price and the actual market price of Oxi products. Comparing the answers of the respondents shows that the consumers in Belgium more often considered the price of Oxi products as reasonable compared to the respondents in the Netherlands. There is not fit between the perceived price and the actual market price when it comes to Oxi products in the Netherlands.

Henkel should try to achieve this fit, keeping in mind that the Dutch consumer is very price conscious Henkel should consider lowering the price of Sil Oxi to make it more competitive or increase the package size without changing the price of the product in order to influence buying behaviour.

3 Hofstede (2001)

The third marketing stimuli promotion corresponds to the question how the decision to buy the product was formed. The reasons why consumers were persuaded to purchase an Oxi product were analyzed. A fast majority of the respondents of the Netherlands as well as Flanders say they were persuaded by the commercials on television. This is an influential medium. Furthermore respondents in the Netherlands react to sales folders and on sale promotions, more than in Flanders. If television commercials are not an option, Henkel should use local promotions in supermarkets and drugstores to influence buying behaviour.

The fourth marketing stimuli place compares the place where respondents have last purchased their Oxi product. Most respondents have bought their Oxi products at the supermarket, however a large group of respondents from the Netherlands claim to have bought their product at a grocery store. Henkel should increase promotional offers at drugstores in the Netherlands to increase sales and conversely influence buying behaviour.

The economic and demographic stimuli, tested on education, income, age group and size of the household showed no direct indication of the differences in sales between the Netherlands and Flanders.

Two other factors were analyzed; Repurchase and Purchase frequency. Henkel was eager to know if there were differences in repurchase between the Netherlands and Flanders, and these differences were found. The respondents in Flanders are much more inclined to repurchase and are more loyal to the brand, where respondents in the Netherlands are more hesitant.

There were also considerable differences between the repurchase (and brand loyalty) of Vanish Oxi users and Sil Oxi users. Vanish Oxi users are more loyal to their brand. Henkel should direct attention towards gaining brand loyalty of Oxi users, using for instance promotion as a tool. There were not found significant differences in purchase frequency between the Netherlands and Flanders.

The economic and demographic stimuli, together with the variable purchase frequency have

not resulted in an immediate answer on consumer differences, the marketing stimuli, together

with the variable repurchase, show some differences which provides Henkel with valuable

information to influence consumer behaviour. No immediate answer on the differences in

consumer behaviour in the Netherlands and Flanders can be pointed out; therefore the cultural

dimensions will be tested.

If the different stimuli and the two variables repurchase and purchase frequency cannot explain the differences in buying behaviour, maybe the cultural dimensions can.

For the cultural dimension Uncertainty Avoidance the following hypothesis was stated: The differences in consumer buying behaviour between the Netherlands and Belgium are caused by cultural differences on the dimension Uncertainty Avoidance, since the different described stimuli show great resemblances.

To test if the different score on the dimension Uncertainty Avoidance causes the differences in buying behaviour between the Netherlands and Belgium, three parameters were chosen from the literature. These parameters are; purity in purchase, innovation and expert (independent consumer institutions).

For Uncertainty Avoidance the parameters were operationalised are as follows:

1. The consumer in Flanders is searching for purity in purchase more than the Dutch consumer. This parameter does not hold when it comes to Oxi products, both groups of respondents find the universal concept very appealing. This is important for Henkel since it is the only company with a universal product. Henkel should therefore communicate this specific feature of Sil Oxi to influence buying behaviour.

2. The consumer in Flanders is less open to innovation than the Dutch consumer. This parameter does not hold analysis of the data showed that the respondents in Flanders are more open to innovation than the Dutch consumer. This parameter could explain differences between buyer behaviour between the Netherlands and Flanders. Henkel should invest in quality and innovation in order to influence buying behaviour.

3. The consumer in Flanders puts more importance to independent consumer institutions than the Dutch consumer. This is not true, respondents from both the Netherlands and Flanders say to put great importance in independent institutions. Therefore positive test results should be used in the promotional campaign for Sil Oxi in order to influence buying behaviour.

This hypothesis does not hold, differences in buying behaviour are not caused by

differences on the cultural dimension Uncertainty Avoidance.

For the cultural dimension Masculinity the following hypothesis was stated: The differences in consumer buying behaviour between the Netherlands and Belgium are caused by cultural differences on the dimension Masculinity, since the different described stimuli show great resemblances.

To test if the different score on the dimension Masculinity causes the differences in buying behaviour between the Netherlands and Belgium, three parameters were chosen from the literature. These parameters are; sharing of buying decisions, brand products and importance of advertising.

For Masculinity the parameters were operationalised are as follows:

1. The consumer in Flanders is less likely to share buying decisions with family members than the Dutch consumer. This parameter does not hold when it comes to Oxi products, respondents in both countries do not share buying decisions with family members. Identifying the target group makes it possible to customize promotion and product features to appeal to prospective consumers, and influence buying behaviour.

2. The consumer in Flanders buys more brands than the Dutch consumer. This hypothesis does hold when it comes to Oxi products, the respondents in Flanders are keener on purchasing brand products than the Dutch respondents. Henkel should put effort in giving status to their brands in order to strengthen the brand name. This can be done by altering the physical lay out.

3. The consumer in Flanders puts more importance in advertising than the Dutch consumer. This parameter holds when it comes to Oxi products, the respondents in Flanders put more importance in advertising than the Dutch respondents. Henkel should make an effort to frequently advertise to attract the consumer’s eye.

This hypothesis does holds, differences in buying behaviour can be caused by differences on

the cultural dimension Masculinity.

Assessing the outcome of the research and looking at the marketing stimuli, the economic and demographic stimuli, the variables repurchase and purchase frequency along with the cultural dimensions the following recommendations were be made:

•

Increase consumer awareness by direct advertising and altering product appearance to make it more appealing to prospective consumers.

•

Focus on promotional campaigns on a national level designed for the target group.

•

Use independent consumer organisations test scores to promote unique product features.

•

Focus on female consumers and attract them by advertising and packaging.

