Marketing plan for Unilever Company

Marketing plan for Unilever Company Purpose of the plan The purpose of this marketing plan will be to evaluate the existing retail market strategy for Unilever Company and compare it to the rivals’ strategies. The marketing plan will also be designed after investigating the current trends and developments existing in the retail sector.Advertising We will write a custom assessment sample on Marketing plan for Unilever Company specifically for you for only $16.05 $11/page Learn More Situational Analysis Target market (of current products) The company products prices are easily affordable to all classes of customers since the company uses a value pricing strategy across all the regions where its branches are found. In terms of the products offered, the company boasts of a multi-brand system where the brand names are known by their positive reputation of being high quality products and thus easier to reach a higher market pool than the rivals(Jones 2002). Distribution network The company ha s a well established distribution network in the more than a 100 countries where the company has invested in. This is very helpful since it helps the customers in accessing company products. Competition The completion Unilever company is facing shall be analyzed in the porters 5 keys of competition (Porter 1988) The Threat from New Entrants: (Low) The products offered by Unilever such as the food and personal care require high capital investment to penetrate the market in relation to the established distribution channels which enables to compete effectively. With the company having branches in more than 100 countries and its ability to design its products according to the customers’ needs, reduces any notable threat from new market entrants. Threat of Substitutes (High) With the emphasis on health eating being at its prime, consumers have been turning to other alternatives such as low carbohydrate and calorie diets as a result making the substitutes threat very high. Bargaini ng Power of Suppliers (Low) This has been low due to the fact that Unilever has a very big and well known business unit, which cannot be forced to change (or influenced in any way in their decision making) by other suppliers.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Bargaining Powers of Suppliers (High) The customers, especially those who live in the European Union region, keep on demanding new products and improved features and also diversity in the product prices offered. As a result, the company has been forced to develop new products such as the slimming products. Competition (High) The company faces high competition from companies such as the Novartis, Nestle and DANONE (Neff 2010). As a result, this has forced the company to restructure its program which was aimed at cutting the old portfolio of 1600 brands down to the major 400 core brands. The above rivals are producing similar products to what Unilever and hence the high competition. Financial conditions The company enjoys vast investments almost in every corner of the world as a result currently the financial conditions for Unilever can be described as stable External forces Political The company operates literally everywhere in the world both in the developed and the less developed economies where political situations are stable and chances of market interference by governments of the countries are very minimal thus they cannot control how Unilever markets its products. To reduce chances of political interference, the company uses its experience and goodwill to make contacts in many countries bargaining with the governments so as to modify the regulations and as a result, Unilever has gained political ground using its tactical strategy and experience helping in creation of favourable business environment and increasing their market share in the long run. Economic With the European coun tries under the umbrella of the European Union using one currency (the Euro), the whole of the European market has been transformed to a single market as a result this has led to an increased market for the company products. The single currency has also played a big role in stabilizing the inflation rates within the region and as a result Unilever Company enjoys stable prices throughout the region.Advertising We will write a custom assessment sample on Marketing plan for Unilever Company specifically for you for only $16.05 $11/page Learn More Technological The firm’s intention is not only to maximize wealth but also anticipates the aspirations of its consumers in order for them to respond creatively and competitively. As other firms automate their systems Unilever has not been left behind and of late the company has been putting much effort on research and development and also launching of modified products so as to satisfy all the stakeholders (Ide a Connection ND). This works well with ensuring the customers are aware of what content the products they buy from Unilever have thus creating reassurance that if the qualities of the good are overlooked, they can always contact the company offices and raise their issues. Summary of situational analysis (SWOT Table) Strengths Leads in most of the food products it offers in the market products such as soups, tea, and cream. Leads in producing and supplying frozen food products in Europe. Leads in producing and selling multiple brands. Possesses the art of producing customer made products that suit their customers completely. Observation and adherence to customers’ needs and desires. The company enjoys good diversity of nationalities as the company has invested almost everywhere in the world. The large range of the products ensures that the customers remain flocking all year out. The company’s liquid tablets for laundry purposes as well as fabric soft eners prevent lime scale when used in stem irons and this has been a major strong point. Increasing market share in the Latin America region, Africa and the Middle East regions. Weaknesses Slump demand from the American region. Company products: the frozen foods, prestige perfume and other household care have been underperforming way below the set targets. The lagging divisions have been affecting the sales growth for the Unilever 400 leading brands. Declining market share for the slim products as people become more health sensitive. Threats from other rivals such as Marks Spencer and Sainsbury (Emmo Dave 2007) Opportunities