This report discusses the concept of marketing, the role of marketing function, and how marketing interacts with other departments. It also includes a marketing plan and media plan for Unilever Plc. The report covers market research, situational analysis, SWOT analysis, PESTLE analysis, and recommendations for the company.
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Unit 2 Marketing Process & Planning
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TABLE OF CONTENT INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 PART-1............................................................................................................................................3 Concept of marketing in 21st century.........................................................................................3 Role of marketing function with examples.................................................................................3 Analysis of how marketing function works and interacts with other departments.....................4 Marketing mix..............................................................................................................................5 Evaluation of marketing mix in meeting overall business objectives..........................................6 Recommendations........................................................................................................................6 PART 2............................................................................................................................................7 P4 Developing a marketing plan that includes key elements of marketing planning for an organization to achieve marketing objectives:.............................................................................7 P5 Producing a media plan that includes recommendations and rationale for selected media activities that meet budgetary requirements and objectives of a marketing campaign brief:....11 CONCLUSION..............................................................................................................................13 REFERENCES................................................................................................................................1
INTRODUCTION Marketing can be defined as activities carried out by an organization in order to promote the products and services offered by them in the market. This helps the organization in enhancing the customer engagement and help the company in increasing their profitability (Camarero, and et.al 2019). The present report is based on the study of Unilever Plc, which is a supermarket chain headquartered in London, United Kingdom. The current report aims to discuss about the concept of marketing and the role of marketing function in the company. It also discusses about how their marketing is linked with other departments. The current study is inclusive of a marketing plan, a competitor analysis of the Unilever plc in order to determine the brand positioning of Unilever in the market. MAIN BODY PART-1 Concept of marketing in 21stcentury The concept of marketing can be explained as a set of activities used by different institutions that helps them in developing, communicating, offering and exchanging products and services to the customers that have value for them. This helps an organization in enhancing the profitability of a company by providing the company with the opportunity to promote the products and services in the market. There are different types of marketing used by the companies which includes digital marketing, social media marketing, traditional marketing tools such as providing advertisements using newspapers, televisions, etc. Role of marketing function with examples The marketing function plays an essential role in the success of a business enterprise as it helpstheminincreasingthecustomerengagementandhelpstheminimprovingtheir profitability in the market. The marketing is used by the Unilever plc for a variety of reasons which have been explained below: Helps in finding distribution channels It has been determined that the marketing function helps the Unilever Plc in finding distribution channels for their company. This helps them in finding ways from where the customers can approach the organization for the purpose of purchasing its products and services in the market (Feng, Huang, and Avgerinos, 2018). Therefore, it can be said that marketing helps
in enhancing the customer base of the Unilever Plc by helping them promote and avail its products to the customers in the market. Defines the brand The marketing function is used by the Unilever Plc as it helps the company in presenting a brand image among the customers in the market. This aids the organization in attracting a wide range of customers towards the company and help them in improving their profitability in the market. Conducting market research One of the major function of the marketing department in Unilever Plc is to conduct a market research. It is important for a company to carry out market research in order to determine the needs, wants and preferences of the customers in the market so that the company can come up with the products and services that helps in company in satisfying the wants of the customers. Analysis of how marketing function works and interacts with other departments In order to increase the efficiency and effectiveness of the marketing plan of accompany, it is important for the enterprise to work collaboratively with the other departments of the organization. The analysis of how marketing works and interacts with the other departments of the Unilever Plc, has been explained below: Marketing and operations/productions It has been determined that the marketing department of the Unilever Plc works closely with the productions and operations department of the company (Le Meunier-Fitzhugh, and Massey, 2019). This is because, the marketing department of the company has needs to know about the products that have been offered by the company in the market and the time it takes to be delivered to the customers in order to promote the same in the market. Marketing and HRM Similarly, the marketing department also works with the human resource department of a company in order to ensure whether the company has been recruiting and hiring the workforce that have appropriate skillset or not. Also, the marketing function informs the HRM department about their needs in order to achieve the organizational objectives. Marketing and finance In order to run marketing campaigns and other sorts of marketing activities via online and offline modes of advertisements, it is necessary for a company to have sufficient amount of funds
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with them. Therefore, the marketing function of the Unilever works together with the finance department of the company in order to determine the available funds and resources associated with the marketing activities of the company. Marketing mix Product The Unilever Plc. deals in 4 major categories in the market across the globe. These include personal care, food, refreshment, home care and water purifier (Mir-Bernal, and Sadaba, Patsiaouras, 2019). The Unilever offers the products of around 400 brands in the market and has been effectively increasing its profitability by offering a range of products and services to the customers in the market. Price The Unilever Plc has been using the penetration pricing policy in the market in which the company aims to offers the products with premium quality at affordable prices within the market. Place It is noted that the Unilever Plc has been efficiently carrying out its business operations in more than 190 countries in the market. In order to lower down their costs, the company makes use of global manufacturing and distributes their offerings widely all over the world. This helps the company in decreasing their cost associated with the sourcing of the products for the purpose of offering them in the market. Promotion The Unilever Plc. makes use of both the traditional and modern channels of marketing in order to promote its goods and services in the market. The Unilever Plc. makes use of social media campaigns, uses social media, television, newspaper, billboards, posters, radios in order to promote the offerings of the brand. People Around 170000 employees have been hired by the Unilever Plc across the world. The company makes good use of the distributors, retailers and media personnel for the purpose of availing the products to the consumers. Process
The processes used by the company includes business partnering and MO buying, central operations, IT integration and channel development. Physical evidence The Unilever Plc. offers its products using retail stores, website, online platforms of distribution in the market. The brand name of the company and its logo also helps the company in creating a brand image in the minds of the customers in the market. Evaluation of marketing mix in meeting overall business objectives The 7 p’s of marketing used by the Unilever Plc helps them in increasing their profitability and enhancing their customer base in the market. Since, the Unilever plc. offers a wide range of products in the markets, there are a huge number of customers that are attracted towards the brand and makes their necessary purchase from the Unilever Plc only (Thomas, 2020). This brand has been dealing and offering its products in about 190 countries which also proves to be beneficial for the company as it helps the company in extending its reach in the market. Moreover, the goods offered by the brand are priced at affordable rates which makes it easier for different types of customers to get in touch and engage with the Unilever Plc. Recommendations Even though, the Unilever Plc. is one of the leading, highly profitable and reputed organization, there is still some scope for improvement in the business operations of the brand. The recommendations in order to improve the working of the company in the market are as follows: The Unilever Plc should opt for affiliate marketing in order to increase the sales and profitability of the company. The affiliate marketing can be described as a model of advertising where an organization hires third party publishers for the purpose increasing the traffic on the website of the company and help the company in increasing its profitability and revenue in the market. Another thing that can help the company in increasing its reach in the market is expanding the business operations to countries where the company has not been operating currently. This will help the company in capturing new markets and attract a wide range of customers towards the product offerings of the brand.
PART 2 P4Developing a marketing plan that includes key elements of marketing planning for an organization to achieve marketing objectives: Marketing plan is document containing key elements for product promotion and positioning planning, Unilever is one of those organizations which perform planning considering key elements that cover important area of the market (Fotiadis, Mombeuil and Valek, 2018). These may include: SMART Objectives: ï‚·Specific:Unilever is expecting to increase traffic and sales by 50% promoting luxury food products and focusing to add new marketing strategies to achieve this. ï‚·Measurable:Unilever is planning to increase traffic and sales by 50% which can be measured with change in sales and product demand in the market. ï‚·Attainable:Unilever is expecting 50% increase in sales and traffic but this will be achieved in two quarter which means 25% and remaining 25%. ï‚·Relevant:The goal to make new luxury food products successful will allow Unilever to experience reputation growth and brand image in the market. ï‚·Time bounded:Unilever want to achieve marketing objective increasing 50% traffic and sales will be achieved within a year (Westwood, 2022). Market research: Current market trend:After COVID-19 impact, there is trend of sustainable product range, consumers are demanding sustainable measure in almost every product range. Health conscious and diet driven consumer are demanding new range of luxury food item, this may include FMG goods like diet biscuit, ready-made health drink, sugar free sweet drinks and nutritional black water. Unilever need to provide these products to catch current market trend and demand of consumer. Consumer need and behaviour:Consumer behaviour and need for products have changed after COVID-19 impact, they are demanding new range of food products which health them to gain health measure and requirements (Wirth, 2018). However, Unilever already dealing in healthy product range but to fulfil consumer needs, Unilever might consider new range of luxury food products allowing company ensure needs of consumer are fulfilled and company achieve objective of increasing 50% sales and traffic.
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Situational analysis: SWOT analysis: Strength:Strength of Unilever lies in brand image and reputation they carry in the market, Unilever is one of the largest consumer goods and super market chain dealing in almost 190 nations with wide range of products (Benzaghta and et.al., 2021). Unilever have super market store in almost every nation allowing them to cover industry. Weakness:Weakness of Unilever lies in poor supply chain management, this company face drawback and decrease in sales because of poor supply chain. Unilever is well-known as supermarket chain but this company do not have strong chain of supply impacting their sales and revenue in each nation. Opportunity:Unilever have opportunity to capture small scale retail businesses, this company only provide recognition to brands and reputed company. However, if they allow small retailer and manufacture to use Unilever as platform then this company can boost their sales and achieve goal of marketing depending on brand image. Threat:Unilever is facing tough competition in retail industry, giants like Tesco, Sainsbury, Morrison and P&G are providing neck to neck competition to Unilever and impacting their sales each quarter. Unilever will going to face threat of substitute when they will plan to launch luxury range of new food products (Teoli, Sanvictores and An, 2019). PESTLE analysis: Political factor:This is one of the most common but important factor impact firm's performance, after Brexit, government took decision to restrict trade relationship with EU countries impacting international dealing of Unilever (Christodoulou and Cullinane, 2019). COVID-19 measures by government of UK do not favour growth of market giant like Unilever in the process. Economical factor:Economy of the UK was impacted after COVID-19, there was high inflation rate increasing price of raw material making is difficult for Unilever to continue existing manufacturing of products, economic instability and slow recovery will impact new product launch as well, Unilever is facing challenges in almost every nation. Social factor:Social factor means consumer factor, after COVID-19, consumer behaviour have changed which means consumer are not ready to spend their income on FMCG products. COVID-19 pushed consumer to consider health products which means sustainability is key measure, Unilever need to react by analysing consumer behaviour in the market.
Technological factor:This is another important factor impact firm's performance in the market, Unilever have both software and hardware technological advancement allowing them to grow in the market. However, there is current trend of including AI bases system in the production and other business area which means competitors are ahead of Unilever. Environmental factor:Environment factor impact firm's performance, both consumer and government demand environmental measures. After COVID-19 government of the UK is demanding businesses and industries to take measure over betterment of environment, this may include policy and procedure provided by the government which may include plastic ban, Unilever's product packaging will be impacted. Legal factor:This is one of the most important factor, this become more important when company deal in different market over different countries (Perera, 2017). Unilever compile their policy with policy and requirement of government, each government have their own policy and procedure which means Unilever have to change their procedure and even strategies according to the requirement of the nation. Porter five force: Rivalry:Competition is one of the most common term in every industry, almost every business organization face competition in the target market. Unilever face compelling from Tesco, Sainsbury, Morrison and P&G, these are already established market giant with continuous growth and stability in the market, these competitors provide neck to neck competition. New entry:New entry means new competition, Unilever face competition from these new entry who have sufficient budget to gain competitive advantage in the market. Unilever is one of the largest consumer goods company but still face critical issue from strategies of new entry, they even impact market positioning of industry leader (Perera, 2020). Power of supplier:Supplier have certain powers in the market, Unilever depend on certain types of supplier over raw material, this company have more than 400 brands which means number and power of supplier is faced by the firm. These supplier do not accept negotiating offer provided by the firm. Power of consumer:Consumer carry certain type of power in the market but mostly bargaining power is most critical, Unilever face competition when consumer considers other brands over Unilever because this company do not accept bargaining request of consumer, other brands offer better deal allowing consumer to consider them.
Threat of substitute:This is most common type of issue faced by almost every company, new products are copied by either new entry or already establish market giant. Competition arrive when same product cover whole industry and price war reach peak level in the market, Unilever do not reduce their price for brand image keeping competitor ahead. STP (Segmentation, Targeting and Positioning): Segmentation:Unilever is planning to introduce new luxury range of food products including sustainable foods with sustainable packaging, this company need to create different segment. For example; demographic segment may include age, gender, education and other, this new product range is luxury which means age group will be above 25 years old. There are sub segments also, these are: ï‚·Educational level:Consumer with high educational level will understand the benefit of considering new luxury range of food products which are sustainable. Targeting:Unilever need to target consumer as per the segmentation criteria, this is new luxury range of product which means consumer might fall in elite segment. However, Unilever have to create sub segment of targeting, these are: ï‚·Social class:Consumer with wealth and spending capacity will be targeted during this campaign allowing Unilever to keep their luxury tag on products. Positioning:Unilever need to position themselves in the market, this is challenging task, company need to introduce new product, this new product might went into major modification as per the consumer demand and condition of the market, there are sub segments under positioning, these are: ï‚·Innovative product:This will allow Unilever to position themselves in the market, innovating the existing product is key to capture market. Extended marketing mix: Product mix: This is one of the most important area in the marketing where consumer demand features and product specification, Unilever need to introduce those products which is new to the market. Luxury range of food product means Unilever need to add certain feature, specification and new ingredient to develop product (IÅ¡oraitÄ—, 2016). Price mix: Price of every product define marketing reliability of firm, if price is according to the spending capacity of consumer then company might enjoy continuous growth. Unilever need to
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set price accordingly, this company is introducing new product ranging luxury and elite consumer which means pricing will be high impacting marketing. Place mix: This is another important area, company need to have both physical and online appearance of their product impacting marketing of the company. Unilever need to define place mix to bring betterment in their marketing process, luxury range of product should be available at both area including physical store and online platform. Promotion mix: Promotion simply define as marketing, company perform promotion to ensure growth is maintained. Unilever need to consider both print and social media platform to ensure promotion is continued in the process, social media promotion may include platforms like Instagram, Facebook and Twitter, company need to design promotional campaign accordingly. Marketing budget: Marketing cost Market research$1600 Social media platform selection$100 Marketing campaign for each media$4000 Key word research$5000 Influencer marketing$1000 Resource allocation$2000 Print media marketing$10000 Paper and template marketing$6000 Other$1000 Total marketing expenses$30700 P5Producing a media plan that includes recommendations and rationale for selected media activities that meet budgetary requirements and objectives of a marketing campaign brief:
Return On Marketing Investment (ROMI) & Customer Lifetime Value (CLV): ROMI: Every investment demand return, firm who invest in the company and marketing process demand return with higher value. It is very clear that marketing is key significant process in the firm allowing company to promote their brand and product, however investing in marketing depend on type of product company develop. Unilever is focusing on luxury range of food productsallowingfirmto sustainableproductin theirproduct line,returnon marketing investment can be defined in two terms: 50% increase in sales: ROMI can be seen when Unilever will enjoy 50% increase in sales after completing the marketing strategies crafted for luxury range of food products (Jönsson and Zahn, 2018). CLV: Customer lifetime value is procedure to measure loyalty of consumer towards brand and how they react to the product provided by the company. Every consumer is valuable for the firm but who is worth is more important to know, it is very clear that Unilever enjoy value and brand reputation in the market as their consumer are loyal and valuable to them. However, it is important to create a relationship between brand and consumer, Unilever have opportunity to capture market with new luxury range food products. Media budget: Media budget: Instagram$5000 Facebook$3000 Twitter$500 YouTube$1000 Total$9500 Recommendation for integrated multi media activities: More budget:Budget play vital role when it comes to business management and marketing process,itisveryclearthatbudgetplayvitalroleinmarketingprocess.Itishighly recommended including budget to ensure marketing process smoothly completed, Unilever need
to have budget to ensure their new product become success in the market. Budget allow company to cover important area of the marketing. However. Other area and element does matter when it comes to marketing, company need to have effective and most relevant keywords. Offline and online marketing: Instagram:This is one of the best online marketing platform allow company to target almost every segmentation, Instagram have power to influence audience through marketing process. Company need to have best marketing campaign to manage their marketing on Instagram and enjoy continuous growth. Print media:Poster, Template and other means of print media will allow company to promote their product and service and help company to ensure continuous growth and stability. However, online media is much more stable and powerful platform for marketing allowing firm to become effective in the marketing process, print media is effective tool. CONCLUSION From the above report, it can be concluded that marketing plays an essential role in the overall success of an organization in the market. The current report includes a marketing plans that presents how luxurious product range can be introduced in the market by the Unilever Plc. in the market. The current study also discusses about the marketing mix of the company and how it has been found useful for the company in increasing the customer engagement, improving the brand positioning and help the company in improving their revenue and profit margin. Also, the present report states the overview of the how the marketing department can be used by an enterprise along with other department in the enterprise for the purpose of achieving the organizational goals.
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