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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)
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