Unilever's Comprehensive Marketing Plan for Sao Tome and Principe

This report provides a comprehensive marketing plan for Unilever's expansion into Sao Tome and Principe. It begins with an analysis of the external market using a PESTEL framework, assessing political, economic, social, technological, environmental, and legal factors. The plan then outlines market entry strategies, focusing on segmentation, targeting, and positioning (STP) to identify key consumer segments and tailor marketing efforts. The implementation plan details the marketing mix (product, price, promotion, place, people, process, and physical evidence) and discusses performance management, including planning, monitoring, reviewing, and rewarding. The report also includes financial projections and a discussion of return on investment (ROI), providing a complete overview of Unilever's strategic approach to entering and succeeding in the new market. This detailed analysis aims to guide Unilever in effectively launching its diverse range of products and services, adapting to local market conditions, and achieving sustainable growth.

MARKETING PLANNING

Table of Contents
1 MARKETING OBJECTIVES AND STRATEGY......................................................................3
1.1 MARKET ENTRY STRATEGIES..................................................................................3
1.2 STP – SEGMENTATION, TARGETTING AND POSITIONING.................................4
2 MARKETING IMPLEMENTATION PLAN..............................................................................5
2.1 MARKETING MIX.........................................................................................................5
2.2 PERFORMANCE MANAGEMENT...............................................................................7
2.3 FINANCIAL PROJECTION............................................................................................8
2.4 RETURN ON INVESTMENT.........................................................................................8
REFERENCES................................................................................................................................9

1 MARKETING OBJECTIVES AND STRATEGY
1.1 MARKET ENTRY STRATEGIES
Unilever is the global company which is produce various products and services. It is one
of the most effective think is to expand their business new market. Unilever should be operates
layout in Sao Tome and Principe. In order to expand business here is important to analysis the
external market with the help of PESTEL Analysis which is underneath:
Political factor
The political factor plays an important role in order to determining the factors which can
be impact to Unilever business for expand business in Sao Tome and Principe. Political system is
the strong demographic setup and effective rule of laws. At present, the political stability of
country is stable which is main opportunity for the Unilever, because this will minimize
challenges of company while entering in Sao Tome and Principe. Political Stability will help in
establishing business easily but rapid shift in political environment of the country might lead to
failure as well.
Economic factor
Economic factor includes exchange rate, inflation rate, interest rate, unemployment rate.
The unemployment rate is high and this is beneficial for Unilever in order to expand business in
effective manner (Bismark and et.al., 2018). In that cases, they can hire new candidate for
company who can complete work in an effective manner. This will help to Unilever in order to
operates in Sao Tome and Principe. Strong and fairly stable economy of Sao Tome and Principe
will help in strongly setting up business but only two sectors i.e. Petroleum and Banking have
been able to hold in this economy so entering new market can be challenging.
Social factor
Social factor is include the culture and lifestyle of people. This can be affect to Unilever
in negative and positive manner in order to expand business in Sao Tome and Principe. Unilever
sales all kinds of products which are basic needs of people. In this case this is also beneficial for
Unilever in order to entry in Sao Tome and Principe for expand business and growth. However,
Unilever needs to regularly adapt themselves to changing tastes and preferences.
Technological factor

