Marketing Strategies 1

University of Sunderland
Sunderland Business School

MKT 306: Marketing Strategy

ASSIGNMENT
Cosmetics Marketing of Unilever
 Executive Summary

In order to introduce new product to women on the Hong Kong market it is presented, in

the form of a marketing strategy to define a brand of facial cosmetics, analyze and evaluate

business current operations and competitive campaigns as well as company benefits. In other

words, the report offers the best advice and successful business strategies to help Aviance

Cosmetics continue to thrive in Hong Kong. Notably, the thriving of the new product in Hong

Kong will mainly be based on its competitive ability based on the analysis done. The situational

analysis conducted proved that the product will most likely thrive in the Hong Kong Market.
Table of Contents
Executive Summary.....................................................................................................................................2
Part 1...........................................................................................................................................................3
1.0 Introduction...........................................................................................................................................3
2.0 Situational Analysis................................................................................................................................4
2.1 Pestel Analysis...................................................................................................................................4
2.1.1 Political Factors...........................................................................................................................4
2.1.2 Economic Factors........................................................................................................................4
2.1.3 Social Factors..............................................................................................................................5
2.1.4 Technological Factors.................................................................................................................5
2.1.5 Environmental Factors................................................................................................................6
2.1.6 Legal Factors...............................................................................................................................6
2.2 SWOT Analysis...................................................................................................................................7
2.2.1 Strengths....................................................................................................................................7
2.2.2 Weaknesses................................................................................................................................7
2.2.3 Opportunities..............................................................................................................................7
2.2.4 Threats........................................................................................................................................8
3.0 Competitive Advantage and Competition (USP)................................................................................8
3.1 Five Forces Analysis.......................................................................................................................8
3.2 Competitive Advantage (USP)..........................................................................................................10
4.0 Evaluation of the current Marketing Strategies and Performance......................................................10
Section 2....................................................................................................................................................11
5.0 Introduction.....................................................................................................................................11
6.0 Segmentation, Targeting and Positioning (STP)...................................................................................11
6.1 Segmentation..................................................................................................................................11
6.2 Targeting..........................................................................................................................................12
6.3 Positioning.......................................................................................................................................12
7.0 Recommended Marketing Objectives and Goals.................................................................................12
8.0 Marketing Strategies with Application of the Marketing Mix..............................................................14
9.0 Conclusion...........................................................................................................................................16
References.................................................................................................................................................17
 Part 1

1.0 Introduction

Unilever represents a multinational British consumer goods firm based in London, United

Kingdom that mainly emphasizes on cosmetic products. Founded in September 1929, Unilever

Company has been providing a variety of products including cosmetics (Baumann, et al., 2021).

The report shows the company's future in growth in the last decade. The competitive role offers

major advantages by offering consumers the best goods as the competitor and win customer

confidence based on their long-standing credibility. Cosmetics industry has in the recent past

undergone numerous changes that are worth noting with a major aim of ensuring that they

provide the best of care to all its customers. The current report aims at identifying the specific

target segments for Unilever company and providing the right marketing strategies that will

ensure improved performance in the cosmetic industry.

2.0 Situational Analysis

2.1 Pestel Analysis

The willingness of Unilever to counter external influences in its remote or macro-

environment helps to promote businesses on the world market for consumer goods. These

external factors are identified in the PESTEL/PESTLE test. The PESTEL/PESTLE Analysis

model provides managers with a method to consider the impact of the external environment on

companies.
 2.1.1 Political Factors

With the political stability of most countries, Unilever will thrive in these markets

(Masroor and Asim, 2019). For example, the political stability of the United States contributes to

reducing problems in strategic deployments of the nation. In the European Union, on the other

hand, the political questions raised by the Pestre 2019 are a potential danger to UNILEVER's

activities in the country's consumables market. But, on the basis of the increasing free trade

relations with developed countries in particular, the organization will expand internationally.

There are general market opportunities based on the political external factors of that section of

the PESTEL/PESTLE study, but Unilever must overcome the political difficulties associated

with the European Union.

2.1.2 Economic Factors

Unilever is able to benefit further from higher possible profits by rising salaries in

developed countries as customers earn higher disposable income (Siddiqui, and Ali 2021).

However, as with the many manufacturing facilities within developing regions, the same external

factor threatens the increased cost. However, as the scale of these countries and consumer

product demand increase, Unilever is expected to develop companies. For example, China offers

significant opportunities for growth to the company. In addition, developed countries' economic

stability hampers the company's risk on other markets and allows slow, yet steady growth.

2.1.3 Social Factors

With products specifically addressing the increased interest of customers in healthy

products, Unilever have been developed. In addition, the organization is capable of gaining more

consumers by increasing its environmental effects. For example, Unilever can reduce its energy

consumption by producing its cosmetics products by using new and more energy efficient
technology (Prabhu, 2017). The enterprise can also flourish by improving the revenues of women

worldwide by improving incomes. The external factors present in this segment of the

PESTEL/PESTLE review from Unilever demonstrate the significance of product innovation in

the development of the consumer goods industry.

