The Purchase Of Detergent Powder In Brazil Marketing Essay

The Purchase Of Detergent Powder In brazil Marketing EssayFollowing is the consumer behaviour with respect to the purchase of detersive pulverization in brazil explained through consumer decision making emergence. overlap Choice military rank of optionsInformation researchProblem RecognitionPost-purchase paygradeProblem RecognitionAccording to Solomon et al (2009) the problem recognition occurs when in that location is a gap between the desired country and actual state of a consumer. From the case inferred that,People in spousal relationship einsteiniumern portion of brazil-nut tree wash wearing appargonl to a greater extent frequently and they see cleanliness of clothes is fictional character of their culture. They entrust change their detersive powderise if they felt that their clothes atomic number 18 not clean enough.Most of the families own a rinse apparatus in southeastward character. People in this vicinity observe doing process as a duty and find way s to make subroutine easier. They will change their detersive powder if it is not to their expectations.Information SearchSolomon et al (2009) verbalise that once the problem is treasure consumer will do an internal and external check to find doable solutions that might resolve his problem.Women in the north east character wash their clothes in public laundry. This go aways them the option of taking advice from their peer group in choosing the detersive powder, or point of purchase advice from the store owners or from their past discover a section from information through advertisements.On the contrary, Southeast consumers wash their clothes alone at home since closely of them own a washing machine. Therefore, their information search is restricted to television advertisements and the advice from small store owners.Evaluation of optionsSolomon et al (2009) verbalize that once consumers identify the possible solutions they will label the alternatives development their respective convincing attri scarcelyes to find the best solution which stool solve their actual problem.The prominent attributes for majority of the Brazilian consumers atomic number 18 hurt, ability of the detergent, nock and their past experience.Product ChoiceAccording to Solomon et al (2009) season making the final choice on bar form for or using a reaping consumer is influenced by near factors. There are threesome principal(prenominal) categories which will influence the consumer decision,1. Internal influences2. Situational influences3. Social Influences1. Internal influences on consumer decisionFrom the case inferred that people in northeasterly part are highly sensitive to terms than to the fall guy itself. Whereas in southeasterly contribution people are more blot conscious and go by their top-of- mind awareness.2. Situational influences on consumer decisionThe Belk (1975) cited in Sydney et al (2000), has defined five situational variables which can in fluence the consumer purchase at a particular act and place. They are Antecedent states, task definition, tangible surroundings, temporal perspective and fond surroundings.While purchasing a detergent powder, people in atomic number 10 region are influenced by the antecedent states (Brand preference and price sensitivity) where as in south-east region people are influenced by physical and considerably-disposed surroundings the likes of display place of detergent powder in the store.3. Social influences on consumer decisionSolomon et al (2009) stated that consumer appraising(prenominal) criteria generally vary across social class beca economic consumption of their variations in education, attitudes, values, income and parley style.Most of the women in northeastern region are under comparable economy class and shell out a common washing answer of washing their clothes in public laundry. Therefore, their decision on purchasing detergent is directly influenced by these social groups.Post-purchase EvaluationSolomon et al (2009) stated that after purchasing the fruit consumer will evaluate how in force(p) a choice it was. The result of this evaluation is consumer satisfaction or dissatisfaction on the product. Table1 shows the list of attributes used by Brazilian consumers to evaluate detergent powder.Table 1North-east RegionSouth-east region skill to clean and white clothes.Smell of a detergent powder.Ability to remove stains.Easy furtherance.Ability to clean and whiten clothes with less effort.Key industry players in Brazil detergent powder groceryUnilever at a contemplateUnilever has started its operations in 1929 and launched its most successful defacement OMO in 1957.Unilever is the attractor in detergent grocery store of Brazil with an 81% market dish out achieved with brands like OMO (Favourite brand of Brazil), Minerva (brand change as detergent and laundry soap) and Campeiro (cheapest brand of Unilever).Unilever wanted to plus sales b y adopting penetration strategy. For the same, they launched their favourite brand OMO with four extensions viz. OMO Multicao, OMO Progress, OMO Cores and OMO Maquina. Each brand had its unique characteristics to target the alter consumers.Procter and Gamble at a glanceProcter and Gamble started its operations in 1988 and acquired a Brazilian company Bombril in 1996 which has brands like Quanto, Odd Fases and Pop. With his terrible RD migrated Quanto towards Ace and Odd Fases towards Bold, Ace and Bold are PGs popular planetary brands.Procter and Gamble is in second place of Brazilian detergent market by holding 15% of market get by.Procter and Gamble strategy