Unilever in Brazil

Unilever is a solid leader in the Brazilian detergent powder market with an 81% market share. Laercio Cardoso must decide: (1) whether Unilever should divert money from its premium brands to target the lower-margin segment of low-income consumers; (2) whether Unilever can reposition or extend one of its existing brands to avoid launching a new brand; and (3) what price, product, promotion, and distribution strategy would allow Unilever to deliver value to low-income consumers without cannibalizing its own premium brands too heavily. This case deals with the question of whether marketing and branding create value for really poor consumers. It can therefore be used in an MBA, executive education or undergraduate core course on marketing management to illustrate the value of marketing and the marketing approach, or in a brand management course to explore the frontiers of branding. This case can also be used in a consumer behavior course to examine the motivations and decision-making process of low-income consumers. Alternatively, it can be used in a global marketing or global strategy and management course to study the way multinational companies adapt their strategy to compete in emerging countries. The case and teaching note contain color exhibits. A media support CD-ROM '504-009-9' is available to accompany the teaching note. Two PowerPoint presentations (in PDF format) '504-009-9A' and '504-009-9B' are available to accompany the teaching note.

This case deals with Unilever home care division and in specific the detergent brands in the two major regions in Brazil : The North East and the South East .
Major differences exist between these two regions in terms of wealth, culture and needs that influence the performances and sales of Unilever detergent brands available in the Brazilian market.
We will explain in a little introduction Unilever the company, its competitor and its performances in the detergent market.
Finally, we will present a proposal on what can