Unilever.docx - 1 Yes/No(briefly why Yes since Unilever...

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1 Yes/No? (briefly, why) Yes since Unilever already has 81% of the market and for company growth there are not similarly profitable avenues for expansion. Expansion in this way is also essential in avoiding competitors gaining an advantage in the market. Skills & structure to succeed? The skills and capital for production and promotion are already in place and proven successes however distribution and packaging of the new product are experimental procedures when the market is thoroughly observed. GAINS -This is an opportunity for expansion to a market with growing purchasing power and eliminating competition by way of P&G - Expertise infiltrating a low income segment applicable to other global markets - Becoming an source of knowledge of infiltrating markets in order to attract top talent RISKS -Cannibalizing existing and successful products - Increasing price competition in the high margin sales category - Loss of investor confidence by diverting away from current investment/production strategies - Losing top talent unwilling to work for brands with a reputation for pursuing low income markets - Profitable cost structure due to distribution channels 2 Positioning statement (nice sentence showing how Uniliver/brand creates value to this segment) Unilever will create a product that appeals to the sense of community and the societal values placed on cleanliness exemplified in the low income NE Brazilian market to take advantage of increasing purchase power. A new brand? Unilever needs a distinct brand to differentiate itself from its higher cost brands as well as other low cost competitive brands in the market. Unilever is appealing to a very specific need driven by a cultural value. To gain
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