You are on page 1of 68

Chapter 1: Research profile

Part 1.1 Objectives or aim of Research


The main objectives of this research are:1. To analyze the presence and the success of Unilever market worldwide and Singapore with the help of secondary data; 2. To analyze the performance Unilever existing products such as its shampoos, soaps, and beauty products etc in terms of products usage, media used for advertising, distribution channel, price and quality; 3. To understand the consumer buying behavior, preferences, and attitudes on low involvement products. 4. To analyses its latest products in terms of marketing communication , effectiveness , buying intent and Product Uniqueness Here, both programmatic and evaluative research was used concurrently.

Part 1.2 Research Methodology


Two types of data were collected for this research:

1. Primary data obtainable from


Personal visits to different shops like Watsons, Shop N Save, Cold Storage, Mustafa, and Shang song and neighborhood stores Surveys, questionnaires and interviews Direct observations

1 Secondary data obtainable from:


1

a. Singapore library b. Informatics libraries c. Singapore Institute of Management d. Journals e. Internet f. Magazines g. Newspapers h. Brochures i. Pamphlets

One

set of questionnaire was set for respondent to answer few questions

on Unilever products and its competitors. The research is conducted in March 2010. Sample size of 110 respondents were interviewed for this research. After all the respondent were had been interviewed, Following research techniques were used:

1. Tabulation of tables and figures


2. Interpretation of Data and from survey conducted. The details of the findings would be discussed further in Chapter 5. A pilot test was carried out first. A amendment were made on questionnaire before the actual survey was done .

Part 1.3 Limitation of Research


2

During the research, there were few problems and limitations that I encountered. They were as follows: 1. Problems that relates to reliability and validity of the respondent replies. 2. Difficulties to describe the product concept accurately in a short written statement. 3. Consumers were unpredictable and their preferences change time to time Even products that are competitive can affect the degree of predictive validity. 4. As a result of out of 130 questionnaires, only 110 replied. 5. Supermarkets refused to grant permission to record their retail prices of Unilever and its competitors products. 6. Not at all questionnaires were answered completely by the respondents. 7. Difficulty to question respondent via telephone, e-mail and other medium of exchange.

Nevertheless, the value of the research conducted surpassed the limitations mentioned above. The values are summarized below:
3

1. Consumers buying behavior, preferences, attitudes and habits, especially for low involvement products such as shampoos, soaps and sanitary napkins were discussed and analyzed. 2. I am able to know the most used shampoos , soap and beauty products brand by consumers. 3. The various successful marketing techniques used by Unilever that enabled it to be the market leader in FMCGs globally.

Part 1.4 Further Research


Further research could be done in areas that I could not proceed study due to cost and time constraints. They were: 1. We could segment the survey to reach the different peoples of different countries. 2. We could survey the different zone areas in Singapore. 3. We could survey other Unilever products that were not included in the questionnaire such as Ben & Jerry , Knorr , Walls ice-cream and other products .

CHAPTER 2
Part 2.1 Fast moving consumer goods (FMCGs)
4

FMCG industry is a growing industry with high potential rate of returns. There are numerous FMCGs such as P & G, Kao Corporation, Colgate & Palmolive etc. In the year 1998 alone, P & G earned $37. 15 billions of profits while its arch Unilever earned $ 37.15 billion of profits while its arch rival Unilever earned $ 44.98 billion, (Hoovers Handbook of world Business, 2000). Philip Morris, well known cigar distributor has diversified its operation into food and beer products by acquiring Kraft General Foods & Miller Brewing respectively to earn a slice of what other FMCGs companies are having and in 1998 alone, it earned $78.59 billion of profits. FMCGs industry has a huge market with billions of consumers worldwide. The products under this market include toiletries, foods, beverages and households. As they generally constituted the daily necessities of consumer needs, there are always a demand for them though FMCGs generally have elastic demand ( elastic demand happened when an increased in price of product A would bring about an increased in demand for product B, ceteris paribus at which product A is a substitute of product B, vice versa). US dominated the FMCGs industry as most of the products are produced and distributed from there to rest of the world. Besides US, Japans kao corporation FMCGs manufacturer is also gaining acceptance from other countries.

Part 2.2 - Low Involvement Purchase


Involvement is the degree of personal relevance that a purchase holds for the consumer. (Hana & Woziak, 2001). In a low involvement purchase decision, consumer spends less time in product or service information search as pieces of information are picked up at random and the decision
5

making process is faster. As it constitutes only a small part of consumers income, the purchase decision is usually made on impulse. In contrast with involvement and the decision making process is slower. In short, consumer is more aroused in high involvement compared to low involvement purchase. Low involvement purchase includes products like toiletries and food; and services like laundry and haircut. The pricing is usually elastic and of low switching costs. At Unilever, its products are generally of low involvement purchases such as toiletries, foodstuffs, household items and hair saloon services.

Part 2.3 Branding


Branding of a product is a long term vision. There are product brands and service or trade brands. Products brands are such as Xerox, Canon and Fuji. Service brands are such as Visa, Marriott, and Harvard. Unileivers products brands include Lux, Dove, Nestle, PepsiCo, and Himalaya.

The functions of branding a product to a

1. Manufacture are to :
i) ii) Capture clientele of a targeted brand. Personalize the product.

iii) Incorporate the product among others.

iv) Identify the product source. v) Indicate the manufacturer.

2. Customers are for :


i) ii) iii) iv) v) vi) Recognition cue. Practicality of choice. Guarantee of quality. Personalising one choice. Optimization of choice, sign of high quality performance. Permanence, bonding, familiarity relationship.

vii) Pleasure or hedonistic; viii) Ethics and social responsibility.

Part 2.4- Chameleon Brands


At Unilever, it extensively used individual product branding and product line branding. To capture a larger share of the consumer market, it used individual product branding for its multiple washing powder products such as Rin, Surf excel, Wheel, Radiant and product line branding for its skin care product such as Nivea. Its successful branding strategies enable itself to be the market leader in FMCGs markets. Unilever mega brand such as Kotex sanitary napkins, Surf Excel and Rin detergents, Dove , Ponds , Wheel , Fair & Lovely ,Vaseline and Aviance beauty care products generate over a billion dollars in sales each year. I consider its top brands as Chameleon brands . This is because

Advantages of Chameleon Brands


a. consistent core b. adapt to different target audience needs

c. adapt to different media d. retain there shape but vary there colour e. Chameleon brands are likely to be multi- product and multi variant f. Fit naturally into a wide variety of situations g. Blend into their surrounding and have flexibility required to take on more roles and guises .

Top 10 Brands of Unilever are

1. Dove 2. Lux 3. Knorr 4. Mazola 5. Quality walls 6. Hellmanns 7. Lipton 8. Skippy 9. Surf Excel 10. Fair & Lovely

Part 2.5- Reason for Failure of Brands

On other hand, Unilever had a few of its weak brands eliminated like the Unilever Suave Detangling Spray. A Brand will die, (journal of business strategy, Jan 2007) because of the following reasons: 1. Head on collision An existing Brand dies when a new competitor enters the market with a unique product to compete. However, it is avoidable if company establishes a system to monitor the brand, its equity and its competitiveness.

