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Marketing Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

Assignment1: 1

Company Background: 1

SWOT analysis: 1

Assignment2: Marketing plan for the company. 3

  1. References. 7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assignment1:

Company Background:

Unilever is the widely known, rapidly growing consumer goods company. It offers varieties of products in personal care, home, foods categories. Unilever sales its product in more than 150 countries and has involved manufacturers across 70 countries. Unilever’s products are in use by the consumers 150 million times per day. The group operates in Africa, Asia, America and Europe. Headquarter of Unilever is in London with the employment of more the 174000 people according to the report of 2008. The Unilever group recorded to gain revenues of E40, 523 million during the end of fiscal year in December 2008, an increment in the revenue by 0.8% during the end of fiscal year 2008 and the increment in the revenue by 36.6% by the end of fiscal year 2007. Unilever’s net profit was E5, 285 million by the end of the fiscal year 2008, and they achieved the increment of 27.8% over the fiscal year 2007 (Unilever.com.sg, 2015).

In this document, a case study has been conducted on Unilever business strategy that will contain the strategic position of the group by conducting the swot analysis. This section of this document will critically assess the strength and weakness along with the competitive situation of the company with respect to company’s product and services. In this document, the first importance will go for the analysis of business strategies of the Unilever and it is a success in market. This will help the reader to understand the key issues regarding Unilever today’s business world (Al-Mohammad, Akroush and Lutfi Odetallah, 2014).

SWOT analysis:

The overall analysis of the company is called SWOT analysis that includes the analysis of Strength, weakness, Opportunities and threats.

 

 

 

 

 

 

 

Helpful

On the way to achieve the objectives

Harmful

On the way to achieve the objectives

Internal origin

(system attributes)

Strengths

  • Global recognition.
  • Strong product portfolio.
  • A strong business relationship with the customer.
  • Effective maintenance of corporate social responsibilities.
  • Various ranges of products.

Weaknesses

  • Dual leadership.
  • Limited access of customer.
  • Inefficient brand management.
  • Lack of control in the market.
  • Less spending on research and development.

 

External origin
(environment attributes)

Opportunities

  • Changing preferences of the customers.
  • Rising need of healthy products.
  • Economic condition of the customers.
  • Rapid growth in population.

 

Threats

  • Decrement in revenue.
  • A huge competitive market.
  • Stronger business environment.
  • Economic crisis.
  • Increment in labor cost and production.

 

 

 

While conducting the business research, various policies have been identified so forth to tackle the issues related to social, political, cultural, technical, socio cultural and economic environment, in order to tackle the competitors and with advanced strategies.

Unilever has the innovative way to handle the political issues. In the year of 1960, countries began to nationalize the foreign products and services that have affected Unilever a lot. Hence, companies started to sale their product using the local prices and started paying for the expertise and employees based on regional employment policy. Due to this adverse effect on this nationalization policy numbers of organizations left so many countries across the world. However, Unilever used its goodwill and experience with many countries to bargain with the government to modify the regulations. On the other hand, Unilever never get involved to sponsor local parties. Even nowadays Unilever achieved political ground with their experience and deliberate strategies. Today Unilever is part of numbers of organization across the world. Unilever’s main aim is to achieve the favourable business environment to facilitate overall management (Unilever: Rotterdam becomes centre for marketing and innovation, 2013).

Unilever market environment is becoming highly competitive mainly in the Western Europe. Proctor & Gamble is one of the key competitors in the European market. Consumer nowadays have less interest in buying luxurious and branded product that they in due to current economic situation. Even in the developing countries there were less political stability along with the emerging economies, Unilever has adopted different strategies to make is sure that profitability drive is sustained. Some products are sold in small packages or with low quantity for those, who are regular earner and have less affordability to purchase quality product with huge quantity. In some of the developing countries, there was huge uncertainty in paid duties due to the fluctuation of currency and increase. Hence, the effect on the Unilever caused profit in 2005 compared to 2004. However, there was an increment in their turnover (Unilever.com.sg, 2015).

With the sustainability drive, Unilever became able to maintain their socio-cultural environment and adopted sustainability drive. The Company dedicated their work to offer consumer with better nutrition and improved hygiene. Though, lack of literacy sometime hinder the growth of marketing, such as, advertisement using print media. In this scenario, it is required to gather more resources and event, for example, face-to-face communication. On the other hand, Unilever adopted about 100 nationalities in order to ensure the diversity must take place for consumers and employees equally. Hence, Unilever focused on building exclusive culture by approving the differences in various range of products that has resulted high market demand across the evolving markets.

