Comparison between Nestle and Unilever with the support of marketing mix

This report evaluates the comparison between Nestle and Unilever by applying the marketing mix framework. It analyzes the different elements of the marketing mix used by both companies and their tactics to achieve their objectives.

MARKETING ESSENTIALS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Comparison between Nestle and Unilever with the support of marketing mix...........................3
Evaluation of different tactics that applies by Unilever to achieve framed objectives................6
PART B...........................................................................................................................................6
Business plan...............................................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is the value and product exchanging process that use by company in order to
promote it’s product or services in the business market. In modern world, most of the companies
uses marketing functions with the support of marketers in order to create value-based product
and services which encourages customer to pay extra for getting high quality product and
services. There is an example of Unilever company which is Swiss multinational food and drink
processing company. It operates in multiple countries and offers product to customer across the
world. This report will evaluate comparison between Nestle and Unilever by applying marketing
mix framework. To achieve marketing goal of the business will create marketing plan for the
Unilever in this report.
PART A
Comparison between Nestle and Unilever with the support of marketing mix
Marketing Mix is the marketing tool because it comprises seven p’s such as product,
place, price, promotion, process, physical evidence and people (Jayde, 2018). This marketing
tool uses by company to achieve all objective in efficient manner. With this marketing tool, lots
of companies demonstrates perceived values of products in front of customer which encourages
them to buy products. Marketing mix is used by Unilever and Nestle in order to demonstrates
success of company in different terms.
7P’s marketing
elements Unilever Nestle
Product Product mix strategy has
followed by Unilever plc in
promoting demand of the
customers in the company. It
categorizes it’s product portfolio
into 4 categories i.e. food,
refreshment, personal, homecare
Nestle is famous as world’s
largest food company because it
has more than 8000 brands along
with wide features of products
around market as compared other
brands like Unilever. There is a
reason such as it has implemented

and water purifier. It has more
than 400 brands in it’s product
portfolio which demonstrate
strong strength of the brand in
it’s retail sector. In each
category of product, it has
generated high turnover such as
in homecare product category,
Thus, with this strategy
company has differentiated it’s
product portfolio from other
brands i.e. Nestle in the business
market.
product mix strategy in order to
differentiate products such as
dairy products, chocolates,
beverages, instant foods and
others and each product category
posses’ wide features for the
customer. It will be quite simpler
to say that Nestle use product
strategy more effectively as
compared Unilever.
Price
To gain competitive advantage
has followed competitive pricing
strategy by Unilever as resulted
it has achieved success on this
strategy. Thus, this strategy has
proved successful for the
Unilever.
Nestle uses various pricing
strategy over different product
category in order to gain high
profit margin. For example, it has
followed skimming pricing
strategy so that no customer
switch the brand due to hike price.
Competitive pricing strategy has
adopted by Nestle for generating
high revenue on chocolate
products.
Place Distribution strategy has used by
Unilever that supports to expand
business in multiple countries.
For example, in modern world,
Unilever runs it’ business around
190 countries by the support of
it’s stores. Due to high presence
As same strategy has
implemented by Nestle as well to
improve presence of it’s physical
stores in FMCG market across the
world. With the support of
product and place strategy it has
gained good brand image in

of it’s product has achieved
competitive advantage by
Unilever across the world.
different countries in respect of
products.
Promotion
It has used various promotional
and advertising strategy such as
celebrity endorsement, hoarding
digital campaign, marketing
campaign and others, as resulted
it has become one of the biggest
FMCG company in the global
market.
It has used mix promotional
strategy to promote it’s brand
image and products around the
world. It can see it has famed for
multiple products such as Maggie
that affiliated with 2 min snacks
that can be easily prepared by
mothers (Lotfifard and Borojerdi,
2018). It uses both media online
and offline like Unilever to aware
customers about its product and
services.
Process
B2C and B2B both business
model follows by Unilever to
sell it’s product to different
stakeholders. B2C model
denotes selling products directly
to the customer while B2B
model denotes selling product to
the customer by involving third
party. Both type models support
company to generate high
turnover in the FMCG market
(Suganthi, 2016).
Nestle also follows both business
model like Unilever plc to sell it’s
wide products among customers.
People It always focuses on it’s staff
and conducts training session in
order to improve their working
skills. With this strategy
It mainly concentrate on
customer’s needs and demands so
that can give values to them by
offering desirable products with

company enable to retain it’s
employees for long time in the
company.
good quality.
Physical Evidence
It mainly focusses on product
appearance because it is the
major factor of customer
attraction. With this strategy
company attracts wide number
of customers towards company
for buying perspective.
Nestle also concentrate on
physical appearance of product
and infrastructure of the company
so that customers like to buy
product and services from the
physical stores.
Evaluation of different tactics that applies by Unilever to achieve framed objectives
Based on the above discussion can be analysed that Unilever has achieved number of
objectives with support of marketing tool. For example, with the product mix strategy it has
achieved 5th position due to high turnover (Thabit and Raewf, 2018). it has developed prestige
division strategy wherein retails premium personal care products and premium ice-cream to the
customer that supports to generate high profit margin on each product. This strategy has
generated high revenue on its product in the FMCG market. Promotion mix strategy has
supported to influence brand image across the world. While place marketing mix strategy
supported to achieve business expansion objectives. Thus, all elements of marketing mix helped
company to gain all projected objectives within timeframe.
PART B
Business plan
EXECUTIVE SUMMARY
There are a lot of decisions which businesses have to take so that there is going to be a better
functioning. The organization must have the right knowledge and skills to be able to make such
decisions for a long run. The competition in the market is also increasing because of which there

