Posted at 10.05.2018
Following is the buyer behaviour with regards to the purchase of detergent natural powder in Brazil explained through consumer decision making process.
Evaluation of options
According to Solomon et al (2009) the situation reputation occurs when there's a gap between your desired express and actual talk about of the consumer. From the case inferred that,
People in north-east region of Brazil rinse clothes more often and they see sanitation of clothes is part of their culture. They'll change their detergent powder if they felt that their clothes aren't clean enough.
Most of the individuals own a washing machine in south-east region. People in this region perceive doing laundry as a obligation and discover ways to make process easier. They'll change their detergent powder if it is never to their objectives.
Solomon et al (2009) mentioned that once the situation is accepted consumer can do an interior and exterior check to find possible alternatives that might solve his problem.
Women in the north east region clean their clothes in public areas laundry. Thus giving them the choice of taking advice using their company peer group in choosing the detergent powder, or point of purchase advice from the store owners or using their past experience apart from information through adverts.
On the in contrast, Southeast consumers clean their clothes by itself at home since almost all of them own a washer. Therefore, their information search is fixed to television advertisements and the advice from small store owners.
Solomon et al (2009) explained that once consumers identify the possible solutions they will evaluate the alternatives using their respective convincing traits for the best solution which can solve their actual problem.
The prominent attributes for most the Brazilian consumers are price, ability of the detergent, brand and their previous experience.
According to Solomon et al (2009) while making the ultimate choice on purchasing or utilizing a product consumer is influenced by some factors. You will find three main categories that will influence the buyer decision,
1. Internal influences
2. Situational influences
3. Friendly Influences
From the truth inferred that individuals in north-east region are highly delicate to price than to the brand itself. Whereas in south-east region people are usually more brand mindful and go by their top-of- mind awareness.
The Belk (1975) cited in Sydney et al (2000), has identified five situational variables which can impact the buyer purchase at a particular point in time and place. They are simply Antecedent states, process definition, physical environment, temporal point of view and social surroundings.
While investing in a detergent natural powder, people in north-east region are affected by the antecedent says (Brand desire and price sensitivity) while in south-east region people are affected by physical and public surroundings like display host to detergent natural powder in the store.
Solomon et al (2009) mentioned that consumer evaluative conditions generally range across social school because of their modifications in education, attitudes, values, income and communication style.
Most of the women in north-east region are under same economy class and share a common washing practice of cleansing their clothes in public areas laundry. Therefore, their decision on purchasing detergent is immediately influenced by these sociable groups.
Solomon et al (2009) stated that after purchasing the merchandise consumer will examine how good a decision it was. The result of this evaluation is consumer satisfaction or dissatisfaction on the merchandise. Stand1 shows the list of attributes used by Brazilian consumers to evaluate detergent natural powder.
Ability to clean and whiten clothes.
Smell of a detergent powder.
Ability to eliminate stains.
Easy product packaging.
Ability to completely clean and whiten clothes with less effort.
Unilever has began its procedures in 1929 and launched its most successful brand OMO in 1957.
Unilever is the first choice in detergent market of Brazil with an 81% market talk about achieved with brands like OMO (Favourite brand of Brazil), Minerva (brand sold as detergent and laundry cleaning soap) and Campeiro (cheapest brand of Unilever).
Unilever wished to increase sales by implementing penetration strategy. For the same, they launched their preferred brand OMO with four extensions viz. OMO Multicao, OMO Progress, OMO Cores and OMO Maquina. Each brand acquired its unique characteristics to focus on the diversified consumers.
Procter and Gamble started out its procedures in 1988 and purchased a Brazilian company Bombril in 1996 which has brands like Quanto, Odd Fases and Pop. Along with his formidable R&D migrated Quanto towards Ace and Odd Fases towards Striking, Ace and Bold are P&G's popular global brands.
Procter and Gamble is second place of Brazilian detergent market by keeping 15% of market talk about.
Procter and Gamble strategy is to enter the marketplace by acquiring the neighborhood companies and their circulation channels. This felt an inexpensive strategy than developing own distribution programs.
