Unilever Brazil Action Plan, Essay Example

Executive Summary

The single most rewarding opportunity faced by the company is the opportunity of expanding new markets. This situation is an opportunity because there is an opportunity to capitalize on the low end consuming aspect of the market. In order to take advantage of this opportunity the company should introduce another product in a market here it has market dominance (Unilever 11).

Action Overview

To take advantage of this opportunity the company should developan inexpensive clotheslaundering product.

Strategy:

The target market would be the lower end consumers of laundry detergents.

The introduction of a new Unilever laundry product into the market may detract from other products in which Unilever has dominance (Unilever 14).

Tactics: The proposed tactics would be to introduce a promotion where the product is well known due to the Unilever brand, supply the product at a lower price, guarantee that the product will perform better than other products at an equivalent price and provide an adequate distribution chain of the new laundry product (Social Marketplace 11).

The product features would be a high performing product The Unilever name is well known across Brazil (Unilever 6).

The product would be distributed to the lower end consumers who are sensitive to price. The price would be lower than equivalent products provided by the competitors

The identical distribution chains may be applied in order to distribute the new laundry product as the products which are presently being distributed by Unilever.

Above the line and below the line communications may be applied in the promotion of the new low cost laundry detergent. The ABL and BTL communications may be applied in conjunction s with specific product promotions in order to increase brand awareness (Social Marketplace 11).

Action Rationale

The proposed actionis the best approach to take advantage of the identified opportunity for the following reasons:

The proposed action would increase the brand awareness of a targeted market segment to the Unilever brand. This would enable other products to be introduced to the market while minimizing the advertising expenditure. The drawbacks are that in introducing a low cost laundry detergent into the market where Unilever has a large market share, the clients may migrate from using the higher priced laundry detergents which are provided by Unilever to the lower cost laundry detergent which is proposed (Unilever 14). The benefits are increased product exposure and the good will that would be generated by providing a high performance laundry detergent to a market segment which is composed of lower end laundry detergent consumers (Social Marketplace 6).

The profits would continue to be produced for Unilever and the market awareness of the brand would increase These are details which should be addressed as they have the potential of drawing clients away from other Unilever products to the lower cost brand (Unilever 140. The production and the price of the new proposed product would justify the marketing promotion. The increased exposure would open doors for the introduction of other products (Social Marketplace 11).

Works cited

Social Marketplace. “Quality design for the poor.” Social Marketplace 1.1(2010): 6- 7.  http://thesocialmarketplace.org/wp-content/uploads/2010/10/the-social-marketplace

Unilever.“Unilever in Brazil (1997- 2007): Marketing strategies for low income consumers.” MG506 Global Marketing, 11 August 2011. Web. 16 February 2014 http://www.slideshare.net/seanpaulcu/marketing-strategies-for-low-income-consumers