Executive Summary

Unilver should revitalize its Campeiro brand to target the low-income NE detergent powder market. The product
should have a new formulation, at the expense of increased formulation costs. Campeiro is the leading product in
the low-end spectrum, but perceived quality is less than what is expected for its price (Exh 9). Its current attributes
are in the minimum end of consumer expectation range, but still higher than the other low-end competitors (Exh
5). Increasing the product attributes by ~20% will shift Campeiro quality above what is expected for its price.
This places it in the lower quartile of consumer attributes expectation range. Thus, there is sufficient
differentiation to Minerva & Omo to avoid cannibalization. By revitalizing the brand with a new formulation, the
brand promise is to provide the best cleaning experience at the cheapest price. Functionally, the quality of product
is above any other low-end brand, while having the same price. Symbolically it is a people’s brand, linked to the
Brazil rural areas. It helps keep the rural Brazilian families spotless, being present as they progress economically.
Product price initially is kept at 1.7$/kg, even if margins decrease to ~8% (Appendix 1). This keeps prices the
same as direct competitors, Pop & Invicto, while still being sufficiently discounted from Minerva to not confuse
medium-end consumers. As, the product attributes are much better than its direct competitors, it will capture their
market share. Over time, prices can be increased to ~1.85$/kg to retain previous margins. This can be done, when
sufficient market share is obtained, and Brazil develops economically increasing consumers disposable income.
Promotion should be an equal mix of media and non-media advertising. Campeiro has a lower penetration rate
than Invicto (Exh 8) so large media ads are needed to increase penetration. NE culture views television as a
bonding opportunity, and thus Campeiro can reach in mass through this channel. Non-media advertising is vital
to give an augmented product experience. The brand is revitalized as the people’s detergent – cheap but high-
quality, helping families achieve financial progress. Events displaying the product qualities, combined with the
region’s cultural dances/music are excellent touchpoints to create a zone of intimacy. This will shift Campeiro
top-of-mind brand awareness higher (Exh 8) in line with the other Unilever brands.
Finally, the channels should be specialized distributors. The low economic GDP in the NE (Exh 1) means most
customers do not buy in large retail stores. Most transactions involve local small shops, with strong interaction
with the shoppers and various point-of-purchase activities (Exh 13). These shops give Unilver a closer link to the
retailers, making it easier to explain the product qualities. The shop-owners can then better transmit these benefits
to customers, adding to the zone of intimacy as the trust between the community is a strong cultural pull.
Brand Decisions
Brand Name: Unilever should use the existing brand name of Campeiro, revitalizing it, to target this new market.
Detergent powder has massive penetrations in the NE (97.2%) with a consumption of 11.4kg/yr per buyer (Exh
3). In the NE, Unilever is the biggest player with 75% market share, which is less than the share across the rest
of Brazil, 81%. NE has the largest proportion of low-income individuals (Exh 1). The market share discrepancy
suggests low-income consumers needs don’t align with the value proposition of current products.
Starting a brand from scratch is unattractive. Unilever already has a strong presence - its three products have over
20 years of history. It should capitalize on the existing brands, rather than create a new one. The detergent market
is fragmented, and P&G has experience in targeting low socio-economic consumers. Building a whole new brand
from scratch will take time, removing the first mover advantage Unilver could attain by revitalizing Campeiro.
Campeiro is significantly discounted to the Unilever products: 1.76 times to Omo & 1.41 to Minerva (Exh 10).
Omo is the premium product, with a price index of 125, the largest of any brand (Exh 8). Its perceived quality is
also higher than any other brand, positioning it as the sole premium product. Then come the ‘medium’ range
products like Minerva. The price index at 100 is still high, but the perceived quality at 110 is higher than the
expected value (Exh 8). The two brands have strong market shares, so consumers appreciate their attributes and
 have the disposable income to buy. There is no internal consistency in cutting these products prices to target
lower-income customers. It would alienate current customers and send the message product’s quality decreased.
In contrast, Campeiro is at the low-end spectrum of price with an index of ~75, the optimum area to become the
lower-income brand of choice. In this spectrum, it is already the leader of perceived quality. Furthermore, it’s %
contribution margin is higher than Minerva (Table 1). This suggests there is room to increase costs to improve
quality, especially if prices can later be increased from doing so. Campeiro perceived quality is below the
expected value for its price (Exh 9). The revitalized product’s quality should lie above this line, as per Unilever’s
other two products. For this the formulation should be changed revitalizing the brand, giving a better perceived
quality. Price can be slightly increased from then onwards to maintain margins.
Table 1: Summary of Financials of Each Unilever Brand (Exh 10)

Price Formulation Packaging Promotional Contribution Contribution

($/kg) Cost ($/kg) Cost ($/kg) Cost ($/kg) Margin ($/kg) Margin (%)
OMO 3.00 1.65 0.35 0.35 0.65 0.217
MINERVA 2.40 1.40 0.35 0.30 0.35 0.146
CAMPEIRO 1.70 0.90 0.35 0.20 0.25 0.147

