Running head: Marketing Strategies of Unilever 1

Marketing Strategies of Unilever

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Date: March 26, 2021
Contents
Introduction.................................................................................................................................................3
Explanation..............................................................................................................................................3
Organizational Structure to Promote Marketing Innovation.......................................................................3
Product Type Division..............................................................................................................................3
Team of Corporate Executives.................................................................................................................3
Geographic Divisions...............................................................................................................................3
Strategic Impact of Major Elements Across the Company...........................................................................4
Mission Statement of Unilever....................................................................................................................4
History of Marketing Strategies of Unilever................................................................................................4
Analysis of Unilever’s Marketing Mix..........................................................................................................5
Products of Unilever................................................................................................................................5
Personal Care.......................................................................................................................................5
Hygiene/ Personal Care Products........................................................................................................6
Nutritional Products............................................................................................................................6
Role of Marketing Team in Product Management.......................................................................................7
Pricing Strategies of Unilever..................................................................................................................7
Price Determining Factors...................................................................................................................7
Pricing Strategy....................................................................................................................................7
Market Skimming Strategy..................................................................................................................8
Place........................................................................................................................................................8
Market Penetration Strategy...............................................................................................................8
Market Segmentation..........................................................................................................................8
Promotion/ Positioning...........................................................................................................................9
Communication with Customers.................................................................................................................9
Marketing and Advertisement Tactics.......................................................................................................10
International Chamber of Commerce – Advertising & Marketing Communication Practices....................10
Codes Related to International Self-Regulation.........................................................................................10
Focusing on Healthy Body Images.............................................................................................................10
Analysis of Marketing Tactics of Unilever..................................................................................................11
References.................................................................................................................................................12
 Introduction
Unilever is a well-recognized name in the industry of consumer goods. Since its
inception, people have a huge trust in the company because of its quality of products and their
availability. The company has witnessed success over the years through its innovative strategies
in marketing so that people come to know about its products even before the launch and wait for
them. Marketing strategies have contributed a lot to the achievement of the goals set of the
company and have brought growth and development for Unilever. (Dirisu, Iyiola & Ibidunni,
2013)

Explanation

There are different marketing strategies implemented by Unilever for the progress of the
company by aligning the whole team and dividing the responsibilities of carrying out
promotional activities on daily basis. The major elements that contributed to the organizational
marketing effectiveness include the following:

Organizational Structure to Promote Marketing Innovation

Unilever is famous for its excellence in every field of business. However, the marketing
departments of the company across the globe are outstanding and serve as the backbone of the
company. Unilever has introduced many in-house strategies for strengthening its marketing
department and while considering the changing demands of the time globally the marketing
tactics remain on continuous modification. (Mirvis, P., 2011)

Product Type Division

Within the production department, the division is made based on the product type. Each
division is responsible for the production, distribution, and delivery of its product at the designed
places so that it can reach the end consumers. The product type division is helping the teams in
better understanding of the customer’s requirements and work accordingly. Majorly, Unilever has
divided its product lines into personal care, foods, home care, and refreshment. Each division is
focusing on the development of its products and working collectively for the realization of the
targets for achieving competitive advantage. (Karp, 2003)

Team of Corporate Executives

To manage the marketing requirements efficiently and developing a strong marketing

mix, the company has formulated teams of corporate executives. These teams are responsible for
the designing, developing, and delivering of best marketing practices within the company so that
the products remain popular and eye-catcher. Through the collaboration and communication
among them, the company can achieve its targets and witness growth on a larger scale. (Smith,
2009)

Geographic Divisions

Because every country has its values and cultural restrictions, the company has
formulated geographical divisions. These divisions are responsible for understanding the
requirements of their countries and formulated the marketing policies and techniques
accordingly. (Beckley, Herzog & Foley, 2017)

