Q4 – Notes on marketing for Unilever in brazil

The marketing focus for the new product – Minerva Perfeito XXX – is on the low-income consumers who
aspire for a quality brand, however, do not have the means to purchase the relatively expensive brands
like OMO. There is no other brand of detergent that is focused only on use for hand washing, hence
creating a gap in the market which we want to fill with the new product.

Most of these consumers do not have a washing machine and consider washing as a pleasure activity.
The clothes are generally washed in public places while socializing with others, hence a product which is
perceived as a cheap product is not preferred. Also, the focus is on whitening and perfume as the
cleanliness of clothes has a substantial social significance.

Keeping these in mind, below are the various aspects of Marketing Mix that we are pressed on to:

Minerva

 Formulation
o Use Minerva’s existing formulation with reduced dissolving power, thereby reducing the
cost of production
o Emphasis on ability to remove stains without use of bleach, which is an important factor
in NE consumers. The product would provide whitening without the need of bleach
o Smell: build on Minerva’s existing positioning on smell, use it as a point of
differentiation from competitors.
o Optimized for personalized handwash only.
 Brand
o The new product is an extension of the existing Minerva brand which can be used with
both the washing machines and hand washing
o Leverage Minerva’s existing brand knowledge for lower incremental marketing costs
o There is higher chance of cannibalization within Minerva products, however the overall
growth expected from Minerva Perfeito will offset the margin lost from the existing
product
 Promotion
o 30-70 promotion – The promotion will be 70% focused on below the line
communication and marketing. This is because the local small store owners would need
to be motivated to sell the new Minerva Perfeito.
o The promotional cost incurred would be only 1/3rd cost of traditional marketing
o Targeted marketing to Low-income customers in brazil
o Lower cannibalization than ATL - Above the line marketing would increase the
awareness of the product among the customers to whom the product is not targeted
o Marketing to be focused on ‘Mothers who care’ and promote personal touch to washing
clothes
o Think and evaluate at least 2 promotion strategies - Include carnivals, Maracatu
o What should we tell small store owners?
 Packaging
o Minerva Perfeito is planned to be sold in 2 package types:
  The initial purchase will have a cardboard box packing, priced at $2.1/kg. The
packaging cost in this case will be $0.35/kg
o
 The subsequent purchases will be a refill of the original cardboard box, priced at
$1.9/kg. The packaging cost will be $0.15/kg only
o The packaging will be simple and easy to use.
o The packaging will also include colours and photos from carnivals, maracatu, etc for
identification of product with the local values

2. Should it target the NE Brazil market ?

Brazil NE market offers a