Bresler

Why Bresler ice cream failed in the Peruvian market?

The year was 1996 and the two major global ice cream market had laid eyes on Peru.
Nestle and Unilever had seen in the low per capita consumption a perfect opportunity to
boost the segment (we consumed 0.87 liters, while Chileans, 3 liters).
But enter the business supposed to face the king of the Peruvian market: D'Onofrio.
While Nestle decided to acquire the company from Rodriguez Group Band, Unilever
ultimately decided to get you out front.
Originally, to some rumors indicated that the first option was to buy the Anglo-Dutch
multinational D'Onofrio (Nabisco and Philip Morris have also placed their bets).
However, while negotiating this purchase Nestle, Unilever was preparing to launch
Bresler.
This was a good introduction to the transnational. The mark was in 53 countries
(including Venezuela and Chile) and concentrated 20% of the global ice cream market.
Not bad.
October would be the month of admission. During a laser lighting ceremony, fireworks
and ballet, Unilever introduced its new product to senior executives of the supermarket
chains, business and industrial dairy products treats.
According to some cuts at the time, Unilever and Pacocha had a goal for the first year
have 15% of the local ice cream market.
"In general, in the countries where we are in the business of ice cream always we
surpassed the 35% market participation. We hope to reach that margin in Peru, "said
Richard Saldanha, former CEO of Unilever.
The company knew that meet this goal would not be easy. Therefore, it invested US $ 5
million to acquire two thousand ice-cream carts and a modern cold chain that would
allow them to reach all Lima.
In the first stage, which would last about six months, Bresler should be known in the
capital. After this time, they would enter provinces.
Within five years, Unilever was planning to invest US $ 20 million to position your brand.
The third step was to have the plant. Until that Bresler was taken off the market,
products coming from its plants in Chile and Venezuela.
THE WAR CAMPAIGNS

The summer campaign of 96-97 was one of the noisiest at the time. Bresler battalions
carts and D'Onofrio invaded the streets of Lima with its bells and cornets, respectively.
Unilever's offer included Pacocha as Magnum ice cream or Calippo, who entered into
direct competition with classic brands like Jet or BB D'Onofrio.
But not one wanted to conquer the consumer, but also the ice cream. Bresler not only
provided new uniforms and carts, but also permits already paid circulation * and dry ice
to keep products. The gelato competition had to bear these costs.
Before ending this summer, a news story changed the market: Nestl bought D'Onofrio.
If this acquisition was not achieved, Nestl plan B was to build a plant. Moreover, this
plan began to develop in parallel with the negotiations with the band Rodriguez family.
For the Swiss multinational, it was important to have a local plant, and to compete with
imports was difficult. Alberto Haito, Arellano Marketing director and former general
manager of D'Onofrio says that having a plant gives flexibility to the supply chain and
generates promotions.
Maybe this was the deciding factor that marked the history of Nestle and Unilever in ice
cream market in Peru. Changes in tariff and non-tariff measures by the end of 1997 rose
150% in the prices of import duties Bresler. In response, Unilever Pacocha stopped
selling the brand in 1998.
Until then, Bresler could only capture 8% of the market by selling in Lima and Chiclayo.
Racing extensive distribution network and portfolio of flavors D'Onofrio them was
difficult.
Another time we might have a giant in the ice cream market? Haito Unilever believes it
could be. There is much to do with a still very low per capita and seasonal break, so it
would not be unusual to appear a strong competitor of D'Onofrio. A prepare.
REASONS OF FAILURE

the causes that led to the exit from the market of Bresler the different taste of
their ice cream was claiming the majority of respondents at the time that the
amount of milk they had was too concentrated, making the product very heavy on
the palate Peruvian.

The costs of these products also amounted to large sums, since the brand
adopted the strategy of targeting resources where thought to attract more public
not taking into account the mechanism Donofrio of carts gelato strolling through
Lima in those times.

For a strong brand in the minds of Peruvians, but also because when importing
their products had no resilience to climate variability.

IMMEDIATE CORRECTIVE ACTION

One of the corrective measures to be taken Bresler, was to determine a strategy

in the market, this may be the low price of differentiation or differential value.
Enter a market in which there is a natural monopoly as is the case Donofrio, it is
very difficult to treat especially if it is a new brand. Therefore, before all Bresler,
and in this case Unilever, they had to conduct a comprehensive study because
the Peruvian preferred above all ice cream Donofrio to know exactly what they
wanted and imagined as an ideal product for them. After this study could have
defined the strategy to capture higher market percentage.

Also, if the results are that differentiation should be due to the means of delivery
of ice cream, Bresler could have innovated in it, giving the consumer at least the
same as the other competitor from the market or more of this surpassing the
expected service and the expectations of potential consumers.

Finally, Bresler must better position their brand as directly compete with the
leader without having a product differential between them is complicated,
especially in the Peruvian market, in which national brands are rooted in the
minds of consumers and who feel identified with them and it's hard for them to
leave them for a brand new, it does not give them what is necessary to stop the
habit of buying Donofrio or something differential to be a switcher in the category.