unilever strategic marketing
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“150 million times a day, someone somewhere chooses a Unilever
product”
Annie KaoSuzanne Haffenden
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Who are Unilever
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Origins of Unilever Operational style Strategic style Examples of strategic
style Competitive environment Current strategies
Simon Clift Marketing lessons
learnt Future prospects
Overview
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The origins of Unilever
Unilever is an Anglo-Dutch multinational corporation that owns consumer products in;
Food and BeveragesCleaning agentsPersonal care
Created in 1930 from a merger between the British soap maker Lever Brothers and Margarine Unie
As palm oil was a major raw material for both soaps and margarines
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Unileverlisation Mergers and acquisitions – grew through
repeated mergers of companies who usually retained their names and brands. This encourage strong belief and initiative to de-centralise control
Conglomerate
Operational Style
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Strategic Style
Research and Innovation Localisation Diversification into a broad category Multiple segment specialisation - developing
products to target every segment. Serving multiple markets whilst differentiating products in a way that meets needs of each segment
Developing in emerging markets
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Brand Expansion
“The Beauty Soap of Film Stars”
Icon Brand
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Unilever Brands
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Unilever Brands
Localisation Building businesses organically The world's biggest ice cream company Ben & Jerry's
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. Research and Innovation Different needs for different hair types
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Concentrating on emerging markets Understanding different consumer needs Offering products at different price points
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Developing and Emerging Market Opportunity
Bottom of the Pyramid
Multi-trillion dollar opportunity
Billions of people out of poverty in the next 10 years
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Developing and Emerging Market Opportunity
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Competitive environment
Key Competitors Proctor and Gamble Nestle Colegate-palmolive Kraft Supermarket private lables
The management of the smaller brands slowed down its growth.
Whilst their competitors concentrated on global development and economies of scale.
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Current Strategies
Downsizing brand portfolio –stream line the business portfolio to reflect vitality concept
1,500 – 400 master brands Also, acquisition of high profile food brands
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Unilever’s Growth Matrix
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Simon Clift
First chief marketing officer for Unilever“Unilever was effectively a holding company – a conglomerate.
That led to a very complex brand portfolio, with thousands of formulations, positionings, and ways of developing
advertising.”
(Marketing Week)
Centralised marketing culture Concentrates on building the brands New Unilever brand identity
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Simon Clift
Dove and Lynx
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Marketing Lessons learnt
1. Be forward thinking and with constant innovation – looking beyond organisation’s walls.
2. Defend its territory through growth and diversification
3. Bigger is not always better.
companies need to contract and recognise its weaknesses.
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Future Prospects
How will Vitality be brought amongst all their brands?
How will they overcome two contradicting values?
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Thank you for listening….
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References
• Renewing Unilever: transformation and traditionAuthorGeoffrey JonesEdition illustratedPublisher Oxford University Press, 2005
• International business and national war interests: Unilever between Reich and empire, 1939-45Volume 13 of Routledge international studies in business historyAuthor Ben WubsEdition illustratedPublisher Taylor & Francis, 2008
• Strategic Marketing PlanningAuthors Colin Gilligan, Richard M. S. WilsonEdition 2, illustratedPublisherButterworth-Heinemann, 2009
• Global strategy: creating and sustaining advantage across bordersStrategic management seriesOxford scholarship onlineAuthors Andrew C. Inkpen, Kannan RamaswamyEditionillustratedPublisher Oxford University Press US, 2006
• Corporate responsibility: a critical introductionAuthors Michael Blowfield, Alan MurrayEdition illustratedPublisher Oxford University Press, 2008
• Fieldhouse, D. K. (1978). Unilever Overseas: The Anatomy of a Multinational. California: Hoover Institution Press
• Reader, W. J. (1980). Fifty Years of Unilever. London: Heinemann
• Brownsell, A. (2009). Can Unilever's brand be applied to all? Marketing News [online] http://www.marketingmagazine.co.uk/news/874428/Unilevers-brand-applied-all/ [accessed 16th April 2010]
• Frost, R. (2005). Should Global Brands Trash Local Favorites. Brandchannel [online] http://www.brandchannel.com/features_effect.asp?pf_id=253 [accessed 16th April 2010]
• Boze, B. V. & Patton, C. R. (1995). 'The future of consumer branding as seen from the picture today'. Journal of consumer marketing. 12 (4), pp. 20-41
• Mesure, S. (2002). Nestle steps up ice-cream war with Unilever by buying Dreyer's. The Independent. [online] http://www.independent.co.uk/news/business/news/nestlatildecopy-steps-up-icecream-war-with-unilever-by-buying-dreyers-645661.html [accessed 16th April 2010]
• Anon. (2010). One for all: Unity and growth at Unilever. Emerald Group Publishing. 26 (4), pp.25-27
• Schwarzkopf, S. (2009). 'Discovering the Consumer: Market Research, Product Innovation, and the Creation of Brand Loyalty in Britain and the United States in the Interwar Years'. Journal of Macromarketing. 29 (1), pp.8-20
• Jones, G. & Miskell, P. (2007). 'Acquisitions and Firm Growth: Creating Unilever's Ice Cream and Tea Business'. Business History. 49 (1), pp.8-28
• Anon, (2005). 'Can Unilever create a masterpiece: Competition challenge to a consumer-goods leader'. Emerald Group Publishing. 21 (5), pp.11-14
Anon. (2009) 'The changing face of Unilever: Out with the old and in with the new'. Emerald Group Publishing Limited. 25 (5), pp.24-27
Jones, G. (2005). Renewing Unilever: Transformation and Tradition. Oxford: OUP