Unilever in Brazil

3874 WordsOct 7, 201016 Pages
Unilever is a solid leader in the Brazilian detergent powder market with an 81% market share. Laercio Cardoso must decide: (1) whether Unilever should divert money from its premium brands to target the lower-margin segment of low-income consumers; (2) whether Unilever can reposition or extend one of its existing brands to avoid launching a new brand; and (3) what price, product, promotion, and distribution strategy would allow Unilever to deliver value to low-income consumers without cannibalizing its own premium brands too heavily. This case deals with the question of whether marketing and branding create value for really poor consumers. It can therefore be used in an MBA, executive education or undergraduate core course on marketing…show more content…
Our objective is to: Penetrate other segment and leverage market understanding, Gain defensible scale in some regional or global segment and consolidate the local MNC. Unilever must deal with the competition available in the market on the 2 sides: -Laundry powder: with P&G Ace product. -Laundry Soap bars: with ASA Brazilian company. Finally when the company identifies its challenges it can put the right solution to be able to reach its long-term goals. Question 2 Analyze the market opportunity offered by the low-income segment relevant and describe the relevant consumer behavior of consumers in this segment. 65% of the world's population earns less than $2000 each per year that's around 4 billion people. But despite the vastness of this market, it remains largely untapped by multinational companies .The reluctance to invest is easy to understand. Companies assume that people with such low incomes have little to spend on goods and services and that what they do spend goes to basic needs like food and shelter. But the buying power of poor communities is actually quite large. China, India, Brazil, and gradually South Africa become new engines of global

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