2. Public Launching
Brand dies from poor launching crisis management if company has a poorly defined and unrealistic crisis management program in hand.

3. Solitary Confinement
A brand will die if allowed to grow alone. However, if company seeks joint ventures and co-branding oppurtunities, it will increase market share and increase geographic and segment reach. 4. Starvation A brand will die from lack of exposure. However, it is avoidable if company ensures that both product and communication are focusing on right message related through appropriate channels while managing the fund for effective marketing communications adequately.

5. Old age

10

Great products need reinvigoration. A company can update communications and positions strategies to ensure market place relevance. Without a new tone and mode of communication with an updated visual system and logo can lead to brand death. 6. Poisoning A brand will die if consumer product expectations do not align with the reality of the experience. Hence, it is avoidable if company understands the brand value and protects the brand image.

7. Celibacy
Procreation is advantageous to any brand, if handles appropriately. Line extension can increase the life expectancy and brand value by actively addressing customers changing needs. 8. Over population A brand will die if its took over populated because extending a brand beyond its meaning and relevance can cause it to lose significance and emotional value. However, it is avoidable if company ensures that brand extension opportunities are properly researched and controlled. 9. Getting Lost A brand will die if company makes changes that confuse and destroy the brands identity in the market place without taking readings and ensuring that each changes is strengthening its core identity.

Part 2.6 Buyer Behaviour


11

Buyer behaviour or consumer behaviour is defined as the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products, services, and ideas, (Schiff man & Karuk). It is simply a product or service purchasing process of a consumer from acquiring of information, buying and to the using or disposing of it while expecting that it will satisfy their needs within their available resources. The purpose of studying consumer is to enable marketers to understand.

1. What Consumers Buy? 2. Why Consumers Buy it? 3. Who influence consumers to buy it? 4. Where consumers buy it? 5. How often consumers but it? 6. How often consumers use it? 7. How consumers dispose of their purchases? (Eg. Do they store, rent, throw, lent out or give away their purchases.)
In gaining consumer market share here, Unilever needs to understand Singapore consumer behaviour which include their media habits, social value, cultural differences, buying habits, and purchasing power. Understanding their behaviour is important in deciding and determining the way P & G should market its product in Singapore effectively and efficiently while maximizing profits at the same time. Buyer behaviour has become an integral part of strategic marketing planning. In Singapore, consumer decision making process portrays either a cognitive view or/and emotional view. They will try to fulfil their needs and desires by actively searching for products or services before making a satisfactory
12

decision on their purchasers; evaluating and seeking a product or service information. There are Singaporean consumers who are emotional or impulsive buyers. They might purchase expensive designer clothes because of status labels and not of fashion trends or comfortable wearing. Hence, SingTel, a Singapore telecommunications service provider used emotional appeals for its IDDs call advertising and other products to attract Singapore consumers more often. Another example is the positioning of Starbucks coffee as it appeals to those seeking for companionship.

Other consumer behaviour of Singaporeans is as follows:


1. Singaporeans are active shoppers During the Asian economic

crisis in 2008, they still could spent though they tried not to overspend. This was due to their high purchasing power results from Singapore favourable economic environment, sound monetary policies and good governance. The Singaporeans enjoyed window shopping especially the females. ( Kau, Tan & Wirtz, 2008) 2. Singaporeans of multi-cultural society with rapid improvement in

education levels particularly and increasingly work force participation rates might demand more quality products that reflect their affluent lifestyle. Sophisticated products will gain major market share here. On the other hand, working women would demand goods that were convenience to them. 3. Singaporeans have become individualistic as they want to

differentiate themselves from rest. 4. Singaporeans have become more brand conscious. They associated

brand with quality and status.

13

5.

Singaporeans have become more health conscious too. Healthy diet

was their main priority. They were willing to spend money on health products though; they do sometimes buy them from Malaysia where costs are much cheaper. According to Kau-Tan, and Wirtz (2007), majority of Singaporeans they surveyed prioritized health as the most important things in life. 6. Singaporeans have become more discerning. They demanded specific

and accurate information on the products packaging and labelling. 7. They supported environmental issues Singapore government had

organized campaigns called the Clean and Green Week and introduces the Green labelling system that sets guidelines pertaining to the manufacture. Distribution , usage, and disposal of products to educate them. Besides that, the Singapore retailers association and the waste Minimisation Department are increasing their efforts to create consumer awareness of green issues. 8. Singaporeans are pricing conscious especially of those lower

household of income groups. 9. Cultural Beliefs, sensitivities and superstitions are important in

Singapore. For example, sex appeal advertising is not advisable. 10. Speed is important to Singaporeans as they wanted things to be done fast. Hence, cold storage and NTUC fair price offered products via Televise as to pull them to their stores for their routine shopping. 11. Singaporeans favourite TV programmes are comedies and movies and they also read more of the Strait time and the New Paper compared to the Chinese, Malay and Tamil newspaper, ( Kau, Tan & Wirtz, 1998)
14

Understanding buyer behaviour is an art and it is a complex and individualized issues. It can be tedious to understand and predict buyer behaviour as it is involved people and people always practically desire something. Hence, uncertainty will arise. Thames Consultants Consumer behaviour lecture notes outlined the following factors that affect or influence in their buying processes such as : cultural, sociological, economic, and psychological issues.

Part 2.7 -MARKETING COMMUNICATIONMarketing communication is an important marketing tool to both profit and non-profit organisations. I would define marketing communication as a process whereby organisation seeks to convey its product messages to consumers in terms of its product existence or availability in the market with the intension of creating awareness, knowledge, preferences and purchase intensions. Producing a quality product without a good marketing communication strategy would not guarantee sales return. Hence, with successful and effective marketing communications, consumers are wellinformed about the products description and its availability. Thus, they are encouraged to buy and use the product and repeat purchase whenever needed. This cycle would ensure earnings for the organisations. The most common communication tools used by organisations to deliver their products to the consumers in the market are advertising, sales promotion, personal selling, public relations and direct marketing at which the combination use of all these tools result in integrated marketing communication(IMC). American Association of Advertising Agency defines IMC as a concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles. It involves co-ordinating the various promotion elements such as sales
15

promotion, personal selling, public relations, advertising and direct marketing and other marketing activities that communicate with firms consumers, (E.Belch & A. Belch, 1999). At Unilever, it successfully implemented its IMC programs on its products worldwide, hence enabling itself to be one of the most powerful FMCGs multinational companies in the world.

