Holmes Institute HI5004 Marketing Management Report: Unilever Analysis

This report provides a comprehensive marketing analysis of Unilever, a British-Dutch company. It begins with an executive summary and introduction, highlighting Unilever's vision, values, and brand role. The report then delves into a 5C's analysis (Company, Customers, Competition, Collaboration, Context) and a SWOT analysis to examine Unilever's internal and external environments. The report further explores the application of Porter's Five Forces model to assess the competitive landscape. It discusses market segmentation strategies and concludes by developing marketing strategies and tactics for Unilever. The analysis covers various aspects of the company, including its strengths, weaknesses, opportunities, and threats, as well as the preferences and behaviors of its customers. The report references relevant marketing concepts and theories to provide a well-rounded and insightful evaluation of Unilever's marketing management approach.

Marketing Management

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Contents
Executive Summary.........................................................................................................................2
Issue 1..............................................................................................................................................3
Introduction..................................................................................................................................3
Role of Brand...............................................................................................................................3
Issue 2..............................................................................................................................................4
5c’s for the Telstra.......................................................................................................................4
Issue 3..............................................................................................................................................9
Issue 4: Developing Marketing Strategy.......................................................................................11
Issue 5: Developing Marketing Tactics.........................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................16
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Executive Summary
The report discusses the marketing strategy as well as examines the external and internal
environment of the company Unilever. Unilever is a British – Dutch company. The company has
big plans for its growth and has a solid purpose of bringing liveliness in the life of its customers
by way of efficiency, innovation and marketing. Large part of profits of the company is from its
regional markets and the company is making great efforts to increase the size of its business. The
main strength of the organization is its supply chain, brand reputation, decentralized decision
making and lesser lead time. The company’s main weaknesses are low direct involvement with
the customers, lesser sales in developing markets, lesser profits in premium markets. The
company also faces great threats like heavy rivalry from local companies, complicated structures
and hard organizational environment. The company also has several opportunities like increasing
demands for healthy products both for young and old generation.
The company has more than 400 brands in several countries across the world. All these 400
brands of the company have individual branding strategy but every brand has a logo, design,
ideology and message of the company. The 25 icons of the logo have significance of all the 400
brands. The customers of the company generally belong to upper middle to low income group
and thus the prices are from low to mid-price range.
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Issue 1
Introduction
Unilever is a British – Dutch company. It has its headquarters in London, UK and Netherlands.
The company offers varied range of products from food, beauty products to personal care
products. The vision of the company is to double the size of the business and lower down the
environmental footprint. The company aims to have a strong social impact and an ambitious aim
for a long run sustainable business. The values of the company are very strong. The endeavor of
the company is to bring more liveliness in the life of the customers. The legacy of right
governance, standardized products and rich experience of working in society helps in achieving
it. The mission of the company is to provide brands to its customers as per their need because of
the past paced changing lives which includes ageing population and different lifestyle. The
company has more than 400 brands in several parts of the world. The popular brands of the
company are Lux, Knorr, Surf excel, Rexona and several others. The different brands have
different market segmentation as per the features and the uniqueness of the product (Cescau &
Rivers, 2007).
Role of Brand
A brand comprises of name, term, sign and symbol. It can also be a combination of all of these.
It helps in identifying a seller and differentiating them from their competitors. Unilever is a
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popular brand across the world and it follows stringent rules to use its logo and other symbols.
The big blue ‘U’ of the logo describes Unilever.
Issue 2
5c’s for the Telstra
5 C is used to examine the main five areas that are involved in taking marketing decisions it
includes, the customers, company (SWOT analysis), competition, collaboration and context
(PESTEL). These factors help in taking the correct decisions and help in developing a marketing
plan and strategy (Roderick, 2017).
Company - SWOT Analysis
SWOT is the by and large progression of an organizations Strengths, Weakness, opportunities,
Threats. It is the technique of examining the external and internal marketing environment.
Strengths
 Renowned worldwide brand by all the
costumers
 Powerful brand portfolio across all
segments
 Well-built supply chain which results in
lesser lead time and cost
Weaknesses
 Less direct contact with consumers
 Complexity in running 400 brands
 Nonexistence in the finest markets
 Sluggish sales growth in rising market
 Reduction in revenues
 Lower sales growth in comparison to its
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 Less cost because of economies of scale
 Massive investment in R&D
 Exceptional management and human
Resource
 Well standardized products, the company
has a reputation for providing good
quality products
 Strong networking across all markets
around the globe
 Innovative and marketing strategies
 Decentralized decision making. The
managers at all levels have the authority
to participate in decision making.
competitors
 High transportation costs in European
areas
 Lesser promotions because of high costs
 Various substitute products being offered
by the competitors (Unilever PLC, 2017).
