Company Analysis Of Unilever

Unilever is an Anglo Dutch multinational corporation that owns many of the worlds consumer product brands in foods beverages cleaning agents and personal care products. Unilever was created in 1930 by the combination of the operations of British soapmaker Lever Brothers and Dutch margarine producer Margarine Unie a merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities.

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

Our brand range 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 are constantly enhancing our brands to deliver more intense rewarding product experiences. We invest nearly €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

Porter’s Five Forces attempts to practically evaluate possible levels of profitability, opportunity and risk based on five key factors inside an industry. This model may be used as a tool to better build up a strategic benefit over competitor firms within an industry in a feasible environment.

Power of suppliers

An industry that produces goods requires raw materials. This guide to buyer-supplier dealings between the business and the firms that supply the raw materials

Reduce the quantity supplied

Organize in a formal or informal manner

compete in an environment with comparatively little substitutes

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

compel switching costs on their customers when they depart

Incorporate downstream by purchasing.

Power of buyers

The power of buyers describes the impact customers have on an industry. When buyer power is strong then the relationship to the producing industry becomes closer. The bargaining power of .buyers increases when they have the ability to

Purchase a product that represents a important part of the buyer’s costs

Buy a product that is undifferentiated

Incur low switching costs when they change vendors

Be price aware with other options on hand

Combine upstream to purchase the providers of the goods.

Barriers to entry/exit

The option of new firms ingoing the industry impacts opposition, a key is to review how easy it is for a new player to enter a business. The most attractive section has high entry barriers and low exit barriers. The definable independence of each business defends profitable areas for firms and hinder. This inhibitive individuality is referred to as barriers to entry.

Substitute products

Porter’s Five Forces model refers to vary products as those products that are available in other industries that meet an equal; as more substitutes become available the demand becomes more flexible since customers have more alternatives.

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 contain the demographic and cultural characteristic 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

An organization cannot satisfy the needs and wants of all consumers. To do so may result in a massive drain in company resources. Segmentation is simply the process of dividing a particular market into sections, which display similar characteristics or behavior. There are a number of segmentation variables that allow an organization to divide their market into homogenous groups. These variables will be discussed briefly below.

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Demographic Segmentation:

Demographics originate from the word ‘demography’ which means a ‘study of population’. The population can be divided into age, gender, income, and family lifecycle amongst other variables. As people age their needs and wants change, some organizations develop specific products aimed at particular age groups for example nappies for babies, toys for children, clothes for teenagers and so

on. Gender segmentation is commonly used within the cosmetics, clothing and magazine industry. All bar one within the UK have developed their bars to attract the female audience, taking opportunity of the rise in the number of women who now enjoy ‘social drinking’. In the UK we have also seen the introduction of Maxim, (www.maxim-magazine.co.uk) a male lifestyle magazine covering male fashion, films, cars, sports and technology. We have also seen the introduction of unisex cosmetic products like CK1, which works on the similarities between the two genders.

Age & lifecycle segmentation: As people age their needs and lifestyles change.

Income segmentation is another strategy used by many organizations.. Daewoo aim their vehicles at price sensitive buyers who require a bundle of benefits for the price. In today’s globally competitive environment brands are specifically developed and positioned within particular income segments in order to maximize turnover.

Products and services are also aimed at different lifecycle segments. Holidays are developed for families, the 18-30’s singles, and for those in there 50’s.

Geographic Segmentation:

Geographical segmentation divides markets into different geographical areas. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviors in that particular region, for example, in London UK certain parts of the West End of London are more affluent then the East End and you will find particular products sold in these regions based on their affluence. The town, the region or the country can divide an area. If you are an organization working on a global scale you may divide by global regions such as Europe, North America, South America, Asia and Africa. McDonalds globally, sell burgers aimed at local markets; for example, burgers are made from lamb in India rather then beef because of religious issues. In Mexico more chili sauce is added and so on.

Marketing segmentation, http://learnmarketing.net/segmentation2.html, Date accessed 24/11/2010

Segmentation criteria for products

Unilever basis of segmentation is equal to that of its objectives and had been defined carefully. Unilever offers its services to a large variety of consumers with significant differences in every segment. Unilever deals with ‘segment marketing’ and also with ‘local individual marketing’, majority being with the segment marketing.

Segmentation on the basis of Social class, Geographic, Demographic, Behavioral and User Status are specified below.

SURF EXEL

Geographic:

It started in Karachi, later on moved to other localities, therefore keeping in sight the geographical characteristic.

Demographic:

Age: Attracts children, teenagers and young adults and general adults.

Family Size: different sizes are available from the company

Income: Income class of Rs.18000/mnth is the main criteria. unilever has always maintained strong income based segmentation.

Social Class: unilever caters to the upper- upper middle-to-middle upper social class.

Clear shampoo

The accessible segments to clear shampoo, accessible segment will have find base on demography, geography and Life-style. But product, like shampoos, the demographic or geographic segmentation is not as important as it is based upon the life-style as well as customers first choice despite of their demography or geography. The following are the main core segment units for clear shampoo are:

Shiny Hair

Black Hair

Anti-Dandruff

Low Price

Clear shampoo started its operating in the Anti Dandruff segment.

Geographic

Region: all parts of Pakistan

Behavioral

Occasions: regular

Attitude: positive and hostile

Benefits: Quality, service and economy

User status: potential user and first timer

Demographic

Age: adult, middle age

Family type: young single, young married older and older married.

Gender: male and female. For male the clear product is main different in size and shape compare to female clear product shampoo.

Income: lower middle, middle, upper middle and high class.

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

Targeting Strategies :

The selection of possible customers to whom a business requirements to sell products or services. The targeting strategy occupy segmenting the market, choosing which segments of the market are suitable for the products that will be offered in each segment

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 the majority industries. So as in automobiles industry, as strength of the competition increase or decrease it influence the targeting strategies.

The volume of sales required for profitability:

Every business has some targets of survival for the achievement and has minimum profit level. As we know that for organization profit all and all relates with the Sales of Organization.

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

Effect of Buyer behavior on marketing activities:

Buyer behavior has very important 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 buyers 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 has important affects from buying behavior a lot. Because according to the place Buyer makes their decision. Difficult access and position related problem always make problem. Here UniLever also select place according to customer needs and wants. Buyer goes for the product which has more awareness so good promotion create awareness among customer which leads to good buying behavior. So it has very important affects on marketing activities. UniLever is Spending allot on Promotion as Electronic Media, Print Media and Celebrities.