International Marketing Opportunities for Unilever: Expanding into Kyrgyzstan
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This document discusses the international marketing opportunities for Unilever, focusing on its expansion into Kyrgyzstan. It covers market trends, competition, and strategies for success. Unilever, a leading consumer goods company, aims to expand its business operations globally and maintain its reputation in the industry.
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 Section 1...........................................................................................................................................4 Trends in the environment and market........................................................................................4 Market Structure..........................................................................................................................5 Section 2...........................................................................................................................................6 Activities and progress of the company.......................................................................................6 Basis of current competitive advantage.......................................................................................7 Marketing Challenges..................................................................................................................8 Section 3...........................................................................................................................................8 Recommendations and Actions....................................................................................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION International marking refers to marketing activities across the national boundaries. It is also known as global marketing in which organizations try to spread their products and services in the international market. Global marketing provide major opportunities to the companies to run their business activities in the different countries. Currently many multinational companies are managing their business operations in the global market by using their specific marketing strategies (Kee and Yazdanifard, 2015). For expansion of the company's products and services in the global market, company need to select the target market for the brand. Then company need to implement such marketing strategies in the business environment to gain strong customer base in the international market. It included the international marketing opportunities for the Unilever company. Company Background Unilever is a most popular consumer goods company. Headquarter of the company is situated in the London, United Kingdom. Unilever was established on September 2, 1929 (90 years ago). Currently Alan Jope is the CEO of the company. Unilever working in the 190 countries in the whole world. This company is the most successful brand in the consumer goods productions. Unilever is one of the oldest MNCs too in this industry and currently it has high goodwill in the international market. Management of the company is still working on the more expansion of the company in the world (Blanco, 2018). Company has the largest product distribution chain in the world. No one competitors are able to stand with the Unilever in the consumer goods industry. Company are succeed in the gaining much trust of the customers in the global market. This has strong vision to make their business environment more and more productive in the upcoming time. Section 1 Trends in the environment and market There are various trends are coming in the consumer good industry in current time which really affecting the business development of the Unilever company. Some major trends are discusses below; 1.Online Shopping :When e-commerce companies comes into the global market, there are many changes are faced by the all type of the industries including the Unilever in their businessenvironment.Nowadaysmanypeoplearedependsonthesee-commerce
companies for their buying needs. The Unilever is also run their business according to the market needs. Currently company's all products are available on the e-commerce sites for the selling purposes. So, customers are able to purchase company's products without go to store. They just order from the online e-commerce sites, and then these sites are providing home delivery of the Unilever products (Berglund, Duvall and Dunne, 2016). This trend is help in the development of the company, because now the Unilever is able to reach their products on that places too, where company still not run their business operations. This is one of the most popular trends in the consumer goods industry. 2.Feedback Policy :Feedback is also a part of the new trends in the environment and market of the consumer goods industry. Almost all consumer goods manufacturer companies has their own websites in the current time. Companies are providing the facility of feedback to the customers on their official websites. In which customers are able to share their experiences of company's product consumption. In this case if any customer is not satisfied with the products and services of the company, then customer is able to say thing to the company. Feedback policy is generally helps to the company for improve and develop their products according to the customers needs. This trend is really positively affecting the development of the Unilever company. 3.Social Media Marketing :Social media marketing is the most helpful trend for the company to increase their brand value in the market with low investment. For Example: currently large number of the population are coming on the social media platforms like; Facebook, Instagram, Twitter, Snap Chat etc. So, the Unilever is able to run their marketing campaigns on these platforms to influence people towards brand. Social media is the best way to attract customers in this market of the competition (Von Braun and Suseela, 2017). Many successful businesses are also taking huge advantages from the social media marketing. These platforms are providing facility to the company to run their ads or commercials on the social media pages. Company is able to promote their official page on the social media. There are marketing management of the company is need to make some fancy advertisements for posting on these platforms to take huge attention of the customers.
