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Selected Case

published: 28 Feb 2013

Abstract:
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.
Instructors can access video interviews with the managers mentioned in the case, television commercials, and PowerPoint presentations to be used in the classroom or as handouts on the dedicated case website using the login and password mentioned in the teaching note.

Pedagogical Objectives:
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 behaviour 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.

Keywords:
Media Support, Branding, Low-Income Consumers, Marketing, Poverty, New Product Introduction, Break-Even Analysis, Advertising, Pricing, Poor, Distribution, Promotion, Product, Powder, Detergent, Guimaraes, Brazil, Unilever

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