marketing case study of unilever

• Digital marketing at Unilever International

SINGAPORE, SEPTEMBER 2018. A Unilever internal venturing effort, UI was started in Singapore by Unilever veterans to substitute the rather inefficient operating companies’ (OpCos) export units with a dedicated group focused on exploiting the group’s “white spaces” – non-core brands, consumer segments (such as diasporas and religious sub-groups), new channels (such as airports and cruises) and geographies – not big enough to merit attention from the Unilever OpCos. The group proved quickly its value proposition, doubling the turnover it inherited in less than four years, with higher margins and growth rates than the mother company. By 2016, Aseem was entrusted with organizing the marketing function, setting up a 15-person team based at HQ. The team managed 10,000+ brand/country cells remotely and had to rely heavily on digital marketing, using 3rd party resources, including open talent platforms, to gain leverage, cut costs and grow faster. It conducted 250 launches in the previous 18 months, while reducing advertising and promotion costs by 20%. Now Aseem had to take digital marketing to the next level. Should he increase spending limits per brand/country?

• Discuss the tools and power of digital marketing
• Managing FMCG sales in a digital world
• Outsourcing key marketing functions
• Organizing marketing in a VUCA world
• Understanding the entrepreneurial mindset
• Maintaining agility in a large firm
• Leveraging the power of the internet
• ESAO framework (Eliminate, Simplify, Automate, Outsource)
• Intrapreneurs

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Unilever Marketing Strategy: How They Dominate the Consumer Goods Market

• October 9, 2023
• Digital marketing

Unilever Marketing Strategy – Unilever , a multinational consumer goods corporation, has established its dominance in the market through its effective and innovative marketing strategies. By understanding the significance of a strong marketing strategy, Unilever has been able to solidify its position as a leader in the consumer goods industry.

With a global presence and a diverse portfolio of iconic brands, Unilever has successfully leveraged brand synergy, invested in product innovation, utilized digital marketing, formed strategic partnerships, built customer loyalty, and measured marketing impact. 

In this article, we will explore how Unilever Marketing Strategy has propelled them to become a dominant force in the consumer goods market.

Read More : FedEx Marketing Strategy: How They Continues to Revolutionize the Logistics Industry

Table of Contents

Overview of unilever’s prominent position in the consumer goods market.

Unilever marketing strategy – By understanding the needs and desires of consumers, Unilever has been able to develop effective marketing campaigns that resonate with their target audience. Through its extensive presence across various markets and a diverse portfolio of iconic brands, Unilever has established itself as a leader in the industry.

A. Unilever’s extensive presence across various markets

Unilever operates in more than 190 countries, making it a truly global company. This extensive presence allows Unilever to reach a wide range of consumers and adapt its Unilever Marketing Strategy to different cultural and economic contexts. 

By understanding the nuances of each market, Unilever is able to tailor its products and marketing messages to effectively connect with consumers.

B. Diverse portfolio of iconic brands

Unilever boasts a diverse portfolio of over 400 brands, ranging from food and beverages to personal care and home care products. Some of Unilever’s most prominent brands include Dove, Axe, Rexona, Hellmann’s, Lipton, Lux, and Sunsilk. These brands have become household names, known for their quality and reliability. 

Unilever’s extensive brand portfolio allows the company to cater to the diverse needs and preferences of consumers across the globe.

C. Leveraging brand synergy and cross-promotion

One of Unilever’s key strategies is leveraging brand synergy and cross-promotion. By promoting multiple brands within its portfolio simultaneously, Unilever is able to create a halo effect that boosts brand recognition and loyalty. 

For example, Unilever often pairs complementary products together in its marketing campaigns, such as promoting Dove body wash and Dove deodorant as a complete personal care package. This cross-promotion strategy not only increases sales for individual brands but also strengthens the overall Unilever brand.

Read More : Lego Marketing Strategy: How They Built a Global Toy Empire

Unilever’s Product Innovation and R&D

Unilever marketing strategy – By continuously introducing new products and adapting to changing consumer trends, Unilever has maintained its position as an industry leader.

A. Unilever’s focus on continuous product innovation

Unilever understands the importance of staying ahead of the curve in a rapidly evolving market. Through a dedicated focus on product innovation, Unilever continuously develops new products that meet the changing needs and preferences of consumers. 

From introducing new flavors and variants to improving product formulations, Unilever’s commitment to innovation ensures that its brands remain relevant and appealing to consumers.

B. Investing in research and development

Unilever marketing strategy – Unilever invests heavily in research and development to drive innovation and product improvement. By investing in cutting-edge technologies and collaborating with external partners, Unilever is able to stay at the forefront of industry trends. 

This investment in R&D allows Unilever to develop new products, improve existing ones, and enhance its overall product offering.

C. Meeting evolving consumer trends and preferences

Unilever recognizes the importance of staying in tune with evolving consumer trends and preferences. By conducting extensive market research and consumer insights analysis, Unilever is able to identify emerging trends and adapt its products accordingly. 

Whether it’s catering to the growing demand for natural and sustainable products or capitalizing on new dietary trends, Unilever ensures that its products align with consumer preferences.

Unilever’s Successful Use of Digital Marketing

Unilever marketing strategy – Unilever has effectively embraced digital marketing to connect with consumers and drive brand awareness.

A. Memorable advertising campaigns

Unilever is known for its memorable advertising campaigns that resonate with consumers. By telling compelling stories and evoking emotions, Unilever’s advertising campaigns leave a lasting impact on consumers. 

Whether it’s Dove’s “Real Beauty” campaign or Axe’s humorous and provocative commercials, Unilever’s advertising strategies create a strong brand presence and build brand loyalty.

B. Utilizing diverse digital platforms for brand presence

Unilever marketing strategy – Unilever recognizes the power of digital platforms in reaching and engaging with consumers. Unilever maintains a strong presence on social media platforms such as Facebook, Instagram, and Twitter, where it interacts with consumers, shares product updates, and responds to customer feedback. 

Unilever also utilizes online advertising, search engine optimization, and influencer marketing to expand its digital reach and connect with a broader audience.

C. Storytelling and engaging narratives in marketing

Unilever understands the importance of storytelling in marketing. By crafting compelling narratives around its brands, Unilever is able to create deeper connections with consumers.

Whether it’s showcasing the impact of its sustainability initiatives or highlighting the positive social impact of its products, Unilever’s storytelling approach resonates with consumers and enhances brand loyalty.

D. E-commerce strategies and online retail partnerships

Unilever marketing strategy – Unilever has embraced e-commerce as a key channel for reaching consumers. By partnering with online retailers and optimizing its e-commerce strategies, Unilever ensures that its products are easily accessible to consumers in the digital space. 

This includes creating user-friendly online shopping experiences, offering exclusive online promotions, and leveraging data analytics to personalize the online shopping journey.

Read More : IKEA Marketing Strategy: How They Built a Global Furniture Empire

Unilever’s Collaborations and Partnerships

Unilever marketing strategy – Unilever understands the power of collaborations and partnerships in expanding its reach and building brand association.

A. Collaborations with influencers and celebrities

Unilever often collaborates with influencers and celebrities to promote its brands. By partnering with individuals who align with its brand values and target audience, Unilever is able to effectively reach and engage with consumers. 

These collaborations often involve product endorsements, social media campaigns, and exclusive brand collaborations, creating a buzz around Unilever’s products.

B. Strategic partnerships with other brands and organizations

Unilever forms strategic partnerships with other brands and organizations to expand its reach and build brand associations. These partnerships may involve co-branded products, joint marketing campaigns, or shared resources. 

By partnering with like-minded brands and organizations, Unilever is able to tap into new markets and create unique value propositions for consumers.

C. Expanding reach and brand association through partnerships

Unilever’s partnerships go beyond traditional marketing collaborations. The company actively seeks opportunities to collaborate with organizations and initiatives that align with its sustainability goals and social impact initiatives. 

By joining forces with non-profit organizations, government agencies, and industry associations, Unilever is able to amplify its message, drive positive change, and enhance its brand reputation.

How Unilever Builds Loyalty in Customers

Unilever marketing strategy – Unilever recognizes the importance of building customer loyalty to drive repeat purchases and long-term brand advocacy. Through various strategies, Unilever engages with customers and fosters strong relationships.

A. Building customer relationships through loyalty programs

Unilever offers loyalty programs to incentivize repeat purchases and reward customer loyalty. These programs often involve earning points for purchases, exclusive discounts, personalized offers, and access to special events or experiences. 

By rewarding customers for their loyalty, Unilever strengthens the emotional connection between consumers and its brands.

B. Engaging customers through social media and digital channels

Unilever actively engages with customers through social media and digital channels. By responding to customer queries, addressing concerns, and sharing relevant content, Unilever creates a sense of community and fosters two-way communication with its customers. 

