Unilever Brazil Essay Example for Free

Unilever Brazil Essay Executive Summary Unilever is assessing whether to enter the low-income NE market. Our analysis shows that there is a profitable opportunity to offer detergent powder to low-income customers living in Northeast Brazil and capture market share in a high-margin, high-growth market. We recommend that the firm keeps the existing brands but deploy a horizontal extension of the Campeiro brand adding better scent / softness and utilizing specialty distribution network, thereby marginalizing Invicto, an inferior but better-known competitor. Situation Overview NE Brazil has long lagged behind the rest of the country in terms of technology and income. However, economic reforms instituted by Finance Minister Cardoso has seen the purchasing power of the poorest Brazilians increase dramatically. These reforms, combined with tax incentives for investment in the NE has led to a 17% annual growth in detergent powder. In NE Brazil, detergent is still primarily used to supplement soap in order to make the clothes whiter and smell better. Campeiro, Unilever’s current budget offering detergent powder, competes primarily with Invicto. These products are offered at the same price ($1.7/kg) and have roughly the same market penetration (6% for Campeiro vs. 5% for Invicto) – even as consumers view Campeiro as a superior brand. The problem for Unilever is Campeiro’s brand penetration, which lags approximately 15% behind Invicto. This is because of the decentralized purchasing habits of women in NE Brazil. This situation is an opportunity because if Unilever improves market penetration, it will drive sales in this high-margin, high-growth segment of the laundry industry. By contrast, the soap industry has slower growth (6%) and lower barrier to entry, which makes it tough to sustain high margin. In addition, the market is very fragmented, with â€Å"other† producers supplying 64% of the market, making it tough to systematically beat competitors and capture market share. Therefore, at this time we do not think it makes sense to enter this market. Action Overview Strategy We will target the following market: †¢Customer: Low-income consumers in NE Brazil †¢Company: Unilever †¢Collaborators: Special store owners as low-income consumers do not shop in wholesale and get financing and advice from specialty owners †¢Competitor: Invicto †¢Context: Increasing purchasing power in NE and role of powder as fragrance / softening agents Our value proposition to this segment will be: An affordable detergent powder with a â€Å"special touch.† We will deploy the strategy as follows: Tactics †¢Products: â€Å"New and improved† Campeiro with enhanced smell and softness oSmell / softness is ranked second only to whiteness in perceived importance by consumers, but going after whiteness has potential to cannibalize OMO (see Action Rationale section for more details) oThe added fragrance should be at a level just enough to set Campeiro apart from Invicto, but far enough from Minerva to prevent cannibalization †¢Brand: Campeiro †¢Price: Same price – whole sale of 1.7 / kg †¢Distribution: Specialized distributors that can increase awareness of target audience at a lower variable cost than generalist wholesaler; specialized stores are significant influencers of target customer’s behaviors †¢Incentives: Launch new Campeiro via specialized distribution as larger campaign to influence small shop owners; give away free samples to specialized store to promote awareness to small shops; use more point-of-purchase marketing as small shop owners are more susceptible to such tactics †¢Communication: â€Å"New and Improved Campeiro† or â€Å"add something special to your clothes at affordable price† Action Rationale The proposed strategy is best suited for Unilever’s goal of finding a profitable entry into low-income NE market because: †¢Profit growth from increasing market share in Campeiro is significantly higher than Minerva soap oMargins for laundry detergent is superior to soap ($2520 per ton vs. $1250 per ton) oPowder market is experiencing a higher growth (17%) compared to that of soap (6%) o Increase New Campeiro market share by 6% would have and additional benefit of 1.38MM in year 1 and 2.21 MM in year 3, compared to 1.19 and 1.42 if we increase Minerva soap market share by 5% (See exhibit 2) ï‚ §Increasing market share in soap is already a big challenge given the fragmented market †¢Campeiro has a strong brand name – by giving it a new feature such as smell, it can separate itself from the generic Invicto and other smaller producers of â€Å"no frills† powders †¢RD cost of formulating should be low as Unilever already has a fragrance-based brand Minerva †¢Cost of matching fragrance / softness is too prohibitive for ASA and other small, regional competitors †¢Cannibalization is optimized cannibalization % is better if Campeiro targets smell / softness instead of whiteness (see Exhibit 1) †¢Campeiro is a better extension candidate than Minerva as Campeiro has a better break-even cannibalization rate (See Exhibit 1) †¢Significant barriers to entry also make it difficult for additional firms to compete at this price point †¢Using specialty store distribution makes sense as low-income NE residents tend to shop at smaller supermarkets †¢Improvement to Unilever brand image as being at the forefront of helping rural Brazil Potential Drawbacks †¢There is still risk that a fragrance / softness based brand extension will cannibalize Minerva beyond the threshold calculated, thereby decreasing profit †¢Cost of re-formulating Campeiro may be higher than expected †¢Unilever already owns a 75% market share; therefore, there is a finite additional share for Campeiro to absorb †¢Unilever premium brand equity may suffer as Unilever makes investment in lower-end products †¢Most low-income household do not own washing machines, so it would be hard to absorb additional market share currently owned by competitors’ soap brands with a powder product †¢There is always the risk that ever-changing socioeconomic and political factors will defer target segment from purchasing powder Conclusion Based on the analysis above, our team believes that the appropriate strategy to grow in the low-income NE market would be to extend the existing Campeiro brand while keeping the same price point. Distribution through specialty stores instead of wholesale will best position Unilever to grow in this high-margin, high-growth market.

