International Marketing Strategy free essay sample

According to Catherine (2011) when the business is in need of expansion and it has saturated the domestic market it goes for broader sector namely the international market. Thus the concept of international market has grown. Therefore, the international marketing strategy is somehow situational and more practical. As the product are being closely monitored by the consumers and their communities the quality and strategies followed by the marketers are also distinctive and various in nature. Finding all these scenarios any one can assume the continuous transitions of business conglomerates. As any business enters the international market arena it gets involved in different situations which are distinguished in nature as well as demands more strategic divisions of decisions program and other business program attires (Miller, 2008). In this paper, the Unilever will be focused from the different strategy of the international marketing in different market to achieve the target market in the international business from the two markets comparison. We will write a custom essay sample on International Marketing Strategy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page March (2010) argued that, the international organization has different strategy to compete with the competitors in the global market. The carefully chosen strategy, therefore, is a core competitive part in the international marketing of goods and services across the world. 2. Company profile According to Unilever Website (2012), An Anglo-Dutch Company Unilever is now one of the largest consumer goods organizations among all the subcontinents in the world. Therefore, around 247000 people are employed herein Unilever and count a revenue of around $50000 in 2010. According to Meng (2009), the potentially expert Unilever is thus dominating the big part of the world’s largest producer of consumer goods. It has two counterparts, namely Unilever NV in Rotterdam, Netherlands and Unilever PLC in London, United Kingdom. Both the parts have the same directors and same leadership activeness. Under the worthy leadership both the part work efficiently and fighting against their rival part likes Nestle and Proctor amp; Gamble. In this competitiveness the world class marketing strategy has given Unilever a competitive edge over the rivals and other aging consumer goods companies across the world (Cyert, 2011). Considering the history we get that Lever Brothers was established in 1885 as soap factory. Initially focusing on a specific product Lever Brothers have focused on the consumer foods later on. Basically they merged with the Margarine Company Unie and then stated business over 40 countries. Some key factors about Unilever * In 2011 Unilever has a annual turnover of $40 billion * 147000 people were employed in Unilever through the world in the last year * Everyday Unilever products are chosen by 160 million families for consumptions * In 2011 Unilever has invested $450 million for research and development * In 2011 they have invested $70 million for the projects in different communities Unilever brand category management: Unilever Source: international business week, 2010 The emerging trends of Unilever has contributed its fast pace in the international markets along with the other fierce rivals. This is how the Unilever is now an established conqueror in the history of world’s business. The first world war, the second world war and various civil wars and rebellion across the world have affected the way of moving. But overcoming them still Unilever is the most growing company on earth. 3. International marketing strategy The Unilever has developed its international marketing strategy considering the variables which is related with the human behavior towards product. Therefore, as international company Unilever sets international marketing strategy through the consideration of the market, consumer behavior, cultures, customs, economy which are different from one country to another country. However, to assess the international marketing strategy of Unilever, the market of India is compared with the market of Hong Kong to bring the better understanding of the international marketing strategy. 3. 1 Market saturation As the companies actualized their profits in an area and find little scope to expand the product line and profit strategies over the certain areas, they go for other sectors. And this is international business field which enables them to find newer ways to attract the customers and potential consumers. Unilever has also taken necessary initiatives regarding these market saturation alternatives. Unilever has found the international customer groups as more lucrative than the domestic markets. Thus they strive to capture the customer groups of the Asia, Asia-pacific region market. But at the same time there exist some operating threats regarding the business in strategic divisions (Doyle, 2011). For an example, Unilever has developed different products and marketing campaigns during the several years to scrutinize the market. In that sense, The Company has developed Sunsilk product and this product has been oiled in the India. But, when it launches in the Hong Kong it has changed its strategy to market the products in the Honk Kong market. So, to set the international market saturation the strategy need to adapt considering the nature of the country. . 2 Coping with the global Environment: As the consequence of the competition, Unilever is focusing on different strategies in the global working environment. Notwithstanding, the nature of competition is different based on different types of goods a company produces and the types of products a company actually market in the global environment, the global competition is increasing in a very fast pace. In this rega rd, the Unilever faces the global environment from the two different forms. One is Microenvironment and the other is Macro environment. 3. 2. 