CHAPTER 3 Unilever History and Worldwide Operation Part 3.1- Unilever History
16

Unilever was founded in 1930 by joining British soap maker Lever Bro. and Dutch margarine producer Margarine Unie , It was a merger as palm oil was important raw material for both soap and margarine. In 1930s Unilever business grow and new products were launch in Latin America. In 1972 Unilever purchase a Canadian restaurant chain but soon it sold the shares through management buyout to former food service of Canada. In 1980 the soap and edible fat only contribute 40% profit, Compared with current 90 %. In 1984 Unilever bought Brooke bond In 1987 Unilever strengthened its position in the world skin care market by acquiring Chesebrough-Ponds, the maker of Raga, Pond's, Aqua-Net, Nail Polish, and Vaseline. In 1989 Unilever bought Calvin Klein Cosmetics, Faberge, and Elizabeth Arden, but the latter was later sold (in 2000) to FFI Fragrances. In 1996 Unilever purchased Helene Curtis Industries, giving the company "a powerful new presence in the United States shampoo and deodorant market. The purchase brought Unilever the Suave and Finesse hair-care product brands and Degree deodorant brand. During 1950s Unilever start new products like frozen food and soup , icecream , tea and other product . It also started manufacturing personal care products like toothpaste, soaps , deodorant , shampoos etc. In Europe unilever food business spread very fast from fishing fleet to retail soap. In the unilever ancillary service company include Shipping, paper, packaging, plastics and market researching. Unilever also started their own trading company which was names United Africa Company, which was started for import and exporting Unilever Products in Africa. In beginning of 1950s Unilever started investing heavily in manufacturing, mainly in textile and brewing. The United Africa Co. employed almost about 70000 people in 1970s. Unilever was largest business enterprise in Africa in 1970s. The all 3 Unilevers total
17

employment was about 350,000 people in 1975 , or we can say seven time larger than Proctor & Gamble , The main rival of Unilever in US. Unilever ended 20th century by strategic plan which consist of Main focus on there top brands within the market sector and to emphasis on more growth in developing countries. Although Unilever face considerable competition pressure in the Market from Proctor & Gamble . But Unilever is clearly no longer risk averse organisation of past. The Events of 1990s destined the unilever to position as one of the most formidable Global Consumer Product company of 21st century.

Important timeline:
1920's
With businesses expanding fast, companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge - and so Unilever is created. 1940's Unilever's operations around the world begin to fragment, but the business continues to expand further into the foods market and increase investment in research and development. 1960's As the world economy expands, so does Unilever and it sets about developing new products, entering new markets and running a highly ambitious acquisition programme. 1980's Unilever is now one of the world's biggest companies, but takes the decision to focus its portfolio, and rationalise its businesses to focus on
18

core products and brands. 1990's The business expands into Central and Eastern Europe and further sharpens its focus on fewer product categories, leading to the sale or withdrawal of two-thirds of its brands. The 21st century The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st century consumers with its Vitality mission.

Part 3.2 - Various Products and Revenue Earn by Unilever


The Unilever majority revenue of 52 % is generated by food sectors which include Lipton tea , Ragu foods , Imperial and Promise margarines , Birds Eye and Gortons frozen foods and Ice cream brand. About 25 % of sales of Unilever is from Personal care Products like Dove, Pears, Ponds, Degree, Faberge and Salon hair care items. Close-Up, Mentadent, and Peps dent oral care products, and Calvin Klein, Elizabeth Arden, and Elizabeth Taylor prestige well as such miscellaneous brands as Q-Tips and Vaseline. Unilever's third major sector is that of cleaning products, which is responsible for about 22 % of turnover; brands include Wisk and All laundry detergents, Snuggle and Final Touch fabric softeners, and Sunlight dish detergents, and this area also includes the company's line of institutional cleaning products. Unilever maintains production facilities in 88 countries and sells its products in an additional 70. About 47 % of revenues originate in Europe, 21 % in North America, 14 % in the AsiaPacific region, 12 % in Latin America, and six % in Africa and the Middle East.

19

Main Products Of Unilever


1. Ice Cream Brand = Ben & Jerry, Quality Walls , Heart Brand Ice creams 2. Soap Brands = Lux , Dove , Lifebuoy, Pears ,Breeze 3. Toothpaste = Close Up , Pepsodent , Anchor etc. 4. Tea and Coffee Brands = Lipton Tea , Brooke Bond Tea , Bru Coffee etc. 5. Detergent Brands = Surf Excel , Rin , Wheel 6. Beauty Care Brand = Ponds , Vaseline , Fair & Lovely , Lakme Beauty products 7. Shampoos = Clinic Plus , Clinic All Clear , Sunsilk and Lux 8. Food products = Kissan Jams and Squash , Annapurna Salt ,Knorr 9. Other Products = Pure it Water Purifier , TIGI , Axe , Rexona

Part 3.3- MISSION and Vision of Unilever


a. Mission
The main mission of Unilever is to provide high value and high quality products and services to customers and to try to improve the consumer life. This mission was very successful and customers rewarded Unilever with leadership in sales, profit and in values as compares to Unilever competitors in which Consumer live and work .

b.

VISION of UNILEVER
20

While setting up the vision for company following points should be consider

Realistic: A vision must be realistic and nature and must have some meaning for the company. Credible: A vision must be convincing to the people. Mainly , to the workforce and members of the company. If employees of Unilever do not think vision is credible then they cant work to full potential.

Attractive: If the vision of Unilever is to inspire and motivate the workforce in the company then it must be attractive. Vision should be like this that more and more People want to be part of the company .

Future
The vision is not for the present, it is mainly for the future. In this respect, the image of the leader seeing off into the distance to create a vision may A vision is not where you are now, it's where you

want to be in the future


We also conclude by Reviewing Unilever Mission statement and there strategic management that Unilever is one of the leaders in FMCGs industry and it maintain success by widening or increasing their products worldwide. The mission statement of Unilever shows that all employees, HR department and customers are most important asset for Unilever. By doing research on Unilever Strategic Management Process I conclude that Unilever is successful in making Healthy relationship with government , retail customers and other authorities., retailer customers and other authorities.

Part 3 .4 - Unilever Operation Worldwide

21

Unilever is huge success in maintaining its position in the market both locally as well as globally. The Unilever has $50 billion empire with about 250 brands marketed to about 5.5 Billion customers in over 147 countries. Unilever products can be find in bathroom , baby room, kitchen , medicine cabinet and in cosmetic tray. With the capability of developing , manufacturing and marketing its products , Unilever has won various Awards such as : Company of the year 2010 100 best managed companies Second Harvest Unilever ranked 7 t h in Global 100 most Sustainable Corporation in World , A list made by Corporate Knights Magazine Food Industry Leader in Dow jones world Index for 12 years

Running Distinguished Company of the year By National Alliance of Business

Global Operation
Unilever operates worldwide. Unilever has it offices in Singapore , Malaysia ,India ,China , Australia ,Japan , Mexico , France , Russia , Turkey , USA , Caribbean and many more. Its worldwide earning as on financial year ended in 2010 was $ 65. Billion. With net earnings of $ 11.2 billion . The global operation of Unilever was ranked in Top 1000 Global earning companies in Germany, UK, France, India and Italy .

22

The completive edge of Unilever globally is due to Following: Efficient Work Force

Unilever has built knowledgeable or experience workforce through continuing recruitment internship ,Training and Development programmes. Unilever also reward , compensate and provide benefits to its employees for their work performance.

