Unilever Brazil Case

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Unilever in brazil — Document Transcript
* 1. This case deals with Unilever home care division and in specific the detergent brands in the two major regions in Brazil :The North East and the South East .Major differences exist between these two regions in terms of wealth, culture and needs that influence the performances andsales of Unilever detergent brands available in the Brazilian market.We will explain in a little introduction Unilever the company, its competitor and its performances in the detergent market.Finally, we will present a proposal on what can be done in the North East of Brazil to efficiently perform and get the bestout of the low income consumers.UNILEVERS PRINCIPLESMission StatementOur mission is to add vitality to life.We meet the every day needs for nutrition, hygiene and personal care with brands that help people feel good, look good andget more out of lifeUNILEVER : THE COMPANYUnilever was created in 1929 by the merger of the Margarie Unie company of the Netherlands and Lever Brothers of theUK.At that time of the merger , these companies already had substantial international presence through trading and supplyoperations.One Key reason for the merger was to combine their supply of oils and fats.Unilever is the worlds second largest consumer goods business after Phillip Morris.Unilever has achieved a market capitalization of 64 Billion $ ranks 43 on the list of fortune global 1000 multinationals.It manufactures and sells over 1800 different brands through 300 subsidiary companies in 88 different countries worldwideand employs more than 270,000 people.Unilever expanded from being essentially a laundry soap and margarine business into other mass-market consumercategories such as frozen foods , ice cream, tea, package soups and personal care hygiene.Unilever also followed a strategy of vertical integration to secure key raw inputs and services and entered into operationssuch as oil milling, plantations, chemicals and packaging. They alsa expanded into new countries in Africa, Asia, TheMiddle East and Latin America.Every day, all around the world , 150 Million people choose to make Unilever products part of their lives.Unilevers brands are regrouped into 2 main categories :1- Food category2- Home and Personal CareThe Food category, includes brands such as Flora, Bertolli, Heart, walls ,Amora, Knorr, Lipton, Slim Fast etc...The Home and Personal care category includes Axe, Comfort, Cif, Domestos, Dove, Lux, Omo, Ponds, Rexona, Signal,Close-up, Sunsilk, Organics, Vaseline etc... * 2. As of the year 2000, Unilever decided to reduce its number of brands from 1600 to 400 leading brands, under a strategycalled "The Path to Growth"This will enable the company to concentrate its resources by focusing on producing exciting innovations and imaginativeways to capture the attention of the customers and the consumers.Unilever has many big and serious competitors in its field but the most close and aggressive is Procter and Gamble.Question1Outline the challenge facing Unilevers home care division in relation to the North East region in the late 1990s.Unilever home care division is facing many challenges concerning their ability of growing and sustaining actual marketshare of 86% whereby Cordoso must decide:1- Whether Unilever should divert money from its premium brands to target the lower - margin segment of low incomeconsumers2- Whether Unilever can reposition or extend one of its existing brands to avoid launching a new brand3- What price, product, promotion, and distribution strategy would allow Unilever to deliver value to low incomeconsumers without cannibalizing its own premium brands too heavily .The question of whether marketing and brandingcreate value for really poor consumers. It can therefore be used to illustrate the value of marketing and the marketingapproach, or to explore the frontiers of branding. This can also be in a consumer behavior in order to examine themotivation and decision...
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