Marketing Essentials Report: Unilever's Marketing Strategies Analysis

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This report provides a comprehensive analysis of Unilever's marketing strategies, focusing on the roles and responsibilities of the marketing function within the organization. It explores how these roles are implemented and examines the interrelationship between the marketing function and other functional units, such as finance, human resources, production, and IT. The report further investigates the application of the 7Ps of the marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence) by Unilever and compares it with Nestlé, highlighting the tactics employed to achieve business objectives. Finally, it includes a basic marketing plan for Unilever, offering insights into the company's approach to the market. The report utilizes various academic sources to support its findings.
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MARKETING ESSENTIALS
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Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Roles and responsibility of marketing function.......................................................................................3
Explanation of how these roles and responsibilities of marketing are related to chosen organization.....4
Interrelationship between marketing function and various functional units of an organization...............4
TASK 2.......................................................................................................................................................5
Various tactics applied by organizations for demonstrating their business objectives in order to
achieved through using Marketing mix...................................................................................................5
TASK 3.......................................................................................................................................................9
Marketing plan for the chosen organization.............................................................................................9
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14
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INTRODUCTION
Marketing refers to action of an organization for selling and promoting their goods and services.
It includes advertising and marketing research (Armstrong, Kotler and Brennan, 2018). Marketing
essentials involve various tactics, publicity campaigns, formulation of strategies and product designing in
order to gain competitive edge in the marketing. It also includes 7ps of marketing mix that it used by
organization.
The study is based on Unilever. It is a British Dutch consumer goods firm operates world widely.
The company is founded on 2 September in the year 1929. The founders are William Lever, James Darcy,
Leverhulme and Samuel van den Bergh. It came up with a merger between Lever brother’s branch and
Margarine Unie line. The company deals in products which are beauty, food and refreshments, personal
care and cleaning products. The headquarters of the firm are located in London, England in United
Kingdom. The company is listed on London Stock Exchange.
The study will explain responsibility and roles of marketing function. It will describe how these
roles and responsibilities can relate in organizational context. Further, it will demonstrate interrelationship
between functional units and marketing function. Moreover, the study will compare various ways by
which organizations applied marketing mix in order to achieve their business objectives. Lastly, report
will include a basic marketing plan for the chosen organization.
TASK 1
Roles and responsibility of marketing function
Marketing functions key roles and responsibilities are as follows -
Marketing function helps to identify the customer needs.
It anticipates the requirements of customers (Philip, 2017).
This function helps to satisfy the needs of customers.
Marketing function is also responsible for product development.
The marketing function assists a business to do promotional activities.
The function is also responsible for internal communication.
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Explanation of how these roles and responsibilities of marketing are related to chosen
organization
Marketing function in Unilever does market research in order to survive in the competition. For
identifying the customer needs the function us responsible for doing depth market study (Perreault, 2018).
This helps the company to get updated with the current market trends. By doing that they are able to make
change in production function and will be produce goods as per the customer needs.
Marketing function work is to do promotional activities in Unilever. They use various
promotional tactics and strategies in order to boost their sales. They try to promote their products in cost
effective manner. Marketing function is also obliged to do advertisement of the products of Unilever
through this they are able to cover large audience and able to increase the brand awareness among the
customers.
Marketing function also facilitate the Unilever to produce high quality products for the
customers. On the basis of the research marketing function provides insights which are helpful for
improving the qualities of the products (Baker and Saren, 2016). By producing high quality products in
the company, the sales get increased.
Internal communication is another aspect of marketing function. The role is to build good
relationships with various departments of Unilever. Marketing function helps to maintain communication
among the various business sections, through this business is able to grow more.
Interrelationship between marketing function and various functional units of an organization
Interrelationship between marketing and other functional units in Unilever are as follows -
Marketing with finance - Marketing function of Unilever formulate various strategies through which
finance unit of the company do budgeting of the products. For doing promotion and advertisement of the
Unilever products, this involves high costs (Steven, 2016). Thus, the finance unit takes consideration of
cost and profit margin and then prepare marketing budget. They provide finance to do promotional
activities in cost efficient manner.