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Market Structure TheUnileveralreadytakenbigadvantagesfromtheinternationalmarketing opportunities, but there are many opportunities still available for the company. Company need to expand their business operations in those countries where company still not reach. There are an opportunity for the company to start their business activities in an Asian country, Kyrgyzstan. This country now open their gates for the MNCs in their domestic market environment (Tegtmeier and Classen, 2017). This is a great chance foe the company to more expand their business in the international market, and maintain their top reputation in the consumer goods industry. Geographic spread of the products Company need to choose the Kyrgyzstan as a target market, because there are great opportunity to the company to build a strong customer base in this country before competitors does this. Currently in this country low number of companies are working as consumer products brand. In which many companies are domestic. Still, not any MNCs like the Unilever reach in this market. There are mentioned some geographical factors of this country market below; 1.Cultural Factor:Market culture of this country is now on the progressive mode, because from last few years this country started their relations with the other countries. People are also very supportive by nature (Fan, 2016). The market culture is favourable for the company in the Kyrgyzstan. This country is fully covered by the beautiful mountains. So, company need to introduce such products in this market which really needed by the locals. 2.Economic Factor:Economic factor is favourable specially for the consumer goods manufacture companies, because people of this country are able to buy daily use items. Leaving standard of the locals are good enough for the company's products and services. They easily able afford the products which company has offering. Economic condition of the country is not too much good or not too much bad, because this country is comes under the developing countries. 3.Political Factor:Political factor is supportive for the multinational companies because local government want foreign investment in the Kyrgyzstan. Country welcome to those companies which ready to start their business operations in their national boundaries,
because it will generate huge employment in the country, and at the final result they able to more improve their economic performance. Customer Segmentation The Unilever need to divide their customers in categories in this target market. There are different types of income groups are available. Marketing team of the company need to invest on the market research for analyse the income structure of locals, and also study about their buying efficiency. Then company need to provide specific products to the specific income groups. Market Competition Competition in the Kyrgyzstan's consumer goods market is not much higher for the company like Unilever, because there are few companies are working as a consumer goods brand, and these companies most of are domestic. So, there are good opportunity to the company to start their business operations at higher level. Currently company selling their products in this country but not at the broad level (Gibbs and Pugh, 2017). The Unilever need to implement such marketing strategies here for aware to the local people about the brand products, and also try to cover whole country's consumer goods market because still no one competitors covered whole market of the country. Section 2 Activities and progress of the company The Unilever company is one of the largest consumer goods companies in the world. Currently company has the biggest product distribution chain in approx 190 countries in the world. Company is generally offering daily use items to the customers like; soap, shampoo, fairness creams, face-wash, washing powder etc. The Unilever is parent company of many subsidiary companies in the world. Company selling their products on the basis of these subsidiaries. This is always focusing on that market where people are think about the health care aspect, because their products are generally health care based. Company faces many competitors in the market too, but it has highly qualified marketing team which helps in deal with these competitors (Chanthunya, 2017). Company was introduced 90 years ago in 1929. TheUnilever was gained high reputation in the domestic market even after few years of establishment, because company was provided very effective products to the customers on that time. Then company started their expansion process in the international market, and with the serving good
products and services in the global market, now company become the world's largest consumer goods manufacture company. Basis of current competitive advantage There are company has various basis or strategies to gain competitive advantage from the market. 1.Cost leadership strategy:According to this strategy, the Unilever company offers same value products with the low pricing which competitors have offers at high price. This is the best strategy to gain huge customers' attention in the market. Many other successful businesses are also applying this same strategy in their particular business environment for increase their selling aspect. When company offers products at the low price in that case company have chance to attract those people too which never use company's products before. Cost leadership strategy refers to lead by cost in the competitive market. It is provides help to the company to beat their competitors in the same market. 2.Differential strategy :This is another basis for gain competitive advantage in the consumer goods market. In which company need to produce such products which totally different from the competitors products. For production of these different products, company need to deep research and study about the market conditions. This is really too necessary because there are some risk factors are also existing. Then according to the market research company need to start production (Thakur, 2017). After the production, marketing team of the company is responsible to start their marketing campaigns for that different or exclusive products to gain people's attention on these products. New version of the products is helpful to impress the customers. So, this strategy is really work in the gaining advantages from competition. 3.Focus strategy :This is refers to the stay focused on the competition of the market. There are not all businesses are perfect at any place. In which company need to analyse thecompetitor'smovementinthemarket,becauseonewrongmovementofthe competitor is the opportunity to the own company. Company also need to prepare specific plan to deal with future market uncertainty, because competitors can take any innovative step at any time. Many time these steps of the competitors too negatively impact the own company's business environment. In which company always need to stay focused on the market composition.
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Marketing Challenges In the journey of Unilever's business operations from establishment to date, company facesmanychallengesintheglobalmarketincludingthreatsandopportunities.There management of the company is always ready for business challenges because company has strong business strategies. These strategies are help to the company to handle any type of the situation in the international market (Abgaryan and Rosenthal, 2017). In company's legendary business journey the Unilever face huge competition in the market too. For Example: company expand their business in any particular country, but in this country already some domestic consumer goods manufacture are set up their businesses with high goodwill. So, it is big challenge to the company to divert country's customers mindset which already depends on the pre-established businesses. But with the use of modern marketing strategies company is able to beat their competitors in the market. Company always try to look business opportunities in the area of the world, and that's why company is now running their business activities in the 190 countries in the world. Company still searching for the new markets for selling their products and services. The Unilever really has strong and powerful vision for achieve their decided business goal in the international market. Section 3 Recommendations and Actions For build sustainable competitive advantage in the future company need to take some important actions in their business environment. The Unilever's main objective is to expand their business activities in the all countries of the world which is suitable for the business term. Company has strong vision to always be the top consumer goods manufacture company in the international market. With the high efforts and effective business techniques now company is working as the largest consumer goods brand in the world. Company still looking for the new opportunities of the business in the new markets (Trvikram, 2016). Their marketing team day and night working on the expansion of company. According to some recent business reports, customers of the Unilever are truly satisfied with the services of the company. Customer satisfaction is one of the major objectives of the company, and on the basis of this objective it is able to beat their competitors in the market. There are some major actions included below, which company really need to implement in their business environment to gain sustainable competitive advantage in the future.
