Table of Contents Executive Summary PEST Analysis Financial Analysis Porters Five Forces Market Audit-Space Boston Consulting

Group( BCG) Segmentation Critical Success Factors Key Problem Identification Marketing Objectives Other Strategies Marketing Budget Monitoring and Control-Balance Score Card Bibliography 3 3 6 8 10 13 15 16 17 21 22 24 26 28

EXECUTIVE SUMMARY
We are the XYZ Group and our aim is to develop a Global Strategic Marketing Plan for three years for Unilever Company.Unilever is the British/Dutch jointly owned multinational consumer goods manufacturer. The Mission statement is deduced from the case study and stated to give a clear picture and guide to the global marketing plan for Unilever. The paper will assess the changes taking place in the companys environment and how these changes will affect Company. To do this we will examine the Macroenvironment, Microenvironment. SWOT analysis and financial analysis will be carried out on the companys external and internal environment. Corporate Objectives will also be stated to indicate the future of Unilever Company. Marketing Audit, Internal analysis, Critical success factors, Segmentation, Targeting will be analysed to find the position of Unilever Company in the foods, home and personal care retail industry. Different Growth strategies, Marketing Mix strategies and Competition Strategies will also be analysed to assess their suitability and fit to the Marketing Objectives of the company. The Marketing Budget will be drawn to know how much will be spent and what time in order to achieve the objectives of Company. The plan will also provide guidance for the implementation of the chosen strategic choices undertaken by the company.

PESTLE ANALYSIS POLITICAL & LEGAL

Unilever operates in both developed and developing countries worldwide where the political situation in these countries is stable and encourages more Investments. Also legislations in these countries favours free market economy with no government intervention.

ECONOMICAL
With the introduction of the European Union and single currency the whole European market has been transformed to a single market hence increasing the market for Unilever products. Also inflation and exchange rates in most of the countries has been stable thus not affecting the prices of products or any future Investments.

SOCIOLOGICAL
Due to recent developments people around the world have changed from using natural food products to the use of genetic modified food products or to special types of foods with special attributes like carbohydrate free meals, slimming foods, meal replacements, appetite controllers and suppressants. Unilever has tried to cope with all the changes that take place in the modern world.

TECHNOLOGICAL The objective of Unilever is not only to maximize the wealth of its owners but also to anticipate the aspirations of its customers and consumers and to respond creatively and competitively with branded products and services that raise the quantity of life. Unilever put much emphasis on research and development, modern technologies and launching of modified products so as satisfy its stakeholders SWOT ANALYSIS: STRENGTHS Leaders in most food products like in culinary category, soups, packet teas, ice creams, margarine and spreads, and branded oil-olive oil. Leaders of frozen foods in Europe Leaders in home care products such as cleansing and hygiene products. Best selling multiple brands. Ability to tailor products to customer demands In-depth understanding the different markets and innovate the products suitable for each market. Adhering to a policy of listening to customers Range of brands to match the diversity of its consumers Global leader in products for skin cleansing, deodorants and antiperspirants. Successful Brand extension in dove from skin care to hair care Ponds Perfect launched in Japan gained leading position in the mass sector of anti-ageing market Good social responsibility to shareholders and employees Good diversity of nationalities on the Unilever executive board which indicate no discrimination Encouraging managerial personnel from developing world as well as women Large range of brands to match the diversity of its consumers. Recent successful innovation and launch of liquid tablets for laundry business as well as fabric softeners, which make fabrics, smell fresher and prevents lime scale when used in steam irons. Path to growth-concentrating and refocusing on core brands Frozen foods continued to show strong growth in Italy and Britain Increasing market share in Africa, Middle east and Turkey Increase of sales in Latin America

LACK OF FINANCIAL STRENGTH. HARD FOR THE ORGANISATION TO TAKE EFFECTIVE INVESTMENT DECISIONS WEAKNESSES Facings slump in demand from America Prestige perfume, frozen foods and household care under-performing against benchmark target of 5% Lagging divisions affecting sales growth of Unilevers 400 leading brands

Falling profits due to slim fast products Decline in sales value on slim fast Declining market share for slim fast products as people started emulating twig like celebrities on low carbohydrates diets Health consciousness people found an alternative low calorie diets and exercise Growth in healthy eating habits-OPPORTUNITY Firms structure was not suitable Facing competition from Marks & Spencer, and Sainsbury who have started healthy eating brands Consumers believeth that meal replacements do not work in the long-term, largely because they cant keep them up. As a result they came to a conclusion that exercises and consistent health diet was better way to stay slim. Struggling retailers like Ahold were running down their inventories

