Marketing Essentials: Unilever Marketing Plan Analysis
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This report analyzes the marketing plan of Unilever, a British multinational company, and evaluates different tactics applied by organizations to achieve business objectives.
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MARKETING ESSENTIALS
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 Covered in ppt.............................................................................................................................3 TASK 2............................................................................................................................................3 P3: Compare different organisations apply the marketing mix to achieve business objectives. .....................................................................................................................................................3 M3: Evaluate different tactics applied by organisations to achi eve business objectives...........6 TASK 3............................................................................................................................................7 P4 Produce and analyse a basic marketing plan for Unilever....................................................7 D2 design a strategic marketing plan with the application of 7ps to achieve marketing objectives..................................................................................................................................10 CONCLUSION.............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Marketing can be defined as the activities a company does to promote product and services by explaining their benefits and specialities for the purpose of buying and selling. Marketing involves advertising, selling and delivering goods to the customers. Marketing is an important function in an organisation(Perreault, 2018). For inviting customers to buy the product, the company first need to introduce the products and services to the customers and then need to explain them the product they are going to buy through the way of communicating to the right customers at a right timeandin a appropriate way. Thisreportisbased onUnileverPlc which isaBritish multinationalcompany headquartered in London, England. The company produces food items, pregnancy test kits, personal care & beauty products and is also indulged in pharmaceutical and health sector. Unilever is the largest producer of soap worldwide. TASK 1 Covered in ppt TASK 2 P3:Compare different organisations apply the marketing mix to achieve business objectives. 7Ps of Marketing Mix Marketing mix is defined as a set of action and techniques that a company use to promote its brand and product at market place. This has associated with multiple areas of focus as a pert of comprehensive marketing plan.Marketing mix is a model of foundation for businesses which is centred around price, place, people, promotion, product, process and physical evidence. The concept of marketing mix came into existence in 1960s(Campbell, Martin,and Fabos,2018). This is normally used by the marketing department for analysis of the current market scenario so that organisation could formulate effective strategies which help company in to enhance it competitive edge in the market place(Bünte,2018). Further classification of marketing mixis explained below in context to Unilever company. Product:Unilever plc is a British based multinational consumers goods company. This is consist of mainlythree divisions, that are food and refreshment, home care and beauty and personal care. This has been owns over 400 brands that reflects that Unilever's product range and
marketing mix is highly diversified. On the other hand The Procter and Gamble company (P&G) is an American based multinational consumer goods corporation. This is specialise in selling wide range of personal health, personal care and hygiene products which is further segmented into beauty, grooming, fabric, health care and home care products. The company is reliable and manufactures better production facilities in order to ensure best quality of products. Price:Price is defined quantity of payment or compensation given by one party to another in return to goods or services. In this Unilever maintains a wide range of price points while considering the level of market diversification(Nirschl, and Steinberg, 2018). It has been use market oriented pricing, premium pricing and product bundle pricing as per the market and product range. In this element of marketing mix, price points, price ranges and price bases are determined. P&G company has been use market oriented pricing in which pricing has been determined by competitors and related trends of pricing along with this, it also use premium based pricing that helps in maintaining perceivedpremium value for the premium brand of company. Place:This is a place in which company make their product available to consumers. The global operation of Unilever is the reflection of extensive reach of the product and services in consumers markets. It sale its product at retailing shops andat online stores. Through this it make available its product in around 190countries. This factor of marketing mix determine venues for transacting goods with targeting consumers. They has been providing product to consumers across the world. In this many entities evolves in the distribution of company's product and services in which it includes retailers, authorized distributors and own P&G online shops. Promotion:Unilever is need to promote its productwhile considering the high level of competitive rivalry within the global consumers market. The company offers low prices on a fixed basis with the improves quality and wide range of products to consumers. With the utilisation of advertisement, sales promotions and direct marketing in order to increase sales and to attract potentialconsumers. Here company use communication tactics for reaching target consumers. P&G has adopted different strategies to promote its product at a consumers market place. They have assort their marketing campaign in form of advertisement on television, sales promotion and through public relation so that sales can be enhanced in a effective manner.
