1. 0 IntroductionUnilever Srilanka is one of
0 IntroductionUnilever Srilanka is one of the leading FMCG business entity in Srilanka, which offer 29 market leading brands. Compared to other companies in Srilanka, Unilever Srilanka has one of the most complex product and brand portfolios, in classification of home care, Personal care and foods, and this illustrates the concept of “house of brands” by ( Philip Kotler et al., 2012) The company was Established in Srilanka in 1938 together with Sunlight, Lux and Pears Brands . But today Unilever Srilanka Produce majority of their products locally which accounts for 95% from their total production. The Company’s Commercial Principle is to make sustainable living commonplace. This Sustainable living Plan will be an initiate to differentiate the company’s growth from environmental effect, whereas it will increase the positivity towards the social impact.
The company’s major business focus has been classified into food, homecare and personal care. Under each category there are category brands , under which there are product brands and in some categories, individual brands are offered. Some of the major brands in the company’s personal care Category include Axe, Closeup, Dove , Lifebuoy, Lux ,Pond’s, Rexona, Sunsilk, sunlight, Vaseline, Clear, Fair ; Lovely, LAKME, Pears.The report will only focus on the Vaseline brand skin care product promoted by Unilever Srilanka.
This report provides an analysis of how the selected marketing strategy will generates target customer to achieve the marketing objectives set for the Vaseline brand and recommend ways to measure and improve the performance of the brand in the selected market segmentation.. Methods of the analysis include target market analysis, competitors as well as environmental analysis such as SWOT, PESTEL.
. Other aspects include marketing mix of the firm, buyer behavior and market position of the company.( Kotler 2003) Defined Market research defined as the collection .
collation and analysis of data relating to the marketing and consumptions of goods and services .data will be collected through primary and secondary research methods and it can be either qualitative and quantitative in nature. Recent Annual reports of Unilever Srilanka will be used to collect the statistical data such as sales figure and market share. telephone interview and observations methods are used to collect the first hand information regarding the company and brand values. Results of data analyzed show that the company designed its marketing mix in order to meet the target customer demand in particular concentrate on product mix, and extra promotional strategies and pricing strategies implemented to keep the available customer retained.It is assumed that while trying to expand total market size of Vaseline , unilever Srilanka can actively defend its current business by means of occupying the most desirable market space in consumers mind , making the brand almost impregnable through continuous innovation in terms of identifying a new segment and parameter to satisfy the niche market by innovating herbal and identifying a new segment in the skin care products.
The limitations of the study reveal that this report concentrating on selected one particular brand from the company. But Unilever skin care product range varied from Ponds, Dove, Fair ; lovely which also segmented for personal skin care needs of the women which is unobserved. 2.0 Situation analysis Situation analysis describes the market, the company’s capability to serve targeted segments and the competition.Unilever Srilanka plays a major role in Srilankan FMCG market. Considering the personal and skin care industry , Srilanka still at a very developing condition.
It is estimated that the products fall under the category of skincare specially the body creams and lotions are used by a mere of 25% of population with hair care penetration is at a higher rate of 70% . This figure disclose the complete performance and growth of Vaseline products within the market. (Sharmila is the Marketing Director – Personal Care of Unilever Sri Lanka– Compiled by Ruwandi Perera interview The estimated size of the skin care product market in Srilanka is expected to grow significantly in the subsequent years. International trends and heavy advertising campaigns are the main cause for this development.
But Competition is progressively more powerful since improvement in current lifestyles, conscious of skin care needs , more entrant to the industry are the main issues addressed by Unilever. So it is important for the company to carefully analyse the target specific segments with valued features and plan a product to keep the brand power to grow in the selected market place. Analyzing the business involves examine the possible internal problems and determine the factors which are external to the business that could affect its strategy . in addition finding the organizations strengths and capabilities its commercial and operational advantages and wider general pressures and constraints on the business.2.1 SWOT ANALYSIS SWOT analysis is a tool for auditing an organization and its environment.
It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. (Philip kotler pg 102)The following table illustrate the SWOT analysis of Unilever Srilanka For the Vaseline Brand Strengths Weakness1. highest brand recall2.
Leading Distribution channels3. Economies of scale4. Higher market share5. Production and supply chain advantages6.
Creative marketing procedure7. Best promotional methods8. Research and Development 1. Heavy competition2. Restricted target market3. Fake products4.
Narrow business diversification5. Dependency on retailers6. Poor marketing communication7. Limited range of Vaseline productsopportunities Threats1. Increased marketing communication2.
Differentiated products3. development of markets4. Herbal concept5.
young generation6. environmental concern 1. Increased competition2. Economic recession3.
