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Global Marketing Strategies

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Jenni Roche

on 12 December 2013

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Transcript of Global Marketing Strategies

Global Marketing Strategies
Unilever Brands
Pricing Strategy
Trying to build brand loyalty in emerging markets through
'Affordable' pricing strategy
by decreasing product packet size.

Africa - Royco soups, Close Up toothpaste and Omo laundry powder in small pack sizes.

India - one-rupee sachets of Clinic Plus shampoo and five-rupee (less than €0.10) sachets of Pepsondent toothpaste, Brooke Bond Red Label tea and bars of Lifebuoy soap.

Indonesia - small sachets of deodorant sell for 15,000 rupiahs (less than €1.50)


Unilever's 'Billion-Euro Brands'
Unilever has 14 billion € brands:
Dove Knorr
Rexona Hellman's
Lux Flora/Becel
Axe/Lynx Heartbrand
Sunsilk Magnum
Rama Dirt is Good
Lipton Surf
Promotion Mix
Advertising
Public Relations
Personal Selling
Sales Promotion
Distribution
Internal logistics company ‘UltraLogistik’
Manage global and regional distribution hubs
Opened Vietnam's largest distribution center in 2011

Transport by:
Road
Rail
Sea

Distribution in Emerging markets
Reliance on large number of small local distributors - eg. Project Shakti.

P&G 'Billion-Dollar' Brands
P&G has 25 Billion $ brands:
Head & Shoulders, Olay, Pantene, SK-II,
Wella,Braun, Fusion, Gillette, Mach3, Always, Crest, Oral-B, Vicks, Ace, Ariel, Dawn, Downy, Duracell, Febreze, Gain, Iams, Tide, Bounty, Charmin, Pampers


Pricing Strategy
P&G has maintained an increasing pricing strategy for premium products in the developed markets eg.
'Premium' Pricing Strategy
.

Created the opportunity for low-cost competitors to gain market share.


Distribution
Manufactures own goods from many different countries (ie. US, Canada, China, Mexico, Australia)
Super-stockist distribution system
Main distribution centre in Texas, Ohio

Transport by:
ships
truck fleets
Unilever vs P&G Performance
Unilever vs P&G Performance
Bibliography:
Abbas, Syed Salman (2011).
Unilever Promotional Mix
. Available at: <http://www.scribd.com/doc/57091641/Unilever-promotional-mix> [Last Accessed 10th Dec 2013]
Arnold, David (2000). Seven Rules of International Distribution.
Harvard Business Review
78(6): 131-137
Denning, Steve (2013).
Is Everyone Nuts? P&G Now A Dog? And Unilever A Star?
Available at: <http://www.forbes.com/sites/stevedenning/2013/01/11/pg-now-a-dog-unilever-a-star-are-they-nuts/> [Last Accessed 10th Dec 2013]
Douglas, S.P., Craig, C. Samuel, and Nijissen, E.J. (2001). Integrating Branding Strategy across Markets.
Journal of International Marketing
, 9(2): 97-114.
Forward, David (2013).
Procter & Gamble Vs. Unilever: Comparing 2 Consumer Staples Giants
. Available at: <http://seekingalpha.com/article/1270361-procter-gamble-vs-unilever-comparing-2-consumer-staples-giants> [Last Accessed 10th Dec 2013]
Ghemawat, Pankaj & Hout, Thomas (2008) Tomorrow's Global Giants.
Harvard Business Review
86(11): 80-88
Gupta, Indrajit (1998).
Procter Takes A New Gamble
. Available at: <http://www.business-standard.com/article/specials/procter-takes-a-new-gamble-198120101035_1.html> [Last Accessed 10th Dec 2013]
Hill, Charles W.L. (2010).
International Business: Competing in the Global Marketplace
. McGraw-Hill/Irwin. Chapter 17.
Market Line (2nd July 2013). The Procter & Gamble Company SWOT Analysis.
Business Source Premier
, EBSCOhost: 1-10
Market Line (1st July 2013). Unilever SWOT Analysis.
Business Source Premier
. EBSCOhost: 1-11
O'Reilly, Lara (2013).
P&G's Marc Pritchard: 'The era of digital marketing is over'
. Available at: http://www.marketingweek.co.uk/news/pgs-marc-pritchard-the-era-of-digital-marketing-is-over/4007981.article [Last Accessed 10th Dec 2013]
Pinto, Viveat Susan (2013).
P&G to price Oral-B toothpaste at 10-15% premium to rivals
. Available at: <http://www.business-standard.com/article/companies/p-g-to-price-oral-b-toothpaste-at-10-15-premium-to-rivals-113070100894_1.html> [Last Accessed 10th Dec 2013]
Procter & Gamble (2012)
P&G Annual Report
. Available at: <http://www.pginvestor.com/Cache/1001174630.PDF?Y=&O=PDF&D=&fid=1001174630&T=&iid=4004124> [Last Accessed 9th Dec 2013]
Sumzero (2012).
Contrary Call: Shorting P&G on Loss of Innovation/Pricing Power
. Available at: <https://sumzero.com/headlines/consumers_and_retailing/PG/89-contrary-call-short-pg-loss-innovation-pricing-power> [Last Accessed 9th Dec 2013]
Unilever (2013).
Transport & Distribution
. Available at: http://www.unilever.com/sustainable-living/greenhousegases/transport/ [Last Accessed 10th Dec 2013]
Summary
Unilever and P&G both
similar companies
, selling
similar products

but with
different strategies
.

Main difference is in
emerging market
strategy.

Unilever more
global approach
, hence greater global reach than P&G.

Success is reflected in
share value
and as we have seen Unilever have the higher share price.
SWOT Analyses
by Jennifer Roche (604447)
Product

Pricing

Promotion

Distribution
Questions!
1. How should P&G approach entering the emerging markets considering it's 'Premium' pricing strategy?

2. Do you think the Unilever's sachet size approach is value for money in the emerging markets? Or is it still a premium price in a smaller size? Is this just the illusion of affordability?
*'Unilever SWOT Analysis' 2013, Unilever SWOT Analysis, pp. 1-11, Business Source Premier, EBSCOhost, viewed 11 December 2013.
*'The Procter & Gamble Company SWOT Analysis' 2013, Procter & Gamble SWOT Analysis, pp. 1-10, Business Source, Premier, EBSCOhost, viewed 11 December 2013.
*Forward, David (2013).
Procter & Gamble Vs. Unilever: Comparing 2 Consumer Staples Giants.
Available at: <http://seekingalpha.com/article/1270361-procter-gamble-vs-unilever-comparing-2-consumer-staples-giants>
*Denning, Steve (2013).
Is Everyone Nuts? P&G Now A Dog? And Unilever A Star?
Available at: <http://www.forbes.com/sites/stevedenning/2013/01/11/pg-now-a-dog-unilever-a-star-are-they-nuts/>
Full transcript