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analysis of Unilever
and P&G
Executive summary
This paper is all about strategies and different practices by the largest MNCs. This study
carried out worlds top two FMCG brands named Unilever and P&G. In this study, we have
found that the need of transformation is not only for products and innovation but also
important for the organizational structure as well. More product line can brings a sustainable
growth in market. So more market presence with more product line over the world is very
necessary to use scale of economy. However, on the other hand, it is very important that the
growth should be a balanced one. P&G have admitted that they were only focused for more
growth in home market rather than foreign one and which results hampering their growth.
While Unilever maintain equal focus on the both, home and foreign market which leads them
to catch P&G in next 5 years. P&G gained a lot from their Gillette merger. On another note,
maintaining business ethics are very important for the market growth.
This report presents two parts, first part shows basic parts of these two organizations, for
instances, core offer, reasons behind for choosing them, market segmentation, brand
proposition, performance evaluation, types of customer market etc.
Second part carries target market, marketing mix, marketing strategies etc. This part gives
elaborate explanation on these topics. Then based on discussion a conclusion has been drawn.
Contents
Executive summary............................................................................................... 1
Introduction........................................................................................................... 3
Part A..................................................................................................................... 3
1. Reasons choosing the two brands..................................................................3
2. Types of consumers market............................................................................ 4
Unilever........................................................................................................... 4
P&G................................................................................................................. 4
Core competitors:............................................................................................ 5
3. Evaluation of historical performance..............................................................5
4. Customer and market segmentation..............................................................6
5. Core offer........................................................................................................ 6
Unilever........................................................................................................... 6
P&G................................................................................................................. 7
6. Brand proposition of its target customers......................................................7
7. Brand differentiation compare to competitors and its reasons.......................7
8. Evaluation of brand execution........................................................................8
Unilever........................................................................................................... 8
P&G................................................................................................................. 9
9. Recommendation on how the brand should do to enhance its market position
........................................................................................................................... 9
Unilever........................................................................................................... 9
P&G............................................................................................................... 10
Part B................................................................................................................ 10
(1).................................................................................................................. 10
Target market................................................................................................ 10
Marketing strategies...................................................................................... 10
(2).................................................................................................................. 13
Unilever Marketing mix.................................................................................. 13
P&G marketing mix....................................................................................... 15
Conclusion........................................................................................................ 17
References........................................................................................................ 17
Introduction
Unilever and P&G are the two most popular USA based multinational companies in the world
and both are provide consumer goods. They are the strongest familiar brand as well. They are
the most profitable brands among the other popular brand in the world. They are the
competitors of each other (Geoffrey Jones. 2015)
This report contains comparative analysis of their brand and marketing strategy based on
marketing mix. Both are from similar categories and targeting similar target market.
However, they are both strong brand because of their different marketing strategies. Both
follow different marketing mix and this report present these differences between them and
compare which one is better.
Part A
1. Reasons choosing the two brands
This report focuses on comparative analysis. In this case, it is necessary to take such two
brands which characteristics are same and from similar categories. That is why, these two
brands are choosing for this report. Some reasons are given below:
Both are FMCG companies (Geoffrey Jones. 2015) and serve consumers goods, like,
cleaning goods, personal goods, beauty goods etc. as well as worlds largest companies. Both
are worldwide companies and strongest brands, belong to similar group, and target similar
market. They are now trying to extend their market share and their target markets are also
same (Geoffrey Jones. 2015). So it is quite easy to compare between two same categorical
companies.
It has above 400 brands but serves only 64 brands and its product line includes cleaning
goods, refreshments, personal care and beauty products, and foods and beverages. Name of
some products are Axe, Lux, Dove, Sun silk, TRESemme, Knorr, Lipton, Rexona, Vaseline,
Ponds, Surf excel, Chocos etc. (Unilever 2014)
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It has above 300 brands and serve 180 brands only in worldwide and divide into four sectors
of consumer market, for instances, beauty care goods, home care goods, family care goods,
and health care goods. Some goods are, Head & shoulder shampoo, Olay, Tide, Pantene,
Vicks, Duracell, Gillette, Pampers, etc.
Core competitors:
As both are, belong to same categories and market so their core competitors are same almost.