Product imitations4. New entrants 5. Lack of consumer advertising6. Strengths1.
Highest brand recall- with a dominant market share Unilever has established their business operations nearly 190 countries all over the world and has a universal footprint with a highest brand recall element surrounded by the world wide customers. Vaseline Skin care products too has gained prominent name from the consumers. 2. Unilever Srilanka has its own Research and Development center , and it take initiatives to develop innovative product lines and product mix to the target different consumer segments ahead of their rivals to enjoy the competitive advantages. the accurate analysis and development of products and specific brands enable the company to deliver relevant and efficient content to the market. 3. Broad product mix.
Unilever’s brand portfolio and range of product diversification has been a strength for decades and indicate the growth formula of the business . The company has extended his portfolio through acquisitions and mergers which leads to growth in organizational sectors and in the revenue structure of the company. Also extensive distribution channels allow the brands (Vaseline) to take the shelf presence in all the supermarkets and stores all over the place 4. Unilever Srilanka ‘s most of the products are manufactured locally , since economies of scale could be enjoyed through production efficiency which in turn related to adopt competitive pricing strategies for the products that are offered to the market.
The internal strategic factors in this section of Unilever’s SWOT analysis show strengths that the company can use to sustain global growth and success in the consumer goods market.Weakness 1. Unilever Srilanka operates in a highly competitive market and face the direct competition from the other dominant players of FMCG market Like P; G , Nestle and a range of local players who take a certain percentage of share in the market. Although the brand equity is stronger for Vaseline the market segment that is existed is over competitive and saturated where other brands like Nivea, Johnson , Lakme and some other brands also present in the segment of Skin care.
2. The major weakness of Unilever Srilanka is that the nature of products could be copy from other competitors. Although the company invest huge amount in their product development procedures, Other organizations can come up with the imitation of products such as Rexona , Dove, Lux. The Main Issue of Vaseline Brand is the counterfeiting of the trademark.
3. Though it has broader product mix , Unilever’s Diversification is limited in their business boundary. Natural and traditional skin care products are replaced especially in the consumer mind set now adays where this particular segment is untouched by Unilever.
Natural alternatives have emerged in the local market to replace and become a substitute for Vaseline brand. 4. Marketing communication from Vaseline products are irregular and not always periodic , due that fact the company fail to sustain a strong and direct influence on the consumer buyer behaviors, considering that the purchasing preferences are directly influence by the retailers and super market chain which in turn create a problem to push the skin care products other than its core products from the industry. Thus, based on the internal strategic factors in this section of the SWOT analysis of Unilever, the weaknesses emphasize the importance of diversification, innovation, and enhanced marketing efforts.Opportunities? Since there is a demand for health conscious product in the market place Unilever can grab this great opportunity to meet the market need to this segment of customers with a new product range. Alone with the Vaseline Product range Unilever can launch a new product that is specially target for the health conscious consumer segment.? Male grooming sector –it is an area with much opportunity and the trend is emerging in srilanka nowadays Unilever has a great opportunity to address the needs of this segment.
If the company has a strong offering for males, then the brand will start to gear up. Vaseline has good opportunity to have product innovation in this ? Millennial group and their lifestyles play a major role in the unilever’s target market. Focusing on the needs of the Millennial group and providing solution for them will have an impact on the growth and profit of the company. ? Unilever has an opportunity to make its business more sustainable and environmentally friendly to attract and retain environmentally conscious consumers. In addition, developing markets will improve the revenue from the sale of its existing products in the market place .? Heavy social media campaigns will get the attention of the population and comparatively less costly to create an awareness of the products launched. ? The external strategic factors in this section of Unilever’s SWOT analysis point to major opportunities to grow the business despite its weaknesses.
Threats1. Tough competition- the biggest and foremost threat that the Unilever face is the tough competition from its rivalry .this in turn reduce the company’s market share and the performance of the financial criteria. 2. Since Vaseline focus mostly on trade promotions methods it tend to ignore the advertising promotional tool which results in a less consumer attention. 3.
Product imitations also one of the biggest threat to Unilever while local firms can develop skin care products similar to Vaseline also retails can promote their own branded products to the market place. This has great impact on the profitability and market share of Unilever. 4.