1 Microenvironment Unilever considers microenvironment to adapt the marketing strategies in the global village. Therefore, Unilever try to focus on the company, suppliers, marketing intermediaries, competitions, publics, and customers as the micro environment. In the international marketing strategy, Unilever is concerned to package and customize in the Indian, Honk Kong, and Bangladesh market. However, the Hong Kong market is differs from the Indian market. In India, Unilever considers the reasonable price which is less than Hong Kong market, whereas the price for same product is higher in the Hong Kong market. In case of Bangladesh, Unilever enjoys the leading advantage in the market as the company has captured the major market share. For example, in Bangladesh every person prefers to purchase Unilever product. For that reason, the customers are focused on the different manner of the microenvironment. Customers Publics Marketing Intermediaries Competitors Unilever Suppliers Figure: Microenvironment of Unilever. Source: Sales promotion (2011) Components| India| Bangladesh| Hong Kong| Suppliers| Third Party| Third Party| Third party| Competitors| Merico, Nestle, Pamp;G| Merico, Nestle,| Pamp;G, Nestle, RB| Marketing Intermediaries| Agencies and people| Different Agencies| Agencies and people| Customers| All customers| Urban people | All customers| | | | | 3. 2. 2 Macro Environmen In the operation of the international marketing strategy, Unilever try to focus on the larger macro environment to bring the opportunities. Therefore, Unilever find the six factors of the macro environment like demographic, economic, natural, technological, political, and cultural. For example, the Dove shampoo has been marketed in the Indian market and Hong Kong market. The marketing strategy was not the same in the India and Hong Kong. The Indian market is considered to serve lower price as the economic condition is not developed. Whereas, Hong Kong has higher price compared to the Indian market considering the economic condition of the country. But, Unilever expands its operation in Bangladesh capturing the major market share. Finally, the strategy in the different marketing strategy is working which brought the positive result to become the leading brand in the global market place. Economy Technology Unilever Laws and Policies Demographics Social Values Figure: Macro environment of Unilever. Source: Dillon (2012) According to Hinings (2007), global competitors like Nestle and P amp; G are also an ever rival counterpart and they are also adopting newer ways to fight these challenges in the micro and macro environment. Still anyone who is attached to the consumption of international quality goods would recommend and comment about Unilever in the most positive way due to the high customer segment management and supply chain management and other relationship management within the organization. Experts have identified supply chain management however as very important in this regard. The growth share matrix shown below is important— Components| India | Bangladesh | Hong Kong| Social| Involving social action | Performing CSR| CSR activities| Political| Balanced politics and operations| Political Instability balanced with operation| Stable political condition| Technological| Huge supports of technology| Low support of technology| High supports of technology| Economy| Developing economy| Developing economy| Developed economy| Laws| Maintaining company laws and ordinance| Maintaining company laws and ordinance | Maintaining company laws and ordinance| Source: CIA Factbook, 2011 The globalization of the domestic business can facilitate very rare advantage for a company on this world. This is how a company in the global place should act in a more situational form so that they can conquer their rival counterpart. 3. 3 Market Segmentation The Unilever tends to look on the market segments through the consideration of the consumer wants, resources, locations, buying attitudes, and buying practices. Therefore, Unilever pays attention to the market segmentation in which the company divides the market into the smaller part. Normally, this company considers major segmentation of the consumer market like geography, demography, psychograph, and behavioral. For an example, Unilever consider benefit segmentation in the international marketing and searches the behavioral buying pattern of the consumer to implement best strategy to the targeted customer like, the customer of the Dove moisturizing cream and Lux in the India and Hong Kong. Recently, it started huge promotion to promote Vaseline in Bangladesh and got success in the promotional plan. 3. 3 Market Positioning According to Doyle (2008), the international market positioning needs to assess the value proposition of the specific markets. Therefore, Unilever focus on the value proposition to achieve the products position in the market. To bring the market positioning Unilever believes that, the products and services are produced in the factory but, brands are produced in mind. For that reason, Sunsilk is positioned with the slogan of everyone has beautiful hair. However, positioning techniques of the Unilever is designed to achieve the customer buying decision. Unilever believes customer don’t try to evaluate products again and again. Therefore, customer automatically buys products from the past experience and brand massage. Unilever tends to set the position on the customer mind considering the perception, impression, and feelings in line with the consideration of the competitors. To implement positioning the company considers the following facts. 3. 4 Market diversification Jaworski (2010) argued that, one of the most important part and cause, why Unilever has entered international trade is the market diversification. After properly segmented market a marketer perhaps needs to find the most influential niche part. Different studies on Unilever show that main strength of Unilever is identifying a vacuum and anything specific and diversified may facilitate a proper click there. From this perspective now the world’s largest merger is successfully conducting and coordinating product development. Unilever has invested tens of billions of dollars to find out the best diversified markets in the world for the development of their new products. But other sees this investment to some extent improper. Though being a consumer good in different countries Unilever has focused on the service foods in others. These kinds of diversifications have given and bestowed Unilever with different types of strength and weakness. 