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Physical evidence:This is refers to the everything which a consumers see while interacting with business. It includes physical environment where a company provides its product and services, layout and interior designing, packaging and branding. Unilever's online presence is strong and physical retailing shops it products are placed at special shelves which is provided by company. P&G company has a strong presence of physical shops in various countries. It sells it product in a distinct colour of packaging which is easily identifiable in shelves. Process:Thisincludesprocessesindeliveryproductsandservicestothe consumers(Sharma, Ahuja, and Alavi, 2018). In this company ensures about repeatedly devilry of product and services of same quality standard. With the effective process company save their time and money through increasing efficiency. Unilever manufacture better quality of products along with this they offer multiple channels in order to provide convince to customers. They have use their own stores along with online platforms so that consumer can easily approach to company's product and services. People:By enhancing many job opportunities for local and international people. Unilever as been working with a 155000 of employees which contributes in the growth of the company along with this, also ensures customers should get higher satisfaction. P&G has been working with over 99000 of employees, along with this it has optimizing job opportunities in many countries in order to increasing overall efficiency of business. M3: Evaluate different tactics applied by organisationstoachieve business objectives Marketing strategies and techniques is refers to a long term andforwardslooking approach which is used by the company in order to achievingthegoal of longer sustainability and maintaining competitive advantage by understanding the need and wants of the consumers . There are various methods and tactics used by the Unilever company is explained below: There are some tactics to meet the objectives of the business: 1.Learn from behaviour of the customer:An organisation should critically analyse the behaviour of the customers before starting with the marketing function(Hair Jr, Page, and Brunsveld,2019). This helps will help Unilever company in tostrategically connect with the target audience.
2. 3.Convert long-term strategies into short term:A company is evaluating the gap between actual performance and standard benchmark, a company need to short down the long strategies into the short term tactic through Unilever company is able to achieve them effectively and retain best employees within the organisation . 4.Develop a basic plan:An organisation should create a plan before proceeding with any of the business functions. Same works with the marketing function, a company should prepare a detailed marketing plan which should define researched marketing strategies and the marketing mix of the company. With this Unilever company will perform in more effective mannerwhichwill produce a positive outcomes. Along with this, basic plan help intoachieve organisational goals and objectives. 5.Be aware about the customers and competitors:The company should gather all the information about their target customers and its competitors.So that better strategies could be developed by Unilever company in order to enhanced competitive edge and loyal customers base. TASK 3 P4 Produceand analyses a basic marketing plan for Unilever Structure and development of Marketing plans:a organisation will implement marketing strategies but also focus on encouraging the level of customers satisfaction along with brand awareness within the market place. With the support of this organisation is able to focusing and directing the techniqueswhich help in achieving the goals in defining qualities and standards(Al Badi,2019).Every company requires a strong marketing plan for sustaining in the market and creating a good image in the eyes of the customers. An execution of marketing plan through effective sources of promotional strategies that has been undertakes to analyse the effectiveness of these initiatives. As marketing plan need a appropriate procedure to execute their program as well as blue print for the implementation of marketing strategies. Therefore Unilever company requires a plan as this has been introducing new health and skin care product that is Unilever “Healthier”. Marketing Plan of Unilever: --
Mission:Unilever mission is to add energy to the life. The company wants to fulfil all the day-to-day requirements of people for nutrition, hygiene and personal care with the brands that serves quality and value for money. Vision:To become the global leader in sustainable business for which the company has improved the performance according to the business model. Corporate Objectives: To become the market leader and control it for the next decade Retain the stockholder and consumer confidence To make the management more globalised Marketing Objectives: To increase the profits and grow sustainably To boost the sales and profit margins by 7.5 % To increase expenditure on advertisements Situational Analysis: Situational Analysis is the process of critically analysing the internal and external conditions that might affect the organisation. This is done before taking a new initiative or before starting a project. It helps the company identify the present-day opportunities and challenges to the organisation, service or product(Eletxigerra, Barrutia, and Echebarria, 2018). McKinsey 7S model This is describe as the management model which has been established by business consultants Robert H. waterman, Jr and Tom Peters in 1980s. It is undertaken by companies for developing strategic vision for groups and overall organisation. This analysis is below as in context Unilever: 7SExplanation StrategyThis is refers to the plan that allow company to formulate plan of action in order to accomplish sustainable competitive strategy. The main strategy followed by Unilever is quality of products and in low quality. StructureThis is define as the way in which company is organised, in relation to Unilever's it has been following functional structure due to the complex framework.
