Marketing Strategy for Low Income Consumers

Marketing Strategy for Low Income Consumers After evaluating the Case Study Unilever in Brazil(1997-2007): Marketing Strategies for low-income consumers the following points are credible. After the long recession period Brazils economy is growing and that is reflected on consumers purchasing power(Increased by 27% for the poorest 10%) and market is also growing with 17% annual rate. After analysing various options, I think it would be beneficial for Unilever to choose a strategy for Market development by introducing existing brand from its Latin American portfolio like Ala. New Marketing Mix should consist Good Quality, Low Price, Attractive packaging, Specialized Distribution system and Promotion. Changes in a new marketing strategy is urgently required for Unilever as PG is very aggressively reactive (By acquisition, re-imagining and re-positioning of brands.) Ala should be priced $1.55/Kg (Approx) and should be launched in both box and sachet packing. Sachet packing will be offered with free extra quantity due to cheap packaing cost. We can introduce 2kg 3kg bags with attractive price. Unilever should introduce a new distribution management system that includes both Generalist Wholesaler and Specialized Distributors. Unilever need to build direct relationship with 75,000 small shops by giving credit and incentive. Unilever also be having an option to start production of Ala in NE region, as government is providing lot of tax Incentives that will help Unilever to produce at low cost. Consumer Behaviour Like any other country Brazilian consumers also have their own beliefs, values and lifestyle. Washing is one of the major activity for women in NE and various sentiments and emotions like pride, care, pleasure and satisfaction are attached to it. Washing is a medium of socializing for women in NE, because only 28% household own a washing machine and mostly they wash their clothes in a public laundry, river or pond. Women in NE wash clothes using laundry soap and around 73% thinks that for cleaning clothes bleach is necessary. Current usage of detergent powder is just for giving good smell to clothes. Decision making process for buying a detergent powder in NE is based on several criteria as shown in Table 1. (Solomon et al, 2009 p.155) Table 1: Evaluation Criteria [Source: Exhibit 5 : Unilever in Brazil Case Study] 30% (51.06 Million) of Brazils population earn less than $125 a month. More specifically 25.4miliion in NE and 25.62 Million in the SE.NE consumers are very price sensitive. Diagram 1 Around 40% of Northeast population is illiterate and they generally buy products on the recommendation of local shopkeepers, word of mouth, television advertisements, visual identity and graphics. (Solomon et al, 2009 p.158) In spite of low Income, NE consumers are very self esteemed and sensitive about their social status and cleanliness, so they wash clothes more frequently 5 times a week compare to 3.9 times a week in SE. Washing can be considered as Ego need (Higher-Level Need) for NE consumers according to Maslows Hierarchy of Needs. Abraham Maslow (1970) in his study of Consumer behavior proposed a Hierarchy of Needs and related Products. And refereed Self esteem as Ego based need. (Solomon et al, 2009 p.161) Physiological Need (Water, Food, Sleep) Safety Need (Security, Shelter) Belongingness (Love, Friendship, relationships) Ego Needs (Prestige, status, self esteem) Self Actualization Higher -Level Needs Lower-Level Needs NE Customers needs with respect to washing is more Ego based (Pride, Self Esteem Status) Diagram 2: Maslows Hierarchy of Needs and related Products (Maslow, 1970) [Adapted and modified from Solomon et al (2009), Marketing Real People,Real Decisions,Page 161.] Market Analysis Major Brands in Market Unilever is a Market leader in Brazils detergent powder market with 81% Market share followed by PG with 15% market Other local brands(4%). In Northeast region Unilever is having 75% market share followed by PG 17.5% and others with 7.5% market share. NE Detergent powder market is growing with 17% annual growth. Table 2: Main Players in NE Detergent Market [Source: Exhibit 7 : Unilever in Brazil Case Study] But unlike NE Detergent powder market, Laundry market ($102 Million, 81,250 tons) is totally different and growing with 6% annual growth, Unilever is a market leader in Laundry soap market as well with one brand Minerva (19% market share) and major competitor for Unilever is ASA with a brand Bem-te-vi (11% market share). Table 3: Main Players in NE Laundry Soap Market [Source: Exhibit 7 : Unilever in Brazil Case Study] Strategic Competitive Analysis Unilever has segmented market by geo-demographic segmentation based on Income(High Income Low Income) and geographic locations (SE NE) and currently targeting the high income consumers in SE.