Unilever in Brazil

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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 management to illustrate the value of marketing and the marketing approach, or in a brand management course to explore the frontiers of branding. This case can also be used in a consumer behavior course to examine the motivations and decision-making process of low-income consumers. Alternatively, it can be used in a global marketing or global strategy and management course to study the way multinational companies adapt their strategy to compete in emerging countries. The case and teaching note contain color exhibits. A media support CD-ROM '504-009-9' is available to accompany the teaching note. Two PowerPoint presentations (in PDF format) '504-009-9A' and '504-009-9B' are available to accompany the teaching note.

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 and sales 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 best out of the low income consumers. UNILEVER'S PRINCIPLES

Mission Statement
Our 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 and get more out of life UNILEVER : THE COMPANY
Unilever was created in 1929 by the merger of the Margarie Unie company of the Netherlands and Lever Brothers of the UK.At that time of the merger , these companies already had substantial international presence through trading and supply operations. One Key reason for the merger was to combine their supply of oils and fats. Unilever is the world's 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 worldwide and employs more than 270,000 people. Unilever expanded from being essentially a laundry soap and margarine business into other mass-market consumer categories 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 operations such as oil milling, plantations, chemicals and packaging. They alsa expanded into new countries in Africa, Asia, The Middle East and Latin America. Every day, all around the world , 150 Million people choose to make Unilever products part of their lives. Unilever's brands are regrouped into 2 main categories :

1- Food category
2- Home and Personal Care
The 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, Pond's, Rexona, Signal, Close-up, Sunsilk, Organics,...
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