1.Strong market analysis:Company need to use this major factor in the organization, in which management of the company is responsible to analyse the all market terms which are applies by the competitors in the market (Miasnikova, 2015). Company need to find competitors weaknesses for divert their customers towards own brand. Company need to figure out the income status of the people on particular that market where company want to take advantage from the competition. Then management need to offer some specific products to different income group people. This is really helpful to the Unilever to build sustainable competitive advantage in the future. 2.Effective Product Pricing:Price of the products is also playing the major role in the competitive market. In this company need to offer same product to the customers which competitors have offering, but at low price than competitors. Company also need to compare their products with the competitors products, and then analyse the value of the products and listing their pricing. Lastly company need to offer a reasonable price of the products while selling to the customers, and it is truly attracts to the people towards brand. This is also a useful way to the company to gain competitive advantage in the upcoming time. 3.Develop Exclusive Products:Special and exclusive products of the any company are help to attract new customers towards brand. In which company also need to invest in development and innovation of new products. This work if cover by the company in a systematic procedure (Van Grembergen and De Haes, 2018). Where management of the company is hire some product specialist and designers for develop new and exclusive products for the company. These exclusive products are help to the company to gain high attention in the market. Some customers are crazy for buying exclusive health care products in the market. In this case company able to sell that products to these type of the customers. Differentiation is very necessary in the company's products, because these products are mainly built the good image of the company any market segment. So, company need to follow this factor too in their business operations to gain sustainable competitive advantage in the future market. CONCLUSION It can be concluded that in the Unilever's market, there are various trends are existing which really affecting the business environment of the company. It also included many external
and internal factors which are impact to the company in both term; positively or negatively. There are company has powerful marketing strategies which is reason behind success of the brand in the international market. Company also uses some important basis in the business environment to gain competitive advantage in the market. Company has effective marketing team which is always put their strong efforts in their marketing task. It also included various steps to gain sustainable competitive advantage in the future as well. Current performance of the company in global market is so good, and company still move on the progressive path with the use of effective marketing strategies. The Unilever need to develop some more productive business techniques in their business environment to deal with upcoming trends in this market.
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REFERENCES Books and Journals Kee, A. W. A. and Yazdanifard, R., 2015. The review of content marketing as a new trend in marketing practices.International Journal of Management, Accounting and Economics. 2(9). pp.1055-1064. Blanco, A. P., 2018.Artificial intelligence and the consumer packaged goods supply chain. (Doctoral dissertation, Massachusetts Institute of Technology). Berglund, M. E., Duvall, J. and Dunne, L. E., 2016, September. A survey of the historical scope and current trends of wearable technology applications. InProceedings of the 2016 ACM International Symposium on Wearable Computers(pp. 40-43). ACM. Von Braun, J. and Suseela, R., 2017.Land grabbing" by foreign investors in developing countries: risks and opportunities. International Food Policy Research Institute Washington, DC. Tegtmeier, S. and Classen, C., 2017. How do family entrepreneurs recognize opportunities? Three propositions.Review of International Business and Strategy.27(2). pp.199-216. Fan, R., 2016. Opportunities and Challenges for Hong Kong in the New Millennium.Financial Markets and Foreign Direct Investment in Greater China, p.289. Gibbs, C. and Pugh, D., 2017. An ounce of prevention: opportunity structures for white-collar crime in environmental markets.Crime, Law and Social Change.67(2). pp.133-151. Chanthunya, C. L., 2017. The COMESA free trade area: concept, challenges and opportunities. InThe free trade area of the common market for eastern and southern Africa(pp. 33- 50). Routledge. Thakur, N. S., 2017. Wild fruits: nutritional and nutraceutical opportunities.International Journal of Food and Fermentation Technology.7(2). pp.III-IV. Abgaryan, V. and Rosenthal, S., 2017. Supporting Exports: Challenges and Opportunities for Credit Insurance in Armenia.Global Policy.8(3). pp.397-401.https://myventurepad.com/business-opportunities-international-markets/ Miasnikova, V., 2015. Russian Movie Industry on the International Market: Opportunities and Challenges. Van Grembergen, W. and De Haes, S., 2018. Introduction to the Minitrack on IT Governance and its Mechanisms. Online Trvikram, S. 2016.Business Opportunities in the International Markets. [Online]. Available Through: <https://myventurepad.com/business-opportunities-international-markets/>
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