Unilever Case Study
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Exhibit A-Regional DifferencesNE ConsumersSE ConsumersIncome$2,250 GDP per capita.53% lives on less than two minimum wages.$6,600 GDP per capita.21% lives on less than two minimum wagesLiteration Rate60% (1-40%)85% (1-15%)Demographics65% mixed African and European origins.30% mixed African and European origins.Clothes Washing Habits28% of households has a washing machine.73% of women think bleach is necessary to remove fat stains.Women scrub clothes using bars of laundry soap; they then add bleach to remove tough stains and only add a little detergent powder at the end to make the clothes smell good.Clothes washed around 5 times/week.67% of households has a washing machine.18% of women think bleach is necessary to remove fat stains.Women mix powder detergent and softener in a washing machine and use laundry soap and bleach only to remove the toughest stains.Clothes washed around 3.9 times/week.Views on Clothes WashingMore pleasurable activities of their week; meet and chat with their friends.Proud to keep themselves and their families spotlessly clean; women see the cleanliness of clothes as an indication of the dedication of the mother.Women wash clothes at home alone; perceive as a chore and are primarily interested in ways to make it easier.Much less important for self-esteem and social status.Exhibit B-NE Consumer Detergent Evaluation CriteriaImportanceEvaluation CriteriaCleanliness, Whitening, Productivity24%Judged by the quantity of foam it produces.Smell, Softness20%Associate a strong, pleasant smell with softening power and gentleness to fabric and hands.Ability to Remove Stains16%Ability to remove stains without the need for laundry soap and bleach.Dissolving Power16%Ease with which the power dissolves in water and the absence of residue on the fabric after rinsing.Packaging13%Prefer distinctive, simple and easy-to-recognize packages that are also easy to open and protect against humidity.Harm to Colors11%Fading colors.
Exhibit C- Unilevers Competitor in Brazilian Fabric Wash MarketDetergent MarketMain PlayerUnileverP&GEntry time19571996Main Brand in Brazil MarketOmo (52% market share, $3/kg)Minerva (17% market share, $2.46/kg)Campeiro (6% market share, $1.71/kg)Quanto/Ace (11% market share, $2.4/kg)Odd Fases/BoldPopMarket Share in Detergent Segment81% nationally(75% of the NE market)15% nationally(17.5% of the NE market)StrengthsHas a clear leadership in this market;Has a long history in this market;Able to draw on a formidable R&D and marketing expertise of the company worldwide;WeaknessUnilevers low-end brand is not attractive enough in the market.No low-end product in the market.Market OpportunitiesThe entry barriers are high due to capital-intensive manufacturing process.Market growth rate is high (17%).Market ThreatsThe softness of the water in NE reduces the advantages of powders.Soap MarketMain PlayerUnileverLocal companies (e.g. ASA)Main Brand in Brazil MarketMinerva (19.1% market share, $1.7/kg)Bem-te-vi (11.3% market share, $1.2/kg)Flora (6% market share, $1.2/kg)Market OpportunitiesSoap is a multi-use product which has a much larger population base than detergent.The softness of the water in NE eliminates the weakness of soap.Market ThreatsThe entry barriers are low because soap is easy to produce.Market growth rate is relatively low (6%).Selling price are much lower than detergents and hard to make break-even.