Case study 1 - Unilever in Brazil Recommend whether or not Unilever should target the low-income consumers in the north east of Brazil Yes high levels of growth in the market segment in the north east market market not yet saturated to be more competitive especially with P&G (block P&Gs entry to the market) Brazilian government giving tax incentives for business in north east Population have a “cleaning” culture Purchasing power of low income consumers grew by 27% Design the marketing mix that will allow Unilever to create value for low-income consumers in the north east of Brazil Product New brand for laundry soap and introduce Ala into the laundry detergent market At the same time reinvent/improve Campeiro cleaning formula and redesign the packaging (use of imaging) Price Same price as competition for laundry soap Raise the price of Campeiro to 1.9$ due to improver formula Place Corner shops New Campeiro sold in corner/small shops Promotion “New improved Campeiro” and on radio stations and TV adds for laundry soap endorsed by famous Brazilian singer. For the laundry soap educate and incentivise small shop owners - merchandising and coupons Determine the likely cannibalisation effect of using this marketing mix. Based on this determination, comment on whether or not Unilever should introduce the detergent See cannabilisation document.