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Similaire à Unilever in Brazil: Marketing Strategy
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Unilever in Brazil: Marketing Strategy
- 1. UNILEVER IN BRAZIL SUBMITTED BY: GROUP B2 SANCHITA GARG SHAURYA DWIVEDI SIDDHARTH RASTOGI SUMIT SINGH
- 2. SITUATION ANALYSIS ANALYSING CUSTOMERS Product key attributes: • Cleanliness, whitening, productivity • Smell and softness • Ability to remove stains • Dissolving power • Packaging • Harm to colours • Low income consumers in Northeast region • Consider it as a pleasurable activity • 28% household own a washing machine • 73% women think bleach is necessary to remove fat stain • Frequency of washing clothes- 5 times a week
- 3. COMPANY Strengths Pioneer of consumer goods in Brazil Market leader in detergent powder with 81% market share •Deep pockets and expertise Weaknesses Less experience about approaching low income customers Lack of proper distribution channels Opportunities Detergent market segment in North- east was growing at the remarkable annual rate of 17% Getting access to the 75,000 small outlets Threats Losing market to competitors( P&G, local manufacturers) SWOT Analysis
- 4. COMPETITORS • P&G: Distant second player, 17.5% market share • Local manufacturers COLLABORATORS • Supermarkets- Wal-Mart, Carrefour • Generalist wholesaler, specialized distributors
- 5. CONTEXT • Since it is labour intensive, women see it as an indicator of dedication of a mother • Subject of gossip • Feel proud about cleanliness of clothes • Purchasing power of poor growing because of Plano Real • Government’s provision to provide tax incentives to companies
- 6. PROBLEM STATEMENT • Should Unilever target low-income consumers in Detergent Powder segment in NE Brazil? • If No, Why? • If yes, Why and How?
- 7. WHY “YES”? • Expansion is a key factor to remain market leader and increase market capital • Capturing or take over of LIC by P&G and local manufacturers • To build strong distribution channel • To gain expertise in LIC segment to target other categories and other countries 106 124 145 170 199 102 108 115 121 129 1996 1997 1998 1999 2000 Revenue forecast of washing products (in millions) Detergent Laundry soaps
- 8. RELAUNCHING • Relaunching Campeiro as ‘Campeiro Nossa’ • Maria’s statement: I would love to buy Omo but I can afford cheaper local brands WHY?
- 10. BRAND STRATEGY PRODUCT • Campeiro Nossa- Detergent having qualities of Campeiro and additional attributes from Minerva • New packaging strategy- Small plastic sachets for one time use and medium size cardboard packings Pleasant smell and softness Improved whitening strength Campeiro Nossa Powerful stain removal
- 11. PLACE Criteria Generalist Wholesaler Specialized Distributors Reach Wide Focused- specific to LIC Portfolio Focused on top 3 brands in many categories All brands from Unilever will be focused upon Customers Supermarkets Traditional retail stores (targeting 75000 small outlets) Variable cost $ 0.10/kg $ 0.05/kg
- 12. PROMOTION • Use of television ads targeting the LIC in NE region • Media advertising- 80% above the line and 20% below the line • Push strategy- Taking the product to the customer • Pull strategy- Getting the customer to come to you
- 13. PRICE Value (in dollars/kg) Formulation cost 1.15 Packaging cost 0.30 Promotional cost 0.30 Profit 0.25 Wholesale Price 2.00 Profit from distribution channel 0.05 Packing Packaging Cost Campeiro- current pack (1 kg) 0.35$/kg Campeiro Nossa- plastic packs 0.245$/kg 0.105$/kg Savings
- 14. CANNIBALIZATION EFFECT Detergent Market 1996 1997 1998 1999 2000 Campeiro Market Share with New Product(%) 6 5 4 2 0 Market Cannibalisation(%) 0 17 33 67 0 Campeiro Nossa(%) 0 2 4 6 10 Profit from Campeiro without new Product($) 630000 737100 862407 1009016 1180549 Profit from Campeiro with new Product($) 630000 614250 574938 336339 0 Profit from Campeiro($) 0 294840 689926 1210819 2361098 Profit from repositioning 0 171990 402457 538142 1180549