Nivea and Johnson and Johnson are the two brands that are competing with Vaseline Petroleum jelly. So the scope for expansion of this product is limited as there are possibility for the innovation of the core product. Based on the external strategic factors in this section of the SWOT analysis of Unilever, strategies must focus on improving the company’s competitive advantage.3.0 MARKETING OBJECTIVES A company’s marketing objectives will be influenced by the corporate aims and objectives of the business which reflect both qualitative and quantitative criteria (Essentials of Marketing Management by Lancaster G ; Massingham, L pg 24) since Unilever’s corporate objectives are the combination of products and markets ,it is argued that the marketing objectives Unilever sets should be SMART in the same way as the overall objectives of the company. David Parameter Define KPI is mainly focus on the attributes of the organizational activities and performance that are most essential for the current and future success of the business ( ebook Key Performance Indicators: Developing, Implementing, and Using Winning KPIsBy David Parmenter pg number 118 https://books.google.
lk/books?hl=en&lr=&id=bKkxBwAAQBAJ&oi=fnd&pg=PA101&dq=key+performance+indicators+and+targets&ots=cYWYe_dYaw&sig=ZowkUbR0EVcpdetSvsI4N2lrgfQ&redir_esc=y#v=onepage&q=key%20performance%20indicators%20and%20targets&f=false) 08/07/2018Based on the company analysis and the SWOT analysis among the issues Unilever must address:• Should it develop a diversified product portfolio to meet the severe competition from the market place for Vaseline Skin care products within next year of time • Developing a strategy to meet the niche segment of male grooming sector and the health conscious segment to increase the market share of Vaseline• How to improve the competitive advantage that the company enjoyed over its rivals to avoid imitation of Vaseline Skin care products.The main objective of Unilever Company is to achieve market share from the target market segment through this marketing plan. The main key metric to measure the main goal of the company would be measuring the sales revenue earned from the new product development and number of units will be sold in the next 8-10 months of time. 3.
1 Objectives Establishing goals for the marketing objectives1. development in market share2. prolong brand value for customers3. new product development- innovationMarketing objectives1. Generate 30% brand awareness within the consumer target market for Vaseline Herbal and Male groom segment by April 2019.2.
Achieve a first year unit sales volume of 100,000 , which represents a projected market share of 10% with Vaseline Brand in the skin care product line 3. Developing new marketing communication activities by 20% by end of June 2019.4.0 Market segmentation 4.1 Segmentation targeting and positioningA market segment is a meaningful buyer groups having similar wants . each segment can be a group of people with similar or homogeneous demand and this will enable the enterprise to have tailor made marketing mix to each segment.
There are two variables that are take into consider to segment consumer markets. Segments that are looking at consumer characteristics such as demographic, geographic and segments that are looking at the consumer response to brands and benefits . after forming the segments it is must to see whether consumer characteristics are connect with each consumer responses.(Philip kotler pg 287)Also not all market segment will give the expected results.
In order to be an effective market segmentation it should have the following characteristics:Measurable, substantial, accessible, differentiable, and actionable. Targeting and positioning Once the company has recognized its market segment the next factor is to identifying one or more specific segments in a given market that the organization can be best serve the most effectively and efficiently . determining the key success factors for operating in each target market segment will occupies a place in the mind of the customers , compared to that occupied by similar competitive products are called as Positioning (marketing 4 author pg 203)Segmentation Targeting and positioning of Vaseline Operating in the mass market is the key success factor of Unilever. Few years back Unilever manufactured single Vaseline product which is the original petroleum jelly , to reach a new number of customers it has modified this strategy and introduced new range of Vaseline products to extending the perception of consumers and its uses in the market place. Vaseline uses demographic segmentation strategy with gender as the parameter.
The total employed person by occupation group Male account for 5.3 million and Female account for 2.9 million. (http://www.statistics.gov.
lk/samplesurvey/2017Q4report.pdf)( Quarterly report of Srilanka labor force survey 2017 ) The main target segments of the company are the group of people who are health and beauty conscious including both men and women. Also behavioral segmentation is another important approach used to evaluate the extent of product usage of the target customer group. based on the buyer behavior and purchasing patterns of the Vaseline products, the company can developed strategies to increase the usage of new Vaseline herbal lotion in the segmentation.
(Marketing Strategy, Text and CasesBy O. C. Ferrell, Michael Hartline pg 137 ) https://books.
18The following table illustrate the segmentation of VaselineSEGMENTATION PROFILE 1 PROFILE2 PROFILE3GEOGRAPHIC DEMOGRAPHICAGEGENDER OCCUPATION Young girlsFEMALEMODELS Mature womenMaleARTIST PSYCHOGRAPHICLIFESTYLE WORKHOLIC FAMILY CENTERED BEHAVIORAL PRODCUT USAGE FORMER USERSSOCIAL CLASS FIRST TIME USERSLIFE STYLE The above diagram identified the key market segment that Vaseline brand aimed at giving the company the best possible chance of meeting the needs of the chosen segment profitably. Almost in all parts of the world, the Unilever products are shelved and are paid huge attention by the customers visiting the stores for routine items like grocery.4.2 Target MarketAnalyzing the company situation and anticipating potential opportunities, broad SWOT analysis , leads to the evaluation of market segment to find out its attractiveness and whether it offers prospects that complement with the organization’s capabilities and resources. (marketing strategy by O.C.ferrell.