•

Communicate the products Universal feature.

•

Use media attention competition to attract new users.

•

Create fit between perceived price and market price by changing the package or lowering the price.

•

Focus on quality and invest in innovation to differentiate from private labels and to fulfill the consumers needs.

•

Increase brand loyalty among consumers using advertising and product portfolio.

•

Use product convenience as important factor to innovate and use Belgium as a

test market instead of the Netherlands.

Table of Contents

Preface ...2

Management Summary...3

Index of Figures and Tables...11

Chapter One Research Model ...13

1.1Problem Statement...13

1.2 Theoretical Framework ...15

1.3 Definitions...17

1.4 Methodology ...18

1.4.1 Desk research-secondary data ...18

1.4.2 Field research-primary data...19

1.4.3 Population...19

1.5 Structure ...19

1.6 Company relevance ...20

1.7 Theoretical relevance ...21

Chapter Two Introduction...22

2.1 Introduction of Henkel Group ...22

2.2 Henkel Benelux ...23

2.3 Introduction of the Market ...24

2.4 Introduction of the segment ...24

Chapter Three The Additives Market...25

3.1 Introduction of the Market ...25

3.2 Development of the segments ...25

3.3 The Competition ...27

3.4 The brand Vanish...27

3.5 The brand Sil Oxi ...29

3.6 Results from the Focus group research...30

3.7 Results from the Consumentenbond research ...32

Chapter Four Literature research on consumer behavior ...34

4.1 Black box of consumer behavior ...34

4.2 Consumer buying behavior ...34

4.2.1 The Marketing Stimuli ...36

4.2.1.1 Product...36

4.2.1.2 Price...37

4.2.1.3 Promotion ...39

4.2.1.4 Place ...40

4.2.2 Other Stimuli ...43

4.2.2.1 Economic Stimuli...43

4.2.2.2 Demographic Stimuli ...47

4.3 The buyer decision making-process ...51

4.4 The buyer Responses ...52

4.5 Cultural Factors on consumer differences ...52

4.6 Cultural Dimensions in the Netherlands and Flanders ...56

4.6.1 Uncertainty avoidance ...56

4.6.2 Masculinity...58

Chapter Five: Research Design...60

5.1 Introduction to research methods ...61

5.2 Introduction to data collection...63

5.3 Reliability, Validity and Quality of the Research ...65

5.4 Expectations of the Research ...66

5.5 Limitations of the research...67

5.6 The questionnaire and the variables ...68

Chapter Six: Cross Country Consumer Analysis...72

6.1 Descriptive Statistics...72

6.2 Key results Marketing Stimuli The Netherlands and Flanders ...74

6.2.1 Product ...74

6.2.2 Price ...75

6.2.3 Promotion ...76

6.2.4 Place...78

6.3 Key results Economic and Demographic stimuli The Netherlands and Flanders...78

6.4 Key results Repurchase and Purchase frequency The Netherlands and Flanders...81

6.5 Results on the analysis of the different Stimuli, Repurchase and Purchase Frequency .83 Chapter Seven: Comparative Analysis on Cultural Factors ...85

7.1 Descriptive Statistics...85

7.2 Results on the analysis of Culture ...89

Chapter Eight: Recommendations and Conclusions ...91

8.1 Conclusions and recommendations on the marketing and other stimuli ...91

Literature...96

Appendix One: Benelux organisation of Sil Oxi ...100

Appendix Two: The Questionnaire ...100

Appendix Two: The Questionnaire ...101

Appendix Three: Key to Symbols...104

Appendix Four: Share of Oxi, Non- Oxi in the Additives Market 2004...105

Appendix Five: Share of Oxi, Non- Oxi in the Additives Market begin 2005...106

Appendix Six: Average price per Unit, Oxi Liquid and Powder The Netherlands, 2004. ...107

Appendix Seven: Average price per Unit, Oxi Liquid and Powder Belgium, 2004. ...107

Appendix Seven: Average price per Unit, Oxi Liquid and Powder Belgium, 2004. ...108

Appendix Eight: Average no promo price per Unit Oxi Products 2004, Reference Price. ....109

Appendix Nine: Results of Consumer Analysis SPSS NL and FL...110

Appendix Ten: Results of Cultural Analysis SPSS...122

Appendix Ten: Results of Cultural Analysis SPSS...122

Index of Figures and Tables

Table One: Index of Henkel Products 20

Table Two: Value Sales Oxi products 22

Table Three: Market Shares Oxi products 22

Table Four: Oxi Reference prices 33

Table Five: Promotion Structure in NL and BE 35

Table Six: Retail Chains in the Netherlands 37

Table Seven: Retail Chains in Belgium 38

Table Eight: GNI 39

Table Nine: GNI per Capita 40

Table Ten: Economic Stimuli 41

Table Eleven: Consumers Confidence Index 42

Table Twelve: Demographics 43

Table Thirteen: Education 44

Table Fourteen: Demographic Stimuli, City 44

Table Fifteen: Hofstede’s Cultural Dimensions Scores 51

Table Sixteen: Product Known NL and FL 68

Table Seventeen: Product Used NL and FL 69

Table Eighteen: Product prices NL and FL 70

Table Nineteen: Product contact NL and FL 71

Table Twenty: Product purchase NL and FL 72

Figure One: The Conceptual Model 11

Figure Two: Segment Division Henkel 21

Figure Three: Test scores of the Consumentenbond test scores 28

Figure Four: The Stimulus Response Model 31

Figure Five: Hofstede’s country scores 50

Figure Six: Income division of respondents 74

Figure Seven: Education division of respondents 74

Figure Eight: Age group division of respondents 75

Figure Nine: Household division of respondents 75

Figure Ten: Repurchase 76 Figure Eleven: Repurchase of Vanish Oxi users and Sil Oxi users 77

Figure Twelve: Purchase Frequency 77

Chapter One: Research Model

In this chapter The Henkel Benelux organisation will be shortly introduced. After this introduction the focus will lie on the problem interpretation, giving rise to the main research question and the research objective. The relevance of this research for Henkel and the theoretical relevance will be outlined. Furthermore the methodology will be introduced and all used definitions will be given. This chapter can thus be used a guideline for this research.