On the other hand, for the improvement of the business, Unilever has given lots of effort in R&D and along with that Unilever has been spending on IT since 2000. Henceforth, Unilever has adopted the area of e-business to improve the brand’s communication to reach their customers and to build effective supply chain management and endorse the transaction processing system along with the chain. Nowadays, Unilever is trying to minimise the cost on IT to spend. On the other hand, Unilever technology venture works collaboratively with the R&D group of Unilever in order to meet customer requirement.

In order to carry its corporate and social responsibilities, Unilever designed management system by keeping health and safety concern of employee and consumers’ in mind. Unilever’s management policy make it sure that there must be a formal management system for environment supervised by Unilever’s operator. Unilever is engaged in providing training programs in various regions to ensure different level of agreement with company standard for Safety Environment Care and Occupational Health. 

Assignment2: Marketing plan for the company

While adopting a marketing plan, it is required for a company to adopt the structural changes first it order to incorporate the advancement. Numbers of organizations are there who have gone through the change management to adopt the required changes effectively in organization. To implement an effective marketing plan, it is required understand the further requirement or the gaps until now in the existing processes. Some time, Authorities in an organization remove the problems or gaps only by imposing the advancement in terms of methods or technology and remove controls and distribute a single task at in different management level. However, with the passing time, the entire work distribution narrowed down and turns up with previous scenario, as authorities think so much of future aspects and problems rather than thinking about the present scenario and root of the problem, i.e., they choose corner stone rather than the cap stone. This is the point, where the changes must take place. Unilever follows four pillars of Unilever’s vision in order to achieve the long-term path for the company (UNILEVER SUSTAINABLE LIVING PLAN SCALING FOR IMPACT SUMMARY OF PROGRESS 2014, 2015). The four pillars are-

  • Unilever work to make the better future.
  • Unilever helps people to look and better and to get quality life with the quality product and services those are good for the organization and for others.
  • Unilever will inspire people to take small actions based on everyday life that can add a huge difference for the world.
  • Unilever will broaden new aspects of doing business to allow the expansion of the company by reducing the negative impact on environment.

On the other hand, Unilever is putting their emphasis on sustainable growth of the organization. With the help of Unilever’s Sustainable Living Plan, Unilever is dedicated to serve their customers by dividing the environmental impact, enriching the livelihoods of millions, who are working in Unilever’s value chain and offering better in terms of well-being and health of more than a billion people– and Unilever has aimed tough targets to ensure the delivery of sustainable product. Unilever is involved with other organisations by making partnerships with them and the partnership has the ability to change things widely– with a focus on deforestation, climate change and; smallholder farmers and sustainable agriculture; and sanitation, water, and hygiene (Unilever.com.sg, 2015) .

Business was not as usual an option. Hence, they are focused to make sustainable drive for each action. Henceforth, they are adopting business models that includes-

  • The supply of raw material from the sustainable resources.
  • Well-being of people and health are the foremost priority for the Unilever.
  • The improvement of the opportunities and rights in order to give women fair deals.
  • The production and of the products must be in such a way that can safeguard the future generation.

Unilever has a history on the way to tackle the issues that society goes through. In 19th century, Unilever’s business was situated in order to offer bunch of markets using the products such as soaps and spreads for the improvement of the nutrition and hygiene. Today, Unilever’s Sustainable Living Plan is driving the sustainability in every aspect of Unilever’s business and allowing new opportunities and sustainable growth. Hence, people are choosing the purpose-driven brand, for example, Lifebuoy and Dove. As per the consumers’ needs, Unilever is innovating new laundry products that will use less water. On the other hand, Unilever is focused on giving training to the smallholder farmers about the sustainable practices in order to achieve more secure supply chain. Hence, they have introduced benefits from the reduction of the negative impact of the environment that can cause their transformation in their business processes and redesigning products and their packaging.

