Professional Documents
Culture Documents
Brazil is the largest country in Latin America. The total population of Brazil is 170 million. The south
east part of Brazil has the highest population and then comes the north east region. The GDP and per
capita of the south east is more than that of the north east of Brazil.
CONSUMER BEHAVIOR
The consumer behavior in Brazil to the detergent market is different in the north east and the south east
of Brazil and is depended on many influences.
Apart from price of the detergent, the important attributes for the north east customers as per the rankings
are:
Power of detergent
Its fragrance
The ability to remove stains without the need of soap and bleach
The dissolving power with the water
Packaging
Impact on colors
Whereas the south eastern customers are habitual decision makers. They would prefer to use the same
detergents that they are using unless they dont get any flaws.
As per case study it is known that Northeasterners believe bleach is a must for removal of stains;
detergent powder is used only to make the clothes smell good.
For the Northeasterners cleanliness is perceived as important despite of their low income survival.
Cleaning of clothes for them is also seen as a measure of dedication of the woman of the family.
Hence the challenge is to change few age old perceptions and yet successfully make a mark in the lower
income segment.
For this Unilever will have to convert the laundry soap users into an Omo class user.
ADOPTION TRAIL -
LEGITIMATION - conforming consumer that you have got the right benefit
ATTITUDE -
Impulse purchasers
Women are increasingly becoming the heads of households
More than half the Brazilian teenagers have experimented with alcohol
Globalization causes parents to seek bilingual schools for their children
Microbreweries expanding in Brazil
More Brazilians eating healthy foods
65% of consumers in Brazil prefer to pay cash for their purchases, according to research points of
Boa Vista Services.
According to Credit Suisse Researchs Emerging Consumer Survey 2011, Brazilians devote a
considerably larger share of income to discretionary spending than consumers in other BRIC countries
stores of Casas Bahiathe largest appliance chain store in Brazil, which enjoys an
exceptional positive image among low-income consumersis specially instructed, during
a credit transaction, not to conspicuously check whether the ID picture matches with the
ID presenter.
Brands are used by the people to reflect an image that consumers want to incorporate.
For instance, consumers declared, I buy Omo (leading powdered soap brand in Brazil,
from Unilever); I take good care of my family.
All housewives stress on the importance of low prices as the major attribute in selecting
supermarkets, but showed a very significant preference for shopping at the conventional
and higher-priced supermarket. This behavior can be partly explained by halo effect
which states that positive perceptions of some attributes of a brand influence a more
favorable perception of other brand attributes. The conventional supermarket was
evaluated very highly in many attributes, such as courtesy and friendliness of service,
merchandising, visual merchandising, facilities, store atmosphere, price promotions; all
these positive evaluations have exercised a contagious effect on its price image.
Personalised relationship
The importance of relationship has been highlighted as a major marketing ingredient of success
for any business enterprise.From bargain tips to mutual cooperation (for example, to build a
house), a more informal and friendlier relationship in BoP markets compared with high-income
markets is noticeable. The different dimensions that need to be taken into account are: Personal
service, mistrust of large corporations and face-to-face contact, as discussed further below.
Personal service
Compared with high-income consumers, BoP consumers want a more personal service.
Large companies are often perceived as exploiters. They did not perceive that the new, no-frills
format was the way the company could achieve lower costs to offer lower prices. Instead, the
perception was that the no-frills format was created to save investment as the poor neighborhood
did not deserve an upper-scale facility, and as such the company could maximize its profits.
Face-to-face contact
Low-income consumers highly value face-to-face contact. The mistrust of institutions and the
lack of formal education make these consumers more suspicious.They prefer, everywhere they
shop, to have face-to-face contact in order to know from whom they are buying and to better
understand what they are buying.