Saad Baber

L18-3168

MBA-B

UNILEVER IN BRAZIL
1. Yes, Unilever should target the low income segment consumers in Northeast as there are 48
Million or 53% consumers in the Northeast that fall into this segment. Unilever should tap this
consumer segment as the number falling in this segment is huge. Although the profitability from
the product for low income segment consumers will be low, but the volumes can be so high that
profit from this particular consumer base product can be immense. Another reason to tap this
segment is that the consumer number is so high that their global competitors can target that
consumer base and gain competitive advantage which can replicate in other product lines as well.
So the main reasons precisely are:
 Huge customer base
 Expected volumes
 Gain additional market share
 Target the segment before any big player does
2. Based on the current brand portfolio, Unilever should go for a brand extension and launch an
even less expensive variant of Camperio. It is so, because launching a new brand can cost much
more than extending the brand as the consumers are already familiar with the existing brand and
emphasis can be built on the lesser price to boost the sales in low income consumer segment.
3. Marketing Mix:
 Product: Unilever should come up with a brand extension to target the low income
segment of the market. The product should not be a completely new one as it will be
more costly to establish a new brand rather than to extend a brand. The product must
carry two distinct features, one must be “strong cleaning power” at least as effective as a
soap, and second, distinct feature should be the fragrance of the washing powder. The
product must be produced keeping in mind that the main user of the product are females
who would wash the clothes with their hands and not with the help of washing machine.
So, the washing powder must go easy on the hands of the user as well.
 Pricing: The pricing of the powder is also a critical reason for the product to run into the
market. As the target is low income segment, so, the price of the product should be even
less than the price of Camperio. Camperio being the cheapest washing powder is
considered a benchmark, once its low cost variant is introduced in the market, people will
opt for it.
 Distribution: Unilever has the largest market share of washing powders in Brazil, this
justifies that the distribution of the existing washing powder products are working fine,
hence this low price variant should be distributed with the same distribution channel.
However, this should be kept in focus that the target customer which is to be targeted
does not buy from the big supermarkets, hence the product should be essentially present
with all the small shopping stores from which the low income segment buys the likes of
washing powder. The distribution channel must be the same, however the distribution
strategy must be altered as per already mentioned.
Saad Baber

L18-3168

MBA-B

 Promotion: As the target market is low income segment, so the promotion of the product
should be focused around the desired customer base. The product should be promoted
mainly on the TV as a large number of this target customer base is a TV viewer as per the
case. Promotion should also be done on the stores which are located in small block
markets as that medium is cheap to promote through and effective as the target customer
reaches to these stores. Unilever can promote this product with the help of its existing
products which are used mainly by its desired target base. For example, a small (50 or
100 grams) pack of this low price washing powder variant can be given along with a dish
wash bar, or a skin care soap or any other product which is used frequently by the target
customer, so that the customer uses it once and then buys the product on regular basis and
becomes a repeated customer of that product.