MKTG 322 Lecture Notes - Lecture 6: Hand Washing, Expensive Taste, Laundry Detergent

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February 6, 2017
Unilever
In Brazil 1997-2007
Marketing strategies for low-income consumers
Question 1
Evaluate low-income segment of consumers in Northeast. Should Unilever target
this segment? Why or why not? Go or no-go?
Uileer’s rad portfolio
$56 billion company
1600 brands
45 detergents
In Brazil, in laundry detergent, food, and personal care
Detergent is the primary cash cow
This provides some risks and opportunities
Omomost expensive one, has the strongest ingredients, premium quality,
premium price
Minervasecond most market share, has two formulations, detergent and soap
Go
Customers have an effective demand
Size of the market is a fairly large group, fairly substantial demand
They need growth, have 81% overall but only 75% in NE area
Market penetration is high, need to get people to purchase more if they want to
grow
Pre-empt competitors
Do’t hae aythig that targets Lo Ioe NE osuer
Can leverage brand equity from existing brands
Resourcesthey can afford to make some mistakes to learn
Transfer of knowledge (to things that they might consider pursuing)
No-Go
Cannibalizationhave some market share, could this new product decrease
their market share size?--risk their current portfolio (doing well)
Brand dilutionwill it confuse the message of the consumers? Is it high end? Is it
low end? What does this mean?
Can influence other parts of the company (large company could influence other
products)
Segmentation dimensions
Observable/Unobservable
General/Specific
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February 6, 2017
This would be generable/observablebased on geography and demographic
focusing on income and geology
Can link these to the benefits that they want out of their products
Basing people on what they want based on characteristics we can actually
identify
NE/SE
SEbigger cities, bigger populations
SEGDP is much higher
Customers in SE
Using more washing machines, will change product needs
Functional attribute
Washing is more of a chore, do by yourself, needs you have for product differ
faster, easier
Customers in NE
More gdp, less spending power, a’t uy lots of hat is o the arket
Wash their clothes more oftenfrequency will need to buy the soap more often
Symbolic value, social need
Washing clothes signals something to other people as well
Where they wash it is a lake/river, opportunity to socialize/meet other people
feel eig judged y ho they take are of their faily
Relevant and Effective Segmentation
3 basic criteria
o Practical
Measurable, accessible
o Differentiable
distitie i differet ays, i ay that’s eaigful
Segments are internally homogenous and distinctive in a
strategically meaningful way (segments respond differently of
marketing mix)
o Effective demand
Cost effective, substantial
Customers Go
Demand, substantial
Have distinct needs
Are interested (just an affordability issue)
Still have expensive taste
Growing
Customers No-Go
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