The brand portfolio of the Unilever group

With 400 brands spanning 14 categories of home, personal care and foods products, no other company touches so many people’s lives in so many different ways.

Our brand portfolio has made us leaders in every field in which we work. It ranges from much-loved world favorites including Lipton, Knorr, Dove and Omo, to trusted local brands such as Blue Band and Suave. 

From comforting soups to warm a winter’s day, to sensuous soaps that make you feel fabulous, our products help people get more out of life. 

We’re constantly enhancing our brands to deliver more intense, rewarding product experiences. We invest nearly â‚¬1 billion every year in cutting-edge research and development, and have five laboratories around the world that explore new thinking and techniques to help develop our products. 

Today Unilever employs 163 000 people, sells products in 170 countries worldwide, and supports the jobs of many thousands of distributors, contractors and suppliers. 

Unilever Brands Categories :

Food brands

Home care brands

Personal care brands

www.unilever.com

www.wikipedia.com/unilever-history

Give a general explanation of PEST and Porter’s Five Forces Analysis (Pass)

Porter’s Five Forces

The pure competition model does not present a viable tool to assess an industry. Porter’s Five Forces attempts to realistically assess potential levels of profitability, opportunity and risk based on five key factors within an industry. This model may be used as a tool to better develop a strategic advantage over competing firms within an industry in a competitive and healthy environment. It identifies five forces that determine the long-run profitability of a market or market segment

Power of suppliers

An industry that produces goods requires raw materials. This leads to buyer-supplier relationships between the industry and the firms that provide the raw materials. Depending on where the power lies, suppliers may be able to exert an influence on the producing industry. They may be able to dictate price and influence availability. A segment is unattractive when an organization’s suppliers have the ability to:

Increase prices without suffering from a decrease in volume

Reduce the quantity supplied

Organize in a formal or informal manner

Compete in an environment with relatively few substitutes

Provide a product/material that is a critical part of the end product or service

Impose switching costs on their customers when they depart

Integrate downstream by purchasing or controlling the distribution channels.

Power of buyers

The power of buyers describes the impact customers have on an industry. When buyer power is strong, the relationship to the producing industry becomes closer to what economists term a monopsony. A Monopsony is a market where there are many suppliers and one buyer. Under these market conditions, the buyer has the most influence in determining the price. The bargaining power of buyers increases when they have the ability to:

Be “organized” in some form with others providing similar products and services

Purchase a product that represents a significant fraction of the buyer’s costs

Buy a product that is undifferentiated

Incur low switching costs when they change vendors

Be price sensitive, with other options available

Integrate upstream, to purchase the providers of the goods.

Barriers to entry/exit

The possibility of new firms entering the industry impacts competition. A key is to assess how easy it is for a new player to enter an industry. The most attractive segment has high entry barriers and low exit barriers. The definable characteristics of each industry protect profitable areas for firms and inhibit additional rivals from entering the market. These inhibitive characteristics are referred to as barriers to entry.

Barriers to entry are unique characteristics to each industry. They reduce the rate of entry of new firms and, therefore, maintain a level of profits for current industry competitors. Barriers to entry can be created or exploited to enhance a firm’s competitive advantage. Barriers to exit work similarly to barriers to entry, Exit barriers limit the ability of a firm to leave the market and can exacerbate rivalry unable to leave the industry, a firm must compete.

Substitute products

Porter’s Five Forces model refers to “substitute products” as those products that are available in other industries that meet an identical or similar need for the end user. As more substitutes become available and affordable, the demand becomes more elastic since customers have more alternatives. Substitute products may limit the ability of firms within an industry to raise prices and improve margins.

Rivalry

Firms strive to secure a competitive advantage over their rivals. The intensity of rivalry varies within each industry and these differences can be important in the development of strategy. For example, the intensity of rivalry is increased by the following industry characteristics:

Numerous competitors that are particularly strong or aggressive that are competing for the same customers and resources

Declining sales revenues and volumes resulting in slow market growth, creating the need to actively fight for market share

High fixed costs result in an economy of scale effect

High storage costs or highly perishable products

Plant capacity is being added, over and above what is needed to meet demand

Low switching costs for buyers

Low levels of product differentiation

Strategic stakes are high when a firm is losing market position or has potential for great gains

High exit barriers place a significant cost on abandoning the product.

PEST Analysis

Political, Economical, Social and Technological factors also affect the company as a whole. If the Political or Economical condition of the country is not strong, this can affect the business as well.