(Solomon et al, 2009 p.215-220) Unilever has positioned their products in market with respect to various key features of products like Omo with remove stain with low quantity, Minerva with Emotional appeal and Pleasant smell and Campeiro with Low cost. Whereas PG has started reacting very aggressively after taking in consideration of growing Brazils economy by acquiring Quanto, Odd Faces and Pop from Bomrill. And after making some manufacturing changes, launched Quanto as Ace, Odd Faces as Bold and kept Pop (the low price brand) unchanged. PG positioned their products like Ace with Whiteness, Bold with Softness and Pop with low cost. Table 4: Current Strategies of Various Brands ASA (Local Brazillian Comoany), also segmented market by geo-demographic and currently targeting Low income consumers in NE. ASA positioned its brand (Invicto) in market by focusing the low income consumers. Invicto is one of the key competitor of Campeiro in low income consumer segment. After analysing the complete market situation, I found that currently PG is the most active player of the market though PGs market share is not much high (As they acquired all the three brands this year.). So I think PG will give very tough competition to Unilever in a long run. SWOT Analysis The SWOT analysis is the method of understanding Internal and External Environment of an organization (Kotler 2000, Page 46 and Solomon et al, 2009 p.66). SWOT analysis of Unilever provides a summary of Strengths, weaknesses, opportunities and threats. Strengths Threats Opportunities WeaknessesInternal Environments External Environments Diagram 1: SWOT Analysis Internal Environment Strengths Good Market reputation with 75% market share. High quality products Differentiated Products Brand Awareness Weaknesses Demographic market Segmentation Weak distribution system Lack of Expertise in Customer relationship Management Week RD and marketing expertise External Environment Opportunities NE is a very high potential market (48 million). NE detergent powder Market is growing by 17% annual growth. Unilever can capture NE low income market to enter first in it. Increase in purchasing power of poorest 10% consumers. Brazilian government providing tax incentives for encouraging investment in NE. NE women wash clothes more frequent then SE, so it leads to higher consumption. Threats Economic downturn might affect the growth and sales. PGs RD and Marketing Expertise Cannibalization Local NE detergent manufacturers. Marketing Strategy Segmentation Diagram 2: Distribution of Social Classes Northeast Southeast Unilever had segmented the complete Brazilian market into two segments based on location and Income (demographic Segmentation). (Solomon et al, 2009 p.215-220) But I think Unilever need to create a new segment that will focus consumer in Social class E- E+, because we have 53% (25.44 million) in NE and 21% (25.62 million) in SE. Both the region is having equal number of low income consumers (as per percentage of total population in region). So this new segmentation will target not only NE low income consumer but SEs low income consumers as well (30% (50.70 Million) of Overall Brazil population). Table 5: Distribution of population as per social classes [Source: Exhibit 2 : Unilever in Brazil Case Study] Targeting Market Till now Unilever is a Market leader by targeting High Income Consumer segment (SE). For entering into Low income consumer market, Unilever need to prepare and implement a new targeting strategy because its a very huge market segment (53% NE and 21% SE). So what will be the Unilevers possible targeting strategy? Igor Ansoff (1957) in his study on Strategies of Diversification suggested a marketing tool (Market growth Matrix) and as per Ansoffs market growth matrix, Unilever is having two potential options out of four: Unilever is targeting new market segment, so option 12 automatically neglected. (Ansoff, 1957 p.113) Existing Product New Product Market Penetration Diversification Market Development Product Development Unilever can launch a Completely New Product in NE after RD and according to NE customers need. Unilever can Re-position existing brands or launch brand from existing international portfolio. Market. Diagram 3: Ansoffs Market Growth Matrix [Adapted and modified from Ansoff ,(1965), Corporate Strategy ,Page 109.] Existing Product in Existing Market (Market Penetration) Unilever is already having 87% (National Average is 81%) market share in SE with three brands. New Product in Existing Market (Product Development) Unilever is a market leader in SE higher Income segment, so no need to launch Ala. Existing Product in New Market (Market Development) Market Development can be the best strategy for Unilever in current scenario because Unilever is already having a good brand image in NE. Unilevers main challenge is to develop a market and try to change the washing habit of Low Income consumers by shifting