OPPORTUNITIES Unilever had an opportunity of changing its market segments to a more health conscious group specifically working women who can afford to buy the products Market Development in developing countries Integration providing innovation opportunities Increase market share and growth in Africa, Middle east and Turkey by market growth and development Increase market share and growth in Latin America by market penetration and development VERY FEW OOPORTUNITIES THREATS Stiff competition from speciality retailer Danone, Marks and Spencer, Sainsbury customers had lost confidence and trust in their products as they decided that people did not necessarily have to eat a powder mix to stay thin and were switching to reduced-fat and plenty of exercising. Retailers can curtail sales by not stocking enough stock

NOT COMPREHENSIVE THREATS, HARD TO JUSTIF THEIR OBJECTIVES FINANCIAL ANALYSIS The assessment of the financial position of the firm constitutes an important aspect of the internal analysis which must be carried out to determine the strengths and weaknesses of the organisation .It is important to carry out a financial performance of the corporation Unilever Ltd. because the financial appraisal will indicate the extent to which the firm is meeting some of its key objectives and also help management to direct operations and make decisions in ways which will achieve or fulfil the overall corporation objectives. 4

Two categories of financial performance measures are commonly used and these can be based on absolute values, which measure profitability and those based on relative form of return on investment or capital employed.

Profitability
Businesses come into being with the primary purpose of creating wealth for their owners. Profitability measures indicate how effectively the total firm is being managed and in many ways constitute the most important aspect. Profit is widely used as an absolute measure of profitability and provides a means by which a corporation can be compared with another in the same industry e.g. Novartis or the same company over different times of period.

Net profit margin

This ratio relates the net profit of the business to the sales generated for the sales period. Net profit represents the difference between sales, the cost of sales and the operating expenses used to generate that profit. Year of Operation Sales Net Profit 2002 48,27 0 2,129 2001 51,51 4 1,838 3.6 2000 47,58 2 1,105 2.3 1999 40,97 7 2,771 6.8 1998 40,437 2,944 7.3

Net Profit 4.4 Margin in %

We can see the profit ratio was up in early years but due to intensive competition and new product innovations it started falling. After Unilevers revised its strategy and innovation of slimming product, and acquiring of competitors like Best food in America we can see profit is growing faster from 2.3% in year 2000 to 4.4% in year 2002. At 4.4 % in 2002 indicates that there is safety at the current prices as the organisation successful performance suggests that the profit is not all eaten up by expenses, which is a favourable trend. Gross Profit Year of Operation Sales Gross Profit 2002 48,27 0 5,041 2001 51,51 4 5,174 10 2000 47,58 2 3,181 7 1999 40,97 7 4,303 10 1998 40,437 4,410 11

Gross Profit 10.4 Margin in %

The gross profit margin indicates that the gross profit is stable over the five years under consideration at 10% at the most is a favourable trend.

Liquidity
In analysing the liquidity position we want to know whether Unilever is able to meet its short-term obligations as and when they fall due. Year of 2002 2001 2000 1999 1998 Operation Current Assets 16,20 9 Current Liabilities 20,60 2 Liquidity Ratio 1:1 17,67 8 23,21 2 1.1 20,08 6 28,36 4 1:1 25,40 7 12,13 4 2:1 21,601 17,970 2:1

From the given figures we can see that Unilever have a sound liquidity position of 1:1 meaning the corporation is able to meet its short-term obligations from its current assets without having to raise finance by borrowing, issuing shares or selling fixed assets which is a favourable trend. Return on Investment Return on Assets 21% 18% 11% 36% Unlived are efficiently using their assets to full capacity in order to generate sales at 21 % in 2002 compared to the previous two years of 18%and 11% respectively presuming to have been leaving some assets lying idle and not used to full potential to generate more sales. It is a favourable trend in financial position. Return on Equity 18% 23%

The return on equity measures the rate of return on the shareholders capital.
2002 2001 2000 1999 1998 2:1% 1:1% 3:1% 4:1%

Price Earning Ratio2:1%

The price-earning ratio is generally good at 31 it shows that the corporation is held in high esteem in the market

Dividend Cover

2002 2441

2001 1838

2000 1320

1999 2972

1998 3088

The divided cover compares the amount of profit earned per ordinary share, which is 2441 in 2002, is good compared to the previous years.
2002 2 2001 1.74 2000 1.63 1999 2.65 1998 3.30