 High restructuring cost
Opportunities
 Escalating requirement for healthy
products are in demand
 Budding markets are predictable to grow
 Personal Care segment may become
more custom-made
 Product for aging population can rise in
demand
Threats
 Hard competition from other big and
small brands
 Competition in getting store space
increasing
 Complex Business environment
 Intricate Organizational Structure
 Niche brands are moving ahead
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Customers
 Clients want superior quality and standardized products
 Majorly age group starting from 5 years to 45 years is the customers of the company
 The income level of the customers generally ranges from middle to higher
 The customers have a strong inclination towards quality
 The company is engaged in building superior relationships with its employees and spots
the emerging needs before the needs arises.
Competition
 The company is taking continuous steps to lower down the cost ahead of its competitors.
 The various costs that have to be taken into consideration are production cost, packaging
cost, Marketing and distribution costs.
 The company’s major competitor is Proctor and Gamber (Young, 2017).
Collaboration
 The purchasing frequency of the clients is both regular and seasonal, purchasing volume
ranges from low to medium.
 The products are easily available in retail stores, shops and online stores.
 The company does rigorous communication through digital media, print media, online
social media and other online platform (Reichert, 2018).
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CONTEXT - PESTEL analysis is used to assess the external marketing environment aspects that
have an impact on Unilever
Political Factors
 Newer taxes and tariffs put down by the
government
 Decrease in economy
 Increase in inflation
 Fluctuations in exchange rate which results
in less profits
 Rising interest rates in future
 The company is a member of several
organizations across the world. Unilever
does not participate in sponsoring any
political parties (Uren, 2011).
Economical Factors
 Unilever faces great competitions primarily
in Western Europe.
 There are several obstacles in the European
market because of the European Union free
trade policies.
 The main competitor in this market is
Procter and Gamble which results in
detrimental effect on Unilever’s profit
potentials.
 The competition in EU has made it hard
for the company in countries like France
and Netherlands.
 The company is doing well in countries of
Asia irrespective of the political stability.
The company has implemented various
strategies to make sure its profitability is in
place (Sasser, et al., 2017).
Social Factors
 Rise in population, means rise in demand
 Awareness on health and well being
Technological Factors
 Increase in sales because of technological
advancement
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 Uneducated masses of rising markets, that
has an impact on the marketing campaigns
 Changes in awareness of nutrition
 Unilever is doing well in continuing its
cultural environment by providing better
nutrition and hygiene factors primarily in
Africa and Asia.
 The company has initiated a program
“Dove self-esteem “to boost the confidence
of girls, by reaching out to 5 million young
people.
 The company employees more than 100
nationalities to make sure that there is
diversified working environment.
 Rapid change in technology makes existing
technology outdated
 More funds are required for upgrading to
new technology
 Improved cost efficiency
 The company has been working to increase
its presence on web to progress in their
brand communication.
 The company is also working towards
lowering down cost by using more
technological tools at global level.
 The company is also associated with
Unilever R&D to fulfill the requirements
of the customers (Unilever, 2014).
Environmental Factors
 The rapid changes in environment can have
converse effect on tea production
 The rising polluted water can result in rise
in demand of Pureit (Australian Financial,
2019).
Legal Factors
 Complex business rules and regulations
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Issue 3
Marketing Research - Michael Porter’s Five Forces: Porter’s Five Forces model helps in
assessing the competition inside an industry and business strategy development.
Bargaining Power of Buyer (What customers want)
 Customers choose higher standardized products
 More awareness in customer
 Customers altering buying method
 More time needed for building brand loyalty
Unilever offers high quality products and is the first preference of the customers
Threat of New Entrants (Competitors)
 Competition
 New product y the competitor
 Cost advantage
 Rise in competition
The company Unilever operates in large economies of scale. It has lesser costs and high
organizational efficiency, thereby making it difficult for the new entrants to be able to compete
with them (Mahajan, 2016).
Threat of Substitutes (which competitors pose a threat)
 Less switching cost
 Rise in switching probability
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 Fall in prices due to price rivalry
 Fall in sales
Though threat of substitutes is very less for Unilever because the products it offers are more
attractive than its substitutes
Degree of rivalry among existing customers (Changes in context of the business)
 Less exit barrier, because of which the consumers can quickly switch from one brand to
another
 Growth of industry
 Variety of products
 Struggle for store space
Struggle in developing a unique brand
Bargaining power of suppliers (role of collaborators)
 Rise in prices of suppliers
 Generating forged shortage
 Complication in supply chain
 Rise in lead time
Bargaining power of supplier is noteworthy but of lesser deliberation in context of
consumer goods Industry. As the change in production level will not have any change in
the availability of raw material (Kissinger, 2017).