Caffeine :: essays research papers

Caffeine As can be seen above, caffeine consists of two carbon/nitrogen rings with oxygen and methyl groups as substituents. The fused rings are similar to those in adenine only the substituents differ. Caffeine is found in coffee, tea, and many soft drinks. There is also some amount of caffeine in chocolate, as well as a closely related stimulant, theobromine. The caffeine in sodas is generally produced from the cola berries, and is either a by-product of the cola flavoring or is added for flavor and stimulant effect. There are four ways in which caffeine stimulates the nervous system. Of these, one is of primary improtance. Another has some level of importance, and the other two only occur at unrealistically high levels of caffeine in the body. The first of these methods, and the most important, is blocking adenosine receptors. As caffeine has a similar structure to the adenosine group, but also has more heavily electrophilic and nucleophilic functional groups than adenosine as, for instanc e, seen in cyclic AMP. This means that caffeine will fit adenosine receptors as well as adenosine itself will. Thus, cyclic AMP remains active, rather than being broken down. Second among the effects of caffeine is phosphodiesterase inhibition. The phosphodiesterase class of enzymes includes a number of enzymes responsible for breaking down cyclic AMP, thus depriving the body of an energy supply. Caffeine fools phosphodiesterase into attacking it instead, which inhibits the breakdown of cyclic AMP. However, the concentration of caffeine required for this effect to become significant is sufficiently high that the adenosine blocking remains the dominant factor. The other two laboratory effects of caffeine have been judged insignificant in actual biochemical situations. Caffeine can increase the speed of rapid information processing by 10% 1, and a cup of regular (caffeine-containing) coffee after lunch helps to counteract the normal ‘post-lunch dip’ in ability to sustain concentration, aiding alertness 2. Research has also shown that a couple of cups of coffee help to improve alertness and concentration during night shift hours 3.

