Consumer behaviour in Brazil

Consumer deportment in brazil nutBrazil is the largest country in Latin America. The total population of Brazil is clxx million. The south atomic number 99 part of Brazil has the highest population and then comes the trade union east region. The GDP and per capita of the south east is more than that of the north-central east of Brazil.CONSUMER BEHAVIOURThe consumer behaviour in brazil to the detersive market is diametrical in the north east and the south east of Brazil and is depended on m either influences. One of the influence is the favorable influence.Social InfluencesNorth eastmost BrazilSouth East BrazilCulture and sub kitchen-gardening65% of the population are a mix of African and European origins and their lifestyles, rituals and values share an African influence. Music and humour are the come across elements of their culture.Only 35% of the population share an African influence whereas the easiness are the migrants from Europe. This part is the financial and t he political hub of Brazil.Social class more(prenominal) than half of the population f in all in the deplorable income category .The scrimping is heavily dependent on agriculture. It is more labour intrinsic typeface of job. Most of the women in the family are ho expenditurewives.Only 21% of the entire population fall in the low income category and most of the women are from the work class.Group MembershipMost of the women meet and wash their clothes in public wash or pond in a group. Cleanliness organism an issue of gossip, e really woman tend to keep their family clean to divert the group.Most women own a washing machine so self-importance esteem and social status is habituated less importance.The purchase behaviour of a customer depends on heterogeneous pointors as shown in the draw below. The social influences are the subjective norms.Apart from damage of the detergent, the important attri scarcees for the north east customers as per the rankings arePower of detergent Its fragranceThe great power to remove stains without the need of soap and bleachThe dissolving power with the irrigatePackagingImpact on coloursWhereas the south eastern customers are habitual decision comprisers. They would prefer to drill the same detergents that they are victimisation unless they dont get any flaws.BRAND PLAYERS AND THEIR STRATEGIESUNILEVERTOP BRANDS Omo is the top grass of the portfolio and is considered as a high quality at a indemnity grade which is for the high end market. Omo has more than half percentage of the total market share in Brazil .Minerva is a medium quality e genuinelywherelap with low stain awareness and second in market share. Campeiro is a well-known cheapest result but with a low top of the estimate penetration. The target customers of Unilever were the high income portion. The highest profit margin that Unilever generates is from the sales of Omo.STRATEGY use With the help of shops worry Omo Unilever was the market pioneer i n Brazil and because got the outgrowth mover advantage in the detergent sector. Unilever is the LEADER in the market. It followed the dodge whereby it created the most desirable market space in the minds of the consumers as seen by the Top-of-Mind-Awareness results. (Exhibit 8)Their main dodge is to advertise and increase the sales oddly of Omo as the profits generated from their detergents proves a backbone for their expansion in food for thought and personal care categories. Unilevers main line of promotion was through the media advertising. This is cost effective and irrespective of the income, Brazilians are avid television watchers. emplacement The various proceedss of Unilever are positioned as per the growth and its appeal. Its spot trims from removal of stain by eliminating the need of bleach (Omo) to delivering pleasant smell and softness (Minerva) to cost decrease (Campeiro) dissemination Unilever had the daunting task of distributing to 75,000 small outlets in the northeastern United States. For this it relied on its quick network of generalist wholesalers and sometimes alike on secondary, smaller local anesthetic wholesalers. This however increased their cost. It as well as had the option of contracting with the specialized distributors.PROCTER guessTOP BRANDS adept is of the superior quality and is still sold at a land price than its second denounce. Through research and development, their strategy would be to improve the price and the perceived quality of Bold and Ace which is in competition with Minerva and Omo respectively.STRATEGY USED PG is a MARKET contest which is aggressively trying to extend its market share. It has specific disputer strategies interchangeable VALUE PRICE GOODS AND SERVICES and IMPROVED SERVICES. The advertising is not very effective as the consumers dont exact much knowledge or a top of the brand awareness as compared to the otherwise brands in the market. lay Like most of the crossways of Uni lever their products are also positioned depending on the target customers. devil of their main products are positioned similar to Unilevers products e.g. Bold and Pop whereas Ace is positioned as a superior whiteness source.ASAASA is a local Brazilian brand and is only popular in NortheastTOP BRANDS Invicto which is an intro direct detergent as it is a low cost detergent and value by its customers. It is a key competitor