3. 5 Economies of scale James (2008) argued that, another very important issue is the economies of scale. To reduce the production cost Unilever has found out some of the crucial ways to support their products quality and let the cost less than any other company production. This has, however given the strategic business unit (SBU) to think comparatively standard than any other product case. For an example, the economy of India is more difficult than the Hong Kong. In addition, Hong Kong has higher income levels and developed infrastructure to operate the business. But, India has poor distribution channel and low income levels. 4. Global marketing strategy analysis: Unilever has adopted various global marketing strategies in order to lead the global market. According to Craig and Douglas (2009), among these strategies the market information management is one of the core part Unilever has always processed and adopt. The market information analyses are too important for knowing the market trends and the market environment. International framework followed by Unilever— Source: International framework by Craig (2000) and Kumar (2000). However, the market analyses give the marketer and investor with different insights about the going concerns about the customer demands and needs. Therefore, the information management can clearly tell which parts are to be modified and which parts need to be reorganized for the betterment of the product development. Hutzschenreuter (2008) claimed that, Unilever has already invested a heavy amount on the market research portion in order to get the actual insight about the customer and their buying patterns. For an example, the international marketing strategy of Dove shampoo has got focus in the India and Hong Kong. First, the Dove shampoo is brought in the Indian market with massage of beauty for all women. Secondly, Dove is marketed in the Hong Kong market with the real beauty massage which is concerned in the international marketing. (See Appendix F) 4. Cultural differences If the examples of different cultural musing can be followed then it can easily be said that Unilever is liberal to any distinguished culture across the world. This cultural difference has blessed Unilever with newer thinking. This has let them reengineer their sectors pertaining to the production, market mix and promotion (Morgan, 2009). For an example, the marketing technique in Brazil and United States has different appr oach due to the cultural difference. In Brazil, Unilever set target to whole market rather segmentation. In this case, the skin discrimination is not mentioned as well. Unilever total brand shares in the market: Source: Sale Monitor (2011) 4. 3 Reaching the remoteness The developing world is suffering from various kinds of limitations including bad communication system. Therefore, this is one of the biggest barriers for the international trade. Along with other rivals Unilever has the same difficulties. But, this is contrasted by Berthon (2011) as, the wisely taken steps and carefully selected distribution network have contributed the continuous profits. For an example, a corporate symbol Unilever has launched its own product delivery Lorries and various vehicles in India and Hong Kong. This has fostered the way of distribution. In spite of having the corporate branding through various accessories the remoteness still is far behind where the market niches are still not captured. 4. 4 Logistic system Unilever’s logistic system is considered to be one of the best logistic systems for distributing products. In the Europe and Asia Unilever has invested more than $50 million for the development of the distribution through a dynamic third party (see Appendix D) logistic system. This has given Unilever a higher level competitive edge over the other competitors in the market. But some analysts have criticized the way of designing the logistic system which is only oriented to the wholesaler and retailer. 4. 5 Proper scrutinizes of the customer demand As the customers are different based on the different culture, Unilever has tried different distinctive researches on the consumer demands related to various situations and got a glorious outlook. Hoffman (2008) stated that, though there were some silly failures, still the ultimate step towards launching a product is always successful. These types of initiative are rare among other marketing strategies which have distinguished Unilever from the competitors in the Hong Kong and India. 4. 6 Distinguished markets: Along with the other 400 brands Unilever has chalked out some plans that have modified the way to capture larger share in the markets. Global strategy designed for Unilever is Aligned Organisation Disciplined Execution Clear Growth Strategy Source: Unilever global strategy design (2011) Unilever has designed several marketing styles for the new markets, some of them were really boosting. Aulakh (2009) mentioned that, there is significant characteristic in the business formula design. Therefore, there is a combination of three parts. Each of which has a distinguished effect on the product strategy development. Clear growth strategy denotes the core growth technique Unilever follows globally for all the markets. Clear growth strategy is then combined with the aligned organization, who contributes to logistic system and quality control unit of the Unilever. After that the successful execution is executed. 4. 7 Marketing Mix Every company in the international arena follows some distinguished marketing strategies; according to some experts the distinctive ways of marketing mix has given the Unilever a way to successful business operating system. 