Their major competitors are Johnson & Johnson (family Care), LOreal (beauty care),
Colgate and Palmolive (health care), Kimberly Clerk, Kraft (Foods), Henkel (Home care) etc.
Besides that, both are competitors of each other (Unilever 2014).
and home care segment. Besides that, unilever has one more segment known as refreshments
segment. Their target customers are from all ages of people, like, young, teenagers, baby,
adult etc. as their has every types of good for every types of customer (Unilever 2015).
5. Core offer
Both companies have five different core offers. They are given bellows respectively
(Unilever 2015).
Unilever
Their core offer helps to maintain a comfortable living commonplace as well as create a
better future for their target customers. Unilever makes a clean commonplace for their
potential consumers and reduce load of women work. They are caring for nourishing health
of their customers skin by delivered superior beauty products. They try to make feeling good
to their customers with the help of their products and services.
P&G
The company tries to understand their target consumers wanted and provide superior
services and goods according to their wants and demands. They provide innovative goods and
maintain market capabilities as an industry leader. They constantly try to create a strong
brand image towards in the customers minds. They always offer branded superior packed
goods to their customers by improving efficiency and productivity. They share knowledge,
transfers technology, improve performance to provide better.
This organization holds first positioning in the market over its competitors. It has earned
around $42million over its core competitors. It is possible because of its brand execution.
They put their customers at first priority because they their brand is only for their customers
which fulfill their needs and wants. Their brand has clear purpose and clear point of views
towards their target market. They provide a magical experience to their respective customers
and connect with their emotion. These execution styles brought unilever top position in the
market and they are able to maintain successfully their market (Unilever 2015).
P&G
Unilever should develop their adjusting policies and business model, which could deliver
more job opportunity for women. Because the company helps to reduce workload of women.
The companys products are available in the market but it should develop more its R&D
department to provide a wide range of superior and unique products with diversification with
innovative characteristics of a wide range of brands. It should increase its brand because it
serves only 68 brands among 400 brands, which is too much low.
P&G
Part B
(1)
Target market
Both organizations provide consumers goods, like, personal care goods, home care goods,
beauty care goods, health care goods, family care goods etc. (Unilever 2015).
Therefore, both companies target markets are similar and they target all ages, colors, sizes of
people. Their primary target market is women and secondary target market is men. Because
most of the products are manufactured for women and recently they produced goods for men
(Unilever 2015).
The women choose especially beauty and personal care goods and more than twenty million
women, which is nearly 57% around the world. They target women based on buying trend of
these products and their own attributes. Unilever and P&G both provide high quality and
innovative beauty care products with lower costs, which makes them leader in the market. In
this case, R&D department helps them to research to find out their potential target market. In
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addition, P&G has other types of customers too like, mass merchandisers, drug stores, club
stores etc. (Boston Herald 2009)
Marketing strategies
Unilever
Unilever is one of the most culture-diversified companies in the world. It has 24 different
nationalities managers forming top-level management and making corporate governance
stronger so that they can make fast and accurate decision to cope up with changing and
challenging environment. Unilever set their goods according to their customer preferences,
like, skin, hair, deodorant, ice cream, tea etc. most of the profit come from personal care and
foods (Unilever 2015).
In this case, unilever choose different tactics and they develop adaptation according to locals
needs and deliver different products in different countries. The production process is same for
all goods in different countries but they adopt local condition to reduce the cost (Unilever
2015).
marketing strategies helps to shape standardization of their products as well as gain profit
equally from every region. As they follow regional adaptation policy it will help to satisfy
customers demands more with reduce cost.
It has biggest market in Asia and Middle East than its rival P&G. Unilever is changing their
promotional, pricing, and packaging activities to cope (Unilever 2015) up with these regional
demands because they want lower manufacturing cost with lower cost of raw materials.
Unilever has been able to do that which keeps it ahead overs its rival.
P&G
On the other hands, unilevers biggest competitor P&G earns profits from beauty and
personal care, home care, and baby care goods. It is weak in foods segment than unilever,
thus unilever enjoys such benefits over its competitor. P&G deliver superior and strong
customer value and taking worldwide with diversified products and recorded $83.68 billion
in sales (Coolidge, Alexander 2015).
