The Role of Marketing in Unilever and Nestle: A Comparative Analysis

This report analyzes the role of marketing in Unilever and Nestle, focusing on the 7P's marketing mix strategy and the marketing plan for Unilever's new product segment. It includes a PESTLE analysis, SWOT analysis, and an action plan for implementation.

THE ROLE
OF
MARKETING

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................2
PART 2..............................................................................................................................2
7P’s marketing mix strategy...........................................................................................2
Marketing plan................................................................................................................5
CONCLUSION.................................................................................................................10
REFERENCES................................................................................................................11

INTRODUCTION
Marketing is the process of influencing image of product as well as selling in the
business market. This report will give brief information about 7p’s marketing mix
strategy that is used for Unilever and Nestle. Furthermore, it will give overview of the
marketing plan that will design for the Unilever plc.
PART 2
7P’s marketing mix strategy
It is marketing tool that comprises various beneficial marketing strategies for
different firms and companies. There are seven 7p’s of marketing mix that are
mentioned below in the context of comparison between two companies i.e. Unilever and
Nestle.
7p’s marketing
elements Unilever plc Nestle
Product Unilever has wide product
portfolio that have
categorized into four
categories such as food,
water purifier, homecare,
refreshment and personal
care. Company has followed
product mix strategy that
supports to categories it’s
wide product portfolio into
different products segment
with wide variety. However,
company’s product mix
strategy is quite effective as
It is a multinational food
and beverage company
that has wide product line
i.e. dairy products, instant
food products, coffee and
chocolate. With the wide
product feature Nestle
company also has gained
good revenue on certain
product segments like
coffee, chocolate, Maggie
etc.

compared others like Nestle
because it enables to
establish strong customer
base in the business market
(Hys, 2017). It posses’ more
than 400 brands in the wide
product portfolio through
which it earns 1 billion euro
per annum.
Price
Pricing penetration strategy
has followed by Unilever to
increase purchasing
behavior of customers for
the products at lower cost.
Competitive pricing strategy
often uses by Unilever to
gain competitive advantage
on it’s existing product
segments from the
competitors. While seasonal
pricing strategy implements
marketing manager of
Unilever plc to provoke
customers for buying large
number of products at lower
cost during festivals.
Competitive and skimming
pricing strategies have
followed by Nestle to sell
it’s proposed products
segments into multiple
countries across the world.
With these strategies
company has achieved
competitive advantage
from Unilever in the
business market two and
three times (Shtal and
et.al., 2018).
Place Unilever operates in multiple
countries around the world
that’s why it have
established strong global
presence in the retail sector.
While Nestle also offers it’s
product services
worldwide. It is considered
one of the largest food
company that is measured

Company has various
subsidiaries and physical
stores that are located in
different countries like UK,
US, China, Netherlands etc.
through which company
increases selling revenue of
business in the global
market.
by revenue metrics. It has
multiple convivence stores
and subsidiaries that are
located across the world
and offers it’s different
product segments in the
business market.
Promotion
Promotional mix strategy
follows by company for
influencing awareness in
customers about product
and services and
encourages them to buy it’s
product. For example, video
tutorial, digital media,
internet and traditional
media incudes TV, hoarding
etc. follows by Unilever plc
for the marketing
communication purpose.
Nestle also follows
promotional mix strategy to
sell different product
segments like 2 min
Maggie ads, Cadbury act
etc. that encourages
customers to buy it’s
products and builds good
brand recognition in the
market.
Physical evidence
Company emphasizes on
physical appearance of
stores because it attracts
customers to visit stores and
buy products.
While Nestle focuses on
products presentation
because it believes that
when product packaging
looks attractive then
people will attract and like
to buy it’s products.
People Management of Unilever
conducts training session
Nestle concentrates on
individuals needs and

per quarter month for the
staff in order to improve
their working performance
because company believes
that when individuals gets
training session time to time
that will improve their
number of skills and
customers services as
resulted then they can give
outstanding performance.
So, Unilever has gained
strong global presence by
the support of it’s
employees.
requirements at the
workplace because it
believes that when
individuals have high level
of satisfaction for their job
then they will always to
give best performance at
the workplace.
Process
Unilever has strong
distribution channel around
the world for effectively
delivering different products
segments and services to
the customers within
timeframe. So, large number
of customers are satisfied
from it’s product services
(Verma, 2017).
While Nestle also has
effective supply chain
management which
supports to deliver number
of products to the
customer within time like
Unilever plc.
Marketing plan
Marketing plan is a form of report that demonstrates marketing strategy of the
company for the upcoming years or months. This marketing plan is designed for the
Unilever company because it has plan to introduce new product segment i.e. Lipton
product as health drinks for the users with special diets (Brennan, Canning and