Marketing with Human resource - The prime function of Human resource department of Unilever is to
recruit appropriate and suitable candidate or employees for the vacant job role in the company. Human
resource department also responsible for hiring best marketing experts that can able to formulate best
marketing strategies for Unilever. The marketing experts which are hired by HR department of the
company help to do promotional activities. For increasing the sales of firm it is essential to hire best
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people who are able to perform effectively. HR department of Unilever also provides training to the
employees so that they are able to perform marketing tasks effectively in organization.
Marketing with production - The production function of Unilever is responsible to produce the products
as per the choices and preferences of the customers (SHUKLA, 2016). Thus, the marketing function does
depth research and provides consumer insights to the production department. Marketing function gives
updates of market scenario to production department so that they are able to produce products which are
in customer demand.
Marketing with information technology - Marketing and information technology department of
Unilever works on together basis for ensuring that organization and marketing objectives of the company
gets achieved. It department of the firm provides latest technological equipment through which marketing
function is easily done in the organization. Various marketing software’s are used by marketing
department for resolve the customer’s problems in the business. For doing promotion of the products
again marketing function take help of internet and digital marketing to increase the sales.
TASK 2
Various tactics applied by organizations for demonstrating their business objectives in order to achieved
through using Marketing mix
Comparison of Unilever with Nestlé using 7ps of marketing mix –
Unilever Marketing mix
Marketing Mix strategies is developed by Unilever for achieving the desired results in the
marketplace. Through developing strategies the firm is able to address different aspects for each element.
Marketing Mix of Unilever is as follows -
Product - Unilever products includes Food, Personal care, Refreshment, Home care. These products are
offered in 400 brands to the consumers which show their strength in FMCG sector. The products are
available in variety, this facilitate the customers to choose among them as per their choice and preferences
(Cateora, Meyer and Graham, 2020). It makes them unique from their competitors whose products don’t
vary in features, color, taste etc. The products which are offered by Unilever are perceived higher quality
than its competitors. Thus, this helps the Unilever to take competitive advantage and helps in increasing
profitability.
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Price - Unilever used Price penetration strategy in their business (The Marketing Mix, 2020). The price is
set from high quality to low quality pricing. The price of products differentiates as per their quality. The
customers can purchase the products of the company as per their capacity to spend. The company also
uses competitive pricing strategy in which it spends on market research. Thus, price of the goods are set
as per the current market conditions. Some of the company's products are categorized in prestige and
premium products which usually sale at high price.
Place - Unilever tend to operates more than in one ninety countries. They have various distributors and
retailers which are located across the world and sale the products of the company effectively (Deepak.
and Jeyakumar, 2019). The company takes help of global manufacturing; it helps them to cut down the
business costs. The distribution network of the company is huge. Warehouse is also set at middle of the
cities where the C&F agents can easily transports the products of the company. Direct outlets of the firm
include Jerry Scoop shops and T2 and Ben. The company has seventy offices which are located world
widely.
Promotion - The Unilever spends more on marketing and promotion of their goods and services. The
average market spend is of worth 8 billion in a year. The Unilever is using Digital marketing strategy to
increase its sales of products. This strategy is integrated with ecommerce in order to drive sales. The
Unilever use Digital campaigns which includes the demonstration of their beauty and personal care
products, also provides online videos about their use. For example, it uses Dove self Esteem project that
is part of their marketing campaign. In addition the Unilever also telecast their advertisement by doing
collaboration with celebrities in order to boost the sales of company's products. The company's other
promotion ways includes print media, OOH media and hoardings.
People - The people who are working for Unilever plays vital role in doing marketing of their products.
The sales and marketing team of Unilever shows high efforts for increasing the sales of the company. The
firm provides training to its employees in order to pursue various marketing techniques; by this the sales
of the company get increased. There are people who are working in service department of customers; they
are hired for resolving the customer’s issues, queries and problems. The people are trained to deliver the
best solutions to the customer’s issues. The suppliers help to deliver the raw materials on timely basis, by
which the production of the company’s products gets done. They provide raw material which are of high
quality and results into quality improved final product. Retail stores workers of the company also assist
the customers to choose the product which best suits on them. Thus, the customer’s satisfaction gets
increased in the firm.