1.1 Problem Statement

Henkel Benelux is a company that produces Fast Moving Consumer Goods. It is active in different product divisions, one of these is Laundry and Home Care. One of the products that is marketed in this division is Sil Oxi, a stain remover with active oxygen. When Henkel Benelux re-launched the brand Sil, an existing stain remover, to the brand Sil Oxi in 2004 the expectations were high. The Oxi segment has grown immensely since the introduction of the first Oxi product in the Netherlands in 2003 and Henkel was eager to increase sales. So far Henkel has not been able to win market share in the Oxi market, which is dominated by Reckitt Benckiser and its product Vanish. Furthermore the market in the Netherlands has been under severe pressure since the price war began in October 2003

.

The explosive growth of the Oxi segment and the development differences between the Netherlands and Belgium has resulted in a need for Henkel Benelux to closely monitor these differences. Close monitoring of the market figures showed that there were significant differences in sales and market development between the Netherlands and Belgium. Henkel therefore wants to know what stimuli influence the buying behavior of Oxi consumers in the Netherlands and Flanders. Furthermore Henkel Benelux is interested to know if these differences are caused by cultural differences between the Netherlands and Belgium. The research in Belgium will only be conducted in Flanders, due to logistical and language limitations. Results from the research are thus limited to Flanders and are not valid for Belgium as a whole. All conditions mentioned above in the problem statement have led to a research question, a research objective and sub-questions to be formulated. Together they will give a thorough look at the complexities of this research problem.

4 The price war was initiated by a Dutch supermarket in an attempt to reduce price differences with other supermarkets, in order to do so they lowered the prices of many products, starting in October 2003.

The research question for this research is concentrated on consumer behaviour and was stated as follows:

Research Question

This research question can be dividend in two different parts, the first part focuses on the stimuli influences that may affect consumer behaviour. The second part attempts to see if the cultural differences between the Netherlands and Flanders cause differences in buying behaviour.

Henkel initiated this research in order to be able to strengthen the position of Sil Oxi on the market. The research objective was stated as follows:

Research Objective

By answering the sub-questions an answer for the problem statement will be given, these sub- questions together are the operalisation of the problem statement.

Sub-Questions

The sub questions form the structure of this research, in Chapter Two a short introduction of Henkel Benelux is presented. In Chapter Three the additives market in the Netherlands and Flanders is described. In Chapter four the literature on consumer behaviour is presented, and in Chapter five the data analysis methods are discussed. In Chapter six the results of the research are presented on the different stimuli and in Chapter seven the results on cultural

What stimuli influence consumer behavior in the purchase of an Oxi product and can these differences be explained by cultural differences?

To acquire information for Henkel Benelux on consumer behavior of Oxi consumers in their purchase decision in the Netherlands and in Flanders in order to make recommendations to strengthen the position of Sil Oxi.

1. What are the main differences between the Oxi Market in the Netherlands and Belgium?

2. What stimuli influence the differences in consumer behavior in the Netherlands and Flanders?

3. What impact do cultural differences have on consumer buying behavior in the Netherlands and Flanders?

4. How can Henkel Netherlands use this information to strengthen the position of Sil Oxi?

differences are presented. Chapter eight will inform Henkel how to use this information to strengthen the position of Sil Oxi in the future.

1.2 Theoretical Framework

The first part of the research question focuses on stimuli that influence consumer behavior in their purchase decision. These stimuli can be divided into marketing stimuli and other stimuli, which are expected to influence the consumer decision-making process and are found in the Conceptual model below. The second part of the research question focuses on cultural factors and questions if cultural differences lie at the base of the differences in the purchase behavior.

Consumer behavior can be seen as a black box, which is influenced by the factors on the left.

The Conceptual model can be drawn for the Netherlands and for Flanders in order to monitor the differences.

Differences?

Figure 1: Conceptual Framework Product

Other Stimuli

Black Box Buyer Decision

Making Process

Cultural Dimensions

Place

Promotion

Price

Marketing Stimuli

Economical

Demographic

Power distance

Masculinity

Uncertainty avoidance

Individualism

The Netherlands

Flanders

The Conceptual model incorporates previous research on consumer behavior that will briefly be introduced here. In this thesis quantitative research will be used to define stimuli that influence the purchase decision of consumers in the Oxi segment in the Netherlands and Flanders. Literature research will be used to identify relevant stimuli and these stimuli will be tested through questionnaires. The questionnaires will be conducted in the Netherlands as well as in Dutch speaking Belgium (Flanders), and will therefore exclude the French part due to language and logistical barriers. In addition to the literature research qualitative research with focus groups conducted by Henkel Netherlands B.V. and MSA group, an agency for marketing research, will be used to get a profound perception of consumer buying behavior.

The focus lies on consumer buying behavior and the stimuli that influence consumers in their purchase decision. The marketing stimuli and other stimuli will be tested to show if and how much influence they have on the consumer buying behaviour. The quantitative research is conducted to answer the sub-questions and conversely answer the first part of the main question of this research. The second part of the main question, which focuses on cultural differences, will use the cultural dimensions as an indicator of differences in buying behaviour between the Netherlands and Flanders.

The buyer decision making process can be seen as a black box, to unravel what stimuli influence the consumer in this process marketers need to look beyond conventional factors and need to identify with their consumers. The stimulus response model shows the stimuli that influence the decision making process. The Black box of consumer behaviour will not be unraveled in this research, it is left over to other researchers to do so.

The dotted lines that connect cultural dimensions with marketing stimuli and the other stimuli with the marketing stimuli demonstrate influences on each other. However, these influences are not taken into account in this research. They are therefore represented in dotted lines, the influences are acknowledged, but fall outside the scope of this research. This research concentrates on the marketing and other stimuli on one side, and on the cultural dimensions on the other side.