Strategic Impact of Major Elements Across the Company

Unilever recognizes the fact that the organizational culture and development model is
important in the smooth operations and ultimate success of any company. Each department plays
an important role in the overall progress of the company. The employees of the marketing
department are highly dedicated and own their responsibilities. The company has provided the
freedom to the design teams along with delivering the responsibility of providing the best
promotional and advertisement content related to the products to the end consumers. The
corporate teams are well aware of their roles and have communicated the organizational goals to
their subordinates. All the divisions and employees work independently in their specific lines of
responsibilities and also coordinate with others to support the formulation of successful
marketing policies. Through freedom in development and designing, the marketing team can
introduce product differentiation through their innovative capabilities and plays a major role in
communicating about the product to the market. All the departments are strongly connected and
contributing their efforts to the development of the marketing mix. (Cherono, 2017)

Mission Statement of Unilever

As the permission statement of Unilever, the company is determined to deliver superior
quality to its customers by catering to them through a vast range including hygiene, nutrition,
and personal care. The ingredients of the products along with their other specification are
communicated to the customers truly and transparently. The same has been informed to the
marketing department and strategies formulated by them depict the honest reviews of the
products. Rather than delivering cheap and inferior quality to its customers, the company is
focused on producing superior quality while keeping in view the price constraints and existing
demands of the market. (Quaranta, C., & Di Carlo, E., 2020)

History of Marketing Strategies of Unilever

Since the establishment of Unilever, its marketing strategies and policies have remained
strong and serve as a powerful tool to make the products of the company popular. Unilever has
never failed to impress its customers through its marketing strategies like meaningful
advertisements, impressive themes, and powerful messages that it delivers through its
advertisements on televisions, billboards, packaging, website, and social media pages. (Reza, M.
H., 2020)
The record room of Unilever is located at Port Sunlight in the United Kingdom. A
dedicated team is appointed there who is responsible to keep the record of Unilever’s art and
archives. The advertisement materials like brochures and flyers are placed there which are dated
back from 1292. It is considered the oldest collection of Unilever. The first-ever television
advertisement of Unilever was S.R Gibbs toothpaste and its recording is still there in the record
room. Other films, images, printed sources, and approved documents are also stored there. The
approved marketing policies for the famous brands of Unilever named Lux, Persil, Lipton,
Marmite, Wall’s, Colman’s, and PG all are preserved there as a history of Unilever and
milestones for the achievement of the company’s targets. (Reza, M. H., 2020)
 Analysis of Unilever’s Marketing Mix
As Unilever is a strong name in consumer products so the reliance of consumers on it is
significantly huge. To maintain the trust of the consumers and winning a greater market share,
Unilever is working significantly in improving its marketing mix. Different strategies and
policies are introduced from time to time to improve the quality of the marketing mix and make
it market competitive. With increased globalization and continuously changing requirements of
the customers along with enhanced competition in the market, Unilever is highly dependent on
its marketing department to promote its products, find the existing gaps and introduce the
product in the market at the right time so that it can be warmly welcomed by the potential
consumers. The elements of the marketing mix include the following:
1. Product
2. Price
3. Place
4. Promotion (Bandara, U., Bhola, P. S., Handajani, Y., Wicaksono, A., & Arini,
D., 2007)

Products of Unilever

To serve the target market effectively and make a long-lasting relationship with them,
Unilever has introduced a large list of products in its portfolio. Each product has its benefits and
serves the specific target market. The product range of Unilever is as follows:
1. Personal Care
2. Hygiene
3. Nutrition (Bandara, U., Bhola, P. S., Handajani, Y., Wicaksono, A., & Arini, D., 2007)

Personal Care
To cater to the larger market base by serving more customers, a huge range of personal care
products have been introduced by Unilever from time to time. These products include soap,
shampoos, lotions, creams, etc. They are formulated after considering the requirements of
potential customers and changes in the climate. The marketing department played a vital role in
this regard by catering to the right market at the right time. The advertisements of Unilever have
the power to reflect a positive image on people as well as a society so people are very particular
about the products of Unilever. Also, its products are environmentally friendly so they have a
strong image in the market. The products are designed based on the existing gaps in the market.
The marketing team distributes the products accurately after understanding the requirements of
the specific area. All the products of Unilever are not available across the globe. They are
available after closely analyzing the requirements of the countries and their regions. The personal
beauty and care product range is as follows:
1. Ponds
2. Dove
3. Lifebuoy
4. Sunsilk
5. Clear
6. Glow & Lovely
7. AXE
8. Rexona
 9. Smile
10. LUX (Bandara, U., Bhola, P. S., Handajani, Y., Wicaksono, A., & Arini, D., 2007)

