Unilever Invites Digital Market Companies -Myassignmenthelp.Com

Question: Discuss About The Unilever Invites Digital Market Companies? Answer: Introduction This report has been executed on the topic Marketing Management In which discussion will be made regarding the different aspects related to marketing strategy development. Marketing strategy is an important aspect which enhances the chances of success and growth of the business. Marketing strategy can be explained as a foundation of the marketing plan of an organisation. Challenges are being faced by the organisations and for coping with these challenges, marketing strategies are adopted by the business. An organisation has been selected for the purpose of developing a better understanding of the different aspects of the marketing strategy development. Hindustan Unilever Ltd. has been selected for the execution of this report in a better manner. This report will discuss the brief description of the Hindustan Unilever Ltd. and the industry in which it is operating. The analysis will be done of the 5Cs of the Hindustan Unilever Ltd. along with the analysis of the manner in which inform ation is gathered about the 5cs by Hindustan Unilever Ltd. This report will discuss the marketing strategy which will be used by Hindustan Unilever Ltd. marketing tactics will be developed in this report which supports the marketing strategy of Hindustan Unilever Ltd. Brief description of the organisation and industry Hindustan Unilever Ltd is a public limited company which is operating in the consumer goods industry. It was founded in the year 1933 and its headquarter is located in Mumbai, India. Its parent company is Unilever. It is offering a wide range of products to its customers including food products, personal care products, water purifiers and cleaning agents. According to the data collected in the year 2014, it has a strong employee base of around 18000 employees. The vision of Hindustan Unilever Ltd is to develop a better future by offering high-quality products or services for enhancing the experience of the customers. Sustainable growth strategy has been implemented by Hindustan Unilever Ltd. Focus of Hindustan Unilever Ltd is on reducing the adverse impact of its activities on the environment, enhancing the size of the business and enhancing the positive impact on the environment. Net sales of Hindustan Unilever Ltd for the financial year 2016-2017 was INR 33895 crores (Hindustan Uni lever Ltd, 2017). Key priorities of Hindustan Unilever Ltd are providing a better future for the children, a healthier future for the different groups of the society and a confident future. Values which are being followed by Hindustan Unilever Ltd include working with integrity, creating a positive impact, continuous commitment, working with others and setting aspirations. Principles adopted by Hindustan Unilever Ltd are complying with the law, standard of conduct, innovation, fair competition, the involvement of the community, the safety of the environment, business integrity and dealing with conflicts of interest. The mission of Unilever is to meet the everyday needs of the people by providing nutrition, hygiene and personal care products with high quality. Consumer goods industry is providing quality products related to food, packaged goods, clothing, automobiles, electronics and beverages (Hindustan Unilever Ltd, 2017). Consumer goods industry is connected to the other industries such as technology and manufacturing industries. Hindustan Unilever Ltd is one of the largest consumer goods company with a history of more than 80 years. Hindustan Unilever Ltd is having a large customer base and is focusing on enhancing the satisfaction level of the customers. Hindustan Unilever Ltd is operating different brands in different categories including food and drink, water purifier, personal care and home care. Hindustan Unilever Ltd believes that high standards of corporate governance need to be maintained. HUL is having 35 brands which are offering products of 20 different categories. The focus of Hindustan Unilever Ltd is on bringing innovations in the existing products and developing new products for attracting the customers and gaining a competitive advantage over the others in the industry. Different marketing strategies are being adopted by Hindustan Unilever Ltd for the purpose of enhancing the performa nce of the company (Hindustan Unilever Ltd, 2017) Company: HUL is performing well in the consumer goods industry and focusing on enhancement in the quality of the products. It has effectively used the strengths for gaining the advantage of the opportunities available and coping with the threats faced by it. SWOT analysis of HUL is as follows: Strengths Weaknesses HUL is operating as a market leader in the consumer goods industry. Focus on the innovative products has acted as the strength of HUL. It is having an effective distribution system which has helped in establishing large customer base, Brand visibility has also contributed towards the growth and success of HUL. HUL is having 35 brands which offer different quality products (M2 Presswire, 2009). Awareness among the customers has acted as strength in dealing with the competition. It is offering a wide range of products which has helped in developing a strong customer base. HUL is holding market share and its product range has helped in gaining the market share. HUL is having a sound financial condition (M2 Presswire, 2012). Due to the increase in the level of competition, there has been a decrease in the market share of HUL. Confusion