Analysis of the influence of income or culture on consumption at country level over time

shows that when countries converge with respect to national wealth, cultural variables

increasingly explain the differences in country level behavior. Hofstede’s five dimensions

model relates to country differences in motives for buying products and services, the degree of dependence on brands, adoption of new technology and media use. According to the research conducted by the Mooij many consumption differences can be explained and predicted by analysing the relationships between consumption and scores on Hofstede’s dimensions of national culture. The research was conducted on product category basis and this research will determine if this statement is also validated on product level

.

1.3 Definitions

Basket Value: Average amount (Euro) spent at the retailer by the retailer’s buyers during the considered period

.

Buying Behaviour: The process that buyers go through when deciding whether or not to purchase goods or services. Buying behaviour can be influenced by a variety of external factors and motivations, including marketing activity

.

Culture: the collective programming of the mind, which distinguishes the members of one group or category of people from another

.

GNI per capita: (formerly GNP per capita) is the Gross National Income, converted to U.S.

dollars, divided by the midyear population

All abbreviations used in the appendices showing market figures such as sales and shares can be found in appendix three, key to symbols.

Market share: sales at the retailer as a percentage of total till roll value

.

Minerva database: international market information system for Henkel Cosmetics and Detergents.

Non-Oxi Product: a product also sold in the stain-removing segment but does not contain active oxygen.

Oxi Product: is a product that contains active oxygen to remove stains from clothes or furniture.

Wobbler: promotional material that you stick on the product shelf at the supermarket or drugstore. Designed to attract special attention from the consumers to the product.

5 De Mooij, M., G. Hofstede (2002) p. 61-p.69.

6 Henkel till roll report BNL (2005)

7 http://www.learnmarketing.net/consumer.htm

8 Hofstede (1991)

9 Henkel till roll report BNL (2005)

1.4 Methodology

The methodology will define all different means used to construct this research. Methods are the way information is gathered and how this information is presented in this research.

According to Baarda (1998) there are three ways data can be collected. These three different methods to gather information are: desk research, observation and field research.

In this research observation has not been used, although it can lead to interesting information about consumer behavior, it will not be part of my research due to practical limitations.

Most of this research will be based on existing literature (desk research) making a distinction between internal and external reports. Internal reports are undertaken and carried out by Henkel, external reports are carried out by third parties independent of Henkel.

To test and identify what stimuli are important for Henkel and if cultural differences are indeed significant enough to cause differences in consumer behavior, field research is conducted through questionnaires. Field research will give more insight in the specific Oxi consumers and their preferences and this can lead to new insights.

In choosing a research design the extent to which literature is known raises an important question concerning the design of the research. In this research a deductive research strategy is chosen, where literature is known and tested for a specific cause

.

1.4.1 Desk research-secondary data

The desk research will provide an overview of existing literature, needed to get a grasp of the theories available. It consists of secondary data, internal and external. A third party assigned by Henkel for a specific research carries out internal research and also annual reports are used as input. Reports, books and articles grant external research from the literature. A selection of this theory will be presented and tested through the questionnaires. All information regarding market figures is derived from the Minerva database, an international market information system for Henkel Cosmetics and Detergents. This database combines market information bought from A.C. Nielsen, an international marketing management company.

10 Saunders, M.N.K., P. Lewis & A. Thornhill (2000)

1.4.2 Field research-primary data

The questionnaires were conducted in the Netherlands and Flanders and will provide primary data on the consumer decision-making process. Through field research opinions and knowledge of consumers can be gathered to identify the relevant stimuli. The information will be gathered through structured questionnaires. With structured questionnaires it is obligatory that the researcher knows exactly what information is needed as input for the research. The questionnaires will be held in the Netherlands in Amsterdam and in Flanders in Antwerp.

They are held to gather information from customers on the four stimuli described in the Conceptual model. The purpose of the questionnaire is to unravel what the consumer knows about Oxi products, and in specific information about Sil Oxi products. Information from the World Bank and national organizations will provide information on economic, social and demographic stimuli, these will be incorporated in the questionnaire.

Furthermore questions will be stated to indicate if consumer differences can be explained by cultural differences. This information will be used to answer the hypotheses in chapter three.

Based on prior knowledge from the literature and from the focus group a selection of questions has been stated. The questionnaire can be found in appendix Two.

1.4.3 Population

Before starting the questionnaires the population needs to be stated

. In this research the population consists of Oxi consumers. The people that fit this profile are called the population. Both persons in the Netherlands and in Flanders will be part of this research population. Because it will not be possible within the given limitations to hold questionnaires with the entire population a sample needs to be taken from the population. In order to conduct a valid and reliable research a representative part of the population needs be taken. This representation of the population are called the respondents. Respondents will be approached in supermarkets in the Netherlands and Flanders, and if they met the selection criteria (being an Oxi consumer) they were asked to participate in the research.

1.5 Structure

The research is built up in three parts, in the first part the literature context will be outlined and in the two other parts analysis will be used to test this context. Different theories on

11 Baarda, D.B., en Goede de, M.P.M., p. 115 (2000)

consumer behavior will be used to get a thorough understanding of relevant factors. These factors will be tested through quantitative research conducted in the Netherlands and in Flanders through closed and semi-closed questionnaires with supermarket customers, which will amount to the second part of the research. In the third part the stimuli are tested to see if the differences in consumer buying behavior are indeed grounded by cultural differences.

The literature research will amount to the descriptive part of the thesis and will look at all relevant factors concerning the topic. It will look at previous research on consumer behavior in order to select relevant factors that will be tested. The focus-group research that was conducted on Oxi consumers was used as a starting point. Information gathered through the focus group was taken into account before drafting the questionnaire. The quantitative research will amount to the analytical part of the thesis. It will look at the relevant stimuli selected from the literature research. The relevant stimuli will be analyzed to see if they indeed contribute to differences in consumer buying behavior in the Oxi segment. And furthermore if these differences are caused by cultural differences between the Netherlands and Flanders.