Hygiene/ Personal Care Products

As cleanliness is one of the necessities of life and Unilever recognizes this fact so it has
introduced many products related to hygiene. These products include washing powders and
laundry washers. The motto of Unilever is to introduce environmentally friendly products that
add value to the clean planet rather than destroying them. People appreciate this effort of the
company and show their support. As a marketing tactic, the advertisements of the company
show the value and advantages of cleanliness and how their products are beneficial in this regard
while developing an atmosphere of people living a routine life and discussing common issues.
The target market gets attracted to these advertisements and makes purchases of the different
products of Unilever for their daily life usage. The product range of home care is as follows:
1. Cif
2. Comfort
3. Sunlight
4. Radiant
5. Wheel
6. Ala
7. Coral
8. Rin
9. Persil
10. Drive
11. Jif
12. Vim
13. Surf Excel (Chen, H. C., & Green, R. D., 2009)

Nutritional Products
To satisfy the taste buds and cater the people belonging to different age groups, Unilever has
introduced nutritional products like ice creams, ice tea, tea leaves, and biscuits. These products
are popular across the globe and each target market gets served according to their taste
requirements and ingredients permissible for them to eat. The introduction of a wide range of
products in the market is a marketing tactic to capture a larger customer base and getting a higher
market share. To facilitate its customers, the company has the following products in the market:
1. Walls
2. Cornetto
3. Magnum
4. Ben & Jerry’s
5. Pure Leaf
6. Continental
7. Carte Dor
8. Cup a Soup
9. Maille
10. Breyers
11. Lipton
12. Knorr
 13. Hellmann’s (Chen, H. C., & Green, R. D., 2009)

Role of Marketing Team in Product Management

The marketing team of Unilever is aware of every market, shop, departmental stores,
supermarkets located across the globe and the footfall of customers over there. Also, they know
the type of customers, their demographics, purchasing power, and preference. For this reason, the
division of products is very helpful for the marketing department. They place the different types
of products at different locations based on the above-mentioned parameters. This distribution
helps avoid piles of unnecessary inventory in stores and warehouses. Also, the right placement of
products supports fewer returns from stores and wastage because of expired products. (Chen, H.
C., & Green, R. D., 2009)

Pricing Strategies of Unilever

Pricing is one of the most sensitive and technical aspects of any business. Unilever being
a strong name in the market has to pay utmost attention while considering the pricing of its
products. There are lots of competitors are present in the market and the company has to match
its pricing with them. For this purpose, the production cost must be controlled so that the
required profits are generated by the company. (Christopher, M., & McDonald, M., 1995)
Price Determining Factors
The pricing strategy of Unilever is very strong as there are lots of factors involved before
finalizing the price of a product. The major factors to be considered for setting a price of the
product include:
1. Production cost
2. Required profit margin
3. Price of a similar product in the market
4. The expected increase in inflation rate
5. Resources utilized to make the product available to the specific region (Christopher, M.,
& McDonald, M., 1995)
Pricing Strategy
Each product is priced according to its specifications and demand in the particular area. As
Unilever deals in consumer goods so rather than formulating a high-end product at a
skyrocketing price, the company is introducing medium-range products at reasonable prices.
However, the company has a range of high-end products especially in its nutritional products
where high-quality ingredients are used to cater to the taste buds of the people. The following
strategies are currently used by the company for setting the prices of its products:
1. Market Oriented Pricing Strategy
2. Premium Pricing Strategy
3. Product Bundle Pricing Strategy (Richard, A., & Annan, E. M., 2015)
Market Oriented Pricing Strategy
The market-oriented pricing strategy is used normally to determine the selling price of
daily use consumer goods. Due to high competition in the market, similar products are already
available and Unilever sets the prices of its products that are not competing able with the prices
of competitors. (Richard, A., & Annan, E. M., 2015)
Premium Pricing Strategy
For its premium quality products, the company sets prices that are relatively higher than
the market. as an example, the price of Dove is high due to the quality of its ingredients and
expertise used for its production. (Richard, A., & Annan, E. M., 2015)
Product Bundle Pricing Strategy
Some products of the company are available in the form of bundles. The pricing of these
products is discounted to encourage the purchase impulse of the potential customers. However,
these bundles are not available in routine. Special packaging of the bundle is made during the
promotional activities and to flush out the excess stock in the warehouses of the
company. (Richard, A., & Annan, E. M., 2015)
Market Skimming Strategy
Innovation is one of the core values of Unilever and through this aspect company is
generating higher profits. Market skimming strategy is only applicable for the new innovative
products which have no existing competitor in the market. Currently, the following products are
supporting the company in the adaptation of market skimming strategy:
1. Pond’s Age Miracle Cream
2. Flora
Currently, there is no prominent competitor of Unilever in the market for the above-mentioned
two products so the company is enjoying the freedom for its price determination along with
delivering a superior quality product in the market. (Christopher, M., & McDonald, M., 1995)

