Marketing Analysis: Shwapno, Unilever, and Pricing Strategies Report

This report provides a comprehensive analysis of marketing strategies employed by various companies. It begins by examining different methods of promotion budgeting, including the objective and task method and the competitive parity method, with examples from Grameenphone and Robi in the telecom industry. The report then delves into the marketing department of Shwapno, differentiating between Above-the-Line (ATL) and Below-the-Line (BTL) advertising strategies, and their respective roles. The report also analyzes Unilever's STP (Segmentation, Targeting, and Positioning) strategies in the Bangladesh market, highlighting how Unilever segments its products based on consumer income and needs. Furthermore, the report discusses five pricing strategies: penetration pricing, price skimming, premium pricing, economy pricing, and discount pricing, providing examples for each. Finally, the report explores two branding methods, manufacturer's brand and licensed brand, and concludes with an analysis of Ifad Multi Product Ltd's product lines, assessing their consistency and range.

Questions

Table of Contents
QUESTION 1...................................................................................................................................1
A) Different methods of promotion budget................................................................................1
B) Marketing department of Shwapno........................................................................................1
QUESTION 2...................................................................................................................................2
Unilever STP...............................................................................................................................2
Question 3........................................................................................................................................3
Five pricing strategy....................................................................................................................3
Question 4........................................................................................................................................4
a) Two branding methods............................................................................................................4
b) Answers based upon table.......................................................................................................4
REFERENCES................................................................................................................................6

QUESTION 1
A) Different methods of promotion budget
A promotion budget is defined as specific price or amount set for promoting the goods and
services of company. There are various methods of promotion budget which is used by telecom
industry. It includes the following:
Objective and task method: It is one of the most important method in setting promotional
budget. This technique is being used by Grameenphone who are the leading telecom services
provider operating in Bangladesh (Berger and Bechwati, 2018). In this method organisation is
been engaged in deciding the objectives which needs to be achieved and also the task which will
be required to accomplished so that objectives can be attained. This budget is set by analysing
cost that will be needed for completing every task. There are various pros and cons which are
related with this budgeting technique. Main benefit that has been gained by Grameenphone
while using this method is that they have been able to achieve every objective set by them.
Company has also face issues related to maintaining funds based on this method as there is huge
cost associated with each task.
Competitive parity method: In this budget is been determined by organisation, by seeing
amount spent by competitors on advertising. Robi is currently making use of this method and
they are the second largest telecom operator in Bangladesh. They have been engaged in
allocating funds on advertising, same as their competitors. Robi has tried to maintain their
promotion outcome, similar as competitor. Main issue in this method is that there are chances
that competitor’s objectives are not same.
B) Marketing department of Shwapno
ATL vs BTL
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ATL
TV, Radio, print
media
Reach
Frequency
Brand lift
Consumer
s
BTL
Trade marketing,
email marketing
ROI
Cost per lead