1.6 Company relevance

Henkel produces Fast Moving Consumer Goods and in this sector innovations are inevitable

and opportunities on the market need to be seized. When Henkel re-launched the brand Sil to

Sil Oxi in April 2004 expectations were high. The explosive growth of the Oxi segment and

the development differences in the Netherlands and Belgium has resulted in a need for Henkel

to closely monitor consumer-buying behavior. Main concerns lie with the development

differences, consumers in the Netherlands seems to have traded Non Oxi products for Oxi

products, were in Belgium they continue to buy both. This has resulted in a doubling of the

market for stain removers in Belgium, while the Netherlands is lacking behind. Developments

on the Dutch market have also put the product under pressure. The price war that was initiated

by a Dutch supermarket in October 2003 has caused a shift in the relationship between

producers and retailers. If products are not promoted and supported sales will decline and if so

retailers have the power to reject products from the supermarkets. This influences distribution,

which adversely influences sale opportunities. Companies and their products then can be

trapped in a negative spiral. Henkel is making a lot of effort to make sure this will not happen

to Sil Oxi. Together with the opportunities on the Belgium market, where the dominance of

Vanish Oxi is much smaller than in the Netherlands, this is reason enough for Henkel to

monitor this market.

1.7 Theoretical relevance

Despite all the research conducted on consumer behavior marketers still do not know how consumers make their purchase decisions. It is the job of the marketers to unravel the preferences of their consumers and many models are available to help them with their search

. In addition to existing data this research is conducted to provide Henkel Benelux with an overview of relevant literature, helping them to unravel the black box of consumer behavior. Furthermore hypothesis are stated to test the claims on cultural differences, this was done on product category level and will now indicate if this also holds for Oxi products.

Together this research is focused on “unraveling the magic of Oxi” for the Henkel Benelux organization.

In this first chapter the problem statement and Conceptual model were presented. In order of a better understanding of the complexity of the research the Henkel Benelux organization is shortly introduced in the next chapter. After reviewing the literature and the market situation, the first section of my research is concluded. The second section starts with the introduction of the data gathering and is followed by the data analysis. The third section then consists of the conclusions and recommendations for Henkel.

12 Marketing Management (2003)

Chapter Two: Introduction

This research is conducted for the product Sil Oxi, which was introduced by Henkel Benelux in the Netherlands and in Belgium in 2004. To accommodate the reader in his understanding of my research I will begin to outline some background information in order to get familiar with the topic. This introduction is therefore used to introduce the company and the business divisions.

2.1 Introduction of Henkel Group

Fritz Henkel (1848-1930) and two companions started Henkel in Aachen, Germany, on the 26th of September 1876. It started as a laundry factory called Henkel&Cie, their first product was a washing powder based on water glass. In 1878 the company decided to relocate to Düsseldorf, where the headquarters of the Henkel Group are still based today. Henkel’s first brand article was Bleich Soda in 1878, and in 1907 Fritz Henkel invented the first self-acting detergent: Persil, named after two of it’s ingredients: Perborate and Silicate. Persil can be seen as the prototype of a trusted brand, and after all these years is still one of Henkel’s most successful brands

.

Henkel is a multinational company that produces fast moving consumer goods worldwide in different areas of business. Henkel operates in five continents, in over a hundred countries, with more then 50.000 employees. With 77 percent of these employees working outside Germany, this makes the Henkel Group one of the most internationally aligned companies in Germany. Henkel has three areas of competence: Home Care; Personal Care; Adhesives, Sealants & Surface Treatment.

For the last years the strategy of the Henkel Group has been to establish Henkel as an international umbrella brand. Under the slogan: Henkel-A Brand Like A Friend, Henkel Group is pursuing the strategy, initiated in 2001, of globalizing the Henkel brand. The company has chosen to pursue this strategy by building on the reciprocal effect whereby major, well-known product brands contribute to the Henkel umbrella brand, while small and medium-sized brands will profit from the strength of this umbrella brand. This form of portfolio planning enables Henkel to commercialize a great variety of products worldwide

.

13 Henkel website www.henkel.nl

2.2 Henkel Benelux

Henkel Benelux is a joint organisation of Henkel Nederland BV, Henkel Luxemburg SA and NV Henkel Belgium SA. Henkel Nederland BV is situated in Nieuwegein and NV Henkel Belgium SA is situated in Brussels. The activities of Henkel Benelux are placed in four independent divisions, with their own sales- and profit responsibilities. In 2002 Henkel Benelux generated a net sales of 459 million Euro

. The four divisions are:

0 Laundry and Home Care 0 Consumer and Craftsmen Adhesives 0 Cosmetics and Toiletries 0 Henkel Technologies

Both companies started out with the introduction of Persil, in the Netherlands in 1908 and in Belgium in 1929. Starting in 1932 the production of washing powder was based in Jutphaas (Nieuwegein) where Henkel Nederland BV is now based. In 1935 the production of washing powder started in Herent, Belgium. Henkel Benelux is now proactively pursuing the opportunities of globalization in order to serve the global customers and business partners.

However, they are aware that a successful business needs a regional and local base to adapt to the widely varying needs of individual markets. Henkel Benelux therefore operates internationally with a big variety of products, and in some cases accommodated the names of their product to a specific country. In the Benelux the main brands are: Persil, Dixan, Sil Oxi, Wipp, Witte Reus, Fleuril, Dato, Bref, Le Chat, Blankin en Instanet.

One group within the marketing department of Laundry and Home Care, being responsible for this brand in both countries, is managing the product Sil Oxi. The Benelux Division structure for Sil Oxi can be found in Appendix One. Sil Oxi was launched in April 2004 in the Netherlands and in Belgium and is marketed as a physically harmonized product. All promotional actions concerning the Netherlands or Belgium are coordinated from the Netherlands. The department of Laundry and Home Care in the Netherlands incorporates the following departments: Marketing, Sales, Trade Marketing and Customer Service Management. The umbrella Benelux departments Purchase, Law and Controlling are located in Belgium

.

