Comparison of Unilever and P&G Marketing Strategies

I assume that our new brand will be well welcome by the low-income consumer and that Unilever will have a 13% margin. We could have also repositioned Campeiro but it is too well known for being a cheap

Unilever will want to regenerate their product so that they will be able to be the market leaders for the product again, this is going to be essential for some products where they rely on the business being a good market leader for most of their products. The shareholders will want to know about the business as they will want to have the business sot be the market leader for the company and they will also want to have the product regenerated as quick so that sales are not hit too effectively. They will also want the product to review and test why it has become a decline in sales to make sure that they are going to stop it from happening to other

Unilever launches a five year strategic plan- Path to Growth. In 2009, Unilever announces new corporate vision. And enters 2010 with a new strategy: the

This report aims to analyse the financial position of Unilever PLC within its daily operating activities and it also compares the company’s performance with its key competitor, the Proctor and Gamble Company (P&G). The report also includes background of both the companies and an industry overview. To better understand the performance of both the companies, the segmental analyses have been done for both region and products. Due to the global crisis, Unilever and P&G both are facing price rise and inflation pressures, also instability in the Eurozone. All these factors are strongly impacting their operation activity and long-term growth decision plan. Finally After a careful examination of the financial ratios of both the companies, we recommend Unilever as a good company to invest as compared to P&G .The reasons for the following can be seen in the report below.

Unilever had 1600 brands and sales & marketing efforts in 88 countries all over the world. The main target were to get top-line sales growth of 5-6 percent annually and to increase operating profit margin from 11 percent to over 16 percent both to be accomplished by the end of the year 2004.They cutting down their portfolio from 1600 to 400 core brand. Increasing profit margin to 11 to 16 percent by year end 2004.

In 2000, Unilever decided to reduce 1,600 brands down to 400 and then select a small number of them to serve as “Masterbrands”. One of the reasons to have fewer brands is to decrease control issues. It is harder to manage so many brands, especially when each one has its own particularities. As Deighton pointed, Unilever’s brand portfolio had grown in a relatively laissez-faire manner. In other words, the company’s brands were created without large interference.

Despite the inconsistent changes in spending from year to year, P&G’s market share consistently increased between 1% and 2% every twelve months (see Figure 1). The question is, with Unilever’s actions in regards to marketing expenditures, is the 15% increase going to be enough to restart P&G’s upward growth of market share?

General Mills is a company that has strategically developed and growth through mergers and acquisitions. Mergers are the fusion of two companies that join forces to compete in the market. There are two types of merger: Horizontal merger on which the company acquires a competitor and vertical merger, on which the fusion is with a supplier. Acquisitions, on the other hand occurs when a company buys another company and become the property of the buyer. Thorough study of the market has made General Mills maintains a leader position on the food industry through more than 100 years in the market. According to a business encyclopedia, Strategy is a plan a company develops to reach a determine objective and reflects the company’s strength,

The Unilever Group’s report on ice cream stated that they saw volume growth and share gains in most markets. Specifically they saw a strong performance in Western Europe, Mexico, Indonesia and Australia. Much of this growth was due to the Magnum Gold acquisition and the marketing of this product in these markets. Product quality improvements helped their Klondike line achieve strong results in the U.S.A. The Unilever Group maintained a negative price growth in ice cream. The negative price growth reflected slightly lower gross margins, at constant currency, with commodity costs higher.

Proctor and Gamble recently completed large restructuring, put new management in place, and cut capital spending needs. Since then they are now focused on increasing top and bottom line results after shifting business mix toward higher margin, less capital-intensive health and beauty care sectors and also gearing towards developing markets and lower-income consumers.

Hindustan Unilever Limited which has a heritage of over 80 years of corporate existence in India is one of the largest Fast Moving Consumer Goods Company in India. It has a rich history, with a belief in values and an eye on growth. This approach has helped its business grow. They build their brands and develop products based on the customer insights, innovation and relentless marketing and design. The company is committed to reduce the environmental footprint and increase its positive social impact making sustainable living a commonplace.

This assignment is about marketing, where I will produce a marketing strategy for a new or existing product. This unit introduces the major principle and functions of marketing; I will look on customer needs, and creating a suitable strategy or marketing mix, which will satisfy customer needs. In this unit I will experience the marketing process from carrying out initial research about a market, investigating the principles of functions of marketing and the way in which it contributes generating income/profit in a business. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

This helps product development as internal chefs can freely do experiments and explore new food solutions

Proctor and Gamble recently completed large restructuring, put new management in place, and cut capital spending needs. Since then they are now focused on increasing top and bottom line results after shifting business mix toward higher margin, less capital-intensive health and beauty care sectors and also gearing towards developing markets and lower-income consumers.

Unilever is operating in a highly competitive and volatile environment. Current economic crisis have made it difficult for many businesses to operate with profitability. Legal requirements, technical changes, and change in the habits of the customers have created problems for businesses. Companies, including us, have to be updated, and continuous R&D is the key solution to many of our problems. An attractive business is one with higher margins and low competitions. Therefore, if the environment where we operate is with higher level of competition and low level of profit margins, our best strategy is to keep customers satisfied and loyal, continuous R&D, cost control, and responsive to our competitors.