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Process - Unilever process ensure that products are available in their retail stores, for this they have
installed system which informs the retailers if they have low inventory levels (Hollensen, 2019). This
helps the retailers to replenish the stocks. In online delivery process the computer system received orders
and through this the products are shipped to the company's delivery centers. The company is highly
involved in research and development for introducing new innovative products to the customers. It helps
them to take competitive edge.
Physical Evidence - Unilever sales their products which comes under distinct packaging and colors,
through this the customers can easily identifies the Unilever products in the shelves of retailers. Unilever
also have online website in which the customers can view the products in HD quality that are taken from
different angles. This assists the customers to make the choice of Unilever products.
Figure 1 7ps of marketing mix (Source: The Marketing Mix, 2020)
Marketing mix of Nestlé
It is a Swiss multinational food processing industry. The company is founded in the year 1866. It
is founded by Henri Nestlé. The company products include coffee, chocolates, confectionery, food,
breakfast cereals, bottled water and ice cream. The headquarters of the firm are situated in Vevey, Vaud
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in Switzerland. It is one of the biggest competitors of Unilever. Marketing mix strategies of Unilever is as
follows -
Product - Nestlé offers wide variety of products that comprises of food, nutrition, and health. These
products fulfill specific requirements and needs of the customers (Liu, Li, Chen and Balachander, 2017).
The products are categorized under baby foods, breakfast cereals, bottled water, confectionery,
chocolates, coffee, ice cream and dairy products. Nestlé is known for its quality and taste. Beyond this the
company ensures that their products look attractive and different from its competitors. They tend to add
the features in their products which make them look attractive in the eyes of customers.
Price - Nestlé do pricing of its products as per their quality (Faith and Agwu, 2018). Nestlé products are
generally of high range. Nestlé focuses mainly on quality rather than reducing the price of products.
Because of the quality the customers don't feel hesitate to pay for what they received. Nestlé also provides
various discounts on festive session. For the chocolate range Nestlé generally use competitive pricing
strategy to make their product look differs from its competitors such as Cadbury. Thus, the company sets
the price of its products by identifying the current market conditions and its competitors.
Place - The company sales their products in eighty countries. They have established 447 factories all over
the globe. Nestlé usually sales and generate high revenue from European countries. The distribution
channel which is used by Nestlé is FMCG (Wu and Li, 2018). The products are sending in bulk to C&F.
This a kind of warehouse in which the company's products are kept. Then it sends to retailers from the
company's distributors. The company comes up with various discounting tactics in order to keep their
distribution network busy.
Promotion - The Company came up with unique ideas for doing marketing of its products. Nestlé is
focused on extensive advertising. For doing marketing of their products they do advertisement in unique
way. For example, in case of Maggi they associated it with two minute of snack. Another example is
Nescafe, they bought it with Nescafe tunes, it is still in mind of people. Nestlé take help of print media,
television and online advertising for doing promotion of its products. In festive season they also give
offers to customers such as discounts n order to increase the sales.
People - Nestlé trains their employees so that they are able to tackle the customers queries and problems
and able to provide them efficient solutions. The company also provides customer service in order to
increase the satisfaction level of customers.
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Process - Nestlé use vending machine in order to serve their customers better. Various technologies
equipments and software’s are used by the company in order to make the production and marketing
function easiest (Blut, Teller and Floh, 2018).
Physical Evidence - The Company set up coffee corners and also set logo of Nescafe in their vending
machines by which the customers can easily identify the company's products. The company also uses
unique packaging style in order to attract the customers towards their products.
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TASK 3
Marketing plan for the chosen organization
Marketing Plan for Unilever
Executive Summary - Unilever had launched a new product named as Biotin Volumizing Shampoo. This
product is blend with Vitamin, (B7 Biotin). The product contain Oat extract with premium ingredients
that helps to give strengths and nutrients to hairs by which they look thicker and healthier. It helps to
Volumize the hairs. The Marketing plan had made for Unilever in order to achieve the desired objectives
of the company. It had covered Mission, Vision and objectives of the company. Furthermore, it had
covered SWOT analysis for identifying the internal environment of firm. Then, it had included STP
analysis. Marketing mix had covered for the newly launched product. Lastly, it had covered marketing
budget and evaluation.
Mission - To add value and vitality in the life. The company mission is to meet every day needs of the
customers for ensuring nutrition, personal care and hygiene with the help of their brands.
Vision - The company seeks to fulfill the customers’ requirements by providing them daily needs
products.
Objectives of Unilever
To increase the customers satisfaction in the company.
To provide high quality products to the customers.
To increase the sales.
SWOT Analysis:
1. Strength
The Unilever Company has strong brands; therefore the company has a strong base for growth
which can also bear loss if any.
The company also has broad product mix which enables the company to take big risks and by
which company is able to resist the loss.
2. Weakness
The company's biggest weakness is its imitable products which has a very short life and they
spoils in very short period of time due to no use of chemicals in production.
The company has limited business diversification and thus is unable to capture a huge market and
has restricted to a small market (Kuntonbutr, 2019).
3. Opportunity
Organic products are one of the biggest opportunities for the company as the company is almost
an organic food producer and as the demand for organic food is increasing day by day.
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Unilever's product attracts the consumer as addressing the needs of increasing health
consciousness.
4. Threat
The tough competitive rivalry is growing day by day, as various other companies are coming in
the market and are trying to offer very low prices than Unilever.
Product imitation is one of the biggest threat as many companies are coming who grantees long
life of their product as they use chemicals. But the products of Unilever have a very short life.
STP:
1. Segmenting - Segmenting is the process of identifying the market that is to be segmented. This is a
process which includes identification, selection and application of bases that are to be used in that
segmentation and development of profiles (Dib, 2018). The Unilever company has also done segmenting
which has included identification of the target market, selection of the target market on the basis of
positive and negative points. Also by deeply analyzing each and every markets segment. Unilever offers
their goods and services across a large variety of consumer group with having significant differences in
each and every segment. The company deals with segment marketing and also with local people
individually but the major portion are taken by segment marketing. The marketing segmentation of
Unilever is broadly based on potential consumers.
2. Targeting - Targeting is a process of identifying the most attractive market segment from the stage of
Segmentation. Usually one of the most profitable for the business is selected as target market. The
targeting of Unilever company also includes the number of potential and highly economical buyers which
can be helpful in increasing the profit of the company in the shortest possible time.
3. Positioning - Positioning is the final process and is the more business oriented stage which includes the
assets of the business and its competitive advantage, and position itself in the mind of existing consumers
or the group of new potential consumer from the selected target market. The Unilever company also has
its competitive advantage of producing chemical free products and at the lowest possible price by its
effective and efficient asset's.
Marketing Mix:
1. Product - The Unilever company is going to launch a new product which is named as "Unilever Biotin
Volumizing Shampoo. This product consists of all the natural ingredients that causes no harm to skin and
has no side effects. Some of the ingredients are Aloe Vera, sunflower seed oil, Virgin golden jojoba oil,
Avocado oil, peppermint oil, tomato seed extract and some other natural ingredients. The product is free
of parabens, sulfates, harmful colors and silicon’s.
2. Price - The price of the products of Unilever company is generally high as there are no cheap
ingredients are used and the company is not going to compromise with product quality. Hence the price of
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the product will be high but the quality of the product will be superior and thus the customers will be fully
satisfied and happy.
3. Place - Unilever is operating worldwide and in more than 190 countries. The distribution channel of
Unilever consists of various retailers and distributors which are located worldwide. The company has a
wide distribution network which helps the company to achieve its goal on time. The company also has
warehousing facilities in the city centre where C&F agents are able to transport their products easily.