of Campeiro and focuses on cost lessening across all dimensions.STRATEGY USED They are the MARKET NICHERS and get down been serving a special separate of the market as a whole.POSITIONING Positioned the like Campeiro i.e. as a low priced product turn out OF UNILEVER IN BRAZIL (AS PER CASE)PRESENT SITUATIONUnilever is the pioneer of consumer seriouss industry in Brazil and a clear leader in the detergent mill category with an 81% market share achieved by brands like Omo, Minerva and Campeiro. The Brazilian fabric wash market consists of two categories dete rgent powder and wash drawing soap. It faces a huge threat from PG and hence Unilever should look into tapping the niche markets in advance its competitors entry into themSTRENGTHSDetergent market pioneer in Brazil. Hence gained the first mover advantage which proved very favourable for its successUnilever is a strong brand in itself and has wide acceptance for its products all over the worldHave a wide range of brands i.e. boast a strong brand portfolio which caters to different market atoms. For e.g. Omo is more technology oriented, Minerva clings to its horny appeal and is a traditional brand, Campeiro focuses more on cost lesseningThey are innovative and customer centric in their approach. E.g. introduction of 4 new variants of Omo. Each of them take up different properties targeted at specific ask of customersDetergents provide always remain the cash cows for UnileverWEAKNESS problematical to make a selection with respect to cost effectiveness amidst the Generalist Wh olesaler and Specialist Distributor since both could prove to be equally useful in its own way and once selected very hard to reverseVast difference in distribution of social classes in the Southeast and Northeast. So similar strategies and products will not have the same result and tycoon also vary vastly from the expect result especially in the NortheastIts brand Campeiro is perceived to be low on quality since it is also low pricedHigh handiness of substitute productsOPPORTUNITYTap the niche market i.e. the untouched low income sector before the competitors penetrate in that locationChange the positioning of detergents in the minds of the northeasterlyers so as to increase the use quantitativelyMake use of the high frequency of washing tendency in the Northeasterners which would improve product sales in this areaOmo has the highest Top-of-Mind-Awareness amongst the Northeasterners (approximately 70%). This can be utilize as a way to generate awareness roughly Unilevers other brands and also for the product which needs to be directed to the lower income consumer fraction (exhibit 8)Improvement in Brazils overall economic performance thitherby amend the purchasing power of the natives and especially the lower income consumersAdopt appropriate strategy targeted at the lower income group so that Unilever successfully manages to tap all the classes of peopleIntroduction of more technology based and innovative products like OmoTHREATSRapid growth and improvement of PGs RD and marketing expertiseNortheasterners manner of use detergents is different from the Southeasterners. As per this logic the use of detergents is less with the NortheasternersPreference of wash drawing soap over detergent powder in the Northeast. This would pose a challenge to the lower income consumer segment product which the company wishes to market challenger brands like Bold, Pop and Invicto are direct competition to Minerva and Campeiro with regards to quality and priceThere is al most equal market penetration of the competitors brands with Unilevers brands. For e.g. Invicto, Ace, Campeiro (penetration in the range of 60-80%)Introduction of local products by smaller companies with better distribution equipment casualty war with other giants like PGUNILEVER IN BRAZILAs given in the case study, Unilever in Brazil has a strong 81% market share by means of its three brands Omo, Minerva and Campeiro. Question at hand isWhether or not to market detergents to lower income consumers in Northeastern Brazil andHow to go about itThe lower income segment isnt tapped by any of the giants of the detergent industry hence it provides opportunity to the company for growth in this segment. Also there is a need for good products turn backing the flagship brand Omo combined with affordability as clearly seen by the example stated about Maria Conceio.TREND IN BRAZILAs per case study it is known that Northeasterners deliberate bleach is a must for removal of stains detergent pow der is used only to make the clothes smell good. For the Northeasterners cleanliness is perceived as important despite of their low income survival. Cleaning of clothes for them is also seen as a measure of dedication of the woman of the family. Hence the challenge is to change few age old perceptions and yet successfully make a mark in the lower income segment. For this Unilever will have to change over the laundry soap users into an Omo class user. This is a long term strategy but yet a feasible one.WHY CHOOSE take down INCOME GROUPEnter lower income group segment before PG penetrates thereDetergent market in this segment will always be a cash cowNeed gap analysis shows that there is an existing need for good detergents in this marketIMPLICATIONS OF MOVE absolutely TERM IMPLICATIONS First mover advantage, shift of investment of