Unilever's Marketing Strategies: A Case Study Report

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MARKETING ESSENTIALS
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Contents
LIST OF FIGURES..........................................................................................................................................3
INTRODUCTION...........................................................................................................................................4
LO1..............................................................................................................................................................5
P1.............................................................................................................................................................5
P2 AND M1..............................................................................................................................................6
M2...........................................................................................................................................................8
LO2............................................................................................................................................................10
P3...........................................................................................................................................................10
M3.........................................................................................................................................................13
LO3............................................................................................................................................................15
P4 AND M4............................................................................................................................................15
EXECUTIVE SUMMARY.......................................................................................................................15
INTRODUCTION.................................................................................................................................15
SITUATION ANALYSIS.........................................................................................................................16
MARKETING OBJECTIVES...................................................................................................................17
MARKETING STRATEGY......................................................................................................................18
IMPLEMENTATION.............................................................................................................................19
ACTION..............................................................................................................................................20
CONTROL...........................................................................................................................................20
CONCLUSION.............................................................................................................................................21
REFERENCES..............................................................................................................................................22
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LIST OF FIGURES
Figure 1: Unilever Logo................................................................................................................................4
Figure 2: Marketing Mix............................................................................................................................11
Figure 3: SMART Objectives.......................................................................................................................17
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INTRODUCTION
Marketing is one of the most essential processes conducted by organizations worldwide to create
awareness of their products and services and to increase their customer base. The marketing plays a
vital role in any organization and different types of marketing plans are developed by firms to achieve
the marketing objectives (Blythe and Martin, 2019).
Unilever is a British multinational organization which is best known for its consumer goods which are
being provided across the globe. The firm was established in 1929 and is headquartered in London,
United Kingdom (Unilever, 2019). Under the name of Unilever, there are about 400 customer brands
through which it provides its products to almost all the areas of the world. The most common product
brands that are sold under the name of Unilever are Dove, Lipton, Knorr, Vaseline, etc. The annual
turnover recorded by the Unilever group in 2018 was €51 billion.
Figure 1: Unilever Logo
[Source: Unilever, 2019]
Through this report, the importance of marketing is being studied wherein the roles and responsibilities
of the marketing function in Unilever. The report would also cover the relationship of marketing
function with different departments in the firm. Through this report, the different elements of the
marketing mix used by Unilever have been studied and different tactics applied by the firm has also
been determined. This report would also cover a marketing plan which has been developed for Unilever
which can be adopted by the firm to gain higher results from their marketing efforts.
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LO1
P1
Marketing is a set of all the required activities conducted in an organization for creating awareness of its
products or services in the market. The marketing function has been considered as an essential element
which allows an organization in exchange relationships with customers and uses different methods for
increasing their satisfaction level (Fahy and Jobber, 2015). Marketing focuses on customers and their
management and is one of the crucial components of an organization. Unilever has been able to expand
its business internationally with the help of strong marketing activities in different countries. There are
various roles and responsibilities of the marketing function in Unilever, which have been discussed in the
following:
 Defining marketing objectives
One of the major roles performed by marketing function is determining the marketing
objectives of Unilever so that they can streamline the activities required for their fulfillment.
These marketing objectives allow the employees of Unilever in understanding what has to be
achieved by them by performing certain tasks (Baker, 2016).
 Identification of customer needs
Another major function of the marketing department is identifying the needs of customers and
developing a product for the same. The marketing function of Unilever has studied the market
and determined the problems that are being faced by the customers and developing an
innovative product so that their needs can be satisfied.
 Development of marketing strategies
Marketing function allows Unilever in adopting different marketing strategies through which
they can sustain in the rigid competition of consumable goods industry and sustain their huge
market share (Moorman and Day, 2016). These marketing strategies made by Unilever include
product development strategies, pricing strategies, distribution strategies, etc.
 Building connections with customers
The marketing function has also allowed Unilever in building strong connections with the
customers by providing them with their demands and high-quality products (Jobber and Ellis-
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Chadwick, 2012). Unilever has developed a varied range of products with the help of which it is
able to satisfy the needs and demand in the market and relish highly satisfied customers.
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P2 AND M1
The marketing function has been considered as a significant function through which organizations are
able to promote their products and services in the markets and attract customers for purchasing its
products. Through following the process of marketing, Unilever is able to successfully promote the
brands under its name and ensure customers with the quality of products provided to them (Lusch and
Vargo, 2014). The concept of marketing in an organization covers majorly four concepts with the help of
which the objectives of marketing are being decided. The product concept is the first concept which
allows Unilever in determining the range of products which are to be provided to the customers for
consumption. This concept helps an organization in developing a product considering the needs of
customers.
The second concept is the production concept which allows Unilever in understanding the different
methods of production it can adapt and select the production process which would incur the lowest cost
and highest productivity (Armstrong et al., 2014). Through this concept, the production process of
products is being done. Selling concept is the third concept which assists Unilever in reaching out to the
customers for selling the products that have been manufactured. This concept allows Unilever in
adapting different promotional activities for selling its diverse range of products. The fourth concept is
the social marketing concept which allows Unilever in promoting its products while considering the
social benefits that are to be provided to the society while promoting the products.