2.1.4 Technological Factors

Unilever is being given a chance to improve operating productivity with increasing

company automation. In order to improve supply chain and delivery performance, modern

business processing equipment will, for example, enhance inventory tracking (Moons, et al.,

2019.). The same external technological factor is therefore a challenge because other businesses,

like small companies, improve their competitiveness in local markets. Rising R&D investments,

instead, challenge Unilever, as they also increase other businesses in the consumer goods

industry's competitive advantage. However, the reduced transport costs lead to lower operating

costs that contribute to business growth. The lower transport costs are, however, a challenge

because they contribute to other companies' competitiveness.

 2.1.5 Environmental Factors

Unilever's rising business interest is an opportunity to expand its environmental services

in order to attract customers (Widyastuti, et al., 2019). The Organization should improve its

sustainable development efforts with respect to other companies in the consumer goods sector in

order to raise its competitiveness. Unilever must successfully implement these in the company's

corporate social responsibility policy. In order to further reduce the effect of market climates, the

approach needs to take account of product creativity and internal business processes. These acts

will also encourage the capacity of Unilever to meet ever more complicated environmental

programs.This external aspect allows the organization to improve its competitive edge through

its corporate responsibility.

2.1.6 Legal Factors

Unilever has the potential to boost its corporate image by combining its social

responsibility policies with environmental regulations. In addition, enhancing international

patent law would speed up business growth. New patent legislation, for example, helps to

alleviate Unilever's distant or macro environment experiences in developing countries.

Strengthening consumer rights legislation also creates an opportunity for companies to improve

customer service standards along with product quality criteria. These policies would increase the

attractiveness of Unilever brands on the market for consumer goods.

2.2 SWOT Analysis

2.2.1 Strengths
 Unilever has some of the best cosmetic brands in the consumer goods industry, as Pandey

et al. suggested in 2021. This strength makes it possible for the business to penetrate markets

and compete with other businesses effectively. The broad range of products shows Unilever's

potential for business growth. The company, for example, increased its product range in terms of

company growth and subsequent sales through years of fusions and acquisitions. On the other

hand, as seen in the Unilever marketing mix, economies of scale foster quality of output, which

is vital in terms of price efficiency. The business has also broadened its global scope through

years of international development that reinforce its brand awareness.

2.2.2 Weaknesses

The imitable quality of its goods is one of Unilever's shortcomings. Although the

company invests heavily in its product development processes, for example, other companies

will copy the products of Dove and Rexona which are cosmetics. Furthermore, Unilever is poor

in spite of its diverse product mix, as companies outside the consumer products sector are

limitedly diversified (Danse, et al., 2020). In addition, the company has no clear direct impact on

consumers, as retailers affect the customers directly.

2.2.3 Opportunities

In joining companies outside the consumer goods sector, Unilever has opportunity to

diversify (Pandey, et al., 2021). Diversification reduces consumer risk and improves corporate

sustainability. Unilever product innovation can only increase its product attractiveness by

satisfying the needs of increasingly medically conscious consumers. The company can also

improve its business's sustainability and environmental efficiency and attract and retain

consumers with eco-consciousness. Market growth will further enhance Unilever's business by

growing its sales revenues in new market segments of its existing products.
 2.2.4 Threats

A competition based on the strengths of other businesses on the market Unilever faces

heavy rivalry (Raj, and Aithal, 2018). Danger to rivals to reduce the company's market share and

financial results they threaten. Brand imitation is also a major problem for Unilever. For

example, local businesses may manufacture highly similar products, which is primarily a

challenge to Unilever.

3.0 Competitive Advantage and Competition (USP)

3.1 Five Forces Analysis

3.1.1 Competitive Rivalry

In the cosmetics goods sector, there are several businesses that are likely to offer

increased competition and Unilever is heavily forced by this external factor (Andonova, et al.,

2021). Furthermore, these companies are typically competitive and increase the competition

level. Hard rivalry also exists at Unilever due to the low cost of change. Consumers can easily

move between companies, for example. This portion of Unilever's Five Forces Review thus

shows a high degree of competitiveness, stressing the need for competitive rivalry to be

considered a high priority factor in the business climate.

3.1.2 Bargaining Power of Unilever’s Customers

The low costs of switching make it possible for customers to move goods from Unilever

to other firms as indicated by Sharma, 2018. Consumers frequently have access to high-quality

consumer product information, which makes it easier for them to choose from Unilever to others.

For example, purchasers are able to compare products with online information. The profit of

Unilever is affected by the small sales volume of customers.