Technological factors are related with the change in technology of production and
distribution of the products of the company. Unilever should make improvements in the tools
and techniques it will use for starting business in Sao Tome and Principe. Further, company
should be aware of technological laws that companies in the country have to comply. Adapting
to technological changes will help Unilever to reduce its cost of operations (Perera, 2017).
Environmental factor
Sao Tome and Principe is having diverse climate, geography and wildlife. There is
sometimes changes in wind speeds and rainfall. Therefore, Unilever should consider all these
factors while entering into the market of Sao Tome and Principe for offering the products to
targeted segment of customer's. Further, there are various laws formed by the Government of
Sao Tome and Principe such as The National Environmental Protection Act that deals with the
impact of various matters on environment.
Legal factor
Legal factors consist of legal laws and regulations formed by the Government of the
country that are to be followed by the organization. Unilever should be aware of all the legal
laws that are applicable on companies that are operating in Sao Tome and Principe. Unilever
should comply all legal laws such as competitive regulations, employment law, data protection
act, intellectual property rights act etc (Aithal, Shailashree and Kumar, 2016)
1.2 STP – SEGMENTATION, TARGETTING AND POSITIONING
Segmentation
Unilever intends to expand themselves in Sao Tome and Principe and the major segments that
they should focus upon are demographic and behavioural. The demographic factor like age can
be used and Unilever can target consumers from age group of 15-50 years, based on different
stages of life and also on their income level. For e.g. products like sunscreen creams, creams,
moisturisers etc. with high SPF levels will be more preferred and therefore these can be used to
segment consumers form lower to higher income level. Another segment is Behavioural under
which consumers can be segmented on their buying behaviour tendencies etc. and Unilever can
segment on basis of benefits like products having higher SPF will be preferred by residents of
Sao Tome and Principes and products like Vaseline, White Beauty should not be marketed since
the environment is warm and humid (Camilleri, 2018).

Targetting
Targeting is done after segmentation when marketer has identified how he needs to segment the
potential customers, he needs to identify and implement those strategies that will help him in
targeting and capturing the segmented market. Unilever has products from lower to high price
arrange and therefore middle and higher income level consumers can be targeted. For children,
Ben & Jerry's, Popsicle, Pot Noodle can be used to target them; for women, Aviance, Dove etc.
can be used; for men Dollar Shave Club, Brylcreem etc. can be used and for old age people
Fissan, Close-up etc. can be used. These will help in attracting all the segments and Unilever
should portray the image of having something for all consumer segments (Arsova and
Temjanovski, 2019).
Positioning
The company uses different marketing strategies that help a firm to reach with wide
range of group such as digital technology in which it uses social media as a marketing tool
(Gomez and et.al., 2019). for that, the company uses Penetration Pricing as a positioning strategy
that helps a firm to position itself in Sao Tome and Principe. At present, the company uses
discount pricing strategy that helps a firm to stay in top in Sao Tome and Principe.
2 MARKETING IMPLEMENTATION PLAN
It is the second stage of marketing plan in which plan is implemented. Thus, in this
section, marketing mix is discusses which helps to promote the product in market. Further,
performance management is discussed in which the performance management tool is discussed.
Lastly, it present financial projection in which actual budget is presented that helps to determine
how much amount Is needed for the expansion.
2.1 MARKETING MIX
Marketing mix is the set of all actions and the strategies which a company uses in order
to promote the products and services into market. In the same way, currently Unilever also uses
all 7 P's of marketing mix in order to promote the products in Sao Tome and Principe. Thus,
these are as mention below:
Products: Unilever can expand its business by offering different products, such that the
company composed of 400 brands and it also offer the products in different categories such as

foods, refreshment, home care and personal care. The same are also offered in Sao Tome and
Principe and among its food product, the company offer Best Food Mayonnaise and sandwich
spreads and further it also offer some Knorr Soups and Brook Bond Tea as well (Haider and
et.al., 2019). Apart from this, the company acquired title of Best Food in 2000 and this shows
that the firm have diversified food ranges (Marketing mix, 2018).
Price: As Unilever provides diversified food products which shows that it also maintain
wide range of price points too. Such that to attract wide range of public, the company uses
discount strategy, under which initially, Unilever can easily use strategies like buy one get one
free and even in the regular products, it could offer 10% off. This strategy may help in gaining
better competitive advantages in Sao Tome and Principe.
Promotion: As the company expand its business and for that, it has to promote its
products and that is why, it uses advertising in which the company distribute the paper in which
the entire products list is mention at discount prices. Or the company also uses banner or
hoarding as a promotional strategy. On the other side, initially it also offer discount strategy that
helps a firm to attract wide range of public and increases the sales as well. Moreover, the
company also use social media as a marketing tool in which it advertise the offered products into
market that helps to attract large mass of people. All these collectively will help Unilever in
establishing themselves in Sao Tome and Principe.
Place: Currently, the company operates its unit at global level, such that it operates in
more than 190 countries. In order to enter into new market that is Sao Tome and Principe in
which there is not tough competition from their rival, thus the firm currently place in middle
level and by offering best pricing strategy, it will easily crawl up to top (Hayat and et.al., 2019).
People: All the new employee in the organization is given the training about the function
to be performed in the organization which helps the business in retaining the employee for longer
period of time (Saidani and Sudiarditha, 2019). Company will be offering the different good
amount of wages and incentive to attract the employee in an organization. They will be trained
about taste and preferences related to local people and the best strategy can be to employ native
people in their stores as they will able to address the problems and queries of local visitors in
better manner.
Process: Unilever generally used the research and development as a primary process in
the organization in which company used to invest heavily on the research and development for

