Write a Report on the observations of a selected global brand within a selected country context. Highlight the significance and impact of COO [Country of Origin] for the selected brand.
Your discussion must provide an overview about the macro environment of the selected brand and its social/culture association. You must include a business overview and a comprehensive analysis of the Global Marketing Strategy for the selected company/brand.
Your analysis should also discuss the outcomes (success or failure) for the adopted global marketing strategy. The report particulars must be built on a discussion about the strategic overview of the industry within which the company or the brand operates and any key marketing issues that are of particular importance.
In some instances, you may find that the company and the brand are intricately interwoven, especially when companies are small. In larger companies’ brands could be part of a larger portfolio. You must pay particular attention to the issue of standardization Vs adaptation of brand design and the impact of this within the chosen market.
Solution Report
Abstract
A Unilever brand, originated from the United Kingdom, has expressed its performance in America. Through industry overview, the company management has derived many insights to shape or design different global marketing strategies. After the successful business operations in the United Kingdom, the company expanded the United States to enhance the visibility of brand performance. Macro environmental analysis of the county has been illustrated, which assisted the company makes strategies. The main marketing strategy for this global market is the market development. Along with this, several marketing strategies such as marketing mix, segmentation, targeting, and positioning have been elaborated. These strategies depict the brand design, standardization and adaptation process, in the American market; some brand issues about social and cultural acts have also been exhibited. Based on all these insights, the performance of the company in the country has been streamlined along with some recommendation.
Brand Overview (Unilever)
Unilever is a prominent British consumer goods company. The company is selling food, beverages, and personal care cleaning products. It is the largest company in the world in the good consumer industry by revenue. The company was founded in 1916. The company contains the successful expansion in different parts of the world. The global marketing strategies of the company are in the limelight, which has contributed to the successful expansion. Unilever brand has become the top preferences of customers around the globe due to its quality, image, and effective marketing strategies. According to 2016 financial report, the revenue of the company is €52.713 billion. It is a big multinational company, and its products are available in 190 countries. Remarkably, the company management has formulated some exceptional marketing strategies, which have also helped to integrate with the global business environment. Obviously, the role of the global marketing strategies seems worthy to attract customers around the globe. The business sustainability has been ensured by the management of the company due to pertinent strategic marketing considerations (Unilever.com, 2017).
The company exists in the industry quite strongly. Due to effective managerial cognition in the global market, the company has gained the sustainable competitive advantage. The industry overview in this context is as under
Industry Overview: Unilever
After the successful business in the United Kingdom, the company expanded into different parts of the world. The most prominent expansion is in the United States of America. Of course, there is a difference between regarding the culture and market between the United Kingdom and the United States. Accordingly, the management of the company contained a comprehensive analysis of the American consumer goods industry to make the difference (Griffith, 2010).
The global consumer good industry has been triggered by some new trends. In this industry, different organisations have expanded the business beyond the traditional basis. For Instance, the industry is integrated with the prominent product innovation, investment on research and development and extraordinary positioning process. Instead of expanding with the traditional ways, companies are transforming the business, which enables the product innovation. Using the customer or market analytics helps companies to integrate with needs and modern tends successfully. Interestingly, consumer goods firms are coming up with some profitable categories of products for customers, which also enable the sustainable growth in different competitive markets (Armstrong et al., 2015).
In the consumer goods industry, the most important factor is change. Transforming the business to integrate with different prospects is important in today’s business era. For Instance, in this contemporary business era, companies are shaping new marketing approaches to anticipate new opportunities. All these opportunities revolve around consumer goods and customer needs and satisfaction. Based on new trends, different global competitors are looking to focus on future by consolidating the demand trends, external factors and supply trends. Interestingly, when considering these factors or aspects, the company shares different marketing strategies to target different regions to be successful and sustainable for a long run. In this industry, another important aspect is the customer accessibility (Chuwiruch et al., 2015). There is a rise of digital customers in the good consumer industry, and linking with the technology can help the company to contain the sustainable growth in different countries. In this competitive business era, the expansion in the emerging markets to target new customers seems worthy. A huge demographic shift has been observed in the global consumer good market, which enables firms to shape strategies and target customers accordingly (Swarupa, 2016). Instead of just focusing on the brand portfolio expansion, the most important thing is quality and differentiation, which makes customers loyal and satisfied in the presence of the immense range of substitutes or competitors. Due to the availability of substitutes, the buying power of customers sees high in different markets, and Unilever, being a top consumer goods seller, has to differentiate the business outputs when expanding into different parts of the world to be successful and lucrative in this particular industry (Deresky, 2013).
Target country: United States
Unilever has continued a successful expansion in the United States; the company is capable of expanding the business in this part of the world. However, there is a need to change marketing approaches or strategies to emerge in this market successfully. Top competitors of the company in this region are ConAgra foods, Colgate Palmolive, general mills, Altria Group, Kimberly Clark, Pepsi Co and Procter & Gamble. The macro environment analysis of the country is as under.
