Marketing Mix Strategies of Unilever and Waitrose & Partners

This report analyzes the marketing mix strategies of Unilever and Waitrose & Partners, including their branding, marketing, and advertising strategies. It also examines the BCG growth market share analysis for both companies.

Marketing and Business
Environment

Contents
INTRODUCTION................................................................................................................................3
Section 1: Marketing Mix.....................................................................................................................3
1.1 Strategy......................................................................................................................................3
1.2 Marketing Mix...........................................................................................................................4
Section 2: Factors in the Global Environment.....................................................................................6
2.1 BCG Growth market share Analysis..........................................................................................6
2.1.1 BCG Matrix (UNILEVER).....................................................................................................6
2.1.2 BCG matrix Of Waitrose........................................................................................................7
2.2.1 Porter five forces model of Waitrose......................................................................................8
2.2.2 Porters five force model:.........................................................................................................9
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
Marketing is a set of activity with the help of which a business aims to satisfy the needs and
wants of the customers efficiently. In includes a process with which the values are created for the
customer and are delivered to them by communicating them the benefits of such values from the
product and services so offered (Chhabra, 2020). For this it is important for the business to
formulate various strategies by analysing the business environment in which they are operating.
They management of the organisation must analyse both their internal and external market as on the
basis of this they can determine their capabilities and abilities for the prevailing opportunities and
threats in the market. The strategies so formulated by the organisation are based upon the strategies
that have been adopted by the competitors. For this report the two well known organisations that are
taken into consideration includes Unilever Plc and Waitrose & partners. Unilever is a UK based
consumer goods company while Waitrose & partners is a UK based supermarket chain. In this
report the marketing mix strategies of both the organisation will be analysed with the help of which
they can make necessary changes. Apart from this the global business environment of the
companies is analysed with the help of various models that facilitates in analysing the business
situation.
Section 1: Marketing Mix
1.1 Strategy
Unilever Plc: Unilever Plc is a multinational company that offers a wide range of consumer
goods to the customers. The product category of the company includes personal care items, home
care products, food items and many more. It has been operating in three regions which are Asia,
Africa and Central and Eastern Europe, the Americas and Western Europe. They have been growing
consistently year after year as they have adopted various strategies as per the prevailing situations in
the market (Xie, 2020).
 Branding Strategy: With the help of branding strategy of the company they aims to keep their
customers in touch with the customers and to keep them engage with the organisation. Their
branding strategy that they focuses upon is that they has complex portfolio of the products and
services due to which the customers do not have to move to other brand for their basic goods as
they offer almost all. Along with this they uses unique selling proposition such as various
emotional aspects to connect with the customers.
 Marketing Strategy: With the help of marketing strategy Unilever aims to increase their
customers base as with this they target as many people as possible. They target each and every
individual as their portfolio is quite complex in which the product ranges from babies to an old
person. They have divided the entire population into six category Poor, Average, Rich,

Children, Adults and Elderly (Hollenbeck, 2019). They provide products as per the need of
these people.
 Advertising Strategy: To be in touch with the customers they consistently advertise their
variety of products and services which helps them to create awareness about their products and
services. They advertise through television and online platform as they believe that with these
sources customers can be attracted in an creative manner.
Waitrose & Partners: Waitrose and Partners is a well know supermarket chain in UK that
offers a wide range of groceries in their store. They have employee a large number of employees in
their organisation making it as one of the largest employee-owned retailer. The headquarters of
Waitrose & Partners is in Bracknell and Victoria, England. The retailer have license to supply
groceries, wines and spirit to Queen Elizabeth. The market share of Waitrose & Partners is around
5.1% of the food market in the year 2015. Various other strategies of the Waitrose & Partners
include:
 Branding Strategy: With the help of various branding strategy the company aims to provide
attract more and more customers for their products and services. Waitrose & Partners focuses
upon the strategy of ‘Value for experience’ to the customer in which they believes that they
offer better services to the customers due to which they have better brand image among
customers. Also the reason for this strategy is that the discounted strategy for promoting the
brand is a sign of weak brand (Woods, 2020). Due to this they focus upon the experience of the
customer and values of money for the customers.
 Marketing Strategy: The marketing strategy of Waitrose & Partners includes their
segmentation strategy in which their target the middle income group for their product and
services which are of high quality and comparatively of low prices. With marketing strategy of
low prices products and services with better quality enable them to maintain their market share
even in the financial crises situation.
 Advertising Strategy: For promoting their products and services Waitrose & Partners has
adopted various advertising means with the help of which they make their customers aware of
their services. Various advertising sources that they use include television, radio, internet,
newspaper, direct mail to the customers about their offers etc. With the help of all these media
they can easily let their customers know about their innovative services and special offers so
that they can increase prompt sales for the company.
1.2 Marketing Mix
Marketing mix is the strategy with the help of which the organisations plan various
strategies and tactics that can enables them to formulate various actions. With the help of this
various guidelines can be prepared so that right product can be provided to the customers with right

