Success Strategies For International Marketing - Unilever Limited

This report is based on Unilever limited, an industry operating in the FMCG at international level. This report identifies the marketing strategies that are used by the Unilever and this report will analyse the macro environmental factors affecting the marketing of products and goods in the global and international market.

RUNNING HEAD: Success Strategies For International Marketing
unilever limited
Success Strategies For International Marketing
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Success Strategies For International Marketing
Executive Summary
This report is based on Unilever limited, an industry operating in the FMCG at international
level. This report identifies the marketing strategies that are used by the Unilever and this
report will analyse the macro environmental factors affecting the marketing of products and
goods in the global and international market. This report will do PESTEL analysis of the
external environment of Unilever limited. This report will critically analyse the product life
cycle theory of Unilever limited and effect of the international marketing of the product with
the identification of the benefits and challenges of the internationalisation process of the
product and goods in the international market. This report will discuss the trends and
development directions used by the Unilever to operate in the global market and strategies of
Unilever that help it to make entry in the Asia-Pacific market of the world that is facing the
new emergence of the market internationalisation of the products.
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Contents
Task 1 Unilever: An Over View................................................................................................3
PESTEL analysis....................................................................................................................4
Difference between domestic and international marketing....................................................7
Task 2 Contribute to international marketing............................................................................7
Product life cycle theory of internationalisation........................................................................8
Introduction stage...................................................................................................................8
Growth stage...........................................................................................................................8
Maturity stage.........................................................................................................................9
Saturation................................................................................................................................9
Decline....................................................................................................................................9
Benefits and challenges at entering the international market.....................................................9
Direct exporting....................................................................................................................10
Joint venture.........................................................................................................................10
Licensing and franchising.....................................................................................................10
Task 3 International marketing trends......................................................................................10
International customer engagement......................................................................................10
International stakeholder management.................................................................................11
Task 4 Market internationalisation in Asia-Pacific countries..................................................11
Collaboration to shape the future.........................................................................................11
Changes in the production....................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
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Task 1 Unilever: An Over View
UNILEVER is a Fast Moving Consumer Goods company dealing the consumer operations as
global level. FMCG industry face rapid and effective changes and particularly deal with the
introduction of the products that satisfy the consumer needs and give profitable return to the
industry. FMCG Company continuously focus the research and development of the new
trends to connect the international trends and customers because to enter the international
market scenario perfect marketing information about the customer demand, need and market
culture is required.
Unilever is a dual listed public company founded 2nd September 1929 as British-Dutch
Company by the merger of the Unilever PLC headquartered in the London and Unilever N.V.
that is based out at Rotterdam. Both companies operate the business as a single business and
have a common board of the controlling board of directors (Unilever, 2019). Unilever mainly
operate the service in four divisions those are related to the daily life need and requirement of
consumers as Foods, Home Care products, Beauty and Personal Care and Refreshment.
Unilever is concern about the research and development department and it has established its
R&D department in different countries to understand the market culture and international
trends of the market. In Australia it operates the functions Sydney NSW, Australia. It is
famous and well known multinational company serving more than 190 countries from 1929.
Performances of a multinational company depend on the economic and political factors that
affect the external environment of the industry. To analyse the effect of the external factors
this report will use PESTEL analysis of the environmental factors affecting the business of
the Unilever (unilever, 2019).
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PESTEL analysis
A framework that is used to identify and analyse the factors affecting the marketing
environment of the industry as external factors is PESTEL analysis of macro environmental
factors;
Political factors
Unilever as a multinational serving industry deal the different political factors at the domestic
and at the international market as well. Political stability of the domestic country and other
countries offer endless opportunities for the market researchers to deal the business
operations. Political instability led the challenges and issues to the operative industries.
Unilever have opportunities to establish the fair ad effective trade relations with the others
countries with the strengthening of the domestic marketing. Identification at the global level
increases the brand name and the products values at the domestic level as well. Effects of the
national policies affect the operations of the business, Unilever effectively analyse the
policies of the operating countries to reduce the risk of any challenges in near future (Gupta,
2013).
Economic factors
Economic stability and factors of the developing countries open the door of the business in
the developing countries. Unilever trading in the development countries play tricks to lower
the product price or introduce the cheap, small form that can be easily purchasable for the
rural buyers. Unilever effectively identify the economic factors and their importance in the
development of the countries revenue hence targeting the middle class customer to purchase
the product of the famous brand in reasonable price increase the brand value of the product at
the domestic market and at the international platform (Andrews & Chew, 2017). Unilever
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enlarging the size of industry contribute the increased employment and product
manufacturing those results in the increase of the wages and cost of production to the
industry, hence Unilever focus the domestic and international economic stability with the
playful strategies.