Efficiency

The company is being operated efficiently in order to generate sales. Finally Unilever is financially sound and a going concern that is able to take up any challenges. Vision Value and low prices as hallmark of development Mission Statement For best quality and best price. TOO NAROW COMPETITOR PROFILE ANALYSIS The five forces analysis will aim to identify the key forces, which will affect the level of competition in food, home and personal care where Unilever operates.
The five forces Framework Potential entrants Threat of Entrants (Low)

Suppliers Bargaining Power (Low)

Competitive Rivalry (High) Norvatis Nestle Kraft Food Danone Sainsbury Marks Spenser

&

Buyers Bargaining Power (low)

Threat of

Substitutes (High) Substitutes

Threat from new entrants (Low) Food, home and personal care requires high capital investment in order to enter market and Unilever have built up experience and distribution channels to compete effectively in the industry. Currently Unilever is operating in 100 countries and is able to tailor its products to the different markets and anticipate customers demand. Most of its products like Birhante, CIF for home care, Lipton teas and soups for food are market leaders. Threat of Substitutes (high) Emphasis on healthy eating and growth in consumer awareness has turned them to look for alternative diets, such as low-carbohydrate, low calorie food, reduced-fat, reduced salt. Programmes promoted by twig-like celebrities and government pressure on food producers to check food contents. Bargaining power of Suppliers (low) Unilever is a very big and strong business entity, which cannot be easily influenced or forced in its decisions by suppliers, as it is not dependent on one supplier. As stated in the case Unilever has no problem with supply of raw materials as is able to operate in 100 markets with a variety of products without run short of raw materials. Bargaining power of Buyers. (High) Customers especially in European market frequently keep on demanding more new products, better features and great variety at acceptable prices. This has forced Unilever to develop new products such as slimming products like reduced-fat, reduced-salt, or low-calorie food product and laundry soap bars for consumers using river water to tablets for the most advanced washing machines. Competition (High) Unilevers main competitors are Novartis, Nestle, Kraft Food and Danone. Due to this Unilever was under restructuring programme, which aimed at cutting its old portfolio of 1600 brands down to 400 core brands, urging divisions to improve performance or alternatively to be sold. Competitors such as Novartis, Nestle, Kraft food and Danone are producing the same products as Unilever, hence bring competition in the market.

Producers of carbohydrate free meals, low carbohydrate programmes promoted by twig-like celebrities, growth in healthy eating has been driven by meal replacements and appetite suppressants provided by brands such as slim-fast and weight watchers. All these above and the peoples awareness on healthy eating poised a threat on growth of the market share in the UK where by slimming products market grew by only 14%. In fact Unilever has been buying new products such as Hellmanns mayonnaise and Ragu sources from competitors, which came with the takeover in year 2000 of an American firm, Bestfoods. INTERNAL ANALYSIS Resource audit In this section we are going to look at the resources that are available to unilever exposure by analysing the 5M.

Money
Unilever has the financial capability to take up any project, as we will see this fact later with the financial analysis. The position is sound.

Machinery
Path to growth there is a shift in the balance of Unilever. In the north, factories were closed and the supply chain narrowed. It was considered that in Europe and America Unilever had half the physical plant it owned a decade ago, while at the same time money was ploughed into building infrastructure in Asia and Latin America. Then we can recommend that Unilever have to renovate its machines to use latest technology so as to compete well in all markets.

Manpower
Unilever has enough skilled labour and efficient manpower as a company is made up with staff from 33 different nationalities. This make the organization to have new ideas, as we know Unilever is operating in different market.

Markets
Unilever has markets for its products.

Make up
The structure of the company is good, as they have successfully involved people with different nationalities well placed in the organization chat. As we can see that the senior corporate officers re responsible to ensure that board meetings and board committee meetings are supplied with the information they need. MARKETING AUDIT SPACE ANALYSIS The marking audit will be analysed in terms of SPACE analysis Space is the acronym for S- Strategy: P- Position of Marketing department i.e. external and Internal AC- Action E- Evaluation 9