A local brand Invicto is holding a 5% of market share in Brazilian detergent market.
Invicto is the least expensive brand in north-east region of Brazil.
Invicto follows a concentrated marketing strategy through mainly focusing on the low-income consumers.
High Brand Identification: Unilever brands are highly recognised in the north east area of the Brazil.
Market Penetration: Raised percentage of consumers in north east region of Brazil purchased at least one unit of OMO or MINERVA which are the brands of unilever.
Top of Head Awareness: we have best results for the top-of head recognition for unilever brands in north east part of Brazil.
Unilever is a worldwide accepted company with a stock portfolio of 1600 brands which include 45 key detergent brands.
As of 1996 Unilever is a innovator of the detergent market sector in Brazil by having 81% market share.
Pioneer of consumer goods industry in Brazil.
The price of OMO is perceived as high than all the detergents available in north east part of Brazil.
The cheaper brand of unilever "Camperio" is regarded as a low-quality brand 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 major circulation problem in distributing his brands to the roughly 75, 000 small outlets disperse over north east region of Brazil, which will be the key shopping areas for low-income consumers.
Federal and local government authorities providing tax incentives to companies investing in the north east region of Brazil.
The detergent market in north east region of Brazil keeps growing with an total annual rate of 17%.
Women in north east region clean clothes more frequently plus they see cleanliness of clothes is part of the culture.
Strong economic restoration in 1995-1996 causes raise the purchasing ability of low income consumers by 27%.
Standardization of strategies is not possible with the socio-culture differences among the two region of Brazil.
Threat from local brands is higher which can be cheaper than the Unilever brands.
There is a higher competition from porter & gamble with good worldwide marketing knowledge.
In a report by Sally Dibb and Lyndon Simkin (1991) explained that different customers have different needs and desires. It isn't possible to fulfill all customers with a single product or service. Companies are shifting from mass marketing to focus on marketing strategy where the focus will be on a specific band of consumers. This technique of dividing market into different groupings is called market segmentation. The process of segmenting the marketplace contains three main elements.
The market can be segmented in many ways. Stand 2 shows the various options for marketers to identify different segments on the market.
Age, Intimacy, family, race, religious beliefs.
Income, occupation, education, social class.
Purchase behaviour, usage behaviour, attitude to product, lifestyle and personality
In north-east region the per capita income was only around 2, 250$. 40% of folks in north-east region are illiterate. The lifestyle, culture and religious beliefs of people in this region were influenced by African culture.
In south-east region the per capita income was around 6, 600$ (more than double of north-east region). Only 15% of folks in south-east region are illiterate. Most of the south-east part was affected by Western culture
73% of ladies in north-east region think that bleach is essential to remove spots and use detergent natural powder primarily to make the clothes smell good. While in south-east region only 18% of women think bleach is necessary to remove stains.
Frequency of cleaning 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 a lot of women uses washer for cleaning clothes, for the coffee lover cleanliness of clothes is less very important to self-esteem and interpersonal status.
In a study by Sally Dibb and Lyndon Simkin (1991) mentioned that segmentation will help identify the several consumer sections but slapdash implementation will leads to failing. The segmentation process must fulfill the following standards. Segments must be identifiable, executable, secure, marketable and controllable.
In this circumstance Unilever should portion the Brazil detergent natural powder market directly into north-east region and south-east region.
Once identified different market sections, managers has to make decisions about how many and which customer categories need to target. In a report by Sally Dibb and Lyndon Simkin (1991) mentioned that the decisions would be like,
"Focusing on a single portion with one product/retail brand "
"Offering one product/retail brand to a number of sections"
"Targeting some other product/retail brand at each of lots of sections"
Because of socio-cultural dissimilarities among the two parts of Brazil the standardization or undifferentiated targeting strategy will not work. The customized and differentiated online marketing strategy will give the best results.