With consumers changing tastes, the company can change their market segments to a more health-conscious group especially women who can afford to buy the products. Opportunities for market development in the developing countries. They are also high penetrating opportunities in the Latin America region. Adoption of new technologies will aid in easier financial and customer management(IBM 2006) Threats Stiff competition from other rivals in the industry especially the DANONE, Marks and Spencer and also from Sainsbury. Consumer loss of confidence and trust in Unilever products. Many prefer reduced fats and exercises (Unilever 2011). The retailers (subsidiaries) don’t stock enough products (Clarke 2011) Segmentation, targeting, positioning Segmentation refers to the process of dividing a heterogeneous market and breaking it into smaller homogenous segments where members of a certain group correspond to certain needs. Targeting on the other hand is the identifiable group at which a company such as Unilever directs its efforts towards satisfying the clients (Wedel Kamakura 2000). Strategies have thus been developed for each target market by combining the four elements of marketing to make a successful market mix. The company has been targeting households for home care products as well as health sen sitive individuals. Positioning is usually determined in order for the customers to know where the product stands in relation to other rival products. Unilever has positioned themselves as foods and personal care producers with the company positioning itself as a high quality and pocket friendly products producing company. Marketing Strategy Corporate objectives To regain and control the market leadership for the next decade. Regain the stockholder as well as consumer confidence. To make the management more internationalized. Marketing Objectives To create sustainable profitable growth and value for shareholders by increasing the profits by 5% To boost the sales and the margins through a growth strategy by 7.5% To increase spending on advertising the 300 out of 400 core products by allocating marketing budget of 5000 million pounds To increase the market share and maintain leadership in the company’s core product by ensuring and creating customer loyalty and producing prod ucts which meet specific customers in the market. Financial Objectives Increase Unilever marketing funding by 50% over the next two financial years. Increase Unilever capital funding by 5% in next year’s budget and at least 5% each year after that. Societal Objectives To improve the society perception of our products To provide more healthy products in order to maintain our loyal customers To sponsors games and other sporting events in order to closer to our customers and know they feel about our products. Programs The company products touch the lives of many people throughout the world. In nutrition themes, Unilever has of late been recognized on helping their shoppers make a strong choice by enhancing the dietary quality of their products, through intensifying the consumer choice and offering vivid information to their customers.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The efforts have been witnessed in the past such as the introduction of the Nutrition Enhancement Program introduced in 2005 which has enhanced the company achieve the internationally accepted guidelines for nutrition content such as fats, salts and sugar content. With the Food and Agriculture Organization predicting increased populations of undernourished people, the company has in response introduced products which check into malnutrition problems for example the Rama/Blue Band which contains vitamins A and D and the Annapurna salt which is iodized reducing goitre related problems. Target market Marketing touches every aspect of an entrepreneur’s business operation. It is usually a series of activities designed to identify what the customers really want or are looking for in your good or service. The company will target both the middle and the lower classes by offering the products at low prices (Kleiner Adams 2003). Product Product is a bundle of benefits being delivered to meet the needs of our customers (Tronstad 1995). Product policies are concerned with what Unilever should do in their new product and brand development. Branding is part of the actual product and is usually an important issue when considering the product strategy. Branding is usually used to give company products unique identities and helps the marketer to differentiate their product from those of competitors (Rosenzweig 2000). Unilever will use this branding strategy because its name is already established worldwide. The launch costs of new products will be low and the brand loyal customers are likely to try the branded new products. Promotion Promotion entails all the tools we shall use in order to communicate with our customers. They include advertising, sales promotions, direct marketing and public relations among others. In all these, there exist two promotion strategies: the pull or the push strategy (Nitschke ND). Unilever will use the pull strategy whereby the company wil l promote its products to the final customers by encouraging them to buy. As a result, the consumers will be encouraged to demand the products from their intermediaries. Distribution Place simply refers to the means through which our product will reach the consumer (Kotler 2000). It involves the distribution activities which are necessary in getting a product to a customer. With the established distribution centres, Unilever will seek to introduce smaller branches within the countries where the company has introduced subsidiaries as well as introducing new market openings in new areas. Pricing Price is usually the amount our customers will be willing to pay in order to access our product this value comes along (Ellickson Misra 2006). In today’s market place, Unilever will continue using the high quality low price strategy to ensure that the company retains its market share. Financial plan (Determining) The marketing budget Projected costs, revenues and sales forecasts ite m Cost in US Dollars Material costs 2500000 labor costs 6500000 overhead costs 5200000 Advertising costs 350000 promotions 500000 Networking 100000 15150000 Anticipated profits After implementing the business plan, we expect that the company will make profits of 10 billion dollars in the first