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Question: What is Unilever’s competitive advantage should they decide to enter the lowincome segment in the Northeast of Brazil? How could P&G potentially respond to that move?

19 Oct 2022,11:29 PM

 

1. What is Unilever’s competitive advantage should they decide to enter the lowincome segment in the Northeast of Brazil? How could P&G potentially respond to that move? Please use relevant theoretical concepts discussed in class to justify your answer. (40% of the mark)

2. Since serving the low-income segment is an untapped territory for Unilever in Brazil, they have done extensive research to better understand the low-income consumer in the North-East of Brazil. What type of research design did Unilever implement and what type of data did they collect? (30% of the mark)

3. Unilever was able to manufacture a superior product for the low income consumer at a fraction of the cost. They have branded this product as “ALA”. Please develop a perceptual map that shows ALA in comparison to its competition. Please explain and justify your answer.

Expert answer

 

Unilever's competitive advantage in the low-income segment in the Northeast of Brazil would be its experience in serving this market. The company has a long history of operating in emerging markets and has developed deep insights into the needs and preferences of low-income consumers. This knowledge would allow Unilever to quickly gain share in the Northeast Brazilian market if it decided to enter it.

 

P&G would likely respond to this move by Unilever by intensifying its own efforts to serve the needs of low-income consumers in Brazil. The company has already made significant investments in this market segment and has a strong presence in many of the country's poorest regions. P&G would likely use its existing relationships with retailers and distributors to make it difficult for Unilever to gain a foothold in the market. Additionally, P&G would likely launch marketing campaigns specifically targeting low-income consumers in an effort to maintain its share of this important market segment.

 

Given Unilever's experience in other low-income markets, it is likely that the company would have a competitive advantage if it decided to enter the Northeast of Brazil. This could potentially force P&G to respond in some way, such as by lowering prices or improving its product offerings. However, it is also possible that P&G would simply continue to focus on its core consumers and not be significantly affected by Unilever's entry into this new market. Ultimately, only time will tell how these two companies will fare against each other in the Northeast of Brazil.

Given Unilever's experience in other low-income markets, it is likely that the company would have a competitive advantage if it decided to enter the Northeast of Brazil. This could potentially force P&G to respond in some way, such as by lowering prices or improving its product offerings. However, it is also possible that P&G would simply continue to focus on its core consumers and not be significantly affected by Unilever's entry into this new market. Ultimately, only time will tell how these two companies will fare against each other in the Northeast of Brazil. Given Unilever's experience in other low-income markets, it is likely that the company would have a competitive advantage if it decided to enter the Northeast of Brazil. This could potentially force P&G to respond in some way, such as by lowering prices or improving its product offerings. However, it is also possible that P&G would simply continue to focus on its core consumers and not be significantly affected by Unilever's entry into this new market. Ultimately, only time will tell how these two companies will fare against each other in the Northeast of Brazil.

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