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SystemIt defines business and technical infrastructure of the company which used forworkflowanddecisionmakingchain.Inthiscompanyhasbeen following predetermined structure or hierarchy this is used for workflow. Shared valueShared value for Unilever is to provides great quality in affordable prices that help into raising standards. This help brand to achieve best position into multinational companies StyleIn this Unilever has been utilising participative leadership stylein order to encourage motivation and productivity of employees. skillsThis is the capability and competencies of company, in Unilever employees are having good problem solving skills, analytical skills etc. which help in take right decisions for organisation. staffThey are recently working with the 155,000 External analysis external factors has the huhe impact over the company' performance which has been analysed by conduction pestle analysis and porter's five forces model. PESTLE analysis: Political factorThis is define as the rules and decision making the government, in this UK has been consist of political stabilitythat will produce less disturbance in the functioning of company along with this political issues such as Brexit can hinder the working of an Unilever's supply chain in trading to other countries. Economic factor This factor is consist of the tax rates, inflation rate, disposable income, wage rate etc. increasing wage rate in UK will be threat for the company as this impact the cost of Unilever company. Along with this, UK econimy attract the investors across the world with this, Unilever hasthe opportunity to grow more. Social factorIt is refers to the social groups, friends and family which has direct impact over individual opinion, attitude and living standards. UK has diverse culture in which company has opportunity to carter the need for various segments for
maximizing profit and customers base. Technological factor It is described as the all externally generated changes that are used bythe company in its production and other process. Rising automation in UK will be opportunity for Unilever as through utilising technology company can gain competitive advantage but at the same this could threat as this will impact cost and rapid up-gradation make technology obsolete. Legal factorThis is an laws and regulations made by the governmentthat can impact operationsofthecompany.InternationalPatentlawsinUKoffersan opportunity to reduce competition on international level and also maintain high competitive advantage. Environmental factor This is refers to thefood, water, pollutants, natural calamites, light etc. that impactlivingbeings.Unilever'scorporatesocialresponsibilityin environmental program attract more customers and government of UK has been also providing the subsidy which are using eco-friendly process in opera6ting businesses. Competition: Unilever's competition can be analysed bythe porter's5 keys of competition: Threat from New Entrants:The range of products offered by Unilever such as the food and personal care needs high investment to penetrate the market in relation to the established distribution channels which enables to compete effectively. The company has branches in more than 190 countries and its capability to design the products depending on the needs of the customers(Hoque, Hashim,and Azmi, 2018).In this threat for new entrants is moderate as switching cost of consumers is high but there is low force of new brand development as Unilever is having a loyal consumers base. Threat of Substitutes:this is described as the commodity which can be used at the place of company's product and servicesandthis factor cause a threat for a company . In this threat from substitute is low for Unilever, as availability of substitute for energy drink is
low but along with switching cost is high as there many brands are already available in market. Bargaining power of customers:it is defined as the customers power which can drive a prices lower. This is effected by the loyal consumers basethat a company has and how much it cost in finding new consumers.In this bargaining power of consumers is high as there are many competitors in industry that are selling same type of products and services to consumers. Here switching cost for Unilever is high along with this, consumers having high quality of information about companies offering. Bargaining Powers of suppliers :This factor of model addressed that how easily suppliers can drive the prices higher for key inputs(Baack, Czarnecka,and Baack,2018). This get effected by the number of suppliers of key raw materials of goods and services and how unique these raw materials are. Here bargaining power of suppliers is moderate, as there are many suppliers of inputs within retailing but brand like Unilever is having there fix suppliers for the inputs through which they maintain the adequate quality of products. Competitive rivalry:this factor is defined as the number of competitors within the industry and their power to undercut a competitive firm.Suppliers and buyers look towards the company's competition in order to get a better deal and lower prices. In this competitive rivalry is high as there many brands that are selling homogeneous products suchasP&G,NESTLE,Kimberly-Clarketc.thereisahighaggressivenessin competition among the firms and customers can switch easily to another brand this has a direct impact over the company's performance and productivity. SWOT Analysis of Unilever: Strengths:Unilever currently functions in somewhat around 190 countries around the world. It works in diversified range of products and brands which differentiates it from the other in the market which helps the company to cope up with the dynamic preferences of the consumers. Weaknesses:The main weakness of Unilever is that it functions in ancompetitive market where there is a competition like Proctor & Gamble and Nestle. This competition challenges the company at every time due to there are lot of changes in the price of the product and services(Avila-Robinson, and Wakabayashi, 2018). The other weakness of
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Unilever is the availability of substitutes in the market due to which the company loses some of its customers every day. Opportunities:Expanding in the Countries with huge number of populations like China and India can be an amazing opportunity to acquire a large number of customers in the market. Threats:The current global economic juncture has affected the profits of the FMCG and beauty and personal care sector in which Unilever was one of those companies. With the declining income of the consumers, the consumers are demanding more value for the money. This tells that Unilever faces a problem of diminishing profits and increasing costs. Objective:The main objective of Unilever company id to accomplish profit of 20%, the SMART for mat for this objectives is described below as: SpecificThe objective is specificbecause for accomplishing this objectives it is important to attract more potential customer base. MeasurableThe objective includes statistics so its can be measured and based on this Unilever company has been review that it can be achieved or not, AchievableIn 20% of profit, achievable percent is 16%which is going to be achieve with usage of effective strategies RealisticThe objective is realistic and will be achieved through providing great quality along with low pricing strategy Time boundAround 10 months time is required for achieving this objective. Target Market:The products and services offered by the company are easily available and affordable to all classes of the customers as the organisation uses a value pricing strategy across all the countries where the branches are found(Okumus,and Cetin, 2018).The Unilever company has focused on every age groups of consumers whether kids, men, women or the senior citizens as it offersa “healthier” product which is energy drink for all age group of people.
