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Unilever Case

The recommendation is for a brand extension called Minerva Swift targeting lower income groups. It would be positioned as more efficient and productive than competitors by emphasizing its ability to remove dirt with half the quantity while keeping clothes soft and smelling fresh. The formulation would prioritize cleanliness, whitening, smell/softness, and stain removal based on customer needs. Packaging would include both cardboard boxes for 70% of production and more affordable plastic sachets for 30% to attract price-conscious customers.

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16 views2 pages

Unilever Case

The recommendation is for a brand extension called Minerva Swift targeting lower income groups. It would be positioned as more efficient and productive than competitors by emphasizing its ability to remove dirt with half the quantity while keeping clothes soft and smelling fresh. The formulation would prioritize cleanliness, whitening, smell/softness, and stain removal based on customer needs. Packaging would include both cardboard boxes for 70% of production and more affordable plastic sachets for 30% to attract price-conscious customers.

Uploaded by

varshavarala61198
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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What marketing mix strategy would you recommend?

Address the following issues in the

recommendation:

a) Product

i) Brand (One of the three, Brand Extension, or New)

Brand Extension – The strategy here would be to have a new brand extension of Minerava – Minerva
Swift and market this product as a detergent that has higher efficacy with less quantity. We are also
releasing the product in sachets to acter to the E – income groups. Given that our product would face
competition with ACE and cannibalisation of Minerva, we can tackle this in the following ways:

a. Competition from ACE- Ace has a slightly higher perceived quality index (exhibit 9) and
positions itself as a detergent that primarily focuses on whitening and removal of dirt
(Exhibit 10). Minerva has a higher market penetration and brand recognition than ACE and
we should exploit this to launch the brand extension - Minerva swift into the market by
positioning this as a detergent that is more productive and market it as an “efficient
detergent to remove dirt in half the quantity all the while making your clothes smell and feel
soft” and emphasize on the benefits that cater to their needs.
b. Cannibalisation of Minerva – The price for Minerva is greater than Minerva swift by (). Since
it targets low income groups we can expect a high cannibalisation rate of ()% as the
customers shift from Minerva to Minerva swift offering a product that caters to specific
interests of the customers at lower price. But our profit margin for Minerva swift is
deliberately kept higher and hence this shift would only improve our margins.
Explain how we came up with total cost price of Minerva swift?

ii) Formulation (which benefits to emphasize)

It is important to understand our customer’s expectations and target our product formulations
tailored to their needs. Our targeted customers value the efficiency of the detergent the most i.e, the
ability of the detergent to clean the garments and whiten them with less quantity. A preconceived
behavioural trait of the consumers tells us that they judge the productivity of the detergent through
the quantity of the foam produced. But since the targeted regions already have soft water, it is easier
for our detergent to produce foam. Second would be the smell, softness and third would be the
ability of the detergent to remove tough stains.

According to Exhibit 5, our customers feel that Minerva detergent gives utmost importance to smell,
softness and dissolving power. This is also promoted in the same way as per poster for Minerva in
Exhibit 11. Hence, our approach to formulation would be to prioritise the formulation and allocate
the formulation costs according to our customer needs and also market the product and highlight
these specific benefits. For ex, target the formulation to whiten clothes (increase quantity of bleach)
and foaming ingredients. The formulation would prioritise cleanliness, whitening, smell/softness, the
ability to remove stains in that order and can later focus on dissolving power, packaging and fading of
colours which are among the decreasing importance to our customers.

Explain costing proportions w.r.t formulation?

iii) Packaging (Cardboard or Plastic):

Packing for our targeted customers should be distinctive, relatable, and easily recognizable without
any fancy jargons. Since we are targeting low-income consumers, it is important for us to also
connect with them.
The packaging should also ensure that productivity of the product is not compromised and is easy to
use during humid weather. The detergent inside should be well protected as the customer tend to
use the product over and over during a week. Currently, Unilever’s detergents are sold in cardboard
boxes that cost $ 0.35 for all of it’s three detergent products (Exhibit 10) and sachets would cost
around $ 0.105 (30% of cardboard boxes as given in the case).

Although research shows that the consumers are attached with the cardboard packaging and don’t
necessarily like the sachet packets, we can strategically launch a mix of cardboard box and plastic
sachets with 30% of detergent production packaged in sachets of 100g and 70% packaged in card
boxes of 500g. This will ensure that we are also catering to the E- population who cannot afford 500g
of detergent boxes now and then.(numbers) We will be able to capture the untapped numbers
consumers with E- income. We would not be distributing the 1kg detergent box as much as the
purchasing power if low and may not be able to afford.

In case of brand extension or a new product the same strategy can be followed since packaging costs
remain the same for all the products.

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