14 Henkel a brand like a friend, Year report 2004

15 Corporate Brochure Benelux, Henkel 2004

16 Henkel website www.henkel.nl

2.3 Introduction of the Market

The division Laundry & Home Care is the biggest strategic business unit (SBU) of Henkel Benelux. The division Laundry & Home Care can be divided in: Heavy-duty Detergents, Special Duty Detergents/Fabric Finishers/Laundry Additives and Cleaning and Dishwashing products

.

Heavy Duty Detergents are laundry products for heavy-duty laundry, like sheets and towels.

Special Duty Detergents are laundry products for delicate fabrics and mainly colored laundry.

The most well-known and successful Henkel products, many of which are distributed internationally under different brand names, include:

Heavy Duty Detergents Persil/Le Chat/Dixan, Witte Reus, Spee

Special Duty Detergents Perwoll/Mir/Fleuril, Fewa, Dato. Wipp, Sil Oxi, Saptil Fabric Conditioners Vernel/Silan

Dishwashing Detergents Somat, Pril/Mir /Per

Household Cleaning Products Der General, Dor, Sidol, and Biff

Scouring Products Ata

Floor and Carpet Care Products Sofix, Sapur

Toilet Cleaning Products WC Frisch/Bref, WC Ente Glass Cleaners and Lens Wipes Sidolin/Instanet

Table 1: Index of Henkel Products

2.4 Introduction of the segment

Within the segment of Special Duty Detergents Henkel commercializes the product Sil Oxi.

The Oxi market is a new market that has known an explosive growth since the introduction in 2003. An Oxi product is not a technical innovation, it is primarily a marketing innovation.

Vanish Oxi is sold with the slogan “the stains will disappear in front of your eyes” and has therefore something magic that attracts consumers all over the world. The “magic” of Oxi has attracted millions of consumers in the Netherlands and in Belgium in the previous 2 years.

Henkel has its product Sil Oxi in this segment and is eager to increase sales in the Netherlands and Belgium. The product is sold in both countries but sales show different results and the development of the stain removing segment is also different. Significant differences in sales and market development between the Netherlands and Belgium lie at the basis of this research.

17 Henkel Annual Report 2003, Henkel KGaA Düsseldorf

Chapter Three: The Additives Market

In this research we will specifically focus on the Special Duty Detergents (SPD) and within that division on Additional Treatment. Special Duty Detergents can be divided in the following segments.

3.1 Introduction of the Market

Color & Light

Wool

White Light Duty Detergents

Handwash

Special Duty Detergents

Pre-treatment

Additional treatment

Bleach Additives

Home dry

Figure 2: Segment Division Henkel

Within this research the focus will be on the Additives segment, with special focus on Additional Treatment. Within Additional Treatment we find Oxi – and Non-Oxi products.

This research will look at the development of the Oxi segment, its producers and consumers and the development in the Netherlands as well as in Belgium. In 2002 Oxi products were introduced in the Netherlands and in 2003 in Belgium. This introduction has led to another outcome in Belgium as the Netherlands, and this will be outlined in the next section.

3.2 Development of the segments

In the beginning of 2002 the first Oxi product was introduced in the Additives segment as a

new innovative stain remover. The product was not a technical innovation, but a marketing

innovation by Reckitt Benckiser. They created a new segment and built the category. The

market for stain removers almost doubled in the Netherlands and in Belgium since the

introduction of Oxi. The Oxi segment now shows great importance for companies to defend

their place on the market.

While previously the Pre-treatment segment was providing consumers with stain removers, since the introduction of Oxi, a shift is visible from Non- Oxi products to Oxi products. In the Netherlands the introduction of Oxi products has led to a decrease of the Pre-treatment segment which is much more severe then in Belgium. Belgium still has a solid base of the Pre-treatment segment unaffected by the introduction of Oxi, while in Holland it seems that the introduction of Oxi products drove back sales in Pre-treatment. Along with this development, sales of Oxi products are much larger in Belgium than in the Netherlands. The stain removing market is now much bigger in Belgium, than in the Netherlands. Mathematical reproduction can be found in appendix four. The figure below shows the total stain remover market in time in the Netherlands and Belgium. The value sales are in millions Euro, for 2005 this is only the period until April 2005. Although difficult to compare it does provide information on the market shares of Non- Oxi and Oxi products, as presented in table 3.

Table 2: Value Sales Stain removing Products

In both countries the total market for stain removers doubled. In 2001, before the introduction of the Oxi products, value sales in the Netherlands for Pre-treatment amounted to 6,7 million Euro, the total market in 2004 is estimated on 14,7 million Euro. This is a rise of 120 percent in 3 years time. In Belgium the value sales for Pre-treatment in 2001 amounted to 10 million, the total market in 2004 is estimated on 22,8 million Euro. This is a rise of 128 percent in 3 years time.

Table 3: Market Shares Oxi- Non Oxi Products

In 2004 value sales in the Netherlands amounted to 14,7 million Euro, in Belgium this is 22,8 million Euro. Shares within this segment in the Netherlands are 33 percent Non-Oxi and 67

2001 2002 2003 2004 2005

The Netherlands 6,7 7,0 13,6 14,7 1,7

Belgium 10,0 9,9 14,3 22,8 4,1

2001 2002 2003 2004 2005

The Netherlands

Belgium

percent Oxi, in Belgium 56 percent Non-Oxi and 44 percent Oxi. The market for Oxi products in 2004 in the Netherlands thus amounts to 10,3 million Euro and 4,4 million Euro Non-Oxi products. The market for Oxi products in Belgium amounts for 11,4 million Euro for Oxi products and 11,4 million for Non-Oxi products. In April 2005 the differences in the Oxi segment between the two countries persisted, where the Netherlands had a share of Oxi and Non-Oxi of 77 to 23 percent while in Belgium this was 45 to 55 percent of the additives market. This can be found in appendix five.

In Holland the Market for Pre-treatment is declining while in Belgium it is remaining relatively steady. Also in Belgium the dominance of Vanish is weaker, what leaves more room for other producers to compete on the market. If the trend of Oxi will also persist in Belgium then a large share in the market will be available for the other producers.