4. Promotion - The promotion techniques of the Unilever company broadly includes advertising, sales
promotion and social advertising (Eletxigerra, Barrutia and Echebarria, 2018). The advertising method
will help the company to reach every part of the world; the social advertising will help the company to
promote its products on social sites with low cost. And sales promotion will help the company to attract a
large number of consumers by giving attractive offers.
5. People - In a business company also needs to focus on its human resource. The Unilever company
must provide proper training to its employees and is taking care of the personal objectives of the
company. The responsibility of the company is not only towards employees but also with suppliers,
bankers, shareholders and other parties that are having some sort of interest in the business.
6. Process - The company is using various software’s through which they are able to contact with the
dealers and supplies. It facilitates them for immediate and proper supply of required materials. The
company is also using various software’s and technologies which makes a digital and direct
communication with its customers. Also the company is digitally providing after sale services as per
safety measures in recent times.
7. Physical Evidence - The Unilever company is providing various Physical evidences that make the
consumers sure about the quality and efficiency of the product. The company is providing various
customer reviews and recommendations on its official site. And is also providing various trial video’s
which evidences that the product really works as indicated on the labels.
Marketing budget for Unilever
Expenses Budget in ( £) Actual (£)
Marketing research 70 60
Media blog 30 25
Television advertising 200 195
Video and social media
advertisement
160 160
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Software designing (TBD) 30 22
Recruitment of freelance 50 42
Recruitment of full time 9,500 9,400
Total £10,040 £9,904
Evaluation and control - To evaluate the new product which is Biotin Volumizing shampoo, the
Unilever will ask regular feedbacks and reviews of the customers on the online website (Wood and
Jobber, 2016). Through this the company is able to make improvements in the product quality and also be
able to resolve customer’s queries and problems.
Evaluation of Marketing Plan – The Marketing plan of Unilever has been evaluated through the actions
of the competitors as they are the once who helps in measuring the success and failure of marketing plan.
As the competitors try to copy the ideas of firm then it will define the success of Unilever. It is also get
evaluated through the satisfaction level of customers. It has been determined that if the sales performance
gets increased in Unilever than Marketing plan gets success. Return on investment is another way to
measure the success of marketing plan.
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CONCLUSION
It has been concluded from the above report that Marketing plays crucial role to drive a business
towards success. It has been determined that marketing function of company is interlinked with finance,
human resource, and production and information technology. The marketing function is responsible to
identify the current needs and demand of the customers. By studying the attitudes, habits and wants of the
customers, the Unilever is able to produce their products as per the current needs, choice and preferences
of the customers. This will help to boost the customer satisfaction in the company. It has been
summarized that Unilever use effective marketing mix strategies to take a competitive advantage. Nestlé
is one of the competitors of Unilever.
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REFERENCES
Books and Journal
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Armstrong, G.M., Kotler, P. and Brennan, R., 2018. Marketing: an introduction. Pearson UK.
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A meta-
analysis. Journal of Retailing. 94(2). pp.113-135.
Cateora, P.R., Meyer, R.B.M.F. and Graham, J.L., 2020. International marketing. McGraw-Hill
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Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
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dominant logic lens: A review. Journal of Destination Marketing & Management. 9. pp.72-84.
Faith, D.O. and Agwu, E., 2018. A review of the effect of pricing strategies on the purchase of consumer
goods. International Journal of Research in Management, Science & Technology (E-ISSN: 2321-
3264) Vol, 2.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
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Finance Review. 2(1).
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consistency. Journal of Marketing. 81(1). pp.83-102.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice, price,
quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications. 23(2). pp.195-218.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Philip, K., 2017. Principles of marketing. Pearson higher education.
SHUKLA, P., 2016. Essentials of marketing research.
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Steven, P., 2016. Destination marketing: essentials.
Wood, M.B. and Jobber, L., 2016. The marketing plan handbook. Pearson.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
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Online
The Marketing Mix, 2020. [Online]. Available through :<
https://www.business2community.com/marketing/the-marketing-mix-is-it-still-relevant-today-
02298017>
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