Marketing department of any organisation has various responsibilities such as promoting the
product, designing strategy. Shwapno MD is being involved in doing following functions:
Above the line: ATL advertising is wide range promotional strategies so that brand
awareness can be created. There is various mode through which Shwapno can promote their
product like television, radio, print media. With the help of television, they can reach out local,
national and even international consumers. By making use of this method they can have a better
connection with customers and they will be attracted more towards them. Products and services
given by Shwapno can also be promoted with the help of newspapers or magazines. Fixed ad
slots can be used by marketers to inform consumers about the same. Magazine can also assist
them in reaching out niche markets (Shafei and Tabaa, 2016).
Below the line: BTL advertising can be useful for the targeted consumers so that the brand
can be built. In this Shwapno can make use of email marketing. In this they can communicate to
specific customers about the different offers drafted according to needs of consumers. Shwapno
can also make use of in-store marketing so that they can gain more return on amount invested by
them. This advertising can only be useful when firm want to target specific consumers.
QUESTION 2
Unilever STP
Unilever is being involved in selling different goods and services in Bangladesh. In order to
meet out consumer needs they are following STP techniques. This includes the following:
Segmentation: In order to increase brand position of company in Bangladesh segmentation
is must. Unilever is making use of segmentation approach so that market can be narrowed down.
Company have segmented down their detergents on basis of consumers paying capabilities like
for example Active wheel and sunlight both of these detergents in Bangladesh is been
manufactured for low income level consumers. Similarly surf excel prices are kept high so that
middle plus high income class people can afford it (Dolnicar, Grün and Leisch, 2018). For
consumers who feels to maintain better hygiene, Unilever has lifebuoy. By this way products are
segmented in Bangladesh. Psychographic and demographic segmentations are being used by
Unilever to establish their brand in country.
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Targeting: Unilever produces variety of products and they are being engaged in targeting
specific consumers. Like close-up, Dove, lifebuoy is being promoted to those consumers in
Bangladesh who have high urge of maintaining hygiene and are conscious for personal care. Lux
soap is being targeted to women of age between 15-65, who wants to look beautiful and glow.
For housewives they are promoting surf excel, Knorr and many more items. Prices set are really
tactical and according to demands of consumers.
Positioning: Unilever is making use of cost positioning strategy where they are making sure
that quality is improved and cost is reduced.
Question 3
Five pricing strategy
Pricing strategy is how the seller uses prices in order to attain certain business objectives.
There are five different types of pricing strategies which are as mention below:
Penetration Pricing: This is used when companies enter in new market with low price
strategy, but it is not fruitful for long term success and that is why, most of the company do not
uses this method (Kienzler and Kowalkowski, 2017). Hence, it is used for brand new business
who are looking for attracting customer. For example, in telecommunication industry, this
method is suitable as they will charge a lower than market rate for the first month in order to
attract customers and then changes the strategy.
Price Skimming: This is used when companies charge the highest price for a new
product and then lower down the price over time, once the product become less popular. With
the help of this, company tries to recover sunk cost and sell the product beyond original cost. For
example, in electronic industry, this pricing strategy is used like whenever a new phone is
launch by Apple the prices are high. But after a year, the price of same product is low because it
is less popular due to high cost.
Premium pricing: This pricing strategy is used to reflect their products are luxurious and
high value. This is used by little number of companies because very less number of customer
afford to enjoy the products (Different pricing strategy, 2020). For example, in hospitality
industry most of the five star hotels uses this pricing strategy in which the cost of living is so
high along with unique facilities.
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Economy pricing: The aim of this strategy is to attract wide range of customers because
business are able to minimize the cost associated with marketing and production. Hence, this in
turn assist to keep the price of product is low which in turn grab attention o many customer
towards it. Also, this is not used by small business because it is quite risky. For example, in
fashion industry, companies uses this method in order to earn profit and maintain regular flow of
money which in turn assist to sustain brand image.
Discount pricing strategy: This strategy helps to draw attention of many customers
towards it. This is mostly used by top company and online retail business because it is a kind of
clearance section in which products are offer at low price from their actual price ((Chen and
et.al., 2019). Through this, most of the customer purchase the product at bulk because of its low
price. For example, in retail industry, this pricing strategy is used twice in a year in which 10%
to 80% off is offered to each product which in turn attract range of customers.
Question 4
a) Two branding methods
Manufacturer's Brand:
It is the banding efforts that is used by manufacturer to brand themselves is known as
manufacturing branding (Dobrovolska and Kovalchuk, 2019). Thus, with the help of this
branding option, company recognize within market and gain customer loyalty as well. For
example, KFC who brand their own product and sell them into market.
Licensed Brand:
It is define as an act of leasing a brand name to another firm. Thus, leased brand is used
in particular manner that helps to attract range of customer towards it. With the help of this type
of branding company is able to reach wider range of audience because firm is able to tap into
consumer of other brand (Luck, 2017). For example, Marmite which is an iconic British food
spread which has done licensing its brand onto other product same as Easter eggs. Through this
branding company earn licensing royalties.
b) Answers based upon table
I.
Ifad Multi Product Ltd have 6 product lines such that Noodles, Flour, Biscuits, Snacks,
Salts and Water.
ii.
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Biscuits have largest product because there are 14 different varieties of biscuits offered
to the customers.
iii.
Both Salt and Water have smallest range of product such that only one product is offered
to customer for both product line.
iv.
Yes, the company is less consistent because there is no proper bench marking set for
each product. Such that in Flour, company 1 kg, 2 kg but then increases to 50 kg which is not
consistent. It is same applies in other product line which clearly reflected that the product line is
not properly set and that is why, firm is said to be inconsistent.
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REFERENCES
Books and Journals
Berger, P.D. and Bechwati, N.N., 2018. The allocation of promotion budget to maximize
customer equity. Omega.29(1).pp.49-61.
Chen, X. and et.al., 2019. Optimal pricing strategy for the perishable food supply
chain. International Journal of Production Research.57(9). pp.2755-2768.
Dobrovolska, K. and Kovalchuk, S., 2019. Problematic aspects of trade manufacturing chains
branding. Technology audit and production reserves.5(4 (49)). pp.36-39.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market segmentation analysis: Understanding it,
doing it, and making it useful (p. 324). Springer Nature.
Kienzler, M. and Kowalkowski, C., 2017. Pricing strategy: A review of 22 years of marketing
research. Journal of Business Research, 78, pp.101-110.
Luck, E., 2017. The importance of branding. QUT Blue Book: How to found a startup at QUT,
pp.123-127.
Shafei, I. and Tabaa, H., 2016. Factors affecting customer loyalty for mobile telecommunication
industry. EuroMed Journal of Business.
Online
Different pricing strategy. 2020. [Online]. Available through:
<https://www.freshbooks.com/hub/leadership/12-real-world-pricing-strategy-examples>.
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