4. 7. 1 Product Lages (2010) claimed that, there are 400 brands of Unilever products it has some diversification. Some of the well-known products brand around the world are rexona deodorant, axe spray, pure it, lux, clear, close-up. Some experts have recommended some product omission or development to concise the marketing strategy for greater profits mechanism. Still, the carefully chosen product category is very crucial points why Unilever has made an immense success. The distinguished products are the main strength of Unilever in general trade (GT) arena (see Appendix H) 4. 7. 2 Price The pricing strategy is like a push strategy followed by Unilever worldwide. The price strategy is mingled with the cultural differences and customers affordability. Pricing are basically based on the product distinction. But some experts say that the push and pull strategy should be integrated to provide long term relationships with the suppliers and the consumers simultaneously. However, the pricing strategy is critically accepted in terms of niche market. 4. 7. 3 Place The distribution of the carefully designed product gives the Unilever a competitive edge over the other international brand. The place choosing seems to be a very difficult task for the international business conglomerates. The business expansionary activities are also worth-mentioning of Unilever. This is the way the experts have denoted why Unilever has mastered over others. But in the developing countries the distribution network is still low-powered to capture the unsorted market segments. 4. 7. 4 Promotion Unilever is committed to provide with the best promotional activities among the other rivals. The close-up TV commercials (see Appendix B) with the youngsters have influenced the young segments of the markets all around the world. Again the same toothpaste category like personal care(see Appendix E) the Pepsodent has influenced the upgraded market with a view to having both niches under the same umbrella (Patterson, 2003). Experts have also identified the technique of assuming the distinguished culture of the operating countries which have enabled the Unilever to get emotionally touched with the customer of the special segments. Again, for an example, the beauty contest named â€Å"Lux Superstar† is another concept which has enhanced the sale of Lux by 20%. These are some of the crucial aspects. At the same time, some critics have seen the arrogant promotion as a threat to their traditional cultural practice. Nonetheless, the promotional activities used by the Unilever are a brain-child of proper research Following figure shows how sales has comparatively increasing compared to customers: Source: Euro Monitor Unilever (2010) 5. International marketing concept: Basically Unilever has focused on the domestic business in 1917, but afterward it was more than the domestic border. And now Unilever is one the largest growing concern in the world. But before entering the international sector they focused on some key aspects like 5. 1 Cultural adaptation According to Katsikeas (2010), Unilever has always focused on the cultural differentiation of the different countries all over the world. Moreover, Experts have already made assumption over the future estimation of the Unilever’s share in the market and it is more than any other counterpart. Customers do not suffer from shopping complex (SC) now (see Appendix I). In spite of having this cultural adaptation, in some places of the world are yet to mingle with. However, with this little bad stroke Unilever is successful in marketing the product accessories in different markets of the world. For an example, market segmentation is not needed in the African counties. For that reason, it brings the cultural difficulties in the global marketing strategies. 5. 2 Evaluation of the strategies According to some experts the Unilever has partially taken the decisions for the welfare of the corporate society only. Some of the key aspects of the evaluations are as follows- The cultural mingling is not for holding the culture, rather it is a new way of strategic marketing Some of the production are not environmental-friendly like the Personal Products (PP). (see appendix C) The carbon emission rate is increasing day by day. In spite of having some partially blue aspects Unilever’s marketing strategy are sold off all around the world. Critics say some weakness in maintaining customer relationships in some geographical areas. 6. Recommendation: Lages (2009) argued that, strategic bureaucracy is very important in business. And the multi- national companies are following some drastic efforts in order to deliver their products in the right time and at the right place. Thus the recommendation focuses on The successful distribution of the products within the market segment which paves the way to successful marketing pattern; A carefully designed logistic system can give the company a strategic advantage, which is the biggest challenge nowadays, faced by the multinational corporation. Maintenance of customer relationship management (CRM) through rigorous assessment of customer needs and wants through fast moving consumer goods(see Appendix G) All kind of technological advancement for all the markets to maintain a balance of marketing strategy and quality control Identifying potential threats from the change in the environment Analyzing competitor’s strengths in the same niche market using updated marketing intelligence. 7. Conclusion However, Unilever has some competitive advantages in some of the areas of business around the world. The international standard designed and customer oriented product supply chain is a specific characteristic of Unilever. Market analyses, market research are also some of the key areas Unilever has already grown its focus on. These types of initiative shave paved the way to a greater development in the international trade over the boundaries and to the remote village of country like Peru through an integrated marketing concept. 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