Positioning is not about doing something to the merchandise it is what's created in the brains of the targeted consumers. In a study by Sally Dibb and Lyndon Simkin (1991) explained that the task here's to translate the needs and needs of the targeted consumers into a tangible mix of product, price, promotion, distribution and service levels with maximum appeal.
Most of the folks in this area are illiterate and low income people.
Most of the individuals in this region believe sanitation of clothes is part of the culture.
To satisfy these needs of the consumers and achieve higher market show in this area unilever management has to position their product as good deal with high quality.
Most of people in this area use washer to clean their clothes, cleanliness of clothes are less important for self-esteem and public status. People in this area aren't price sensitive towards detergent powder so long as they have good quality.
To satisfy these needs of the consumers and also to achieve higher market share in this area unilever management must position their product with high quality.
BCG matrix helps marketers to get the potential brands in the market.
BCG matrix for Unilever detergent brands in north-east region of Brazil.
Stars: Question Marks (??)
Cash Cows: Minerva Canines: Brilhante
Market Expansion Rate
Relative Market Share
Diagram Adopted from BCG Matrix (Solomon, fifth release)
Stars: OMO has a dominant market show in north-east region of Brazil. Because OMO has a potential progress, managers have to create ways of increase market show in the competitive environment.
Cash Cows: Minerva which is the sole brand to sold as detergent natural powder and laundry soap it has an acceptable market talk about in north-east region.
Question marks (??): Camperio has a low market share in north-east region. People understand Camperio as a low-quality product. To raise the market talk about Unilever has to reposition his Camperio brand in north-east region.
Dogs: Brilhante has a zero market talk about in north-east region. It's better for Unilever to stop the marketing of the brand in north-east region.
BCG matrix shows us on which brand Unilever must spend to increase its market talk about in north-east region. But how and what actually we have to do to increase the market share, marketing mix can help firm to perform its targets by using product, price, advertising and place decisions.
Camperio is regarded as a low-quality detergent which is the cheapest brands of Unilever. Repositioning of Camperio with new presentation and with new advertising subject matter like "Improved Quality with low-price" in this area will help to improve the marketing show of Unilever.
Repositioning of existing brand would be easily recognized by the targeted consumers than releasing the existing brand. Repositioning of existing brand would not lead to any incremental marketing costs.
In this region the majority of individuals using OMO and the results exhibiting that individuals are well gratify with the quality of the product. Even the low-income people like Maria would wish to buy OMO, only for their tight budget they go for cheaper brands.
Solution to the aforementioned problem is retailing the detergent natural powder through small sachets. Price of the merchandise can reduce due to the small quantity that may not cannibalise the existing product.
All the low-income consumers will highly gratify when they get their high quality product in good deal. The thought of providing the detergent powder in small sachet will eventually help unilever to increase their market show.
Packaging should be simple and distinctive and really should be based on culture this is the color selection and the graphics.
In south-east region OMO and Minerva is going well as individuals in this region aren't price sensitive.
Use Pricing Technique to protect its strong rivals and reposition Camperio brand with an increase of capabilities than that of competition with less price to retain and gain the marketplace share.
The advertising communication should vary for north-east region and south-east region since there is a ethnic difference and variant in literacy rate within the two regions.
As Brazilians are more television watchers Unilever is going with 70% of mass media advertising with more emphasis on product price and availability in its different packaging sizes.
In south-east region advertising subject matter should focus more on product benefits.
In north-east region they should go for extensive media advertising emphasizing more on product price and availability of packaging sizes to wipe out the negative understanding among the consumers.
In north-east region the majority of the individuals are illiterate they often times will depend on the advice of any retailer while investing in a product. Marketers of unilever may use a push strategy in cases like this to promote their product, providing some incentives on number of sales to distributors and merchants.
Extensive distribution is essential in north-east region by causing the merchandise available in small stores.
Unilever management should provide some job to the women in north-east region as sales young ladies to market their products that may ultimately help increase the word of mouth among people and sustainability of marketing.
In south-east region almost all of the folks decision on detergent natural powder resembles as habitual decision making, in this area point-of-purchase (ex: showing of smokes near cash counter-top) display will increase the sales.