Michael,Hartine pg 177) https://books.google.lk/books?id=beBNXXZbEEoC;pg=PA177;dq=selective+targeting;hl=en;sa=X;ved=0ahUKEwiclJifkJDcAhXabisKHYmiAm8Q6AEIKjAB#v=onepage;q=selective%20targeting;f=false 08/07/18Target market StrategyUnilever which has the multiple competencies in many different product categories which use selective targeting successfully. The main advantage of this strategy is the diversification of the company’s risk and the ability to “cherry pick” are the most attractive opportunities discover form the market segmentation of the firm. Unilever offer selective targeting strategy to offer consumers with many different products with food, personal and skin care , hair care products. Differentiated strategy This strategy allow the organization to tailor its Vaseline Herbal body lotion products to meet the requirement of the male grooming sector as well as the health conscious people both male and female in the selected target segments also to generate higher level of satisfaction. It also offers the extra advantage that if it fails to meet the requirements of the psychographic segmentation specially workaholic and the family centered target customer groups , still be able to serve the other segments such as behavioral demographic segmentation .
Being close to the market place this strategy allow the company to keep in touch with the changes n the consumer requirements. New Vaseline Herbal Body Lotion targets :• Main focus is on people who suffer with Skin dryness.• Group of people who look for herbal content chemical free products..• Major focus on the Male and Female grooming sector . Such a position also has a cost , however , as it is likely to stretch unilever’s resources both financially and in terms of managerial time plus the additional costs of devising and operating separate marketing mixes. So Unilever has to be careful that it does not overstretch itself and try to serve too many segments as this is likely to dilute its resources to the extent that no segment is served properly.
However concentrating on the non customer group also an import element in the Target market. Understanding the reasons for the non purchasing habits and eliminating the issues , such as product awareness, affordability, purchasing obstacles, distribution convenience will be a foremost important issue in developing an effective marketing program.POSITIONING Market positioning takes into account the views and perceptions that consumers have about products (Philip kotler pg 308) the final result of a successful positioning is the creation of customer focused value propositions a strong reason as to why the target market should buy our products.
according to Vaseline the first step in the positioning process is to identify on which other brands that it competes with . relevant to the current scenario, Hemas Holding Plc is the main direct FMCG competitor for Unilever Srilanka also satisfy the same customer needs and , has the same category of Product portfolio. Most of the brands of the main competitor of Hemas Holdings Plc are manufactured locally and the Brand “Velvet ”Body lotions offerings are the similar benefits and aspects of the Vaseline Intensive care body Lotion range ( POINTS OF PARITY ).
Also there are few other brands of body lotions that are imported from international markets and available in Srilanka market. Examples: Nivea Body lotion, Himalaya Body Lotion, and HUL Dove Body lotion are also be a part of the skin care industry and being a threat factor to Unilever .The similar features that could find from all the body lotions available in the market place is that , these products are aimed at young and middle age women and it best suits for different types of skin. It claimed that the prolong usage of this product will retain the moisture of the skin and reduced price levels induce the non users to have try over it. Vaseline also believes and promotes the concept of “Healing Power” from their core products. Its positioning is obviously that of caring the skin with its healing properties for a healthy looking skin.
the price ranges of the Body lotions are similar to that of the competitor. So to make a different the company must decide on how many and what type of benefits and features to convey in its positioning to its target market. Also that could not be finding to the same extent with the competitors. (POINTS OF DIFFERENCE) . The New Vaseline intensive care Body lotion mainly target the women and Men , also this product is aimed at for the people who are health conscious who look for herbal solutions for their skin care needs. Though Unilever owns a dominant share in the FMCG sector , compared to other product lines from their product portfolio , skin care penetration is comparatively low in the market place.
The following market map illustrate the positions for the Skin care products take in the market place from the following dimensions.Market maps show the position of variety of products in a market based on the perceptions of customers rather than businesses. There are few attributes can be taken into consideration to position the Vaseline Brand in the market place.
The following are some of the attributes identified to position the brand.1. All Skin Types Vs Specific Skin type2. Chemical ingredients Vs Herbal ingredients3. Hydration Vs Whitening4. High Price Vs Low price5.