There are four areas to be considered under SPACE Financial Strength (FS) Market share Unilever currently occupies a prominent share of the food and home cares industry. Profits Profits have increased to 3979 million. Sales - decreasing sales from 51514 million in 2001 to 48270 million in 2002 due to the decline of sales in slim fast products Earning per share in 2002 was 2.14 Income Unilever had 3979 billion in 2002 Industry strength (IS) Companys industry position Unilever have a very strong industry position being the leaders of food, home and personal care in USA and Europe to occupy double-digit market share of 14 %. Unilever are still perceived as the leading retailer by critic and competitors. Companys Industry life Cycle Unilever is at industry maturity stage in its industry life cycle and slowly heading for the decline stage. Elasticity of demand The demand in the retail industry is price elastic, especially for the middle class and low class customers... Competitive Advantage (CA) Quality and customer service have been the focus of Unilever competitive advantage. Unilever is very well represented globally with stores in all the major economic markets of Americas, Europe and Far East... Environment Stability (ES) Stability of economy Unilever is a worldwide organisation and as such operates in different and diverse economic environments. Each environment must be assessed individually to determine its impact on the companys operation. Stability in political settings Unilever is a worldwide organisation and as such operates in different and diverse Political environments. Each environment must be assessed individually to determine its impact on the companys operation. FIGURE 1.0 SPACE MATRIX FS

Aggressive

CA

IS

10 ES

In the SPACE analysis, Unilever ought to continue to occupy the Aggressive position because of the strong Financial Strength (FS) and Industry Strength (IS). The financial position is strong and sales have increased although the slim fast product has not been performing well as it still is profitable and can support this position. This is a good position to maintain for them to continue as market leaders in food and homecare industry.

INTERNAL ANALYSIS
MARKET AUDIT Competition The core values of Unilever quality, affordability and service came
under the greatest attack, not from critics, but from competitor, Danone, Novartis, Nestles and Kraft Foods Marks and Spencers

MARKETING MIX AUDIT Price Unilever has concentrate on all classes of customers, it has continued valuepricing strategy and the company uses a similar outstanding value campaign across America, Europe and Latin America.

Products - Unilever a multi-brand names, such as Knorr, Birdseye, Dove and

several others. The brand names have a wide range of products and reputation of high quality products. By selling only one brand, Unilever is in the unique position of being able to insist on the same high standards. Unilever has a wide range of frozen foods, teas, ice-creams laundry soaps, bathing soaps to name but a few. It is also dedicated to providing people with access to the best information about food and nutrition so they can make informed choices about their diet, which is vital to well being. Promotion Currently promotion at Unilever is by advertising basically on assumption on TV and online and bill board. There is limited to Word of mouth. Emphasis is on quality and values alone. Distribution Unilever distribute their products through intermediaries which range from retailer large super stores like Asda, Boots, Safeway now Morrison, wholesalers and various corner shops as well as off licence stores on the streets of cities of various countries. Unilever is successful in two basic formats. The first format is a general home care merchandise, with its basement dedicated to hygiene and cleansing, while the second offers foods only.

MARKET PROFILE
BCG Matrix
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The Boston Consultative Group BCG Matrix is a Portfolio strategic analysis tool. It evaluates the portfolio of strategic business unit or markets according to their performance and groups them as Stars, Cash Cows, Question Marks or Dogs. The matrix is a market share - market growth matrix. Companies must develop new businesses but also must carefully prune, harvest or divest tired old businesses in order to release resources and reduce cost. In the case of Uniliver, we are going to analyse the portfolio of the business based on BCG matrix, examine the relationship between market share and market growth of the different business units and identify their position in order to propose the right strategies for a balanced portfolio In the case at hand, the Market profile of Unilever is evaluated as in TABLE 1 and2 below: BCG MATRIX FOR MARKETS

Market Share growth High High Market Growth Cash cows UK USA Dogs Africa Middle East Turkey Stars Latin America low Question Marks Asia +Pacific

BCG MATRIX FOR PRODUCTS Market Share growth High High Market Growth Stars Best foods Frozen Cash cows Knorr Flora low Question Marks Deodorants Anti- Prespirant Dogs Slim Fast

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STARS (High market share, high market growth) As we have seen in the question mark businesses, there are brands within the business units that are performing well and if the question marks are successful they become stars. Brands like Bestfoods in America and Canada, Findus in Italy and Iglo in other European countries among the frozen food business are stars, they enjoy high market share in a growing market. Brands like Walls, Algida, Ben and Jerry under the ice cream division fall in this category as the world leading ice cream producer. In home and personal care, products for cleansing, deodorant and antiperspirant under the brands of Axe Lux Ponds, Rexona, CIF, comfort, Domesto, Omo, Skip and Snuggle have a good share of the growing market. However, Uniliver may have to spend substantial funds for its stars to keep up with high market growth and fight off the competitors attacks as a leader in these core brands, Uniliver may be spending heavily to gain that share, however, cost may be reduced over time and hopefully at a rate faster than competitors. Even if these star businesses may not necessarily produce a positive cash flow for the company, Uniliver would be justifiably concerned if it has no stars. CASH COWS (Low market share, high market growth) With a relatively high market share in a mature market, products under the culinary category with knorr, margarine, and spreads under Becel, Flora and Take Control, branded olive oil under Bertolli brand, Brook and Bond tea, Comfort Vaporess are cash cows. Uniliver does not have to invest heavily on marketing or to finance capacity expansion, as the growth is low and market conditions more stable. As these business units are market leaders, they enjoy economies of scale and higher profit margin. Uniliver should use these cash cow businesses to support the lagging ones that drive down the profit of the company. As the cash cows are not as many as the question marks, they may be vulnerable if good care is not taken, They should maintain their market share otherwise Uniliver may have to pump money back into to maintain market leadership. If it does not the cash cows may devolve into a dog. QUESTION MARKS (High market share, low market growth)

