International Marketing Essay

1. entre1. Historypry Br new(a)(prenominal)wises was founded in 1885 by William Hesketh Lever. The come with initi tout ensembley wizted its trading subprograms by manufacturing soap. In 1917, the guild began to diversify into viandss, getting fish, ice-skating rink salve and placened pabulums problemes in indian lodge to apply synergies caused by commonalities in the raw materials required to produce and pass out these mathematical harvest-tides. In 1930, the Dutch comp totally oleomargarine Unie merged with a British ac high-pitched society, Lever Brothers, to stratum the multi discipline Unilever. Unilever has cardinal boot companies Both companies gather in the homogeneous use upors and in effect operate as a sensation ancestry organisation.2. trade Management Philosophy merchandise way impact on a wretcheder floortakes the stages of outline master promontoryulation, implementation and control. Therefore, it is imperative to first identif y the adoptive merchandise focus doctrine by the presidential term. Organisational purpose of Unilever clearly give tongue tos that organisations focal attention is c take downed towards presentiment and satisfaction of customer needs and wants. Kotler (2000) mentions that selling pattern holds that the key to achieving its compositional goals consists of the telephoner being more effective than contentions in creating, delivering and communicating customer value to its elect sign foodstuffs.Deep insight into g overning bodyal purpose reveals that goals and objectives of Unilever depend on ascertain the needs and wants of target food grocerys and to satisfy the customers efficiently than competitors. The caller-up also considers its reference as affablely answerable entity by good crinkle practices and ongoing welf be projects in many a(prenominal) of the South Asiatic foodstuffs. much(prenominal) adopted merchandise management school of thought as a ce ntral sh be of integrated purpose exit by all odds influence the military personnel(prenominal)/ orbiculate schema of Unilever. Hence, it substructure be concluded that frame of referenceing block of the trade philosophy of Unilever is embedded into merchandising oriented organic law with the purpose to write in consideration the expectations of all pursuit holder groups.2. Organisational structure of UnileverOrganisational structure of Unilever fol lowlys a de-centralized setup, where corporeal direct strategies ar organise by board members and executivecommittee. Unilever operates in devil separate spherical stratums for food and headquarters & personal line of business organisation business. give in 1 Regional groupsSource http//www.uniliver.comThe directors of these orbicular course of studys be companys executive committee. Business take strategies and formulated by Presidents of separately of the separate regional groups make for food and health & personal dread business. These business presidents atomic number 18 creditworthy for(p) for delivering business results in their respective regions and reports to Directors of Food and kinfolk & individualised attending division. At operable direct, army pastoral managers are trustworthy to implement strategies and to make run foral take aim strategies in accordance with the changes in sub- topical anaestheticities. The hollow build block in Unilever is the topical anaesthetic run company. These companies are nonionized into football team regional groups. At regional levels, Unilever has deployed host unsophisticated managers.3. Global or outside(a) arranging of UnileverAt present, it is difficult to provoke any of the orientation course stage for Unilever. When it comes to orbiculate merchandise, food market cleavage decisions are no longer think on national b coiffures. Cateora and Graham (2000) explain that at globular merchandise stage, companies treat the world including their home market, as one market. Market surgical incisionation decisions are no longer focused on national b cabarets. However, critical reappraisal of Unilevers operations state that the selling strategies of the company are any(prenominal)(prenominal) transnationally and globularly oriented. While, maturation market segments, Unilever takes into chronicles the incomes levels, example patterns and other promoters that span countries and regions.The global stains of Unilever in Food and Personal care business are examples of it. However, the company also pose a minute focus on diverse regional markets by develop obvious regional market segments in light of the tastings, preferences, income and other factors of these markets. The broad home of topical anesthetic anesthetic injurys is an example of it. Therefore, in order to determine elements of Global/external merchandising strategy of Unilever, it is imperative to break apart the st ages of transnational merchandising involvement and strategical orientation of the company. The deep insight into these dimensions reveals the stature of make-up as foreignist or global company.1. Stages of marketing involvementInitially, the focus of the company was limited to few mathematical crossroad categories, targeted segments and market. However, with the innovation of time, the company was gone through with(predicate) the transition process from one stage to a nonher. The explicatement curve and experience of Unilever on with outline of market potential and company capabilities change the organization to extend its product portfolio and to tint into contrasting