has to be a change in the strategy as well so that there is going to be a better functioning.
OBJECTIVES
 There is going to be an increase in the profit margins by 50% by the end of 2024.
 By the end of 2026 there is going to be an increase in the sales by 60%.
 By the end of 2024 there is going to be an increase by 50% of the market share which the
company can have.
 By the end of 2025 the company is going to have a good objectives and better strategies
for the company to have.
Marketing Mix People
There is a transparency which the company provide the employees and customers so that there is
going to be a better loyalty and trust between the two and the organization will be able to operate
effectively. Price
To increase the market share and capture of customer base the organization uses skimming
pricing strategy for them so that they can provide the best products at lower price (Duffett,
2017). Products
With the help of the right technology the organization is being able to maintain the services and
products which is going to make the satisfaction and loyal of the customers increase. Promotions
The company has a good communication with the customers by direct mails, offers, discounts
which are provided to the customers and updated to the customers effectively. Process
The company focuses on the satisfaction level of the customers by getting in the right changes
which are required by the organization so that there is going to be a great competitive advantage
for a long run. Physical Evidence
The working environment for the employees is very good because of which the employees give
in their best so that there is going to be a brand image which would be present. Place

Online platform is really helping the businesses in the market grow which is a great factor for the
company and the products improve automatically if the employees are satisfied (Wirtz and
Lovelock, 2016).
Marketing Strategy Segmentation
There are a lot of strategies which are present in the market and from them the organization must
opt for the best strategy for them so that they can operate effectively in the market for a long run.
Informative technology is having a great influence in Unilever currently and the company is
trying to make the customers have better experience.
 Geographical segmentation- The Company is going to work on Culture, population
density, etc so that the changes are according to it and the company can benefit from it
(Lu, Poon and Weng, 2018). Demographic segmentation- Age, Gender, mental status, etc is going to be focused upon
by Unilever to be able to operate effectively. Behavioural segmentation- The focus is on the satisfaction level of the customers and
employees of the organization so that there is going to be better productivity in the
organization. Targeting
The company is going to target the customers who are going to be technological friendly so that
they can gain the trust and loyalty of them. The society is shifting to the technological services
which are why Unilever is adapting to this change so that they can make the customers have the
best of services. Positioning
The company will have to use online methods to promote their products and services which is
going to make the profitability of the organization increase so that the company will be able to
operate effectively.
PEST Political Factors
Due to Brexit the organization has applied a lot of employee policies so that there is going to be
a good functioning and operations which are taking place. There is a well stable political power
in UK which is helping the organization be able to maintain their productivity and portfolio in

the market effectively. Economic Factors
The GDP of UK is improving which is why the pricing of Unilever can be improved accordingly
which going to be very helpful for a longer is run. The unemployment rate is improving in the
country which can be a great advantage for the profitability of the organization for a better
performance level in the market (Omar, 2017). Social Factors
The culture of the customers has to be considered by the organization so that there is going to be
a better demand satisfaction of them which is going to help the company be able to have loyal
customers. Unilever is having high profitability for themselves which has to be well maintained
and understanding the customers is the advantage which the company has in the market. Technological Factors
There are a lot of technological changes which are coming in Unilever which is good for higher
profitability and improvement. Innovation and inventions in Unilever are easily taking place
which is a great factor for the company and in the market the organization will be able to develop
them effectively.
SWOT Strengths
Unilever has a good experience in the market which is why the knowledge is high which can be
very helpful for a long run. The organization has been able to select the right measures and
strategies for themselves so that the organization can continuously get competitive advantage in
the market. Weaknesses
The company is not being able to maintain their employee turnover which is not good for the
productivity for a long run (Waite and Pérez-Vega, 2018). The company has lost a lot of skilled
and knowledge employees which is not going to help the organization be able to achieve their
objectives and goals on time. Opportunities
There have to be a lot of improvements which the businesses have to do so that Unilever can
have more opportunities for a better competitive advantage. Technology is makes the companies
have a good functioning and the organization will be able to achieve their objectives and goals

faster with a well maintained portfolio as well. Threats
The competition in the market is high which a great threat for large organizations is like Unilever
because they lose their market share therefore the companies will have to select the right
measures and strategies for them to be able to operate effectively.
Finance
Basis Amount
Technology €5,000
Labour €4,000
Components €3,400
Total €12,400
Sourcing Finance
The company is going to use Capital loans for changes which are coming in the organization so
that there are going to be a good growth of the organization in the market (Nieminen, 2017). The
decisions have to be appropriate so that the company can have a stable economic factor in the
market and for a longer run in the bazaar.
Monitoring and Controlling
Improvements in the products and services are present in Unilever and they are even monitoring
the changes in the company as well so that they can maintain their productivity in the market.
The organization used benchmarking methods to monitor the employees who get in the changes
in the company so that the customers are having a better satisfaction level with Unilever. The
competition in the market is increasing therefore these measures have to be taken effectively.
CONCLUSION
The brief study has summarized role of marketing mix in different companies like
Unilever and Nestle which have practiced it’s elements in order to gain projected goals and
differentiated band image in the business market. Marketing plan included organization’s
objective, marketing goals, situational analysis, tactics, implementation and monitoring and
controlling which have used for Unilever and it has achieved all objectives within timeframe etc.
has been concluded in this report. The organization will have to change their strategies and

measures for making the company operate effectively in the market. The competition in the
market is increasing and to maintain the market share it is very essential for the organization to
be able to have better decisions for themselves to have a longer functioning for themselves.

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