This analysis consists of three parts: External Assessment, Internal Assessment, and Aalysis & Recommendations External Assessment 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. Another important piece of Unilever’s general environment is the sociocultural segment. One of the company’s founding values is understanding and improving consumers’ lives. A major strength of Unilever lies in its ability to anticipate consumer trends and demands and then cater to their needs. For example, market research indicated that nutrition was the number one concern in the United States, Germany, and the United Kingdom, and that weight was the number three concern. The focus of peoples’ attitudes became living healthier lifestyles. To move with the trend Unilever acquired SlimFast. SlimFast was the U.S. market leader in the weight management and nutritional supplement industry, with a 45% market share. The acquisition seemed promising in the beginning. Approximately 94% of SlimFast’s sales were in North America, which presented a huge opportunity to diversify into foreign markets such as Germany and the United Kingdom. Unfortunately the healthy lifestyle that peop... ... middle of paper ... ...l investment costs. Unilever would likely have to spend millions just to enter a new country. It would have to deal with different governments and laws and regulations as well. If such investments were to go sour, Unilever could find itself with millions or even billions of dollars/euros of fixed costs in an unprofitable country. Lastly, Unilever should focus on restructuring SlimFast and turning it into a profitable part of the company. One of Unilever’s major strengths is its ability to acquire and then integrate new firms. Unilever should focus its marketing and R&D departments towards finding products that will satisfy consumer needs. It needs to focus on healthy, low carbohydrate drinks and diet bars to get it back atop the market. At first, success could be measured in terms of whether or not SlimFast once again becomes profitable. If it achieves profitability, then it can measure success based upon market share. Some possible disadvantages would be compromising SlimFast’s values and principals. SlimFast is a company that used only natural ingredients in its products. If the company does not buy in to the new strategy, then the whole restructuring could be a disaster.
Social attitudes of today’s society have changed the way people live, people now are working longer hours to sustain the financial demand that is needed in-order to keep up a higher standard of living, “One quarter of working men and 11% of working women in the UK now work more than 50 hours per week” . This is a social problem because it encourages people to eat ‘fast food’ type products such as pasties, sausage rolls, pre-packaged sandwiches and microwavable take-away items such as burgers & hot dogs etc, which all have high percentages of saturated fats, sugars and salts. These ‘fast foods’ are eaten because of their convenience and due to time shortages from working longer hours these food are the easy option. This implicates less healthy diets and obesity in the UK population. Tesco’s have and still currently sell these items but to combat this problem in 2000 Tesco launched their ‘Healthy Living’ brand of foods which are lower in fat, no added sugar and low in sodium, and in 2004 launched their ‘Healthy Living Club’, which has over 350, 000 members and offer over 500 ‘Healthy Living’ Products. The club offers customers information on diets, weight loss and other health issues.
Introduction Innocent is a well-established smoothie and health food company in its home market of the UK and has had success in moving into various markets in the European Union. With the added partnership with global brand Coca-Cola, it could be said that Innocent is in prime position to begin its expansion into new markets globally. This report will note the benefits and potential risks of entering the chosen market of Japan, based on research and theoretical analysis. Japan was first chosen due to initial research showing that it was one of the most health conscious countries in the world, with the lowest obesity rates. Further investigation showed their links with Coca Cola, and a gap in the market for ‘off the shelf smoothies’, despite the existing popularity of health drinks and demand for commuter friendly food.
Upon review, Ben & Jerry’s Homemade should approve the offer from Unilever for $36.00 (cash) per share. In reviewing the offers two questions were presented. The two questions included: the social mission of Ben & Jerry’s surviving a takeover, and maintaining the best interests of the shareholders. To follow, will be the justification for the Unilever offer, alternative offers, and the risks that are involved with a possible takeover.