Political Factors

Politics affects the business a lot; because a company must follow certain rules or regulations (laws) made by the government. Creation of different laws depends upon the ruling political party. For example, the end of Cold War has been a big change for weapon makers. Moreover Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:

Tax policy

Employment laws

Environmental regulations

Trade restrictions and tariffs

Political stability

Economic Factors

The economic condition of the country and state has a great influence on the company progression. The different economic policies, which affect business, are

Taxation

Interest rates

Currency rate

Public economic condition (either people are poor or rich)

Inflation rate

Social Factors

Social values, beliefs, religion and culture really affect the business. Business must be according to social aspects. For example, in Pakistan we cannot sale or purchase things like wine, because it is against Islamic faith. Another example is of wearing shorts by the women. Here it is unsocial, so we cannot start the business of selling shorts to women. Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:

Health consciousness

Population growth rate

Age distribution

Career attitudes

Emphasis on safety

Technological Factors

The most challenging factor for marketing manager is technological factor, because growth of the company depends upon the “innovation” and for innovation, the use of new technology is very much important. In order to beat the competitors, an organization must have effective research, planning and marketing of new products and for this purpose new machinery, techniques and ideas are very much important Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

R&D activity

Automation

Technology incentives

Rate of technological change

Discuss and Propose Segmentation Criteria to be used for any of two products of the above company in different markets (Pass)

Market Segmentation: -Market segmentation divides market into smaller units that can be reached more efficiently and effectively. Market segmentation is divided into four groups.

Demographic Segmentation

Demographic segmentation is dividing the market into groups based on variables such as age, gender, family size, family life cycle, income occupation, education, religion and nationality.

Age: -Consumer needs and wants change with age. Companies offer different products for different age groups e.g. Johnson’s baby lotion for kids, play stations for teen age’s etc

Gender: -Gender segmentation is dividing the market into different groups based on gender e.g. clothes for males and females etc

Income: -Income segmentation is dividing the market into different income groups. Marketers produce products and services for different income segmented groups such as automobile industry, boats, clothing’s etc.

Geographic Segmentation

Geographic segmentation is dividing the market into different geographical groups e.g. countries, regions, cities, towns’ etc World region or country.

Psychographic Segmentation

Psychographic segmentation is dividing a market into different groups based on social class life style or personality characteristic.

Behavioral Segmentation

Behavioral segmentation is dividing a market into groups based on consumer knowledge, attitude, uses (potential users/non users) or their response to a product.

LUX Soap By UniLever

Lux soap was first launched in India in 1809 as a flaked version of Sunlight soap. Subsequently it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at ‘delicates’. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harsh lyes that were often used in soaps at the time. The flake-type soap allowed the manufacturer some leeway from lye because it did not need to be shaped into traditional cake-shaped loaves as other soaps were. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use. Lux is currently a product of Unilever. The name “Lux” was chosen as the Latin word for “light” and because it was suggestive of “luxury.”

Lux toilet soap was introduced as a bathroom soap in the US in 1925, and in the UK in 1928 as a brand extension of Lux soap flakes. Subsequently Lux soap has been marketed in several forms, including handwash, shower gel and cream bath soap.

http://en.wikipedia.org/wiki/Lux_%28soap%29

Geographic Segmentation:

Countries: The Unilever have Geographic Segmentation all over the world. For the product Lux the also have same segmentation criteria as regional division. Like Lux India by Unilever Hindustan and Lux Pakistan By Unilever Pakistan. Where as soap is designed as demand of Geographical regions.

Lipton Tea

Lipton was created at the end of the 19th century by Sir Thomas Lipton in Glasgow, Scotland. His enterprise soon flourished and he established a chain of grocers, first across Glasgow, then the rest of Scotland, until finally he had stores throughout Britain.

Under the slogan “direct from the tea gardens to the tea pot”, Lipton wanted to make tea a popular and approachable drink for everyone.

In 1929, the Lipton grocery retail business was one of the companies that merged with Home and Colonial Stores to form a food group with over 3,000 stores. The group traded as Home and Colonial Stores until 1961 when it took the name of Allied Stores.

Lipton’s became a supermarket chain focused on small towns, before Allied’s 1982 acquisition by Argyll Group: the supermarket business was rebranded as Presto during the 1980s.

Meanwhile, the Lipton tea business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the US and Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the remainder of the global Lipton business.

Brands

Lipton’s main pillar brands are Lipton Yellow Label and Lipton Iced Tea. Other product lines exist as well, like the Lipton pyramid range in Europe and North America, and Lipton Milk Tea in East Asia. In 2008 the brand launched Lipton Linea in Western Europe, a green tea variety with a higher level of catechins, which the company claims can help one lose weight.

Lipton Yellow Label

Lipton Yellow Label has been sold since 1890, when Sir Thomas Lipton created the first version of the Yellow pack with a red Lipton shield, which to this day typifies the Lipton Yellow Label brand. It is sold in 150 countries worldwide.. Lipton Yellow Label is a blend, meaning that up to 30 teas from many different origins are blended together to create a consistent quality and taste.

