Unilever is a huge company that is successfully operating in the Brazilian market. It is positioned as the premium level company with high quality products and average prices. This company is a leader in the markets of laundry soap and detergent powder. No matter how big the company is and what profits it has, it should have a strategy of continuous growth because it can be displaced by competitors. Unilever is the industrial leader and it has no place to grow, therefore it should expend to other market segment. Therefore, Unilever needs to enter a low-margin segment with the new brand product, and name. In order not to lose reputation of its brand, company has to develop a new campaign and under its slogans to enter the new market. For example, the new campaign may be called “Soap revolution”, etc. In order to continue the premium brand investments, Unilever may sign a contract with the local companies and pay them for the new product development and its production. In the long run, company would become one of the leading ones in the low-margin segment, and would raise its profits and shares’ prices. Company may meet such risks: product development barriers, strong competition, the risk of fail also exist but its possibility is very low.
The new brand development is a good chance to attract the needed customer segment. The new brand name in the market is always the fresh idea and it sounds attractive to customers. New name will attract the customers just because they would think about the new effort, new experience and new impressions. Anybody is not fully satisfied with the products that they use, especially what is connected to the low-margin segment. People will always try to find the better tool to make their clothes cleaner, fresher, and spotless. Therefore, the new brand will attract customers to try and the good quality of the Unilever project would make them regular customers and users of the new brand. The process of brand development is very long and costly, but it would need less effort than to reposition the brand and to apprize customers about these changes. Brand repositioning can make people doubt about product’s quality and the reasons that force to change its position and brand image. This can decrease the market shares of Unilever Company.
Product. As the new brand would be created it should not fully be associated to others brands of Unilever The customers would be willing to try the new products if it has some priorities comparing to the existing ones. The new brand should be a little less pricy then Campairo; it can be made with the unnecessary ingredients illumination/reduction or the decrease of perfume quantity usage. The new product would have to use different packaging, like cardboard boxes and plastic sachet, which would also have different prices. Package should be small sized in order to match the average earnings and needs of the family.
Price. The new brand for the low-margin segment should be less costly than Campairo. It will give enough profit to cover expenditures and the low price will target more people and raise company’s earnings.
Place and promotion. The main target place where company’s potential customers are going for shopping is local stores and supermarkets. Such outlets are the most visited places of low-income customers; it is the place where they are chatting, exchanging experience of the used products. Promotion of the new brand should not be too costly, but at the same time it should be highly effective. Therefore, the best decision is to develop big posters inside the stores and on the windows. It would be also good to place some familiarization materials near the selves with the new products. The TV promotion can also be used, but as our target consumers are women that are sitting at home at day time it would be effective to place Unilever’s new brand adverting campaign in the morning time. This would make advertising campaign not too costly but very effective.