Question Marks
According to our matrix Uniliver prestige perfumes, frozen foods and household care business units are question marks as they are operating in a growing market without high market share, thus holding the sales growth of the companys 400 leading brands by 0.6%. However some brands within these business units such as Britains Birds Eye and Italys Findus in frozen foods are still showing progress. Therefore it can be noticed that not the whole divisions are under performing, as a result Uniliver needs to invest more in these business units to keep up with the fast growing market because they are already successful but need better performance. Brands such as Knorr, Lipton, and Magnum in food and Dove and Persil in the household product sector are among the core brands that raise concern for Uniliver. As they operate in a growing market more investment is needed to boost sales and 13

margin and as it is unlikely that these units achieve sufficient cost reduction benefits, Uniliver may turn to its cash cow businesses to offset such investment. As part of its path to growth strategy Uniliver must build on these businesses to improve performance as the market share must grow if they are to become stars otherwise they may face alternative solutions that could include the sale of the business, which should be the last alternative because of the growing divisions inside the business. However, as the company operates 3 question mark businesses, it may be too many, Uniliver might be better off investing more cash in frozen foods and household care, since the market is growing it may gain more share and dominance DOGS (Low market share, low market growth) . The slim fast products sales have brought down food revenues by 5%. With a weak market share in low growth market, they may be considered as dogs. As consumers started questioning the effectiveness of slimming products and turning to alternative diet such as low-carbohydrate, reduced fat, low calorie food products, Uniliver started loosing market share for its slimming products. Due to light innovation and the growing concern of consumers for loosing weight, Uniliver slim fast products fail to meet the need of health conscious customers. The growth of the market is lowered by the consumers beliefs that exercise and consistently healthy diet is a better way to stay slim. This has resulted to sales decline due to a 17% drop in revenues from Slim Fast. Uniliver may choose to sell off this business unit as it is acting as a drag to the companys profit, however, it should consider holding on to it as a turnaround may take place considering the growing health conscious consumers, the surge in demand for slimming products and their plan to fight back in order to gain more share and meet customers needs. This includes the launch of slim fast ice cream in USA and the introduction of reduced fat, reduced salt, low calorie food products or low carbohydrate diets. These dog products (slim fast) have a useful place in the portfolio. They may be necessary to complete the product range and provide a credible presence in the market. They may be held to keep competitors out. They are capable of revitalisation. Uniliver has got a balanced portfolio with more cash cows and stars than dogs. Its sound and growing businesses may support its lagging ones and strengthen its path to growth strategy. As market leader in most of its products market growth is important for Uniliver because it is easier to gain dominance when the market is in its growing stage. GOOD BCG ANALYSIS

Segmentation
Market segmentation is the process of taking a heterogeneous market and
breaking it into smaller homogenous groups where all members have similar needs and respond similarly to a set of marketing efforts. Once the market has been segmented, the organization selects the segments to be served (known as target markets).

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Targeting A target market refers to an identifiable group at which an organization directs its marketing efforts. Target markets are those segments that show the best potential for successful marketing. A strategy is developed for each target market by designing the marketing mix elements (product, place, price, and promotion) to meet the needs of the target market. NOT NECESSARY . Unilever target households for home care products, health conscious people for slimming products and the adult women as well as men for personal care. LACK OF PRECISENESS Positioning Determine positioning. A market position is developed for the product so that the target will clearly know where the product stands in relation to the competition, as well as other products marketed by the organization. Unilever have positioned themselves as Foods and home and personal care producers. Product positioning is how a product is positioned in the mind of the consumer. Positioning begins with finding a difference in the product that is worth establishing to the extent that it is important, distinctive, superior, communicable, pre-emptive, affordable, and profitable. Unilever have position their products-High Quality and good price Unilever products are positioned as good value products but are slowing threat faced by Unilever was the fact their customers had lost confidence and trust in their products as they decided that people did not necessarily have to eat a powder mix to stay thin and were switching to reduced-fat and plenty of exercising. Differential advantage refers to any feature of a product or organization perceived by customers to be desirable and different from the competition. An organization uses its resources and capitalizes on them to obtain a differential advantage by offering unique products. CRITICAL SUCCESS FACTORS Critical Success Factors are factors upon which the success of the business is dependant. Unilever attend to these factors to ensure success. Ability to tailor products according to different market and anticipate customer demands Understanding in depth of the countries in which Unilever operates Policy of listening to customers. Producing different range of products to match the diversity of its consumers Scaling down of portfolio of 1600 brands to 400 core brands Increased advertising budget and interaction with advertising agencies Reorganisation