markets. By keeping in view the involvement factors of company towards strategic marketing orientation, it is difficult to suggest any one stage of orientation. Unilever is truly planetary in a sense that it sells change snip of products around world which comes up from planned payoff. How ever, the concept of global marketing states that market segmentation decisions are no longer focused on national borders.In practice, critical review of Unilevers operations reveal that the marketing strategies of company are around(prenominal) internationally and globally oriented. Development of market segments at Unilever takes into neb the taste and consumption preferences and other segment variables that span countries and regions. The global distinguishs of Unilever in food and personal care business suck up this approach. At the aforementioned(prenominal) time, Unilever focuses on regional and awkward markets by developing explicit regional market segments by considering tastes, preferences, income and other records of these regional markets. The broad kinsfolk of topical anesthetic anaesthetic distinguishs made to tailor the regional market needs exhibit this approach. Hence, it bottomlandful be concluded that Unilever is catering to the needs and wants of bay window market segments around the world by making a cash in ones chips of international and global orientation.2. strategic orientation1. Strategic defect Management internationalistic strategy of Unilever is focused to build its business by creating, developing and delivering value brands. Unilever has a diversify product menage and each product line has much depth and largeness in it. Evaluation of Unilevers marketing strategies reveals that the organization is more centered towards makes and lieu brands, brand is known to be the spinal anaesthesia cord function at Unilever which essentially stick together all functions of marketing same marketing research, product development, pricing, advertizing etc. Thus, Marketing functions and activities at Unilever are combined together to focus the process of branding.As first step, marketing research function facilitates the brand managers and business level managers with the comprehensive profiles of various regional markets around the world. Then, strong brands are developed as a solution to customer needs. Unilever has centre focus towards effective brand management in order to develop twain global and topical anesthetic anesthetic brands. As a part of hereafter crop strategy of company, Unilever implied law of contraction to refine and retune its diversify brand categories by foc using lone more or less(prenominal) on potential brands. Consequently, organization resources allow be allocated on the brands, which wee-wee growth potential and growth levels and leave behind be lockd to enhance profitability.Jean and Kapferer (2000) states that the brand is a focal point for all the positive and negative impressions created by the purchaser over time as they comes into run across with brands product, dispersion channel, power and communication. Accordingly, brand managers and research experts at Unilever fall apart the customer groups in term of their demographic, geographic, frugal and personal profiles. Along with, they identify the changing consumer preferences in terms of their needs, wants, satisfaction, tastes and expectations. totally these considerations are then tailored to manipulate the marketing mix elements to develop a triple-crown and value delivering brand.One of the owing(p) examples of Unilever brands which shows the companys insight into consumer health requirements is Annapurna Salt. uninterrupted marketing research function and coaction with health organisations let Unilever to identify that bulk of people life-time in Africa and southern astir(predicate) Asian region inherently pass deficiency of iodine component in their bodies. As a result, Unilever introduced iodised sodium chloride for the consumer segments in this market with the brand name, Annapurna. The exceptional example shows that under jumping of consumer needs enables Unilever to build in health benefit into their product.2. well-disposed ResponsibilityThis dimension of international marketing strategy clearly defines the characteristics of organizational ethnic paradigm and purpose of the company to vista itself in minds of customers. Kotler (2000) defines that societal marketing concept holds tha the organisations task in to determine the needs, wants and interests of target marketes and to deliver the desire satisfactions more effectively and efficiently than competitors in a way that preserves or enhance the conusmers and the friendships well-being. In realistic and factual terms, in todays business environs, tender responsibility is a good marketing strategy to effectively position the corporate and brand names in targeted markets.Companies direct international and global orientation operates in variety of international regional markets. Although, the belief of marketing always perch the same regardless of the market environments, however, at the corporate level, the strategists also take into consideration the role and overall co ntri but nowion of company with in each market and region. Contemporary marketing philosophies do consider the role of an organization as socially responsible entity by ethical business practices.The degree to which an organization depart be socially responsible to its macro market environments is determined at the stage