channel and better process along with suitable prices (Scorrano,2019). The marketing mix strategy
for Unilever and Waitrose & Partners are given below:
Marketing mix of Unilever Plc:
 Product: A wide variety of consumer goods to the customers which offers customer choices to
select one out of many. They offers products from different categories which includes foods,
refreshments (beverages and ice creams), home acre and personal care. The categories reflect
that they have diversified products which increase chances of satisfying customers more
effectively.
 Price: Their target market is each and every person as well as their portfolio is complex due to
which the pricing strategy varies from product to product. For some product they uses premium
pricing strategy while for some they focuses upon market oriented pricing in which they set
prices for their products as per the prices of the competitors (Lopes, 2019).
 Place: The Unilever has global presence due to which they have significant distributors as their
partners which ensures easily availability of their products to the customers. The customers can
purchase their products directly from the retailers, stores or Kiosks. Such partners of the
company also help them to promote their products on personal level.
 Promotion: The promotion strategy is very important for the company due to which they have
been focussing upon various channels of promotion such as advertising channels that includes
television, online platforms etc. Even they pay emphasis on personal selling and establishing
relations with the customers. In addition to this by way of sales promotion they increase their
prompt sales.
Marketing mix of Waitrose & Partners:
 Product: As they are retailer and a supermarket, Waitrose & Partners offers a large number of
products in their stores due to which it is not possible for them to create differentiation among
their products. For this they emphasis of the services that they offers to their customers
(Madsen, 2017). Also the organic and natural food that they offer from their own farms gives
them competitive advantage over others.
 Price: The concept that has been adopted by the Waitrose & Partners is that they aims to offers
value for the money so spend by the customers instead of lesser prices. The pricing strategy
that consider is quite similar to Tesco which is prices relative to the cost of the products and the
competitive prices. This enables them to offer better quality products with comparatively lesser
prices.
 Place: Waitrose & Partners have their stores in almost each and every important town from
where they can target their customer base easily. This makes their products easily available to
each and every people and thus facilitates them to increase their market share (Radha, 2019).

 Promotion: The promotion strategy that has been focussed by Waitrose & Partners are
advertising through newspaper and TV advertisements which enables them to reach a large
number of customers. In addition to this they even consider celebrity endorsement for
launching new campaign of the promotion. This enables them to attract the customers’
attraction for the time being.
Section 2: Factors in the Global Environment
2.1 BCG Growth market share Analysis
BCG also known as Boston Consulting Group which is types of framework which depicts
that strategies and risk associated with those tactics as well as strategies are displayed. It includes
four quadrant in which a proper analysis is given of investment; weather to invest into a particular
brand or not. With help of this framework, firm are able to save their timer, money and defend
themselves from uncertainties of activities. This tool is mostly used by organisation when entity
wants to invest but doesn’t have a proper knowledge of market. New strategies and tactics are
implemented when situation of market is examined and analysed. In context to Unilever, they adopt
this matrix so that all the decisions in business are taken in effective manner. This analysis has been
discussed below-
2.1.1 BCG Matrix (UNILEVER)
 Dogs- In this stage, it is not considered as important because it provide negative sales
returns and low cash is generated in the market. Dogs hold the market for some period of
time due to competition and rivalries. In relation with Unilever, they keep an eye on their
competitors which helps them to away from bite. For example- slim fast brand of company
was in stage of dogs which leads to sickness of that industry and was sold (Madsen, 2017).
 Cash cows-This stage depicts that company wish to invest in brands not for profit earning
motive but to support the existing brand. In cash cows, customer acquisition and market
share growth is being focused by entities. In context to Unilever, their hellmann’s and
Marmite was the reason for investing into this aspect. Reason for investing into these brands
was to push them so that they can survive in market easily for longer period of time. This is
necessary because it stimulates competitors and entities to introduce new and innovative
products. In this, market share growth remains stable to overcome with challenges and
threats (Chiu, 2019).
 Stars- Then come the stars in which market share growth and return of profit remain high
which results in investing of organisation in brands at broad & wider level. Sometimes due

