UNILEVER

IN BRAZIL Group Members

Umair ijaz
Usama aziz
Iyyaz khalid
Sehrish khalid
A case of Marketing Strategies for Low Daniyal zaidi
Income Consumers Fazeelat ashraf
 About Unilever and the target
segment in Brazil
▸ Unilever is one of the world’s top
makers of packaged consumer
goods operating in 190 countries
and
▸ Have a large brand portfolio of
over 400 brands under two divisions
▸ Foods and Home & Personal
care.
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▸ Unilever is one of the world’s
top three food firms with Nestle
and Kraft
▸ The world’s second largest
packaged consumer goods
company behind Procter &
Gamble.
▸ The main success factor of the
company is the constant focus
on innovative product
developments
Vision Unilever’s vision is “to make sustainable living commonplace. We
believe this is the best long-term way for our business to grow.”

Unilever’s corporate mission is “to add vitality to life. We meet

Mission every day needs for nutrition, hygiene and personal care with
brands that help people feel good, look good and get more out of
life.”

Four core values of Unilever are

Value • Integrity
• Responsibility
• Respect
• Pioneering
 High Success in the Overall Brazilian Detergent
Powder and Laundry Soap Market

▸ Omo (powder premium brand)

▸ Minerva (sold as powder & laundry soap)
Brand ▸ Campeiro (cheapest powder brand)
Portfolio ▸ 81% market share in detergent powder category
▸ Vs. 15% market share of P&G, the next biggest
competitor

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 Low- Income Consumers in Northeastern Brazil
Constitute a Large but very Specific Customer

Demographic Background Laundry and Detergent

▸ 48 million low-income
consumers
▸ 28% of Brazil‘s total
population
▸ 40% illiterate
▸ Per capita income of $ 2,250
▸ 53% live on less than two
minimum wages
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)

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 “ Should Unilever target the low-income segment of consumers in the
Northeast? What are the short-term and long-term implications of the
decision?

▸ Unilever enjoys the market leadership with 81% of market share in detergent powder
category.
▸ There is no other way to grow other than expanding into new segments.
▸ The competition from P&G is a threatening one, in view of their formidable R & D and
marketing expertise.
▸ With a growth rate of 17% the detergent market is a swiftly growing and lucrative one.
▸ Hence it is imperative that Unilever enter the market of low income consumers.

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 IMPLICATIONS OF ENTERING THE
NEW MARKET SEGMENT
Short term implications Long term implications
▸ Entering a new market segment implies that ▸ By employing the right strategy, a whole
money has to be invested for setting up new class of consumer segment will be
infrastructure and facilitating marketing opened up for Unilever.
activities.
▸ A suitable positioning of the product in the
▸ This causes the diversion of funds perception map will ensure that the new
earmarked for the premium brands, product does not cannibalize the market
affecting their promotional activities of the flagship brand, Omo.
▸ The positive side of such a move is that
Unilever can obtain first mover advantage in
a fast growing market and this momentum,
if utilized effectively can bolster their market
leadership in this category.
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 Current brand portfolio
Unilever in Brazilian Fabric Wash Market

1
Detergent Powder 1
Laundry Soap
• Market worth $106 mn • Market worth $102 mn
• Growing at 17% Growing at 6%
• 3 major competitors • Many local competitors
Omo
• Premium product Minerva
2 2
• USP is having high ability to • Relatively cheaper
remove stains • USP is its ability to dissolve
• 52% market share at $3/kg easily
• 17% market share at $2.4/kg
Campeiro 3
• Cheapest 3

• No USP , targeted at low income Minerva

group • Competing with the local
• 6% market share at $1.7/kg brands
• 19% market share, at $1.7/kg

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 Brand positioning vs. Brand extension

▸ In case of a brand ▸ Introducing a brand

repositioning campeiro extension , backed by
will be the suitable suitable product
candidate. promotion will enable the
▸ However, the customer company to successfully
perception of campeiro position the product
as a low quality product among the target
may affect the customers
repositioning exercise. ▸ The proposed positioning
of the product is depicted
below:

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 Positioning statement
Who we are? What business are we looking?

Major manufacturers in Food, NE Brazilian Fabric Wash

Home care and Personal care Market

20XX 20XX

20XX
20XX

Who is the Target Market?

Need of the Target Market

Low income groups of NE

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

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 PEST Analysis
Political Forces No Forces
Economic Forces Low Income consumer
Social & cultural Forces Washing clothing like festival
Technological Forces 72% , no washing machines

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 Marketing MIX
Product Price
• Quality to be better than Campeiro • Ideally between Minerva and
and to be sold in boxes of multiple Campeiro.
types & sizes.
• Product to form easy lather and
should produce foam when dissolved
in water.
• It should also have a pleasant smell

Place
• The existing distribution channels
may not be of much use.
• May look into highly specialized
distributors, who have knowledge and
access of the pockets where the low
income consumers reside.
Promotion
• promotional activities to take
place in mass media as well as in
the areas where the target
customers reside.

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 SWOT Analysis
Strength
• Pioneer of consumer goods in brazil
• The size of the company is its major
strength
• Leadership position in the market of
detergent and soap
• Good image in the customer mind of
the previous products
• High brand image
Opportunity
• Northern market not strutted yet
• A new market available
• Have about 75000 small outlets
• Competitive advantage
• Customer trust on the previous brands
• A strong image in the customers mind
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weakness
• Price level OMO is expensive
• Lack of small store experience
• Less experience of approaching less
income level consumers
• Lack of proper distribution channel
• Prices of Unilever products are higher
than its competitors.
Threats
• Economic challenges
• Tough competition
• Social cultural differences
• Difficult to keep the margin
• An increased social and
environmental concern.
 Conclusion
• Unilever to launch a brand extension
targeted at lower income customers.
• Distribution channels may be
modified to efficiently reach the
target segment .
• Sufficient funds may be allocated to
the project, to gain the first mover
advantage and to sustain the
momentum

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 Thanks!
Any questions?

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