Country Macro Environment for Unilever
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Political
Due to strong democratic setup in the country, the political system has been stabilised. Despite influencing domestic and global policymaking, the political system supports the businesses and expansions Thus, for Unilever, the stable and democratic political systems are suitable, which enables the long-term business sustainability and growth (Dummett & Chaudhuri, 2017 ).
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Economical
The GDP of the United States of America is $16,760 trillion, which makes it the largest economy in the world. The country has well-developed economic systems, which is equally beneficial for manufacturing, retail, services, and consumer goods businesses. In this economy, the buying power of people seems high, which is also good for the business of Unilever.
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Social
A huge cultural diversity goes in favour of this company in this particular region. For Instance, it seems easy for the management of the company to make different segments and integrate with the cultural or social values. People are assertive in engaging with new things in the market, which depicts the positive buying behaviour. Containing the emotional and sentimental attachments with people in this country can help Unilever to gain the competitive advantage (Griffith & Hoppner, 2013).
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Technological
In the US, business environment, companies, especially in the retail and consumer goods industry are adopting or applying new technologies. The technology adaptation is a critical competitive factor in the country for many firms, and Unilever is quite capable of this pertinent adaptation process (Griffith, 2010).
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Legal
Some legal implications in the United States are to be considered by the company management. Every business is triggered by the business rules and regulations in the country to sustain the growth for a long run. Like the United Kingdom, the company management has to follow these regulations to avoid different legal complexities (Kotler & Armstrong, 2015).
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Environmental
Companies in the country are shaping the brand image through different CSR initiatives. Along with the business success, many forms are recognised due to different contributions to the community development. Green business practices in the United States have helped companies to make a prominent reputation, and of course, a Unilever company seems up to it (Griffith, 2010).
Country of Origin, Significance
The origin of the country is the United Kingdom. It contains the significance, as the company has sustained its brand image due to high-quality products for an immense range of customers. It is a well-reputed brand in the country. In the United Kingdom, the cultural diversity exists, For Instance, many people come from different parts of the world for different purposes. they know the Unilever brand, its quality, reputation, and success. Similarly, in the United States, people come from different regions, and they know the brand reputation. Thus, a due to this, it seems easy for the company to target customers like the United States (Kotabe & Helsen, 2014). The country of origin also contains the significance due to the standardisation of the process in the products and marketing. Similarly, the international business traits, which have helped the company to gain the success in the United Kingdom, can be adopted in the United States as well to make the difference (Hollensen, 2016). The company has been originated from the United Kingdom, and all resources and capabilities are developed due to successful operations. For Instance, high revenue streams in United Kingdome make the company able to expand in the United States. Therefore, it makes the significance quite important (Hollensen, 2016).
Global Marketing Strategy (Standardization & Adaptation): Unilever
Market Development for Unilever
Unilever has emphasised on the market development strategy. It is one of the Ansoff’s Matrix’s strategies, and the company has adopted it to exist strongly in the US market. The company intends to enter into new markets with existing products and shape different marketing strategies to make minds of people. The company has already unique and high-quality product line along with different segments, and the pertinent market strategy for this market is to enter with the same products. The company is depending on its market strategies, including marketing mix, targeting, positioning, and segmentation. Market development is the main strategy, and all other strategies revolve around it (Hsu, 2011).
5c Brand Strategy for Unilever
The global marketing strategy of the company is in the limelight due to its impact or influence in different international markets. For Instance, in North America, the company management has reshaped its marketing strategy. Interestingly, the company management has come up with the 5C brand strategy to position better in the minds of customers (Jayashankar & Goedegebuure, 2012).
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Customer
The management of the company anticipates the needs of the customer in this market and enables the assistance. The company integrates with the market and customer trends and come up with pertinent products (Unilever.com, 2017).
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Connect
In this competitive market, it has been revealed that the company intends to evolve the advertisement process. The company wants to connect with people in real time, which makes the whole marketing process sharp and purposeful (Tuckwell, 2013).
- Content
To position better in the minds of customers and enhance the visibility of attraction, the Unilever brand intends to tell successful brand stories to customers and accordingly build advertisements on different media channels. The content enables the pertinent information for customers, and in the end, they can make positive buying decisions in the market (Stefko et al., 2011).
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Community
The company is looking to create strong relations with communities. Using customer data to derive several insights and use these in different advertisement campaigns is a good appro0acvh in sustaining the relationship (Solomon, 2010).
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Commerce
The role of commerce in the marketing strategy is prominent. The company is using different e-commerce tools to reach and engage customers directly. For Instance, the intention is to social media channels to attract customers (Percy & Elliott, 2009).
Beyond the 5C brand strategy, the company has depicted the marketing mix strategy in this particular market.
Marketing Mix Strategy for Unilever
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Product
In the global market, the company has categorised its products. The main categories are personal care, home care, water purifier, and refreshment. The company aims to contain the high-quality products in the presence of big competitors in the market. Based on the needs of customers, the company is looking to expand its product line to make the difference. The expanded product line in America helps people to find what they want and make their preferences (Stefko et al., 2011).