Place

Currently, Unilever is operating in one hundred and ninety countries of the world. Each
country has the products of Unilever according to their taste, requirements, and
affordability. (Dutilh, C., 1998)
Market Penetration Strategy
The affordability levels and taste of people are different from region to region. Some countries
are relatively less developed and do not afford high-end products. To cater to their requirements,
Unilever has low-end products too. These products are used to grab higher market share at
amazingly low prices which competitors cannot beat. The low-end products of Unilever include
the following:
1. Lifebuoy Shampoo
2. Lifebuoy Soap
3. Pearl Dust (Dutilh, C., 1998)
Market Segmentation
As the requirements of all markets are not the same and it is not possible to serve each
individual according to his requirements so the company has segmented the market while
considering its resources and requirements of its target market. the following strategies are used
for market segmentation:
1. Living Standard Measures
2. Socio-Economic Class (Zhang, L., & Fan, Z., 2020)
Living Standard Measures
By using this strategy, Unilever has divided the market into different groups based on the
living standards and disposable income of the residents. For example, in underdeveloped
countries, products like Dove, Carte Dor, Magnum, etc are not suitable. There is no target market
for these products in these areas. Lifebuoy and Pearl Dust are relatively suitable for them.
Similarly, in the market segmentation where high-end people are residing with higher disposable
income and social status, products like Dove are best suitable for them. (Zhang, L., & Fan, Z.,
2020)
Socio-Economic Class
By using this strategy, Unilever has divided the market into three categories namely low
class, middle class, and upper class. The requirements of each class in different from the other so
the products are targeted based on the class level. (Zhang, L., & Fan, Z., 2020)

Promotion/ Positioning

As far as positioning is concerned. Unilever does not stick to a single strategy. It keeps on
changing the motive according to the product specifications and mindset of the target market.
For example, the washing powders of the company come with different slogans. Normally these
slogans are dependent on the type of marketing strategy planned for the product and set its image
in the minds of people. The slogans of some washing powders encourage cleanliness while
others prefer to become dirty as hard work involves dirt and then its washing powder will make
the dirt disappear. (Jansen, K., 2018)
The concept of positioning is very closely linked to marketing tactics. As it develops the
image of the product in the market so marketing advertisements specify every aspect of the
product and how it is useful in daily life. The atmosphere developed in the advertisements is
based on the target market of the product and emphasis on its advantages. Since its inception,
Unilever is a firm name in the industry of consumer goods so now it has gained the trust and
loyalty of the customers and needs fewer advertisements to make its name. The advertisements
are focused on publicizing the product. (Jansen, K., 2018)