Effective Implementation of marketing strategies

At Unilever, it stresses on satisfying customers wants and needs, long term profitability, integration of marketing and other organizational activities. Its success in FMCGs market and ability to gain competitive edge over its competitors like Colgate Palmolive, Kao, Amway, and many others are due to its marketing expertise. Unilever marketing strategies are successfully managed in terms of product, pricing, promotion and distribution channel areas, both locally and globally. In terms of managing its product, pricing, promotion and distribution channel areas, both locally and globally. In terms of managing its product 1. It has a product

Product mix width of about 14 lines: detergents, tooth pastes, mouthwash, bar soaps, paper tissues, disposable diapers, personal hygiene products, household cleaning, beverages, food, hair care products, cosmetics, beauty care products and health care products, and its recent new product line pet foods, Iams and Eureka

23

2. It lengthens its product line by adding new product in its product mix by new product development, innovation or product acquisition such as assign PUR water filtration home system to its existing 300 products.

3.

It deepens its product assortment by adding more product variants to

each product in the lines such as its Pepsodent Tooth Paste that comes in Different sizes and 2 formulations regular and mint. From the global perspective, Unilever uses product adaptation strategy, that is, it alters, it alters the product to meet local market or preferences whenever necessary, unlike Gillett and Unilever who prefer to standardize globally or at least regionally as they are inspired by Professor Theodore Levitt of Harvard who wrote the following, The world is becoming a common market place in which people no matter where they live - desire the same products and life styles. Global companies must forget the idiosyncratic differences between countries and cultures and instead concentrate on satisfying universal drives, ( Kotler , 2007 , p414)

Part 3.5- Cultural Effects on Products


However, I felt that Levitt statement above is not applicable for certain types of situation. For example, the Arab and other Muslim countries might not desire the same products or lifestyles as the rest of the world would. They would not consume food that contained lard or use products that utilized hog during the manufacturing process. Besides, that, advertising and promotions using sex appeals are forbidden in Islamic countries like Malaysia. Muslim Laws forbid men to pierce their ears, wear silk clothes, and gold jewellery and these laws cannot be changed.
24

a. Another possible argument is that the consumers of Third World


Countries might not desire luxury products and lifestyles such as life insurance or Mercedes Benz as what they only wanted are the basic necessities such as food, shelter and clothing. This applies to famine countries too.

b. Some companies adapted their products to local beliefs or superstitions.


For example, the concept of fengshui or geomancy which means wind and water was well adapted by the famous Hyatt Hotels in its placements of office buildings and agreements of items within the building in its global operation.

c. Another example is the opium perfume. The sale of opium was very
successful in Europe but failed in China. The failure was due to historical and cultural contexts of the opium war whereby Hong Kong was offered to British.

d. Unilever believes in adapting product to the local conditions, tastes and


preferences which led them to gain competitive advantage. For example, the changed of Pampers Diapers to suit Japanese market needs.

e. With the examples given, I deduced that social and cultural contexts are
not universal. Through the world is a common market place in which people may desire global products with global standards, but it is not pertinent to countries that have strong belief in maintaining social and cultural values such as religions. Thus, global products must suits local taste.

25

f. A unique issue that I would like to highlight about Unilever in managing


its product cycle is that it does not believe in product life cycle. Its former chairman of board,

Part 3.6 Everyday Low Pricing Policy


Edward G Harness in a speech to the annual marketing meeting, conference board terms of managing its product price, Unilever imposes everyday low pricing policy (EDLP) which takes place at the retail level. By imposing the EDLP policy, Unilever gain competitive advantage over its competitors in following areas:

A)

Reduced inventory requirements

When constant pricing is practiced, it stabilizes demand, reduces required safety stocks and stocks out workable only if there is no promotion.

B)

More efficient use of personnel

This is possible as employees need not spend time re pricing items and manage the peak demand occasioned by a temporary price cut.

C)

Cost of advertising

Here, advertising can focus on product value and corporate image rather then price.

26

Part 3.7- Better Customer Relationship

This is possible as fewer stock outs lead to less dissatisfaction among customers and no low pricing means consumer would not be upset that prices were higher when she bought earlier. In terms of managing its product promotions, Unilever uses all the five promotional mix to deliver its products and messages to its customers. They are advertising, sales promotion, public relation, personal selling, and direct marketing. In short, Unilever uses the integrated marketing communication which encompasses elements like values driven; proposition mix relies heavily on pull strategy to create sales.

27

Below Diagram shows Unilever Promotion Network , Relying persistently on Pull Strategy

In terms of managing its distribution channels, Unilever chooses an intensive distribution strategy as it stocks its products on shelves of super markets and stores of various locations for easy access to its consumers. Its channel management focuses on one level channel,

28

that is, the distributors or retailers. Its major distribution is Wal mart. Its distributors world wide include super markets, shopping centres, and groceries stores. Unilever uses the shipment transportation of Geologists Corporation that provides multi model freight forwarding, customs brokerage, ware housing and distribution services, as well as logistics and supply chain management. Geologists is chosen among the others as it has about 170 countries in operations hence, easy tracking of shipments are possible via its Internet based Geo Vista system.

Part 3.8 - Managing Diversities


At Unilever, Diversity issues exist as the company is a multinational with about 200,000 employees, 5billion consumers and numerous worldwide competitors.

a) Unilever 200,000 employees


Through Unilever employees are of diverse backgrounds, races , religion and culture, it has maintained harmonious and friendly relationship with its employees for more than century .It holds workshops and various training programmes to educate managers about how to treat customers , what service should be provided etc.

b) Unilevers 5 billion customers


At Unilever, all 5 billion customers are also of diverse background, races, religions , culture and life style . It manages, caters and respects their needs and wants effectively. Below are some examples that show Unilever capability in managing its diverse customers worldwide:

China

29

As the hair follicle of Asians are Different from that of the European , Unilever adjusted its shampoo formulas which can suit their hairs , Hence earning over 50% of china market alone.

England
Unilever changed its wintergreen flavour of toothpaste when they realise that Britishers use winter mint in liniment , not in food or toothpaste .

Japan
Unilever has changed its low diversity formula to high density formula of its Surf excel detergent for application to the Japanese cold water temperature in very compact packages that had a space saving benefits for the Japanese consumers .

c) Diversified Competitors
Through Unilever has diversified competitor worldwide , Japan Shiseido, Kanebo and Kao France LOreal ; US Wal- Mart , Clorox , Avon ; Singapore UTC and NTUC fair price Products ; Malaysia Trojan and Axion. Unilever maintain the diversity background of its foreign local competitors effectively and efficiently thats leads itself to winning various awards .

Part 3.8 - Unilever Operation in Singapore


Unilever started its operation in Singapore in 1986. However Business Directory of Foreign Companies in Asian recorded that it commenced its operation in 1969 with 194 employees and turnover of about s$ 90 million. It office in Singapore is located at Shell House, #16-08, 83 Clemenceau Avenue, Singapore. Among the products marketed in Singapore are Lux ,
30

Dove , Lifebuoy, Pears ,Breeze , Clinic All Clear , Sun silk , Ben & Jerry , Quality Walls , Knorr , Surf Excel , Rin ETC. However, by personal visit to American Liberty and Guardian Market place. I discover that there were other products sold here such as toothpaste , cooking oil , paper towels, Detergent which are not listed in Unilever website. Unilever has large no of retailers in Singapore which include Shop & Save , NTUC Fair Price ,Cold storage , Cheers , 7 eleven stores , Watsons , Apex Pharmacy and Guardian Pharmacy personal stores ; Takashimaya , Iseten & CK Tang departmental stores and Even Petrol kiosks such as Shell , Mobil & Esso . In Singapore the Prices of Unilever products are generally cheaper or less than its biggest competitor products of Proctor & Gamble.