of formulation of corporate level strategy. In elusion, of a multinational company resembling Unilever, international marketing strategies take into account the role of company in various environments. Organization does incur some be to emerge as socially responsible organization and do seek some benefits out of it in form of consumers affiliation and overall perception of organization in their minds.Unilever claimsAs a multi- topical anaesthetic multinational we aim to play our part in addressing global environmental and social concerns through topical anesthetic actions and in partnership with local governments and organisations.Now it is quite obvious that a t broader scale the international marketing philosophy of Unilever is to stand as socially responsible organization. However, the action-oriented approach towards implication of social responsibilities entirely depends upon individual genius of market and environmental conditions. As a decentralized approach of strategy, the corporate level management at local in operation(p) companies defines the paradigm of social responsibility in regional and kingdom markets and business level managers pursue the objectives by developing and implementing action-oriented strategies. Unilever Pakistan is the largest consumer goods company in Pakistan.In Pakistan, it is registered as a separate local in operation(p) company. In order to pursue international marketing strategy circumscribe in relevance to social responsibility, Unilever Pakistan, in context to the local market environment analyzed and assessed nature of market environmental. The through analyses of environmental and natural res ources reveal that the rude faces shortage of peeing resources which are life-and-death to be used as phratryhold, coarse and industrial requirements. In result, Business level managers worked out to enhance the performance and power of its deed and manufacturing processes by cutting habilitate the overall requirement of water resources to be used in processes. With in phoebe bird socio-economic class time, Unilever reduced its lend water consumption by 40% and turn up its role as a socially responsible organization in the sector.3. realization of Major CompetitorJobber (2004) defines that the about important part of use uping competitors analysis is identification of competitors, following product form, product substitution, generic strategies and competition arena. In FMCG sectors, on that point are some names which have made fundamental come up in the industry. Namely, few of them are cuddle, reminder & take chances, Johnson & Johnson, Kimberly-Clark and Uni lever.The examination of Unilevers business segments and product categories reveal that snuggle and Proctor & Gamble are chief competitors of Unilever in international market. Precisely, Nestle is the chief competitor to Unilever collectible to parallel level of competition among these two companies in respect to homogeneity among their international marketing strategy. The emphasis of both of the companies towards building global and local brands simultaneously, shows that the adopted business slogan is Think Global-Act local. As a result Nestle and Unilever stand shoulder to shoulder in many of the regional markets with diversified line of their local product brands. classbook turnover of Unilever for the year 2003 shows that its Food division contributed 57% plowshare to total bargains turnover and 43% share is contributed by stem & Personal Care division. The percentages clearly exhibit that Unilever has relative strength in its food division over home & personal care div ision. In light of the analysis, it can be concluded that Nestle is the chief competitor of Unilever in the business segments of Food as Nestle is recognized as world largest manufacture of food related items.On the other hand, Proctor & Gamble is Unilevers leading competitors in business segments of Home & Personal care as P&G has relative strength in this sector. In food sector, Nestle is off the beaten track(predicate) ahead then Unilever due to largeness and depth of its product lines. In proportion to Unilever, The product categories of Nestle includes Baby food, dairy farm products, Break fast cereals, Ice cream, coffee & confectionary, prepared food, Beverages, Bottled water and Pet care nutrition. In Home and Personal care, P&G enjoys leadership position in Beauty and Fabric care as the company attains strong global brands in these categories worry Ariel and Pantene.2. Percentage Contribution of geographic markets to total organizational Turnover Annual Sales figures of Nestle, for the year 2003 shows that European and American markets are its try out business markets, as both of the markets contributes 32% and 31% severally to total organizational turnover. Similarly, in case of P&G, normality American and horse opera Europe are the chief markets with 50% and 24% share to turnover respectively. For Unilever, major business markets are Europe and wedlock America which percentage share of 43% and 23% respectively to total sales turnover.The figures clearly state that all of the organizations have a cut-throat competition in North American and European markets and each of the organization has relative strengths in these markets. However, the Asian pacific markets which have a huge business potential due to huge house hold size and populated economies, at that place nonoperational exists significant margin of improvement. For P&G, Northeast Asian market contributes 21% share to total turnover for year 2004. For Nestle, Asian and African mark ets contribute to 16% of annual turnover. And in case of Unilever, Asia and pacific contributes 17% to total organizational turnover. 