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Price
In the competitive American consumer good market, the management has come up with the penetration pricing strategy. The purpose is to keep the cost and price of products, low as compared to different substitutes. It helps the company experiences remarkable products and sales growth, and finally, gains the sustainable competitive advantage (Solomon, 2010).
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Place
In the United States, Unilever company y sells its products via supermarkets, as it seems easy to target big range of customers through these stores. Thus, targeting prominent superstores in American is the best option to get products on top shelves. Also, some products of the company are to be placed or sold through direct marketing. Direct marketing agents in the country are to be hired and trained to contain the better placement (Solberg & Durrieu, 2008).
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Promotion
Customer testimonials and advertisement columns are top promotional tools, which have been applied by the company management in the United States. In the presence of many global competitors, the considerations of both traditional and social media channels a for advertisements is necessary. Also, other promotional activities are sponsoring, samples, celebrity endorsement, and a comprehensive content regarding the skin beauty and tips on different magazine advertisements (Schawbel, 2017 ).
Segmentation for Unilever
When conducting global business, the segmentation process should be pertinent. Based on geographical, demographical, psychological and behavioural factors, the company has created different segments, In the United States; the company has set the large customer base and created these segments. For Instance, in the geographic segment, the management has focused on North America and its regions. Also, regarding the demographics, age, gender, sex and income level a are important factors. For Instance, the company developed beauty product for males and females along with different features and qualities. In the psychological segment, the management integrates with the lifestyle of people in American. There are several social classes, and the company develops products and advertises accordingly. The behaviour segment is triggered by the customer analytics. For Instance, the company derives the buying patterns, user status and attitude of customers to react accordingly (Rosenbaum-Elliott et al., 2011).
Targeting for Unilever
Based on segments, the company targets customers in this market, when shaping the global marketing strategy, the company emphasises on the customer targeting. In the United States of America, the management targets, poor, average, rich, children, adults and senior citizens. The company is targeting different customers for different products, and interestingly, the role of the marketing campaigns in both modern and traditional media channels is crucial. The company has everything for everyone in the market, from babies to elders; the targeting process is quite visible (Rao-Nicholson & Khan, 2017).
Positioning for Unilever
The positioning process of the company is quite visible. As mentioned, the company wants its production top shelves in different superstores in America. The purpose is to increase the market share through positioning, and remarkably, the company is being successful so far. It is a fact that the Unilever has positioned its products in the minds of customers through integrating with customer information. Buying behaviour, trends, attitudes, attributes, buying patterns and many other insights have been considered by the company to the position in their minds. The most important thing is the top position through meeting expectations, which can also make the product different from other competitors in the American consumer good market. Thus, in the global brand marketing strategy, it seems an important factor to consider for a long run (Stefko et al., 2011).
Branding and Advertising Issues About Cultural and Social Aspects for Unilever
Maintaining the brand relevance is a big issue, and Unilever often fails to come up with brands, which are triggered by the cultural values. A big range of customer in America comes from different parts of the world, and it seems tough for them to adopt Unilever products. Furthermore, when considering the standardisation, Unilever faces difficulties in the customization. Due to the different perception of people due to different social values, the customisation may increase the cost. Usually, people have associations with the brand, and lack of customisation may cause the brand failure in the target country. Due to varying levels of understanding and commitments regarding the social and cultural roles, the branding process may be disrupted, for example, when advertising “Dove”, the company has explained the beauty. Due to different cultural and social implications, people understand the beauty differently. Thus, these differences are to be considered by the company to be relevant in the American market. Similarly, when integrating with the cultural issues in the different advertisement, Unilever focuses on the various cultural and social aspects. Ethical marketing or advertisement practices are the best solution for these issues, especially in the American market (Rao-Nicholson & Khan, 2017).
Outcomes of Brand in country for Unilever
The most prominent outcome of the brand in the American market is the consistent, competitive and profitable growth. The company has successfully created a large customer base and products, which also assisted in gaining the sustainable competitive advantage. Despite having big local giants in the local consumer good market, the company has become the first choice of customers. For Instance, the personal care product segment continues the innovation, and the company demonstrate it in the marketing process. This brand is triggered by some marketing strategies which are customer oriented. The performance of the brand has been streamlined through people’s response. Generated revenue from North America and Latin America is 17.3% and 15.2% respectively. It depicts the dominance of the company in this region, and of course, the role of marketing strategies seems worthy, as far as the performance of the company is concerned. People have become loyal, satisfied and assertive, which enabled the growth, sustainability, and innovation as well (Stefko et al., 2011).
Conclusion and Recommendation
The global marketing strategies must be changed with the passage of the time. To link with some new market or industry trends, the most important thing is to evolve and make the outcomes predictable. In this modern digital era, the company must have to adopt some digital tools and focus on customer and market trends derive different insights. Based on new insights, the company can differentiate the product and marketing process and increase the brand performance in the country.
In the end, it is to conclude that Unilever has gained the success due to its marketing. After the successful business operations in the United Kingdom, the company had successfully engaged customers and made the difference. For containing the long-term business sustainability, there is a need to depict a perfect marketing intelligence to come up with things, which are undone by competitors, and Unilever is quite capable of it.
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