Unit 2: Marketing Essentials

This study material covers the topic of marketing essentials, specifically focusing on the marketing mix. It includes a case study of Unilever Company and its promotional activities. The material analyzes the roles and responsibilities of marketing functions within the organization, as well as the interconnections between different departments. It also provides a detailed assessment of the marketing mix elements and a marketing plan for the company.

Unit 2: Marketing Essentials

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
LO2..................................................................................................................................................3
P3 Marketing Mix........................................................................................................................3
Evaluation....................................................................................................................................6
LO3..................................................................................................................................................6
P4 Sostac Model..........................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

Introduction
Marketing is defined as promoting company’s products and services at various marketing
and promotion channels all across the globe. This report is based on the case study of Unilever
Company in respect to its promotional activities. Company is involved selling consumer goods
all across the globe. Unilever Company is a brand of Lever Brothers Branch. Company was
initiated in the year 1929. Headquarter of the company is located in London, United Kingdom.
Lever Brothers and Margarine are the predecessor of the Unilever Company. In this report
different aspects related to the marketing of company would be assessed and analysed.
Henceforth, report would analysis in respect to roles and responsibilities marketing functions
play in respect to the organisation. Report would also assess how different departments in
company are interconnected with each other in respect to different functional activities of
company. How various functional roles in company are interconnected with each other as a part
of organisation hierarchy. Precise analysis in respect to different elements associated with
marketing mix would be assessed in this report. Furthermore, this report would assess the precise
marketing plan in respect to company.
LO1
Covered in PPT.
LO2
P3 Marketing Mix
It is a marketing technique that is applied by companies for differentiating their brand, product
from others in the business industry. It comprises numerous elements i.e. product, price place,
promotion, people, physical evidence and process through which company achieves it’s
proposed objectives in it’s business sector (Rabu, 2019). These marketing elements are not only
established strong brand image but also brings financial profit. This framework is used for the
Unilever and Nestle which have already used to differentiate their product from other
competitors in their business sector. These 7p’s marketing mix elements is applied to compare
between two organizations i.e. Unilever and Nestle Inc.

7Ps of
Marketing Mix
Elements
Unilever Nestle
Product
Unilever plc posses’ wide product
portfolio that is categorized into four
categories such as personal, homecare,
personal and water purifier. It has
included around 400 brands in it’s wide
product portfolio which helps company
to capture large market share on
different products across the
world.Product mix strategy follows by
Unilever plc to maintain equity of
different product segment in the
business market and differentiate it’s
wide range product portfolio from others
like Nestle.
Nestle is a MNC company which is
popularized as world’s largest food
company. The reason behind is that it
posses’ more than 8000 brands in it’s
product portfolio which are more
stronger as compared Unilever. Due to
this, it has improved high turnover on
it’s certain product segmentslike dairy
products and food products. It also has
differentiated it’s brands from others
by categorizing it’s product portfolio
into different segments i.e. beverage,
instant food, chocolates and dairy
products. So, it is evident that Nestle
has strong product portfolio as
compared Unilever plc.
Price Penetration pricing strategy has
implemented by Unilever plc.
penetration pricing strategy means sell
product at lower cost while maintaining
quality. Unilever plc operates it’s
business in FMCG market across the
world that has high competition. So, it
often practised competitive pricing
strategy which supports to gain
competitive advantage from it’s
competitors on it’s certain products like
cosmetics, coffee etc.
Nestle also have practised different
pricing strategy for selling wide
product portfolio such as skimming
price strategy. This price strategy often
implements during season which
supports to build large customer base
and increases purchasing behaviours of
customers in the FMCG market. This
strategy helps to generate high profit
margin on different products segments
i.e. instant foods and beverage.
Competitive pricing strategy has
followed by Nestle in order to gain
competitive advantage due to this it
has often win competition from

Unilever plc.
Place
Unilever has adopted distribution
strategy in order to provide high product
availability across the world. As resulted
Unilever enable to run it’s stores more
than 190 countries across the world. Due
to high availability of it’s product,
company enables to generate high
competitive advantage in FMCG
market.
While Nestle also has implemented
distribution strategy through this it
enables to establish number of physical
stores globally. Due to high presence
of convenience stores company has
established strong brand image in the
FMCG market.
Promotion
Marketing management of Unilever plc
has practised different promotional
resources strategy in the workplace.
Promotional resources are marketing
campaign, celebrity endorsement and
online media which have given high
contributionin product publications. Due
to this, Unilever plc has become one of
the world’s demanding company among
others.
Nestle plc has practised mix
promotional strategy to promote it’s
product segments in FMCG market.
For example Maggie is one of the
major product in instant product
segments. To promote this product has
used video tutorial promotional source.
This promotional resource has
supported company to generate high
revenue on instant food segment.
Online and offline platform uses by
Nestle to increase brand awareness in
people.
Process
Unilever follows both models B2C and
B2B to offer it’s products across the
world. B2B model is used by Unilever
to sell it’s product to the franchises
(Zuhdi, Rainantoand Apriyani, 2020).
On the other hand, B2C model is used to
sell products directly to consumer. Thus,
both business models B2B and B2C
supports company to increase turnover
of business in productive manner.
On the other hand, Nestle also follows
both business models like Unilever to
sell it’s different product segments in
FMCG market.
People Unilever always concentrates on As compared, nestlealways focuses on

