Unilever Brazil Case
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Transcript of Unilever Brazil Case
Kathy PuchalaParveen KumarPrakhar JainStephan Heinrich
Paris, 4 May 2009
Unilever in Brazil (1997-2007)
Marketing Strategies for Low-Income Consumers
International Marketing Case - Unilever in Brazil2
Agenda
Introduction to the Brazilian Market
Why the Low-Income Segment Should be Targeted
Implications of Targeting the Low-Income Segment
Brand Portfolio and Positioning
xxx
xxx
International Marketing Case - Unilever in Brazil3
Agenda
Introduction to the Brazilian MarketIntroduction to the Brazilian Market
Why the Low-Income Segment Should be Targeted
Implications of Targeting the Low-Income Segment
Brand Portfolio and Positioning
xxx
xxx
International Marketing Case - Unilever in Brazil4
High Success in the Overall Brazilian Detergent Powder and Laundry Soap Market
Brand Portfolio
• Omo (powder premium brand)• Minerva (sold as powder & laundry soap)• Campeiro (cheapest powder brand)
81% market share in detergent powder category
Vs. 15% market share of P&G, the next biggest competitor
International Marketing Case - Unilever in Brazil5
Low- Income Consumers in Northeastern Brazil Constitute a Large but very Specific Customer Segment
Demographic Background
• 48 million low-income consumers
• 28% of Brazil‘s total population
• 40% illiterate
• Per capita income of $ 2,250
• 53% live on less than two minimum wages
Laundry and Detergent Use Patterns
• Clothes washed frequently due to few clothes and more time
• Pleasurable activity (washing in a public laundry, river, or pond; meeting and chatting with friends)
International Marketing Case - Unilever in Brazil6
Agenda
Introduction to the Brazilian Market
Why the Low-Income Segment Should be TargetedWhy the Low-Income Segment Should be Targeted
Implications of Targeting the Low-Income Segment
Brand Portfolio and Positioning
xxx
xxx
International Marketing Case - Unilever in Brazil7
Fierce Competition and Multiplication Effect To Other Product Categories
Detergents are Cash CowDetergents are Cash Cow
CompetitionCompetition
• Fuel for growth in the food and personal care categories
• P&G drawing on worldwide R&D and marketing expertise is closing up and will attack in this segment
• Threat of small local brands targeted at low- income consumers
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International Marketing Case - Unilever in Brazil8
Particularly the Detergent Powder Market is Highly Lucrative and Growing but Competitive
• 17% annual growth rate• High barriers to entry• Market $106m with share of $79,5m
• 6% annual growth rate• Low barriers to entry• Market $102m with share of $19,38m
Detergents Powder MarketDetergents Powder Market Laundry Soap MarketLaundry Soap Market
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International Marketing Case - Unilever in Brazil9
Agenda
Introduction to the Brazilian Market
Why the Low-Income Segment Should be Targeted
Implications of Targeting the Low-Income SegmentImplications of Targeting the Low-Income Segment
Brand Portfolio and Positioning
xxx
xxx
International Marketing Case - Unilever in Brazil10
More Positive Effects of Targeting the Low-Income Market in the Short- and Long-Term
Long-Term ImplicationsLong-Term Implications
Short-Term ImplicationsShort-Term Implications
• With the right strategy, low income consumers will be ready to pay for a new brand and Omo buyers will not move
• Becoming a leader in low-income consumer marketing
• Money has to be invested and therefore diverted from premium brands to low
price brand
• Gaining momentum and first mover advantage in a fast growing market
International Marketing Case - Unilever in Brazil11
Agenda
Introduction to the Brazilian Market
Why the Low-Income Segment Should be Targeted
Implications of Targeting the Low-Income SegmentImplications of Targeting the Low-Income Segment
Brand Portfolio and Positioning
xxx
xxx
Current Brand Portfolio
International Marketing Case - Unilever in Brazil12
Why Brand Extension required
International Marketing Case - Unilever in Brazil13
International Marketing Case - Unilever in Brazil14
Price Index
International Marketing Case - Unilever in Brazil15
Price Index
Positioning Statement
• Who we are– Major manufacturers in Food, Home care and Personal care
• What business are we looking– NE Brazilian Fabric Wash Market
• Who is the Target Market– Low income groups of NE Brazil
• Need of the Target Market– A Detergent powder(like Omo) at an affordable price with better
characteristics than detergents like Campeiro
• Competitors– Invicto , Pop, Campeiro
• The USP– The Cleaning ability comparable to a Laundry soap
International Marketing Case - Unilever in Brazil16
Positioning Statement
“To the women who give cleanliness the highest priority. Campeiro Plus is a detergent powder which gives you a
better cleaning power with much less effort than the similar priced competitors.”
International Marketing Case - Unilever in Brazil17
Thank You Very Much For Your Attention!