31

Chapter 4 COMPETITOR ANALYSIS


Part 4.1- Michael Porters 5 forcesToday business environment, analysing consumer behaviour is efficient to remain competitive in the market. Business must keep constantly keep tab on their competitors strategies like their products, prices, promotions, and contributions channels, including their business objectives, strengths, and movements. Analysing Unilevers competitors, Michael Porters 5 forces are used. 5 forces assist Unilever to analyse the nature and intensity of repetition in the FMCGs industry in term of: rivalry, bargaining power of customers, bargaining power of suppliers, and threat of new substitute product or service. Michael Porters competitive forces as applied to Unilever:

A) Threat of substitutesMost Unilever products have substitutes available in the market. The substitution rates are high as its products are generally the FMCGs and of low involvement product, hence, consumer buying decisions are simpler and faster. Pricing, positioning, packaging and quality played an important role in reducing the substitution rate besides branding. In Singapore, Unilever product substitution rates are high. For example, its Pantene
32

shampoo had many substitutes such as Organics, Walla, Clairol, St.Ives and Merit. Even Rejoice and Vidal Sassoon of which are Unilever products competed with Pantene shampoo.

B)

Threat of new entrants-

In Singapore, new entrants are possible especially those retailers producing their own products such as Watsons and NTUC Fair price. However, when compared to the States, it is more competitive there. Though high capital is needed when starting business in this industry, the availability of financial institutions and banks in Singapore are abundance. Besides, Singapore government latest moves are to make Singapore a financial hub. The threat of new entrants are moderate in Singapore but not in US. Hence, it is advisable for Unilever to maintain its market leader position by constantly improving its processes, product positioning, and product advertising.

C)

Bargaining power of suppliers-

In Singapore, the bargaining powers of suppliers are not 100% influential. This is because Unilever is the world market leader; hence, suppliers would be more than willing to oblige its requirements to benefit its own self. It would be better if Unilever could make its payment on time, give respect ant trust them, hence enabled itself to gain competitive power of suppliers are moderate in Singapore.

33

D) Bargaining power of buyerUnilever buyer comprises of the retailers and consumers. The bargaining power of retailers are quite strong as they represented a large portion of its sales .The possibility of backward integration by the retailers are quite high. In Singapore, NTUC Fair Price ant Watsons had started to sell their own brand names. In US, Wal-Mart has also started to sell their own products carrying their own brand names. For the consumers, the switching costs are relatively low as there are many products substitutes available in the market. They could have full information about Unilever and its products on the internet. Besides that, the distribution channels of FMCGs are extensive, hence consumers could buy the products without hassle and the presence of e-shopping (Internet) allowed them to purchase the products at any time and anywhere. As consumers are more knowledgeable and demanding, they wanted fast and quality products with value-pricing attached and high product performance.

E)

Intensity of rivalry among competitors-

Unilevers competitors are numerous in Singapore. They are Amway Dial, Pfizer, Playtex, Unilever, UIC, Johnson & Johnson, Estee Lauder and many others. The intensity of rivalry is great in Singapore. Even it distributors NTUC Fair price and Watsons compete head-to-head with Unilever products brand. The competitors also have good marketing and advertising skills. For example, Dove has the highest product usage for the skin care range. Unilever could differentiate itself from the competitors by performing social work and contributing money to the communities.

34

Part 4.2 - Ps comparison between P&G and Unilever


Besides the 5 forces, we need to analyse the marketing strategies like the 4Ps between P&G and its competitors. Unilever was chosen for comparison in this dissertation as it is P&Gs arch and worldwide competitors including Singapore.

A) ProductsBoth P&G and Unilever have varieties of products to offer to Singapore consumers. Among them are their shampoos, deodorants, soaps, and detergents products range. P&Gs Pantene & Unilevers organic shampoos are most saleable items in Singapore. However, Unilevers Dynamo detergent, Rexona deodorant, and Lux soap are familiar brands compared to P&Gs Tide, Secret and Camay. Hence, I would use the shampoo products to make the comparison instead. The result shows that Singaporeans prefer Pantene to organics. This could be due to the constant changes P&G has introduced in terms of packaging and product positioning and formula compared to Unilever.

B) PriceMajority of P&Gs products are priced much higher compared to Unilever. Hence by comparing the prices, P&G can use it to accordingly in its pricing strategy.

35

C)

Promotion-

P&G and Unilever are aggressive in its marketing promotions. Both are successful in creating brand image for their products. But Pantene has the highest usage rate in Singapore compared to organics when surveyed. By comparing their promotion strategies, it will enable them to determine the next move to launch more precise attacks for effective marketing mix strategy.

D)

Place-

Unilevers Organics, Lux, Rexona and Dynamo are available in the market extensively such as NTUC Fair Price, Cold Storage and Shop N Save supermarkets, and neighbourhood provision stores. On the other hand, P&Gs Tide, Secret, and Camay are only available in American Liberty, Jenson Marketplace, and other selected supermarkets except for its Pantene. Hence, the distribution channels for Unilever are wider for most o its products compared to P&G. To analyse competitors position in the industry, the need to apply Michael Porters 5 forces to the current business situation are vital. Besides that, competitors strengths, weaknesses, financial positions, movements and marketing strategies need to be examined too. It would be advantageous if competitors market-target strategy, technology position, and program positioning are being constantly tabbed as well. However, in this dissertation, it is not possible to analyse them due to material research constraint.

36

CHAPTER = 5
Result of the Survey
No of Survey Form Sent = 130 No of Survey Form Receive = 110

Part 5.1 - Demographic Information


Tabl e 5.1.1 Gender
Response Male Female Total Frequency 48 62 110 Frequency % 43.6 53.4 100

Comment : This question was ask to know who uses more Unilever products . Whether MALE or FEMALE . The result of survey was as expected. About 53.4 % of Female uses Unilever products whereas only 43.6% male uses Unilever products.

Males Fem ales

37

Table 5 .1.2 Age


Response Below 18 18 22 23 27 28 32 Total : Frequency 24 30 36 20 110 Frequency % 21.8 27.2 32.7 18.3 100

Comment: Respondent age The Unilever products have market for different age Groups. The highest frequency in Sample of 110 will be age group between 23 27 years old (32.7%), followed by 18 22 years old (27.2%) These two age group together formed 60% of the sample. The lowest frequency in sample is of age between 28 -32 which was only 18.3 %.