Slim-Fast Company manufactures meal replacement shakes, drink powders, protein snack bars, and meals, all throughout the United States, Europe, Asia, and Latin America (http://www.fundinguniverse.com/company-histories/slim-fast-foods-company-history/). Slim-Fast was introduced in 1977 funded by Thompson Medical Company. Increasing popularity, Slim-Fast was well known in the 1980’s. Televised advertisement was a main focal source to advertise their product, as well as having celebrity spokesmen features to help with advertisement. Thompson Medical Company diversified itself into Slim-Fast, in 1990. Unilever acquired the company, including the consumer products, in 2000. Slim-Fast advanced to its fame then was required to reevaluate its product design in 2003.
Kruger (1999) agrees that “the moment when you think that you have discovered the ‘truth’ about yourself, is also a moment when power is exercised over you." As a result, when “I” go to shop, “I” probably regard as a subject, and get to know what “I” likely to be about the self. It is important to understand the consumers’ identification in term of looking insight of themselves. In this work, there will be given a belief introduce of how identity influence the consumers’ point of view of themselves with the process of purchasing. Then, there are individualism and collectivism identity, lifestyle identity, self-identity and social identity as well as gender roles identity are going to present with a few real advertising respectively before drawing
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Identity can be defined as an direct image of what a persons ' appearance, thinks, feels and behaviour (Americus Reed, Mark R. Forehand, 2012). It means how people see themselves and how others see them. According to Maslows hierarchy of needs, self-actualization needs at the top of the pyramid model which is the need of human hope to realize their potential and get self-satisfaction. Consequently, identity is the best embodiment of such indicators of this need. In addition to this, consumer behavior is the basic study of marketing decision and the developing marketing strategies. It is the consumer to obtain, use and disposal of the various actions taken by goods or services,
Conspicuous and Symbolic Consumption: how consumers buy into apple brand to project a character or persona onto a society or demographic that reinforce the ideal image of themselves and how others perceive them. The primary focal point of this research is to assess the self-image projected by Apple and how Apple exploits this. In relations to decision making, affiliation, social class and perception. In this instance; if purchases are cleared based on marketing tools, social influence or motivation.
This decision will leave P&G with roughly 70 brands that account for 90% of its $83 billion in annual sales and over 95% of its profit (Ng, 2013). By cutting down on the number brands they have, P&G will be able to invest more in the products they know are performing at a high level. When asked about this decision and its effect on the company’s size, Former CEO A.G. Lafley responded saying, "I 'm not interested in size at all, I 'm interested in whether we are the preferred choice of shoppers (Ng, 2013)." With this plan in motion, P&G can put more effort into growing the brands that their consumers know and trust, and they can continue to build their potential
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
Therefore, I think the next strategy for future global growth, should be more focus on healthy and organic food option. In addition, the company should use strong marketing tools, from menu boards to national television advertising campaigns, to help customers understand the nutritional choices
However a continuous rise in globalisation could be presented as a challenge for Sainsbury’s. One of the biggest economic factors is the rising costs of fuel which will impact right through the supply chain of Sainsbury’s leading to increase of its products. Social factors to consider due to increase in trend in healthy foods, so for Sainsbury’s to keep up with trends, it would be something to consider. The use of technology for great retailers such as Sainsbury’s is an important factor, persistent upgrading of technologies such as self-checkouts, computerised stock control etc., means less room for human errors. Concerning environmental, reducing carbon footprint is emphasised to big companies. “Companies like Sainsbury’s can contribute a lot of impact on the environment. To do this Sainsbury’s would have to put in more towards the green issue” (UK Essay 2014) Legally, Sainsbury’s would have to make sure to follow policies concerning label and packaging which could be an added financial load to Sainsbury’s. Sainsbury’s should act on its threats, to achieve its goals and
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.
Unilever’s steady underlying improvement in Europe has continued, with 2.8% growth in the year. The fourth quarter was particularly strong, at 5.5%, against a weaker comparator. The Americas were up by 4.1% in the year, with Brazil and Mexico improving through the year, while the US grew solidly at 3.2%. Asia Africa has shown consistent, broad-based growth across countries and categories throughout the year, up by 11.1%. This demonstrates that merging with globalised technologically advanced companies such as SAS, and using their expertise, is paying dividends for Unilever. (Unilever’s Annual Report, 2007) (Drinks Business Review, “Unilever selects SAP as standard for global IT Strategy”, May 2007)
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: