This document discusses the marketing strategy used by Unilever, a multinational company, to promote its goods and services. It includes a PESTLE analysis, SWOT analysis, analysis of competitive advantage, and current market strategies. The document also covers market segmentation, targeting, and positioning.
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MARKETING STRATEGY 1
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EXECUTIVE SUMMARY Marketing is the important tool which used by business to develop and promote the goods and services of the company. It used to develop products by analysing customer needs and desires. In the context of Unilever which is an international organisation which renders its services in the global market. It uses marketing mix to develop effective market offerings and accomplish business success. Different marketing strategies used are 7P's of marketing to promote the goods and services to the target customers. 2
Table of Contents EXECUTIVE SUMMARY.............................................................................................................2 INTRODUCTION...........................................................................................................................4 PART 1............................................................................................................................................4 PESTLE Analysis on Unilever...............................................................................................4 SWOT analysis on Unilever..................................................................................................6 Analyse and determine competitive advantage of Unilever..................................................8 Determine current market strategies.....................................................................................10 PART 2..........................................................................................................................................11 Determine Market Segmentation Targeting & Positioning (STP).......................................11 Recommended objectives and goals for the choosing organisation (SMART)..................12 Recommend marketing strategies, based on the application of the marketing mix for Unilever ..............................................................................................................................................12 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15 3
INTRODUCTION Marketing is an important activity which deals in promoting and engaging to the target customers. It involves different function to transfer the goods from the manufacturing units to point of sale. Marketing is an important tool which helps to promote and engage to the target customer about the goods and services offered by the organisation. Marketing involves building goods relationship with the supplier, and the stakeholder to develop ethical corporate image in the market place. In the context of the organisation, Unilever which is an international brand dealing consumer durable products. The product ranges of Unilever involves wide ranges of products of tea, detergents, shampoos, food items, cosmetics. It acquires large share of market place with the effective market offerings, this report covers situational analysis on macro and micro environment, analysing competitive advantage and formulating effective market strategies. This report also covers market segmentation, targeting and positioning, and recompensation to improve different marketing strategies (Baker and Hart, eds., 2016). PART 1 PESTLE Analysis on Unilever Unilever is a multinational company with market base of 400 brand names across 190 countries in the world. It is operating as a global company aiming a global purpose. Unilever is prominent when it comes to addressing the external factors or the macro environment factors. PESTLE analysis is a tool used by Unilever which helps to identify the external forces affecting the organization. It is a tool used by managers to understand the macro environment of the business organization. The PESTLE acronym stands for Political factors, Economic factors, Social factors, technological factors, legal factors and Environmental factors. The study revolves around the PESTLE analysis of the Unilever (Chaffey and Smith, 2017). The macro level environment affecting Unilever organization are as follows- POLITICAL FACTORS There are various political factors which have a significant impact on Unilever. Political stability of most of the countries is an opportunity for the organization whereas the political issues in the European union is a threat to the organization. The growth in the free trade relations can be considered as an opportunity for Unilever. 4
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Positive:The legal factors having a positive impact are Stability of countries and free trade relations. Negative:The legal factors having a negative impact on Unilever are the political issues in the European union. ECONOMIC FACTORS The economic scenarios which are the factors affecting the Unileverare- increasing wages in developing countries, this is an opportunity as well as a threat to the organization. The various other opportunities affected by the economic factors are high growth of developing countries and economic stability of developed countries (Chernev, 2020). Positive:The economic factors having a positive impact on Unilever are increasing wages in developing countries, high growth of developing countries and economic stability of developed countries. Negative: The economic factors which have a negative impact on Unilever are increasing wages in developing countries. SOCIAL FACTORS There are various social factors which affect the pestle analysis of Unilever are as follows- The rising health consciousness , the rising environmentalist behaviours and the gradual dismantling of the gender divide are the opportunities for the Unilever. Positive: The social factors having a positive impact on Unilever are rising health consciousness, rising environmentalist behaviours and gradual dismantling of the gender divide (Davis, 2017). Negative: The social factors which have negative impact on Unilever are gender gaps and lower health consciousness. TECHNOLOGICAL FACTORS Technological factors play a major role on the operations of Unilever. There are various impacts of technological trends on the organization. In the case of Unilever, a rise in business automation is an opportunity as well as a threat. The rise in research and development investments is a threat to the organization. The decrease in cost of transportation on the basis of technological efficiency is an opportunity as well as a threat. Positive:The technological factors which have a positive impact on Unilever are rise in business automation and decrease in transportation cost. 5
Negative:The technological factors which have negative impact on the organization are increase in R&D investments along with the rise in automation and decrease in automation cost. LEGAL FACTORS There are various legal factors also which affect the business of Unilever. It is important for the organization to follow the regulations in order to minimise the barriers. There are various legalfactorswhichareanopportunitytoUnileversuchas,Increasingcomplexityof environmental regulations, strengthening international patent laws and strengthening consumer rights laws (Doyle, 2016). Positive: The legal factors which have a positive impact on Unilever are increase in complexity of environmental regulations, strong international patent laws and consumer right laws. Negative– The legal factors which have a negative impact are casualty in international patent laws. ENVIRONMENTAL FACTORS There are various environmental factors which have an impacton the operations of the Unilever. The various environmental factors which are an opportunity to Unilever are rise in businessenvironmentalism,increaseinbusinesseffortsandincreaseincomplexityof environmental programs. Positive:The factors which have a positive impact are rise in business environmentalism, increase in business efforts and increase in complexity of environmental programs. Negative:The factors which have a negative impact are fall in business efforts and decreasing business environmentalism (East and et.al., 2016). SWOT analysis on Unilever Swotanalysisistheprocessofevaluatingthebusinessenvironmentinorderto accomplish effective policies which suits different business events. It becomes important for a business to evaluate the business environment as external forces of the business negatively and positively impacts the performance of the business. SWOT analysis on Unilever is discussed as: Strengths Strengths of a business is determined by the areasbusiness is doing well. The strengths of Unilever are discussed as: Internal management 6
Unilever follows the hierarchical structure which involves top level executives, middle level managers and employees. Top level executives formulates different business policies and long term planning in order to develop and determine business objectives. The middle level managers implements the plans and policies of the top level management and executives it accomplish the business objective. Manager delegates different job roles to the employees and monitors the performances of the employees to achieve organisational objectives (Frost and Strauss, 2016). Strong brand image Unilever has strong brand image in the market place, which helps to accomplish large market share and achieve the profit share gaols of the company. With strong brand image, it helps to connects the large number of the target customer and develop strong consumer perception. Economies to scale Economies to scale is achieved when the business produces goods in the bulk. Unilever promotes manufacturing of goods in large quantity which helps to achieve economies to scale in the production function. Economies to scale reduces the cost of production which contributes to the profitability of the business. Weakness Weaknesses is determined by the grey areas where the business is not doing well. The weaknesses of Unilever are discussed below: Imitable products Unilever offers products which are often similar in the market. It does not come up with new products and services in the market which impacts the sales margin of the company. Customers find the similar products from different competitors which negatively impacts the objectives of business. Dependence on retailer Unilever depends on the retailer for marketing is product and services to the end customers. It becomes very difficult to judge whether the retailer is putting efforts for selling the products of the company. Unilever depends too much other retailers for selling product and services of the company (Gillespie, 2015). Opportunities 7
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Opportunities of the business is determined by external business environment. Business should evaluate these opportunities formulate business plans and policies in order to adopt them in business practices. Opportunities of Unilever are discussed below: Large customer base Due to the global market of Unilever, it acquires large customers base it helps to accomplish sales margin and profit goals to accomplish business objectives. Business enhancement for developing eco friendly products Unilever has concurrently engaged in developing products which are environmentalfriendly in nature. It is the recent advertisement is has brought the ad campaign for developing all the ranges of product which environment friendly in nature. By the end of 2025, it would produce goods which contributes to environment protection (Groucutt and Hopkins, 2015). Threats The Brexit has impacted trades of Unilever in the following way: High taxes of production for raw materials Due Brexit, the rates of raw materials are higher and the tax levied on the raw materials which burden the cost of production and further adds to expenses of the company. Import and export Brexit have negatively impacted the export and import activities of Unilever due to high taxes levied on export and import of the company and the restrictions imposed on the activities of have affected the performance of business. Analyse and determine competitive advantage of Unilever Unique selling proposition is the distinctive offerings in the products and services which attracts customers by attractive market offerings. Unique selling proposition defines that how the product are different from the competitors, when the product is different in the market it attracts customers take services from company. Unilever develop effective market offerings to attract customers to taking the services of company (Hanssens and Pauwels, 2016). Product differentiation Product differentiation is the technique followed by Unilever to differentiate the product andservicesofferedbythecompanyfromitscompetitors.Researchanddevelopment department of Unilever regenerate new product ideas by analysing the needs and demands of the 8