This engagement not only builds trust but also provides valuable insights that can inform future Unilever Marketing Strategy .

C. Listening to customer feedback and addressing concerns

Unilever recognizes the importance of listening to customer feedback and addressing concerns promptly. 

By actively monitoring social media platforms, online reviews, and customer service channels, Unilever can identify areas for improvement and take corrective actions. This responsiveness demonstrates Unilever’s commitment to customer satisfaction and builds trust with its consumers.

Measuring the Marketing Impact: Unilever’s Strategies for Assessing Performance

Unilever marketing strategy – Unilever understands the importance of measuring marketing impact to evaluate the effectiveness of its strategies and optimize future campaigns. 

A. Key performance indicators for evaluating marketing success

Unilever utilizes various KPIs to measure the success of its Unilever Marketing Strategy . These KPIs may include brand awareness, customer acquisition and retention rates, sales growth, market share, and customer satisfaction. 

By regularly monitoring these metrics, Unilever can identify areas of improvement and make data-driven decisions to enhance its marketing performance.

B. Analyzing brand awareness and perception

Unilever places a strong emphasis on brand awareness and perception. Through market research, surveys, and brand tracking studies, Unilever assesses consumer awareness and perception of its brands. 

This analysis helps Unilever understand how its marketing efforts are influencing brand perception and guides future marketing strategies.

C. Tracking sales growth and market share

Unilever closely monitors sales growth and market share to evaluate the impact of its Unilever Marketing Strategy . By analyzing sales data and market share trends, Unilever can assess the effectiveness of its marketing campaigns in driving consumer demand and capturing market share. 

This analysis allows Unilever to make informed decisions regarding resource allocation and marketing investments.

Read More : Honda Marketing Strategy: How They Remain a Leader in the Automotive Industry

In conclusion, Unilever marketing strategy has played a pivotal role in its dominance of the consumer goods market. Through its global presence, diverse brand portfolio, product innovation, digital marketing initiatives, strategic collaborations, customer loyalty programs, and performance measurement strategies, Unilever has established itself as a leader in the industry.

Businesses aspiring to excel in the consumer goods industry can learn valuable lessons from Unilever’s marketing success, including the importance of understanding consumer needs, embracing innovation, leveraging digital platforms, forming strategic partnerships, building customer loyalty, and measuring marketing impact. 

By adopting these Unilever marketing strategy , businesses can enhance their own marketing efforts and position themselves for success in the competitive consumer goods market.

Parker Casio Patty

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Business Strategies that set FMCG giant “Unilever” a class apart

The first name that comes to mind as soon as somebody talks about the FMCG industry is Unilever. A century ago no one would have predicted that a company founded by a margarine owner and a soapmaker would years later become one of the most established and famous companies and one of the most desirable employers in the world .

As of 2020, it has a turnover of around €50.724 billion and has approximately 155,000 employees worldwide. Apart from financially doing well, it has also progressed towards achieving sustainable development goals. Unilever is one of the few companies which have achieved gender equality in the workplace (as of 2020).

Transformation of a merged operation to a renowned brand

Unilever was established in September 1929 by merger of Dutch-based company Margarine Unie and British soapmaker Lever Brothers. The name Unilever came up by blending the names of both the companies. It has emerged as one of the largest consumer brands owning around 400 brands. It is primarily known for its diversification and has three main divisions. 

1) Food and Refreshments

2) Home Care

3) Beauty and Personal Care

It was only in the late 20th century; the organization increasingly diversified from making oils and fats products to expanding its operations worldwide. It has made numerous corporate acquisitions with brands like Dove, Omo, Knorr, Lipton, Lux, Magnum, Rexona/Degree, Sunsilk, etc. 

We're proud to say our brands are known for being widely used around the world. Check out some of our leading products: https://t.co/xRZwMakuFM pic.twitter.com/d91MmjipCw — Unilever Global Careers (@CareersUnilever) January 5, 2018

Unilever is famously known for its U-Shaped logo. It was only in 2004 that the current logo was established, which was designed by Wolff Olins. The current logo is made up of 25 icons which represents an aspect of the company. 

View this post on Instagram A post shared by Unilever Global #StaySafe (@unilever)

Unilever’s Marketing Strategy: A brand with a purpose

One of the best business strategies used by Unilever is that it integrates its global strategies with the local community to attract consumers who are attracted to the products that are famous worldwide; however, it can hold on to its local essence.

For example, Hindustan Unilever, a subsidiary of Unilever in India, has established itself as one of the most loved brands by the Indian audience. For decades it has been one of the top five most valuable companies in India . The reason for the success of HUL in the Indian market is its association with middle-class values and old-fashioned essence. Although it has been changing with time simultaneously, HUL’s philosophy has remained rooted in the purpose and values of the consumers.

While promoting these brands, Unilever also focuses on achieving the upper hand in communication to the audience without compromising these brands’ delivery.

For instance, the Surf Excel tagline has been ‘dirt is good and has portrayed it in various forms. At the same time, the case of Brooke Bond Red Label depicted how a social conversation over a cup of tea (or perhaps just a sip) could bring a change in the social views of the tea lover. Therefore, due to such creative methods, Unilever’s brands, despite being one of the oldests, have continued to gain consumers’ confidence.

Unilever: A company that keeps sustainability at the heart of its business strategy

As of 2020, Unilever celebrated 10 years of the Sustainable Living Plan . The company had committed to providing sustainable living for 8 billion people worldwide and decided to address social inequality and climate changes. The company did not neglect these goals despite the occurrence of COVID-19. 

Unilever worked on the longer-term implications of global trends for its business. Thus, the adoption of the Sustainable Living Plan has been a game-changer. It understood the importance of Sustainability and accepted it as a cultural transformation journey by integrating the USLP targets into its core working practices and procedures.

At the corporate level, Unilever has been committed to gender equality for a long time. As of 2020, 50% of managerial positions are held by women as compared 2010 to 38%. The organization had set a goal in 2010 to have a 50/50 split in the employment and added a women-leadership program . It collected, reviewed, and analyzed the data for the past 10-years and used it to battle gender stereotypes every month.

Unilever focuses on eliminating inequality at the global level by removing stereotypes in its advertising and showing how fathers or husbands could contribute to society 

Even during COVID-19 for 3-months, it did not stop working on its sustainable development plan and gender equality. It stated that organizations measuring inequality now would be better positioned to improve business and equality post-Covid. It made progress slowly over the years and was one of the few companies to achieve a balance. In 2020 Unilever won the ‘Catalyst Award’ for achieving gender equality 

As of 2021…..Unilever is using sustainability as an opportunity…

Unilever has been honored as being the most environmentally responsible companies and topped the list back in 2017.

In its latest goals, Unilever further added that it would reduce food waste from the factory to the shelf by half by 2025, which is five years earlier than what the organization has committed as part of the 10x20x30 (i.e 200 companies pledge to reduce wastage by 2030) initiative. It further added to increase the plant-based sales to around 1 billion euros ($1.2 billion) by the next 5-7years to reduce greenhouse gas emissions from traditional animal-based agriculture.

Unilever : Building a customer-centric business strategy

The organization has a competitive advantage due to its continuously enhancing values amongst consumers globally. Furthermore, it possesses a diversified portfolio of the top brands, thus achieving a unique position and innovating with the consumers’ preferences globally.

It has also taken up initiatives in its Research and Development, which are heavily funded to align with changing consumer needs. It has its R&D operations in China, India, UK, the US, and the Netherlands. Due to its manufacturing facilities in around 270 locations globally, Unilever has been able to cut costs and achieve expertise in its distribution channels.

Unilever has been able to establish itself as the most significant FMCG due to its direct-to-consumer business model, i.e. by extensively understanding the needs of the consumers. Unilever also started its marketing campaign by forming a relationship between the consumer and the brand.

The most crucial element in the business strategy of Unilever is the R&D in its product development, while being on par with its marketing activities. Unilever understood changing needs of the consumers and implemented them in their development. In 2017 alone, Unilever invested more than 900 million euros in its R&D. 

It’s not easy to be a market leader for a century and that too by winning the hearts of its consumers. With its dedicated sustainable yet customer-centric business strategy, Unilever would continue to do so.

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Gabriela Salinas and Jeeva Somasundaram

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In April this year, Hein Schumacher, chief executive of Unilever, announced that the company was entering a “new era for sustainability leadership”, and signalled a shift from the central priority promoted under his predecessor , Alan Jope.

While Jope saw lack of social purpose or environmental sustainability as the way to prune brands from the portfolio, Schumacher has adopted a more balanced approach between purpose and profit. He stresses that Unilever should deliver on both sustainability commitments and financial goals. This approach, which we dub “realistic sustainability”, aims to balance long- and short-term environmental goals, ambition, and delivery.

As a result, Unilever’s refreshed sustainability agenda focuses harder on fewer commitments that the company says remain “very stretching”. In practice, this entails extending deadlines for taking action as well as reducing the scale of its targets for environmental, social and governance measures.