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Competitor’s Situation: P&G is the main competitor that provides similar products as that of
Unilever
Issue 4: Developing Marketing Strategy
Market Segmentation: The company has more than 400 brands in several parts of the world. The
popular brands of the company are Lux, Knorr, Surf excel, Rexona and several others. The
different brands have different market segmentation as per the features and the uniqueness of the
product. The market segmentation is done on the bases of four parameters; Geographic,
Demographic, Psychographic and Behavioral. The customers of the company are segregated
according to the age, income and their need. The clients are of various age groups. The home
care segment has people in age group of 14 to 45 and their income level ranges from medium to
high. The food segments age group is 5 years and above, the customer’s inclination is towards
delicious and healthy food. The pricing of the products of the company includes production,
packaging, marketing and distribution. The company makes use of several communication
mediums and is always in look out for discovering new mediums through which the customers
can be communicated (Tode, 2018). The company segments its products according to the
population, which gives a good advantageous position to the company ahead of their
competitors. Unilever is a 130 years old company and so it has the best position to know what
products and populations are in perfect sync. The company enjoys good consumer base and is
culturally very diverse. Milk products are common in UK market so the company has extended
their attention on diary based products like margarine, milk, cooking butter and other milk based
products. The company aims to focus on more products that provide nutritional value with more
usage.
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Market Targeting: The marketing strategy takes into account every individual in the market. The
costumers range from little babies to aged people who can benefit from the product. Every
household has either one or two products minimum. The company is growing to gather even
more consumers. For example, in UK the residents are demarcated into 6 groups where the
company’s products are used. They are poor, average, rich, children, adults and elderly people.
Positioning products across the world with proper branding is essential to the company. It
informs the consumers of the quality of the products whenever they are being purchased. The
company has its largest market in Asia. The price differs according to the type of the product.
The company applies all the tools and instruments for the promotion of its products that are
available to marketers. These products are across 150 countries. The different brands have varied
branding strategy but each carries the logo, design, ideology and message of the company. The
logo of the company has 25 icons which represents things significant to the company. The lock
of hair symbolizes shampoo, spoon symbolizes ice cream, and all the small icons have meaning.
The company employs more than 170000 employees across the world including several retailers
and distributors. The products are packaged in plastics packets, and can be brought from retail
stores, malls and even online (Economist, 2014).
Marketing positioning: The company has around 7000 marketers and brand associates across the
world. Therefore, working together is a huge task for the company. The company is the second
largest advertiser and has two billion individuals in 180 markets. The company pursues three
factors for its marketing strategy the first is to put people first. People occupy the central position
in everything the company does. Unilever is concerned about real people with real lives and their
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requirements. The second pillar of their marketing strategy is indispensable brands. The brands
of the company are created with a clear purpose; the aim is to provide the consumers with the
brand they cannot live without. Their third pillar of marketing strategy is magical experiences.
The brands goal is to unlock the emotion and provide a magical experience to the buyer (The
Economist, 2014).
Issue 5: Developing Marketing Tactics
The marketing mix is analysis by examining the P’s of a very popular product of Unilever that is
Dove.
Price: Marketing mix in terms of price can be understood by taking an example of a popular
product of the company i.e. Dove shampoo. This shampoo is considered very economical for
good hair. Even the soaps come in very simple packaging with logo in the center. This makes the
product a very low cost product. Also to have a better pricing the product has a group where the
consumers get discounted or free products when they persuade their friends and people around to
buy the product. Dove has always taken into consideration the pricing strategy of the competitors
and has developed its own pricing strategies as per the interest and profits of the company. Their
biggest competitor is Proctor and Gamble and their goods in the same segment is Pantene. The
way the company acquire their prices in the long run decides their competitiveness and profit.
Product: The product Dove holds a very significant market. They have several products in this
category like anti Dandruff, Anti Tangle, Dove for men etc. The company focuses on
understanding every individual in the market by aiming to find out what the consumers might
require in the shower and after shower (Davies, 2016). In case of UK the climate is mostly cold,
so the consumers buy products that can moisturize and make the skin soft. As per the
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demographic status of the country, the country has more females than males and in terms of age
it caters to all age groups beginning from five years of age. Therefore, products like Anti Tangle
and deep moisturizer suits more as per UK’s demographics.
Promotion: The product Dove has several marketing strategies floating all over the internet.