manufacturing of the product. Unilever will follow same technique in the Sao Tome and Principe
in which company will be investing heavily in research and development process and will
produce product after getting the information from the market. (Larsson and Jakobsson, 2019).
Also, the entire supply chain management in Sa Tome and Principe will be as per the suitability
of consumption in that area.
Physical Evidence: As Unilever has more than 400 brands of the product registered
under own name. Unilever will be using the Logo of the company as the promotional tool in the
Sao Tome and Principe to create the physical evidence. Also, the varied colours, sizes and tag-
lines that brand has will be used to segregate one brand form another and easily catching eye of
the people.
2.2 PERFORMANCE MANAGEMENT
Unilever will be using performance management cycle as a important component in achieving
organizational goal and getting the competitive advantage. Performance cycle is divided into 4
strategic phrase.
Planning: It is the first phrase of the performance cycle in which Unilever will be making the
proper strategic plan which will includes developing plan then identifying future performance
goal of employee in Sao Tome and Principe and also behaviour and action.
Monitoring: it is the second phase of the cycle in which Unilever will be reviewing the
performance of the employee on the regular basis, which will help the Unilever in making sure
that plan is on track.
Reviewing: it is the third phase of the management cycle in which Unilever will be reviewing
the result on the annual basis. It will be done with the help of knowing how effectively goal are
achieved.
Rewarding: it is the last phase of the cycle in which Unilever will be rewarding the
extraordinary performance which will motivate them to work more better in future (Performance
management cycle, 2016)
Marketing Tool
Survey: It is the marketing tool which will be used by the company to develop the relation with
the customer directly as Unilever will be in touch with the customer to get the information about
what is needed in the market and thus targeting and garnering customer loyalty in a much more
effective manner.

Customer loyalty program: Unilever will be organizing different different customer loyalty
program which will help the business in building the goodwill of the company. As loyalty
program will help Unilever in bringing the customer frequently. Organizing contests, giving
good rewards, good after sale services, supplying best quality products etc. are some aspects
which can help in increasing and retaining customer loyalty.
2.3 FINANCIAL PROJECTION
Expenses Cost in £
Human Resource wages 165000
Training Expenses 120000
Raw Material & techniques adoption 200000
Contingency 45000
Total 430000
2.4 RETURN ON INVESTMENT
ROI is the profitability ratio which is used to measure the return which has been generated by the
organization on the investment which has been done by the organization.
Cash flow for the first year 230000, Cash flow for the second year 150000, cash flow for the
third year 50000, cash flow of fourth year 150000. IRR is calculated at the rate 10 percent.
{cash flow of 1 year/ IRR cash flow of 2 year/ IRR cash flow of 3 year/ IRR cash flow of 4 year/
IRR} – Investment = ROI
{230000/10 + 150000/10 + 50000/10 + 150000/10} – 430000 = 92000
Thus, it can be clearly identified that the plan of expanding Unilever's business in Sao Tome and
Principe appears to be a profitable venture as the IRR gives favourable i.e. positive return
indicating that investment in Sao Tome and Principe should be made.

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