Such backpedalling is becoming widespread — with many companies retracting their commitments to climate targets , for example. According to FactSet, a US financial data and software provider, the number of US companies in the S&P 500 index mentioning “ESG” on their earnings calls has declined sharply : from a peak of 155 in the fourth quarter 2021 to just 29 two years later. This trend towards playing down a company’s ESG efforts, from fear of greater scrutiny or of accusations of empty claims, even has a name: “greenhushing”.

Test yourself

This is the fourth in a series of monthly business school-style teaching case studies devoted to the responsible business dilemmas faced by organisations. Read the piece and FT articles suggested at the end before considering the questions raised.

About the authors: Gabriela Salinas is an adjunct professor of marketing at IE University; Jeeva Somasundaram is an assistant professor of decision sciences in operations and technology at IE University.

The series forms part of a wider collection of FT ‘instant teaching case studies ’, featured across our Business Education publications, that explore management challenges.

The change in approach is not limited to regulatory compliance and corporate reporting; it also affects consumer communications. While Jope believed that brands sold more when “guided by a purpose”, Schumacher argues that “we don’t want to force fit [purpose] on brands unnecessarily”.

His more nuanced view aligns with evidence that consumers’ responses to the sustainability and purpose communication attached to brand names depend on two key variables: the type of industry in which the brand operates; and the specific aspect of sustainability being communicated.

In terms of the sustainability message, research in the Journal of Business Ethics found consumers can be less interested when product functionality is key. Furthermore, a UK survey in 2022 found that about 15 per cent of consumers believed brands should support social causes, but nearly 60 per cent said they would rather see brand owners pay taxes and treat people fairly.

Among investors, too, “anti-purpose” and “anti-ESG” sentiment is growing. One (unnamed) leading bond fund manager even suggested to the FT that “ESG will be dead in five years”.

Media reports on the adverse impact of ESG controversies on investment are certainly now more frequent. For example, while Jope was still at the helm, the FT reported criticism of Unilever by influential fund manager Terry Smith for displaying sustainability credentials at the expense of managing the business.

Yet some executives feel under pressure to take a stand on environmental and social issues — in many cases believing they are morally obliged to do so or through a desire to improve their own reputations. This pressure may lead to a conflict with shareholders if sustainability becomes a promotional tool for managers, or for their personal social responsibility agenda, rather than creating business value .

Such opportunistic behaviours may lead to a perception that corporate sustainability policies are pursued only because of public image concerns.

Alison Taylor, at NYU Stern School of Business, recently described Unilever’s old materiality map — a visual representation of how companies assess which social and environmental factors matter most to them — to Sustainability magazine. She depicted it as an example of “baggy, vague, overambitious goals and self-aggrandising commitments that make little sense and falsely suggest a mayonnaise and soap company can solve intractable societal problems”.

In contrast, the “realism” approach of Schumacher is being promulgated as both more honest and more feasible. Former investment banker Alex Edmans, at London Business School, has coined the term “rational sustainability” to describe an approach that integrates financial principles into decision-making, and avoids using sustainability primarily for enhancing social image and reputation.

Such “rational sustainability” encompasses any business activity that creates long-term value — including product innovation, productivity enhancements, or corporate culture initiatives, regardless of whether they fall under the traditional ESG framework.

Similarly, Schumacher’s approach aims for fewer targets with greater impact, all while keeping financial objectives in sight.

Complex objectives, such as having a positive impact on the world, may be best achieved indirectly, as expounded by economist John Kay in his book, Obliquity . Schumacher’s “realistic sustainability” approach means focusing on long-term value creation, placing customers and investors to the fore. Saving the planet begins with meaningfully helping a company’s consumers and investors. Without their support, broader sustainability efforts risk failure.

Questions for discussion

Read: Unilever has ‘lost the plot’ by fixating on sustainability, says Terry Smith

Companies take step back from making climate target promises

The real impact of the ESG backlash

Unilever’s new chief says corporate purpose can be ‘unwelcome distraction ’

Unilever says new laxer environmental targets aim for ‘realism’

How should business executives incorporate ESG criteria in their commercial, investor, internal, and external communications? How can they strike a balance between purpose and profits?

How does purpose affect business and brand value? Under what circumstances or conditions can the impact of purpose be positive, neutral, or negative?

Are brands vehicles by which to drive social or environmental change? Is this the primary role of brands in the 21st century or do profits and clients’ needs come first?

Which categories or sectors might benefit most from strongly articulating and communicating a corporate purpose? Are there instances in which it might backfire?

In your opinion, is it necessary for brands to take a stance on social issues? Why or why not, and when?

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Case study: Unilever

As one of the world’s largest FMCG companies, the social and environmental impact of Unilever’s business activities will always be huge relative to most other organisations. However, by 2020 it aims to halve the environmental footprint of its products, improve the welfare of 1 billion people and source all its agricultural products sustainably, while doubling its revenues.

Click here the read the cover feature: CSR – This time it’s profitable Click here to read about what Marks & Spencer is doing about CSR

There are two strands to this growth strategy, according to Unilever vice-president of sustainability Karen Hamilton: “We will sell more volume of product because a lot of our growth is going to be in developing and emerging markets. We will also develop products that are higher value.”

The environmental impact takes into account emissions, waste production and water use, but the majority of the impact comes from how products are used by consumers. As a result, marketing and design will play an important role in helping to change people’s behaviour.

Hamilton says: “We have done a very in-depth analysis that allows us to see that our direct manufacturing impacts are less than 5%. When it comes to greenhouse gases, for example, almost 70% of the lifecycle impacts are tied up in the way consumers use our products, so we are going to need to innovate.”

Though there are opportunities for cost reduction, there is also a need for investment. This is certainly the case when it comes to Unilever’s sourcing of agricultural products. “You need an initial outlay for setting up some of these schemes, such as for sustainable sourcing of palm oil,” says Hamilton.

Shareholders’ attitudes towards the way Unilever has communicated its new approach to CSR will need to be gauged as results emerge. The share price has been volatile in recent months, with movements both up and down in the days following the unveiling of the Sustainable Living plan.

Hamilton says that both the finance department of the company itself and its shareholders recognise that this is not a “nice-to-do”, but is necessary for protecting Unilever’s future profitability in an uncertain world economy.

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Unilever Five Forces Analysis (Porter Model) & Recommendations

This Five Forces analysis of Unilever shows the need to strategically prioritize competition and the bargaining power of customers in the multinational consumer goods company’s industry environment. Michael Porter’s Five Forces Analysis model is a management tool for understanding the impacts of external factors in a company’s competitive environment. In this Five Forces analysis of Unilever, competitive rivalry is viewed as one of the strongest external forces, along with the bargaining power of buyers. To ensure long-term success, the company must address the issues related to these forces. Unilever’s market position and organizational strengths are adequate to address such forces.

This Five Forces analysis of Unilever identifies competition and consumers as the most important forces. The external factors related to these forces impact the company’s financial performance in the consumer goods market. Thus, the competitive environment described in this Five Forces analysis influences the achievement of business goals linked to Unilever’s mission statement and vision statement .

Summary: Five Forces Analysis of Unilever

Unilever deals with a wide variety of external factors, considering the extent of its operations in the global consumer goods market. However, as shown in this Five Forces analysis, such external factors lead to variations in the intensities of the five forces impacting the business. The following are the intensities of the five forces affecting Unilever:

• Competitive rivalry or competition: Strong force
• Bargaining power of buyers or customers: Strong force
• Bargaining power of suppliers: Moderate force
• Threat of substitutes or substitution: Weak force
• Threat of new entrants or new entry: Weak force

This Five Forces analysis highlights competitive rivalry and the bargaining power of buyers as the issues of highest intensity affecting Unilever’s business. The bargaining power of suppliers is also important but has limited impact on the company. The threats of substitutes and new entry have a limited effect on Unilever and the consumer goods industry environment. In this regard, strategic action must prioritize competition and the bargaining power of customers. A recommendation is for Unilever to further build its competitive advantages through product innovation. For example, the company can increase its investment to produce better and more competitive variants of its current personal care and home care products. This effort should reflect Unilever’s generic competitive strategy and intensive growth strategies , which emphasize product uniqueness as a strategic approach. It is also recommended that the company enhance its customer relations to attract and retain more consumers. For example, in applying Unilever’s organizational culture in customer relations processes, higher quality in the processing of requests and complaints can improve consumers’ perception on the company and its brands. The company has the strengths needed to strategically address these issues, as discussed in the SWOT analysis of Unilever .

Competitive Rivalry or Competition with Unilever (Strong Force)

Competition is a major force in Unilever’s industry. This section of the Five Forces analysis identifies the external factors that present the impact of firms on each other. The strong force of competitive rivalry against Unilever is based on the following external factors and their intensities:

• High number of firms (strong force)
• High aggressiveness of firms (strong force)
• Low switching costs for consumers (strong force)

There are many competitors operating in the consumer goods industry, including Procter & Gamble (P&G) and PepsiCo . This external factor imposes a strong force on Unilever. In addition, these firms are generally aggressive, further adding to the intensity of competition. Unilever also experiences tough competition because of low switching costs. For example, it is easy for consumers to switch from one consumer goods company to another. Thus, a high level of competition is shown in this section of the Five Forces analysis, highlighting the need to consider competitive rivalry as a high-priority force in Unilever’s industry environment.

Bargaining Power of Unilever’s Customers/Buyers (Strong Force)

Unilever’s business and industry depend on the response of consumers to its products. The influence of buyers on business performance is considered in this section of the Five Forces analysis. Unilever must address the following external factors that lead to the strong force of the bargaining power of customers:

• Low switching costs (strong force)
• High quality of information (strong force)
• Small size of individual buyers (weak force)

The low switching costs make it easy for consumers to transfer from Unilever’s products to other companies’ products. This external factor contributes to the strong intensity of the bargaining power of buyers. In addition, consumers have access to high-quality information about consumer goods, making it even easier for them to decide when transferring from Unilever to other providers. For example, buyers can compare products based on online information. Moreover, the small size of an individual consumer’s purchases has minimal impact on Unilever’s profits. However, the low switching costs and high quality of information outweigh this third external factor in the industry environment. Based on this section of the Five Forces analysis, the bargaining power of customers is one of the strongest forces affecting the consumer goods business. Unilever’s marketing mix (4Ps) influences customer perception and contributes to the company’s effectiveness in managing the buyer power determined in this Five Forces analysis.

Bargaining Power of Unilever’s Suppliers (Moderate Force)

Suppliers impact Unilever’s industry environment by affecting the level of supply available to firms. This section of the Five Forces analysis presents the influence of suppliers on companies. The following are the external factors that contribute to the moderate force of the bargaining power of suppliers on Unilever:

• Moderate size of individual suppliers (moderate force)
• Moderate population of suppliers (moderate force)
• Moderate overall supply (moderate force)

While Unilever has large suppliers, like foreign firms that supply paper and oil, the average supplier is moderate in size. This external factor imposes a moderate-intensity force on the consumer goods industry environment. In addition, the moderate population of suppliers enables them to impose significant but limited influence on Unilever. Similarly, the moderate level of the overall supply adds to such a significant but limited influence of suppliers. For example, any supplier’s change in production levels leads to a significant but limited change in the availability of materials used in Unilever’s business. Other firms in the industry are similarly affected. As shown in this section of the Five Forces analysis of Unilever, the bargaining power of suppliers is a significant but moderate consideration in the consumer goods industry environment. The approaches used in Unilever’s operations management , particularly for supply chain management, help address the supplier power determined in this Five Forces analysis.

Threat of Substitutes or Substitution (Weak Force)

Substitutes can reduce Unilever’s revenues and the competitive strength of the company in the consumer goods industry. The impact of substitution is determined in this section of the Five Forces analysis. In Unilever’s case, the following external factors are responsible for the weak force of the threat of substitution:

• Low substitute availability (weak force)
• Low performance to price ratio of substitutes (weak force)

The low switching costs enable consumers to easily use substitutes instead of Unilever’s products. This external factor imposes a strong force on the company and the consumer goods industry environment. However, the overall impact of substitution is weakened because of the low availability of substitutes. For example, it is easier to access Unilever’s toothpaste from grocery stores than to obtain substitutes, like homemade organic dentifrices. In relation, most substitutes have low performance levels and a minimal or insignificant cost difference when compared to mass-produced consumer goods readily available in the market. This condition makes Unilever’s products more attractive than substitutes, thereby further weakening the intensity of the threat of substitution. This section of the Five Forces analysis of Unilever shows that the threat of substitutes is a minor business issue.

Threat of New Entrants or New Entry (Weak Force)

Unilever competes with established firms and new firms in the consumer goods market. This section of the Five Forces analysis considers the influence of new firms on the industry environment. The following external factors create the weak force of the threat of new entrants against Unilever:

• High cost of brand development (weak force)
• High economies of scale (weak force)

The low switching costs enable new entrants to impose a strong force against Unilever. For example, consumers can easily decide to try new products from new firms. However, it is costly to build strong brands, like Unilever’s. This external factor weakens the intensity of the threat of new entrants against the company. Also, Unilever takes advantage of high economies of scale, which support competitive pricing and high organizational efficiencies that new firms typically lack. As a result, the company remains strong despite new entrants. Based on this section of the Five Forces analysis, the threat of new entry is a minor concern in Unilever’s industry environment.

• Kostetska, N. (2022). M. Porter’s Five Forces model as a tool for industrial markets analysis. Innovative Economy , (4), 131-135.
• U.S. Department of Commerce – International Trade Administration – Consumer Goods Industry .
• Unilever PLC – Form 20-F .
• Unilever PLC – Our Strategy .
• Unilever PLC – Suppliers .
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• Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.

HUL (Hindustan Unilever) Marketing Strategy 2024: A Case Study

Hindustan Unilever Limited (HUL) is India’s largest fast-moving consumer goods company, renowned for its extensive range of trusted brands across various categories. With over 35+ brands spanning 20 diverse categories, HUL has established a strong presence in Indian households, catering to the evolving needs of consumers.

As a leading player in the industry, HUL’s marketing approach has been instrumental in driving its success. By implementing effective strategies, the company has consistently captured market share and maintained its competitive edge. In this case study, we will delve into the marketing strategy of HUL in 2024, analyzing the key tactics that have contributed to its continued growth and market leadership.

Key Takeaways:

• HUL has a diverse product portfolio with over 35+ brands across 20 categories.
• The company has a wide distribution network, reaching 1.5 million retail outlets directly in India and 7.7 million retail outlets globally.
• HUL focuses on television advertisements, allocating up to 18% of its operations’ expenditure to promotion.
• The company aims for sustainable development and reduced plastic usage through innovative projects like vending machines and smart fill machines.
• HUL follows a pricing strategy that aligns with competitors’ pricing to maintain market balance.

Overview of Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited (HUL) is a prominent player in the Indian market and a subsidiary of Unilever, one of the world’s leading consumer goods companies. With a rich legacy of over 85 years, HUL has established itself as a trusted household name in India. The company boasts a diverse portfolio of more than 35 well-known brands across 20 categories, catering to the needs of millions of Indian consumers.

HUL has achieved remarkable growth and success over the years. In the past decade alone, the company has doubled its turnover to 45,000 crore rupees (€5.1 billion) and added 26,000 crore rupees (€3 billion) to its bottom line. This tremendous growth has propelled HUL to become the second-largest Unilever business globally, with a market capitalization of more than 570,000 crore rupees (€65 billion).

One of HUL’s key strengths lies in its ability to adapt to the evolving market landscape and cater to the changing consumer preferences. The company has a strong focus on innovation and has expanded its product portfolio through strategic acquisitions. For instance, the acquisition of Indulekha hair oil has resulted in sixfold growth in the Premium Naturals segment within just five years. Additionally, HUL’s entry into the Foods and Refreshment segment through the inclusion of brands like Horlicks and Boost has positioned it as one of the largest players in this category in India.

HUL is committed to sustainability and has implemented several initiatives to drive positive social and environmental impact. The company’s “Winning in Many Indias” (WIMI) model has enabled Lifebuoy, one of its flagship brands, to launch 17 hand sanitizer variants in a span of just 100 days, contributing to substantial growth for the brand. Furthermore, through the Hindustan Unilever Foundation (HUF), HUL has undertaken water management initiatives that have made a significant impact, enabling more than 1.3 trillion liters of water potential.

HUL is also at the forefront of tackling environmental challenges, striving to be a plastic-neutral business. The company has collected and safely disposed of over 100,000 tons of post-consumer plastic waste and has made a commitment to collect and safely dispose of more plastic waste than used in its packaging from a certain year.

With a commitment to diversity and inclusion, HUL has made significant strides in promoting gender equality. Currently, 42% of the company’s managerial workforce comprises women, and HUL has implemented initiatives to achieve gender parity in the coming years.

HUL’s commitment to digital transformation has positioned the company for future success. The establishment of a Digital Council and the adoption of AI for recruitment and cognitive computing are examples of HUL’s efforts to build a future-ready workplace.

HUL’s strong financial performance and strategic initiatives have earned the company a reputation as the employer of choice, not just in the consumer goods industry but across industries. The company employs around 21,000 individuals and has a wide network of more than 500,000 retailers connected to its Shikhar app, which proved crucial during the COVID-19 pandemic by aiding in order placements and stock management.

With a robust portfolio of leading brands and a commitment to sustainable growth, HUL continues to shape the consumer goods industry in India and drive transformative change in the market.

Product Strategy of Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) has established itself as a market leader in India with its diverse and comprehensive product portfolio. HUL’s product strategy focuses on meeting the needs and preferences of middle-class Indian households, offering a wide range of high-quality products in various categories.

In the food and beverages sector, HUL owns renowned brands such as Kwality Wall’s, Lipton, Brooke Bond, Bru, Annapurna, and Knorr. These brands cater to the diverse tastes of Indian consumers, providing them with delicious and nutritious food options.

When it comes to home care, HUL offers an array of detergents like Surf Excel, Rin, Comfort, and Sunlight, ensuring cleanliness and hygiene for households across the country. Additionally, HUL provides household cleaning products such as Cif and Domex, assisting consumers in maintaining a clean and safe living environment.

In the personal care segment, HUL boasts an impressive lineup of brands including Clear, Tresemme, Clinic Plus, Dove, Lux, Pears, Vaseline, Lifebuoy, Axe, and Brylcreem. These brands offer a wide range of personal care products, including hair care, skincare, and personal hygiene essentials, ensuring that consumers feel and look their best.

Recognizing the importance of clean drinking water, HUL also provides water purifiers under the Pure It brand. These purifiers emphasize the importance of safe and accessible drinking water, promoting the health and well-being of consumers.

HUL’s extensive product portfolio reflects its commitment to offering quality products that fulfill the needs of Indian consumers across various categories. By leveraging its diverse brand offerings and understanding customer preferences, HUL aims to continue its success in the Indian market.

HUL’s product strategy, backed by its strong brand portfolio, enables the company to cater to a wide range of consumer needs and preferences. Through continuous innovation and market research , HUL maintains its position as a leading player in the Indian FMCG industry.

Place & Distribution Strategy of Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) has established a robust place and distribution strategy to efficiently reach and serve both urban and rural consumers across India. With a multi-channel approach, the company ensures widespread availability of its products through various distribution channels, including traditional trade, modern trade outlets, and direct-to-consumer channels via e-commerce platforms.

The HUL distribution network is extensive, with 2 million outlets directly and 7.7 million retail outlets worldwide. In India, the company operates through its managing arm, Hindustan Unilever Limited Network, that includes a strong direct selling network. This network consists of 2,500 redistribution stockists covering 6.3 million retail outlets in metropolitan India.

To serve the rural market, HUL has implemented specific initiatives like Project Shakti, which empowers rural women in the distribution process. Through this program, the company reaches around 250 million people in rural India, meeting their diverse needs.

HUL’s commitment to sustainability extends to its distribution strategy. The company leverages advanced technology and data analytics to optimize its supply chain, reduce the carbon footprint, minimize water usage, and manage waste generation.

With a strong focus on market penetration, HUL’s distribution strategy caters to the diverse needs of consumers. From urban centers to remote areas, the company ensures that its products are readily available to meet consumer demand. This wide reach has contributed to HUL’s market leadership in various categories, including being the market leader in the coffee category in India, with nine out of ten households using HUL products.

HUL Distribution Reach and Statistics

In conclusion, Hindustan Unilever Limited’s strong distribution strategy, encompassing a diverse range of channels, enables it to effectively serve both urban and rural consumers. The company’s commitment to sustainability and continual innovation in its distribution processes ensures that HUL products reach even the most remote locations, contributing to its market leadership in India.

Price Strategy of Hindustan Unilever Limited

Hul pricing strategy: delivering value to consumers.

Hindustan Unilever Limited (HUL) employs a comprehensive pricing strategy to cater to the diverse needs of Indian consumers while ensuring sustainable growth in the market. With its extensive portfolio of trusted brands and a steadfast commitment to delivering value, HUL adopts various pricing components to maintain a competitive edge.

Market Penetration Pricing, Value-Based Pricing, Product Line Pricing, Competitive Pricing, Dynamic Pricing, Promotional Pricing, Premium Pricing for Niche Segments, Cost-Plus Pricing, and Skimming Strategy for Innovations are some of the key elements of HUL’s pricing policy.

One of the primary focuses of HUL’s pricing strategy is to offer products at reasonable prices, making them accessible to middle-class Indian households. By adjusting prices in response to competitors’ pricing of similar goods, HUL ensures that its products remain competitive in the market.

HUL has a deep understanding of the Indian economy, and its pricing strategy reflects this knowledge. The company aims to balance market dynamics while delivering value to consumers. By offering products at competitive prices, HUL strives to reach a wide range of customers and penetrate various market segments .

Attractive Marketing Plans and Customer-Centric Approach

With a large consumer base and fluctuating demand, HUL recognizes the importance of offering attractive marketing plans to meet the needs of its customers. By implementing pricing strategies that consider the affordability and purchasing power of consumers, HUL strives to create a win-win situation for both the company and its customers.

HUL’s pricing strategy goes hand in hand with its distribution strategy, which involves one of the most extensive distribution networks among FMCG companies in India. Leveraging technology for efficiency and utilizing a multi-channel distribution approach, HUL ensures that its products reach even the most remote areas of the country.

The company’s commitment to sustainability is also reflected in its pricing strategy. HUL focuses on rural market penetration and ensures sustainability in the supply chain, enabling consumers in rural areas to access its products while minimizing environmental impact.

Promotion Strategy of Hindustan Unilever Limited

Promotion is a vital component of Hindustan Unilever Limited’s (HUL) marketing strategy, which aims to create a strong brand presence and connect with consumers. With over 35+ brands across 20 categories and a vast portfolio of products, HUL utilizes various advertising techniques to effectively reach its target audience .

HUL understands the power of television advertisements and invests up to 18% of its expenditure on advertising, primarily through this medium. By leveraging television, HUL reaches a wide audience, ensuring maximum visibility for its brands.

To further enhance its promotion strategy, HUL has implemented several impactful campaigns. The Shakti campaign, Project Bharat, and Lifebuoy Swasthya Chetana are among the initiatives that showcase the company’s commitment to sustainability, community upliftment, and green alternatives.

In addition to television, HUL extends its promotion strategies to newspapers, the internet, personal and direct selling channels. By utilizing traditional media and embracing social media platforms, HUL effectively engages with consumers and builds long-term brand loyalty.

HUL understands the significance of celebrity endorsements in promoting its products. Collaborating with well-known personalities helps create a connection with consumers and enhances brand credibility.

Furthermore, HUL’s commitment to sustainability is reflected in its promotion strategies. The company has innovated vending machines and smart fill machines to reduce plastic waste and promote eco-friendly practices.

It is worth noting that HUL places a strong emphasis on responsible marketing. In 2003, the company was one of the first to implement principles for marketing foods and beverages to children. HUL adheres to the Principles on Responsible Food & Beverage Marketing to Children, which apply to all its food and beverage marketing communications and activities worldwide.

By applying the Advertising Standards Council (ASCI) code and other regulatory guidelines on advertising, HUL ensures ethical and responsible promotion across all its communications. The company also has various internal measures, including employee training sessions, to ensure the implementation of responsible marketing standards.

HUL’s promotion strategies have been successful in engaging consumers on important issues and promoting brand values. Campaigns like Dove’s Campaign for Real Beauty, Surf excel’s “Dirt is Good” campaign, and Comfort One Rinse campaign have effectively connected with consumers and conveyed meaningful messages.

Overall, HUL’s promotion strategy encompasses various channels, including traditional media, social media platforms, promotional events, celebrity endorsements, and sustainable development initiatives. By adopting a multifaceted approach, HUL effectively reaches its target audience and establishes a strong brand presence in the market.

Brand Performance and Competitiveness of Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) is a leading player in the fast-moving consumer goods (FMCG) sector in India. With a rich history dating back to 1933, HUL has built a strong brand equity and market leadership position. The company operates in over 20 consumer categories, offering a diverse portfolio of more than 40 brands across personal care, home care, food, and refreshments.

One of HUL’s key strengths is its comprehensive distribution network, reaching millions of households in India and international markets. The company’s extensive reach includes both urban and rural areas, making its products accessible to a wide range of consumers. In fact, HUL reports that nearly half of its sales come from rural markets, showcasing its success in tapping into the vast rural consumer base in India.

To further penetrate rural markets, HUL has implemented a rural strategy that focuses on offering smaller pack sizes and sachet formats for affordability. This approach caters to the needs and purchasing power of rural consumers, allowing them to access HUL products at affordable prices. Additionally, HUL’s rural marketing efforts include vernacular advertising campaigns tailored to local sensibilities, enabling effective communication and brand connection with rural consumers.

Furthermore, HUL’s rural initiatives, such as Project Shakti, have had a transformative impact on rural communities. Project Shakti, with its network of over 136,000 Shakti Ammas (rural women micro-entrepreneurs), has empowered women in rural areas by providing them with entrepreneurial opportunities. This initiative not only drives economic growth but also establishes HUL as a socially responsible and inclusive brand.

Despite its success in rural markets, HUL faces challenges in terms of infrastructure limitations and evolving consumer preferences. Infrastructure gaps, particularly in remote rural areas, can hinder HUL’s distribution capabilities and hinder its growth potential. Additionally, consumer preferences in rural markets are constantly evolving, requiring HUL to continuously innovate and adapt its product offerings to stay competitive.

To address these challenges and maintain its brand performance and competitiveness, HUL has identified several recommendations. The company should invest in strengthening its logistics capabilities to overcome infrastructure limitations and ensure efficient product distribution. Deepening market research will allow HUL to gain a deeper understanding of rural consumers’ evolving preferences and tailor its offerings accordingly. Furthermore, HUL can leverage digital solutions to enhance its rural operations, such as using technology for supply chain management and e-commerce platforms to expand its reach.

In conclusion, HUL’s brand performance and competitiveness in the FMCG sector are marked by its strong market leadership, diverse portfolio, and extensive distribution network. The company’s success in rural markets and its commitment to addressing challenges and embracing opportunities demonstrate its ability to adapt and thrive in a dynamic business environment.

Growth Action Plan and Future Outlook of Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) has laid out an ambitious growth action plan to strengthen its performance and enhance its competitive edge in the industry. Through a series of strategic initiatives, HUL aims to capitalize on market opportunities, drive sustainable growth, and deliver financial results that position the company among the top performers in the industry.

At the heart of HUL’s growth action plan is the prioritization of its 30 Power Brands. These brands, carefully selected based on their potential for focused growth, form the core of HUL’s growth strategy. By leveraging the strengths of these brands, HUL aims to drive market share expansion and consolidate its leadership position in various product categories.

HUL recognizes the importance of brand superiority in today’s competitive landscape. To achieve this, the company adopts a comprehensive approach, measuring six superiority attributes: product, proposition, packaging, place, promotion, and pricing. By continuously evaluating and improving these attributes, HUL ensures that its brands resonate with consumers, drive preference, and maintain a strong competitive advantage.

In order to drive category growth and expand its market presence, HUL emphasizes scalable innovations. By investing in research and development, HUL aims to introduce innovative products that address evolving consumer needs while creating new market opportunities. This approach enables HUL to stay at the forefront of industry trends and foster sustainable growth.

HUL recognizes the growing importance of digital channels in reaching and engaging consumers. As part of its growth action plan, the company increases its brand investment in digital channels to maximize its presence in the digital landscape. By leveraging technology and data-driven insights, HUL aims to enhance its brand visibility, customer engagement, and sales performance in the digital space.

Continual portfolio optimization is another key component of HUL’s growth strategy. By regularly evaluating its brand portfolio, HUL identifies opportunities to divest non-core assets and selectively invest in high-potential brands and businesses. This approach ensures that HUL’s portfolio remains agile, competitive, and aligned with evolving market dynamics.

As a socially responsible company, HUL is committed to sustainability goals. The company focuses on addressing key environmental and social challenges, including climate change, nature conservation, plastics, and livelihoods. By integrating sustainability into its business operations, HUL contributes to a more sustainable future while creating shared value for its stakeholders.

Operational model simplification is a critical enabler of HUL’s growth action plan. By streamlining processes and workflows, HUL aims to enhance organizational efficiency, agility, and flexibility. This enables the company to respond quickly to market changes, improve customer service, and drive operational excellence across its value chain.

HUL understands the importance of customer development and engagement. To strengthen its relationships with customers, the company focuses on the frontline customer development roles. By equipping its front-line teams with the necessary skills, resources, and support, HUL enhances customer-centricity, drives customer loyalty, and fosters long-term partnerships.

Growth Outlook

Looking ahead, HUL has a positive outlook for its future growth. The company expects underlying sales growth for the upcoming year to be within the range of 3% to 5%, striking a balance between volume and price growth. HUL aims to improve its underlying operating margin through continued focus on gross margin expansion and productivity improvements.

The financial performance of HUL remains strong, with a turnover of €59.6 billion in the previous year and an underlying operating profit of €9.9 billion, reflecting a 2.6% increase compared to the prior year. The company continues to invest in its growth and expansion, returning €5.9 billion to shareholders through dividends and share buybacks.

HUL’s commitment to sustainability is exemplified by its achievements, including the creation of over 2.6 trillion liters of water potential and a 97% reduction in CO2 emissions. The company remains dedicated to upholding high ethical standards, emphasizing employee values such as integrity, respect, responsibility, and pioneering, while driving positive change within and beyond its organization.

In conclusion, HUL’s growth action plan and future outlook demonstrate its commitment to delivering sustainable growth, fostering innovation, and staying ahead of industry trends. With a focus on brand excellence, digital transformation, and sustainability, HUL is poised to thrive in the dynamic and evolving consumer goods landscape.

Hindustan Unilever Limited (HUL), India’s largest fast-moving consumer goods company, has demonstrated remarkable growth and success in the market. With a focus on delivering high-quality products across diverse sectors, HUL has achieved significant revenue and profit figures throughout its history.

However, the company acknowledges the need to adapt to changing market dynamics and enhance its competitive edge. By implementing its Growth Action Plan, HUL aims to further strengthen its position and drive sustainable growth. This comprehensive plan includes strategies such as brand superiority improvement, portfolio optimization, and organizational performance enhancement.

With a commitment to understanding and catering to the unique needs of the Indian consumer base, HUL is poised to capitalize on its market share and solidify its position as an industry leader. Through its performance-driven approach, HUL seeks to continue delivering value to consumers, shareholders, and the Indian economy as a whole.

What is Hindustan Unilever Limited (HUL)?

What is hul’s product strategy, how does hul distribute its products, what pricing strategy does hul follow, how does hul promote its brand, what is the brand performance and competitiveness of hul, what is hul’s growth action plan and future outlook, related posts:.

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Nina Sheridan is a seasoned author at Latterly.org, a blog renowned for its insightful exploration of the increasingly interconnected worlds of business, technology, and lifestyle. With a keen eye for the dynamic interplay between these sectors, Nina brings a wealth of knowledge and experience to her writing. Her expertise lies in dissecting complex topics and presenting them in an accessible, engaging manner that resonates with a diverse audience.

WNBA Marketing Strategy 2024: A Case Study

Yandex marketing strategy 2024: a case study.

2013 winner: Unilever (AXE), Global Marketing - case study

For the last fifteen years, AXE, known as Lynx in the UK has become famous the world over for giving guys the edge with girls. This promise of seduction has been underpinned by great fragrances and a compelling brand idea – The AXE Effect.

To grow the brand, AXE must launch a completely new fragrance, packing and communications campaign annually, replacing a cohort of guys that naturally graduate from the brand. To ensure consistency and to maximise commercial efficiencies, all communications ideas and assets are created centrally. The constant challenge is to bring The AXE Effect to life in a way that is fresh and relevant to the federation of 100 markets and the guys within them.

Changing the brand's fortune

In 2008, AXE launched its most successful new variant of all time, the chocolate-scented ‘Dark Temptation’. However, two subsequent variant launches, ‘Twist’ and ‘Instinct’ had drastically failed to perform. The brand had lost its way and was losing relevance with its global audience, the confidence of its federation of markets and risked a lost generation of guys not experiencing The AXE Effect that would leave a hole in the brands fortunes for year to come. The brand needed a ‘global hit’. Turning the brand’s fortunes around meant moving away from the product-focused strategy inspired by ‘Dark Temptation’ and finding a fresh expression of the brand truth at the heart of The AXE Effect – Seduction.

In 2011, AXE Angels descended into all 100 AXE markets. Our campaign took a globally recognised, iconic representation of male fantasy and made the biggest claim possible: ‘AXE Excite is so irresistible, even angels will fall’. The result was the biggest uptake and activation of any creative idea in AXE’s history along with increased sales, increased brand relevance and a significantly profitable return on investment.

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Unilever in Brazil 1997-2007: Marketing Strategies for Low-Income Consumers – Case Solution

Unilever has an 81% market share in the Brazilian detergent powder market and has well established its name in the industry. It is looking into whether it is time to move away from its premium brands to target low-income consumers in Brazil. It is also considering product repositioning of its existing brands to forego launching a new brand. In either decision, Unilever is faced with challenges in pricing, promotion, and distribution strategies.

​Pedro Pacheco Guimaraes and Pierre Chandon Harvard Business Review ( INS615-PDF-ENG ) February 01, 2004

Case questions answered:

Case study questions answered in the first solution:

• Conduct a Five Cs analysis for Unilever Brazil.
• Should Unilever target the North East Brazil Market?
• Evaluate the various marketing strategies for low-income segments in NE Brazil for Unilever.
• What marketing mix strategy would you recommend? Address the following issues in the recommendation. Back up your recommendations using financial analysis.

Case study questions answered in the second solution:

• Should Unilever target the low-income segment of consumers in the Northeast of Brazil?
• Evaluate Unilever’s current brand portfolio. Is a new brand necessary to serve the low-income segment, or could Unilever reposition or extend one of its existing brands?
• If you were to introduce a new brand to serve the low-income segment, what would its positioning statement be?
• How would you design the marketing mix (product, price, promotion, and distribution) so that Unilever can create value for low-income consumers in the Northeast of Brazil?

Case study questions answered in the third solution:

• Should Unilever divert money from its premium brands to invest in a lower-margin segment of the market?
• Unilever already has three detergent brands with distinct positioning. Does it need to develop a new brand with a new value proposition, reposition its existing brands, or use a brand extension?
• What price, product, promotion, and distribution strategy would allow Unilever to deliver value to low-income consumers without cannibalizing its own premium brands too heavily?

Not the questions you were looking for? Submit your own questions & get answers .

Unilever in Brazil 1997-2007: Marketing Strategies for Low-Income Consumers Case Answers

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PART 1: Five C Analysis for Unilever in Brazil

Unilever aims to target customers coming from low-income households living in North East (NE) Brazil, earning at most two times the minimum monthly wage. Most of the families living in the region do not own a washing machine and thus engage in hand washing the clothes.

The women in these families attach a symbolic value to cleanliness & take great pride in making sure the family wears clean clothes daily. Hailing mostly from working-class families, their fabric cleaner requirements are quite different from the other mid-income and high-income families.

They work in tough environments and wash their clothes regularly(almost five times a week). Hence, there is a need for a powerful laundry soap to remove stains from the collar and sleeves.

The process of washing clothes in the region involves handwashing using laundry soap, followed by bleach and detergents, to add a pleasant smell.

Keeping in mind the needs and washing habits of this customer segment, a product that delivers high on the following mentioned factors would give them a desirable return on their investment.

• Low price point
• Cleaning and whitening effectiveness
• Pleasant perfume
• Ability to remove hard stains

Unilever is a USD 56 billion company headquartered in London and the Netherlands. The firm is a pioneer in Home Care products and started its operations in 1929. Unilever has firmly established itself as a leader in the detergent market and launched the first detergent powder OMO in Brazil.

The detergent category is the cash cow for Unilever in Brazil, providing fuel for growth in the food and personal care categories. Unilever has currently captured 81% market share in the detergent segment through its three brands: OMO, Minerva, and Camperio.

The firm is also an established player in the laundry soap segment, with a 19.1% market share through its Minerva brand.

Competition:

The cloth washing market in Brazil can be divided into two product categories:

1. Detergent Powder:

In the $106 million market (annual growth rate of 17%), Unilever’s OMO (priced at $3 per kg) is a market leader with an overall market share of 52%. It is followed by its second-largest brand, Minerva (priced at $2.4 per kg), with a 17% market share. P&G’s Ace and other detergent powders, priced similar to Minerva, own a 17% market share.

Both Ace and Bold, acquired by P&G in 1996, are perceived as superior quality products than Minerva by their customers. While Ace differentiates itself by offering superior whiteness, it is Bold that competes directly with Minerva- both in terms of pricing and positioning in the market.

In the low-cost segment, Unilever’s Campeiro has the biggest share of the overall market. It is closely followed by Invicto, which owns 5% of the detergent powder market and is a key competitor to Campeiro. P&G’s Pop is also an entry-level detergent powder with less than 1% market share. However, it is perceived to be a better product than Invicto.

2. Laundry Soap

The laundry soap in Northeast Brazil is valued at $102 million and is growing at an annual rate of 6% every year. Priced at $1.7 per kg, Unilever’s Minerva is the only single big player in this market and owns 19% of the overall market.

Bem-te-vi and Flora, priced at $1.2 per kg, own 11.3% and 6%, respectively, of the overall laundry soap market in the NE. The remaining 63.6% of the market is co-owned by multiple small and local players.

In terms of big competition, P&G is the single biggest player after Unilever in Brazil. Entering the market in 1988, it acquired the detergent businesses of Bombril and its three brands in the year 1996.

Currently, P&G owns a 17% market share in this category but is a real threat to Unilever because of its global expertise in marketing and R&D. It also has a better brand perception in both the mid and low-cost categories of detergent powder in the NortheastNortheast, which is a growing cause of concern for Unilever.

Brazil, with its population size of 170 million, is the second-largest country in Latin America. Its population is spread across two clusters: one group- 73 million, concentrated in the Southeast, and the other group- 48 million living in the Northeast.

65% of the population in the NE is a mix of African and European origins. Lifestyle, culture, and religion are all influenced by African culture. Music and humor are key elements of their culture and history.

In the last three decades, Brazil has experienced cycles of deep recession and strong economic recovery. The GDP grew by 8.1% per year during the “economic miracle” of the 70s but only by 2.6% per year during the 80s. During Fernando’s term as finance minister in 1995, initiatives like Plano Real led to strong economic recovery during the ”95-96 period.

As of 1996, per capita income in Brazil is $4420. Given the huge differences in employment generation and regional growth between the Northeast and Southeast, the per capita income in Brazil’s Southeast cluster is $6600 and $2250 in the Northeast.

Because modern Brazil’s economic and political power is firmly rooted in the Southeast, only 21% of the population lives on less than two minimum wages vs. 51% of the population in the Northeast.

The NE Brazil region, in general, lags behind its SE counterpart in most development indicators, including per capita income (2250 USD as against the SE average of 4420 USD) and illiteracy (40% as against the SE average of 15%).

Collaborators:

The sale of detergent and laundry soap products by Unilever is conducted via a wide network of generalist wholesalers, which primarily serve supermarkets and rely on secondary wholesalers to reach the smallest retail shops.

Since the target customer is most likely to buy the low-cost detergent through these small retail shops, Unilever could expand its reach by partnering with specialized distributors and exchanging information to incentivize them through assurances or extended benefits.

Unilever would also reap considerable benefits from building strong ties with small retailers as the consumers look them up for advice and financing.

PART 2: Should it target the NE Brazil market?

Unilever has been operating in the detergent segment in Brazil since 1957 and has become a leader in the industry. The company now seeks to expand its market share in the detergent business, for which exploring growth opportunities in NE Brazil is advisable. Unilever’s market share in the NE Brazil detergent segment, currently at 75%, is below their national average of 81%.

The region provides the immense potential to uncover value and gain market share, given the fast-growing consumption rates and the soap market’s fragmented nature. The NE Brazil region, if left untouched by Unilever, could be captured by its competitors, and therefore, it is imperative to achieve the country-specific targets.

Specifically, Unilever should focus its marketing efforts on low-income consumers in the NE Brazil region. The “Everyman” project conducted by the marketing team suggested that low-income consumers are keen to buy Unilever’s premium detergent brands but are restricted due to budget constraints.

Detergent soaps, which provide a relatively inexpensive alternative, are therefore used by most households for washing purposes. The cleaning process using soaps requires intense and sustained efforts and tends to leave a yellow tinge on the clothes. Also, the customers buy bleach to remove hard stains and a small amount of detergent to make clothes smell good.

With the overall positive perception of its premium brands among low-income consumers, Unilever should leverage its expertise in detergent production capabilities and market knowledge. It is to create a product that is deemed an effective cleanser and fits the customers’ budget constraints in the segment. The demand for such a product in the market is expected to be high. It should be capitalized upon by the firm.

Secondly, the detergent business line tailored for low-income consumers is expected to be profitable even though the margins on the associated products are low. Currently, Unilever markets three detergent products with different price points.

Unilever can redesign its cost structure with correct marketing efforts to achieve the margins necessary for earning profits. Also, the market for a low-cost detergent is set to grow considerably in the coming years, which further incentivizes the firm to pursue it.

The table below provides the market projections for non-premium detergents in NE Brazil. The analysis considers the following assumptions:

• The detergent market is expected to grow by 17%, while the laundry soap market is expected to grow by 6% annually. We are also assuming that these growth rates remain constant over the period of the next four years.
• The proportion of non-premium detergents in the overall segment remains the same.
• The firm would increase its market share in the non-premium market from 48% currently to 60% in 4 years.
• Low-cost detergent products would trigger a transition from the laundry soap market to the detergent market, leading to additional sales.
• The $ conversion factor from soap to detergent transition is assumed at 0.7, considering the increase in price points and a decrease in consumption, given the cleaning effectiveness of detergent over laundry soap.

Market size projections

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Unilever Case Study: Marketing Strategy of the Products

Introduction, strengths and opportunities, keys to success in the consumer product manufacturing industry, unilever’s strategies for competition in global markets, lessons learnt from unilever case study.

