Unilever Brazil Essay

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Executive Summary

Unilever is assessing whether to enter the low-income NE market. Our analysis shows that there is a profitable opportunity to offer detergent powder to low-income customers living in Northeast Brazil and capture market share in a high-margin, high-growth market. We recommend that the firm keeps the existing brands but deploy a horizontal extension of the Campeiro brand - adding better scent / softness and utilizing specialty distribution network, thereby marginalizing Invicto, an inferior but better-known competitor.

Situation Overview

NE Brazil has long lagged behind the rest of the country in terms of technology and income. However, economic reforms instituted by Finance Minister Cardoso has seen the
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We will target the following market:
• Customer: Low-income consumers in NE Brazil
• Company: Unilever
• Collaborators: Special store owners as low-income consumers do not shop in wholesale and get financing and advice from specialty owners
• Competitor: Invicto
• Context: Increasing purchasing power in NE and role of powder as fragrance / softening agents

Our value proposition to this segment will be: An affordable detergent powder with a “special touch.”

We will deploy the strategy as follows:
• Products: “New and improved” Campeiro with enhanced smell and softness o Smell / softness is ranked second only to whiteness in perceived importance by consumers, but going after whiteness has potential to cannibalize OMO (see Action Rationale section for more details) o The added fragrance should be at a level just enough to set Campeiro apart from Invicto, but far enough from Minerva to prevent cannibalization
• Brand: Campeiro
• Price: Same price – whole sale of 1.7 / kg
• Distribution: Specialized distributors that can increase awareness of target audience at a lower variable cost than generalist wholesaler; specialized stores are significant influencers of target customer’s behaviors
• Incentives: Launch new Campeiro via specialized distribution as larger campaign to influence small shop owners; give away free samples to specialized store to promote awareness to small shops; use more point-of-purchase marketing as small shop owners are more
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