Reduction of the greenhouse gases is the major priority for Unilever. In the year of 2014, Unilever has reduced the emission of CO2 in Australia, in per tonne of production by 8% compared to 2013 and 28% compared to the 2008 baseline. Unilever has achieved improved practices in manufacturing and investment for the new technologies for the entire laborious and hard work for the employees who are dedicated to improving each of the fact of manufacturing operations. The execution of new recovery and recycling methods, such as wood-chipping ice-cream sticks, bio-remediation, and divergence of plastic glasses to the plastic forest enables Unilever to dispose the waste away from the landfill.

Target Customer:

While there is a target to make the whole business leveraging, it is required for the Unilever to make the business large along with the sustainable development of the product. Hence, in this technology obsessed world Unilever must put a heavy focus on the customers who are more tend to purchase product and online. There is a huge proportion of people are who are obsessed with the technology. Even customers heavily rely on the Internet in order to have product reviews and to compare product and services while they are online. Even organizations now a day are more tend to use effective tools and methodologies in order to achieve customer demand. Even numerous analytical tools are in use by numbers of organization in order to classify their customers and their service categories. Hence, it can be possible for the high authorities of the organization to take the effective customer-centric decision.

On the other hand, working with smallholder farmers to keep them and their families healthy with the supply of hygiene and good nutrition will drive economic development and helps Unilever to meet their desired goals for the sustainable growth. With the Global Association to achieve the Improved Nutrition or GAIN, Unilever has created a global programme to achieve the improvement in nutrition and better health and of 2.5 million people, whose livelihood is in rural communities.

In this scenario, Unilever has already adopted the cloud computing solution and migrated from the VMware to Hyper-V technology using the windows server 2008 R2.After that, they used the Microsoft System Centre 2012 and Hyper-V for the creation of virtual cloud, which consists of 3,175 virtual machines along with the private cloud infrastructure. After considering the organizational growth and customer demand, Unilever decided to be more active on their work front, and they are also able to deliver their IT services 40% faster and become more responsive in the workplace.

Unique selling position:

Unilever’s product and service prices are considered as the unique selling position. Only food products are not only responsible for bringing the business success, but the services based on the meal preparation through the brand and services of Unilever also helped the Unilever to achieve a suitable market scenario. Even, Unilever is not only selling the top quality product but also offer services to the kitchen preparation, menu organization, and guest satisfaction.

As a new marketing plan, Unilever can offer more varieties of the product among their potential customer. Nowadays, Consumer has less interest in buying luxurious and branded product that they in due to the current economic situation. Even in the developing countries there was less political stability along with the emerging economies, Unilever can adopt different strategies to make is sure that profitability drive is sustained. Selling products with small packages or with low quantity for those, who are regular earner and have less affordability to purchase a quality product with huge quantity can attract more customers. Even the adoption of analytics tool can help to gather data on the business transaction, stakeholders, and consumers and also helps to analyse those data to categorise the customers as per their buying behaviour. There are numbers of organizations are there who tends to adopt the new methods and technologies in order to retain the potential customer and attract new customers.

Pricing and positioning strategy:

While Unilever is already maintaining their e-presence, that has influenced their pricing strategy.  Association with various brands has made it possible to bring the larger picture of the organization in the market. In order to monitor every transaction processes, it is required to bring the different part of the organization integrated. There are numbers of Organizations are there who follow a strong networking infrastructure in order to integrate different business processes and take overall business processes as a whole. Henceforth, Unilever can adopt some market-based analysis tools to know the buying behaviour of the customer. Hence, it can be possible for Unilever to set some business goal based on adopted strategies on pricing. For example, association mining based analytic tool will help the Unilever to understand the market of their each of the product as association rule mining finds the frequency of sale of each of the product with respect to the total transaction in a whole day or specific period of time. There are numbers of organizations are there, conduct market-based analysis for each of their product to know the demand for a specific product with respect to the substitute product.

On the other hand the implementation of Epos system, i.e., electronic point of sale can help to make monitor each of the transaction by integrating different systems across the organization.

Though, besides the food products, the services based on the meal preparation through the brand and services of Unilever are there to help the Unilever to achieve a suitable market scenario. Even, Unilever is not only selling the top quality product but also offer services to the kitchen preparation, menu organization, and guest satisfaction. After all this steps, Unilever still requires a strong infrastructure to deal with customer feedback and to take them more seriously. On the other hand, based on the market for a product or the customer demand it is recommended that Unilever must offer promotional prices and offers to attract the customers and stakeholders.

