Unilever in Brazil

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Case report
Unilever in Brazil, Part II
Marketing Strategies to conquer
North Eastern market

Members:Nico Schwendinger
Alexandra Klopf
Konstanze Horak
Elif Kurtulus
David Muhr
Date:28 November 2009

Table of contents

2Problem Statement3
3 Alternatives3
3.1 Turn something old into something special3
3.2 Mix & Mingle to form something new4
3.3Keep it simple!5
4 Issues5
4.1 How does the product fit the way of washing clothes?5
4.2 How do the products have to be promoted to best reach customers?6
4.3 How can Unilever best skim the market without cannibalizing its portfolio too much?6
4.4To what extent does the company have to adapt its distribution to reach low-income

Unilever, the market leader of detergents in Brazil, does not want to rest on its laurels. Therefore, the company’s management has decided to conquer the North Eastern market (see Unilever in Brazil, Part 1), which Unilever has not yet been able to saturate. Most of all, the low-income segment seems to offer further growth potential, which the company is willing to make use of and thus laying the foundations to prove itself ultimately as the clearly predominant market leader in Brazil. After familiarizing the reader with the existing problem situation, this case study presents alternatives and discusses relevant issues. This approach aims to weigh the alternatives according to their strategic capability of solving the problem situation and finally recommends the most advisable way of acting in a conclusion. 2Problem Statement

Admittedly, even in the North Eastern market Unilever seems to perform pretty well. On the other hand, as already mentioned, the company has still not managed to attract the local low-income customers. This is probably not only due to the fact that Unilever Brazil lacks substantial experience in this segment as there are huge differences between its typical Brazilian customer and this low-income consumers, but also to obvious barriers in distribution and promotional activities in this market. Unilever now deals with the challenge to find the strategy that constitutes of the right balance of their marketing mix elements in order to address this customer segment appropriately and therefore represents the key to enormous future success. 3Alternatives

3.1 Turn something old into something special
In order to conquer the Northeastern market, Unilever may consider repositioning its cheapest brand Campeiro. Campeiro is currently not very well perceived by Northeastern Brazilians. Especially in terms of cleanliness, whitening productivity, smell and softness (the most important attributes of detergent powders for Northeastern Brazilians) Campeiro is ranked well behind other detergent brands. Therefore, an intensive new marketing campaign should be started in order to discard Campeiro’s bad image. Campeiro’s formula may be changed slightly and scents may be improved. Although the product is changed only a little bit, „the new formula“ would be advertised aggressively. Unilever may also consider adapting the brand name to Novo Campeiro in order to emphasize the message of a new and improved Campeiro. Advertising messages would strongly promote Campeiro’s new cleaning and whitening power and its irresistible scent. New package sizes would be created in order to better fit customers’ needs. Unilever would keep Campeiro’s current retail price of $ 1.70 also for Novo Campeiro. $ 1.70 already is very low compared to most other detergent brands, and with its improved formula and scent, Novo Campeiro even offers (promotes) an increased value for the same price. Although this might be challenging, Unilever should distribute Novo Campeiro to all of the approximately 75,000 small outlets across the Northeast. Most of the Northeastern Brazilians shop in small...
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