them to detergent powder from laundry soap. New Product in New Market (Diversification) Diversification is the most risky option compared to the others because we are moving into the market with a New Product in which company is having very little or no experience. Market Penetration Product Development Market Development Diversification Low Risk High Risk Diagram 4: Risk associated with Market strategies In the current situation Unilever should choose the 3rd Option (Market Development), because Unilevers existing market (SE) is already developed with 87% Market Share (Option 12) and currently Unilever is looking for expand his business in NE and to capture low income consumer in SE as well. What all options are currently available to Unilever in Market development? Positioning the Product (Marketing Mix) Positioning Positioning New Brand in NE market by fulfilling customers need Distribution Specialized Distribution High availability Price Low Price (affordable) Product Fulfill NE Consumers need Good Smell Low Price High Quality Promotion TV Advertisements Sponsoring local Events Sample distribution Diagram 5: Marketing Mix [Adapted and modified from Ansoff , Lars Perner, 2010 http://www.consumerpsychologist.com/cb_Segmentation.html.] Product Strategies Unilever is having four options to position Product in NE market. Brand Extension of Omo (A cheaper version of Omo): It is a very risky option and will lead to high cannibalization. (Solomon et al, 2009 p.290) Re-positioning Minerva: It can be an option but Minerva is a bit costly product ($2.40 WP) for Low income consumers and reducing price and compromising in Quality can damage a brand image and lead to cannibalization. Re-positioning/Brand Extension Campeiro: Camperio is available in the market since 1984 and having just 6% market share. It is currently positioned as a Cheap Low Quality product in NE consumers, so Re-positioning of Campeiro is very time taking and a costly affair. (Solomon et al, 2009 p.228) Introduce a brand from the international portfolio: Without taking risk with existing brands, this can be a potential option for Unilever to introduce a new brand from its international portfolio like Nevex, Ala or Marsella (Latin America). I think It can be Ala (Means WING in Portuguese), only brand that is having a meaningful name. Ala can be positions between Minerva and Campeiro in terms of quality and below Campeiro in terms of price by effective marketing planning. Since NE consumers like Omo very much and currently use detergent powder just for good smell, so the fragrance of the Ala should be same as Omo and if possible Unilever should launch Ala in 2 or 3 different fragrances. Alas Packaging should be Proper, Attractive and cost effective packaging. Ala should be available in the market in a pack of 1kg, 500gm in both cardboard pack and plastic pack (Save detergent from moisture) and 250 gm 100gm in plastic sachets. Plastic sachet cost just 30% of Cardboard pack, so Unilever can offer consumers an additional quantity in plastic bags in same price. Ala will be priced between $1.5 and $1.6 per Kg, so we can easily offer an extra 20% to 25% quantity in plastic bags as Cardboard box cost $0.35 and Plastic Pack $0.10. (Solomon et al, 2009 p. 307 and Kotler, 2009 p.195) Table 6: Product Packing Matrix *Extra Quantity on plastic bag because of low cost of packaging Consumers always get attracted by special offers and additional quantity of product and since Unilever is the pioneer in the market, it will help Unilever to achieve good market share. While launching Ala, we can give some introductory offers like buy 1kg and get 500gm and 2kg and get 1kg free. Pricing Strategies Currently Unilever has priced (Whole Sale) product Omo with 22.45%, Minerva with 11.63% and Campeiro with 9.68% profit. Ala will also be priced with 9.15% (Approx) profit to wholesalers at $1.55 (Approx) that will be the lowest priced detergent powder available in the market as per the data available in case study. Best quality product in the lowest cost will be the USP for this Ala. (Solomon et al, 2009 p.370-374) Table 7: Cost Profit Calculation Matrix [Source: Exhibit 10 : Unilever in Brazil Case Study] Plastic Sachet packing reduces total cost of production by 25%, but NE consumers are having special attachment with boxes and Plastic Sachet Packed Product is assumed as low quality product. So we will introduce Ala in both box and plastic sachet packing where on the latter we give 25% extra quantity. Table 8: Profit difference in Box Sachet Packing *will offer 25% extra quantity Promotion Strategies Currently Unilevers promotion strategy is 70% above-the-line and 30% below-the-line. But for Ala it need to be changed to 40% above-the-line and 60% below-the- line, as low income consumers more attracted and relies on word of mouth publicity, small shop displays, holdings, sample distribution, free