Distribution Network: The company has well maintained distribution network in more than 100 countries. This helps the customers in getting an easy access to the customers. This help Unilever company in to distribute it newly launch product at a market place. Budget: On the basis of marketing plan the budget is would as follow: Marketing budget Particulars1st year2nd year3rd year4th year5th year Initial money5600013600132002100018000 Investment21500149001700014400 Total5600035100281003800032400 Marketing expenditures Advertisement97006800630061006300 Sales promotion22002200440032008400 Direct marketing71006200220071002200 Total1900016200139005440016900 Available balance7500051300420002000049300 Control and Monitor:After all the steps, it is very essential for marketing manager of Unilever company to analyse all the steps involved in the marketing plan. In this way company can increase the effectiveness of its marketing activities and can attract large number of customers towards its product. D2 design a strategic marketing plan with the application of 7ps to achieve marketing objectives. Marketing plan of Unilever has involves all the factors that will provides a company competitive advantage along with the longer sustainability. The need of developing and creating
a products in the market plan will help the company to maximise the reach of the customers. Along with this, adding a new and creative in the current market will provide the customers with variety of products to satisfied the need of customers indifferent segments(Roy, and Gretzel, 2020). Moreover it is difficultfor thecompany toachieve the targets of increasing sales and revenue in a current market.Manufacturing and developing new and creative products normally takes a long time. The company can increase its sales by being available on the social media platforms. Focusing primarily on selling and advertising the existing products in the marketing plan would have been more advantageous for the company and will help achieving the set targets in the specified period of time. CONCLUSION After the above study, it can be concluded that marketing function plays a vital role in an organisation. It helps an organisation introduce the manufactured products and services to the target customers and inviting them to buy it by telling them the advantages and value of the product. Marketing function helps a company create an image of the company in front of the targeted customers. The functions of marketing vary according to the kind of company. Marketing Mix is a foundation model for business which involves price, place, product and promotion. Marketing strategies are formed on the basis of the Marketing mix. There are some marketing techniques that makes an organisation unique and fit for the market. A marketing plan should always have a situation analysis, marketing strategy, sales forecast and expense budget.
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Bünte,C.,2018.KünstlicheIntelligenz–dieZukunftdesMarketing.Wiesbaden:Springer Fachmedien Wiesbaden. Nirschl, M. and Steinberg, L., 2018.Einstieg in das Influencer Marketing. Springer Fachmedien Wiesbaden. Okumus, B. and Cetin, G., 2018. Marketing Istanbul as a culinary destination.Journal of Destination Marketing & Management,9, pp.340-346. Eletxigerra, A., Barrutia, J.M. and Echebarria, C., 2018. Place marketing examined through a service-dominantlogiclens:Areview.JournalofDestinationMarketing& Management,9, pp.72-84. Roy, N. and Gretzel, U., 2020. Themed route marketing in India.Anatolia,31(2), pp.304-315. Avila-Robinson, A. and Wakabayashi, N., 2018. Changes in the structures and directions of destination management and marketing research: A bibliometric mapping study, 2005– 2016.Journal of Destination Marketing & Management,10, pp.101-111. Baack, D.W., Czarnecka, B. and Baack, D., 2018.International marketing. Sage. Hoque, M.E., Hashim, N.M.H.N. and Azmi, M.H.B., 2018. Moderating effects of marketing communicationand financialconsiderationon customerattitudeandintentionto purchase Islamic banking products.Journal of Islamic Marketing. Al Badi, K., 2019. Implementation of marketing concept and organizational culture in SMEs in Al Buraimi–Oman.Benchmarking: An International Journal. Hair Jr, J.F., Page, M. and Brunsveld, N., 2019.Essentials of business research methods. Routledge. Sharma, R., Ahuja, V. and Alavi, S., 2018. The future scope of netnography and social network analysis in the field of marketing.Journal of internet commerce,17(1), pp.26-45.