employee’s performance because it
believes that if employees are fully
satisfied from their job then they
ultimately try to give high performance
in the workplace.
customer’s needs and expectations
because it thought that when company
posses’ such product which brings
level of satisfaction in customers then
automatically success can be received.
Physical Evidence
Company concentrates on products
appearance because it is attraction factor
for the customers. When products look
attractive and have wide range of
advantage and benefits then customers
eager to buy them in more efficient
manner.
While Nestle puts high efforts to make
product and company infrastructure
more attractive so that each customer
like to visit or try product in it’s firms.
Evaluation
From above discussion has been analysed that Unilever plc used marketing mix elements
more effectively as compared Nestle plc. But product mix strategy of Unilever is not much
effective like Nestle which is one of the major drawbacks. But it can improve if company adapt
Aker’s brand equity model that will build brand image in the context of different product
segments. Otherwise, it has effectively implemented all elements of marketing mix and achieves
it’s all proposed objectives within timeframe.
LO3
P4 Sostac Model
Sostac model is marketing planning model that is proposed to develop effective
marketing plan. This marketing plan guides organization to implement various marketing
strategies or achieving it’s proposed marketing objectives in effective manner. This Sostac
framework is used for Unilever in respect of Nestle (Iarusovand Nasir, 2018). There is another
reason to implement this model such as it is going to introduce organic instant food segment in
the FMCG market. With this model, it will enable to create effective marketing plan which will
support to gain it’s objective in respect of Nestle. The model is mentioned as follows:

Situational Analysis
Unilever plc is a British Dutch multinational consumer goods company that is
headquartered in London, UK. It has established its stores into multiple countries across the
world. However, it has strong presence in e-commerce market as well. It has goal to offer best
quality product and services to the customer so that they get values of their money. Due to this it
enables to gain strong brand image in the FMCG market (Wuand Li, 2018). It uses different
promotional media i.e. internet, social media, video tutorial etc. in order to aware customer about
it’s brand portfolio with different product features. Thus, company has established strong online
presence in the e-commerce market.
Swot analysis
 Strength: It has good reputation in the FMCG market that is one of the major advantages
of the company which supports to sell it’s products in such place whereas limited
companies retails it’s product or services.
 Weakness: It has limited business diversification due to this it unable to build large
customer base in the FMCG market (Išoraitė, 2016).
 Opportunity: It has opportunity of business diversification that will helps to expand
business into multiple countries across the world, through which it can build loyal
customer base for it’s different product segments.
 Threats: It has major threats from it’s competitions like Nestle which posse’s similar
product portfolio along with strong brand portfolio. Due to this company often faces loss
on product selling infrastructure.
Objectives
 To increase strong customer base in the end year of 2021.
 To generate 30% sales revenue by the end year of 2023.
 To generate up to 30% profit margin on the new product segment between 2021 to 2023.
Strategy
STP model

 Segmentation: Demographical and psycho-graphic market segments have selected by
Unilever with the market segmentation strategy for the new products segmentation.
 Targeting: Company has targeted young generation people as targeted audience because
this targeted audience is highly concerned for their health and wants such good products
which prepares early and gives positive impact on their health (Quarcoopome, 2017).
 Positioning: It has established strong brand image in the FMCG market due to high
quality products. So, it will support to promote new product segment in the business
market at glocal level.
Tactics
4p’s marketing mix
 Product: It is going to introduce organic instant food segment that will attracts customers
to buy them.
 Price: Skimming and flexible pricing strategy will follow by Unilever plc to influence
sales of new products segment in the FMCG market.
 Place: It has good presence in the domestic and international market that will also support
to keep availability of this new product segments at glocal level.
 Promotion: Video tutorials will be used by company as promotional resource to create
awareness in people about it’s new product segment in the glocal market.
Action
Marketing manager of the Unilever plc delegates different tasks among staff so that it can
manage all business operations in the workplace effectively (Camilleri, 2018). STP model will
conduct by marketing manage4r to target certain market segments so that it can target particular
audience for the new product segment. Then marketing representative will use 4P’s marketing
mix to differentiate it’s new product segments from others like Nestle’s Maggie. Thus, company
has captured 30% profit margin on it’s proposed product segment as well as achieves it’s all
projected objectives within timeframe.
Control

360-degree feedback strategy follows by marketing manager of the Unilever to keep
control on all business activities and maintains wellbeing of the individuals in the workplace.
with this strategy marketing manager enables to evaluate success of this marketing plan in
effective manner.
CONCLUSION
This presentation have projected all different roles marketing department play in
company. Roles like enhancing sales of company, boost growth rate of company, polishes
company image, strong relationship of company with its customer group and many other roles in
the market. Responsibility like improving the sales of company is a big responsibility associated
with the marketing department. Marketing department shares strong professional relationship
with all other department like operation, sales, human resources and many others.

REFERENCES
Books and Journals
Rabu, R.J., 2019. The study of the shopper marketing activation process of Unilever Bangladesh
Limited.
Iarusov, I. and Nasir, S., 2018. Marketing Plan: Case company: Standard.
Quarcoopome, N.A., 2017. A marketing communications plan to increase brand aAwareness of
Accents & Art.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Zuhdi, S., Rainanto, B.H. and Apriyani, D., 2020, May. Analysis of Co-Branding Strategy to
Improve Company’s Competitive Power (Case Study on Walls Selection Oreo). In 2nd
International Seminar on Business, Economics, Social Science and Technology (ISBEST
2019) (pp. 146-149). Atlantis Press.