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KEY PROBLEMS Decline of market demand Slim Fast Foods Growth target for sales reduced from 5 6% to 4%. Demand for prestige perfumes, frozen food has gone down in America. As a result the business is under performing against benchmark target of 5% annual revenue growth. Corporate Structure is too tall, slowing down decision-making Growth target for sales reduced from 5 6% to 4%-not suitable. In stability in slimming products caused by new developments in stay slim necessities. Competition intensified in the slimming product market as celebrities are taking a leading role and super market are increasing their own label offering in healthy eating products. It operates as a separate business between home and personal care and foods division Retailers running down inventories

KEY PROBLEM IDENTIFICATION 1. Slim fast product SOLUTION

PRODUCT DEVELOPMENT: Slim fast products are faced with big challenge caused by changes in peoples knowledge and perception. The company should invest accordingly in Research and development activities so as to come up with products that are inline with the changing customer needs. Selecting and promoting effective products mix to service target markets in developing as well as in developed countries. Creating brands that will help universalise and promote the poor performing fragmented slim-fast products. -Innovation Aggressive Marketing stand Developing and launching new products to meet emerging customer needs

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2 DECLINING MARKET SOLUTION

MARKET DEVELOPMENT: Adopt an innovative and creative approach in product production, advertising, sales promotion, packaging, selling approaches and distribution so as to increase market share in the developed world where market is at its matured level. Seek market in the developing nations.

3 COMPETITION SOLUTION
Adopt competitive strategies such as: Cost Leadership- Produce products at low costs through economies of scale and compete favourable on low price. Huge competitors cannot easily copy. Differentiation- Different products as far as possible by unique features, adding value by high quality and can only be achieved by research and development by product development. Focus - This is a combination of the cost leadership and differentiation capital investment can be made which

4 Struggling Retailers-like Ahold were running down their inventories. Solution Adopt push and pull strategies as detailed below
Push Strategy When a company is pursuing a push strategy, it promotes to channel intermediaries to encourage them to stock the products. This means that when customers want to buy the product, it is readily available. Push strategies normally involve the use of sales promotion and personal selling. Pull Strategy and the communities mix( Problem Solution) 17

When a company is pursuing a pull strategy, it promotes its products to the final customers to encourage them to buy. They are encouraged to demand the product from intermediaries. Pull strategies normally involve the use of advertising; direct marketing activities and consumer sales promotions.

Push Strategy Manufacturer Promotions Intermediaries Promotions Customers

Pull Strategy Manufacturer Intermediaries Promotions Customers

Push and Pull Strategies Unilever have intermediaries who they can use and apply the strategies of push and pull in relationship of manufacturer and the Intermediaries.

5 Company Structure not suitable Solution

RESTRUCTURING: Following the cut-down in brands and consequent focus on leader products, the company should be more integrated and have global features to support the changes. Instead of working as a separate business, the company should be integrated into a single organisation and create division geographically

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IMPLEMENTATION STRUCTURE

EXECUTIVE COMMITEE

DIRECTOR EUROPE

DIRECTOR NORTH AMERICA

DIRECTOR
ASIA AND PACIFIC

DIRECTOR AFRICA AND MIDDLE EAST

SENIOR OFFICERS *

SENIOR OFFICERS *

SENIOR OFFICERS

SENIOR OFFICERS *

* FINANCE MARKETING PERSONNEL PRODUCTION

6 Health conscious people-people who are eating healthy foods which has reduced fat and salt. Solution
Innovate products that promote good health with less fat and salt content. Sponsor health programmes like Gyms, London Marathon.
CORPORATE OBJECTIVES Yet one of Unilevers major and most important objective was anticipating the aspirations of consumers and customers and responding creatively and competitively with branded products and services which raise the quality of life In crease customisation to local national taste by establishing additional brand names. Regain Market Leadership with 5 years. Regain Stockholder confidence Internationalise Management Marketing Mission Statement To provide the best quality products and Service to the customer and be the market leaders in the retail industry.

