Unilever in Brazil

The Importance for cleanliness and to coerce riding habit smell good has be pretendn to growing sixth sense of the detersive pulverise portrays a cultural run on the consumers purchasing behavior. The various reasons that the consumers mentioned for using detersive powder is draw in Exhibit . Attribute Importance, Brand Positioning, And Consumer Expectations In the North vitamin E Exhibit 1 Source needlewoman Research Cleanliness which has a 24% Importance helps to determine the motivation of the consumers they believe that cleanliness Is part of their social status It also caters to heir need for being part of the society.Only 28% family own a slipstream machine and the rest 72% septs washing attitude (behavior) is to scrub the clothes with dry wash scoop shovel and indeed rack up bleach to remove tough stains and simply add a little detersive powder at the suppress to do work the clothes smell good. So their perception about detergent powder Is that It Is o nly for good smell. In the EN, mess consider washing clothes as more of a leisure activity beca work the activity is by and vainglorious taken up outdoors (physical environment), in the nearby ponds where throng erect socialize amongst each otherwise.This is an Important aspect of the culture of EN, which differentiates it from the peck of SE. As the social needs (Moscows hierarchy of needs theory) of the race argon reflected in cloth-washing activity. The influences of mother in the decision making process is meaty in the shell of detergents(FMC). Moreover the frequency of washing clothes is last(prenominal) as they believe that cleanliness of clothes reflect on the responsibility victorious behavior of the mother. Low income consumers were attached to boxes and regarded anything else as good for only second-rate overlaps. mum is positioned specifically to be used in gashing machine which shows that it is targeted for the hoi polloi be to a higher social kinsfolk. Southeast Region The lifestyle of people of this region is better than EN which is evident from the 67% of households owning a washing machine. The washing attitude Is more using a machine than hatful wash. Hence the utilization of detergent powder Is more as against EN. Their acquirement from the washing experience is that hard stains are not cleaned in a washing machine in spite of using the some high-ticket(prenominal) Ana Test merchandise. So teen need to use wash drawing scoops tort cleaning ten tough stains on collars.This behavior has led to an 88. % penetration of laundry sludges. Players and shufflings in brazil-nut tree and their outline hatter is the leading imposter in the detergents effort with a securities industry share of 81%, with the detergent division in the cash-cow phase (as outlined in the BCC growth- securities industry share matrix), assist the company generate funds to fuel the growth of its upcoming parts of home-care and personal-care p oint of intersections, which were lifelessness at a nascent stage. The trade structure could be considered as a duopoly, with Milliner and P&038G as the major players in the organized market.The market has been broadly categorized into the detergent odder and the laundry soap segments. The former is predominantly used in the SE part, while people in the EN used it in little bar to machinate the fabric smell good. Hence, the growth of this segment was comparatively higher (stood at 17% against 6% for laundry soaps). The entry barriers were quite high for the detergent powder segment because of high investment in terms of the upper-case letter outlay, as sophisticated processes and machines were used in the manu detailuring process.At 75%, Milliners share of the EN detergent market is below its national norm as against P&038Gs market share which is slightly above its sectional average. The topical anesthetic brands make up for only 8% of the share. A luxuriant breakup of the market share of each of the brands is shown in exhibit 2. merchandise Share and Wholesale value of Major Brands in the Laundry slash and Detergent powder categories in Northeast in 1996 senses Detergent powderize 70. 00% 60. 00% 50. 00% 40. 00% 30. 00% 20. 00% 10. 00% 0. 0% Laundry Shop Exhibit 2 Source Nielsen On the other hand, the laundry soap segment had low entry barriers because of the easiness of the manufacturing process for soaps, as it could be produced relatively easily using carnal fats and oils. The water in EN is soft as compared to SE region. and then the measuring stick of foam created is more leading to a higher usance and also appealing the consumers. Milliner faced competition in this segment from other established local players, like AS whose brand BEMA-tee-vi had an market share. SOOT ANALYSIS Strengths 1.Milliner is leading the detergent powder category with 81% market share achieved with mainly three brands Mom one of Brazils favorite brands across a ll categories Minerva the only brand to be sold as both detergent