Unilever in Brazil (1997-2007): Marketing Strategies

Unilever in Brazil (1997-2007): Marketing Strategies

Unilever is one of essential company that offers consumer with cleaning agents and detergents. From the analysis of the case study, it is significant to say that Unilever should target low-income segment of consumers in Northeast because they represent large market that has distinct customer base. Although the low-income segment is good alternative for the Unilever it is not good for the Everyman project. Given that the company is one of the strongest competitors in the market it has essential resources it can be able to use to thrive in the market and remain profitable. There is significant opportunity for Unilever to make more returns when entering low-income market but Everyman based on the case does not provide a better market position but it has tremendous opportunities that can make the company to have record significant opportunities. Also, from the case it is clear that Omo has high risk of not getting significant market on this segment because consumers will shift to Everyman which is low-priced. Based on the view of the case the recommendation is that Unilever should not introduce lower priced Everman brand in the market if it wants to remain profitable low-income segment. Its focus solution should be to come up with better marketing Mix whose goal will be taking more market share from competing brand.

It is possible Unilever will make significant profit is market segment because the are is still untapped. This indicates that the company will need as mentioned above to develop marketing strategy that is achievable for the two brands Omo and Everyman so that to achieve a breakthrough in the market segment to make profit. Given the opportunity in the new market segment the firm should develop its strategies careful thus presenting products that will be popular among local as that will make it successful in the market.

Unilever Brand Portfolio

From the case analysis it is clear that there are three brands that makeup Unilever’s brand portfolio. For instance, among the three brands of the company Omo is highest priced then Minerva and Campeiro is lowest priced product. Looking at the three products of the company it is true that Omo can be the most popular and favorite brands among the consumer in the market due to its market share. On the other hand, Campeiro is the cheapest brand Unilever presented in the market as compared to Minerva and Omo thus it can be more affordable to the consumers even though its market shares low. From the analysis of the case, I can say that creating a new brand is not necessary for company as it may be counterproductive for organization considering that it has desire to reduce its brand portfolio. Instead of creating the new brand what the company should do is repositioning of its existing brand as that will help it to reduce potential costs that are associated with establishing a new brand in the market.

Marketing Mix

The product should have to be designed in a way that attracts consumers. For instance, it has to give the information on the product ability to remove stains and cleaning power. It has to show that it can meet the consumers preference in the market. By ensuring that Minerva is packaged in significant sizes will in the growth of firm market share. It is also important for the firm to have different packs of products because some consumers in the market prefer larger packs. Based on the choices of consumers in the market it will be important to ensure both choices of product packaging are available for customers in the market.

Given that the consumer in this market are low-income earners it may be feasible to produce Minerva product in two packaging formats. For instance, the product should be packaged in either 500g and 1kg with low price so that the consumer can afford it in the market. Since most of the consumer have weekly budgets, it is important for Unilever to come up with sizable price that will accommodate spending budget of customers. Packing the products in affordable packages will contribute to the firm market growth as well attracts new consumers.

The promotion is important strategy for this case because Unilever is entering the new market segment and it will be important for the company to reposition its brands. The promotion in case is strategically meant to communicate cultural value of the product. Using the New TV ads, the firm should communicate the characteristics of the products such as Minerva powder as that will create attraction among consumers in the new market segment.

Distribution

In terms of distribution, it is important that the firm not focus on selling its products on supermarkets and large retail chains as that will make it unpopular among the low-income consumers in the country. Instead, the firm should embrace the distribution of its products in the small local shops where individuals in the area buy cleaning products and food. By doing this the company will be promoting local business while at the same time promoting its product through most appropriate channel given its new consumer purchasing power. It is also important for the firm to work with independent business owners in the market as they are responsible for supplies from distribution centers.