38

Part 5.2 - Consumer Buying Behaviour


Table 5.2.1 Are you aware about Unilever Company ? This question was asked as I need to know how many Singaporean knew the presence of Unilever Products , which are easily available in market. Response Yes No Not Sure Total: Frequency 93 12 5 110 Frequency % 84.5 10.9 4.5 100

Comment: From the above table, I deducted that 84.5% of sample size are aware of Unilever products, while only 15.4% of sample size is not aware about Unilever. As there are large no of respondent are aware of Unilever Products, I assume that Unilever promotion and Marketing strategies are successful.

39

Table 5.2.2 How did you aware of Unilever products? This Question was asked to know how all respondents are aware about Unilever Products.
Response Internet Friends Newspapers Others Total Frequency 42 26 37 5 110 Frequency % 38.1 23.6 33.6 4.7 100

Comment:
Most of the respondent were aware about Unilever products through Internet (38.1%) ; closely followed by Newspapers (33.6 %) ;about 23.6 % of respondent know about Unilever products through Friends and Only 4.7 % respondent are aware from other media. Overall we can conclude that Newspapers , Internet and Word of mouth are main media for Unilever to spread word about their Products.

40

Table 5.2.3 From which Advertising method you use to search for Unilever Products? This question is asked to determine which advertisement method of Unilever is most successful. Response Television Newspaper Internet Magazines Total : Comment: From above table I conclude that majority of respondent search about Unilever products through Newspapers (34.5%); Followed by Internet Media (27.3 %) ;closely followed by Television (23.6%) while only 14.6 % of respondent search by Magzines. Overall we can say that Internet and Newspaper are most successful advertisement Methods for Unilever . Frequency 26 38 30 16 110 Frequency% 23.6 34.5 27.3 14.6 100

Television Newspaper Internet Magzines

41

Table 5.2.4 How much is your income per month?


This question was asked to know that Average Month ly salary of resp ond ents.

Response Below S$1000 1000 - 2499 2500 - 4999 5000 and above Total :

Frequency 43 40 22 5 110

Frequency% 39 36.3 20 4.7 100

Comment: The above table show the result that majority of respondent has salary less then S$1000 as they are students (39%); This is closely follow by Respondents frequency whose salary is between 1000 2499 (36.3%); while 20 % of respondents has salary between 2500 2499 ; and only 4.7 % of respondents salary is above 5000.

S alary

Below 1000 1000-2499 2500-4999 5000 and above

42

Table 5.2.5 How much of your income you spend on Unilever products a month? (This question was asked to respondents to know how much money they spend on Unilever products every month.) Response Below S$50 50 - 99 100 - 149 150 and above Total: Frequency 33 49 20 8 110 Frequency % 30 44.5 18.2 7.3 100

Comment:
The above table tell the result about respondents spend money on Unilever products per month. By seeing the frequency of respondents in table we conclude that about 30 % of respondent spend average of S$ 50/ month ; while majority of respondents i.e. 44.5% spend S$ 50 99/month on Unilever products ; and about 18.2% of people spend S$ 100-149 / Month ; But only 7.3% of respondent spend more then S$150 in a month.

43

Table 5.2.6.

At the store what influence your purchasing decision?

(This question was ask to see what Factor affect the respondents while making Purchasing Decision) Response Price Quality Packaging Trial Total: Frequency 24 46 33 7 110 Frequency% 21.8 41.8 30 6.4 100

Comment:
This result shows the factors which mostly affect the customer while shopping. a. The result of this survey shows that majority of people(41.8%) purchase the products by keeping Good Quality in their mind . b. While 30 % of respondent purchase products by seeing outside Packaging. c. For 21.8% of customers proper pricing is very important . d. Only 6.4% of customer purchase product for trial purpose. e. Overall we can say that for success of any product in Market The Good QUALITY is very important.

44

Table 5.2.7 How often You use Unilever Products in a week ? (This question was asked as I want to determine the frequency of product usage by respondent.) Response Everyday 4 to 6 times a week 2 to 3 times a week Never Total Frequency 33 47 25 5 110 Frequency % 30 42.7 22.7 4.5 100

Comment:
The result of this question shows that Majority of respondents (42.7%) uses the Unilever product about 4 to 6 times a week; which is followed by 30 % of respondents which uses Unilever products Every day; this is followed by 22.7 % of sample who uses Unilever Products for 2 to 3 times in a week ; while only 4.5 % of respondent never uses Unilever product. Overall we can conclude that by combining Everyday User and 4 to 6 Times about 73% respondent uses almost every day.

45

Table 5.2.8 How will you rate the affordability prices of Products provided by Unilever? Response Very Expensive Expensive Average Cheap Very Cheap Total : Comment: The frequency of above Table shows what Respondents think about the Pricing Strategy of the Unilever Company. The Majority of 45.4 % of respondent or sample respond that Pricing of Unilever product is Average or Reasonable. ; which is followed by 31 % of respondent who think that Prices of Unilever Product is Expensive ; and 16.4 % of respondent reply that Unilever product price is Very Expensive and Only 7.2 % of sample say that Prices are Cheap. No one rated Unilever for Very Cheap. So Overall we suggest that the Unilever need to decrease the prices of their product little bit. So more customers
46

Frequency 18 34 50 8 0 110

Frequency % 16.4 31 45.4 7.2 0 100

purchase their products and More customer become satisfied from Unilever Pricing Strategy.

Table 4.2.9 What is your rating for packaging and presentation of Unilever Products?
(This question is ask to Sample to see what customers think about Packaging of Unilever Products)

Response Very good Good Average Poor Very Poor Total

Frequency 18 47 38 7 0 110

Frequency % 16.4 42.7 34.5 6.4 0 100

Comment:
This question was quoted to know how much customers are satisfied by Packaging and Presentation of Unilever Products. The result we get was Satisfactory The Majority of 42.7% respondent think that Packing and Presentation of Unilever is Good ; which is followed by 34.5% of respondent who think packaging is average or fine ;and 16.4 % think packaging and presentation is Very Good .But only 6.4 % of sample think it is Poor. So Overall we can conclude that about 90 % respondent are satisfied from Packaging and Presentation of Unilever Product.
47

\ Table 5.2.10 how did you find the new range of Beauty and health products of Unilever? (This question was ask to know the Opinions of people about New Beauty products .)
Response Very Good Good Average Poor Very poor Total : Frequency 12 38 43 13 4 110 Frequency % 11 34.5 39 12.7 3.8 100

Comment: The above table show the Opinion of respondent about Unilever new Beauty and Health Products. According to survey about 11 % of respondent say that New product are Very Good ; while 34.5 % reply that New Beauty product line are Good ; But Majority of respondent i.e. 39 % think that New Beauty products are Average ; while 12.7 % say it Poor and Only 3.8% reply new Beauty Product line as Very Poor.

48

Table 5.2.11 How do you prefer to do shop for products ?

Response Online Order Go to Retail Shop Order through Nearest shop Total

Frequency 37 59 14 110

Frequency % 33.6 53.6 12.8 100

Comment:
This question was asked as I wanted to determine the places from where People generally purchase Unilever Products. Majority of respondent i.e. 53.6% are shop Through Retail Stores. Retail stores include NTUC, Fair Price, Shop and Save ,Cold Storage etc. . Retail stores are followed by online order which is 33.6 % of respondent while only 12.8% of people purchase Unilever products from Nearest Provisional Stores. Unilever can use NTUC, Fair Price for its New products Promotion. Beside this Unilever need to ensure that stock should be replenished sufficiently as to optimise sales.