Their promotions provide good bargains to the consumers where they can buy in good volumes
and pay less than half the price. The company even offers several free products like napkins,
containers etc. The company’s promotional strategy is very strong and customers get attracted
towards the product just by its smell and price itself. Unilever also uses promotion booths,
columns of the leading newspapers and magazines, and previous customer’s testimonials to
attract more buyers. Television is a great tool used by the company the advertisement showcases
how can be made more soft and supple by presenting brilliant pictures of comfort and smell for
the consumers. Famous celebrities and trendy one liner help in promotion of the products (Trefis
Team, 2015).
Place: In European Union the trade is free in various parts and Dove is used and exported
around. Dove products are available in big supermarkets and in several small outlets like 7
Eleven, Coles etc. Many of its products are sold by way of direct marketing in which the agents
introduce and showcase the benefits and uses of the product and their impact on daily basis on
the consumers. The agents of the company get good remunerations and they cover more market
than supermarkets cover for the product (Askew, 2017).
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Conclusion
The company Unilever enjoys a favorable market position. It has a strong hold on its customer’s
base and is a renowned worldwide brand. The company has a powerful brand portfolio across all
segments. It also has a well-built supply chain which results in lesser lead time and cost. The
company does massive investment in R&D and has exceptional management and human
Resource. It provides well standardized products; the company has a reputation for providing
good quality products ahead of its competitors.
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References
Askew, K. (2017) Unilever's plan to grow in 2017 – 6 things to learn, Available at:
https://www.just-food.com/analysis/unilevers-plan-to-grow-in-2017-6-things-to-
learn_id135588.aspx
Australian Financial (2019) Telstra's strategy is all about killing Optus, Vodafone and TPG,
Available at: https://www.afr.com/chanticleer/telstras-strategy-is-all-about-killing-optus-
vodafone-and-tpg-20180620-h11mtt
Cescau, P. & Rivers, R. (2007) Unilever’s growth strategy, Available at:
https://www.unilever.com/Images/2007-investor-seminar-unilevers-growth-strategy-
presentation-patrick-cescau-ceo_tcm244-422223_en.pdf
Davies, S. (2016) What 449 ‘Failures’ Can Teach Us About Success: Unilever, Available at:
https://www.samuelthomasdavies.com/unilever/
Kissinger, D. (2017) Unilever’s SWOT Analysis & Recommendations, Available at:
http://panmore.com/unilever-swot-analysis-recommendations
Mahajan, V. (2016) How Unilever Reaches Rural Consumers in Emerging Markets, Available
at: https://hbr.org/2016/12/how-unilever-reaches-rural-consumers-in-emerging-markets
Reichert, C. (2018) Telstra2022: Key takeaways from Telstra's new strategy, Available at:
https://www.zdnet.com/article/telstra2022-key-takeaways-from-telstras-new-strategy/
Roderick, L. (2017) Unilever’s sustainable brands grow 50% faster than the rest of the business,
Available at: https://www.marketingweek.com/2017/05/18/unilever-sustainable-brands-growth/
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Sasser, W., Knoop, C. & Reavis, C. (2017) Australia's Telstra Corp. (B): The Countdown 5C
Analysis - Marketing, Available at:
http://blueoceanuniversity.com/frontpage/marketing5canalysis/15857-countdown-telstra
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https://www.economist.com/business/2014/08/09/in-search-of-the-good-business
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exec, Available at: https://www.mobilemarketer.com/ex/mobilemarketer/cms/news/strategy/
22108.html
Trefis Team. (2015) Here's How Unilever Plans to Revive Growth, Available at:
https://www.forbes.com/sites/greatspeculations/2015/07/17/heres-how-unilever-plans-to-revive-
growth/#30804f4d7e6c
Unilever PLC. (2017) Unilever’s Sustainable Living brands continue to drive higher rates of
growth, Available at: https://www.unilever.com/news/Press-releases/2017/unilevers-sustainable-
living-brands-continue-to-drive-higher-rates-of-growth.html
Unilever (2014) Introduction to Unilever, Available at:
https://www.unilever.com/Images/ir_introduction-to-unilever-nov-2014-update_tcm244-
421552_en.pdf
Uren, S. (2011) 6 ways Unilever has achieved success through sustainability - and how your
business can too, Available at: https://www.forumforthefuture.org/blog/6-ways-unilever-has-
achieved-success-through-sustainability-and-how-your-business-can-too
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Young, J. (2017) Unilever’s Generic Strategy & Intensive Growth Strategies, Available at:
http://panmore.com/unilever-generic-strategy-intensive-growth-strategies
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