Unilever Brazil Case

Kathy PuchalaParveen KumarPrakhar JainStephan Heinrich

Paris, 4 May 2009

Unilever in Brazil (1997-2007)

Marketing Strategies for Low-Income Consumers

International Marketing Case - Unilever in Brazil2

Agenda

Introduction to the Brazilian Market

Why the Low-Income Segment Should be Targeted

Implications of Targeting the Low-Income Segment

Brand Portfolio and Positioning

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Agenda

Introduction to the Brazilian MarketIntroduction to the Brazilian Market




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High Success in the Overall Brazilian Detergent Powder and Laundry Soap Market

Brand Portfolio

• Omo (powder premium brand)• Minerva (sold as powder & laundry soap)• Campeiro (cheapest powder brand)

81% market share in detergent powder category

Vs. 15% market share of P&G, the next biggest competitor


Low- Income Consumers in Northeastern Brazil Constitute a Large but very Specific Customer Segment

Demographic Background

• 48 million low-income consumers

• 28% of Brazil‘s total population

• 40% illiterate

• Per capita income of $ 2,250

• 53% live on less than two minimum wages

Laundry and Detergent Use Patterns

• Clothes washed frequently due to few clothes and more time

• Pleasurable activity (washing in a public laundry, river, or pond; meeting and chatting with friends)


Agenda


Why the Low-Income Segment Should be TargetedWhy the Low-Income Segment Should be Targeted



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Fierce Competition and Multiplication Effect To Other Product Categories

Detergents are Cash CowDetergents are Cash Cow

CompetitionCompetition

• Fuel for growth in the food and personal care categories

• P&G drawing on worldwide R&D and marketing expertise is closing up and will attack in this segment

• Threat of small local brands targeted at low- income consumers

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Particularly the Detergent Powder Market is Highly Lucrative and Growing but Competitive

• 17% annual growth rate• High barriers to entry• Market $106m with share of $79,5m

• 6% annual growth rate• Low barriers to entry• Market $102m with share of $19,38m

Detergents Powder MarketDetergents Powder Market Laundry Soap MarketLaundry Soap Market

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Agenda



Implications of Targeting the Low-Income SegmentImplications of Targeting the Low-Income Segment


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More Positive Effects of Targeting the Low-Income Market in the Short- and Long-Term

Long-Term ImplicationsLong-Term Implications

Short-Term ImplicationsShort-Term Implications

• With the right strategy, low income consumers will be ready to pay for a new brand and Omo buyers will not move

• Becoming a leader in low-income consumer marketing

• Money has to be invested and therefore diverted from premium brands to low

price brand

• Gaining momentum and first mover advantage in a fast growing market


Agenda



Implications of Targeting the Low-Income SegmentImplications of Targeting the Low-Income Segment


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Current Brand Portfolio


Why Brand Extension required



Price Index

Positioning Statement

• Who we are– Major manufacturers in Food, Home care and Personal care

• What business are we looking– NE Brazilian Fabric Wash Market

• Who is the Target Market– Low income groups of NE Brazil

• Need of the Target Market– A Detergent powder(like Omo) at an affordable price with better

characteristics than detergents like Campeiro

• Competitors– Invicto , Pop, Campeiro

• The USP– The Cleaning ability comparable to a Laundry soap


Positioning Statement

“To the women who give cleanliness the highest priority. Campeiro Plus is a detergent powder which gives you a

better cleaning power with much less effort than the similar priced competitors.”


Thank You Very Much For Your Attention!

Unilever Brazil Case

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