Communication with Customers

A marketing strategy is a tool for Unilever to communicate with its customers and inform
them about the products and their benefits. Also, it is a way to address various issues of the
customers and suggesting them ideas to resolve them. The principles followed by the company to
build its advertisements are as follows:
1. The advertisements of the company must reflect genuine products to maintain the trust of
the customers. Transparency in communication is a must and the messages delivered
through the advertisement to the customers should be meaningful to build a long-lasting
relationship with them.
2. All the products manufactured by Unilever must be safe for use by human beings and
healthy for the environment. The ingredients must be clearly stated and any
associated risk must be mentioned so that the customers are informed before use.
3. The nutritional values of the products are calculated carefully and customers are informed
about them through packaging and advertisements. Also, it is ensured that the beauty
products are harm-free and friendly for use.
4. Apart from television advertisements, other communication channels are also available
for the customers. A helpline is available to gather the feedback of the customers and
improve the quality of marketing channels. (Jansen, K., 2018)

Marketing and Advertisement Tactics

 As a seller of consumer goods having a motive of the strong customer relationship,
Unilever has adopted responsible marketing and advertising strategies where the common lives
are focused rather than portraying the fancy lifestyles. Through its marketing strategies, the
company is promoting the benefits of using its products and conveying moral messages to uplift
the values of society as a whole. (Hasan, M. M., 2015)
Unilever understands the fact that marketing tactics have the power to bring behavioral
change to society. Through its innovative ideas, it highlights the common issues of the society
and opens the minds of people to think positively and support one another so that the community
can rise collectively. The following examples strongly depict the marketing tactics of Unilever:
1. The change in the name of its famous beauty cream from “Fair & Lovely” to “Glow &
Lovely” is breaking the stereotype of white as a beauty symbol.
2. The campaign of Dove for real beauty challenge is also changing the mindset of people
regarding obsolete beauty standards
3. Persil’s campaign of “Dirt is good” depicts that getting dirty is natural for children and
children should not be restricted to play in the mud as it is a part of their growth and
development.
4. To save the natural resources, the campaign of Rinse focuses on using one bucket of
water to rinse the clothes rather than using so many. It helps in saving water. (Hasan, M.
M., 2015)

International Chamber of Commerce – Advertising & Marketing Communication

Practices
Unilever believes that the marketing tools must be used with decency and honesty. For
this purpose, the company is following the ethics code of the International Chamber of
Commerce related to Advertising and Marketing communication practices. As per code, all the
advertisements must pass through the basic ethics of being legal, and truthful. Unilever is
strongly following these requirements and implementing them in their advertisements and other
marketing campaigns formulated across the globe. (Muhcină, S., & Popovici, V., 2008)

Codes Related to International Self-Regulation

As per the company, the need for international self-regulatory codes is there and for this
purpose, the company has approached the International Chamber of Commerce and World
Federation of Advertisers to develop the principles regarding the content of advertisements.
These principles need to be integrated into advertising and marketing self-regulatory codes and
apply them across the globe. Also, the company is following a separate set of responsible
principles regarding the advertisement of food and beverages marketing. The food products
suitable only for adults do not focus on children in their advertisements to reduce their
temptation for the kids. (Muhcină, S., & Popovici, V., 2008)

Focusing on Healthy Body Images

Unilever believes that people idealize the models and actors performing on media and
take inspiration from them. Owning this fact, the company has restraint the hiring of “zero-size”
models in its advertisements. As per the policy of the company, a model must have a body mass
index between 18.5 to 25 which is considered healthy according to World Health Organization
guidance. The stated level of BMI is considered healthy and gives the inspiration to the viewers
to remain healthy rather than skinny and look weak. (Petty, R. D., 2014)
 Analysis of Marketing Tactics of Unilever
Unilever is an old and well-established name in the consumer goods industry. To attract
the customers and gain their loyalty forever company has formulated marketing policies and
strategies which target its potential customers. Rather than portraying the images of the fancy
world which is far away from the realistic lives of the common man, the marketing campaigns of
the company focus on daily routine matters. Through its advertisements, the company conveys
powerful messages to its customers which help enhance the moral values of the people and a
better understanding of small routine matters which are important but neglected. In short, the
marketing tactics of Unilever are outstanding and eye-catching for the people. Individuals learn a
lot through their advertisements. Also, depicting the product correctly in front of the customers is
another marketing strategy of the company. It does not sell the products by hiding the truth or
making a fake image. (Hussain, J., Shahzad, S. K., Sadaf, N., Irshad, S., & Ahmed, R. I.,
2020)
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