Kathy Puchala

Parveen Kumar
Prakhar Jain
Stephan Heinrich
Paris, 4 May 2009

Unilever in Brazil (1997-2007)

Marketing Strategies for Low-Income Consumers

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
xxx
xxx

International Marketing Case - Unilever in Brazil

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
xxx
xxx

International Marketing Case - Unilever in Brazil

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

International Marketing Case - Unilever in Brazil

Low- Income Consumers in Northeastern Brazil

Constitute a Large but very Specific Customer Segment
Demographic Background
48 million low-income consumers
28% of Brazils 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)
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International Marketing Case - Unilever in Brazil

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
xxx
xxx

International Marketing Case - Unilever in Brazil

Fierce Competition and Multiplication Effect

To Other Product Categories
1

Competition

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

Detergents are Cash Cow

Fuel for growth in the food and personal care

categories

International Marketing Case - Unilever in Brazil

Particularly the Detergent Powder Market is

Highly Lucrative and Growing but Competitive

Detergents Powder Market

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

Laundry Soap Market

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

International Marketing Case - Unilever in Brazil

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
xxx
xxx

International Marketing Case - Unilever in Brazil

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

Short-Term Implications

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

Long-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

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International Marketing Case - Unilever in Brazil

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
xxx
xxx

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International Marketing Case - Unilever in Brazil

Current Brand Portfolio

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International Marketing Case - Unilever in Brazil

Why Brand Extension required

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International Marketing Case - Unilever in Brazil

Price Index
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International Marketing Case - Unilever in Brazil

Price Index
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International Marketing Case - Unilever in Brazil

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
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International Marketing Case - Unilever in Brazil

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.

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International Marketing Case - Unilever in Brazil

Thank You Very Much For Your

Attention!