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MARKETING OBJECTIVES Uniliver, a British/Dutch multinational consumer goods manufacturer has these main marketing objectives: To create sustainable, profitable growth and value for shareholders and employees by improving profits by 10%. To cut its old portfolio of 1,600 brands down to 400 core brands To improve performance of the lagging businesses To boost sales and margin through its path to growth strategy by 10% To spend on marketing and advertising 200 core brands through marketing budget 4827 million expenditure. To increase market share and maintain leadership of its core brands by creating customer loyalty. To tailor products to different markets and anticipate consumer demand through research and development-innovation.

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OTHER MARKETING STRATEGIES GROWTH STRATEGIES Growth Vector Analysis Existing Product Existing market Market Penetration Improved New Product product (new, changed) Product variants Product line or product extension differentiation Options 21

Market expansion

Market segmentation

Market-Product segmentation

New Market Alternatives

Market development

Diversification

-New product development -Market development -Existing boundary Conglomerate diversification

The most suitable strategies of meeting the Marketing objectives stated above are: Market Penetration A market penetration strategy suggests that growth is possible by achieving a deeper penetration (sell more) of its present product within a present market. An organization could sell more of its current product(s) to its current customers, attract competitors customers, or convince non-users to begin using the product, thereby increasing its existing market share. Another growth alternative is to try and identify new markets for its present products. Unilever should sell more of the existing Products in Asia, Europe and North America. Product Line Extension Through a product line extension strategy, an organization might create an augmented product in order to stimulate the current markets and create new ones. Unilever must quickly start pursuing this strategy as its current products are falling out of favour with the consumer and should pursue this further. Market Development By employing a market development strategy, an organization might identify new markets for its product by determining potential user groups for its current products, seeking additional distribution channels in its present locations, or offering its product for sale in new geographic locations, either domestic or international. Another alternative is to develop new products for an existing target market.

Ford has the opportunity to develop a very profitable market in Africa and the pacific region in particular the former commonwealth countries that readily identify with anything British. . New Product Development New Product development in existing Boundaries. Entirely new products can be developed taking into consideration customer tastes and preferences. This will enhance competitive advantage and keep competition at bay. Unilever must use a combination of these strategies to achieve best result in market growth and be able to compete effectively in the industry. COMPETITIVE STRATEGIES Focused Differentiation This occurs when the company a range of clearly differentiated products which appeal to different segments of the market. This will be the most suitable strategy to pursue due to the companies reputation of quality, value and service. It will also be congruent with the core aspirations of the company. Cost Leadership- (problem solution) Although Unilever has not competed on cost in the market it must try to cut costs because it is currently under attack from its competitors on both quality and cost of products. Therefore it must be seen to be challenging the competition not only on the quality of the products but also on the cost. MARKETING MIX STRATEGIES Marketing mix strategies The marketing mix is the means used by the marketer to satisfy customers. 1. Product policies- new product development & brand development Branding family, corporate branding. Branding is part of the actual product and is a major issue in overall product strategy. Branding is used to give products unique identities and helps the marketer to differentiate their product from those of competitors use a tool. o Branding Strategy Family branding: this involves using a brand image and name for a range of products. o Corporate branding: this means that a company uses its own company name as a brand for its products. o Individual branding: this means that each product is given a distinct name and image by a company. Unilever must use this strategy because the brand name is well established, launch costs of new products may be low and brand loyal customers are more likely to try the branded new products

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New Product Development - An organisation that wishes to survive long term, must invest in new product development (NPD). Always, all products eventually reach the decline stage of the PLC. Without new products an organisations sales will eventually become non-existent and Customers will seek competitors products. Additionally, by introducing new and innovative products to the market place first, an organisation may generate customer loyalty and maintain its market share as the market grows. NPD is costly and can be a long process. If a new product fails, a company may make huge financial losses and the ensuring bad publicity can be detrimental. The NPD process helps to minimise the risk of failure. Unilever must heavily invest in this strategy of new product development.

