Download - Unilever strategic marketing
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“150 million times a day, someone somewhere chooses a Unilever
product”
Annie Kao Suzanne 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 Beverages  Cleaning agents  Personal 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 • Anon, (2005). 'Can Unilever create a masterpiece: Competition challenge to
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• 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
• Anon. (2010). One for all: Unity and growth at Unilever. Emerald Group Publishing. 26 (4), pp.25-27
• Blowfield, M. and Murray, A. (2008) ‘Corporate responsibility: a critical introduction’, Oxford University Press.
• 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
• 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]
• Doyle, P. and Stern, P. (2006) ‘Marketing management and strategy’ 4th Ed., Pearson Education
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• Gilligan, C. and Wilson, R. M. S. (2009) ‘Strategic Marketing Planning’, 2nd Ed., Butterworth-Heinemann.
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• Inkpen, A. C. and Ramaswamy, K. (2006). ‘Global strategy: creating and sustaining advantage across borders’, Oxford University Press US.
• Jones, G. (2005). Renewing Unilever: Transformation and Tradition. Oxford: OUP
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• Jöstingmeier, B. (2007) ‘Cross-cultural innovation: new thoughts, empirical research, practical reports’, 2nd Ed., Oldenbourg Wissenschaftsverlag
• •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]
• •Reader, W. J. (1980). Fifty Years of Unilever. London: Heinemann
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• Savitz, A. W. and Weber, K. (2006) ‘ The triple bottom line: how today's best-run companies are achieving economic, social, and environmental success-and how you can too’, John Wiley and Sons.
• Stern, C. W. and Deimler, M. S. (2006) ‘The Boston Consulting Group on strategy’, 2nd Ed., John Wiley and Sons.
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• Wubs, B. (2008) ‘International business and national war interests: Unilever between Reich and empire, 1939-45Volume 13 of Routledge international studies in business history’, Taloyr and Francis