has been created due to the wide brand portfolio (M2 Presswire, 2013). Opportunities Threats Entering the new markets will help in the expansion of the area of operation of HUL. Increasing awareness among the customers will help HUL in dealing with competition (M2 Presswire, 2011). Increasing prices of the products can act as a threat. Competition has affected the customer base of HUL (M2 Presswire, 2012). Customers: Customers of HUL are spread all around the globe and are increasing. HUL is offering a wide range of products at different prices which have helped in attracting the customers towards it. Unilever is considering providing quality products for the purpose of enhancing the satisfaction level of the customers. It has differentiated the market on the basis of the income level and gender. Its products are priced on the basis of the prices of the competitors for attracting customers and enhancing customer base. For informing the customers, HUL is using effective communication strategies (Unilever, 2016). Collaborators: HUL has entered into comprehensive agreements with its suppliers for delivering the products to them on a fixed price for a certain period of time. This policy of HUL has helped in bounding the suppliers and not letting them switch to the competitors of HUL. A rule of home business and local developed has been followed by HUL. HUL is focusing on generating trust among the suppliers. The reason behind this step is the bargaining power of the suppliers as they can switch to other companies operating in the consumer goods industry. Suppliers supplying raw material have low bargaining as there is a large number of suppliers available in the market (Dangarwala, 2013). Competitors: Competition in the consumer goods industry is increasing which has affected the customer base of HUL. The main competitors of HUL are ITC, Nestle, Cadbury, PG, Dabur and AMUL. Development of substitute products has affected the performance of HUL at large. This has raised the expectations of the customers resulting in a shift in the taste of customers. These competitors of HUL are offering attractive and quality products for attracting the customers towards them. This high amount of competition has affected the profitability of HUL. Competitors of HUL are spending huge funds on the research and development activities for the development of new products (Bharucha, 2015). Context: There are various factors present in the environment which affects the performance of the business. For the purpose of developing an understanding of the impact of these factors of the business environment on HUL, PESTLE analysis of HUL is done. Factor Impact Political factors Political factors create an impact on the manner business is operating. Change in political parties results in a change in the legislation, trade agreements and market regulations (Bhattacharyya, 2012). Economic factors Impact of economic recession can be seen in the buying behaviour of the customers. This affects the customer base of HUL. Social factors HUL needs to pay attention to the society and need of the customers. Change in the trend and need of the customers affect the performance of HUL (Ghanta Antra, 2016). Technological factors E-business and other advancements in the IT have affected the performance of HUL. Legal factors Different laws have been formulated by the government of different countries. HUL need to comply with these laws for executing operations in an effective manner (Atifa, 2011). Environmental factors HUL need to conduct the operations within the environmental laws formulated by the government for the safety of the environment. Activities of the HUL can affect the environment which can affect the operations and reputation of the business. Analysis of the methods applied for gathering information related to 5Cs For the analysis of the needs, taste and preference of the customers, HUL is conducting market research activities. These market research activities have helped HUL in the analysis of the taste, preference and needs of the customers of HUL. The main objective of every company is to enhance the experience of the customers and their satisfaction level. This information has helped HUL in meeting the expectations of the customers by providing the products as per their needs and preference. Market research develops the knowledge of the trend prevailing in the market. HUL is also analysing the service records of the customers for analysing the buying behaviour of the customers. Website activities of HUL are being monitored for the analysis of the traffic on the website of the company (?ahin Kalyoncuo?lu, 2014). Its main competitors are ITC, Nestle, Cadbury, PG, Dabur and AMUL which are creating an impact on the performance of HUL. The business environment is changing due to the changes taking place in the various factors including technology, promotional techniques and changing needs and preferences of the customers. Competition in the business environment is increasing which has resulted in adverse impact on sales of the company. For the purpose of gaining information related to the competitors in the market, marketing research activities are considered good sources. Marketing research activities help in analysing the performance of the competitors (Andrew, 2010). Suppliers and distributors play a vital role as they provide the raw material as well as helps in reaching the customers of the company. HUL is having a strong relationship with the suppliers and distributors for ensuring that its production process and distribution process are carried out