3. Promotion policies Promotion is more than just advertising. It includes almost any form of communication that a company has with its customers. Indeed, it includes communication with stakeholders, suppliers, intermediaries and the general public. The range of parties that a company promotes to is known as the target audience. Promotion strategies and the communities mix When a company is pursuing a pull strategy, it promotes its products to the final customers to encourage them to buy. They are encouraged to demand the product from intermediaries. 4. Place policies Place is the term used in the marketing mix to mean distribution. Distribution involves all the activities necessary in getting a product to a customer. Distribution can be looked from two perspectives: channels of distribution and physical distribution. Channel of distribution refer to the organisations involved (distributors, wholesalers, retailer, agents). Physical distribution refers to the physical transportation, handling and storage of products necessary to make products available to customers. Produce ->Distributor/agent/ -> customer

STANDARDISATION VS ADAPTATION . MARKETING BUDGET After years of little or no advertising, Unilever has embarked on an aggressive marketing program. In line with this position we are proposing the following marketing budget to reflect this aggressiveness and meet the set objectives. The following assumptions are taken into consideration: The marketing budget will be 10% of the previous years sales 23

40% of this Budget will go to advertising. Advertising is the single most important aspect of creating awareness and establishing brand and image in the food and home care industry.

Marketing Communication Plan-Unilever J Activities Online Advertising TV Advertising Trade Advertising Promotional Sponsorship-Gyms Direct Mail Personal Selling Contingencies 2002 Total Turnover has been used as a yardstick-10% xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx F M A M J J A S O N D Millons 1930.80 241.35 241.35 724.05 724.05 241.35 241.35 482.70 4827.00

IMPLEMENTATION A Brilliant marking Plan counts for nothing if it is not implemented properly (Kotler 2000). In implementing the marketing plan for Unilever the following should addressed:Who does what Suitable Individuals and departments should be identified and allocated specific tasks. E.g. managers in Japan can be tasked to increase sale by 30% Where do they do it Specific markets and methods adverting, promotion and distribution must be selected and targeted. When do the do it By the use of a Gantt chart all activities must be planned and scheduled. This helps to monitor and control what has been done and what remains to be done. How do they do it Each activity in the marketing plan must have defined and specific execution steps to accomplish the task.

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MONITORING AND CONTROL

THE BALANCED SCORE CARD

Financial Perspective Critical Success Measure Factor (CSF) Increased Profit profit by

Customer Perspective CSF Measure

Customer satisfaction index Customer ranking survey

margin

Customer Service

10% Increased value for shareholders

Dividend

Internal Perspective

Innovation and Learning Perspective

CSF Improved management structure

Measure Speed to decision making

CSF Service leadership

Measure Speed to market

Response to customer needs

There are 4 type of marketing control that Unilever can employ by using the Balance control card method as follows: Financial Perspective For Unilever to meet the marketing objectives to achieve increased profit of 10% they should closely monitor and measure the profit margin sales, profit

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and other goals established in its annual plan through the use of Management by Objectives. This implies that Unilever should measure the profitability of the products, territories, and customer group, segments, and trade channel and order sizes. To meet the increase in shareholders value, they can measure this through dividends. Customer Perspective The critical success factor of concentration in this area is customer satisfaction and can be measure for control purposes by Maintaining customer satisfaction index and also analysing the problems highlighted by addressing them immediately since Unilever is known to listening to customers. Carrying a customer ranking survey Internal Perspective The other control measures are to improve the management structure as we have recommended previously on the key problems in order to speed up decisions making as the old structure was too tall. Efficiency control this will involve controlling such marketing aspects as sales force efficiency, advertising efficiency, sale promotion efficiency and distribution efficiency Innovation and Learning Perspective Unilever have set themselves as service leaders and should therefore be speedy to make response to customers needs through research and innovation. . Strategic Control Unilever needs to undertake critical review of the overall marketing goals and effectiveness. Unilever should reassess its strategic approach to the market place with marketing-effectiveness reviews and marketing audit.

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BIBLIOGRAPHY
1. Alan H. Anderson and Dennis Baker (1994) Effective Business Policy, a skills and activity-based approach, British Library 2. Gerry J and Kevan S. (1999), Exploring Corporate Strategy, Prentice Hall, fifth edition. 3. John L Thompson (2001), Understanding Corporate Strategy, Thomson Learning 4. Jacqueline .B (1988) Principles and Practice, Effective Marketing. Liverpool Business Publishing. 5. Paul Fifield (1999), Marketing Strategy, British Library second edition 6. Philip Kotler (2000), Marketing Management, Prentice Hall International, Millennium edition 7. Philip Kotler, Wong V, Armstrong G, Saunders J (1999), Principles of Marketing, Prentice Hall International, 2nd European edition 8. Roger Bennett (1996), Corporate Strategy and Business Planning, Financial Times Pitman Publishing 9. T.Lucey (1996), Management Accounting, Martins by Printers, Berwick upon Tweed, Fourth Edition

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