Marketing Unit 6

SECTION I. THE BUSINESS

Company Description

For the purposes of our discussion, we will discuss Unilever Group of Companies. It has its

Headquarters in Englewood Cliffs, New Jersey, United States of America. It is in a 24,000 ft2

space with modern offices and a 16,000ft2 700 campus cafeteria. This headquarter is specially

designed large to allow business groups and employees come together to walk around freely and see marketing strategies and product innovations. Unilever has more than 1,000 brand names worldwide. About 2 billion people use them on any given day. Examples include; Simple, Dove, Axe e.t.c. (WWW.unilever/brands-in-action/view-brands.aspx)

Unilever Group of Companies is well known for an assortment of consumer products that are of quality and has value for money for quite a long time. This marketing plan is intended to introduce a new product in the market to fill the gap recognized by Unilever. Brand name of this product is called Claire Whitening and Smoothening Antibacterial soap. It comes in three different sizes: small, medium and large. It is in three fragrance varieties lemon fresh, lavender and rose. Lemon fresh cream in color, lavender white while rose is pink in color.

Business Mission

According to Unilever website (www.unilever.com), the Mission of the company is to have a successful, growing, sustainable business.  It works to make a better future every day. It helps people look good, feel great and get more out of life with brands and services that are good for them and for others. It inspires people to take small everyday actions that can add up to a big difference for the world. It develops new ways of doing business that will allow doubling the size of the company while reducing negative impact on environment.

Besides giving high returns to shareholders, stakeholders such as the employees, customers, community and the world at large are very crucial to Unilever’s priority of satisfaction. This is done through positive approach based on clear accountability.

Unilever is a successful, growing, sustainable business.  It works to make a better future every day. It helps people look good, feel great and get more out of life with brands and services that are good for them and for others. It inspires people to take small everyday actions that can add up to a big difference for the world. It develops new ways of doing business that will allow doubling the size of the company while reducing negative impact on environment.

Company Values

Trust is the core value at Unilever group of companies. The company has a set of codes, well written in the Code of Business Principles and adhered to when dealing with everyone involved: the suppliers, customers, community, the government and the world at large. It has well articulated issues of employee and product safety. Chief legal Officer and regional presidents of the company are responsible for the continuous monitoring of the implementation. Unilever seeks to create mutual benefit with business partners and suppliers too. (Cite where this information came from)

Unique Selling Proposition

Claire Whitening and Smoothening Natural Antibacterial soap is a new brand of soap the company is about to launch in its quench to double the company size and meet a need in the market. It is made from pure natural plant extracts and therefore has no side effects. Paper Mulberry root extract is a natural skin lightening agent derived from roots is a key ingredient in this soap, which is from a plant’s roots. It has no significant skin irritation. This is a good ingredient to look for in a skin lightening product, as it does best combined with other actives. The other ingredient is Aloe Vera gel. It soothes, heals, cleans and deodorizes. Avocado too is another ingredient that has antioxidant agents, vitamins A and E, lecithin and natural oils. There are more natural ingredients that are included but for the sake of this plan, the few mentioned are enough. Any organic suppliers or natural food shops have enough of these products. Ordering is online and delivery is at the door step.

Most current whitening and smoothening soaps in the market have artificial ingredients making them harmful for human use. Its production cost is low making it sell at a very reasonable price. Because it is affordable most households will buy and soon customers will become loyal to the product increasing sales thereby the company making great profits. This will translate to shareholders happiness!

“Kapconsultants please you cannot let this new venture go to the drains”, the suppliers are more than willing to deliver products with these ingredients (we have worked out a signed contract the supply will be consistent for the next 25years). Their prices are very reasonable and they have given us a grace period of six months for us to start payment. People around the globe have become very sensitive about hazards of artificial consumables and are actually running away from them. Natural products are really selling nowadays. The world market is open for this product.

Global Vision

Claire Smoothening and Whitening Natural Antibacterial Soap Global Vision

Claire Whitening and Smoothening Natural Antibacterial soap is a unique natural soap that has a bright future in all households. It smoothens and brightens your skin leaving it glowing, smooth and feeling fresh. Its antibacterial agents leave your skin protected all day long from harmful bacterial infection. It will be the talk of every household.