Unilever is a global company that deals with manufacture of consumer products. The company manufactures a wide range of products ranging from food to personal and home categories. The company’s engagement in production of different commodities has largely contributed to its growth in most parts of the world. The success of Unilever company relies on the ability to market its products and strategies to penetrate the market. This mainly involves proper marketing research and the need to meet customers’ requirements. Various aspects that contribute to the growth of Unilever as a consumer product company are discussed in the paper.

The growth of Unilever entirely depends on both the company’s internal and external analysis. The company’s prevalence in the consumer products market owes credit to the internal strengths and ability to utilize the opportunities in the outside environment. One of the major strengths for Unilever’s penetration in the global market is diversification of consumer products in markets all over the world. Diversification is the production of several varieties of goods with the aim of expansion to enjoy the market share of most product consumers in different regions (Graham, 2007).

The idea of diversification entitled the products managers in different regions with powers to make decisions on the marketing strategy of the products. This enabled proper distribution of products since the managers on the ground knew the most consumed products hence increasing its supplies in the regions. An additional strength of the company dwells in Unilever’s capability to foresee customers’ ways of product purchase and consumption of goods. This enables them to supply products according to market demand and needs of customers.

The ready market for consumer product purchase all over the world offers a great opportunity for Unilever company products. According to Fletcher (2010), new markets provide greater potential for an immense growth in product sales. Therefore, the introduction of Unilever products in new markets provides the opportunity for potential growth in sales. Such opportunities offer the advantages of enjoying the global market share of the product before other companies in the same category.

The success in consumer products industry owes credit to well planned marketing strategies, proper coordination between the internal and external factors of the company in the market share. Since the industry is very competitive, customer relationship also accounts for the growth and expansion in this industry. Consumer research is a vital subject for success in this industry. For the case of Unilever, extensive research is done to enable innovation of fresh products and improvement of existing products to fit the consumers’ needs. This involves rebranding and getting to customers in both local and international markets by smooth relations between the company and its customers. To achieve this, the company has to implement appropriate customer relationship management strategies (Waarts, 2005).

Implementation of culture difference strategy is another important factor towards success in consumer product industry. Unilever applies this strategy to penetrate into local markets. This contributes to expansion in different markets at a faster rate than companies that do not apply the strategy. The company combines this strategy with building correct leadership behavior to produce competent employees and managers. These produce responsible staff which engages in socio-cultural promotional programs in order to win the customers hence consumption of their products. Moreover, success in this industry requires efficient transformation in information technology (Hoskinsson, 2009). With the fast changing technology, companies need to keep track in order to apply e-commerce which enhances efficient and quick transactions between the consumers and the organization.

The main important strategy used by Unilever to compete for the market share in the industry is the global strategy. The strategy involves marketing of brands in local environments and maintaining the supply of similar products in these regions. The company also applies this strategy to produce new brands for marketing in different regions all over the world. This strategy is of benefit to the company since it improves the uniformity in the marketing operations at the same time building the product’s brand equity.

Unilever employs the cross- market strategy to succeed in getting customers from their competitors. This is done by providing their products in the market at a subsidized price which is normally lower than that of other competing companies. These strategies work for Unilever because most companies find it difficult to offer these services while maintaining high quality of products (Jones, 2002).

From the case study, it is observed that Unilever is a multinational company in production of consumer commodities. The ability of Unilever to use its strengths such as involvement in variety of products enables the company to utilize the available opportunities in expansion to international markets. Further more, the company’s strategies in market entry show that for success in such a business, one needs to use appropriate and effective marketing strategies in order to succeed in a competitive market (Fletcher, 2010). Therefore, it is important to plan well and carefully follow the appropriate strategies for success in the industry.

The success of Unilever in this category is based on the company’s marketing strategies. The ability of the company to introduce its commodities in new and emerging markets give it an advantage to grow in most parts of the world. The growth of the company is also observed as a result of its engagement in manufacture of different products. These strategies teach us the importance of well planned market strategies and the importance of diversification in brand marketing.

Fletcher, C. (2010). Unilever’s volume beats estimates, aided by Europe. Business Week, 6. Web.

Graham, J. L., & Cateora, R. P. (2007). International marketing . London: McGraw-Hill.

Hoskinsson, R. E., Ireland, D. R., & Hitt, A. M. (2009). Strategic management: competitiveness and globalization: Concepts & cases . Cambridge: Cengage Learning.

Jones, G. (2002). Control, performance, and knowledge transfers in large multinationals: Unilever in the United States. Business History Review, 76 (43-45).

Waarts, E. (2005). Competition as an inspirational marketing tool. European Business Forum , 12 ,(3-6).

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Edexcel A Level Business Case Studies 1.3.5 Marketing Strategy

Subject: Business and finance

Age range: 16+

Resource type: Worksheet/Activity

Last updated

8 September 2024

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A series of 10 case studies for Edexcel A Level Business Studies 1.3.5 Marketing Strategy including:

a) The product life cycle b) Extension strategies: o product o promotion c) Boston Matrix and the product portfolio d) Marketing strategies appropriate for different types of market: o mass markets o niche markets o business to business (B2B) and business to consumer (B2C) marketing e) Consumer behaviour – how businesses develop customer loyalty

Each case study contains key points to consider and key discussion points along with a mark scheme and answer structure guidance following the PeCAN-PiE and AJIM models.

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Marketing & Communications Free Guide Aims to Help Agencies Eliminate Greenwashing

Published 2 months ago. About a 3 minute read. Image: Pavel Danilyuk

Creatives for Climate’s ‘Anti-Greenwash Guide’ is designed to help ad and communications agencies comply with the latest greenwashing laws, and principles to guide them away from misleading and unsubstantiated sustainability-related claims.

Global NGO Creatives for Climate has launched a free first-of-its-kind guide, The Anti-Greenwash Guide for Agency Leaders , to help agency leaders respond to the ever-growing regulatory changes against greenwashing at Creatives for Climate’s inaugural Ethical Agency Summit in Amsterdam earlier this month.

Hot on the heels of UN Secretary-General António Guterres’ recent call for news and tech media to stop enabling “planetary destruction” by taking fossil-fuel advertising money and Edinburgh ’s City Council becoming the latest local government to ban ads for fossil fuels and other high-carbon products, the Anti-Greenwash Guide covers the latest in regulatory frameworks, helpful tips for agencies to move away from inadvertent greenwashing (including a pull-out “How Not to Greenwash” checklist ), and principles to guide agencies away from misleading and unsubstantiated sustainability-related claims in communications campaigns.

There are also a variety of settled and active case studies of greenwashing from marketing campaigns of global brands including HSBC , KLM , Oatly , Primark and Unilever — as well as examples of how to drive positive change at scale.

Communicating complex, unfamiliar sustainability claims on CPG packaging

Join us as Applegate and HowGood share insights into marketing lessons, consumer response and understanding, and marketplace data on the expression and communication of new categories of sustainability claims on CPG packaging - as well as tips for avoiding consumer and industry backlash and controversy - Wed, Oct. 16, at SB'24 San Diego.

“Given the increasing regulatory changes, many agencies are struggling to keep up with the fast-changing laws. However, skirting the rules is the minimum standard and should not be the ultimate goal when aiming to create impactful campaigns that reflect the true nature of the climate crisis,” said founder and CEO Lucy von Sturmer , founder and CEO of Creatives for Climate — whose anti-greenwash resources for creatives also include its Greenwash Watch Course and Greenwash Swatch tool. “This guide is designed to raise awareness about eliminating greenwashing and protecting agencies, which we hope will achieve greater transformation to steer the industry in the right direction.”

An exponential rise in legal and regulatory action against greenwashing has occurred in the last two years and greenwashing litigation is expected to continue to grow in 2024 . The Anti-Greenwash Guide for Agency Leaders details examples of legislation being introduced to clarify key terms, and specify what types of claims are unlawful and which require further evidence.

"An anti-greenwash guide is such a helpful resource to guide us through the complexities of communicating environmental messaging; the stakes are too high not to get it right,” said Luke Purdy , Director of Sustainability at creative agency Wieden+Kennedy . “Our reach and potential for impact at Wieden+Kennedy and the industry as a whole is huge, which is why it is so vital that we're as responsible as we can be with the influence we wield. It matters what we say and how we say it.”

The guide also lists the latest regulatory frameworks addressing greenwashing from across the globe — in Australia , Singapore , Europe , the US and UK — and summarizes them for readers.

“Agencies can land themselves in hot water if their campaigns fail to comply with anti-greenwashing laws and regulations, as shown by recent legal action involving global brands,” said Jonathan White , climate lawyer at ClientEarth , who acted as an advisor on the development of the Guide. “This intensifying legal scrutiny means that adhering to the latest rules is only the bare minimum. Full and frank treatment of the facts through conscious and accurate messaging is the way forward.”

Published Jun 21, 2024 2pm EDT / 11am PDT / 7pm BST / 8pm CEST

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