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Unilever Brazil Case - Marketing Strategy for Low-income Consumers

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CASE STUDY UNILEVER TEAM B Ashwath SriHari, Bianca Tavares, Chen Yang Lim, Elizabeth Hoffman, José Castillo, Malak El Halabi
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Page 1: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

CASE STUDYUNILEVER

T E A M B

Ashwath SriHari, Bianca Tavares, Chen Yang Lim,

Elizabeth Hoffman, José Castillo, Malak El Halabi

Page 2: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

ProBlEM STATEMEnT

“Our goal is to profitably capture a previously

overlooked market segment of low-income consumers

(in Northeast Brazil) with growing purchasing power, without

over- cannibalizing the sales of our higher tier products.

To do this, we will need to identify their needs and create a

product targeted to these consumers that draws them away

from our competitors and small regional brands.”

U N I L E V E R C A S E S T U D YT E A M BT E A M B

Page 3: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

G R O U P B

CAMPEIRO+PoSITIVES

1. Brand awareness.

2. Reduces perceptions of risk.

3. Lower marketing costs,

4 Current loyal customers

nEGATIVES

1. Campeiro is perceived as a low quality

brand, and by creating a Campeiro+ we

would be transferring this perception of the

brand to the new one.

2. Reduce sales of older items.

3. Dilutes image of parent brand

4. Not targeted to consumer needs

Alternative StrategyU N I L E V E R C A S E S T U D YT E A M B

Page 4: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

The population of norThEAST of Brazil Substantial: 47,600,000 people (28% of Brazilian Population)

hoMoGEnouS: Women with low-income, housewifes, low education (16,9% of the total population being illiterate)

hETEroGEnouS: Distinct from Southern Brazilians.

DEScrIBABlE:

oPInIon: Takes pride in the appearance of herself and her family. Detergent choice has a social status aspires to using the market leader Omo, but needs an affordable alternative.

African influences on lifestyle, culture, and religion. AcTIVITy: Does not own a washing machineEnjoys laundry as a regular social activity.

occASIonS of uSE:

Clothes are washed 5 times in a week, by hand.Laundry is done outdoors at a river/pond.lookInG for: Foam, Smell, Packaging. Prioritizes: Strength, Softness, Perception of Quality.

Behavioral

Psychographic

Demographic

Geographic

SegmentationrEcoMMEnDATIon

U N I L E V E R C A S E S T U D YT E A M B

Page 5: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

Product X provides low-income women from the Northeast with a detergent powder specially made for hand-washing with strong stain removal properties and a fresh scent.

PositionrEcoMMEnDATIon

U N I L E V E R C A S E S T U D YT E A M B

Page 6: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

Product

Price

Promotion

Place

IMPlEMEnTATIon PlAn

U N I L E V E R C A S E S T U D YT E A M B

Page 7: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

MARAMaravilhosamente Limpo

“Mara”, is derived from “Maravilhosa” which means marvelous in Portuguese

Our 3 priorities when making the formulation were:

• Cleanliness, whitening, productivity (Foaminess)

which has to be improved

• Smell, softness (Gentleness) that has to be retained

• The ability to remove stains without bleach which

also has to be retained.

Designed specially for hand-washing

Available in two different sizes, 500 grams and 1 kilo,

so it will fit within the weekly budget range of the

poorest families

Packaging:

• Plastic sachets, protecting the powder from

humidity

• Easily transportable

• Waterproof, making it ideal for public laundry in a

river or pond

• Bright colors to grab attention.

• Simple to use and to understand as our instructions

will use pictures.

Product IMPlEMEnTATIon PlAn

U N I L E V E R C A S E S T U D YT E A M B

Page 8: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

U N I L E V E R C A S E S T U D YT E A M B

Page 9: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

MARAMaravilhosamente Limpo

Costs of formulation and

promotional cost halfway

between Campeiro and

Minerva

Total cost of $1.655, and a

margin of $0.295 per kilo

with our desired price of

$1.95 per kilo

Mara % of Price campeiro % of Price

Formulation Cost (per kilo) $1,150 58,97% $0,900 52,94%

Packaging Cost (per kilo) $0,105 5,38% $0,350 20,59%

Promotional Cost (per kilo) $0,250 12,82% $0,200 11,76%

Distribution Cost (per kilo) $0,050 2,56% $0,100 5,88%

Incremental Marketing Costs (per kilo) $0,100 5,13% $0,000 0,00%

Total Cost $1,655 84,87% $1,550 91,18%

Price $1,950 100,00% $1,700 100,00%

Margin $0,295 15,13% $0,150 8,82%

30% Cheaper 2xIn PAckAGInG coST

AlMoST

MArGIn

Compared to Campeiro

Price IMPlEMEnTATIon PlAn

U N I L E V E R C A S E S T U D YT E A M B

Page 10: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

49%

18%

15%

8%

3%3%

3%

1%

Target  Market  Share

Omo

Mara

Minerva

Ace

Campeiro

Other  P&G

Invicto

Others

49%

18%

15%

8%

3%3%

3%

1%

Target  Market  Share

Omo

Mara

Minerva

Ace

Campeiro

Other  P&G

Invicto

Others

MARAMaravilhosamente Limpo

1. Goal to get Unilever’s share of the NE

region detergent market from 75% To 85%,

which is the national average.

2. Goal to have a higher market share than

Campeiro.

3. GoAl for fIrST yEAr: same market share

as Campeiro.

4. Target to get close to the Market Share

of Minerva, approximately 18% In ThrEE

yEArS after launch.

5. Target to cAnnIBAlIzE cAMPEIro EnTIrEly

in 5 years.

Price IMPlEMEnTATIon PlAn

TArGET MArkET ShArE

OUR GOALS

U N I L E V E R C A S E S T U D YT E A M B

Page 11: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

MARAMaravilhosamente Limpo

Brazilians are avid television watchers We suggest using Globo actress rEGInA cASé as our spokesperson

Consistent and Simple Communication Same slogan in television (media advertising), trade promotions, events and point-of-purchase marketing,

“Suave nas mãos, duro nas manchas. Mara, maravilhosamente limpo”

Promotions and bundle offers

Wall paintings for small retail shops

Sponsor popular regional events and free music concerts Since music and humor are key elements of Brazil’s culture Carnaval

70%30% BElow ThE lInE

ABoVE ThE lInE Simple visual messaging through

television channel and imagery in

order to overcome the difficulty

of reading.

Promotion IMPlEMEnTATIon PlAn

rEGInA cASé

U N I L E V E R C A S E S T U D YT E A M B

Page 12: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

MARAMaravilhosamente Limpo

Specialized distributors

to reach approximately

75,000SMAll ouTlETS

spread over the Northeast of Brazil

Key because low-income

consumers rarely shopped in

large supermarkets

Place IMPlEMEnTATIon PlAn

U N I L E V E R C A S E S T U D YT E A M B

Page 13: Unilever Brazil Case - Marketing Strategy for Low-income Consumers

Mara, Maravilhosa.

T E A M B f o r u n I l E V E r

““

T E A M B U N I L E V E R C A S E S T U D Y


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