Marketing Principles: Unilever's Hair Cream Strategy in Nairobi, Kenya

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This essay explores the marketing principles behind Unilever's launch of a new hair straightening cream in Nairobi, Kenya. It includes a product/service description, market analysis covering key trends, competitors, and customer attitudes. The essay identifies issues and opportunities related to segmentation, targeting, and positioning, detailing the basis for segmentation and a target market profile. A positioning statement justifies why the target market should purchase the product. Finally, the essay outlines the marketing mix (product, price, place, promotion) employed by Unilever to ensure the successful launch and market penetration of its new hair straightening cream in the Nairobi market, emphasizing the importance of understanding consumer needs and preferences.
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Principles of Marketing
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Table of Contents
INTRODUCTION..........................................................................................................3
Product/Service Description ..........................................................................................3
Outline Market Analysis................................................................................................3
Brief market analysis ................................................................................................3
Key market trends......................................................................................................4
Key competitors and their positioning.......................................................................4
Summarise current customer attitudes/behaviours in this market.............................4
Identify the main issues/opportunities relevant to segmentation, targeting and
positioning.................................................................................................................5
Basis for segmentation...............................................................................................5
Summarise the profile and persona of your target market.........................................6
Include a positioning statement that identifies why your target market should
purchase your company’s product.............................................................................6
Marketing mix...........................................................................................................7
CONCLUSION..............................................................................................................8
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INTRODUCTION
The project is based on the principles of marketing in which a brief description
of new or improved products or services, a brief analysis of markets, key market
trends, competitors, current customer attitudes, main issues and opportunities of
segmentation, targeting and positioning, the characteristics of the target market and
the marketing mix are determined. Marketing is the concept of promoting the buying
and selling of goods and services in a market. The principles of marketing, or the
seven Ps of marketing, are product, price, place, promotion, people, process and
physical evidence. The chosen organisation for accomplishing this project is Unilever,
and the product is “New Hair Straighter Cream”. It is a product that attracts customers
because it does not require any hairdressing equipment and protect hair from dryness
and dullness.
Product/Service Description
Hair straightening products for women never go out of fashion. Women want
permanent hair straightening but due to high cost they cannot straight their hair
permanently. To overcome this issue, Unilever developed a new hair straightening
cream, which allows consumers to maintain straight, smooth hair for about two
months. It adds a glossy sheen to customers’ hair and makes it look healthy and well
maintained. This product contains chemicals, but it is neither allergenic nor otherwise
harmful to consumers (Cruthirds, 2016). Hair straightening cream is therefore a good
alternative to hair straightening equipment because it helps to reduce electrical
injuries such as electric shock and ensures that the product contains natural materials
that are suitable for all types of consumers. An external specialist had tested the hair
straightening cream several times before Unilever offered it on the market.
Outline Market Analysis
Brief market analysis
The chosen market for launching the new hair straightening cream is Nairobi,
Kenya. Africa is the second most populous and second largest continent after Asia.
The African population is rapidly increasing and largely consists of a youthful
population. The resultant abundance of labour makes Africa good for business
(Boateng, Armer and Russo, 2015). In fact, compared to other emerging markets,
Africa offers a high return on investment. Unilever chose Africa because it offers
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enormous economic growth and increased prosperity (Odusola, 2019). African youth,
especially women, prefer using hair-straightening equipment (Pathak and Akhtar,
2019). Yet this equipment can damage hair, as it involves a time-consuming process
that leads to hair loss (Tafari-Ama, 2016). Africa is a suitable market for launching
the new hair straightening cream because it has receptive population and the
economic potential to attract buyers.
Key market trends
The key market trends in the consumer goods industry are the rise in online
ordering, zero waste, innovation and sustainability. These trends increase sales and
profitability for businesses. Customers prefer online ordering to save time and
maintain social distancing to prevent the spread of disease. To improve the sales and
profitability of its products, Unilever must pay more attention to its online platforms.
Personalisation is another trend that increases a business’s profitability. The new hair
straightening cream allows customers to order products according to hair length and
thickness (Strydom, 2019). It is also important for Unilever to focus on sustainability
practices to help protect, preserve and restore the natural environment and thus
enhance people’s lives (Sharad and Gandhi, 2018).
Key competitors and their positioningUnilever’s competitors, such as Procter &
Gamble and Edgewell Personal Care, impact Unilever’s performance and
growth. These competitors have decided to launch new products in the market
to draw customers’ attention to their brands, which can significantly increase
company's productivity. They position themselves in the market by offering
high-quality products with competitive pricing. To attract customers in Nairobi,
Unilevers’ competitors have promoted their brands and thus increased their
market presence.
