Developing a Product that Brings Soap Users to the Detergent Market in Brazil

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The Decision
Exhibit 1 shows the detailed analysis of the market. Clearly, the majority (relative to individual detergent brand) of the users are still in the soap segment. To grow, Unilever could choose to steal market shares from other players. However, neither P&G nor local brands have large market share. Thus, a better way to grow is to penetrate market of laundry soap. Although Unilever has shares in laundry soap, the major players in laundry soap market are local brands. Therefore, cannibalization is not a huge issue. Then, the strategy should be focusing on developing a product that brings soap users to detergent market. Value Proposition

There are a number of major reasons why soaps are popular in NE Brazil including: 1) price 2) water hardness 3) leisure while doing laundry. Existing detergents such as Omo or Compeiro bring none or very few of these values to customers. Although it is excellent in removing stain, it requires customers to invest a large amount into laundry machine and water refinement to fully apply detergents’ convenience and effectiveness. Thus, it makes sense for the company to develop a new detergent that work for women who are used to hand wash. Since hand wash historically requires a great amount of efforts, the new product should be aimed to 1) eliminate the amount of efforts. Meanwhile, it is applied on skin constantly. The chemicals 2) should not irritate skin. Furthermore, since the detergent is used mostly in river or public laundry. It must 3) easily dissolve in regular water. Finally, 4) the price must be low enough to set no barrier for soap users to enter detergent market. Exhibit 2 illustrate a contrast of this new product (Minerva+) to other detergents and soap. Product

A typical usage of the new detergent: A local housewife, whose husband supports the entire family, purchased this new detergent at price on par with soap from local grocery store. She bought the Family Value Package, packed in a large cupboard box...
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