Younger Skin Vs Mature Skin6. Men Vs WomenThere are no right or wrong variables and deciding which variables need to be measured is very much a matter of judgment. Unilever can carry out a research using the above mentioned variables relating to Vaseline Body Lotion and prepare many such perceptual maps using various combinations of variables.The following figure shows the hypothetical perceptual map for the body lotion category.
The four brands Vaseline, Dove, Himalaya, and Nivea vary in terms of how consumers view the ingredients ( Chemical VS Herbal ) and the usage ( Hydration Vs Whitening ). Also 3 market segments are represented in the map to show the relationship with the perception of the consumers. Map Consumers in segment 1 prefer body lotions with skin whitening properties. The consumer profiles in the segment 3 clearly describe the nature of people who are obsessed with Skin whitening and moisturizing and they expect immediate result from the products they use on skin. Vaseline brand is well positioned for this segment and it is strongly connected with the marketplace with both these benefits. Himalaya body lotion on the other hand, is seen more balanced together with herbal ingredients and moisture benefits .
Himalaya body lotions could able to generate a good value of share in the market place due to the herbal content. And it still able to gain more sales due to this uniqueness. “Dove” and “Nivea” both are better positioned with respect to behavioral segmentation since both these brands have created a good name in the market. Positioning Statement New Vaseline Herbal Body Lotion will positions itself :”As an herbal chemical free brand which provides solution to the skin problems of both men and women”if the company consistently focus on the brand and deliver the benefits of the attribute it selected, definitely it will succeed and recalled. 5.
0 MARKETING MIXThe Marketing Mix refers to those elements of firm’s marketing strategy which are designed to meet the needs of its customers. There are 4 parts to the marketing mix- product, price ,place and promotion. These are often known as the four ‘Ps’. To meet consumers needs, businesses must produce the right, at the right price, make it available at the right place, and let consumers know about it through promotion.
(Reference)The following table illustrate the elements of Marketing Mix of Vaseline Brand PRODUCT PRICE PLACE PROMOTION• Vaseline body lotion• Moisture and Herbal content • Flip top cap• Available in different sizes • Competitive pricing• Price vary depend on the size of the bottle • Supermarkets• Online stores • Advertising• Social marketing • Print• 5.1 PRODUCT MIX A well organized business will attempt to phase out old products and introduce new ones. This is known as managing the Product mix. With a constant launch of new products, a business can make sure a “vacuum” is not created as product reaches the end of their life. New Vaseline Herbal Body Lotion Vaseline Intensive Body lotions , has been successfully made itself as really distinctive brand from its competitors in terms of market, quality and other features. Innovation of Unilever led into five varieties of intensive body lotions from this brand.
Considering Unilever’s product line Vaseline Intensive Body lotion products are growing slowly. Since it could able to capture only 25% share in the market. So many other brands have emerged in the market place and customers also not seem to be persistent to one brand.
The fundamental reason for the slow growth structure in the market place is that , Unilever has concentrated on single segmentation and the main target is the young women. This segmentation is tend to change their perception and it is heavily influenced by the advertisement and social media networking. If this continues, Vaseline intensive body lotion will possibly suffer with reduction of profit levels through this brand category . by studying the current situation of the branding position it is must take appropriate measures control the circumstance.
When planning the product mix one problem that Unilever encounter is that that it is very difficult predict in practice as to what stage the Vaseline brand is at. A useful technique for allowing firms to analyze their product mix is the product portfolio matrix developed by the Boston Consulting group ( reference) Referring to the above matrix which connect the BCG positions throughout the product life cycle , Unilever being a market Leader in FMCG sector with high Growth market considered to be a ” STAR” , though it has a relatively high market share and enjoys economies of scale and higher profit margins from the other portfolio of the products ”Vaseline Intensive Body lotion resulted with a slow market growth rate due to heavy competition . which considered to be a ” CASH COW” if this begin Unilever will start loose the market share , forced to invest a huge investment to maintain the market leadership. ” Cash cows” Vaseline Intensive moisturizing lotion has become established with a quite stable market share at this mature point in their Life cycle. Same time competitors also take advantage of profits with their own version of products. In order to increase the growth rate for Vaseline Body lotions and to secure the sales the product need to be extent its life with one or more techniques.
The following steps will be taken to stimulate the sales of the product.1. Product modification through quality improvement, feature and style improvement.- launching a product with new and improved functional aspect and features2. Modifying the elements of marketing mix. –price, advertising, sales promotions.
