Unilever in Brazil; Low Income Consumer Market
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Unilever’s mission is to add Vitality to life.
Unilever meet everyday needs of nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life
Lever brothers started the company called Unilever in the year 1929 in Sao Paulo. Unilever has achieved a market capital of $56 billion with 300,000 employees in 150 countries with 45 different brands.
In 1930 Unilever launched their first detergent soap named sunlight soap. OMO detergent powder was introduced in the year 1957 which was a big success. Unilever extended its products to personal care in the year 1960 and food operations in 1970’s .
In 1996 Unilever was exploring growth opportunities in Brazil by marketing detergents to low income consumers.
Brazil is the largest country in South America with 8.5 million Sq Km area and 170 million population.
Brazil is divided into 2 major regions Northeast and southeast. Two regions vastly differ in terms of wealth, culture and needs.
Until 1994 brazil’s economy was under recession. After the introduction of “Plano real” GDP grew by 2.6% per annum, effectively increase the purchasing power of lower income consumers who were 10% of the population by 27%.
Majority of the low income consumers were concentrated in north-east due to history of colonization.
Unilever had 81% of market share in detergent business with its 3 brands Omo, Minerva and camperio
Unilever in Brazil; Low Income consumer market
In order to gain market shares through the low-income segment of the Brazilian market, Unilever should offer Detergent Powder brand at an affordable price in the long-run, this cheapest brand. However this strategy may face many risks.
With 81% of market shares in Brazil, Unilever is the leader of the Detergent Powder market. It owns three brands in Brazil: Omo, Minerva and Campeiro.
Omo is the top brand of the portfolio and perceived as a high quality at a premium position....