money in low price brand from premium brandsLONG TERM IMPLICATIONS mart leader in low income detergent market, without a shift in Omo customers the new b rand will be able to attract lower income customersWHAT SHOULD BE DONE?There are various options with Unilever. Namely,Launch a new product in the market targeting the lower income consumer without cannibalizing its own premium brands extensively Reposition one of its existing brandsHave a cheaper reading material of Omo/MinervaCarry out an extension of one of the existing brandsI believe that Unilever in Brazil should carry out PRODUCT LINE EXTENSION. herewith they should introduce an additional item in the same product category. Unilever should have an extension of its brand Minerva named Minerva Progress (similar to Omo Progress which removes difficult stains without bleach and laundry soap). Minerva Progress should be positioned between Omo and MinervaPROSThe positioning of product between Omo and Minerva will help gain visibilityCan promote positively victimisation Unilevers brand nameGood market penetration of Minerva as a brand1CONSMinerva as a brand is perceived to be a me dium quality brand with less Top-of-Mind-Awareness2Fierce competition with PG brands like Bold and AceWHY EXTENSION OF MINERVANot possible to have a low cost product under the Omo brand since this would circumvent the consumers about the original Omos credibilityLaunch of a new product will not be cost effectiveHaving an extension of Campeiro might not be successful due to the original image of the brand as a cheap quality brandRepositioning of any of the top brands might confuse the consumers and Unilever might lose its loyal customersMinerva having a good market penetration can perform well if the positioning for the extended product is done appropriately. Also as per Exhibit 8 the consumers in the Northeast have good knowledge about the Minerva brand (rated second after Omo). Hence the company should capitalize on this fact and thereby build a route to tap its lower income segment by using the brand name.A MARKET RESEARCH SHOULD BE CARRIED OUT TO UNDERSTAND THE RANGE IN WHICH TH E CUSTOMERS WOULD BE WILLING TO slip awayMARKETING MIX OF MINERVA PROGRESSPRODUCTA new radiation pattern should be bring aboutd to match the requirements of the customers and at the same time not change magnitude the costProduct should have attributes as per requirement of the lower income segment especially cleanliness, whitening and productivity3Along with price the product should match the six key attributes important to this segment. Formulation should have more stress on stain removing capability while keeping Minervas original features sacrosanct like perfume and softnessThe product should be made useable in various sizes and types. This would be apt for customers who do not use a large quantity of product per month. This would also give a notional feeling to the customer of having spent lessUse of furtherance other than cardboard boxes e.g. plastic sachetPRICEThe price of the product should be affordable for the lower income consumersThe company is increasing the cost on readiness and nullifying it by cutting down on packaging chargesThe product should be such that it is priced less than Omo and Minerva itself but a little more than CampeiroUnilever should rent PENETRATION PRICINGfor its product whereby the profit margin for Unilever would be less but it would maximize unit sales and increase market share in this segmentAdoption of penetration pricing would also discourage the competitors entryAlso initially Unilever can have an INTRODUCTORY PRICE for the product which would encourage people to purchase the productSUGGESTION Unilever can also get into backward integration to reduce its cost thereby managing to produce low priced productsPL thaumaturgistUnilever should sell its products at all places in the NortheastSince the big shopping malls are perceived to be expensive it should demo its products at local storesUnilever should display Minerva Progress along with Omo. This is because Omo itself has a good image that even this product will b e highlighted to all the customers forwardingProduct should not be advertised as a product meant only for the low income group since this might create a detrimental impression about the companyMedium like hoardings, radio, television should be usedAbove the line promotion should be emphasized on more than below the line advertisingSales promotion activities should also be carried out heavily which are directed at the customersDISTRIBUTIONIntensive distribution should be used to make the product purchasable extensively in all the retail outletsTo target the lower income segment Unilever should adopt the Specialized Distribution method as given in Exhibit 13PUSH STRATEGYInitially a free energy strategy should be used wherein the product is pushed at the customers and made wide available to them. Then depending on the demand forecasts a push-pull strategy should be used.POSITIONINGFRAME OF REFERENCE DetergentsPOINT OF DIFFERENCE Quality with affordabilityPOSITIONING Attribute and be nefit positioningSTATEMENT THE MORE THE BETTER OR THE LESSER THE BETTER.WE GIVE YOU BOTH MORE QUALITIES FOR LESSER PRICEperceptual MAP200MINERVA PROGRESSOMO2000100ACEBOLDPERCEIVED QUALITYPRICE INDEX100CAMPEIRO embark onINVICTOMINERVA= UNILEVER= PG= ASA