McDowell, 2020). There is a reason to design this marketing plan such as company has
goal to retain environmentally conscious users with the new product segment as
resulted company will enable to make it’s business sustainable. This marketing plan will
also support company to increase revenue of new product segment in the business
market.
SMART Objectives
 Specific: The goal of the business is too specific so it will help marketing
managers and their team to work on right track.
 Measurable: This goal can be measured by marketing manager specifically by
comparing selling revenue of previous year and upcoming year.
 Attainable: This goal is achievable for the Unilever in it’s business market.
 Relevant: Proposed marketing plan keeps proper relevancy with proposed goal
which will help to lead success in the business.
 Time-Bound: This marketing is designed for the 2 years.
These SMART objectives will support marketing managers of the Unilever plc to direct
it’s team in right direction for gaining proposed goal within timeframe.
Marketing Analysis
Pestle analysis
 Political factors: UK’s government has announced that it is going to reduce
interest rate from 19 to 18% that is one of the great opportunities for the all retail
companies like Unilever plc. Now it does not have to pay high interest on loans
which they have taken form the banks. Overall, it will get chance to increase
economical infrastructure of the business in the UK market.
 Economic factors: Brexit have brough various changes in political policies, trade
policy, exchange rate due to this employment rate has increased in UK. It is a
effective opportunity for the company to hire highly skilled suppliers who willing to
work at low wages. Thus, company enable to gain high profit margin on proposed
product segment (McDONALD, 2016).

 Socio-cultural factors: Dynamic factor is one of the major socio-cultural factors
that impacts on organization’s growth. For example, younger generations of UK
are too health conscious as well as highly updated for environmental issues. So,
it is golden opportunity for the Unilever plc because it is already going to launch
new product segment which is properly designed for the health concern people.
 Technological factors: New emerging technology like digital marketing software
applications etc. are technological factors. By this factor, company can easily
increase awareness in users about it’s new product segment. In addition, UK’s
public are highly updated for the e-commerce market. Overall company can
retain health concern people by offering this new product segment through digital
marketing techniques.
 Legal factors: Health & safety, discrimination act etc. are legal factors. Unilever’s
new product segment is properly safe and gives positive impact on user’s health.
In addition, it operates it’s business in multiple countries across the world so, it
has implemented anti-discrimination policy in the business to maintain wellbeing
of diverse workforce in the workplace. With this factor company will get more
advantage on it’s business.
 Environmental factors: UK’s government has imposed rule of producing
environmentally friendly products for all companies in order to reduce
environmental crisis rates. As Unilever is going to launch new product segment
that is environmentally friendly products. Fortunately, UK’s government will
promote Unilever’s this new product segment. Thus, company will build loyal
brand image in the consumer’s mind as well as in market.
Swot Analysis
 Strengths: The major strength of the Unilever’s proposed product segment is that
it includes all Lipton products such as healthy drinks with special diets through
which company can build loyal consumer base of environmental and health-
concern people.
 Weaknesses: The new product segment is bit expensive as compared general
products. But UK’s people disposable income is increasing from past few years