in an effective manner (Jack, 2011). Developing marketing strategy Marketing strategies can be explained as those techniques which are adopted by the marketers for gaining the knowledge about the diverse nature of the markets. Market segmentation is used as a base for the selection of the targeted market. HUL has divided the large market into small segments for the purpose of attracting the customers towards the business and expansion of the customer base of the company. HUL is using market segmentation strategy for targeting the customers in a better manner. Different products are being used for these different market segments. HUL can divide the consumer market on the basis of the geographical segmentation, demographic segmentation and differentiated pricing strategy. Other strategies which can be followed by HUL include market penetration, market development and diversification strategy. These strategies will help in enhancing the customer base by attracting them (Charles Oakes, 2016). Geographical segmentation will help HUL is targeting the regional, local and national level customers in a better manner. This strategy will help in focusing on the different markets and targeting the different markets effectively. Low priced products can be offered for the customers of the areas where income level of people is low. This can be done for attracting the customers and forming a strong customer base in the different regions. Demographic segmentation can be used by HUL as it will offer products for different age groups and gender in the society. HUL is offering a wide range of products for different age groups, different gender and people of different regions (Reynolds, 2011). Differentiated pricing strategy can be followed by HUL for targeting the different income groups of the society. Another marketing strategy which HUL can adopt is market penetration strategy. With the help of this strategy, HUL will be able to sell the existing products in the existing market for gaining a higher market share and gaining a competitive advantage over the others in the industry. Market development strategy can be used by HUL for innovating new products and engaging in the research and development activities for the development of new products. Diversification strategy can be used by HUL for entering the new markets which will provide new opportunities to the business. The positioning of the products of HUL is done by keeping the focus on the customers and competitors. It has adopted a customer-oriented positioning strategy which helps in attracting the customers towards the products or services offered by HUL. Competitor oriented positioning strategy has helped HUL in positioning the products in the market by analysing the positioning strategy of the competitors. These positioning strategies have helped HUL in positioning the products by differentiating it from the products offered by the competitors (Widelia, et. al., 2016) Developing marketing tactics Marketing mix for HUL is discussed below: Product: HUL is offering wide range of products to its customers for meeting the needs and expectations of the customers. Products belonging to different categories are being offered by HUL for enhancing the satisfaction level among the customers. High quality products are being offered by HUL to the wide customer base. Price: differentiated pricing strategy has been adopted by HUL. Products are priced after analysis of the different aspects of the environment such as income level or economic conditions. Prices of the products is reduced by HUL and decided according to the pricing strategies of the competitors. Place: Products offered by the HUL are available in the supermarkets and nearby departmental stores so as to be within reach of the customers (Marketing Week, 2010). Promotion: social media platforms and traditional media are being used by HUL for the promotion of the products or services offered by HUL. People: the focus of HUL is on enhancing the satisfaction level among the customers for the purpose of enhancing the customer base of the HUL. The effective communication process is being followed by management of HUL for interacting with the employees. Process: HUL is focusing on research and development programs for the purpose of developing innovative products. These innovations will help HUL in developing new products. Physical environment: HUL is offering its products or services through online as well as offline mode. This is done for the purpose of reaching the customers in a better manner and developing a strong customer base (Mena Report, 2013). Conclusion Thus, from the above discussion it can be concluded that marketing plays a vital role. This report has discussed the description of the consumer goods industry and HUL which is operating in this industry in an effective manner. 5Cs analysis has been done of the HUL for the analysis of the different stakeholders of the company as well as impact of the factors present in the business environment. Marketing strategies which will be used by HUL have been discussed along with the marketing mix. References Andrew, H., 2010, NIMBLE TEAM'S BRANDED CONTENT MOVES THE NEEDLE; Web Programs such as Bertolli series "Into the Heart of Italy' and "reverse upfront' strategy for TV integrations have helped redefine category.(NEWS)(Unilever Inc.)(MindShare),Advertising Age, 81(21), p.16. Atifa, S., 2011, CMO Strategy: Keith Weed, Unilever - 'Measuring social media is a big issue for us'.(chief marketing officer )(Interview),Marketing, p.28. 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