1. Colgate-Palmolive Marketing Proposal for Fabuloso Brand Air Fresheners
The Fabuloso brand of multi-use cleaners has been a staple in Mexico and other Latin countries
for years. Moreover, the brand is one of the most popular multi-purpose cleaners that Colgate-
Palmolive offers. The magnificent signature scents, particularly their marquee lavender has
provided Fabuloso with a cache, a definitive competitive advantage over similar type cleaners in
their class.
Consumers across national boundaries have taken to this ubiquitous brand in a multitude of
ways: mixing with water to clean floors; using full strength to perform general cleaning in
bathrooms and kitchen areas; mixing a tablespoon or so with dishwashing liquid to make dishes
shine! Also, adding a capful to the laundry during the wash cycle – clothes come out smelling
intoxicatingly of lavender. And this: consumers have been so eager to be enveloped by the
scents associated with Fabuloso, they've taken to heating it on the stove for a scent that
permeates throughout the entire house. Or leaving small bowls of our Fabuloso in various rooms
– the scent has proven more effective than candles.
Research indicates that initial observations and now verifiable studies beyond the anecdotal show
this unique usage of Fabuloso exclusively for its great smelling, wonderful scent is rooted and
has become a strong practice in Latin countries, particularly with those of Portuguese descent –
making the Brazilian consumer market prime for a Fabuloso brand evolution. Customers will be
drawn to a brand they're familiar with. The stage therefore, has been set for an introduction that
should be seen as a logical progression of what has become a staple, if not a phenomenon, in
familial home culture. With a progressive economy that makes Brazil the fifth largest, and sixth

2. when it comes to purchasing power parity, and demonstrated customer loyalty for a product that
not only cleans, but exudes a scent unlike any other on the market, this represents an opportunity
for Fabuloso solid stand alone air fresheners, plug ins, along with automatic spray fresheners to
establish our well earned cache when it comes to expanding the brand recognition in an
immediate transferable way.
While the three aforementioned products should serve as the more readily adaptable entries into
the market, Fabuloso brand candles, carpet and room odor removers, and fabric and air sprays
would in time enhance and solidify our efforts to secure a healthy segment of consumers already
familiar with the association of Fabuloso and great scent in the same way they're acquainted with
say, Clorox and now disinfectant wipes.
While firmly established as a multi-use cleaner, Fabuloso will compete with Glade, Airwick, and
Febreze for Brazilian consumer market share. Although the cleaner and scent lines are distinct,
Fabuloso must take care not to allow its efforts in brand expansion to be seen as a dilution of its
core brand identity.
Unlike all other countries in North or South America, Brazil is the only Portuguese speaking
nation. This makes the language an important part of their national identity, and gives it a
nation-wide culture quite different from its Spanish speaking neighboring consumer bases.
Colgate-Palmolive must appreciate the unique culture challenges posed not only with the core
Portuguese influence in Brazil's society, but of the influences of African, indigenous, and non-
European cultures and traditions. Also, the way class and race have a way of merging exclusive
to the Brazilian society is worthy of appropriate consideration when devising Fabuloso
marketing campaigns regionally throughout the country. Successfully translating the brand's

3. introduction of this new line of household products with long lasting scent as the focal point, so
that it meshes unobtrusively with the overall Brazilian ethos is too essential to be accorded any
leeway or chance of miscalculation.
With a full detailed cultural and economic analysis, coupled with a market audit and competitive
analysis, we will produce a preliminary market plan charting the path to Fabuloso's successful
brand expansion and Colgate-Palmolive's indelible presence in Brazil.
Market Audit and Competitive Market Analysis
The decision to introduce the Fabuloso brand into the household air scent market is based
in no small part on the rapid emergence of the Brazilian middle class, and the accompanying
“new consumers” of that class. It is bolstered by significant observational data that denotes the
strides of the overall national economy when viewed alongside world rankings, the burgeoning
Brazilian middle class consumer purchase capacities, the anticipated continued growth of the
household products market, and the associated increased opportunities of media – traditional and
new – to engage and stimulate potential Fabuloso customers.
The marginal value of Fabuloso Air Scents is in the already established cache of the
Fabuloso brand. As previously noted in the proposal, the aromas, particularly our signature
lavender, are a staple in the Brazilian market, as well as others. Customers have already
established a habit of pouring Fabuloso in bowls to infuse rooms with its scent, or heating it on
stovetops to permeate throughout the entire home.
Brazil is experiencing an expanding market in consumer household products in general,
and air freshener products in particular. The Brazilian household products market had total
revenues of $10.8 billion in 2011, representing a compound annual growth rate (CAGR) of 8.3%