quarter though the operating costs are expected to increase and the economy to remain sluggish. Implementation Process Measures for measuring performance Using the balance score method, Unilever will be able to control four perspectives of marketing: from the financial perspective, if the company is to meet the objectives, it will be required to monitor and measure all the profits margin sales and other goals through management of the objectives. Thus, the company will be required to measure the profitability of its products according to the region. The desired increase in shareholders’ value will be easily measured through dividends. From the customer perspective, the critical success factors will be measured by making sure they observe the consumer satisfaction index and also by analyzing the problems presented by the consumers. The internal perspective to be measured is the efficiency: this will be done by controlling marketing aspects such as sales force efficiency as well as advertising efficiency. Finally, the last perspective which Unilever can check how the implementation is going on is though the strategic control; this will require the company taking the initiative to critically review the overall marketing and corporate objectives (Martin ND). Implementation procedure If the analysis of our market mixes strategies show that implementation of such measures will aid to the growth of the company, we shall then implement our marketing plan into two phases: Phase one will involve implementing our marketing plan in the European region where the market is stable compared to the other places in Africa, Latin America and Middle East regions. Af ter implementing it fully, if any modifications are required we shall then modify the marketing plan before we can implement it in the other regions. All implementation activities will be planned and scheduled by using a Gantt chart as this will help in monitoring and controlling what has been done and what will have remained (Bunin 2008) Market penetration To penetrate the new markets, Unilever will use the low pricing high quality strategy in order to attract the low class and middle classes in all the regions that the company has established its subsidiaries. To increase the volume of sales the company must ensure that the goods remain of high quality to ensure the customers continue deriving maximum utility. Market development Service program development The company also gives back to the society through its employees. They have introduced the (Lamplighter) program which permits its employees to gauge and track the important aspects of their health (such as blood pressure). In r eturn a healthy workforce for Unilever translates into more friendly and consumer engaged employees. Diversification The company has a wide range of frozen foods, tea, laundry soaps and ice creams among other products. It is also dedicated at providing its customers with the best information about food and nutrition in order to help them make sound decisions when purchasing the company products. About holding promotions, the company has been advertising fully in the internet due to the huge market pool it holds with much interest given on high quality and value. Another market aspect which Unilever has been able to use is the distribution system in which the company distributes its products through their intermediaries throughout the world in every location where their branches are located (Clarke 2011). Reference List Bunin, R.B. 2008. New Perspectives on Microsoft Project 2007: Introductory. London, Cengage Learning. Clarke, F. 2011. Unilever, Nestlà ©Ã¢â‚¬â„¢s Rio Ice Cream Wars . [Online] Available at: http://riotimesonline.com/brazil-news/rio-business/unilever-and-nestle%E2%80%99s-rio-ice-cream-wars/ . Ellickson, P. B., Misra, S., 2006. Supermarket Pricing Strategies. [Online] Available at: gsb.stanford.edu/facseminars/pdfs/2006_11-17_Ellickson.pdf . Emmo, M., and Dave, D. 2007. Looking Good, Feeling Good and Getting More Out of Life. [Online] Available at: unilever.com/images/iv-icn09_Vitality-symposium-proceedings_tcm13-189850_tcm13-189850.pdf. Idea Connection. Not Dated. Unilever uses Collaboration to Develop Clean Water Solution. [Online] Available at: ideaconnection.com/open-innovation-success/Unilever-uses-Collaboration-to-Develop-Clean-Water-So-00172.html. Jones, G. 2002. Unilever- a Case Study. [Online] available at: http://hbswk.hbs.edu/item/3212.html. Kleiner, E., Abrams, R. 2003. The Successful Business Plan: Secrets Strategies. 4th Edition. London, The Planning Shop Kotler, P. 2000. Marketing Management. New York, Prentice Hall International , Millennium edition IBM. 2006. Unilever Europe Improves Retail Execution And Trade Promotions Efficiency With IBM. [Online] available from; http://www-304.ibm.com/easyaccess/fileserve?contentid=75673 . Martin, J.R. Not Dated. Kaplan, R. S. and D. P. Norton. 1992. The Balanced Scorecard Measures That Drive Performance. Harvard Business Review (January-February): 71-79. [Online] Available at: http://maaw.info/ArticleSummaries/ArtSumKaplanNorton92.htm . Neff, J. 2010. Why Execs at Some of PGs Fiercest Rivals Hold Its Stock: Package-Goods Giants Alums Are Increasingly Cropping Up at Competitors. [Online] Available at: http://adage.com/article/news/p-g-alums-crop-rivals-unilever-estee-lauder-lvmh/143612/. Nitischke, R., Not Dated. The 5Ps of marketing: Arago Partners LLC. [Online] Available from: aragopartnersllc.com/documents/The5PsofMarketing.pdf . Rosenzweig, S. 2000. Smart Marketing: What Big Companies Practice and You Should Learn about Marketing, Branding and Business Development . 2nd Edition. London, Emery Publishing Company. Tronstad, R., 1995. Product Position. [Online] Available at: http://ag.arizona.edu/arec/pubs/dmkt/PRODUCT.pdf . Porter, M.E. 1998. Competitive Advantage: Creating And Sustaining Superior Performance: With A New Introduction. New York, Simon and Schuster Publishers. Unilever. 2000. Unilever. International Directory of Company Histories, Vol. 32. St. James Press. [Online] Available at: fundinguniverse.com/company-histories/Unilever-Company-History.html . Unilever. 2011. Millions Of people all over the world have lost weight wit SlimFast. [Online] Available at: unilever.com/brands/foodbrands/slim-fast/index.aspx . Wedel, M., and Kamakura, W.A. 2000. Market Segmentation: Conceptual And Methodological Foundations. 2nd Edition. New York, Springer Publishers.