Unilever Change Its Current Marketing and Branding

¶ … 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 might be outmaneuvered by rivals such as Proctor & Gamble if it does not secure a larger portion of its market share, repositioning itself within the low-income Brazilian market seems an essential defensive move by the company, albeit a difficult one.

The target demographic is of Northeast residents primarily wash clothes by hands using soap, bleach, and small amounts of detergent. 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 conveying higher-quality detergent. Also, if the product was priced too high, it would simply encroach upon the existing Unilever brands of Omo, Minerva and Campeiro. The new product would have to add something 'new' to its value proposition, to be attractive to the target consumers.

The most promising method of lowering the cost of marketing the brand is using point-of-purchase advertising through agreements generated via store owners who offer advice and financing to customers. By using a higher proportion of this type of marketing, the company could conceivably cut costs and also create the perception of an additional value not currently possessed by existing detergents. Using specialized distributors vs. general wholesalers, would able enable a more focused and personalized strategy.