Evaluation of the Most Important Decade in American History

This paper is going to be a step by step evaluation of arguably the most important decade in American History. The time period covered in this paper is 1789-1801. These are the years in which the Federalists had the most influence in the new government. They accomplished an amazing amount in these 12 years. The Federalist Party was one of the first political organizations in the United States. The members of this party supported a strong central government, a large peacetime army and navy, and a stable financial system. Although the first president, George Washington, was not a Federalist, his Secretary of the Treasury, Alexander Hamilton, was the developer and leader of the Federalist party. Hamilton believed in a loose interpretation of the Constitution so that the central government could become more powerful. Also Hamilton, along with the other party members, believed that commerce and manufacturing were more important than agriculture. During the first two years of the new federal government the biggest problem was that of raising money. At first the Congress adopted a small tariff on imports. This was a start but not nearly enough. The government needed this money to maintain its own existence and to be able to pay of the debt. The existence of the government was a necessity, but there was a lot of discussion as to whether the debt should be payed off. The mare magnitude of the debt seemed to compel some measure of avoidance. In 1789, the national debt totaled more than $50 million, $11,700,000 of which was owed to France and Spain and the private bankers of Netherlands, while $40 million was in the form of securities held by citizens of the United States. The interests owed to the bankers were being payed off by loans from the bankers themselves. The government didn†t even have enough money to pay the Barbary corsairs for release of captive sailors! When Congress couldn†t come up with a solution that was satisfactory, they turned to Alexander Hamilton with the dilemma. He soon proceeded to draw up a full report entitled â€Å"Report on Public Credit.† In this paper Hamilton proceeded to show that the only way for a new government to establish credit was to deal honestly with its creditors -for in many cases they would be the people to whom the government must look to for future loans. This policy received strong opposition from Madison and other soon to become Republicans (second political party in America). The federalists held strongly, but only with the passing of the Assumption Bill (movement of capital more toward the South) where they able to pass the bill. This achievement was significant, but lacked two things which would be necessary to carry it out. For one it lacked a circulating medium, and two it lacked a central bank. Hamilton then proposed a remedy. He wanted to establish a corporation that was to be called the Bank of the United States. This bank was to serve as the principle depository for government funds. It was also to serve as the issuer of bank notes. This was a loose interpretation of the constitution. Again Madison led the opposition to no avail. But Hamilton held strongly to his belief that even the most uncompromising opponent of the bank â€Å"would, in one month†s experience as head of that department of the treasury, be compelled to acknowledge that it is an absolutely indispensable engine in the management of the finances, and would quickly become a convert to its perfect constitutionality.† This plan favored the central government. The bank made little banks, who couldn†t compete, go out of business. The rich ended up being able to buy a part in the bank and so got richer, and the poor and middle class didn†t get the benefits. The central government was becoming self sufficient, and less dependent on the states. What Hamilton did is make the nation stronger in the eyes of other nations. This is a great accomplishment. If the Federalists (they didn†t call themselves that until 1792) weren†t in power the nation would have been weaker and more decentralized. There were three views on the French Revolution and the French-British war in 1793. Jefferson†s followers favored France. They wanted to abide by the treaty America signed with France in 1788. They thought it was the right thing to do. Hamilton†s followers favored Great Britain. They wanted to develop better relations with great Britain for economic reasons. They sought to break all the relations with the new French government and to ally America with England. The third view was the one taken by George Washington. He realized that a war with England on the side of the French would be suicidal, but at the same time he didn†t want America to be known as the nation that breaks treaties. George Washington proclaimed that America will be neutral. He forbade any American citizen from helping any warring nation. Without the Federalists there to oppose a war with England America might have been wiped out. The Federalists were looking out for the best interest of the country at the expense of another nation. George Washington who didn†t belong to any party decided not to follow either view. During John Adams† tenure as president the Federalists passed several laws which made them unpopular in the eyes of the American public. These laws made the people upset enough not to reelect most of the Federalists that were in Congress. This was the last term in which the federalists were influential. It is important to state these laws and why they passed them. The Federalists had become more favorable toward France and the Republicans started despising France, especially after the insulting X Y Z affair. Adams was favoring France as he tried to keep the nation out of war with France. He secured peace once Napoleon came into power in 1799. The resentment of the population toward France jeopardized this treaty. The Federalist majority in Congress decided to pass the Alien and sedition acts in order to weaken the supporters of war with France (mainly the Republicans). Adams himself was against these laws. These measures were hated. Some of the extreme measures taken to combat them were the Kentucky and Virginia resolutions. These measures tried to say that the laws were unconstitutional. When the time of the next election came the people of the nation had a choice of either maintaining the ways of the Federalists or vote for Jefferson and the republicans. The people, who were mostly farmers at the time, saw the threat to the common man†s rights and so they voted Jefferson and other Republicans into office. This was probably the only thing that the federalist ever really messed up. They made the country strong but then went too far and people took them out of the national picture. The federalist party would never see such strong days again. Its power dwindled down slowly until the party vanished from the national picture in 1816. Although no longer influential in Congress the federalist remained in control in several states. Some states had federalists in office as far down as 1820. This wasn†t though what kept the federalist ideals in America. John Marshall, chief justice of supreme court, began his tenure in 1801. Justice Marshall was a steadfast Federalist. He maintained the Federalist ways long after the party seized to exist. Decision after decision chief Marshall declared the central government supreme to the state. He stretched the constitution far in seeing that the states yield rights to the federal government. He maintained this for 34 years, shaping the loose collection of states into a solid National Union. Another way that the Federalist ideals were maintained comes from their opponents. Upon gaining control of the Congress and Presidency the Democratic-Republicans maintained most of the programs set up by the Federalists. The alien and sedition laws were repealed and everyone arrested under them was let go, but other than that the central government maintained the control gained under the federalists, relinquishing little. The Republicans even strengthened the federal government on occasion. By buying Louisiana Jefferson extended the abilities of the central government. The years under George Washington and John Adams constitute a record of accomplishments not met since. The Federalists followed Hamilton†s counsel to ‘think continentally.† A federal judiciary was established, the taxing power was used, the national debt was handled, American credit was fixed, and territory was cleared of the British and Spanish populations. In foreign affairs America gained respect. Neutrality was maintained, at the price of the French alliance and concessions with Britain. The objective of the foreign policy was survival. The objective was met. The Federalist did a great job starting up the country. After all, many of the leaders including John Adams and George Washington thought that the Union would not last past their lifetimes. The â€Å"experiment entrusted to the hands of the American people†, as said President Washington, turned out very well. Just look at the power America has today.