is to sneak in the market by acquiring the local theatres and their dispersal channels. This seemed a follow effective strategy than developing own dispersal channels.Local ManufacturersA local brand Invicto is holding a 5% of market dispense in Brazilian detergent market.Invicto is the cheapest brand in northeastwa rd region of Brazil.Invicto follows a concentrated merchandise strategy through mainly targeting the low-income consumers.Unilever grind away depth psychologyStrengths high school Brand Recognition Unilever brands are highly recognised in the north east part of the Brazil.Market Penetration High percentage of consumers in north east region of Brazil bought at least one unit of OMO or MINERVA which are the brands of unilever.Top of wit Awareness we have best results for the top-of mind awareness for unilever brands in north east part of Brazil.Unilever is a worldwide recognised company with a portfolio of 1600 brands which includes 45 key detergent brands.As of 1996 Unilever is a leader of the detergent market sector in Brazil by holding 81% market share.Pioneer of consumer goods industry in Brazil.WeaknessThe price of OMO is perceive as high than all the detergents procurable in north east part of Brazil.The cheaper brand of unilever Camperio is perceived as a low- prime(a) bra nd in the market.Except OMO, the other brands of unilever are perceived as low quality than the main competitor brands Bold Ace.Unilever is facing a big distribution problem in distributing his brands to the approximately 75,000 small outlets spread over north east region of Brazil, which are the key shopping areas for low-income consumers.OpportunitiesFederal and local governments providing tax incentives to companies investing in the north east region of Brazil.The detergent market in north east region of Brazil is maturation with an annual rate of 17%.Women in north east region wash clothes more frequently and they see cleanliness of clothes is part of their culture.Strong economic recovery in 1995-1996 leads to increase the purchasing author of low income consumers by 27%.ThreatsStandardization of strategies is not possible with the socio-culture varietys among the ii region of Brazil.Threat from local brands is higher which are cheaper than the Unilever brands.There is a h igh competition from porter gamble with good worldwide marketing expertise.Market SegmentationIn a study by cleft Dibb and Lyndon Simkin (1991) stated that distinct customers have different of necessity and desires. It is not possible to see all customers with a single product or service. Companies are shifting from mass marketing to target marketing strategy where the contract will be on a particular group of consumers. This process of dividing market into different groups is called market departmentation. The process of membering the market consists of three main elements.SegmentationTargetingPositioningSegmentationThe market can be segmented in many ways. Table 2 shows the different options for marketers to identify different segments in the market.Table 2DemographicsSocioeconomicsGeographyPhysiological and behavioural differences among consumerAge, Sex, family, race, religion.Income, occupation, education, social class.Country, region.Purchase behaviour, consumption beha viour, attitude to product, lifestyle and personalitySegmenting by SocioeconomicsIn northeastern United States region the per capita income was only near 2,250$. 40% of people in north-east region are illiterate. The lifestyle, culture and religion of people in this region were influenced by African culture.In south-east region the per capita income was around 6,600$ (more than double of north-east region). Only 15% of people in south-east region are illiterate. Most of the south-east part was influenced by European cultureSegmenting by Psychological and behavioural differences among consumer73% of women in north-east region think that bleach is essential to remove stains and use detergent powder primarily to make the clothes smell good. Where as in south-east region only 18% of women think bleach is essential to remove stains.Frequency of washing clothes is higher in north-east region than south-east region.North east region people of Brazil find cleanliness of clothes is part of their culture.In south-east region most women uses washing machine for cleaning clothes, for them cleanliness of clothes is less important for self-consciousness and social status.In a study by Sally Dibb and Lyndon Simkin (1991) stated that segmentation definitely will help to identify the different consumer segments but slapdash implementation will leads to failure. The segmentation process must carry through the following criteria. Segments must be identifiable, executable, stable, marketable and controllable.In this case Unilever should segment the Brazil detergent powder market in to north-east region and south-east region.TargetingOnce identified different market segments, managers has to make decisions virtually how many and which customer groups need to target. In a study by Sally Dibb and Lyndon Simkin (1991) stated that the decisions would be like,Concentrating on a single segment with one product/retail brand Offering one product/retail brand to a number of segmentsTar geting a different product/retail brand at each of a number of segmentsBecause of socio-cultural differences among the twain regions of Brazil the standardization or undifferentiated targeting strategy will not work. The tailor made and differentiated marketing strategy will give the best results.PositioningPositioning is not about doing something