Answer the following questions in 5-6 pages, 12-pt Times New Roman font, double-spaced. You may include Appendices with your calculations and any images you choose to include (e.g., for your marketing mix). Be sure to defend your answers using data from the case.
- Should Unilever target the low-income segment of consumers in the Northeast? To answer this question, examine the short-term financial implications of the decision as well as its long-term strategic implications. What would be the profitability of a new initiative in this lower-margin segment? What is the break-even cannibalization rate(the % of new sales coming from other Unilever brands above which Unilever would start losing money)? Do you think that the actual cannibalization rate will be below or above the break-even cannibalization rate? (2 pages)
- Evaluate Unilever’s current brand portfolio. Is a new brand necessary to serve the low- income segment or could Unilever reposition one of its existing brands or simply launch a brand extension? If you judge that a new brand is necessary, write its positioning statement and choose its name among Unilever’s worldwide brand names.(1-2 pages)
- Design the marketing mix. Choose the price, promotion (objectives, message, and mix), product, product (formulation and packaging), and distribution that will allow Unilever to create— and capture— value for low-income consumers in the Northeast of Brazil. Defend your choices! (2 pages)