3.3 The Competition

The additives segment is scattered by many users, but with an absolute dominance of one:

Reckitt Benckiser. With their product Vanish they dominate the market with a large variety of product forms. In 2004 in the Netherlands they almost had ninety percent segment share, leaving many other fighting for the last ten percent. In the Netherlands main competition comes from Reckitt Benkiser with their product Vanish and from Sara Lee with their product Biotex. In Belgium main competition comes from Vanish, Blan, Blanc and Biotex.

The segment is going through rapid differentiation since the introduction of Oxi powder and now has a wide range of product forms; Powder, Gel, Duo, Mouse and Spray. Powder is still the main product form, more then half of the products sold in the Netherlands are powder products, in Belgium almost 70 percent of the products sold are a powder product. Liquid is winning share, Duo is still very small and Spray is a new innovation, which will have to prove itself in the next months.

3.4 The brand Vanish

Although Reckitt Benckiser was not the first one in the world to sell an Oxi product, it was

the first one to sell Oxi products in the Netherlands and Belgium. A Company called Orange

Glow sold the first Oxi product on a mail order basis in the United States. When Wal-Mart

showed its interest in their Oxi Clean, the product was introduced to retail.

Soon Reckitt Benckiser picked up the concept of an Oxi cleaner and introduced it in the Netherlands by the end of 2002. The successful introduction in the Netherlands provided a model for implementation (using the 4p execution model) and this was used for introducing Vanish Oxi in Belgium mid 2003.

The product by Reckitt Benckiser is called Vanish and is sold with the slogan ´Vertrouw Vanish Vergeet Vlekken´. It is not a technical innovation, but it can be seen as a marketing innovation. The commercials on television that come by in a very abundant way show the consumers a magic moment in front of their eyes. Garments are smothered with stains and disappear while you are watching. The commercials can be seen as a satire on a normal commercial, complete with voice over. In a very outstanding way, the product was introduced in the Netherlands. Screaming pink commercials drew attention to the new product, which had a concept that was almost to good to be true.

Since the introduction of Vanish over 8 million products have been sold, Vanish now has 5 different products available in different sizes and on average has 3.5 products available at every supermarket in the Netherlands and Belgium. Reckitt Benckiser can thus been seen as a first mover when it comes to Oxi products in the Netherlands and Belgium

.

During the research period Reckitt Benckiser has changed their promotional campaign. While at first the campaign was aimed at portraying the power of Vanish, they now take it on against their competitors. A new set of television commercials is used to show the consumers the benefits of Vanish in comparison to other Oxi products. It shows the consumer that Vanish is much better at removing stains than a competing Oxi product. If these commercials came as a result of the test the Consumentenbond did in February of this year is hard to say. The slogan in the commercials is altered into: “Vertrouw Roze Vergeet Vlekken”, directing attention to the bright pink packaging of Vanish Oxi.

Reckitt Benckiser is hereby expending its brand equity. Brand equity is build up by its company name, brand name, symbols and slogans, and underlying associations such as name awareness, and proprietary resources such as trade marks

. Together these features represent the product value for consumers. By distinguishing itself with the bright pink package and overwhelming the consumers with constant television commercials, Reckitt Benckiser is

18 Marieke Copini, Junior trade marketer Reckitt Benckiser, 2005

19 Aaker, D.A. (1991)

increasing the product awareness and builds a defence against competition

. To maintain brand equity requires improving and maintaining brand awareness over time to distinguish themselves from competitors. So far, Vanish has been very successful attracting the consumer’s eye.

3.5 The brand Sil Oxi

The success of Vanish in the Netherlands and Belgium required a reaction by Henkel. In 2004 Sil was re-launched to Sil Oxi. In the Netherlands and in Belgium it was an existing brand within the Laundry & Home Care segment. Sil was originally a pre-treatment product used for heavy stains. It was commercialized in three product forms: Sil Spot Salt, Sil Spot Remover and Sil Spot Tabs. All product forms were sold in the Netherlands and Belgium, but the brand Sil was well known in the Netherlands, while it stayed behind in Belgium.

Henkel was the second company to launch Oxi products in the Netherlands and Belgium.

Henkel can be seen as a smart follower and therefore choices needed to be made. Will you market the same product and differentiate on price or will you differentiate on a different dimension. Henkel decided to focus on the universal usage of the Oxi product. Instead of marketing a large amount of products, Henkel decided to market a range of two products.

Both products can be used in a universal way, what means that they can be used on garments, carpets and furniture without rinsing them out with water. Vanish has different products for different surfaces and thus has a very wide range of products on the shelf. Henkel hoped that a universal product would appeal to consumers.

The re-launch of Sil Oxi from a Non-Oxi stain remover to an Oxi stain remover has brought two new products on the market: Sil Oxi Powder and Sil Oxi Duo. Sil Oxi Duo is a bottle with two different compartments, the first compartment contains active oxygen that will tackle bleach-able stains. The second compartment contains a anti-grease and a bleach boost formula to tackle grease, cosmetic and enzymatic stains. The two compartments together give a boost effect to tackle very heavy stains. Sil Powder and Sil Duo can both be put in the washing machine to intensify the stain removing effect of the washing powder and be used directly on the stain as pre-treatment. Henkel Benelux was the first to launch a duo compartments product on the market, although it didn’t take long for Reckitt Benkiser to

20 Kotler, P. (1997)

introduce their Vanish Dual Power. So far other competitors have not responded to this new product.

3.6 Results from the Focus group research

In 2004 Henkel was the first company to introduce a Dual Chamber Liquid product in the Oxi segment, a clear means of differentiation in the growing Oxi market. The main competitor and category builder, Reckitt Benckiser, quickly responded and launched a similar product. Both Henkel and Reckitt Benckiser choose the Netherlands to be the first country in Europe where this product was sold. Vanish Oxi is hereby posing a strategic threat to Sil Oxi, Henkel Brand management therefore wants to know, to what extent the concept of the Vanish product is seen as attractive to users of Sil Oxi Duo and Vanish Oxi. Furthermore, insights on the comparability (e.g. usage areas) of the product for Vanish users and current Sil Oxi users were assessed and insights on possible sources of business respectively substitution effects on existing products are generated

.