3. Market Modification- entering new market segments.The all new Vaseline Herbal body lotion will build Unilever’s image as an innovator and will win the trustworthiness of the segments which value this new feature. But innovations can be imitated easily at any time by the competitors if so it may not induce sales in the long run. Having a balanced mix of marketing element modification will bring positive sales. Sales promotional methods could be use for quicker and effective results , but extreme promotional activity will tarnish the brand’s image and long run profit performance. On the other hand Entering in to new segment will provide an opportunity to identify the gap in the market place and to augment the basic product growth rate .
Targeting on the male Sector with added features will provide a prospect to generate sales for the new product. (Reference)New Product Development PRODUCT Vaseline Herbal Body lotion is a new initiative that incorporate the Herbal Chemical free attribute for younger looking skin for men and women. Specially formulated for daily use, intensive moisturizer, with a exclusive blend of nutritious and deep penetrating natural and herbal ingredients that promote , moisturize and smoothen extra dry skin. Enriched with Aloe Vera which nourish the skin, Cocoa Butter intensely moisturizes, softens and improves skin texture and, a rich source of Natural Vitamin E, nourishes and boosts the skin’s elasticity.Features: 1. Chemical free Herbal ingredient 2. Moisturize skin3.
Both Men and Women can Use Packaging Packaging includes the activity of designing and producing the container or wrapper for the product.(reference).This is also an important policy to be considered in depth. Packaging is often described as a “marketing tool”. It offers the services of a “silent salesman”. This is because of the ability of package to create attention, interest and desire , in a product among the potential buyers. The packaging of New Vaseline Herbal Body lotion brand will be launched by Unilever in the targeted segment with the brand promise of a new herbal experience .
the new packaging is designed to look good. The bottle contain images and ingredients such as coco butter , Aloe vera and other ingredients to convey the message to the segment in descriptive manner. White and green colours are represent the health and organic aspect in branding strategy ( Referenc e 4 author pg no 314)will be used to give a new look to the new version of body lotion which will induce the perception and give an instinct that this product will provide a better solution for skin care needs.
PRICING price of a product or service is what the seller feels it worth, in terms of money, to the buyer. When setting a price the firm must decide where to position its product on quality and price.The following table illustrate the value concept with relevant to price it fix for the product . the price should Align with the value of the product.
If the price is higher than the value perceived by the customer . the firm will lose its potential profits; on the other hand if the price is lower than the value . https://www.
google.com/search?q=price+should+align+value&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj0iuXe8JncAhWTeysKHThRDKkQ_AUICigB&biw=1366&bih=635#imgrc=7DTyFKIYsS0MFM: (12/7/18)Philip kotlerAdopting a low pricing strategy has led Vaseline to penetrate into the market along with its quality assurance aspects. Also it is true that Vaseline has found to be the cheapest among the other competitive products. Pricing Strategy The main objective of the Vaseline Brand is to increase their market share in the skin care segment. The target share of the market and the expected volume of 100,000 sales are the most important consideration in pricing the new version of Vaseline Product. A good market share is a better indication of progress.
For this Unilever can implement the Value pricing strategy an Penetration pricing strategy. , in comparison to the competitor products , with a view to capture the market. Offering a high quality Herbal content body lotion with a low price will win the loyalty of the customers (reference). The main reason to determine a value based pricing is to deliver more exceptional value than the rivals and to demonstrate this to potential consumers. This strategy will allow Unilever to reengineer its operation without scarifying on the quality aspect and attract huge number of consumers who conscious about the value perceived from the product offer. Also penetration pricing strategy adopts low introductory price to speed up or capture the widespread market acceptance.
In order to launch the new Vaseline Herbal Body lotion this strategy will be used since products can be sold at a very low price. But this strategy is satisfactory , when the consumers accepts the new product as a part of their daily life Price Promotions In order to initiate the sales and draw the attention of the New Herbal Lotion the company can organize special event pricing events at leading super markets and department stores. To give away discounts on specially advertised sales day. The main aim of having a special event pricing is to increase the sales volume of the new product . effective coordination and advertisements of this event will definitely bring the customer to get the advantage of this temporary sales attempt. There are chances that the customers who visit for this event will become the repeat customers if the product delivered the perceived value for the price paid. Or they will purchase regular priced items while shopping for sales items.
special event pricing fails if consumers take advantage of the sales price but don’t become regular customers or buy other itemsDISTRIBUTION STRATEGYDistribution channels are the means by which goods and services are transferred from the manufacture to the end user. Unilever’s products are distributed through its own distribution network channels. It has a broad supply chain management structure which means it does not depend on outsourcing its raw materials for manufacturing process rather every activity is done by its own. The target segmentation for Vaseline Herbal Body lotion’s is widespread and it covers the geographic, behavioral and psychographic segmentation.
