Task: 11(Lo 4.1)
Plan marketing mixes for two different segments in consumer markets.
Unilever is one of the worlds largest consumer product companies and world market leader. It is also leading suppliers of food, home and personal care product with sales in all over the country.
Fast Moving Consumer Goods (FMCG)
Fast moving consumer goods product are relatively low cost and don’t require a lot of time and financial investment to purchase. Profit of individual product FMCG product is less.
FMCG is a classification and wide range of frequently purchased consumer products are toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents and other non-durables products.
Unilever is a fast moving consumer goods company. Unilever provided goods for consumer non-durable product. They are frequently purchased consumer product are toiletries, soaps, cosmetics, toothpaste and other products.
Unilever building powerful brands and achieving a high level distribution. It is a global company. Unilever have powerful supply chain market. Unilever supply chain is the interrelated collection of process and resources. It includes supplier, manufacturers, distributors, wholesaler lead up to delivery to the final customer.
Marketing mix plan:
Product plan: Product planning is mostly important of marketing mix planning. The product must be provide value for the customer. It also have good quality of product. Product planning depends on market research and consumer research.
Price plan: Price planning is a main thing for product and grow up business. Price depends mainly product quality. Customer will assume a higher quality product.
Place plan: place is important for product surveys for customer. It also surveys one place...
... middle of paper ...
...rket have goals.
Product purchased (Derived demand)
Consumer market is origin of product demand. Derived demand means is direct demand. Product is usually less technical and complex. Organizational product demand is based on the demand. products often require technical expertise.
Buying process:
Both markets follow the same buying process. such as information search, alternative evaluation, purchase decision. both market a committee or several people often are involved in every buying process.
Marketing methods:
Salespeople directly marketing on organizational market. They marketing face to face. Marketing material is more technical and more focuses.
Distribution:
Distribution channels are used to reach as many people and consumer market.
For example: a product producer will use physical retailer store, online retailer store to show number of product for consumer.
Adopting a strategy of differentiation makes firms provide products and services what are distinct in some way valued by customers.
Procter and Gamble (P&G) and Colgate-Palmolive (C-P) are two of the largest consumer goods company in the world and have been in the industry since the 80s. The companies manufacture and market fast moving consumer goods (FMCG) such as household products, personal care and hygiene, targeting at various segments of consumers. Among the brands carried by P&G are Downy, Olay, Tide, Clairol and Bounty. Popular brands under C-P are Palmolive, Kleenex, and Colgate.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Unilever is the world third largest consumer goods company which produces a wide range of foods, home care and personal care products. Behind the sustained development over 8...
Unilever is one of the largest packaged consumer goods companies specializing in hundreds of different brands. Unilever is based in Holland and the UK and is jointly owned by Unilever N.V and Unilever PLC. Both companies have the same board of directors but operate as a single entity and list there stock separately. In 2000, Unilever restructured their board of directors by electing new faces to the board and seeing other key members retire, like Jan Peelen and Robert Philips.
The FMCG, or the Fast Moving Consumer Goods sector, is the fourth largest sector of the Indian economy. FMCG items essentially comprise of all the items that are replaced frequently. Some are replaced annually while some might be replaced daily also. It consists of three major segments; personal care items, household products and food and beverage items. The industry thrives on the low cost of production as well as the high volumes of sales.
Unilever, the parent company of AXE shower gel, was founded in 1930 when a soap company and a margarine company merged. Due to their control on oilseeds, the main ingredient for many soaps and margarines, Unilever was able to penetrate the market for soaps and shower supplies. They have since expanded and now own many popular brands such as AXE, lever2000, Ben and Jerry’s, and a number of others. “They’re all part of the ‘Unilever armada of brand names’. To make sure the brand names do not go unnoticed, Unilever spends huge amounts of money on marketing and advertising. Advertising has always been a keystone of Unilever’s businesses.” (“Unilever, Overview”). This focus on advertising is often seen throughout the AXE product market, particularly with their shower gels.
Unilever has been around since the 1890s. According to the Unilever website 13 of their 400 brands have sales that generate an excess of €1 billion per year (Unilever). With sales that total €1 billion per year my strategy would have to cater to those who are looking for a soap that contains more natural ingredients. My company would be a small start-up that does not have the brand recognition
Unilever is a multinational consumer goods company, which includes products like food, beverages, cleaning agents and personal care products. Unilever is the world third largest customer goods company. The brands of Unilever are trustworthy worldwide and because of the feedbacks given by the people, Unilever is stated as one of the most successful customer goods/products companies. Unilever have more than 400 brands which focuses on health and wellbeing, and this is the reason why Unilever has touched so many people lives in many different ways. Unilever collection of varieties varies from nutritionally composed foods to permissive ice creams, inexpensive soaps, comfortable shampoos and everyday domestic care products and goods. Unilever also produces world-leading brands such as Lipton, Knorr, Dove soap, Axe, Blue Band and many more. Unilever is a responsible business as their supportable living strategy sets out to decouple their development from their environmental influence, and at the same time growing their social encouraging influence as well. Their plan has three main aims to achieve by 2020 which are as follows:
3. Distribution Depth - Rural Penetration: There are 5500 towns and 6.38 Lacs villages with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition in urban India, many FMCG companies are devising strategies for targeting rural consumers in a big way. Many FMCG companies are focusing on increasing their distribution network to penetrate with a step by step plan. This is the reason that FMCG urban market size has dropped from 50% to 29% in last 5 years. The FMCG market size for semi-urban and rural segment was 19% and 52% respectively for the year 2006-07. As per FICCI, the FMCG market size for urban, semi-urban and rural for year 2007-08 was expected to be 57%, 21% and 22%, which clearly shows that rural market is the growth engine for FMCG growth. Though the urban markets are growing too, the incremental addition in consumer’s households is much more in rural space as compared to urban markets. The planned development of roads, ports, railways and airports, will increase FMCG penetration in the long term.
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide.
Price - This is the amount of money a customer pays in order to purchase the product. Price setting, discounting, credit and cash purchases are things to think about when setting the price.
In demographics, they can promote their products to a wide range of population and can use product loyalty that is there from generations. They can use automated manufacturing mechanism. They can make use of the current economic crisis where small companies have to liquidate their business as they go into a loss, to increase their sales. As consumers are aware of healthy products, Unilever can boost their sales by launching the product in this sector.
Marketing involves activities to find right people for the business and then gaining their attention and retaining them for life. There are many theories marketers employed to stand their business out of crowd or at least make it visible. To make any business efficiency and effective, it is important to seek the target customer market. There are primarily three main areas to consider while identifying the target market. Those are as follows;
Although Unilever’s Path to Growth strategy involves all components of the general environment, two segments that are especially relevant are the global and sociocultural segments. A major strength of the company’s global environment is its geographic diversification of its major product markets. In 2003, Unilever had sales and marketing efforts in 88 different countries. The key is that it gave decision-making power to its managers in different countries so that they could tailor their products to the market’s specific preferences and consumers’ local tastes. Thus, it was the cross-country preferences of consumers that determined what products Unilever would carry. The global segment provides an enormous opportunity for Unilever. The case states that emerging country markets show the greatest potential for sales growth. Major competitors such as Procter & Gamble and Kraft Foods had sales in roughly 140 to 150 different countries in 2003, and Nestle, Unilever’s main rival, had market penetration in almost every country in the world. If Unilever is able to expand its operations into 50 or more new countries and concentrate its advertising campaign on consumer preferences, it could significantly increase its market share in the global economy.