Unilever Brazil: Case Write-Up on Marketing Strategies for Low-Income Consumers
Questions
1.Should Unilever target the NE segment? Is the segment attractive and can Unilever compete? What are the pro’s and con’s?
According to the Unilever Brazil case, Unilever already had an 81% share of the Brazil detergent market which far exceeds than its strong competitor Procter& Gamble’s 15% share. However, it is facing a real threat that P&G Brazil may draw on worldwide R&D and marketing expertise is closing up and will attack in low-income segment in the Northeast of Brazil. What’s more, there is no other way to expand Unilever Brazil in detergent market and growing number of small local brands targeted at low-income consumers
…show more content…
Which attributes should be eliminated also is a problem to argue. Choosing the wholesale price is another crucial decision for Unilever. Pricing too high or too low would be produce different problems.
2.Evaluate Unilever’s current brand portfolio. Is a new brand necessary to serve this segment or could Unilever reposition one of its existing brands or simply launch a brand extension? If you think a new brand is necessary, write its positioning statement and choose its name.
As the national leader of clothes washing Unilever’s brand portfolio
- Minerva is already situated in the market as both a laundry soap and detergent powder. This gives the brand a unique advantage to position itself as a line of products that cater to the clothes washing of the residents in the Northeast.
- But Minerva
3.Design the marketing mix. Choose the price, promotion (objectives, message and mix), product (formulation and packaging), and distribution that will allow Unilever to create and capture value for low-income consumers in NE Brazil.
Product: According to the case, the cheapest product Campeiro (wholesale price:$1.70)do not provide the attributes that demanded by the NE segment .Unilever could produce a new brand-S, which could not only comparable to Camperio, but also meet the requirements of low-income consumers.(Unilever may also launch a brand which
I assume that our new brand will be well welcome by the low-income consumer and that Unilever will have a 13% margin. We could have also repositioned Campeiro but it is too well known for being a cheap
Coca-Cola is sold in over 200 countries and had for years done very well in Brazil. A closer look at Coca-Cola's Brazilian market is presented in an article in the Thunderbird (published by the Garvin School of International Management), which delves into the profit problems that Coca-Cola had in Brazil in the early part of the decade of the 2000s. The article, published in 2004, points out that the fast growth of "off-brand" soft drinks, called tubainas, has taken away profits from Coca-Cola, and created huge marketing problems for the giant soft drink corporation. This review of the article, "Coca-Cola's Marketing Challenges in Brazil: The Tubainas War " written by Gertner, et al explores the issues that Coca-Cola has had to deal with in attempting to gain a bigger share of the soft drink market in Brazil.
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
Unilever will want to regenerate their product so that they will be able to be the market leaders for the product again, this is going to be essential for some products where they rely on the business being a good market leader for most of their products. The shareholders will want to know about the business as they will want to have the business sot be the market leader for the company and they will also want to have the product regenerated as quick so that sales are not hit too effectively. They will also want the product to review and test why it has become a decline in sales to make sure that they are going to stop it from happening to other
The purpose of this study is to explore three companies by focusing on how the brands have been performing as well as what the customers and other stakeholders are saying about the different brands. This study will also summarize the strategic issues that the companies and those they are likely to experience in future.
Unilever believes in the sustainable growth and use of renewable sources of energy. It is also very watchful of employee health and has managed to bring down its accidental rate by a high margin. Unilever’s vision includes a better way for living for its consumers and better use of the products that they use. It maintains a high standard of its products by following stringent standards which helps in maintaining consumer satisfaction. Over the years, after working for different social projects like Water conservation and Food for all, it has grown its image as a socially aware and responsible
I am researching the economy of Brazil. The definition of economy: The Management of the income, expenditures, etc of a household, business, community, or government. Careful management of wealth, resources, etc; avoidance of waste by careful planning use; thrift or thrifty use. (1) The system or range of economic activity in a country, region, or community. (2)
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
In 2000, Unilever decided to reduce 1,600 brands down to 400 and then select a small number of them to serve as “Masterbrands”. One of the reasons to have fewer brands is to decrease control issues. It is harder to manage so many brands, especially when each one has its own particularities. As Deighton pointed, Unilever’s brand portfolio had grown in a relatively laissez-faire manner. In other words, the company’s brands were created without large interference.
| Initiative: Efficiency and productivity is key in the companies to achieve their set out merged goals under BRF. Budget: Medium; Considering the amount of time it might take to combine data from both companies with different systems may result in a new system being built, requiring some investment by BRF. Business processes have to be picked and sorted into a new bracket from which optimization of results can be observed quarterly. Elimination of bad/negative business processes are key, and thus this will also require some investment by BRF to figure out. Thus, a good chunk of an investment needs to be made.
The main issue of the P&G Korea case is centered around the question of market share. P&G and Unilever are the two major market shareholders in the Korean detergent industry holding 80-85% of the total market share. The remaining 15-20% of the market is held by low-priced local Korean brands. There are no new markets either company can tap for further market share since most Korean households already use laundry detergent, making the market saturated. Other than peripheral chemical changes claimed to be “improvements”, there are no major innovations to be explored for product development or diversification. Per Ansoff’s strategic opportunities matrix, P&G and Unilever are both focused on Market Penetration,
Stretching over 2,500 miles form east to west and 2,700 miles from north to south, Brazil is the world’s largest tropical country. The only nations that are larger are the lands of Russia, Canada, China and the United States. Brazil has more then 150 million people spread unevenly over its huge land area, making it the fifth most populated country in the world. (Encyclopedia.com) More then two thirds of Brazil’s people live in the cities and towns and more then 29 percent of them are in the ten cities with more then a million people. These include the metropolitan area of Sao Paulo with more then 15 million people and Rio de Janeiro with more then 9 million people. The rural population is mostly concentrated on the East Coast or
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.
The Unilever Group’s report on ice cream stated that they saw volume growth and share gains in most markets. Specifically they saw a strong performance in Western Europe, Mexico, Indonesia and Australia. Much of this growth was due to the Magnum Gold acquisition and the marketing of this product in these markets. Product quality improvements helped their Klondike line achieve strong results in the U.S.A. The Unilever Group maintained a negative price growth in ice cream. The negative price growth reflected slightly lower gross margins, at constant currency, with commodity costs higher.
This market study was based on the well-established Clorox Company which had originally started in 1913. In 2006, after the placement of the new CEO, the company had developed a strategic plan to position them for their 100th anniversary in 2013. The plan was titled “The Centennial Strategy” which focused on long-term accelerated growth and developed metrics to measure the success of the plan. The plan focused on accelerated sales growth which would come from extending existing brands to adjacent categories, entering new sales channels with its existing brands and increasing penetration in countries where Clorox already did business. The Clorox Company developed a “3D” structure consisting of desire, decide and delight. This