49

Table 5.2.12 Which company you think is biggest competitor of Unilever? (This question is asked to determine which biggest competitor of Unilever In market is.) Response Proctor and Gamble Nestle PepsiCo Himalaya Others Total Frequency 68 17 11 14 0 110 Frequency % 61.8 15.4 10 12.8 0 100

Comment :
The above table determine the result about Biggest Competitor of Unilever in Market. According to survey Result About 62 % of Respondent answer Proctor & Gamble as Biggest competitor of Unilever In market; while 15.4
50

% answer Himalaya Co. as Big competitor of Unilever: while 12.8 % answer Himalaya but Only 10% think that PepsiCo is Biggest Competitor. Overall we can conclude that Proctor & Gamble is Biggest competitor. And also P&G has sources and Power to take Market share from Unilever . To be Biggest Company the Unilever has to change its Marketing Strategy like to increase Promotion and Quality and to decrease Prices of their Products.

Competitors of Unilever

51

Table 5.2.13 Which skin care product of Unilever do you mostly use ?
Response Dove Lux Pears Lifebuoy Other Total Frequency 35 21 32 13 9 110 Frequency % 31.8 19.1 29.1 11.8 8.2 100

Comment:
This Question was asked to know what Skin Care product of Unilever Is Mostly Use by people. The survey result shows that 31.8 % of respondent use Dove ; While it is closely followed by Pears with 29.1% Users ; about 19.1 % respondent use Lux ; while only 11.8 % use Lifebouy And remaining 8.2% use other products like Camay , Olay etc. So the result shows that Dove and Pears are most Successful Skin care products of Unilever.

52

Table 5.2.14 Which Unilever Beauty care product you mostly use ?
Response Fair & Lovely Vaseline Aviance Ponds Total : Frequency 27 39 17 27 110 Frequency % 24.6 35.4 15.4 24.6 100

Comment: This Question was asked to know what Beauty Care product of Unilever Is Mostly Use by customers in Market. The survey result shows that 35.4% of respondent use Vaseline ; While it is followed by Fair &Lovely with 24.6% of Users ; and Frequency no of Users of Ponds Beauty Product is same as Fair & Lovely i.e. 24.6% ; While least Beauty product use by users is Aviance which is only 15.4%.

53

Table 5.2.15 Which Unilever washing detergent you mainly use?


Response Rin Surf Excel Wheel Radiant Total Frequency 33 36 24 17 110 Frequency% 30 32.7 21.8 15.5 100

Comment: This Question was asked to know which Detergent product of Unilever Is Mostly Use by people. The survey result shows that about 32.7 % of respondent use Surf Excel; While it is closely followed by Rin with 30% Users; about 21.8 % respondent use Wheel ; while only 15.5 % use Radiant

54

So the result shows that Surf Excel and Rin are most Successful Detergent products of Unilever

Table 5.2.16 how will you relate price of selected Unilever brands and its competitors? 16 (A) Skin Care Products
Response Dove a. Expensive (3) b. Reasonable (2) c. Cheap (1) Lux a. b. c. Pears a. b. c. Expensive (3) Reasonable (2) Cheap (1) 46 61 3 11 53 55 41.8 55.4 2.8 10 48.1 Expensive (3) Reasonable (2) Cheap (1) 17 48 45 15.4 43.6 41 68 33 8 61.8 30 7.2 Frequency Frequency %

Lifebuoy a. Expensive (3) b. Reasonable (2)

c. Total

Cheap

(1)

46 110

41.9 100

Comment 5.2.16(A) a. According to survey most respondent think that most expensive Skin Care product of Unilever Is Dove .About 61% think Dove is very expensive. b. Majority of respondent voted Lifebouy as cheaper Skin care product of Unilever with 41.9 % ; closely followed by Lux with 41 %. c. Pears skin care product was voted as most reasonable Skin care product of Unilever.

16 (B) Beauty Care Products Response Fair & Lovely a. Expensive (3) b. Reasonable (2) c. Cheap (1) Vaseline a. Expensive (3) b. Reasonable (2) c. Cheap (1) Aviance a. Expensive (3) b. Reasonable (2) c. Cheap (1) Ponds a. Expensive (3) b. Reasonable (2) c. Cheap (1) Frequency Frequency %

21 68 21 37 59 14 17 71 22 51 48 11

19.1 61.8 19.1 33.6 53.6 12.8 15.4 64.6 20 46.4 43.6 10

56

Comment 5.2.16(b) Beauty Care Product a. According to survey most respondent think that most expensive Beauty Care product of Unilever Is Ponds .About 46.4 % think Ponds is very expensive. b. Majority of respondent voted Aviance as cheaper Beauty care product of Unilever with 20 %; closely followed by Fair and lovely with 19.1%. c. Vaseline Beauty care product was voted as most reasonable Beauty care product of Unilever.

16(C) Washing Detergent Product

Response Rin a. Expensive (3) b. Reasonable (2) c. Cheap (1) Surf Excel a. Expensive (3) b. Reasonable (2) c. Cheap (1) Wheel a. Expensive (3) b. Reasonable (2) c. Cheap (1)

Frequency

Frequency

11 73 26 77 30 3 21 69 30
57

10 66.3 23.7 70 27.2 2.8 19.1 62.7 27.2

Radiant a. Expensive (3) b. Reasonable (2) c. Cheap (1) Total

33 60 17 110

30 54.5 15.5 100

Comment 5.2.16(c) Detergent Products a. According to survey most respondent think that most expensive Detergent product of Unilever Is Surf Excel .About 70 % think Dove is very expensive. b. Majority of respondent voted Wheel as cheaper Detergent product of Unilever with 27.2 %. c. Rin and Radiant was voted as most reasonable Skin care product of Unilever.

Table 5.2.17 If you are not using Unilever brand for a product now, would you consider switching to Unilever in Future ? Response Yes No Total : Frequency 99 11 110 Frequency % 90 10 100

Comment:
58

This question was asked as I wanted to determine the percentage of loyal customers of Unilever Company From the table, I concluded that majority of customers i.e. 90 % will not change their product. While only 10 % customers say that they can change to other company. To satisfy those 10% of customers the Unilever can have customer retention programs such as Holiday Prizes, Discount coupons etc. more often to encourage them not to change their Company .

Table 5.2.18 Based on your experience with Unilever you recommended to your friends? Response Yes , I Will recommend No , I Recommend Total : will Frequency 99 Frequency % 90 10 100

not 11

Comment:

59

According to survey result we conclude that 90% of respondent will recommend to their friends or relatives the products they use , While 10 % will not recommend . Word of mouth has become very important tool for creating product awareness without manufacturer paying a single Cent. Hence Unilever can increased its product awareness by projecting a favourable image towards group of customers.

Table 5.2.19 Overall how will you rate the Unilever?