to flexibility of market these starts might become cash cows so firm wish to invest in such
type of brands. Unilever invest in brands such as dove and Lipton, and expanding their
product line at both national as well as international level.
 Question mark- In this quadrant, it is flexible in nature and it is more risky compared to
other quadrants. In question mark, market growth share is low and it has a possibility of
becoming cash cows as well as stars depending upon the events and changing trends of
market. In relation with Unilever, T2 and OMO are refereed as problem chid brand and
organisation faces many criticise from customers and within the market (Rogowski, 2020).
 After a brief analysis of above matter it is seen that BCG matrix is beneficial tool for
organisation and every firm use this framework so that effective strategies and tactics are
made to overcome with challenges and threats in market. Knowledge, skills and market
research is essential while using this tool in the business so that investment is done in
appropriate manner.
2.1.2 BCG matrix Of Waitrose
 Dogs – The first stage of BCG matrix in which market and profit share growth is on hold by the
dogs and organisation defence themselves from being bitten by dogs. In this stage negative
cash return is present and entities stay away from being getting into difficult situation or to
suffer from losses. In context to Waitrose, their food magazine is not so profitable as compared
to other brands of the entity.
 Cash Cows- This quadrant depicts that investment should be done but just to support brand
productivity and to survive in market. Organisation does not invest; only help the brand to
enhance its product value in the market. In relation with Waitrose, they are not expanding
product line of their my Waitrose loyality card.
 Stars- Further comes the stars in which organisation come and invest in the brand to earn profit
and market share growth. In this quadrant, entities expand their product line and business at
wider level. Waitrose is extending the product line of chicken breast and which is highly
consumed by people. This gives high rate of profit and increase the market growth rate of
business and competition is faced by enterprise is effective manner. In relation with Waitrose,
their Waitrose love-life brand is most profitable in the market and is still emerging amongst the
people (Suksantilap,2017).
 Question marks-Market is wider & broader and uncertain activities are bound to occur. In this
stage, investment can be cash cows also and stars too depending upon the level of situation. In

context to Waitrose, Hesten from Waitrose is considered as question mark aspect of framework.
Because not everyone likes premium brands, it depends upon the taste, attitude and behaviour
of the people.
2.2.1 Porter five forces model of Waitrose
In organisation, ample number of functions and operations are carried out to achieve goals
and objectives in proper manner. Porter five forces is tool used by marketers and firm to analyse the
competition and profit scale in the market (Suksantilap, 2017). Due to uncertainty of market,
various strategies and tactics are used by enterprise so that business activities are carried out in
appropriate manner. There are various types of forces which are involved in the model and are
mentioned below-
 Threats of new entrants- Business has to face many challenges and threats in and one of them
is new entrants who come in market and raises the rivalries which affect profit and sales revenue
of entities at wider level and conflict is created in market. In context to Waitrose, their business
also gets affected by small retailers who provide products in market and slow down the growth
of other businesses. This arises when loyalty of customer towards product and brand is low,
rules and regulation of government are either low or doesn’t exist in market or country.
 Threats of substitutes- Further come the threats of substitutes in which availability of the same
products by other entities has a deep impact on brand value. In this, same product is available in
market at lower prices by local retailers or vendors to acquire customers and profit share
growth. In relation with Waitrose, they do also have substitute products such banana, lemon are
present in market at better prices (Rogowski,2020).
 Bargaining power of Suppliers- In market, bargaining play vital role in process of exchange of
goods and services. Suppliers often wish to bargain in order to gain higher profit and money by
providing low quality to buyers. So, bargaining of suppliers depend upon market competition
such as if competition and rivalry in the firm is rising then vendors demand high bargaining
power and if competition in the market is low then power is flexible. In context to Waitrose,
bargaining power in market is flexible and low due to strong network and long distribution
channel.
 Bargaining power of Buyers-Further come the bargaining power of buyers in which bargain is
done from buyers side. In this, power depends upon present ability of resource and value of
product. Such as if the value of product is high and resources are rare then power is low whereas
if resources in market are common then bargaining process is in the side of buyer. In relation
with Waitrose, bargaining power of buyer is relatively high because enterprise deals in those

