¶ … Unilever change its current marketing and branding strategy? If no, why not? If yes, what should they change?
Unilever is attempting create a new detergent marketed to low-income consumers in Brazil, many of whom find the company's pricing to be cost-prohibitive. Because of the class demographics in Brazil, low-income consumers represent a substantial part of the market. With 81% of the market already, the company had little other room to expand within Brazil other into than the Northeast market of lower-income consumers (Guimaraes & Chadon 2007: 7). On the other hand, repositioning its core brands, even its cheaper ones like Omo and Campeiro, will take extensive revision of its marketing and branding strategies. Still, 'cash cow' detergents are a vital part of Unilever's brand empire. Its sales of its higher-end detergent Minerva were below the national average in the Northeast, although in terms of laundry soap bars it was the leader. Given the worries that Unilever...
Washing clothes is a pleasurable, social activity for poorer women, and cleanliness is very important. Power (foaming), smell, stain removal, dissolving, consistency, and easy-to-recognize packaging are all valued as attributes of a 'good' detergent. To compete, Unilever would have to offer at least the same or slightly better quality than its existing Omo and Campeiro in these product areas, but at a cost cheaper than the average price of its products like Minerva that were directed towards higher-end consumers. Cutting costs on packaging was a no-go, given that low-income consumers saw boxes as…