 

 

Distribution plan:

Unilever’s partnership with the ELII or the Enhanced Livelihoods investment initiate has taken place, in order to provide a better-organized way for Unilever to buy products from small producers. This plan has enabled Unilever encourage the farmers to make more income and also allows the way to improve the livelihood of the small customers and their communities across the South Asia, Africa, Latin America, and the Caribbean.

The ELII will be a minimum of three-year investment with the support of $10million investment to catalyse the economic expansion and lessen poverty amongst communities with low-income while allowing more sustainable and comprehensive value chains. One of its primary goals is lessening poverty by leveraging market-based approaches, to generate and trigger the growth of the privately held enterprises that will prop up smallholder farmers and associate them to the distribution networks and global supply chains of the Unilever.

Involvement with the smallholder farmers, make it sure that they and their families must have the quality life with the supply of hygiene and good nutrition that will allow the smooth flow of economic development and helps Unilever to meet their desired goals for the sustainable growth. Global association to achieve the Improved Nutrition (GAIN) has the association with the Unilever, which has created a global programme to achieve the improvement in nutrition and better health and of 2.5 million people, who are inhabitant of rural communities. Unilever’s Nutrition interference Programme aspires to reach the farm workers and smallholder farmers in Unilever’s global supply chain and distribution network. There is an emphasized focus on children, pregnant women, and female farmers, as GAIN’s research gives an idea to stop the cycle of malnutrition in poor rural communities.

 

 

 

 

 

 

 

 

 

 

References

Al-Mohammad, S., Akroush, M. and Lutfi Odetallah, A. (2014). Marketing culture and business performance. Marketing Intelligence & Planning, 32(7), pp.794-822.

Al-Mohammad, S., Akroush, M. and Lutfi Odetallah, A. (2014). Marketing culture and business performance. Marketing Intelligence & Planning, 32(7), pp.794-822.

Das, G. (2014). Store personality and consumer store choice behaviour: an empirical examination. Marketing Intelligence & Planning, 32(3), pp.375-394.

Das, L. (2012). Social Marketing: A Classic Case of Sustainability Model by Hindustan Unilever Ltd. IOSR Journal of Business and Management, 1(5), pp.6-8.

Eiselé, J., Wong, T. and Carlile, M. (2014). Celebrating 10 years of partnership between FDI and Unilever. Int Dent J, 64, pp.35-37.

From Metrics to Action - Interview with Nicholas Chesterton, Unilever. (2015). GfK Marketing Intelligence Review, 7(1).

Kursunluoglu, E. (2014). Shopping centre customer service: creating customer satisfaction and loyalty. Marketing Intelligence & Planning, 32(4), pp.528-548.

Luu, T. (2014). Knowledge sharing and competitive intelligence. Marketing Intelligence & Planning, 32(3), pp.269-292.

Mai, L. (2014). Consumers' willingness to pay for ethical attributes. Marketing Intelligence & Planning, 32(6), pp.706-721.

Manai, A. and Holmlund, M. (2015). Self-marketing brand skills for business students. Marketing Intelligence & Planning, 33(5), pp.749-762.

Pagla, M. and Brennan, R. (2014). The development of brand attitudes among young consumers. Marketing Intelligence & Planning, 32(6), pp.687-705.

Unilever postpones marketing moves and creates new problems in doing so [1 table]. (2002). Focus on Surfactants, 2002(6), p.6.

UNILEVER SUSTAINABLE LIVING PLAN SCALING FOR IMPACT SUMMARY OF PROGRESS 2014. (2015). 1st ed. [ebook] Available at: http://www.unilever.com.sg/Images/Unilever-Sustainable-Living-Plan-Progress-Report-2014_tcm205-429033.pdf [Accessed 17 Aug. 2015].

Unilever.com.sg, (2015). Innovation | Unilever  SG. [online] Available at: http://www.unilever.com.sg/innovation/ [Accessed 17 Aug. 2015].

Unilever.com.sg, (2015). Unilever Singapore | Singapore. [online] Available at: http://www.unilever.com.sg/ [Accessed 17 Aug. 2015].

Unilever: Rotterdam becomes centre for marketing and innovation. (2013). Focus on Surfactants, 2013(2), p.7.

 

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