Unilever Essay

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Unilever in Brazil is looking to explore growth opportunities in the marketing of detergents to low-income consumers living in Northeast of Brazil. Unilever is a leader in the detergent market in Brazil with a 81% market share. It has the option of either focusing on developing its existing portfolio of detergents or develop/launch higher quality lower price detergent for the low-income consumers living in Northeast of Brazil. There is also an entry threat by one of their main competitors P&G, which could take the first mover advantage and address this segment before them. If it chooses to develop/launch a new product for this consumer segment, it can either reposition or extend one of its existing brands or launch a new brand. Unilever has to then decide on price, product, promotion, and distribution strategy that would allow Unilever to deliver value to low-income consumers without cannibalizing its existing portfolio substantially. Executive Summary- Market Situation Analysis: 5C’s Customers- Customers in this case are the low-income citizens of the North East (NE) region of Brazil. NE economy is predominantly rural and remained heavily dependent on agriculture unlike the South Eastern region of Brazil, which is the center of Brazilian politics and economy. The per capita income of the consumers in the NE region is $ 2250(comparable to Peru/Jamaica) and the literacy rate is 60%. Customer-perceived value (CPV) for Unilever’s flagship detergent brand Omo is that the total customer cost is greater than the total customer benefit. Analysis of customer’s purchase and usage patterns reveals the following details regarding the customer- Who are the customers? Initiator(s)- Households are the main initiators of the detergent purchasing decision. It is a $106 million market with a 17% growth rate. Deciders(s)/Purchaser(s) Women, mostly homemakers, make

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