Kathy Puchala

Parveen Kumar
Prakhar Jain
Stephan Heinrich

Paris, 4 May 2009

Unilever in Brazil (1997-2007)

Marketing Strategies for Low-Income Consumers
Agenda

Introduction to the Brazilian Market

Why the Low-Income Segment Should be Targeted

Implications of Targeting the Low-Income Segment

Brand Portfolio and Positioning

xxx

xxx

2 International Marketing Case - Unilever in Brazil

Agenda

Introduction to the Brazilian Market

Why the Low-Income Segment Should be Targeted

Implications of Targeting the Low-Income Segment

Brand Portfolio and Positioning

xxx

xxx

3 International Marketing Case - Unilever in Brazil

High Success in the Overall Brazilian
Detergent Powder and Laundry Soap Market

Brand Portfolio

Omo (powder premium brand)

Minerva (sold as powder & laundry soap)
Campeiro (cheapest powder brand)

81% market share in detergent powder category

Vs. 15% market share of P&G, the next biggest

competitor

4 International Marketing Case - Unilever in Brazil

Low- Income Consumers in Northeastern Brazil
Constitute a Large but very Specific Customer Segment
Demographic Background
48 million low-income consumers
28% of Brazils total population
40% illiterate
Per capita income of $ 2,250
53% live on less than two minimum wages

Laundry and Detergent Use Patterns

Clothes washed frequently due to few
clothes and more time
Pleasurable activity (washing in a public
laundry, river, or pond; meeting and chatting
with friends)

5 International Marketing Case - Unilever in Brazil

Agenda

Introduction to the Brazilian Market

Why the Low-Income Segment Should be Targeted

Implications of Targeting the Low-Income Segment

Brand Portfolio and Positioning

xxx

xxx

6 International Marketing Case - Unilever in Brazil

Fierce Competition and Multiplication Effect
To Other Product Categories
1
P&G drawing on worldwide R&D and
marketing expertise is closing up and will
attack in this segment
Competition
Threat of small local brands targeted at
low- income consumers

Fuel for growth in the food and personal care

Detergents are Cash Cow
categories

7 International Marketing Case - Unilever in Brazil

Particularly the Detergent Powder Market is
Highly Lucrative and Growing but Competitive
3 4
Detergents Powder Market Laundry Soap Market

17% annual growth rate 6% annual growth rate

High barriers to entry Low barriers to entry
Market $106m with share of Market $102m with share of
$79,5m $19,38m

8 International Marketing Case - Unilever in Brazil

Agenda

Introduction to the Brazilian Market

Why the Low-Income Segment Should be Targeted

Implications of Targeting the Low-Income Segment

Brand Portfolio and Positioning

xxx

xxx

9 International Marketing Case - Unilever in Brazil

More Positive Effects of Targeting the Low-
Income Market in the Short- and Long-Term

Money has to be invested and therefore

diverted from premium brands to low
price brand
Short-Term Implications
Gaining momentum and first mover
advantage in a fast growing market

With the right strategy, low income

consumers will be ready to pay for a new
brand and Omo buyers will not move
Long-Term Implications
Becoming a leader in low-income
consumer marketing

10 International Marketing Case - Unilever in Brazil

Agenda

Introduction to the Brazilian Market

Why the Low-Income Segment Should be Targeted

Implications of Targeting the Low-Income Segment

Brand Portfolio and Positioning

xxx

xxx

11 International Marketing Case - Unilever in Brazil

Current Brand Portfolio

12 International Marketing Case - Unilever in Brazil

Why Brand Extension required

13 International Marketing Case - Unilever in Brazil

 Price Index

14 International Marketing Case - Unilever in Brazil

 Price Index

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Positioning Statement
Who we are
Major manufacturers in Food, Home care and Personal care

What business are we looking

NE Brazilian Fabric Wash Market

Who is the Target Market

Low income groups of NE Brazil

Need of the Target Market

A Detergent powder(like Omo) at an affordable price with better
characteristics than detergents like Campeiro

Competitors
Invicto , Pop, Campeiro

The USP
The Cleaning ability comparable to a Laundry soap
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Positioning Statement

To the women who give cleanliness the highest priority.

Campeiro Plus is a detergent powder which gives you a
better cleaning power with much less effort than the similar
priced competitors.

17 International Marketing Case - Unilever in Brazil

Thank You Very Much For Your
Attention!