customer and analysing the offerings rendered by the competitors. It helps to develop an effective marketing positioning in the marketplace and competitive advantage. USP helps sales team When products are offered by company are unique and different inthe market, it immediately attracts large customer to purchase and boost the sales of the company. unique selling proposition ion products and services helps to develop an effective market offering in the market place which helps the company to boost the sales margin and profit goals (Kamps and Schetter, 2018). Branding By rendering product with USP it helps the company to achieve brand image in the company. By selling products and services with high quality and features develops a brand image in the market. Unilever is a well known established brand in the market, which is famously known in the internal market for the different products offered by the company. Competitive advantage when promotes goods and services, it focuses on rendering products which are unique when customers compare the products and services with the other other. Unilever designs the products in such way which are unique are unique in terms of prices, features, packages. USP helps to develop effective product development strategies in order to positioning the products in the market. Prices While rendering products in the market, Unilever uses different pricing strategies in order to attracts customers to take services of the company. Unilever uses competitive pricing strategics which defines that how competitors uses different pricing policies for the products. Unilever scrutinise policies framed by the competitors and develops effective pricing strategies. Different other pricing strategies used by Unilever are value based pricing, cost plus pricing, market based pricing (Kingsnorth, 2019). Features In order to develop unique features in the product, Unilever ascertain unique features like eco friendly products to promote environment friendly concern. It helps to develop reputation of the company in the market by taking social responsibility of the company in the market place. 9
Determine current market strategies Unilever uses different marketing strategies in order to promote the goods and services of the company. It develops effective marketing strategics an campaign to engage with the target customers. Different marketing strategies used by Unilever is as follows: Accessible location Unilever open stores at different location in order to access services to the customers at different locations, Unilever maintain the effective relationship with retailer in order to render product to the final prospects which is easily accessible at all retail stores (Kotler, 2016). Promotional tool It might be possible that customer are unable to know the offerings which are been rendered by the company. Unilever uses effective promotional tools in order to promote the market offerings of the company. Unilever uses promotional tools like digital marketing using internet platforms, indoor and outdoor marketing and search engine optimisation. Using these platforms, Unilever promotes the products and services to the final prospects. Technology With the growing technological advancement, it becomes crucial to stay updated in accordance of the current technology. Unilever uses technological advancement tools and equipment straight from the production process. Unilever focus to bridge the gap between technology and human capital and adopts modern technologism in the production process to attainefficiencyin theproductionprocess. It also usesdifferenttechnologieslikeradio frequency identification device in order to track objects from the manufacturing units to the delivery points, it also uses other technologies like artificial intelligence, augmented reality and cloud based technologies in order to stay updated to the current technology (Kumar, 2017). Product features While developing the product the research and development department of Unilever conducts market research and survey by analysing market demand and customer needs. It produces market offerings in accordance to the current market demand which helps to meet the expectations of the customer. It helps to develop market offerings which best suits the customer demand. Online platforms 10
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With growing digital platforms, Unilever uses online platforms in order to render services to the target customer using internet platforms. Unilever have own online site which helps customer to take services like ordering products from the online sites and the delivery agent of the company Unilever will deliver the products to the customers. It helps to engage with target customer to access services of the company from different locations (Moorman and Day, 2016). This marketing strategy used by Unilever helps to engage with the target customers and make profitable relationships. PART 2 Determine Market Segmentation Targeting & Positioning (STP) Unilever uses segmentation, targeting and positioning in order to deliver the value to the target customers. Segmentation, targeting and positioning is the market strategy which is used by Unilever to render to promote the products and services to the final prospects. SEGMENTATION Research and development department of Unilever conduct market survey to analyse the target market of the company. Segmentation helps to define that who actually are the final prospects of the company, those who are interested in purchasing products and services of the company. Segmentation involves dividing the large customer market into small units. Unilever focuses on rendering services to these units. TARGETING This is marketing strategy which involves analysing the needs and wants of the segmented customers. It involves developing the effective marketing offering of the company which best suits the consumer needs and wants. It involves market research to evaluate the current mrake6t trend. This marketing strategy is important as it helps to determine the profit goals and sales margin of the company. Unilever conducts targeting marketing strategy in order to deliver value to customer and accomplish the profit goals (Moorman and et.al., 2019). POSITIONING Positioning is the market strategy which is used by Unilever which used to promote the service the final prospects. Positioning helps to appropriate position the market offerings to the final prospects. The most important task of a company to rightly position the marketing offering of company in the minds of customers. Positioning involves different strategies to promote the 11