Socio-cultural factors
Social and cultural factor play important role in the multinational companies because
operating on the different countries industries need to deal with the local communities, their
culture and social impact of the factors (Sroufe & Sroufe, 2018). Unilever operating in the
nations face rivalry from P&G that also operate the operations world-wide hence Unilever
play strategies to develop the social and cultural development of the communities in the
under developed and developing countries. Unilever operate its business targeting to raise the
standards of the weaker sections of the society and design its product according the demand
and culture of the particular society this give support to the goodwill of the industry in the
market. Unilever in its corporate social responsibility use the strategies supporting the social
development with the profitable return to the society (Strategy, 2019).
Technological factors
Unilever is serving last 90 years and it had faced many changes in the technologies used by
the industries, hence technology affects the overall scenario of the business in positive and
negative manner. Industry dealing the international prospective use the technology to
promote the brand and plan strategies, technology had made the operations very easy using
technology Unilever can make aware to public about the new products available in the market
(Tocquer, 2017). Various means are introduced by the technology like internet, Tele-vision
and media are very popular means to promote the product, technology keeps changing and it
became challenging to adopt the technologies and apply it in the operation hence Unilever
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with the help of the R&D department use the new technology means to make the marketing
effective and planning strong in the highly competitive market. Advanced technology
increase the sales and gives profitable return, but adopting new technology leads the cost and
expenses on the adaption process (Prajogo, 2016).
Environmental factors
Environmental conditions are affected and affect the operations of industry at macro level,
Unilever operating the manufacturing and distribution of the food items, product related to
the health and hygiene with the product related to personal care of the person, for this
Unilever use nature resources in the manufacturing of its products, hence it need to operate in
manner to protect the environment from any negative impact (Perera, 2017). Hence Unilever
plans its strategies to give something back to the nature. To support the natural protection and
sustainable development it use solar energy to produce its products, and contribute towards
the plantation of trees and preservation of the natural sources to protect the environment and
operating the activities that cause less harm to the environment with its effects. To ensure the
effective nature development Unilever focus to increase the complexity of the environmental
programs and /operate according the natural conditions of the country as well (Pant &
Ramachandran, 2017).
Legal factors
Every country has its own legal rules and regulation related to the trade and operations of the
business within and outside of the country. Unilever is operating world-wide from last 90
years hence it have familiarity with the legal aspects of the trade rules and regulations deeply,
this is very supportive factor for the Unilever. But legal differences sometimes cause barriers
to the trade relations among the countries (Ohmae, 2016). International trade rules are
mandatory to follow and they give unity and stability to the industries to follow the
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international rules related to the trade. International patent and copyright laws are beneficial
to crate the brand value of the product and it sets the high marketing standards for the
industries that are operating in the same aspect. International concept help to understand the
different consumer rights laws and designing the product accordingly (Keenan, 2019).
Difference between domestic and international marketing
Marketing is the concept or process used by the industries to introduce their product or brand
in the market and awaking the consumer about the availability of the product in the market.
International and domestic marketing is very different from each other in many forms.
Unilever operating in the house country not need to expand more money on the promotion
rather than the international market. Researchers need more efforts, skills and expanses to do
marketing at international level. Every country have different environment of politics, society
and other factors hence marketing in international level face many challenges in the
environment and in form of strong competitors (change, 2019).
Task 2 Contribute to international marketing
In the scenario of global market Unilever use effective and attractive marketing strategies that
contribute positively to the overall business of the Unilever and also contributes to the
development of the international marketing standards (Kumar, 2017). The base of the
marketing of Unilever is based on the three major concepts related to the people development
and strengthening of the products, using these strategies Unilever contribute the international
marketing in following manners;
People and community development marketing
Unilever focus the consumer and their satisfaction as the biggest asset and employee’s
satisfaction as its brand value. It has introduced employees leaded as the future leader for the
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development of the product. This strategy of Unilever has made the personal concept to the
local for the organisation.
Brand building marketing
Unilever use independent mean for the local marketing but when it moves to the global level
it applies the brand building results the brand development with the centralized control on the
expertise marketing skills. It focuses the sustainable development as the main aim behind the
marketing that follows a long term vision of the experts (Kumar, 2017).
Product life cycle theory of internationalisation
This theory is suitable for the international trade and global selling of the products. Unilever
is a multinational company that continually focus the development of the new products in the
international market targeting the satisfaction of the buyers, hence Unilever use the product
life cycle theory to do internationalisation of the products (Gupta, 2013).
Introduction stage
Unilever dealing the operations at the global level when planning to sell a new product or
service need to introduce the product. In this stage people are not aware about the product
hence income level in this stage are lower and industry promote the marketing of the product.
Growth stage
In the growth stage product become popular in the market and customers accept the products
and sale of the product start increasing and this stage give profitable returns to the industry
and it result the decrease in the cost of the production of the product (Murphy & Murphy,
2018).
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Maturity stage
At this stage industries focus less focus on the marketing but try to stable the product to fulfil
the customers demand. Situations are favourable for the industry and industry enjoys high
sales and profit in the market but at this stage competitors become more aware and starts
introducing the competitor products trying to attract customers challenging on the basis of its
price and features (Tocquer, 2017).