The process of marketing followed by Unilever firstly determines the needs of customers which are
known by them through studying the market. This not only allows Unilever in knowing the needs of the
customers but also enables the firm in understanding the frequent changes in the business environment
and make use of them in promoting the products to customers (Wilson and Gilligan, 2012). The
marketing process also includes the development of marketing strategies which allows the organization
in gaining strategic benefits instead of generic benefits. Unilever has been able to strategies the plans it
adopts for marketing so that possibilities of failure can be eliminated. Monitoring competition in the
market is also a basic role which is played by the marketing department of Unilever. Through this role,
Unilever is able to understand the level of competition in the market and the different approaches used
by the competitors in attracting customers.
Marketing function also monitors the competition in the business environment so that it can develop
marketing strategies so that they can meet up the competition in the market. This role of marketing
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performed by Unilever assists the firm in developing healthy competitive strategies and maintains a
positive environment in the industry as well. Marketing function also plays an important role in directing
the needs of the customers with the aims of Unilever. This is an important role performed by Unilever
through which they are able to convert the needs of the market into business opportunities and direct
them towards the ultimate aim of the organization (Burns et al., 2014). Through this function, Unilever is
able to develop its products and promote them in the market while fulfilling the objective decided by
the organization.
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M2
The marketing function is a vital function which is performed by the marketing department of Unilever
and holds huge importance in the firm. However, it has been a key role of Unilever in maintaining
harmony between all the other departments in context with the marketing department (Blythe and
Martin, 2019). The marketing department has to work together with different other departments of
Unilever so that they can together increase the efficiency of tasks performed by them and achieve the
aim of the organization. Following is the interrelationship of the marketing department with other
functional departments of Unilever:
 Finance Department
The marketing department of Unilever has a strong interrelationship with the finance
department. The main reason behind the strong relationship between the two departments is
that the finance department provides funds and finances to the marketing department for
carrying out marketing activities (Ganesan, 2012). On the other hand, the result of efforts of the
marketing department generates income for Unilever which is being handled by the finance
department. Finance department measures the return which has been produced by the
marketing activities while comparing them with the investments made into them.
 Human Resource Department
The marketing department of Unilever is also strongly connected with the human resource
department as it provides man force for the marketing department. The human resource
department provides the right employees to the marketing department so that they can work
efficiently in their areas (Storey, 2014). Also, the human resource department conducts training
and development activities through which the marketing department’s employees are able to
generate higher productivity.
 Research and Development Department
The research and development department also holds a strong interrelation with the marketing
department of Unilever. The R&D department of Unilever identifies the current and future
scope of business environment based upon which the marketing department is able to
strategize its marketing objectives and develop a marketing plan for its achievements.
 Productions Department
The marketing department of Unilever also has interrelation with the productions department
as they promote what is being produced by the productions department. What the marketing
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department promotes has to be fulfilled by the productions department. Also, the productions
department has to fulfill the quality which has been promised by the marketing department in
the market (Boone and Kurtz, 2013). Maintaining harmony between these two departments is
essential for Unilever as the marketing department promotes the products based upon what is
being developed by the production department.
 Customer Service Department
The marketing department also has an interrelation with the customer service department as
any hindrance with the products or quality is being communicated to the customer service
department of Unilever and they have to resolve the issues of customers quickly (Jobber and
Ellis-Chadwick, 2012). The customer service department of Unilever ensures that the promises
made by the marketing department are fulfilled by them.
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LO2
P3
Marketing mix refers to the different elements of marketing function which together leads to the
achievement of the marketing objective of an organization. It is the mix of all the elements considered
by an organization to influence the customers (JAIN, 2017). Procter & Gamble is a major competitor of
Unilever in the customers market. The major elements of the marketing mix of Unilever in comparison
to that of Procter & Gamble are being studied in the following:
 Product
A product or product mix refers to all the facilities which are being provided to the customers by
the firm in the form of a product. Unilever has a varied range of products which are being widely
consumed in almost all parts of the globe (Khan, 2014). Of all the key areas which are being
tapped by Unilever through its product mix are Foods and refreshments, Home Care products
and Personal Care Products. Similarly, Procter & Gamble also has a varied range of products
provided to the customers, mainly being Personal Care and household products.
 Price
Price refers to the cost which is being charged by the customers in return of the consumption of
organizational products. Because of the varied range of product mix held by Unilever, the pricing
strategies are also varied depending upon the segment of customers being served to. The firm
prices its products through market-oriented pricing to premium prices of certain products
(Armstrong et al., 2014). The firm faces strong competition from Procter & Gamble as it also
prices its products differently; depending upon the type of customer segment it is serving.
 Place
Place refers to the locations in which products of the organization are being made available.
They might include the reach of distribution channels of firms. Unilever relishes a strong
distribution channel serving its 400 brands in about 190 countries across the globe (Wilson and
Gilligan, 2012). The main backbone of Unilever is the strong logistics and supply chain
management of its products globally. Procter & Gamble, on the other hand, also has established
a powerful distribution network but unlike Unilever, it is available in only 180 countries of the
world.
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