SECTION II. THE MARKETING ENVIRONMENT

Claire soap will be launched in America and Canada as a pilot project with plans of expanding to the whole world in the near future. Some of the external environmental factors that would affect this market include competition (this definitely affects profits). Johnson & Johnson, Reckitts, Proctor & Gamble are some of competitor companies’ of Unilever. It can also be from other natural brands or the usual artificial soaps that most people are used to. Many households have even become loyal to some brands and convincing them to change will call for intensive marketing strategy. To effectively compete in the market, Claire soap price is reasonably cheap and therefore affordable. This can be overcome by better price and yet not compromising quality of this soap. Attractive packaging and great fragrance and colour are our other competitive edge.

Economic state of the country is another external factor that would affect the market. When the economy is good buying power of consumer is better and vice versa. Company economists are here to advise the best timing to launch this product in the market for better returns. Offering customers the potential to buy a great product at reasonable price during suppressed economic conditions shows consumers that Unilever cares. This approach will build strong relationships during difficult economic conditions (Lamb et al., 2011)

The social system too is another external factor that needs consideration. Growth of dual income families has resulted in increased buying power (Lamb, Hair and McDaniel 2011. Pg.41). monthly shopping is done once and due to time constraints parents don’t have time to keep looking for other brands within the mall. This soap due to its quality and benefits has come to enhance lifestyle (Lamb et al., 2011). We therefore need to pass the right information to consumers for them to visualize the uniqueness of Claire Smoothening and Whitening Soap. Major selling points here are the natural ingredient used to prepare this soap and bacterial protection. Effective advertisement and sensitization is of great importance. Information given should be coherent and understandable.

Another very crucial factor is monetary issue. It involves financial institutions like banks, creditors, customers, debtors and suppliers. Unilever already has a great relationship with these institutions. This is clearly stipulated in the company’s clear direction vision- Unilever is working with their suppliers, consumers and the retailers who sell their brands to improve their sustainability credentials too (Unilever website).

The political and legal systems too need consideration. Unilever has been in the market for long and has proved to be compliant to the rules and laws of the land. The company has a health and safety officer who ensures OSHA standards are adhered to. External auditors once in a while visit the company and at times without prior notice. All the visits made with or without the notice have proved Unilever very compliant. Thanks to the management.

Environmentally Unilever takes a lead role in impacting less to the environment. In its priority vision principles we see plans like a better future for children, health, planet and farming. Many of the company’s brands contain ethically and sustainably sourced ingredients from agriculture and forestry. These are sourced from Africa and the rain forests. The company has a policy to make these plants 100% sustainable (Unilever website).

Demographically Claire smoothening and whitening soap cuts across all ages, young or old, both genders male or female, high/low educated, medium and high earners. It therefore poses a very high chance of selling and picking up fast.

Technologically Unilever has gone digital. One can shop online and use credit or debit cards to make payments. This makes the company’s services very efficient. Primary and applied researches will identify what customers exactly want and efforts concentrated to the findings to meet with these wants (Lamb et. , 2011)

SECTION III. THE CUSTOMER

Customers

Customers /consumers are the back bone of any firm (Lamb et al., 2012). Their satisfaction interprets the company’s success. They make decisions according to factors that influence their buying behaviour (pg.84). This marketing plan already identified in its research that there is need for a natural soap that will smoothen, whiten, leaving the skin glowing and looking young. Claire Smoothening and Whitening Antibacterial Soap have come to meet this need in the market. Americans both gents and ladies have become very conscious of the way they look and effects of artificial ingredients e.g. mercury on their skin. They cause skin cancer, acne and other side effects. Any product that will guarantee mercury free ingredient will move like hot cake in the American market. Children too (but not toddlers of less than six months) are a suitable segment for Claire Soap because it is natural and for the whole body. The organic lifestyle is slowly becoming part of the belief system of many Americans (Natural News, 2012)

The comments below were made to your Unit 3 assignment. I do not see that you addressed the different factors noted below or made any change to this section. Make sure you make it very clear in your final paper how each of these factors affect the buying behaviour of your customers for your product.