Saturation
This stage is very serious for the industries, here competitors have successfully introduced
their products and it has become in the growth stage. This decreases the sales of the products
and customers are more attracted towards the competitor’s product, this lead the decrease in
the profit of the industry. Unilever have strong competency with the P&G and P&G tries to
challenge the Unilever (Gupta, 2013).
Decline
At the declination stage product begin facing the decline of the product, this leads the
decrease in the sales and it demand high level of marketing strategies, at this level industries
tries to close the production of the product or tries to introduce changes in the features of the
product that give boost to the market (Chen, 2015).
Benefits and challenges at entering the international market
Few challenges and benefits an industry face while entering the product at global level in the
other countries. Unilever operates worldwide and it ensures the effective strategies to deal
with the challenges and benefits attached to the internationalisation of the product.
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Direct exporting
Unilever directly export the products and goods to the overseas market it befitted the industry
with the fast entry in the other global market increasing the direct sales and profitable return
to the market. With the direct export Unilever enter the marketing with own marketing
strategies setting the challengers for the other domestic producers (Bodie, 2017).
Joint venture
The process that is preferred for the internationalisation of the product is joint venture. Joint
venture allows the industry to share the profits and also it led the control over the local
market of other country. Joint venture benefits the industry to earn profit in the other markets.
Licensing and franchising
Major challenges faced by Unilever in the internationalisation process are related to the
licensing and franchising of the other counties’ market. Sometimes competitors enjoy the
complete market control and restrict the other competitors for entering the market (Beaton-
Wells, 2017).
Task 3 International marketing trends
International customer engagement
Unilever focusing the manufacturing of its products for the benefit of the customer need to
follow the process that effectively makes the customer engaged in the product. Making
customer emotionally attached with the brand is the main challenge and Unilever is already
serving from 90 years hence it have positive market brand useful for its present and near
future to introduce any new product internationalisation at global level (Kumar, 2017).
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International stakeholder management
P&G as the main competitor set high level of competition and risk of the stakeholder
dissatisfaction for Unilever. Hence to deal effectively in the international market Unilever
can focus the stakeholder management and satisfaction as the international marketing trend.
Because happy and satisfied consumer, share-holder and social communities with the workers
help the brand promotion with the mouth marketing and mouth marketing is the cheapest but
most effective tool of marketing that require nothing but gives a lot in return (Shaukat, Qiu,
& Trojanowski, 2016).
Task 4 Market internationalisation in Asia-Pacific countries
Market internationalisation in Asia-Pacific countries is assumed to face the boost and
increase for industries operating the manufacturing of goods and services. This Asia-Pacific
market is a hub of opportunity for Unilever, because of the developing countries it have scope
for the development (Andrews & Chew, 2017).
Collaboration to shape the future
Unilever focuses the collaboration and cooperation of the employees and customers to plan
effective strategies that help to develop the future of the industry in the Asia-Pacific region of
the world. This collaboration of different factors is based on the macro environmental factors
of the market and this can be suitable for the introduction of the product in the new emerging
market.
Changes in the production
To create strong brand value and enter in the Asia-Pacific region Unilever use expatriation in
the product differentiation, it tries to deliver the products according the test and demand of
the market, hence making effective modification and changes in the product quality and test
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made effective scope to enter in the new international market and internationalisation of the
goods and products (Adeoye & Elegunde, 2012).
Conclusion
This report has critically analysed the macro environmental factors that affect marketing
strategies of Unilever limited. To analyse the factors in depth this report has done PESTEL
analysis of various factors that affect the operations of the business, and with the help of
PESTEL analysis this report has identified the marketing strategies and importance of
product life cycle theory of the in industry. This report has identified the current marketing
strategies of Unilever are based on the people and product development that focus the
customer satisfaction as the main aim of manufacturing and introducing any product in the
market.
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References
Adeoye, A. O., & Elegunde, A. F. (2012). Impacts of External Business Environment on.
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perspectives of competition and fairness. Griffith Law Review, 28-64.
Bodie, Z. (2017). Thoughts on the future: Life-cycle investing in theory and practice.
Financial Analysts Journal , 43-48.
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Chen, A. C.-h. (2015). Strategic Standardized Marketing in Asia Pacific Region. Proceedings
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Gupta, A. (2013). Environment & PEST analysis: an approach to the external business
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Keenan, J. K. (2019). Corporate responsibility and the social risk of new mining
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26(4), 752-760.
Kumar, B. M. (2017). Purchasing behaviour for environmentally sustainable products: A
conceptual framework and empirical study. Journal of Retailing and Consumer
Services , 34, 1-9.
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Murphy, P. E., & Murphy, C. E. (2018). Sustainable Living: Unilever. In Progressive
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Shaukat, A., Qiu, Y., & Trojanowski, G. (2016). Board attributes, corporate social
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Sroufe, R. P., & Sroufe, R. P. (2018). "Enterprise Systems–Operational and Strategic
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unilever, b. (2019). Business Integrity. Retrieved September 25, 2019, from
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