Brand Positioning & Identity: Campeiro revitalization should start by improving its quality. Currently Campeiro
is on the end spectrum of consumer expectations range (Exh 5). Its consumer expectations are higher than that of
the other low-end brands, Pop & Invicto, but severely lacks that of Minerva. Thus, at its price Campeiro perceived
quality is below the expected value (Exh 9), because of its cheaper formulation (table 1) & focus on cost reduction
(Exh 10). This suggests, quality can increase by improving the formulation, raising costs. Exh 5 suggests
Campeiro should increase attributes by ~20%. This provides significant differentiation from other low-end
brands, and to the medium end brand Minerva, minimizing cannibalization. A 20% gap between Minerva & Omo
attributes, was enough for each product to appeal different customer segments.
Campeiro brand position should be the washing product of the people. Campeiro means fields & countryside, so
closely aligns to the NE rural sentiment. The case mentions washing for NE families is a cultural phenomenon -
a bonding, fun experience. Campeiro name fits with this cultural sentiment. Furthermore, by revitalizing the brand
associations, it will not only culturally fit in the mind of consumers but be linked to a product that helps families
achieve their financial goals. The case mentions families attribute being spotlessly clean as a token of pride,
symbolism of higher social status. A brand for the common people, that helps them achieve this status will be
strongly positioned. The brand identity is summarized below.
Brand Promise
Functionally Campeiro provides the best cleaning experience at the cheapest price. The quality of product is above any other low-end brand,
while having the same price. Symbolically it is a people’s brand, linked to the fields & rural areas of Brazil. It helps keep the rural Brazilian
families spotless, helping and being there as they financially progress through life.

Brand Personality Reasons to Believe

A brand for the people. A brand that evokes sentiment of fields, rural
areas, and the close-knit culture. It should be fun, as the NE does not
view laundry as a chore but a moment for families to connect. The case
mentions women see the activity as fun and bonding.
This lively, fun appeal should be at the core of the brand. It is already
partially evoked through the name itself but should be further
positioned through promotion. Furthermore, the brand should show it
is high quality albeit its low price. Customers in the region view
washing as a symbol of status and progress. Campeiro must
distinguish itself from the low-end products by displaying high
quality, and that is helps family as they financially progress.
Functional – Price index is already at the low end of the spectrum,
within customers’ willingness to pay. Improving quality attributes will
improve perceived quality. The product attributes should be ~20/30%
less than Minerva.
Symbolic – Campeiro evokes rural life, clearly linked to the NE
culture. The brand name itself is symbolic of the NE life, so is aligned
to evoke the sentiment of what washing laundry means to the region.
Rational – Has the Unilver brand behind it. Million’s worth of R&D
and experience, means extensive capability to produce high-quality
products. This is evidenced by Omo, whose perceived quality is by far
the biggest in the industry. It is fair for customers to expect, this
knowledge can translate Campeiro’s increased product performance.
 Brand Point of View
Quality and low-price detergent powder can co-exist. The customer
needs a powder that meets cleaning needs, at lowest price possible.
Campeiro improved formulation does so. A slight increase in quality,
at the expense of profit margin, if we keep price fixed, will meet
customer needs better, clearly differentiating from other low-end
competitors. However, the difference in quality between Minerva and
Campeiro is still high enough to not cannibalize sales.
Target & Insights
Target lowest socio-economic groups primarily in the NE, where they
concentrate. This group has less disposable income but view washing
clothes as a matter of pride. Having clean clothes, is a symbolism of
status and financial progress. Hence, while they may be price sensitive,
they still want high quality. This is not offered by any current product
in the low-end spectrum. Campeiro barely meets the minimum
customer expectation range (Exh 5).