Lipton Yellow Label blend is available both in tea bags, the preferred format in Western Europe, North America and Australia, a well as loose packaged tea, the preferred format in much of the Middle East and throughout Asia.

In 2008 Lipton Yellow Label became the first tea globally to bear the Rainforest Alliance Certified Seal on pack.

In April 2010, a new global advertising campaign for Lipton Yellow Label was launched, featuring the well-known composer Lalo Schifrin composing his famous tune for the Mission: Impossible TV series.

Lipton Iced Tea

Lipton Iced Tea, in many markets known as Lipton Ice Tea, is an iced tea brand sold by Lipton through two joint ventures with PepsiCo. The operations are 50-50 ventures, in which PepsiCo contributes its bottling facilities and distribution networks and Unilever the brand (Lipton) and recipe. There is a variety of flavors sold throughout the world. In the United States, it is marketed in 16 oz (448ml) bottles with the following flavors:

Iced tea – Sweetened

Iced tea – Unsweetened

Iced tea with Lemon

Iced tea with Raspberry

Iced tea with Peach

Iced tea with Mango

Iced tea – Diet Sweet Tea (sweetened with Splenda)

Iced tea – Diet Lemon

Iced tea – Extra Sweet

Green tea with Honey

Green tea with Citrus

Green tea with Mint

Diet green tea with Citrus

Half & Half (Half sweetened ice tea and half lemonade)

Diet green tea with Mixed Berry

Green tea with Orange and Passion Fruit

White tea with Tangerine

White tea with Raspberry

Sparkling Green Tea

Lipton Pyramid Teas

These pyramid shaped bags were pioneered by Lipton and provide more room for infusion of the leaves, delivering faster and better infusion. Different flavours are available in different markets but they include

White Tea

Green Tea

Earl Grey tea

Gold Tea

Red Tea (black tea with Rooibos)

Tuscan Lemon

Demographic Segmentation:-

Age All age group

Gender Male,Female

Family size 1-2,3-4,5 above

Family life cycle Married & Unmarried

Income 12000 above

Occupation White collar & service workers

Education School,colleges & Universities

Religion All

Race Asian

Nationality Pakistani

Behavioural Segmentation:-

Occassion Any occassion

Benefits Quality,taste,flavour and brand status

Loyality Status Significantly high

Attitude towards brand Positive & enthusiastic

Geographic Segmentation:-

World region Asia

Country Pakistan

Cities All major cities of Pakistan

Density Urban-Rural

Climate Hot & dry

Discuss any two factors which influence the choice of targeting strategy (Pass)

Targeting Strategies :

The selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment. A business offering multiple products can determine if the various segments should receive one generic product (such as in mass marketing), or if each segment should receive a customized product (multi-segment), based upon the market’s diversity, maturity, the level of competition and the volume of sales expected. Also called targeting.

Factors of Influence :

Market maturity

Diversity of buyers’ needs and preferences

Strength of the competition

The volume of sales required for profitability

Strength of the competition :

There is very strong competition in all most all industries. So as in automobiles industry. As strength of the competition increase or decrease it influence the targeting strategies . The target remain variable for competitors because survival in the same target market become very difficult so changes occurs continuously so it become factor of influence choice of targeting strategy.

The volume of sales required for profitability :

Each every organization have some targets of survival if the are not achieved the organization cant survive. These are the minimum profit level. As we know that for organization profit all and all relates with the Sales of organization. So if the sales is on the level where profit cant be gained or low profit from level then this factor influence targeting strategies.

Discuss how buyer behavior affects marketing activities in different situations in light of the assigned companies (Pass)

Buyer behaviour

Buyer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Buyer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for Buyer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

Marketing :

Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Marketing Mix is considered as Fundamentals of marketing activities which include 4 P’s. As Product , Price , Place ,Promotion respectively.

Effect of Buyer behavior on Marketing activities :

Buyer behavior has very heavy affects on marketing activities as marketing activities mainly divided into four P’s. As other organization have affects of buyer behavior on marketing activities in UniLever. In 1st P – Product the consumer going for Health & Care so it affects the product decision of marketing. The marketer demands the product on wishes of consumer. The second “P” is also set as Buyer behavior if the buyer are not welling to buy a Products of UniLever on written price then UniLever marketing team will have to reduce the price. Which also affects of buyer behavior on marketing activities. The third “P” of marketing place also have heavy affects from buying behavior a lot. Because according to the place Buyer make their decision. Difficult access and position related problem always make problem. Here UniLever also select place according to customer needs and wants. Buyer go for the product which have more awareness so good promotion create awareness among customer which leads to good buying behavior. So it have very heavy affects on marketing activities.UniLever is Spending alote on Promotion as Electronic Media , Print Media And Celebrities.