foods and services offered in the most effective manner. Positioning is termedby how exactly customer perceives of the product message of the company. Unilever uses different promotional tool to develop an effective marketing message in the minds of the customers. With the helps of positioning it helps to develop effective marketing positioning. Unilever spends huge investment to maintain the brand image in the market. It not only helps to influence the target customer but alsohelpstogainthecompetitiveadvantageinthemarket.Itinvolvesrenderingright information of the marketing message to the customers. Unilever also collects the data and feedback about different customer experience to adopt changes in the marker offering of the company. The company continuously adopts changes in the market offerings in accordance to the current market trends (Morgan and et.al, 2019). Recommended objectives and goals for the choosing organisation (SMART) Unilever should formate business policies by analysing the target market needs and wants, it would helps to accomplish the customer satisfaction and contribute to increased sales and profit goals. To accomplish business objectives it would require 5 months which would increase the profit with 25%. Recommend marketing strategies, based on the application of the marketing mix for Unilever Marketing mix is determined by rendering effective marketing plan for the company to achieve business objectives. Effectivemarketing plan involvesdetermining the marketing message of the company which the company wants to convey to the target customers. Business implement strategic decisions and plan to formulate effective marketing mix. Unilever follows 7P's of marketing mix these are product, place, promotion, price, physical unit, people, process. The marketing mix used by Unilever is as follows: Product Product is something which satisfies the need of the consumers. Product refers to what an organization sells to its customers. Product is both tangible (something which can be touched, seen or felt) as well as intangible ( for example services). Unilever renders products to the customers which products ranges in consumer durable goods like detergents, cosmetics, bathing bars, edible items, and household items. The intangible products offered by Unilever involves: Utility benefits – A product has a feature of utility benefit. It must prove itself beneficial for the customer. Unilever fulfils the utility benefits by rendering products which satisfies the consumer needs and wants (Mothersbaugh, Hawkin and Kleiser, 2019). 12
Place The product should be accessible to its consumers. Place can be referred to any thing where the product is available. The availability of right product at the right time and at the right place. Unilever have different physical outlets and online stores so that customers can access the services of the company from anywhere (Park, 2020). Price The product must be a good value for money to the consumers. Price must give satisfaction to its consumers in exchange for the price they are offering. Unilever use different pricing policies like cost based pricing which involves adding the cost of products plus the market price of the product it helps to cover the cost incurred in the production. Other pricing policies are market based pricing, competitive based pricing and value based pricing. Promotion The communication tools used by an organization to communicate the product in the market is termed as promotion. Unilever uses promotion tools like advertising, PR, Sales promotion, Personal Selling and social media. Features of promotion: Communication- Communication is an important feature of promotion. Promotion is done with the purpose of communicating the information about the product and services to the customers. Convincing – Promotionis done with the purpose of convincing the buyers by communicating the information to the consumers. People The workforce of the organization is the most important component of an organization. It is very important for an organization to have the right people at the right time (Prime and Usunier, 2015). Features of people : Involved – The right peoplemust show involvement in thecourse of action of the organization. Skills -The people must acquire the appropriate skills which are required by the company. The skills of the people employed, help the company to achieve the goals and target efficiently. 13
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Processes It refers to the stages involved in delivery of a product to the consumers.An efficient process saves timeand money. Unilever uses the marketing mix strategies in a way to improve the process of the production of goods and services (Wood, 2016). Features of Processes: Enhance service- After completion of each stage in the process , the quality of the service enhances. The quality of the tasks performed gets better with each stage of completion. Objectives- Process helps in completion of the objectives. After each stage the objective of the prior stage is already achieved and the next objective is determined. Physical Evidence The observations of a customer related to the business can be termed as physical evidence. Physical Evidence includes physical environment, packaging. Unilever uses physical evidence in a way to effectively render services of the company (Zeithaml, Bitner and Gremler, 2018). Features of Physical Evidence : Ambience- The ambience of a place is considered by the atmosphere of the place. The factors which affect the ambience are smell, noise, temperature, colour and sound. Corporate branding – The corporate branding deals with the image or the goodwill of the company in the market. CONCLUSION Marketing is a concept which helps companies to withstand the competition. One of the evolutions of the concept is the fundamental changes in the marketing mix. Marketing is the process to building relationship with the target customer in order to earn profit and maximise sales margin. It helps to develop and promote goods and services of the company. 14
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