Theme Of Irony In The Tempest - 725 Words

Prosperos Cloak - a source of his enchanting powers and an influence over supernatural elements. Prospero uses the Magic Cloak to regain his Dukedom and to punish the evil. The Tempest uses vivid imagery to expand the audiences imagination throughout the play. The storm is the most lucid imagery in the play as it symbolizes Prosperos anger and suffering. Prospero is powerful enough to whip up a storm that causes a shipwreck to teach his enemies a lesson. Prospero manipulates everyone in The Tempest just like Shakespeare manipulates his characters in his writing! Miranda comments on the history of their past by using this metaphor, in which she compares Prosperos tale as a remedy to cure deafness. He compares his library to his†¦show more content†¦Shakespear beautifully uses allusions in his novel, The Tempest, to impart information to his audience. Ariel, the spirit, is Prosperos eyes and ears and is bound to serve his master who saves him from imprisonment. They both share a warm and loving relationship. Ariel is Prosperos loyal retainer as he obeys and performs all tasks given to him by Prospero. When Prospero learns that Ariel would like liberty from his servitude, he gives him a task to complete and promises to free him in two days. Ariel willingly completes the task and proves his loyalty to Prospero. Miranda is portrayed as the White Goddess. Her father manipulates her as she is innocent and kind. Mirandas goal is to achieve happiness and freedom by marrying Ferdinand, whom she instantly falls in love with. She portrays optimistic characteristics as she sees good in everyone and everything. Prosperos journey to the island is a gateway to a whole new world in which he grows as a person and a leader. His journey begins when his jealous brother betrays him by seizing his power and property. Prospero learns magic from his books which make him powerful as he has a talent which is rare. He uses magic to manipulate the creatures on the island and ultimately becomes the ruler of the island after defeating Sycorax. On the other hand, Caliban grumbles and complains about his servitude and not being able to become the rightful ruler ofShow MoreRelatedEssay On Colonialism In The Tempest1624 Words   |  7 Pagesfinal play, The Tempest, holds phenomenal value. In his writing, Shakespeare often included contemporary issues of his time. In Hamlet, for example, the idea of a King dying was an important notion. This was drawn from the belief that a King got his authority from God, so if he died nature would become unbalanced and disturbed. In The Tempest, he included his supportive views of colonialism into his writing. 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