4. between 2007 and 2011. While the performance of the market is forecast to decelerate slightly,
with an anticipated CAGR of 7.6% for the five-year period 2011 - 2016, it is still expected to
drive the market to a value of $15.5 billion by the end of 2016. This sets up the Brazilian market
as a prime candidate for Fabuloso Air Scents diffusion, with its clearly demonstrated and
forecasted purchasing patterns towards freshener products.
There appears to be negligible issues regarding the trialability prospects of the Fabuloso
Air Scents. As stated, it is already an established social practice of co-opting the Fabuloso
cleaner scent to aromatize and freshen rooms, or the entire home. In that sense, the consumer
has brokered a product innovation just waiting to be recognized. The company will facilitate
product diffusion with free samples attached to the Fabuloso All-Purpose Cleaner in the
consumer intensive urban markets of the Southeast, South, and Northeast geographical regions of
Brazil. This will be accompanied with advertising and other promotional campaigns.
Communicating to Brazilian consumers that they have wanted Fabuloso in a scent form –
and that Fabuloso has listened and responded with our line of Fabuloso Air Scents – in the form
of air fresheners, scented oils, and disinfectant wipes, will serve as a clear illustration of the
product benefits. By extension, this also succeeds in alleviating factors of complexity – the
company is acceding to customer demand for Fabuloso Air Scents – which is a natural segue, at
its core, from a product – Fabuloso All-Purpose Cleaner, which consumers have been extremely
comfortable with.
Of the five geographic regions in Brazil, the Southeast which comprises Rio de Janeiro
and Sao Paulo is the most affluent economically, followed by the South region, and the
Northeast. Brasilia, the capital, is in the Central-West region, the fourth ranked economically.

5. The North region is home to the Amazon rainforests, the largest, most biologically diverse area
of land on earth. It is also the most sparsely populated region of Brazil, and fifth economically.
Most of the North population lives in the cities, as is the case throughout the country.
Fabuloso’s marketing campaigns will be concentrated accordingly, with most of the emphasis
on the eastern regions, with their middle class consumer driven populations, followed by the
Central-West.
The primary carriers of freight and passenger traffic are the roads and highways of Brazil.
The highways are considered to be generally in very good to good condition, and are thus a very
reliable means of commercial transport. The emphasis on highway expansion over the decades
has led to a decrease in railway lines, particularly pertaining to freight transport. Metro systems
in the large urban areas, such as Sao Paulo, Rio de Janeiro, Recife, and Brasilia are responsible
for public commutes, somewhat easing traffic congestion. Brazil is second only to the United
States in the number of airports, with the Sao Paulo-Guarulhos International Airport, near São
Paulo, the largest and busiest, handling the vast majority of popular and commercial traffic of the
country and connecting the city with virtually all major cities across the world.
Compiled data distinguishes a “C” class consumer, otherwise referred to as a “new
consumer”. It is the class above the “D” and “E” designation, which is indicative of poor
without any measureable disposable income. These level “C” newly affluent middle class
consumers have buying behavior that is different from those more established in the middle
class. They are more sensitive to price and have not yet formed set in buying habits related to
specific brands. These consumers are prime targets for those reasons and for the long range
prospects of subsequent retention.

