Marketing Function in FMCG Environment Brand Building

The Role of Marketing in FMCG Environment

The FMCG market is particularly competitive

Category Leadership

Greater Profitability

Higher Investment

Growth

The Role of Marketing in FMCG Environment

The KEY decision outputs recorded are:
Market definition / segmentation Category/Brand vision Category drivers of value Business goals Brand/portfolio roles
Where we will compete, where not and why Our future intention of what we will be Where our growth will come from Our business target, growth, share or margin Positioning, roles and strategy for the total brand portfolio (global and key regional / local brands) The main strategic actions / objectives / by channel or global strategic Customer How we will win, through specific actions and developing capability: innovation, communication, HR, resource priorities, etc. Metrics and milestones to track progress Must-stops and dont starts How we will act as a team, our category culture What might destroy our plans

Strategic actions
Detailed strategies / capabilities Targets / measures What we will not do Team behaviour / culture Key risks

Developing a Marketing Strategy for FMCG

Case Study:

How familiar are you with the Unilever 6Ps Model?

Market dynamics & financial returns Profit Turnover Price Volume Value market size Market growth Volume market size Volume share Value share

Buying behaviour Loyalty Penetration Share of purchase Average pack size Purchase frequency

6P's (brand levers)

Place
Distribution Visibility Number of lines Share of staff

Proposition
Consumer attitude Brand health 360 comms Brand investment ROI Competitor activity

Promotion
ROI Depth of discount Number of promotions Compliance Competitor activity

Pack
On shelf impact Variant difftiation Perceived quality Competitor impact

Price
Price elasticity Competitor pricing Value pricing

Product
Performance vs. claims Performance vs. competition

Completed 6Ps Detective Worksheet for Magnum case study

Surface Issue Magnum core variants losing share of multipacks market

Volume in market Market Dynamics & Financials

Magnum volume down Market volume growing

Value in market
Magnum value down Dilution of category profitability

Price in market
Magnum at Every Day Low Price Magnum price 25% below Choc Snack segment price ceiling

Internal financials
Margin hit if extra heavy promotions appear

Who? Buying Behaviour

Savvy seekers segment

What?
Switching to competitor Choc Snack brands

When?
Switching driven by competitor promotional activity

Where?
All grocery retail, especially Tesco & Asda

Place 6P Brand Levers

65% distribution

Proposition

Promotion

Place

Price
Price not in line with premium positioning in the market

Product
Superior chocolate quality in blind tasting

90% aided Losing awareness promotional Falling slots to Conviction Cadbury score benefit?

WHY?

No issues

Root Issue

Declining loyalty to Magnum amongst Savvy Seeker group due to stronger competitor promotional activity and perceived lack of Magnum unique benefits

Category/Brand Stewardship:

Cif significant media investment

Redefine cream segment and our leadership

Enter and own new specialist segments

Continue building premium/trigger segment

Brand Development

Brand Building

Customer Marketing

Interrelations between Departments/Functions

Brief for a Home Task

Select any of Unilever active brands and produce a Marketing Plan for a New product (e.g. new Tea or new Deodorant) Contents of Marketing Plan can be found in Handouts; Award: - possibility to win a SHADOW DAY within Unilever Marketing; - possibility to get an Internship in Unilever Marketing;

Deadline:

June, 1st

E-mail to: jevgenija.glazunova@unilever.com

Thank You and Welcome to Unilever!

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