All Dimensions should be assessed if possible for Sil Oxi Duo users as well as Vanish users and including buyers of the new Vanish Dual Power product. MSA Group B.V. has been requested to conduct this qualitative study in order to provide new insights. The Focus group was held in the Netherlands and can therefore only be used to indicate behavior of the Dutch consumer. Apart from this limitation it was used as input for the questionnaires, because it can provide valuable background information. The information provided in the next section, is a selection of the report written by MSA Group B.V

.

Because the issue required both understanding and deep insight of the Oxi consumer a qualitative approach seemed the most useful. Group discussions were opted, as they provide excellent opportunities to generate and evaluate information and ideas. The target group existed of women in the age of 25 through 50 who run an independent household alone or with someone else, who are (co) responsible for shopping, and who are (co) responsible for the laundry. The group discussions took place on the 10th of December 2004. Two group discussions were held, each consisting of 9 participants. These respondents were asked to participate while shopping in the supermarket and the MSA Panel did further selection.

21 MSA Group (2004)

22 MSA Group (2004)

The principal findings of the focus groups can be sought in different areas, for instance washing behavior. It turned out that washing behavior was determined by two factors: the size of the family but also on the activities of the family members

. The washing behavior increases when family members undertake sports or have an occupation, which involves handling dirty material, like a mechanics or a kitchen chef. This has a direct effect on the stain remover segment because they tend to use more products to tackle the stains. There is little brand loyalty with laundry detergents. Most respondents indicate that they always buy detergents on special offer, regardless of the brand. Only one or two from the 18 selected woman buy within an evoked set of brands, and one or two are loyal to one or more types of detergents

.

All respondents admit to be faced with stains in their washing, that cannot always be removed. It is striking that respondents no longer use the pre-wash program of the washing machine when the washing is very heavily soiled. All The respondents questioned make use of one or more types of stain remover (this was the selection criteria for participation). The specific stain removers mentioned are Vanish, Ossengalzeep, Sil Oxi, Sunlight zeep, Biotex, Shout and Quick&Bright. Most women use the products simultaneously, such as pre treatment on the stain and as a laundry boost in the washing machine. The idea of Oxi is known among the women and is translated as oxygen with the ability to tackle stains.

Respondents are generally familiar with Vanish as a brand with Oxi products, one or two name Biotex and Sil.

The Vanish commercials on TV are found intriguing by the focus group, where it arouses curiosity but also evokes the necessary questions. The manual on the bottle is seen as unclear, where the process of treatment is seen as time consuming. It gives Vanish a somewhat aggressive image. The commercials are also perceived to good to be true in the way that the women in the focus group feel misled by the possibilities of stain removing

.

The Oxi duo product of both Vanish and Sil was not known by the focus group, in response to the Sil Oxi duo bottle they claimed that it was unclear that it was a duo product in the shelf situation. When the bottle is placed on the shelf the consumer is unable to see the 2 compartments. The Sil brand name did evoke associations with old-fashioned stain removers

23 MSA Group (2004)

24 MSA Group (2004)

25 MSA Group (2004)

without Oxi. Sil is said to be a trusted brand within this segment, but is no longer available in the Netherlands. That Sil Oxi is an universal product gives Sil an added value versus Vanish, it sounds less aggressive and seems safer for clothing. The conclusion was that the dual products are reasonably known, thanks to the great media attention by Vanish. Sil Oxi can therefore ride along on this media wave that attracts people to the supermarket section. At product level Sil has a number of advantages versus Vanish Dual Power, but these are not clearly communicated. Product features such as universal applicability use on coloureds and whites and that it can also be used on older stains are strong points for Sil Oxi Duo.

3.7 Results from the Consumentenbond research

The Consumentenbond is a Dutch organisation, that gives independent and objective advise to help consumers in their purchase decision. Not only do they test and publicise a large variety of products, they also give legal advice. In the Netherlands in 2005 the Consumentenbond has 594.324 members and is often consulted in the purchase of a product

. The Consumentenbond also has a sister organisation in Belgium, which is called the VerbruikersUnie. It has the same principles as the Consumentenbond, but does not provide legal advice. In 2005 the VerbruikersUnie had nearly 300.000 members

. In the edition of February 2005 the Dutch Consumentenbond tested Oxi products to see if they indeed did what they promised. It is therefore important to know the outcome of the research for it is possible that this test indeed affected consumer-buying behavior in the Netherlands. The Oxi products were tested by adding the product as an extra to washing powder and comparing the ability to remove stains to the result without Oxi products. The Oxi products were also used on three different stains on carpet and furniture.

26 www.consumentenbond.nl

27 www.testaankoop.be

28 Consumentengids, februari 2005, Oxivlekkenmiddelen p51-p52

The figure above shows the test scores of the Consumentenbond for the different products.

The products were tested on the following stains: coffee, tea and red wine, grass, chocolate milk, gravy and motor oil and foundation, on these stains Oxi products were used as a laundry boost in the machine. The products were also tested on furniture and rugs on the following stains: wine, chocolate milk and gravy. The orange column shows the test values that the products were given according to their ability to tackle the different stains.

The Consumentenbond had a very strict verdict, since none of the Oxi products were able to tackle enzymatic stains, none of the products was worth to be called best buy. Where the products state that they are universal (Sil Oxi) or Multi they were treated this way but were not able to convince. Bleachable stains on clothing can best be removed with Biotex Oxi or Sil Oxi, Actiff Oxi is the best value for money product. Bleachable stains on furniture and carpet can best be removed with Kruidvat Oxi and Trekpleister Oxi, which have the best value for money index

.

29 Consumentengids, februari 2005, Oxivlekkenmiddelen p51-p52