“Have you downloaded the Step by Step Guide to Building a Marketing Plan and the sample marketing plan from the Unit 1 assignment? These two documents do a good job of telling you what we are looking for in each assignment

Under Customers, you were to discuss the cultural, social, individual and psychological factors that affect consumer buying for your particular product. In your Unit 4 draft, please discuss this section in a little more detail. What beliefs are in the culture of your customers to make them want this soap? Perhaps that they want smoother, younger looking skin. Address each of these factors. “

Market Segmentation

Claire Smoothening and Whitening Antibacterial soap is suitable for the whole family apart from young toddlers of less than six months. The family is the most important social institution for consumers, strongly influencing values, attitudes, self-concept and buying behaviour (Lamb, 2011 pg. 91). Claire soap is a convenient product and therefore the major segment is the whole family. If a family is made up of parents, grannies, teenagers and young adults all can use this soap. I do not see reason why a family should have different brands of soaps in the house whereas this soap can be used by the whole family irrespective of age. Because of its uniqueness both the educated, less educated too are a major segment. Our target market or market profile is the whole household. Therefore the best strategy here is undifferentiated and multi-segmented because all age groups, gender, and classes of people will use this product. Because of its affordable price, it will cut across all social classes; the rich & the poor, high & low income earners and of course white or black.

Again, you did not address my comments to your Unit 3 assignment. See below.

“I am confused by you saying your strategy is undifferentiated and multi-segmented. In this section, you were to discuss the different segment bases that apply to your product. These bases are geographic, demographic, psychographic, benefit and usage rate. A multi-segmented market means you have identified several segment bases which apply to your market. This is differentiated marketing strategy; not undifferentiated.

I think you are saying demographic bases is most important to your product, as this covers ages, gender, and classes of people. The other bases are not particularly relevant to your product. This is ok. Take out the “undifferentiated and multi-segmented comment as this is addressed in your next paragraph”

Target Market

A target market is a set of consumers towards which an organization has decided to aim its marketing efforts. The nature of Claire soap suits the whole family and therefore the whole family and not only American but the whole world is our target. For this reason Undifferentiated Target strategy best suits our soap. The market for this soap is the whole family (one group with no individual segments). Concentrated Targeting that focuses on a particular group will not be appropriate. Multi-Segment Targeting can be used or the sake of the various variances but because of its high cost will not be used for our soap.

See my comments to your Unit 3 Assignment

Positioning Strategy

Positioning refers to consumers’ perceptions of Claire Soap and the benefits it will offer in comparison with the competitors. Product differentiation refers to the product being sold and the features that differentiate it from competitors’ offerings (e.g., physical differences, services, marketing communications, etc.). In the first place Claire soap is quite affordable, will therefore be a household item in most families. The quality is not compromised either, like any of our Unilever products its quality is high. The soap being natural the consumer will definitely go for it because many have become conscious of health issues and beat the competition. We all want to have a smooth, healthy and good looking skin. With proper marketing this product will leave every mind wanting to give it a try and should it prove it is natural it will definitely sell. Customers can choose from the various fragrances and quantity that best suits them making the soap very pocket and user friendly.

Importance of Marketing Research

Market Research is the practice of gathering facts/data on services and goods to determine whether the service or product is satisfying consumers’' needs. It identifies market trends, economic shifts; customer’s buying habits, demographics and essential information on competition. These facts guides in making strategic decisions o business, unveiling unmet customer needs and assist in discovering new ideas for services and goods.

In short, market research helps you to:

Communicate effectively with customers; they will pinpoint shortcomings, strengths of product/service and what they expect. This creates a bond between the company and customers. It also assists the company Identify and understands opportunities. It is from research that you will know people’s attitudes and how they perceive your product. It creates Benchmark and evaluates the company’s success. Regular research shows where there are improvements or short falls. It also minimizes risks by ensuring that the product is focussed on demand

References

Lamb, C. (2011). MKTG [VitalSouce bookshelf version]. Retrieved April 13, 2014 from http://online.vitalsource.com/books/9781285632537/

Kotler, P. "Marketing Management: Analysis, Planning, Implementation and Control", 9th Ed.(Upper Saddle River, NJ: Prentice- Hall,cocourses.unt.edu).

Unilever Headquarters. Retrieved April 13,2014 from

http://www.hdrinc.com/portfolio/unilever-headquarters

Unilever core values. Retrieved April 13, 2014 from

http://www.unilever.com/sustainable-living/ourapproach/values/

The Importance of Market Research. Retrieved April 13, 2014 from

http://www.espotmi.org/mrktng/overview_mrsh/mr_importance.html

Day M. (2005). Why is Marketing Research Important? Retrieved April 14, 2014 from http://www.webpronews.com/why-is-market-research-important-2005-08

By: {David Bumford}

AB/MT219: Marketing

DATE 4-18-2014

KAPConsultants Marketing Plan

Is this a separate reference? If so, it needs to come to the left more