Unilever in Brazil

Unilever in Brazil

Marketing Strategies for Low- Income Consumers

Unilever in Brazil European Case Studies

1. Executive Summary

This case study is about the market activities of Unilever’s detergent products in Brazil and the strategy for entering the market of the low income consumers in the Northeast region. At first, the paper gives an overview about the different stages of the Corporate Life Cycle that the company has gone through and analyses issues that Unilever faced in the past. After this, Unilever’s products are allocated in the Product Life Cycle and typical problems for the company in this phase will be discussed. The following is an analysis of the existing market in Brazil. This includes the analysis of the regional disparities in Brazil, the consumer behaviour of the low income consumers in the Northeast and the market structure. Afterwards the three possible alternatives (brand extension, launch a new product and repositioning of a brand) for the marketing strategy are named, explained and discussed. In the end the marketing strategy including the marketing mix for the developed product “Omo compacto” is accomplished.

2. Introduction

Unilever, headquartered in London and Rotterdam, is a British- Dutch, multinational company that produces consumer goods including food, beverages, cleaning agents and personal care products. It employs about 172 000 people in more than 190 countries all over the world. In 2014 Unilever’s turnover was €48.4 billion. Today 57% of their business accounts to the emerging markets.1 Since 1929 Unilever has been operating in Brazil. There, the company is pioneer of the consumer goods industry since the Lever Brothers opened their first plant in Sao Paulo in 1930 to produce Sunlight soap. The company has a long and profitable history in Brazil concerning detergents. In 1996, Unilever was a clear leader in the detergent power category in Brazil. They reached a market share of 81% by the use of their three...