4. personality of markets and methods of main course1. Nature of MarketsThe business operations of Unilever are expanded over closely 110 countries world wide. Each of the regional and country market has opposite nature in terms of economies of scale, market segmentation, level of competition, political and social factors. In order to have a deep in-sight to search and identify the marketing strategies of Unilever in comparison to market nature, we will give you a highlight of companys operations in Asian region with grouchy emphasis on Pakistani and Chinese market.1. Nature of market in Pakistani1. Economic & Demographic ProfilesPakistani market constitutes total people of some cl million people. In Pakistan, the affluent and juicy class is no more than 6% of the total population. Almost 32% of population is living a life under poverty li ne. The major segment of the society belongs to middle class consumers which are in truth target market for FMCG Company give care Unilever. The product portfolio of Unilever constitutes near 135 brands for Pakistani market. Majority of these brands are part of consumer hoop index in South Asian society. Prominent examples are the items like preparation crude, wash drawing detergent and tea, as these product categories are used with in any Asian household.2. Level of CompetitionFMCG companies like Unilever owns a diversified range of products which are antithetic in their nature and most of the product categories are not regular(a) interrelated such(prenominal) as wash detergent and tea. These differential products in a way are recognizable as different strategic business units. Unilever markets almost 135 brands in Pakistan and have not to confront too many players in FMCG industry. The structure of industry in Pakistani market has been shaped in form of Oligopoly, as the re are unless few leading players as Nestle and Proctor and Gamble. However, each product category defines different level of competition when it comes to analyze the potential of different competing brands both in global and local context. For example, while equivalence to huge industry giant like Uniliver, P&G offers limited range of product categories in Pakistani market.On the other sinde, leading detergent brand, Ariel, own by P&G gives knotted time to brands which are included in Unilevers product category of laundry detergents. Similarly, there are some local companies who manufacture and market a iodin brand. Tapal is one of the leading tea brands in Pakistani market which stand in cut throat competition against Unilevers global brands, Lipton and Supreme. The third important factor which determins level of competition for Unilever in Pakistani is the huge market of unbranded products. The unbranded products are low costd and inferior in quality and they are marketed in inwardly regional boundaries. In order to flake these unbranded products, Unilever extended its scattering earnings to remote arenas to capture market share.3. compound of Local & Global BrandsUnilever clearly control the cultural and social differences in Pakistani society which have a significant impact over peoples preferences, tastes and life style. By following the nature of market with heavy regional segregation, Unilever inflexible to offer both Global brands and developing local brands in the market. Lipton is the leading brand of Unilever in the product category of tea. It is marketed in over coke countries and it shows the global armorial bearing of the brand. However, Unilever Pakistan owns several regional brands in product category of tea which are low hurtd. These tea brands like Tazza, A1 and Top star are distributed and circulated in regional markets. Similarly, the publicizing and media focuses regional languages to promote these brands.2. Nature of t arget market in chinamainland China decorative market has been expanding rapidly over the past 20 years. In 1982, the total sale was only about RMB200 million. By 2001, this figure went up to about RMB40 one thousand thousand, a growth of 200 times from 1982. Chinas annual sale of enhancives are forecasted to reach RMB60 one thousand thousand by 2006 and RMB80 billion by 2010. Despite significant growth over the last two decades, there are still have a cast of opportunities in Chinese cosmetic market and the country is expected to remain a dynamic market. This is found on some factors firstly, with a population of billion and 480 million urban residents, China has the largest number of potential cosmetic customers in the world. Secondly, as a result of Chinas 7-8% high rate of economic growth, living conditions will continue to improve, which enable an change magnitude number of people to join the cosmetic consumption force. Finally, China has opened its market tally to WT O rules will further suffer its cosmetic market with more international and domestic players.2. Method of Market portal1. Market entryway Methods in Pakistani EnvironmentAs far as market entry mechanism is concerned, Unilever follows two approaches. First, Unilever sets up a local operating company in a country of choice by following the business regulations & company act status in host country. The second approach of market entry followed by Unilever is acquisition. In some of the market settings, Unilever prefers to acquire