Case Study Of Unilever

tion.

After reviewing the data provided by Unilever, we recommend producing a third formula priced midway between Minerva and Campeiro, comprising of the Minerva soap and the Campeiro powder. We believe this recommendation will allow Unilever’s established business model to leverage its strong market presence in Brazil for commercial success.

Background.

Unilever’s objective of increasing its market share in Brazil’s low-income market requires numerous strategic considerations for the company. Unilever needs to reevaluate its marketing and branding strategy, specifically whether it should reposition or extend its cheaper brands, or develop a new product that meets the demands of low-income consumers. Unilever should position itself around

First, we recommend Unilever creates a third product that is priced midway between Minerva and Campeiro. This new product would focus on the quality and brand recognition of Minerva, while taking advantage of the low price of Campeiro. The new product will be a combination package of four soap bars and a .25kg package of detergent powder, packaged in cardboard boxes. Second, we suggest Unilever prices the new product at a wholesale price of $ 2 per kg, between that of Minerva and Campeiro. This could prevent the cannibalization of Minerva and Campeiro. We advise Unilever to offer in-store coupons to consumers for first six months following the product launch to ease entry without creating the perception of a low value product. To advertise this brand, we believe the usage of television ads will increase the brand recognition by emphasizing the social component of washing clothes and the pride it brings to the Northeastern

The introduction of our third product to the Brazilian low-income consumer base will provide Unilever with a product that meets several of the demands low-income buyers desire. The two key attributes for these consumers are the “perceived power of the detergent”, which is measured in the amount of foam produced, and the smell of the detergent. In the Northeast region, only 72% of households do not own a washing machine, meaning that the majority of women wash their laundry at public laundry services or water sources. The women of this region mainly utilize laundry soap because the water is soft enough to help the soap dissolve and produce large amounts of foam. Detergent is used as an additive in the washing process to produce better smelling laundry. Since our product provides both detergent and soap, Unilever will provide a product that can effectively solve all laundry needs for women in the Northeast. The appeal of Minerva’s perfume and quality, will combine with Campeiro’s price consciousness to create a strong contender in the market. We also recommend packaging the product in boxes to avoid the negative stigma associated with plastic packaging and second-rate products. Furthermore, we suggest a price point of $2 per kg as it lands roughly halfway between the wholesale price for Minerva and Campeiro detergents. This pricing will prevent the cannibalization of the Minerva detergent line and the product differentiation saves Campeiro from becoming