Summarise current customer attitudes/behaviours in this market
In Nairobi market, customer generally prefer to buy the products through
online platform rather than focusing on brick-and-mortar stores. Consumers in this
market also demand prompt service without unwanted interruptions. They generally
prefer high-quality products that satisfy their needs and meet brand standards (Bryant
et al., 2015). They choose brands based on word of mouth, reputation, variety of
products, online customer reviews, popularity and sales promotion. Consumers focus
on price, quality, convenience and choice. It is important for Unilever to fulfil
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customers’ needs and ensure their satisfaction to increase its customer base and thus
the growth of the company. By offering hair straightening cream, the company can
attract customers in Nairobi. It must ensure that its product availability is on online
platforms.
Identify the main issues/opportunities relevant to segmentation, targeting and
positioning
The issues related to segmentation are market investment, difficulties with
distribution and promotional problems. Unilever must subset the market according to
demographical, geographical, behavioural and psychographical factors. The
opportunities a company can exploit from segmenting the market are developing
consumer insight, growing niche marketing capabilities and improving brand loyalty
and customer engagement. The problems it faces while targeting the market are
ethical issues, sharing the market with competitors and targeting the wrong market
(Pexe et al., 2019). By successfully targeting the market, Unilever can attract people
interested in its new hair straightening cream to create a strong customer base. Issues
relevant to positioning the new product are development costs, significant cost of re-
educating the market and the decision of whether to reposition the existing products
or providing new offerings. Unilever has various opportunities to help meet
customers’ expectations, promote consumer goodwill, gain consumers’ interest,
increase profitability and retain customers. Basis for segmentation
Segmentation means dividing the market into groups with similar tastes and
characteristics by age, lifestyle, needs, gender and so forth. Unilever grouped
customers together who wore similar fashions and led similar lifestyles. Through this
strategy, Unilever could break down its target market audience into small groups
(Qiao et al., 2018). Some examples of market segmentation are geographical,
demographical, psychographical and behavioural. Demographical segmentation
mainly divides the market according to age, gender, social class, race and income.
Geographical segmentation divides the market according to regional location,
population density, climate and city or country size. Psychographical segmentation
divides the market according to lifestyle, interests, attitudes, values and personality
(Andaleeb, 2016). Unilever has segmented the African market according to
demographics, geographics and psychographics.
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Demographics: Unilever segmented the market based on age and gender. They
targeted women aged 18–45 who wished to attain shiny, straight hair without using
hairdressing equipment.
Geographics: Unilever segmented the African market on the basis of country and
city. The brand chose Nairobi, Kenya to sell its newly launched product.
Psychographics: The brand has classified the African market according to interest,
lifestyle and personality. For hair straightening cream, Unilever has identified the
interests of women and determined their lifestyles. Many women in Nairobi have
frizzy, wavy or curly hair. Thus, the company decided to launch their product in the
Nairobi market so that women could use hair straightening cream and then flaunt their
straight hair.
Summarise the profile and persona of your target market
Consumer persona mainly determines the key traits of target customers, which
include background information, personal information, age and location (Lehnert,
Goupil and Brand, 2020). Unilever primarily targets women aged 18–45.
Consumer persona
Key Elements Consumer Persona
Demographics Age: 24
Gender: Women
Profile Women having an interest in new, trendy hair
products and wanting to nourish their hair with
organic products.
Motivations for using the Unilever product Unilever’s hair straightening cream helps
prevent damage to hair and contains 100%
natural products.
Motive of using the Unilever product The main motive of using Unilever’s hair
straightening cream is that it contains natural
materials suitable for all types of women's hair
such as frizzy and wavy.
Include a positioning statement that identifies why your target market should purchase
your company’s product
Benefits of using hair straightening cream:
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Unilever launched hair straightening cream in the Nairobi market so that
women could prevent their hair from becoming dull, dry or damaged. Hair
straightening cream ensures that women’s hair remains straight over time so that they
do not need to visit a hairdresser. The product is also a money-saving solution for
women as compare to permanent hair straightening process. Through hair
straightening cream they can nourish their hair with natural ingredients and manage it
in less time. Hair straightening cream is a valuable product that comes at an
affordable price and contains high-quality ingredients that are safe for women’s hair.
Long hair needs extra care, and by using an iron or hair straightner, the hair becomes
dry, dull and damaged over time. By using hair straightening cream, women can
protect their hair from dryness and dullness and allow it to remain shiny, silky and
healthy. It also takes less time than using irons or hair straightening equipment.
Problems solved by hair straightening cream:
The problems that hair straightening cream solves are dry, dull and damaged
hair. Unilever ensures that its product allows women to avoid heat as it damages hair.
It also reduces frizz and curls and focuses on controlling excessive thickness. Using
this product eliminates the need to use hairdressing equipment and visit the
hairdresser. The use of hair straightening cream also helps reduce electrical injuries
and manages hair in less time than irons or hair straightening tools.
Marketing mix
Marketing mix is a combination of four P's such as product, price, place and
promotion through which company can understand what products and services
company can offer to their customers and also develop effective marketing strategies
in order to promote the product.