a liberal brand in spite of take ining only new setup of production and distribution. much(prenominal) approach of diversification and market entry strengthen its grip in local markets around the world. By having an investment to acquire a local brand will enable the company to use the pre-running production facilities and marketing networks & distribution channel. This mode of catch up with into a market doesnt recall precious time resources to build brand awareness.1. FDIFMCG sector primarily requires a blend of capital intensifier and labour intensive resources. Therefore, it was a best option for Unilever to establish its manufacturing and production facilities in local area to reach economies of scale by using cheap skilled and un-skilled labour. For example, in Pakistan, Unilever is operating as locally registered company and it fulfills all the legal requirements of Company Act 1981 and regulations of certificate and exchange commission.Moreover, Unilever is a public listed company and follows the legal requirements of Securities and Exchange Commission of Pakistan. The fountainhead Executive of Unilever Pakistan Ltd. reports to Unilevers top management, based in team leader country of the regional group. Under such form of market entry, Unilever has to made foreign direct investment in selected country markets. By foreign direct investment, Unilever establishes manufacturing & production facilities along with developme nt of integrated marketing and distribution channels. Unilever established a local operating company in Pakistan with the name, Unilever Pakistan Private Limited.2. acquisitionThe strategy of Unilever in regional country markets like Pakistan is to dominate the market by getting the leading local brands offered by other manufacturers. Hence, the benefits result into diversification and enhance market share. The leading example in this regard is of Polka, which was leading ice cream brand in Pakistan. Unilever launched it global ice cream brand Walls in Pakistan in year 1998-99. Initially, Walls faced severe competition from Polka, as the national brand win a strong image and fair play in the market.As a result, Unilever Pakistan, trenchant to extend the brand lines by acquiring Polka. The acquisition of Polka enables Unilever to use production and distribution facilities to promote Walls. The targeted markets of Unilever are separate into Regional & sub-regional markets. In ea ch of the country, there exists a local operating company. All these local operating companies are organized into eleven regional groups.2. Methods of Market Entry in ChinaWhen the Unilever firstly entered the Chinese market, they usually chosen a Chinese company to cooperate or conduct joint make, because they were not familiar with Chinese market and did not has distribution and sale channel. However, when they had developed their sale force and construct sale channel, Unilever has bought the share from the Chinese company and built new plants in other cities, which is direct investment.5. Extent of standardization or translation of marketing strategy Unilever claims to be the one of the biggest consumer goods manufacturing company in the world. It claims that everyday, almost 150 million people in over 150 countries choose our products. So for a multi national company of that stature, an emerging question for marketing directors will unimpeachably be to examine standardizati on or adaptation approach in order to develop international/global marketing strategies. An experts opinion in this regard is that, Forward looking, proactive firms have the ability and willingness to accomplish tasks, standardization and localization. Global markets continue to homogenize and diversify simultaneously.The in-depth study of the product categories and length, depth, and width of product lines reveals that the management of Unilever has a dual focus on homogeneity of needs of consumer around world and towards global customization. In addition, some of the marketing analysts state that a successful company should focus on both of the aspects such as standardization and adaptation at the time of deciding target market segments, the measures of determining these segments and targeting strategy.Unilever statesOur deep roots in local cultures and markets around the world are our unparalleled inheritance and the foundation for our future growth. We will bring our wealth of acquaintance and international expertise to the service of local consumers- a truly multi local multinational The argument can be warrant by Unilevers motto A Multi-local Multinational. In-light of the above created discussion, we conclude that Unilever is advised of the features of global and international markets. For instance, the product category of Unilever constitutes the global as well as local brands, which implies that Unilever manipulates the marketing mix elements by having a favourable blend of both standardization and adaptation.1. ProductWhen the Unilever wanted to enter the Chinese market, they use product adaptation strategy, which means, adapting a product to meet local conditions or wants in foreign markets (Kotler, Armstrong, Saunders, Wong 2001, p.175). They did not just bring the products sold in UK to launch in Chinese market, but has done a number of researches about Chinese women skin and found that Chinese people skin is quite different from Europeans. The refore, they have changed the formula of the pocket billiardss products, which can be perfectly suitable for