powder and laundry soap and Campfire, Milliners cheapest brand. . Brand Recognition a. Milliner brands capture a good market position as it was a pioneer of the consumer goods industry in Brazil. As against the other brands in the market, Milliner products have the higher % of brand knowledge, market penetration and top-of-mind sense.Weakness 1 . Distribution Milliner is missing the expertise in distribution of its products among the mild outlets. In approximately 75,000 low-pitched outlets it is hard to find any of the Milliner products. Local distribution is all-important(prenominal) as the low-income consumers rarely shop in large supermarkets like Wall-mart. . Price EN is a impairment sensitive region. For such consumers price = quality. So Milliners premium brand, Mom is perceived as a high quality at a premium position, while the other Milliner brands are considered to be of inferior quality. . Mom is reg arded as the outflank product while the others are hardly able to satisfy the customers expectations. 4. No prior knowledge or experience of dealing with low-income consumers. Opportunities 1 . The EN market has good scope for growth. There is a big fortuity of better business with respect to the low-income consumers. 2. P&038G has not entered into the laundry soap market. So Milliner only has a few local competitors. And since the usance of laundry soap is the maximum in EN, Milliner fundament capture the market for laundry soap. 3.The purchasing power of the low-income consumer has grown by 27% during 1995-96 which pull up stakes probably lead to an outgrowth in the usage of detergent. 4. The EN is 48 million predominantly low-income consumers whose consumption is 42,000 tons of detergent and 81 ,250 tons of laundry soap which is a big number. 5. Brazilian government is providing tax incentives to encourage investments in EN. 6. EN women wash frequently (5 times per week). Cleanliness is part of their culture. Also the symbolic value they attach to cleanliness is of high regard. . 28% of EN has washing machines. 8. Popularity of laundry soaps is higher in EN region due to the softness of the water in this region. Threat 1 . Brazil (EN) has illiteracy rate of 40% which raft lead to unemployment. such(prenominal) factors can have an adverse effect on the purchasing power. 2. P&038G is a soaked competitor in detergent powder market with Ace ranking third in the market share. 3. The R&038D of P&038G as a whole is furthermost advanced than Milliner. Strategy for Milliner in Brazil Marketing communications schema natural selections (Chris Fill, 2005, deliver the goods. 32) Strategy Pull Push Profile Target hearing Consumers End-user bib customers Channel intermediaries All relevant stakeholders Message focus harvest-home/ service Product/service The organization Communication goal buy Purchase Developing relationships and distribution network Build ing reputation The energy strategy is aimed at chargeing the product through the channel intermediaries and then finally to the end users. Whereas a pull strategy is aimed at twist the consumers to retailers.A successful marketing involves a mixture of push through the portion out and pull from consumers and and then the two areas are not mutually exclusive. , Peg unlived can Implement ten Tooling strategies 1 . Push Strategy (Promotional Strategy) (Chris Fill, 2005) shaper Wholesaler or Distributor Direction of Communication Retailer or value-added reseller Consumer or buyer The consumers in Brazil have a strong brand knowledge and top of mind awareness for the Milliner products. Mom is regarded as one of the premium products and does not have a slopped competitor.But this product is beyond the budget of the low- income consumers and hence the people of this particular sphere of influence cannot afford this brand. But by taking the advantage of the brand success, on that p oint are two pickaxes that Milliner can adopt 1 . open a completely untested product under the brand gain of Mom with different detergent formulae. 2. Use one of the brands that satisfy the requirements of the low-consumer of a detergent from its existing portfolio. There is a disadvantage with the 1st natural selection the cost involved in the R&038D in formulating a detergent from the scratch would be an additional expense in the budget.In option 2 t is not sealed if the launch of an existing brand from the portfolio will be interpreted the representation it is expected. The risk involved in the 2nd option is higher than the price factor in option 1. Thus option 1 although involves more time is a a great deal wiser decision. Hence under the brand extension, launch a newborn product under the Mom brand (family) umbrella. Therefore the marketing mix (4 AS) for this strategy would be Product Package the product in different quantities of games, games and 1 keg so that it is affordable for people having either a every(prenominal) week or a monthly budget.Like every other product of Milliner let this new product also be distributed in boxes as the low-income consumers consider anything other than a box to be inferior. At the resembling time design the packaging in such a way that it protects the contents from humidity and also very attractive to pull the assistance of the buyers. Include pictures of popular parties like Carnival so that people can relate it to their rich cultural background. Price Keep the price of this new product definitely less than Mom but almost of the aforesaid(prenominal) range as Campfire since for the low-income consumers price= (is equal to) quality.Hence lesser the price, the more it is insecure to be perceived as a low standard product. The in large quantities price of Campfire is 1. 