November 5, 2012
Marketing Case 3
Laercio Cardoso has been given the task of exploring growth opportunities for Unilever through the marketing of its products to low-income consumers in Northeastern Brazil. He has to decide how he will target and position given this market segment, and whether he needs to completely change the current Unilever marketing brand strategy. Recommendations
I recommend that Unilever develop a new hybrid product called Juno that combines the basis and affordability of its Campeiro brand, but includes many of the added benefits of its Minerva brand. Unilever should determine a price that is affordable by most consumers and a marketing strategy that utilizes an even blend of mass media and below the line marketing which pinpoints low-income families directly but in a discrete way that doesn’t offend them. It should distribute primarily via specialized distributors. Basis For Recommendations
I recommend that Unilever market and sell to low-income families in Northeastern Brazil by producing a product called Juno, one that is most similar to Campeiro, but also delivers Minerva like benefits. While it could just market Campeiro, it probably wouldn’t deliver the results that Northeastern consumers seek as their main source of cloth cleaning, as they are said to be frequent washers who value a reputation of cleanliness. While the brand is cheap, it has currently captured only 6% of the market in the Northeast, as opposed to the much higher frequencies of other detergent brands. Therefore, it seems Unilever needs to do something different with it if it wants to reach out to low-income families, which is why I advocate adding distinct Minerva-like qualities. Unilever could establish a positioning statement such as “For price conscious buyers, Juno offers the perfect detergent option because its affordability doesn’t compromise its effectiveness.” In order to create and be able to sell Juno, Unilever would...
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