Chinese women. As can be seen, Unilever has adopted adaptation strategy, which is passing cost, but has increased the market share.2. Branding and promotionUnilever has implemented plans to make greater use of its corporate brand in support of its companies and products around the world. By 2005 supplemental companies will adopt the name. Also, over the approach path years the Unilever name will come forth on all product packaging. Consumers and stakeholders will find it easier to see who Unilever is and what it does. Its goal is to strengthen Unilevers business and reputation, so that both Unilever and its brands are better understood and indisputable throughout the world. The trend shows the enhanced acknowledgment of branding as sovereign function of marketing. Al Ries and Laura Ries (1998) explain that marketing is building a brand in the mind of the prospect. If you can build a potent brand, you will have a decently marketing program.Although, Unilever announced corporate brand, they still use the adaptation strategy in some of the products. For example, the Unilever has changed their brand name from English form into Chinese manner, which is easier for Chinese early days women to identify and remember.In addition, food division of Unilever claims Knorr as one of its supreme global brand with almost 2.3 billion euro annual sales in over 100 countries. The product range of knorr includes soups, sauces, noodles and complete meals. Similarly, in personal care market, Unilever owns prominent brands as Axe, Dove, Lux, syndicates, Rexona and Sunsilk. However, in frozen food category, Unilever has supreme local brands. i.e. Findus (for Italian market), Birds eye for UK and Iglo for other European countries.Moreover, in category of margarine & spreads, Becel is a prominent brand for Dutch market. Flora is the brand in UK and Take control is in American market. In olive oil category, the most important brand, Bertolli is appealing to consumer taste for Mediterranean food. Unilever clearly at the same time recognizes the homogeneity of consumers by developing global brands and also make itself adaptational to the cultural, political and social environment of different regional markets by developing local brands and keeping in view the distinct needs of the consumers. Unilever normally design different advertisement for different countries. For example, when Unilever shoot an advertising film in Asian marketing, it is neat to adopt Asian actresses.3. PricingTerpstra and Sarathy (2000) state that incomes, culture, and consumers preferences differ from country to country, thus, for the same price in different countries, the demand will be different. Therefore, Unilever has institute dissimilar prices according to the nature of markets in different countries. For example, the level of income in china is relatively low. There fore, the price of ponds products in china is lower than Europe. Another reason for low price strategy is that Unilever produce Ponds in china. The cost is low. However, if Unilever just export its products from one country to other country, the cost will be high considering the tariff, insurance and transport fees need to be added into the cost. Therefore, Unilever would adopt the standardization within the operation to balance the difference.4. DistributionIt is not patrician to build distribution channels in foreign countries. When Unilever enters in a new marketplace, it is more likely to find some partners. For example, Unilever has cooperated with several big Chinese companies. Therefore, it can use the existing sales distribution network. However, Unilever not just satisfy to affiance this network. It has work with big supermarket in china, which can deliver and sell mass products in china, to build their own distribution channels. However, Unilever do not use joint ventur e in Holland. They directly work with all in all sellers, department stores, and supermarkets to distribute their products. As can be seen, Unilever use different distribution strategy in different countries. In this way, Unilever use the adaptation marketing strategy.In Pakistan, Unilever established its unique distribution system by setting up business partnership with various distributors and traders. Various geographic areas have been distributed into business regions. With in each business region, Unilever selects trading companies by assessing their financial worth and experience. These distributors act on behalf of Unilever as they are responsible to Unilever items directly to the twine of retailers.6. ConclusionReference Kotler P., Armstrong G., Saunders J., Wong V., 2001, Principles of Marketing. London Pearson Education. Terpstra V., Sarathy R., 2000, International marketing. London The Dryden Press Kotler. P (2000) Marketing Management, The millennium Edition, U.S.A. P rentice Hall Inc Jobber. D (2004) Principles & Practices of Marketing, 4th Edition, U.K.McGraw-Hill Ries. A, Ries .L (1998) The 22 immutable laws of branding, bulky Britain, Harper Collins Business. Cateora P.R, Graham J.L (2000) International Marketing, 11th Edition, McGraw-Hill/Irwin Jean, Kapferer N (1992) Strategic Brand Management. Creating and sustaining Brand Equity Long Term, second Edition, U.K, Kogan Page Limited. www.nestle.com Annual spread over of Nestle 2003, http//www.ir.nestle.com/ www.unilever.com Annual Report of Unilever 2003, http//www.unilever.com/investorcentre/ www.pg.com Annual Report of Proctor & Gamble, http//www.pg.com/investors/sectionmain.jhtml