7/keg so the pricing for the new product could be between 1. 5 and 1. 7 per keg. Promotion Promotions in this case rules out some of the forms like personal selling as the targeted market is very large, also television marketing as most of the people are low-income families, fifty-fifty magazine ads as most of them are illiterate.So the forms that will make an impact on the consumers are direct marketing, buzz, word of mouth, banners with straightforward messages relating to the cultural and religious history EN has. Concentrate on visibleness of the products in small stores so that when customers enter the store they should realize that thither is a new product which is catering to their needs, this way create an Montreal move on ten minas AT ten consumers Tort Tanat product. Place Milliner lacks the distribution skill in EN.More than 75,000 small outlets dont have any of the Milliner products. So the first step towards placing the new product is to make sure Milliner does a strategic distribution among the small outlets as the consumers in EN usually shop at a nearby store instead of going to large stores. Also considering the fact that 21% of consumers in SE are in the social class E, the new product should be carefully placed among the small outlets even in the SE region. 2.Pull Strategy(Selling Strategy) (Chris Fill, 2005) Communication Flow Originator or maker Wholesaler Flow of goods and services Retailer Customer The consumption of laundry soap in Brazil is (6. 8+20. 4) keg and the detergent consumption is (12. 9+11. 4) keg. These figures reveal a very important fact that many another(prenominal) of the consumers are still tied to laundry soap and so by using the pull strategy, Milliner should attract these laundry soap consumers towards detergent powder. The pull strategy is successful when people have brand awareness and go to the shop to buy a particular product.So considering the washing habit (detergent powder in a very small quantity only for good smell), one of the ways of pulling the customers towards the detergent usage is by giving a small sachet of the new product for f ree with every purchase of a laundry soap(Minerva). By doing this the consumers would be forced to use the product and if the performance of the new product is convincing to them then the chances of people switching to detergent is tie high, which in turn will gain the brand recognition of the new product and as a turn out it would be a success of the pull strategy.Also once the consumers start buying the new product reward them by putting some coupons interior the packaging so that the consumers are motivated to buy it the next time. Moreover, certain freebies like a container to store the detergent, a spoon to measure the quantity of detergent to be used in a given amount of water, can be deployed during the initial phases of launch of the product.One more way to increase the brand awareness of the new product is to vive a demonstration of the new product in and around the small outlets or at places most visited by the targeted consumers. Refill packs should be produced, and th e product should be made acquirable across all locations, because of the very nature of the product which is that it is a low-involvement one, and people would not travel long distances to buy the product.Since the product is targeted to a low-income and price sensitive segment, the company should make sure that it optimizes the distribution network and that on the logistics cost so as to transfer the benefits to he end consumer. While the product is gaining more brand loyalty, the producer/ manufacturer should make sure that the new product is available on all the shelves (small stores, large malls) Tanat consumers can possibly reach out to. 0 encourage this give suitable incentives/rewards to the dealers. Thus convince the retailers to stock up in receipt to the demand created for the new product. The success of the new product can be achieved by striking a perfect balance between the push and pull strategies. So push or launch the product into the market and create awareness o r the same and through the pull strategy create a strong affinity for the new product thus converting the laundry soap users to detergent powder.