UNILEVER MEMO
In order to gain market shares through the low-income segment of the Brazilian market, Unilever should launch a new Detergent Powder brand at an affordable price, which could replace in the long-run Campeiro, its cheapest brand. However this strategy is not without any risks, since it can lead to the cannibalization of Minerva.
With 81% of market shares in Brazil, Unilever is the leader of the Detergent Powder market. It owns three brands in Brazil: Omo, Minerva and Campeiro. Omo is the top brand of the portfolio and perceived as a high quality at a premium position. Minerva is a medium quality product with low brand awareness. Campeiro is a well-known cheapest product but with a low top of mind penetration. In order to
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In term or product, Unilever should develop this new brand by modifying the formula of Campeiro and thus meet the expectations of cleanliness and fresh aroma of the low-income consumers. Even if consumers prefer cardboard boxes, the new brand will be sold in a plastic sachet since the packaging does not count a lot in the decision criteria process. This new brand should be priced at 1.8. (see Exhibit 2) just a little bit above Campeino price to show the quality of the new product. Unilever will have to maintain low margin for its new brand to reach its target but can reach profitability with high volumes of sales. In term of promotion, Unilever should position its new brand as a very effective product which can be used in everyday life. Advertising should show the satisfaction of a consumer while washing it clothes. In term of communication expenditure, a 70% below the line should be used since we are targeting the low-income segment. Besides it will cost less money to Unilever. The packaging has to be very simple and be different in term of color with the ones of Omo and Minerva. Finally Unilever will sell this new brand in the specialized distributors since it is the distribution channel where low-income consumers shop.
I assume that our new brand will be well welcome by the low-income consumer and that Unilever will have a 13% margin. We could have also repositioned Campeiro but it is too well known for being a cheap
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
The purpose of this study is to explore three companies by focusing on how the brands have been performing as well as what the customers and other stakeholders are saying about the different brands. This study will also summarize the strategic issues that the companies and those they are likely to experience in future.
During these quarters, at the very beginning, the sales are opened in the market and hence a floodgate is opened for the clients to flock and get a hold of the products. At this stage the establishment of the brand is quite critical and in that regard the decision was made to spend 63,384 for the sake of advertising. This would reverberate the target market to get to know about the product and to get the desire to want to buy more and more of the product. The aspect of
To differentiate the brand from competition, labels and packaging would be used. Moreover, all visual communication tools and promotional items featuring the brand logo and
The company has launched a new line of products in a bid to improve its competitive edge in the retail industry. In addition, the new line of products aims at meeting the demands of customers at all levels. The new line of products includes products such as vegetables, deli services, kitchen essentials, designer clothes, and décor products. These products are targeted to a certain group of
The problem statement will be analyzed with respect to alternative marketing strategies available to P&G for launching the detergent. Consideration will be given onto whether the Vizir launch should be German-based or a Europe-wide and how this will affect standardization of the product in terms of product formulation, advertising, and promotion. The discussion shall
The present brand of Ad-lider Limp-o-Lixo can be found out in all major supermarket chain throughout the Brazil. The brand was sold directly to the largest supermarket chains. Wholesalers and
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
| Initiative: Efficiency and productivity is key in the companies to achieve their set out merged goals under BRF. Budget: Medium; Considering the amount of time it might take to combine data from both companies with different systems may result in a new system being built, requiring some investment by BRF. Business processes have to be picked and sorted into a new bracket from which optimization of results can be observed quarterly. Elimination of bad/negative business processes are key, and thus this will also require some investment by BRF to figure out. Thus, a good chunk of an investment needs to be made.
According to Brazil basic social characteristics, and several other major competitors’ product, we decided our product types covered by the child toothpaste for the kids, healthy toothpaste for the elder, white toothpaste for young people, economic toothpaste for family. Our team pricing standards are to ensure that company earnings, guaranteed price competitive enough in the market, and guaranteed consumers can afford the price.
Despite the inconsistent changes in spending from year to year, P&G’s market share consistently increased between 1% and 2% every twelve months (see Figure 1). The question is, with Unilever’s actions in regards to marketing expenditures, is the 15% increase going to be enough to restart P&G’s upward growth of market share?
I am researching the economy of Brazil. The definition of economy: The Management of the income, expenditures, etc of a household, business, community, or government. Careful management of wealth, resources, etc; avoidance of waste by careful planning use; thrift or thrifty use. (1) The system or range of economic activity in a country, region, or community. (2)
Unilever is assessing whether to enter the low-income NE market. Our analysis shows that there is a profitable opportunity to offer detergent powder to low-income customers living in Northeast Brazil and capture market share in a high-margin, high-growth market. We recommend that the firm keeps the existing brands but deploy a horizontal extension of the Campeiro brand - adding better scent / softness and utilizing specialty distribution network, thereby marginalizing Invicto, an inferior but better-known competitor.
In 2000, Unilever decided to reduce 1,600 brands down to 400 and then select a small number of them to serve as “Masterbrands”. One of the reasons to have fewer brands is to decrease control issues. It is harder to manage so many brands, especially when each one has its own particularities. As Deighton pointed, Unilever’s brand portfolio had grown in a relatively laissez-faire manner. In other words, the company’s brands were created without large interference.
Unilever believes in the sustainable growth and use of renewable sources of energy. It is also very watchful of employee health and has managed to bring down its accidental rate by a high margin. Unilever’s vision includes a better way for living for its consumers and better use of the products that they use. It maintains a high standard of its products by following stringent standards which helps in maintaining consumer satisfaction. Over the years, after working for different social projects like Water conservation and Food for all, it has grown its image as a socially aware and responsible