Same as the existing product distribution network of Unilever, Vaseline Herbal Body Lotion also will go through the a Two – Level distribution approach where the firm adopt an Intensive Distribution Strategy to facilitates the maximum sales for the product. ( fig 5.3 ) This will cover a wide distribution channels and will be reach all the outlets which placed on nationally such as Airpico Supercenter, Cargills Food city, keells Super, laugh Supercenters, market stalls, drug stores Pharmacies and so on. Where the product will be purchase directly by the ultimate customer.
This will enable Vaseline Herbal Body lotion to seize a certain percentage of market shares from its target market group. Though the firm select a Intensive distribution channel to cover the market, this strategy will facilitate and increase the sales in the short run, and if it not executed properly this will affect the long term operation by persuade the retailers of the distribution channel to compete destructively which in turn create price wars , and have a negative impact on profitability and brand equity of Vaseline. So it is must to consider the store selection and reviewing the channel of distribution periodically . Having E-commerce online distribution channel will increase the sales of the New Vaseline product. E-commerce distribution channel provide a informative and convenient buying procedure for the consumers. Visual representation and online chats will give the ultimate customer an immediate feedback of the product and benefits and product usage will increase the sales . This will save the cost and time involvement in establishing typical distribution networks and staff management, finding retail outlets for the distribution of the product.
PROMOTION STRATEGIES The promotion strategy of Vaseline Herbal Body Lotion is to create a brand awarness in the market for personal care specifically beauty products.Marketing communication are the means by which firms attempt to inform, persuade, and remind consumers directly or indirectly about the product. The promotion strategy of Vaseline Herbal Body lotion is to create a brand awareness in the personal care market. The Brand Vaseline promotes its products in the market with a unique brand image as ” healing Power “and the Vaseline intensive care body lotion ranges are specially formulated to treat dryness of the skin. The target customers for Vaseline herbal Body lotion will the potential buyers of the company’s product, also the new major target segment of male and female grooming sector with whom they look for herbal content with chemical free products.
In order to Promote this new product in the personal care market Unilever take necessary steps to formulate the communication Message which will encourage the potential buyers as well the new target group to recognize and recall the Vaseline brand within the herbal lotions category with sufficient information to persuade the customers to buy the new Vaseline product. (reference) In order to promote the Vaseline Herbal Body Lotion in the market place, the firm can take advantages of some of the Promotional tools PUSH AND PULL strategies such as POS displays, Sales force incentives, Media advertising, in store merchandising ,Personal Selling and so on. Offering incentive schemes with rewards to supermarket chain owners and staffs will encourage the sales to speed up and reach the footfalls during a day or specified timescale.
special discounts are given on bulk orders placed by supermarkets and drug stores where the product is displayed. Also Special display units along with the arrangement of Herbal Body lotion near the cash counters in the super market chains will take a step further to promote the product . Also Mass media advertising has a great impact on the geographically dispersed consumers. Advertising on TV commercial and Social media provides an opportunity visualize the herbal body lotion through the artful use of sound and color with celebrity or public figure with details demonstration of the usage of the product. To measure the effectiveness of advertisements and consumer buyer preferences Social media networks and forums are really useful Unilever always attempt to create events, which instinctively come to attention.
public gets to know about their product. Conducting an Promotional event for the New Herbal Lotion Accompanied with Personal Selling creates an immediate interaction between two people. Consumer often given personal choices and are encouraged to directly respond the product offered. Poster campaigns, flyers, magazines and face-to-face marketing are the strategies which are used by Vaseline Herbal Body lotion to show the target market that is that the brand which cares for your skin and try to solve skin problems with a new innovative concept with herbal ingredients.
New Vaseline Herbal Body lotion “Campaign for Getting Best of Every Body ” will be a successful promotional campaign and the main idea behind is to promote the brand for everyone. 6.0 IMPLEMENTATIONMarketing Implementation is the process that turns marketing plans into action assignments and ensures they accomplish the plan’s stated objectives. (Reference) an exceptional marketing plan will fail if not implemented properly. Marketing control is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments. Unilever will carry out its marketing strategy and achieve its objectives through a variety of scheduled programs.
Marketing Mix: The all New Vaseline Herbal body Lotion will be introduced in February. The following action programs will be use during the first 6 months of time to achieve the stated objectives. • January- The product will launch 5 million trade sales promotion campaign communicate with our dealers to generate channel support for the product launch in February.• February – using Print and multimedia campaigns are used to targeting young ladies and men. This multimedia campaign will be supported by point of sale signage in the Main Supermarket chains.