products which commonly used and consumed by everyone in the region (Gunasekarage,
2020).
 Rivalry/ competitors-Then come the rivalry and competition force in which organisation in
market strive for their survival. In this, every entity wish to acquire more customers, efficient
resources, skilled manpower, larger market share growth. Competition arises mainly due to two
factors either because of availability of same product or new entrants of businesses. In context
to Waitrose, they do also have competitors which are Sainsbury’s, TESCO, ASDA Group etc. To
overcome with competition in market they use strategies and tactics so that business run for
longer period of time.
2.2.2 Porters five force model:
Unilever is a company that is effectively contributing in development of economies of many
countries. Below discussed is the porters five force analysis of Unilever. That is being used for
purpose of understanding different forces that are impacting this brand. It is a model that is very
helpful in development and understanding of such factors in a more detailed manner:
 Bargaining power of Buyers: This is a factor that is related with switching cost of a
customer. There are some best offerings that are done by Unilever which is leading towards
a low bargaining power of buyers. Further in order to maintain a loyal base of customers it is
very important for brands like Unilever that they have to build up a large customer base and
involve into a rapid innovation process. They must also adopt some ways such as discounts
and attractive offers to make sure that customers are not willing to switch from their
products.
 Bargaining power of suppliers: It is related with what type of relations is Unilever able to
maintain with their suppliers. It is very important to maintain long term and positive
relationship with their suppliers for the purpose of availing raw materials at reasonable
prices. Unilever has able to build up a efficient supply chain with many suppliers and it is
helping them in having regular supply of raw materials and their manufacturing process is
not getting impacted in any manner and there is low bargaining power of suppliers as they
offer many profitable opportunities to their suppliers (Schmitt,2019).
 Threat of substitutes: There is always a threat of substitute that is present especially for
retail organisation such as Unilever as they are offering products that can easily be
substituted by their customer to some other products. So it becomes very essential for
unilever to offer such high quality that consumers are not able to easily substitute their
products from any other similar competitor. So, Unilever is making many efforts such as

they are focusing more on being services oriented rather hand just product oriented, such as
they are providing after sales services and understanding what are the core needs of their
customers etc. Such efforts are helping in reducing the threat of substitution.
 Threat of new entrants: It is a force that is related with new brands that can enter easily to
the same industry to which Unilever belongs (Chiu,2019). This type of threat can be handled
by Unilever by new innovations, adoption of economies of scale, building up of capabilities
and investing on research and development. It is also very helpful in maintain of the present
level of profits for an organisation. There is a low threat of new entrant in the retail industry
where Unilever is functioning as there is already presence of very strong players so, it
becomes very difficult for any new player to enter and establish at same time survive in the
high competition.
 Competitive rivalry: It is related the rivalry that is presence between the exiting players in
the industry. In present case it can be said that Unilever is facing industrial rivalry from
other bog brands which are dealing in the similar type of products. Unilever will be able to
handle the industrial rivalry by building up of a differentiation, a base of loyal customers,
collaborating with other small competitors so that they can increase their market size by
removal of small competitors (MoKHTAR, 2020).
Above discussed are some of the factors that are part of external environment of every
business and impact their overall functioning. Unilever is a established brand and it is very
important for it to reduce the negative impact of such external forces and at same time maximize the
positive impact of such factors is that maximum profits can be earned from a particular marketing
strategy (Suder, 2019).

CONCLUSION
It can be said from the above discussed points that marketing is a very important strategy for
every organisation it is not limited to just advertising. It is used as an opportunity by various
organisations to develop a concept and understanding of the integrated activities os that a profitable
marketing strategy can be further formed. Marketing mix can be used for developing an
understanding of what are basic aspects of a particular product or services that are offered by a
organisation and also there is understanding of five external forces can be understood by models
such as BCG matrix, Porters five force model etc. Such frameworks make it easier to understand the
positive and negative impact on marketing activities of a organisation.

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