because UK’s government promotes SMEs businesses in UK. Thus, company
can easily sell it’s products at different prices (De Villiers, Tipgomut and Franklin,
2020).
 Opportunity: People has become highly concerned for health as well as
environment so they demand for such product which gives positive impact on
their health and does not harm environment. So, proposed product segment will
help company to increase demands in consumers. Digital marketing application
will influence product selling of employees in the business market.
 Threats: Existing competitors i.e. Nestle etc. are the major threat for the Unilever
plc currently.
Situation analysis
STP model
 Market segmentation: Unilever plc uses market segmentation strategy to target
specific segment. For example, Demographical market segment is targeted by
company through this strategy. There is a reason to target only particular
segment is that because it further sub-classified customers on the basis of their
age, gender, income, culture etc. With this segment company will enable to
increase revenue of proposed product segment in the business market.
 Targeting: Unilever plc targets younger generation as targeted customer for the
proposed product segment. There is a reason to target particular audience such
as this targeted audience have high demand of environmental and health-
concern products which gives positive impact on their health and environment as
well (Dib, 2016).
 Positioning: Unilever plc has strong global presence in the retail market due to
it’s effective product segments. Thus, it become easy for the company to
increase awareness in customers about it’s new product segment.
Tactics
4P’s marketing mix

 Product: New product segment includes wide variety Lipton products i.e. energy
drinks, other soft drinks with specific diets through which company will enable to
attract all environment and health-conscious consumers for buying this new
product segment. Price: Competitive and skimming price strategy will follow by
company to sell it’s new product segment in business market. With these
strategies company will enable to make it’s business sustainable by influencing
selling revenue of the proposed product segment (Wirtz and Lovelock, 2017).
 Place: Company has various subsidiaries and physical stores which are located
in different countries across the world so, it will helpful for the Unilever to provide
high product availability of proposed product segment in different countries like
UK across the world. Thus, company can influence demand of proposed product
segments in consumers (Fayvishenko, 2018).
 Promotion: Digital and traditional marketing strategies will follow by Unilever plc
to increase awareness in customers as well as promotes them for buying product
and it’s services.
Budget: This marketing plan will prepare around 5000 euro wherein covers all
proposed strategies related to market.
Action plan
Marketing managers of the Unilever plc plays effective role in the marketing plan
such as they delegate different tasks among it’s team members so that individuals
works in right track in order to achieve it’s all proposed objectives within timeframe.
Marketers of the Unilever plc prior conducts market research to identify needs and
expectation of the customers as well as competitive positioning of the company in the
business market. Swot analysis model is also implemented to analyze internal
environment of the business in the retail sector (Gürel and Tat, 2017). While STP
framework is used to target specific market and audience for the company in order to
fulfil needs of them through proposed product segment. Then it implements 4p’s
marketing mix strategy to increase awareness in people through it’s different elements.
Upper management and marketing managers takes all decision together so that
proposed goal and objectives can be achieved within timeframe.

Mentoring and controlling
Performance management approach will follow by the management of the
Unilever to influence and keep control on all functional units working so that individuals
works with responsibility in the workplace that ultimately help company to gain it’s
proposed goal. To analyze benefits of proposed plan human resource management will
compare selling revenue of company between previous years and upcoming years.
Thus, human resource managers and marketing managers works together and keep
control on individual’s performance as well as cross check implemented strategies for
maintaining effectiveness of marketing plan.
CONCLUSION
In this report has been concluded marketing mix strategy and it’s elements have
used to highlight comparison between two companies i.e. Unilever and Nestle.
Marketing plan included SMART objectives, marketing analysis, situational analysis,
tactics, budget, action plan and controlling and mentoring have been summarized in the
brief study.

REFERENCES
Books and Journals
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing.
SAGE Publications Limited.
De Villiers, R., Tipgomut, P. and Franklin, A., 2020. International Market Segmentation
across Consumption and Communication Categories: Identity, Demographics,
and Consumer Decisions and Online Habits.
Dib, A., 2016. The 1-Page Marketing Plan. Successwise.
Fayvishenko, D., 2018. Formation of brand positioning strategy. Baltic Journal of
Economic Studies. 4(2). pp.245-248.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of
International Social Research. 10(51).
Hys, K., 2017, October. Mechanisms stimulating actions customer-decision maker on
the market: marketing mix instruments. In DIEM: Dubrovnik International
Economic Meeting (Vol. 3, No. 1, pp. 566-576). Sveučilište u Dubrovniku.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and
practice. The marketing book, p.87.
Shtal, T and et.al., 2018. Methods of analysis of the external environment of business
activities.
Verma, S., 2017. Niche level segmentation of green consumers. South Asian Journal of
Business Studies.
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World
Scientific.