gifts etc. But moving towards below-the-line promotion not only Unilever can achieve better results in a low income consumer market but can also save money on promotions. (Solomon et al, 2009 p.37, 398-406) Ala should be promoted with the key messages like best quality, good smell, Care, Pride and self esteem. Ala will Packed in colorful box and sachet with the indication of quality and good fragrance by showing flowers etc. Point of purchase also need to be modified accordingly because several time consumer make decision changes by viewing point of purchase promotion and shopkeepers advice. (Solomon et al, 2009 p.167) Shopkeepers also need to be taken in confidence by providing credit and incentive. Target Audience (Women between 20 -50 years) Budget and Promotion Objective ($0.20/kg and Emotional appeal (Like Care, Pride and Good Smell) Designing Advertisement Media Type (TV, Outdoor Advertising, Public Relations and Sales Promotion by sample distribution, shop displays etc). Evaluation of Promotion Diagram 6: Promotional Strategy development [Adapted and modified from Solomon et al ,(2009), Marketing Real People Real Decesion ,Page 109.] Distribution Strategies The most important thing to make any product successful and to increase revenue, sales and market share is a good distribution system. You cant sell, what isnt there7 (Solomon et al, 2009, Page 494) With the Ala, Unilever is targeting to gain business in a low income consumer market that will be possible only when the product will be available on traditional retail shops (Main point of purchase for Low income consumers). For targeting the high income consumers in the big supermarket Unilevers current distribution system is well sufficient but to target low income consumers Unilever should take help from specialized distributors as well. (Solomon et al, 2009 p.498-500) Unilever need to make some changes in the distribution system by creating the proper mix of Generalist Specialized distributors, so the product will be available at as many as locations possible. New distribution mix can be applied in SE as well because there are also 21% of low income consumers. New distribution system will not only captures more ground area but also reduce the cost of distribution.

Irrepresive Individuals :: essays research papers

The Irrepressible Individual in the Works of Shirley Jackson Throughout her life, Shirley Jackson struggled with a conflict between her dogged individuality and society's requirement that she adhere to its norms and standards. Jackson saw a second level of human nature, an inner identity lurking beneath the one which outwardly conforms with society's expectations. Society's repression of her individuality haunted Jackson in her personal life and expressed itself in her writing through the opposition of two levels of reality, one magical and one mundane, but both equally real. All of the various dichotomies that make up Jackson's double-sided reality can be traced to the hidden human nature, the repressed individual she saw within each of us. From an early age, Jackson did not feel completely comfortable in the society around her. She preferred to sit in her room and write poetry rather than play with the other children in her neighborhood (Oppenheimer 16). Alone in her room, Jackson explored the magical worlds, the alter-egos which her family did not understand. "I will not tolerate having these other worlds called imaginary," she insisted (Oppenheimer 21). Jackson did not satisfy her mother, a wealthy socialite who wanted her daughter to be beautiful and popular and was disturbed by her talk of "other worlds." Relations between Jackson and her mother were tense throughout her life, paralleling the conflict between Jackson and the society in which she found no place for herself. "I will not tolerate having these other worlds called imaginary" -Shirley Jackson Jackson's mother wrote to her once that "you were always a wilful child" (Oppenheimer 14). This careless statement captures Jackson's stubborn assertion of her individuality, as well as her mother's disapproval. Jackson's obesity particularly troubled her mother, who suggestively sent her corsets even after she was married (Oppenheimer 14). Being overweight symbolized Jackson's rebellion against her mother and the standards of fashionable society. Her obesity demonstrates the connection Jackson made between her unique individuality and the "freakish and abnormal, the 'grotesque and arabesque'" (Sullivan n. pag.). The abnormal second reality Jackson contemplated in the seclusion of her room was to her supremely ironic. Jackson rarely ends her stories with a resolution of the plot; instead, a dramatic incident or revelation serves to illustrate the irony she sees in the world. In her most famous short story, "The Lottery," Jackson takes pains to describe a village of hard-working, upstanding Americans.