Marketing Mix
Product: We can use the total product concept to offer value to the customers. The core benefit and actual product
is a revitalized Campeiro. The formula will change, increasing products attribute such that overall perceived
quality is ≥ than the expected perceived quality at the current price index (Exh 9). We suggest this is done by
ensuring the new formulation increases by ~20/30% the attributes customer values (Exh 5) with a preference
towards the top three. This places Campeiro attributes in the bottom quartile of consumer expectations,
significantly more than any other low-end competitor, but low enough from Minerva to avoid cannibalization.
There should also be an augmented part of the product. This can be ancillary benefits such as cleaning brushes
with the product, or tips for the best cleaning. Pop does this through promotional opportunities where users can
earn a washing machine (Exh 11). Furthermore, Unilever can add to the product experience. This could be done
through the promotion. The case mentions the NE is known for its music and humour. Campeiro, being a brand
of the people, thus should have this experience and association (see Promotion section)
Price: To improve product quality, formulation costs will increase. There is little leeway to cut packaging costs
as low-income consumers are attached to boxes - deviations suggest low quality. Likewise, as the brand is
revitalized promotional costs will be kept the same, if not increased. To achieve the desired increase of ~25% in
the attribute importance (Exh 5), we can expect an increase of ~0.05$/kg in formulation costs (Appendix 1).
Assuming, a total increase of 0.1$/kg, allocated to additional formulation & promotional cost increases, the
contribution margin is 0.15 $/kg, and 8.8%. This is still healthy, but the squeezed margins will affect economics
in the long run. Initially the price should be kept at $1.7/kg. Invicto & Pop both sell at $1.7/kg, but with improved
quality Campeiro can capture their market share. Neither product meet the lower ends of customer expectations
(Exh 5), and their perceived quality is less than Campeiro’s. Local competitors, it is unlikely they can respond by
cutting prices, as financially they likely cannot sustain lower margins. When Campeiro has consolidated as the
main low-end player, prices are slowly increased to the previous margin. This would be an increase of ~0.15$/kg,
to 1.85$/kg, a 1.67 times discount to Omo. This is still strongly discounted to Minerva, clearly keeping the current
brand portfolio targeting different economical groups. Furthermore, Brazil’s economy will continue to grow
specially in the NE. The case states there is a strong focus of driving investment in the NE. This will be increased
consumers disposable income, allowing to raise the prices of Campeiro over time.
Promotion: Unilever should promote through media & non-media advertising. While below-the-line
advertisement is only $0.05/kg, helping profit margins, it is not sufficient. The case mentions the Afro-Brazilian
population, the highest in the NE (Exh 1), is known for its close-knit culture. Media, such as tv is a typical way
for communities to spend time together and is easily consumed. The case mentions the NE has a high illiteracy
rate so advertisement through tv and radio will be easily understood and reach a large customer base, increasing
market penetration. Exh 8 shows Campeiro lags Invicto in terms of market penetration by 20%. Targeted large-
scale advertisements will reduce the gap. The message should be about Campeiros increased performance and
cultural alignment to the region. The advertisements should be emotional – showcasing not only a superior
quality, but also the emotional side of the product. This shifts the promotion towards the zone of intimacy,
touching consumers emotion & culture. For instance, ads could show a father getting a job or a family attending
an important event. The members would wear spotless clothing, celebrating as per the NE culture, and the ad will
show the clothes were previously washed with Campeiro. This cements the brands experience - Campeiro, is a
product for the people. It is cheap but high quality and will be with you as you progress financially.
Non-media advertisement will increase the zone of intimacy, bolstering top-of-mind awareness (TOW).
Campeiro’s TOW is higher than Invicto, even though its market penetration is less. This should be capitalized.
For instance, celebrity usage will be a great touchpoint for brand discovery. The case mentions the NE is known
for producing famous artists. Growing in the NE they will identify with the rural association of Campeiro, so will
more vividly showcase the brand position. Finally, events are vital to increase awareness. Many attributes’
consumers seek (Exh 5), are best shown in person. Making in-person events, allow consumers to first-hand see
how much more effective the product is compared to its competitors. If these events are also aligned with the
traditional NE culture through music, it will cement the position of Campeiro as a people detergent. Showcasing
the best attributes, will also make it easier to increase prices in the future.
Distribution Channels: Channel should be specialized distributors. NE is the poorest region, and consumers have
limited access to big retail stores. To reach target customers & increase penetration Campeiro must focus on small
local shops. There is a disconnect between Campeiro’s brand position and generalist wholesale distributors.
Campeiro is the detergent of the common people, while wholesale distributors may be associated to the rich SE.
Furthermore, the close-knit culture suggests locals likely interact with shopkeepers supporting their local
communities. Placing the product in general wholesalers will remove such interactions. Furthermore, specialized
distributions have an advantage on point-of-purchase (POP) activities & manufacturers relationship (Exh 13).
These channels have a more focused portfolio, and the owners will learn more as they partner with Unilever.
Thus, Unilever can more easily explain product benefits. With such a vast POP (Exh 13) & close-knit culture this
knowledge can then be easily transmitted to consumers. This is a more intimate brand touchpoint, necessary to
build brand position. Finally, with Unilever’s financial power Campeiro can outplace direct competitors from the
stores, grabbing market share more quickly. However, financials must be considered. Training the specialized
distributors and building that partnership can be expensive and may impact margins short-term. However, on the
long run it will cement Campeiros position and increased volume will drive overall profit.
Appendix 1:
Price discount between Minerva & Omo formulation costs = 1.65/1.4 = 1.178
The % difference in attributes between Omo and Minerva is ~40%.
With the ~25% target of improving Campeiros attributes, the difference between Campeiro and Minerva’s
attributes is ~50%.
Assuming a linear relation between formulation costs and %change in attributes, then we can get the formulation
cost ratio between Campeiro and Minerva, to achieve the new 50% difference between attributes.
This is given by: 50/40 * 1.179 = 1.4732.
Currently, Minervas formulation cost is 1.4 $/kg. Thus, the required cost for Campeiro is 1.4/1.473 = 0.95 $/kg.
This is ~0.05 $/kg. To account for the non-linear relation, or other costs increases we have taken a total increase
of 0.1$/kg