to the product it is what is created in the minds of the targeted consumers. In a study by Sally Dibb and Lyndon Simkin (1991) stated that the scrap here is to translate the needs and wants of the targeted consumers into a tangible mix of product, price, promotion, distribution and service levels with maximum appeal.North-East regionMost of the people in this region are illiterate and low income people.Most of the people in this region believe cleanliness of clothes is part of their culture.To pander the preceding(prenominal) needs of the consumers and to achieve higher market share in this region unilever focal point has to position their product as low price with high quality. southeasterly regionMost of the people in this region use washing machine to wash their clothes, cleanliness of clothes are less important for egotism and social status. People in this region are not price sensitive towards detergent powder as long as it has good quality.To satisfy the above needs of the consumers and to achieve higher market share in this region unilever management has to position their product with high quality.Portfolio AnalysisBCG (Boston Consulting Group) MatrixBCG matrix helps marketers to find the potential brands in the market.BCG matrix for Unilever detergent brands in north-east region of Brazil.Stars Question Marks ()OMO CampeiroCash overawe Minerva Dogs BrilhanteHighMarket Growth Rate subalternHigh LowRelative Market ShareDiagram Adopted from BCG Matrix (Solomon, ordinal edition)Stars OMO has a dominant market share in north-east region of Brazil. Because OMO has a potential growth, managers have to design strategies to increase market share in the competitive environment.Cash Cows Minerva which is the only brand to sold as detergent powder and laundry soap it has a bonny market share in north-east region.Question marks () Camperio has a low market share in north-east region. People perceive Camperio as a low-quality product. To increase the market share Unilever has to memory his Camperio brand in north-east region.Dogs Brilhante has a zero market share in north-east region. Its better for Unilever to stop the marketing of this brand in north-east region.BCG matrix shows us on which brand Unilever has to invest to increase its market share in north-east region. But how and what actually we have to do to increase the market share, marketing mix will help firm to accomplish its objectives by using product, price, promotion and place decisions.Marketing cockProductNorth-East regionCamperio is perceived as a low-quality detergent which is the cheapest brands of Unilever. Repositioning of Camperio with new packaging and with new advertising message like Improved Quality with low-price in this region will help to increase the marketing share of Unilever.Repositioning of existing brand would be comfortably recognised by the targeted consumers than launching the existing brand. Repositioning of existing brand would not lead to any incremental marketing costs.In this region most of the people using OMO and the results showing that consumers are well satisfy with the quality of the product. Even the low-income people like Maria would love to buy OMO, only because of their tight budget they are going for cheaper brands.Solution to the above problem is selling the detergent powder through small sachets. monetary value of the product can reduce due to the small quantity which will not cannibalise the existing product.All the low-income consumers will highly satisfy when they get their high quality product in low price. The thinker of selling the detergent powder in sma ll sachet will lastly help unilever to increase their market share.Packaging should be simple and distinctive and should be based on culture that is the colour selection and the graphics. atomic number 34 regionIn south-east region OMO and Minerva will go well as the people in this region are not price sensitive.PriceUse Pricing Strategy to defend its strong competitors and reposition Camperio brand with more attributes than that of competitor with less price to retain and gain the market share.PromotionThe advertising message should be different for north-east region and south-east region because there is a cultural difference and variation in literacy rate within the two regions.As Brazilians are more television watchers Unilever should go with 70% of media advertising with more stress on product price and accessibility in its different packaging sizes.In south-east region advertising message should concentrate more on product benefits.In north-east region they should go for drawn-out media advertising emphasizing more on product price and availability of packaging sizes to wipe out the negative perception among the consumers.In north-east region most of the people are illiterate they often depends on the advice of a retailer while purchasing a product. Marketers of unilever can use a push strategy in this case to promote their product, providing some incentives on number of sales to distributors and retailers.PlaceExtensive distribution is necessary in north-east region by making the product available in small stores.Unilever management should provide some employment to the women in north-east region as sales girls to sell their products which will ultimately help to increase the word of mouth among people and sustainability of marketing.In south-east region most of the people decision on detergent powder resembles as habitual decision making, in this region point-of-purchase (ex displaying of cigarettes near money counter) display will help to increa se the sales.