Response Very Good Good Average Poor Very Poor Total Frequency 13 69 21 7 0 110 Frequency % 11.8 62.7 19.1 6.4 0 100

Comment:
60

The result of survey tell us that Majority of Respondent rated the Overall Unilever as Good i.e. 62.7% .while 19.1% customer respond as Unilever Is Average ; On the other hand 11.8 % rated Unilever as Very Good and only 6.4 % of respondent rated Unilever as Poor. So overall we can say that Unilever is very successful in making good image in Market

Part 5.3Suggestions to improve Unilever Products


Q. 20 What are suggestions to change or improve the Unilever products? A. Skin Care Products

a. Majority of people suggested to improve the quality of Skin products. b. Some of the respondent suggested that the prices of Unilever Skin Care Products are very high, so company should decrease their price. c. Travel size Packaging.
61

d. Increase Product Concentration

B. Beauty Care Products

a. The respondent suggested that Unilever should Increase the Quantity of the product in same price. b. Some respondent also suggested that Unilever should increase their Advertising and Personal selling. c. Pumps Packaging d. Travel size packaging.

C. Detergent Products

a. The respondent suggested that Unilever should give more packing options in Detergent Products in different quantity.

b. Unilever should decrease price of there Surf Excel Detergent powder. According to majority of respondent Surf Excel is very expensive.

CHAPTER 6
FINAL PRESENTATION

62

Part 6.1 - CONCLUSION Unilever success in maintaining its products in the market globally for more than a century is remarkable. Its capability in sustaining its position as the world market leader in FMCGs industry shows its successful business operation management system applied its marketing expertise skill, its technology know-how, its employees, its HR, its social responsibilities, its constant product quality provider, and strategic customer focus planner. We also conclude by Reviewing Unilever Mission statement and there strategic management that Unilever is one of the leaders in FMCGs industry and it maintain success by widening or increasing their products worldwide. The mission statement of Unilever shows that all employees, HR department and customers are most important asset for Unilever. By doing research on Unilever Strategic Management Process I conclude that Unilever is successful in making Healthy relationship with government , retail customers and other authorities., retailer customers and other authorities. It has favourable relationship with the governments, charitable organisation, hospitals, retailers, suppliers, legal authorities, and consumers both locally and internationally, as well as magazines and newspapers such as Fortunes, Forbes, Media work, Economist, Advertising Age, E-Commerce, Accounting Today, Harvard Business Review, Business Week, Straits Time, Business Times and more. In short, its success in international markets is due to its massmerchandising techniques, intensive distributions and heavy media advertising.

Part 6.2- RECOMMENDATION


63

As consumers needs are changing at an increasing rate, a move from mass marketing to mass customisation to relationship marketing is vital to have higher profit 1.By offering differentiated products, Unilever could maintain its own consumers. Besides that, consumers of the millennium valued products quality above anything else. 2. Few implications are drawn up next page for FMCGs market Singapore which is applicable to Unilever: 3. Emphasis of the convenience of FMCGs in terms of distribution channels. Daily necessities products should have extensive distribution for easy access by consumers 4. The mode of presentation of toiletries are important, that is, the packaging and labelling. This is to ensure consumers assurance of the reliability and safety of the products. 5. The need for more product support by manufacturers in terms of advertising programs as small retailers such as the neighbourhood provision shops would be able to afford the expenses. 6. Emphasis of the quality of FMCGs such as the importance of product benefits 7. Demand total product-service satisfaction by constantly improving product through customers feedbacks and recommendations. 8. Emphasis of the variety and assortment of products, colours, options and sizes.

64

9.

Emphasis of speed delivery or ordering times as consumers want thing

to be done fast due to time constraint. 10. Demand for FMCGs made by green process. With the growing power of consumers each day, Unilever need to respect individual needs and wants, not only in the product requirements but also the environmental requirements. 11. Consumers are increasingly aware of the environmental issues such as the ozone depletion, the air and water pollution, and the endangered species that they would rather abstain something to which they thought would hazardously affect the environment.

Part 6.3 -

OTHER RECOMMENDATION

1. REGULATE PRICING STRATEGYUnilever need to regulate its pricing strategy whenever the need arises since consumers are especially attracted to low priced products. Though its current pricing system is not affected by the Americans as much as Singaporeans, consumers might just switch to another brand. Hence, Unilever need to be regulating its pricing strategy.

2. SOCIAL ACTIVITIESUnilever can support other social works besides the present ones such as

a. The ageing populationCan provide formal care (such as community-based services) or informal care (such as supports and time) or offer employment to these aged people.
65

b. The lower income family


Can provide compassionate and caring towards the under privilege. c. The mentally retarded Can conduct rehabilitative programs and services for them.

d. Addictions
Can conduct educational programme to drug and alcohol abusers.

e. The orphanage homesCan provide support to these children through donations and supplying of toiletries (perhaps Unilever products) annually. f. The national kidney foundationCan volunteer to recommend new foreign or local donors as to increase its present ones.

3. DIVERSIFY INTO RELATED PRODUCTSUnilever could introduce its sun care products in Singapore as I strongly believed that these products would be vital in the future. This is because of its hot climate. Besides, majority of flat owners in Singapore would have at least one air-conditioner in their rooms.

66

This is further proven by the aggressive advertising of the air conditioners distributors. Unilever could also expand its current pet food to pet toiletries. These pet toiletries might include shampoo and conditioner, liquid bath and fur colouring spray for dogs and cats.

4.

EXPLOITATION OF CURRENT ADVANCED TECHNOLOGIES-

With the ability of consumers to possess their own computers at home on credits, cheaper instalments, and low interest rate would mean that there would be increased in internet surfing. When this happened, they might start to purchase products on line. Hence, Unilever could start selling its products through the Internet in Singapore. 5. CHANGING ROLE OF WOMENWith the increasing women labour rate in Singapore, the purchasing power would be high; hence demand for more sophisticated and quality products would increase.

6. ENTER A NEW MARKETPresently, Singapore faces the problem of an ageing society of which the number of citizens aged 60 and over has reached 346,729 constituting 10.7% of the total population and is expected to increase with the projected number of aged reaching 796,000 in the next 30 years, (Humanities &

67

Social Sciences Research Programme 2008-2010, Apr 20010). Unilever could take this opportunity to introduce health care products in Singapore market. It would not only cater the aged population, but also the young and health conscious ones too. This is a great opportunity to boost sales since Singapore population has reached the 5 million mark (5,017,733) as at 30 June 2009 and is expected to increase in the future, (census of population 2009, March 2010). Unilever could also strike a deal with transportation companies by selling detergents meant for vehicles.

7. RETAINING CONSUMERSUnilever could retain consumers through relationship marketing programmes for its existing products like dove, Pears , Sun silk , Surf Excel , Rin etc. Sales promotion and discount coupons could be used. Besides that, by providing excellent services to them would encourage repeat purchases. To conclude the research, one of the advantage that Unilever possessed that enable it to succeed is its nature of business that allows it to forecast consumers demand aggressively, that is, the demand for most Unilever products such as soap, detergents, shampoos, paper towels and diapers are predictable, hence it is easier to mediate the market unlike high variability items such as fashions.

68

You might also like