Individual Happiness and Responsibility in “The Glass Menagerie”

Tennessee Williams’ (1911-1983) play â€Å"The Glass Menagerie† tells the story of a family unable to cope with the harsh reality of impoverishment and how its members resort to the creation of alternate worlds to sustain their interest in life. In the play, Williams explores the conflict between an individual’s right to be happy and his or her responsibility to others through the main protagonist Tom Wingfield who finds himself hindered from doing the things that gives him fulfillment by his position as the family breadwinner. Set in St. Louis in 1937, the play also reveals the tensions arising from failed expectations and broken relationships. Hence, Tom is caught in a perennial argument with his mother while his sister Laura finds it difficult to adapt to the outside world. However, Williams also makes it clear, through Tom’s narrative in the play, that individual happiness is nothing but an illusion and that individuals can derive a greater sense of fulfillment by answering to their more important familial and societal responsibilities. Being part of the larger social structure, individuals cannot escape their overriding responsibility to others. Tom’s main conflict with his mother, Amanda, is therefore representative of the friction that results when an individual puts his own happiness above his own family’s survival. In this case, however, Tom is unable to accept the concept of self-denial and puts leisure at the top of his priorities. He uses his dissatisfaction with his job as a worker at a shoe warehouse as an excuse to amuse himself in movies and drinking sprees. The biggest flaw of his character is therefore revealed when he uses the money intended to pay the electric bill to realize his dreams of adventure. In the same manner, individuals as part of the larger society are expected to be able to contribute to its growth and progress. In the play, Amanda represents the pressure of social expectations on Tom which he finds difficult to fulfill. Consequently, Tom accidentally breaks his sister Laura’s prized collection of glass figurines. Although clearly unintended, the act precludes the shattering of Laura’s world due to her disappointment with her brother’s selfishness when he finally leaves her and her mother without any regard as to how they would survive without his support. In his selfishness, he neglects the feelings not only of his mother but also of his vulnerable sister Laura. Thus, it is in his lack of sense for his family’s situation—and his inability to answer to familial and societal expectations—that Tom wishes to escape from his current world. It is only much later, as he is haunted by Laura’s memory, that he realizes that his actions have an impact not only on his life but on hers as well. His escape and abandonment of familial obligations to pursue â€Å"real-world adventures† therefore makes Tom feel guilty particularly of his sister Laura. In the end, Tom’s narrative is shaped not by the â€Å"real-life adventures† he sought and left his family for but by the uncertainty of Laura’s future after he abandons her and by the knowledge that his escape meant entrapment for her. The Glass Menagerie therefore illustrates that while individuals have the right to pursue their happiness, this must be balanced with a clear sense of responsibility to others and to society as a whole. As the narrative of the main protagonist reveals, individuals cannot truly attain happiness by attempting to escape from responsibilities or by letting their own happiness destroy the happiness of another person. Ultimately, individual fulfillment and contentment is attained from being able to contribute to the happiness and contentment of others in the wider society one is in.

The Dunkin Brands Company - 1837 Words

Introduction The Dunkin’ Brands company was founded in 1950 in Quincy, Massachusetts by William Rosenberg. However, it wasn t always known as the iconic name that we know of today. For the first two years of its life, from 1948-1950, the store was named Open Kettle (M.Seid, 2016). Shortly after opening his first store, Mr. Rosenberg recognized that a majority of his sales were from coffee and donuts, and not his other pastries. In order to sell more donuts and coffee, which made up almost 40% of the business, Mr. Rosenberg decided to change the name to Dunkin’ Donuts which later became incorporated as Dunkin’ Brands. After almost a decade of successful independent business, Dunkin’ Brands decided to offer franchises in 1960. At this†¦show more content†¦As of December 2016, the Dunkin coffee brand has become a clear leader in the coffee market and now controls over 25% of the market share in America and about 14% of the International coffee market. This makes them second to the next biggest brand, Starbucks at 42% (Ycharts.com, 2017). Within this report, the focus will be on the premium coffee offer and its further expansion into the international Australian market. We’ll explore historical financial statements, demographics of the Australian market, it’s coffee consumption and also make projections on the success of expanded operations. Financial Stability Analysis Dunkin’ Brands is well placed in the coffee market and continues to show financial stability and continued positive growth within the past five years. With high margin coffee sales of more than 50% (Dunkin’ Brands, 2017) and a clear presence in the premium coffee market, Dunkin’ Brands has demonstrated their ability to run a successful organization. Over the past five years, between 2012 and 2016, Dunkin’ Brands has experience a growth rate of nearly 26%. Additionally, the 2016 operating income of Dunkin’ Brands was nearly $400 million. Although theses values in them self is not a clear indicator of performance, they do help to illustrate that the company is fairly large with considerable recurring revenue. The company has also shown positive dividend returns to its investors with a year over year return ratio ofShow MoreRelatedDunkin Brand Has Transformed Its It Security Department Of Any Company1324 Words   |  6 PagesThe Security department of any company can be seen as the department that says ‘no’ because they are the ones who usually put the axe down on ideas. As stated in the article about Dunkin Brands, â€Å"Security departments have long been thought of as a place where ideas go to die,† This idea has been planted well into the minds of workers in every division of almost any busine ss. 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