6. Among the most noteworthy trends of Brazilian consumers overall is the drive towards
increasing credit card use. Half of the consumer population do not have credit cards. Similarly,
just under 50% of Brazilians do not maintain bank accounts. Banks and retail chains are eagerly
addressing this opportunity going forward.
Brazil has seen an increase in retail consolidation, allowing for increased economies of
scale, better positioning in fending off foreign competition, and more secure leadership positions
within their respective segments. This is evidenced by merger and acquisition advances by
retailers such as Drogaria São Paulo and Pão de Açúcar. Overall, store sizes are shrinking,
catering to the aging Brazilian population. There is still a strong segment of retail occupied by
convenience stores, but this too is expected to follow the consolidation trend. Retail stores of all
types must place an emphasis on being eco-friendly, as recent studies have shown Brazilian
consumers even more environmentally conscious than Europeans about how products are
manufactured and disposed.
Brazil and its advertising agencies have long been recognized as leaders when it comes to
creative advertising campaigns – that appeal, particularly, to its consumers’ tastes and
sensibilities. Conventional broadcast media, billboards (there is a drive to spread Sao Paulo’s
ban on billboards), and print are utilized with great success. The advent of e-commerce and
social media has had obvious impact on the way companies sell to and communicate with the
Brazilian market. Promotional campaigns relevant to Fabuloso Air Scents’ efforts would be
store consultants to point out and explain the virtues of the product, free samples, coupons, and
flash promotions and discounts at the registers.

7. Fabuloso Air Scents (a Colgate-Palmolive/U.S.brand) will be competing primarily with
Glade (SC Johnson/U.S.), Febreze (Proctor & Gamble/U.S.), Air Wick (Reckitt Benckiser/U.K.),
and No Air (Bombril/Brazil). Glade and Air Wick offer air fresheners and scented oils, as will
Fabuloso Air Scents. Febreze and No Air currently offer only air fresheners. Fabuloso Air
Scents will be the only brand from these leaders to offer disinfectant wipes.
The aforementioned leaders’ prices, promotion, and advertising are all well placed within any
standard deviation, and present no untoward challenges or obstacles. The distribution channel
attendant to Bombril’s No Air is unique in as much as its locality. Fabuloso’s channels in Brazil
though, are firmly established, and the piggy-backing off of its Air Scents line suggests no
disruption therein.
It is worth noting that in 2011, SC Johnson and Reckitt Benckiser garnered a combined 84% of
market share in the air care market. The Brazilian household products market is expected to
reach sales of $15.5 billion by the end of 2016, representing a CAGR of 7.6% for the five year
period 2011-2016. The CAGR of the Brazilian air care market in particular is forecast to
increase by 6% during the period.
It would be premature at this point to presume definitive sales numbers for the planning year.
Though, with Fabuloso’s existing well entrenched brand presence and established customer
brokered applications of its scent qualities, Fabuloso Air Scents should reasonably anticipate a
foothold onto SC Johnson’s and Reckitt Benckiser’s dominant market share to the extent of 5 to
10% in the immediate planning year.
The Brazilian Institute of Geography and Statistics (IBGE), a public agency, is a vital resource
for compiling data, tantamount to the U.S. Census Bureau and Bureau of Labor Statistics. The

8. Brazilian Institute of Public Opinion and Statistics (IBOPE), a privately held company, provides
the largest collection of information, not just in Brazil, but for all Latin American markets.
References
Cateora, P., Gilly, M., Graham, J., (2011). Country Notebook. International Marketing.
Retrieved April 2013 from Global Marketing Management, University Readers, 117-128
Bridges, T., (2009). Brazil’s growing middle class powers country’s economic rebound.
McClatchy Newspapers. Retrieved April 2013 from
http://www.mcclatchydc.com/2009/08/02/72931/brazils-growing-middle-class-
powers.html#.UYVBnUrZlj4
Global Sherpa (2013). Brazil – Country Profile, News and Original Articles. Retrieved April
2013 from http://www.globalsherpa.org/brazil-brasil
Wikipedia (2013). Brazil. Retrieved April 2013 from http://en.wikipedia.org/wiki/Brazil
The Brazil Business (2011). Purchasing Behavior in Brazil. Retrieved April 2013 from
http://thebrazilbusiness.com/article/purchasing-behavior-in-brazil
Rodeguero, N. (2010). Six Trends Shaping Brazil’s Retail and C-Store Market. Retrieved April
2013 from http://www.csnews.com/article-
six_trends_shaping_brazil_acute_s_retail_and_c_store_market-1203.html

9. Kellogg Insight (2012). Buying Behaviors of Emerging Middle Classes. Based on the research of
Alon Eizenberg and Alberto Salvo. Retrieved April 2013 from
http://insight.kellogg.northwestern.edu/article/buying_behaviors_of_emerging_middle_classes/
Euromonitor International (2012). Air Care in Brazil. Retrieved April 2013 from
http://www.euromonitor.com/air-care-in-brazil/report