Marketing Case 4

Topics: Marketing, Brand, Laundry detergent Pages: 20 (4845 words) Published: January 12, 2015

Unilever in Brazil- Marketing plan for low-income consumers in the Northeast of Brazil

This report analyses Unilever Brazil and provides a full marketing plan for the expansion of Unilever into the northeast of Brazil. First, a situational analysis is performed, followed by a strategic analysis and final a market and 4Ps analysis of the strategic recommendation. 1. Situational Analysis Unilever Brazil

In the section an analysis of the market facing Unilever is preformed that includes an assessment of the company, customers, competitors and external market environment. This information is then summarized in a SWOT analysis. 1.1 Company Analysis of Objectives and Resources

Unilever is an Anglo–Dutch multinational consumer goods company co-headquartered in London (UK) and Rotterdam (Netherlands). IT was founded in 1929 by a merger of the British Lever Brothers (Soap maker) and the Duct Margarine Unie (margarine producer). As of 2007 Unilever was a US $56 billion company, with about 300,000 employees in more than 150 countries, including Brazil. Unilever’s operations in Brazil were started in 1929 by the Lever Brothers who opened their first plant in Sao Paulo in 1930 to manufacture Sunlight Soap. In 1957 Unilever launched the first detergent powder in Brazil – OMO – which is the most successful company’s brand. In 1996 Unilever operated with three divisions in Brazil: (i) Lever for home care; (ii) Elida Gibbs for personal care; and (iii) Van der Bergh for foods. In the same year the company was the market leader in the detergent powder category in Brazil with 81% market share with three brands: OMO (the company’s cash cow), Minerva (the only brand sold as both a detergent powder and a laundry soap) and Campero (Unilever’s cheapest brand). More details of the company are presented in the following section. 1.1.1 Company Objectives and Marketing Objectives

Unilever Brazil was looking to explore growth opportunities in the marketing of detergents to low-income consumers living in the Northeast of Brazil. The company wanted to explore other areas of growth since it already had 81% share of the detergent powder category. In order to design an effective marketing strategy they needed to: Understand the lifestyle, aspirations, shopping and laundry-habits of low income consumers. Extend or reposition its cheaper brands (Minerva and Campeiro) or create a new brand Find the ideal positioning and marketing mix for low income consumers 1.1.2 Screening Criteria

The Head of Unilever’s Home Care Division in Brazil was considering the following criteria to evaluate and decide on whether or not Unilever should target the low income segment: Profitability of the low income segment

The Cannibalization rate – percentage of new sales coming from existing Unilever brands Unilever skills and organization to compete in the low income segment How would the stock market react to Unilever’s decision to enter a non-premium market segment 1.1.3 Company Resources

This section includes the human, financial and facility/equipment resources of the Unilever group and Unilever Brazil that the latter can build upon to target the low-income segment in Brazil. Human Resources

Qualified and experienced senior executives (eg. Robert Davidson – Head of Unilever’s Home Care Division in Brazil, Laercio Cardoso – Graduated in Business Administration from Fundacao Gertulio Vargas, alumnus of INSEAD Advancement Management Program. Marcos Diniz – Sales, Antonio Conde – Finance, Airton Sinigaglia – Manufacturing) Over 300,000 employees of Unilever worldwide

Financial resources
$US$ 56 billion company
Facility/equipment resources
Unilever is present in more than 150 countries
It has a portfolio of 1,600 brands, including 45 key detergent brands 1.1.5. Marketing Collaborators
Unilever’s marketing collaborators include advertising agencies in which Unilever spend 70% of its communication expenditure, marketing research firms and the company’s...
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