• March- as the multimedia advertising campaign continues, having a sales promotion campaign such as a contest in which consumers post video in the company’s social media (FACE BOOK) page , showing how they use Vaseline Herbal Body Lotion to unveil their beauty needs. • April- planning for a trade sales contest offering RS. 50,000 cash price for the sales person and retail organization that sell the most number Vaseline Herbal Body Lotion during a four week period, since Month of April is Celebration of New year.
• May – New Point of Purchase displays will be distributed to support the retail chains and outlets.• June- The stylized Print ads and TV commercial are planned to portray the avatars of a Men and Women celebrities holding the New Vaseline Herbal Body Lotion and Promoting the usage of the product to the Target Segment Further customer satisfaction research will be conducted and results will be analyzed for the usage of future campaigns and product development efforts. In order to implement this marketing plan, all the departments which involve in the business activities of the skin care product Vaseline needs to coordinate and contribute to the success on the following manner .Department Activity Marketing and communication department Identify the best marketing tools such as Advertising, sales promotion , and other methods to promote Vaseline herbal product in the market placeResearch and Development center Identifying consumer perceptions to make innovations and developments in the product to be introduced in the market Finance department Work along with the operation department to get cost variable to implement the marketing planHR department Training and Development of Staffing needs Market Research Using market research will helpful to identify specific features and benefits that the target segment value. Feedback from market tests, surveys, and focus groups will help to develop the new product. Measuring and analyzing customer’s attitudes toward competing brands and products, also Brand awareness research will helps to determine the effectiveness and efficiency of the communication message and media campaign.
While customer satisfaction studies help to gauge market reaction to the product. It is necessary to identify the resources required for the accomplishment of the marketing process for each planned activity from the various departments. Time, cost, manpower, information are the main factors needs to take into consideration for the implementation process.
CONTROLThe company is planning to have tight control measures to closely monitor the sales and cost . this will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs of deviation from the plan include monthly sales and monthly expenses Unilever will use Annual Plan Control Mechanism to examine whether the planned results are being achieved within the time frame. This approach applied to all levels of the organization and, the sales manager, sales rep , product manager, everyone is committed to attain specified levels of sales an d costs. Budgets, sales analysis, marketing expense budget which are used by the company to control the marketing activities of the introduction of the new Vaseline Herbal Lotion.
The following table illustrate the forecasted marketing expense budget The marketing expense budget forecast will be apply as a means to maintain the department proceeding with target and present with indicators when controlling of measures and modifications are needed for the proper implementation of the marketing objectives. In the beginning of the product introduction the marketing expenses are tend to high and when product reach it’s peak the expenses will start to reduce. MARKETING EXPENSE BUDGET JAN- MARCH APR- JUN JULY-SEPAdvertisement 500000 425000 350000Campaign Cost 50000 35000 22500Event Organization 150000 110000 92500Sales Promotion 430000 364000 315300Having a sales forecast is very important for the company to estimate the sales since will tend to increase when the marketing budget allows. The following figures taken in to consider from the pharmaceutical stores and main supermarket sales for the Vaseline product. SALES FEB- APRIL MAY -JULY AUGUST-OCTOBER pharmaceutical stores 310000 502500 770000main supermarket 520000 857800 1052000TOTAL SALES 830000 1360300 1822000DIRECT COST OF SALES FEB- APRIL MAY -JULY AUGUST-OCTOBER pharmaceutical stores 260000 492200 716100main supermarket 410000 786500 887300TOTAL COST OF SALES 670000 1278700 1603400 At the introduction phase of the Vaseline Herbal lotion sales are seems to be low, since the product is new to the market, it is must to undertake heavy advertising campaign to create the awareness among the target customers to promote the product. Graph excel While carry out the monitoring process, still if the firm find any difficulties in achieving the marketing objectives .
it must take corrective action to modify the marketing mix of the firm, problem could be arise in terms of poor demand for the product, fail to reach the target customers may become the biggest threat for the firm and which me lead the product failures. REFERENCE LISTKOTLER .K, KELLER. K, KOSHY.
A,& JHA . M, (2012), MARKETING MANAGEMENT 14TH Ed, INDIA;PRENTICE HALL KOTLER .P., (2003) .MARKETING MANAGEMENT , 11TH Ed, SINGAPORE: PEARSON EDUCATION (Kotler, 2003)Your Bibliography: Kotler, P., 2003. Marketing Management.
11th ed. singapore: pearson education.Bryman, A.
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