P&G is constantly improving contacts with their existing customers and targets always
middle class families. Thus, they connect them with their development. However, the
company is the biggest rival of unilever but they are down in food segment (Cincinnati
News.Net. 2014).
Unilever provides around 64 brands for their consumers and among them, the top most
popular brand is Dove. The company divides their brands into four categories, for instance,
home and personal care and foods and beverages (Boyle, Matthew; Jarvis, Paul 2014). It is
the global largest ice cream brand with heart brand symbol and their annual sales around $5
billion.
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Unilever provides a wide range of goods and products to their consumers with affordable
price and their price range is not fixed it is different based on different countries currency.
During the time of deciding the price range, they firstly find out the pricing strategy of
competitors (Unilever 2014). They put high price for high quality and premium products and
medium price for regular products. They always put the price carefully to sustain their brand
image and to increase market growth rate as well as consumers preferences.
Place
Unilever now serves in almost 100 countries and further planning to serve more 50 countries
(Greg Thain; John Bradley 2014). Company has now three business segments in designing
process for future expansion to bring success.
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Company uses electronic media and print media heavily to reach each customers door they
also offer some scheme like, premium packages, design, to attract more customers In
addition, they use billboards, banners, signboards, and social media for advertising. They
arrange face-to-face marketing, posters campaign, flyers, and magazines on their beauty
products to show their concern towards their women customers
P&G marketing mix
Product
This company serves versatile products to their customers because they mostly serve in
developed countries where they prefer updated products (Coolidge, Alexander 2015). They
also provide coconut based food and cleaning goods, health care products, laundry products
etc.
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Company serves most superior branded household goods so range of prices are varying
according to product or service category and their characteristics (Cincinnati News.Net.
2014).
Before put price on any products they analysis competitors pricing strategies and profit
margins as well as customer preferences, their lifestyles, their affordability etc. (Cincinnati
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News.Net. 2014). Because it helps to decide which price, consumers will accept and they will
afford to buy their necessary products.
Place
Company serves mostly in developed countries, North America, Europe, etc. as well as some
developing countries Africa, Asia etc. Company has seven business units and set own
distribution channels (PG.com. 2016). They have own warehouse to store their products
(Cincinnati News.Net. 2014) and now serve in eight locations as well as local market based
on demand level (PG.com. 2016)
Promotion
Promotion strategies of P&G are very fine and well structured, they use heavy electronic
media, Facebook advertisement, online advertisement, as they serve developing countries and
they are very addicted in electronic life.
Conclusion
Above discussion, it has proved that both organizations are strongest competitors of each
other and they served in a well-organized way. They both served high quality product and
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careful about their customers needs and demands. They always try to give best quality to
their customers and use proper promotional activities to reach every single individual with
their products.
References
Geoffrey Jones. (2015), "Unilver: a case study". hbs.edu.
Unilever (2014), "Unilever.com".
Unilever (2016), "Preliminary Results 2015" (PDF)
Unilever (2015), "Facts".
Boyle, Matthew; Jarvis, Paul (2014), "Unilever Spreads Split Boosts Chance of Exit as
Shares Gain". Bloomberg News.
unilever.com. (2015), "Our approach to sustainability".
Unilever (2013), Unilever R&D Locations
Greg Thain; John Bradley (2014), FMCG: The Power of Fast-Moving Consumer Goods.
First Edition Design Pub. p. 426.
Manuel Hensmans; Gerry Johnson; George Yip (2013), Strategic Transformation: Changing
While Winning. Palgrave Macmillan. p. 139.
Chaudhuri, Saabira (2016), "Unilever Spreads Divisions CEO Quits". The Wall Street
Journal. Retrieved 13 March 2016.
The Procter & Gamble Company, (2013), "2012 Earnings Report, The Procter & Gamble
Company".
us.pg.com. (2016), "history_of_innovation".
Boston Herald (2009), "Procter & Gamble board meets amid CEO reports".Associated Press.
Retrieved May 5, 2012.
Coolidge, Alexander (2015). "P&G brand sales, restructuring will cut jobs up to 19%".
Cincinnati. Retrieved March 3, 2016.
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