Product:
Unilever divides its products into different market segments, including
personal care, home care, food, refreshment and water purifiers. Unilever launched its
hair straightening cream in the personal care segment of the Nairobi market, targeting
women of different ages. Personal care is one of the largest market segments and thus
helps improve the growth and profitability of a business. Hair straightening cream is a
cost-effective product that is also trendy because women currently prefer to attain
straight hair without using hair straightening equipment.
Price:
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The pricing strategy that Unilever implemented in Nairobi is a penetration
pricing strategy. While determining the price, Unilever was aware of the intense
competition in the Nairobi market and thus used a competitive pricing strategy. The
price of Unilever’s products changed according to market conditions and catered to all
cost segments, ranging from low-priced to high-priced. Hair straightening cream was
priced low to attract female consumers in the Nairobi market.
Place:
Unilever operates its business in many countries and thus has a large customer
base. Unilever’s distribution strategy involves thousands of distributors and millions
of retailers. They are focusing on Nairobi market in order to attract women by
offering them hair straightening cream. To cut costs, Unilever mainly takes advantage
of global manufacturing and distribution (Mintz et al., 2021). Unilever sells hair
straightening cream on various e-commerce websites, on Unilever’s own website and
in brick-and-mortar retail outlets. Women can easily attain the product on different
channels (such as Amazon, Ali baba and many others) and in different locations.
Promotion:
Promotion is another marketing mix strategy in which companies promote their
products and services to reach a maximum number of customers. Unilever promotes
its product through print media, hoardings, free samples, discounts, digital media and
various other marketing media and strategies. To promote its hair straightening cream,
Unilever advertises on social media (Steenkamp, 2017). Unilever uses a social media
platform for promoting its hair straightening cream so that it can attract people active
on different social media platforms, such as Facebook, Instagram and Twitter.
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CONCLUSION When introducing a new product to the market, it
is important that Unilever understand its potential customers’
needs. They must also understand interests and preferences of
consumers so that it can draw more people towards brand. To
launch anew hair straightening cream, the company identify a
target market in which people will pay for the product. They
focus on Nairobi market for promoting and increasing the sale of
its new hair straightening cream. A company divides its
customers according to the following four market segments:
behavioural, demographic, psychographic and geographic. Thus,
company can achieve the success in market when they provide
better products quality and benefits to consumers.
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REFERENCES
Books and Journals
Andaleeb, S. S., 2016. Market segmentation, targeting, and positioning. In Strategic
Marketing Management in Asia. Emerald Group Publishing Limited.
Bryant, H and et. al., 2015. Hair straightening. Cosmetic Dermatology: Products and
Procedures, p.262.
Cruthirds, A. M., 2016. Effect of Strengtheners on the Structure of Hair
Fiber (Doctoral dissertation, Alcorn State University).
Lehnert, K., Goupil, S. and Brand, P., 2020. Content and the customer: inbound ad
strategies gain traction. Journal of Business Strategy.
Mintz, O and et. al., 2021. The right metrics for marketing-mix
decisions. International Journal of Research in Marketing. 38(1). pp.32-49.
Pathak, K. and Akhtar, N., 2019. Hair Care Cosmetics Regulation in Different
Countries–A Comparative Study. Applied Clinical Research, Clinical Trials
and Regulatory Affairs. 6(1). pp.34-45.
Pexe, M. E and et. al., 2019. Hairdressers are exposed to high concentrations of
formaldehyde during the hair straightening procedure. Environmental
Science and Pollution Research. 26(26). pp.27319-27329.
Qiao, L and et. al., 2018. Brominated flame retardant (BFRs) and Dechlorane Plus
(DP) in paired human serum and segmented hair. Ecotoxicology and
environmental safety. 147. pp.803-808.
Sharad, J. and Gandhi, J. M., 2018. Salon Hair Procedures. Aesthetic Dermatology:
Current Perspectives.
Steenkamp, J. B., 2017. Global marketing mix decisions: global integration, not
standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan,
London.
Strydom, J., 2019. A safer way to shape hair. South African Pharmaceutical and
Cosmetic Review, 46(9). pp.22-23.
Tafari-Ama, I. M., 2016. Historical sociology of beauty practices: Internalized racism,
skin bleaching and hair straightening. Ideaz. 14. p.1.
Online Sources:
Odusola, A., 2019. Investing in Africa is sound business and a sustainable corporate
strategy. [Online]: Available Through:
<un.org/africarenewal/web-features/investing-africa-sound-business-and-
sustainable-corporate-strategy>
Boateng, Y, Armer, R.K and Russo, B., 2015. Winning in Africa’s consumer market.
[Online]: Available Through:
<https://www.mckinsey.com/industries/consumer-packaged-goods/our-
insights/winning-in-africas-consumer-market>
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