Scribd
Upload
129 views

Unilever in Brazil: Go/No Go Decision

The document discusses Unilever's potential strategy for targeting low-income consumers in Brazil. It recommends launching a new detergent brand that would have quality attributes demanded by low-income consumers but at a lower price point than existing Unilever brands. The new brand would be positioned between Unilever's Campeiro and Minerva brands to appeal to Northeast Brazil's large low-income consumer base without cannibalizing Minerva sales. Its marketing mix would include competitive pricing, emphasis on key product attributes, promotional activities in local media and specialized distributors. The strategy aims to open a new consumer segment and market share for Unilever in Brazil.

Uploaded by

rizqighani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
129 views

Unilever in Brazil: Go/No Go Decision

The document discusses Unilever's potential strategy for targeting low-income consumers in Brazil. It recommends launching a new detergent brand that would have quality attributes demanded by low-income consumers but at a lower price point than existing Unilever brands. The new brand would be positioned between Unilever's Campeiro and Minerva brands to appeal to Northeast Brazil's large low-income consumer base without cannibalizing Minerva sales. Its marketing mix would include competitive pricing, emphasis on key product attributes, promotional activities in local media and specialized distributors. The strategy aims to open a new consumer segment and market share for Unilever in Brazil.

Uploaded by

rizqighani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Fadlilah Afif Alauddin

29118237
Unilever in Brazil

Go/No Go Decision

If I was in his position at that time, I will decide that Unilever in Brazil should target low-income
consumers. Just like what he said:

If we get the right strategy, low income consumers will be ready to pay for our brand and Omo buyers
won’t move. Also, think about the expertise that we would gain, which we could apply to our other
categories. If we become a leader in marketing to low-income consumers I bet that financial analysts will
praise us and that top students will line up to interview with us.

There is no other way to grow other than expanding into new segments. But, there will be some
implications for short-term and long-term implications.

For short-term Unilever will need more money to be invested for setting up infrastructure and
facilitating marketing activities. This causes the diversion of funds earmarked for the premium brands,
affecting their promotional activities. The positive side of such a move is that Unilever can obtain first
mover advantage in a fast growing market and this momentum, if utilized effectively can bolster out
market leadership in this category.

For long-term implications, if we employ the right strategy, a whole new class of consumer
segment will be opened up for Unilever. A suitable positioning of the product in the perception map will
ensure that the new product does not cannibalize the market of the flagship brand, Omo.

Brand and Marketing Strategy

 Value Proposition

Value proposition refers to a business or marketing statement that a company uses to


summarize why a consumer should buy a product or use a service. This statement convinces a potential
consumer that one particular product or service will add more value or better solve a problem than
other similar offerings will. Companies use this statement to target customers who will benefit most
from using the company's products, and this helps maintain an economic moat.[1]

There’s nothing wrong with the existing positioning of Unilever’s three detergent brands. It just
because Brazil is developing country like in India, where they were lose against P&G, we can’t force
people from developing country to buy premium brand. So, if Unilever want to grow, want to take all
the market, they need to adapt to any environment, culture and economic level in every country.

Do we need to develop a new value proposition? Yes, in fact, in every country we should
develop a different value proposition, so people in that country will notice our brand. For Brazil we need
to make a new brand with a low price but have a good quality.
 Brand Strategy

Brand strategy is a long-term plan for the development of a successful brand in order to achieve
specific goals. A well-defined and executed brand strategy affects all aspects of a business and is directly
connected to consumer needs, emotions, and competitive environments. [2]

So, in order to achieve our goals, I believe that the most profitable strategy for breaking into the
low cost market segment is to launch a new brand. At present our low income brand Campeiro is simply
not providing the attributes quality, that is demanded by the low income consumers. Consumers have
stated that they want cleanliness, whitening, productivity, smell, softness, ability to remove stains
according to surveys in exhibit 5 of the case.

Picture 1 Exhibit 5

The new brand will be a detergent powder. According to exhibit 3 of the case, percentage of
consumers buying detergent powder in a year is higher than buying laundry soap in a year.
Picture 2 Exhibit 3

This new brand will be positioned as a middle ground to Campeiro and Minerva. It will deliver
the demanded attributes at low cost to low cost consumers whilst maintaining a reasonable margin. I
think that positioning the product on quality and just below Minerva can avoid cannibalization of
Minerva, gain market share from competitors below Campeiro, defend Unilever’s position to outside
competitor’s and all whilst growing overall market share in the Brazillian Market.

Since our target segment is low cost consumers, so we will targeting our market to low income
groups of Northeast Brazilian, and the business we are looking is Northeast Brazilian Fabric Wash
Market. According to exhibit 3 of the case, it show that in the Northeast have more people categorized
to social classes D, E+ and E-.

Picture 3 Exhibit 2
Marketing Mix

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion
and Distribution. However, nowadays, the marketing mix increasingly includes several other Ps like
Packaging, Positioning, People and even Politics as vital mix elements.[3]

 Product
Product quality must be better than Capeiro and to be sold in boxes of multiple types and sizes.
The primary benefits of the new product will be in line with Attributes that are most important
to NE consumers, such as:
1. Cleanliness, whitening, productivity
2. Smell, softness
3. Ability to remove stains
 Price
Price should be ideally between Minerva and Capeiro.
 Promotion
Promotional activities to take place in mass media as well as in the areas where the target
customers reside.
 Distribution
The existing distribution channels may not be of much use. May look into highly specialized
distributors, who have knowledge and access of the pockets where the low income consumers
reside.

Source:

[1] https://www.investopedia.com/terms/v/valueproposition.asp

[2] https://aytm.com/blog/introduction-to-brand-strategy-part-1/

[3] https://economictimes.indiatimes.com/definition/marketing-mix

You might also like