 3.1.3 Bargaining Power of Suppliers

Unilever has large suppliers, including global cosmetics providers, but the average

supplier is small (Sharma, 2018). In the consumer goods industry, the external factor places a

moderate environmental force. In addition, the moderate population of suppliers helps them to

substantially but restrictively regulate companies like Unilever. Likewise, the moderate supply

level contributes to the important but minimal impact of suppliers. Even the changes in output

levels in any provider lead, for example, to a substantial but minimal shift in raw material supply

in the company of Unilever.

3.1.4 Threats of New Substitutes

Low switching costs make it easy for customers to use Unilever goods as alternatives as

indicated by Mishra, 2019. The business and the consumer goods market are strongly influenced

by this external factor. However, because of the low availability of substitutes the overall impact

of substitution is decreased. For example, Unilever's cosmetics products from supermarkets are

easier to access than to purchase alternatives such as homemade organic cosmetics. The majority

of replacements, in contrast to consumer products readily available on the market, are inferior to

a low performance, with minimum or marginal cost difference.

3.1.5 Threats of New Entrants

Unilever with its low changing prices, which is illustrated by Mishra 2019, will be

strongly affected by new entrants. For example, consumers can easily test new products from

new companies. But it's costly to create strong brands such as Unilever. This external factor

weakens the new entrants' challenge to the group. Moreover, Unilever benefits from high-level

markets which historically lack new companies with low prices and high operational efficiency.
As a result, the company remains solid amid newcomers. With this section of the Five Force

Analysis, the opportunity for new accession in the industry at Unilever is a minor issue.

3.2 Competitive Advantage (USP)

As customer perception improves, it is time to hit Hong Kong’s markets for cosmetic

brands. The existence of a great many cosmetic brands in Hong Kong, with an enormous store in

the big town or big lane, is not hard to recognize. One of the most ways to market goods to

consumers is through its exclusive sales proposition. Unilever’s representative said: "Its

commodity contains beautiful mineral water from France for thousands of years and is renowned

for its beauty and performance”. A mixture of French chemicals and natural ingredients are the

Unilever’s skin care products. Additionally, Unilever’s Cosmetic products provides skin care,

care for the body, make-up and anti-aging products, with relaxing, antimicrobial and anti-irritant

properties.

4.0 Evaluation of the current Marketing Strategies and Performance

Based on the above analysis it can be argued that the current marketing strategies and

performance for Unilever are in line with the current standards. Based on the situational analysis,

it can be argued that there are more strengths and opportunities as compared to the possible

threats and weaknesses. Also, the various marketing strategies of the company includes strategies

such as digital marketing, and promotional campaigns that have contributed to increased

performance of the company.

 Section 2

5.0 Introduction

As a Cosmetics company, Unilever company has for long introduced Aviance cosmetics

product that has gained increased popularity in most of its environs. Notably, the Cosmetic

brands has increased recognition based on the fact that it has no side effects to the body and

therefore preferred by most consumers. In most cases, the brand has increased reputation caused

by the inability to imitate it. The inability to imitate the brand is mainly caused by its uniqueness

and competitive ability of the brand.

6.0 Segmentation, Targeting and Positioning (STP)

6.1 Segmentation

The segmentation of the market involves knowing the consumer needs, how they decide

between one offer and another as argued by Dolnicar, et al., 2018. This perspective is used to

create client groups that have the same or somewhat similar standards of importance. In order to

determine precisely what the company will do next, the company must segment this market

based on consideration of Demographic, Geographic, Psychographic and Motivational

properties. The expenses for these products represent approximately 25% of the overall expenses

of personal care and therefore important. There is still a development of the beauty market in

Hong Kong, which is an opportunity for those who lead the trend and drive consumers to gain

market share and value (Cheung, et al., 2020). Furthermore, the research indicates that cosmetic

brands have a potential with approximately 20 million Hong Kong women between 15 and 39

(40 percent of women). Therefore, the basis of the segmentation is therefore appropriate.
 6.2 Targeting

In Kowloon district, consumers are particularly interested in beauty, due to heated

weather and the harsh weather and along with the propensity to westernize it. Therefore, rather

than other countries, skin care items are sold. The targeting of the beauty product will therefore

be directed to this region as it is most likely to yield increased profits.

6.3 Positioning

In order to position their goods on the market, businesses should use a perception map or

positioning maps relative to other rivals, see how they vary from competitors so that they can

identify their positions and then have a proper plan to follow that position as stated by Wenting,

2021. This chart is based on two key factors: price and quality with volumes from low to large,

and the market is divided into four sections individually. Two of these variables satisfy each

other on average. The cosmetics industry in Hong Kong according to Wenting, 2021 has a great

potential as it is appealing to many well-known and world-renowned brands. Aviance cosmetic

product remains adamant in its own strengths in the light of increased rivalry, all of which are

connected with the positioning of cosmetics.

7.0 Recommended Marketing Objectives and Goals

The following are the recommended marketing objectives and goals that Unilever ought

to take;

Corporate Objectives

1. The market leadership for the next decade needs recover and control all

possible competitors

2. Recover stockholder and customer trust.

 3. To boost the internationalization of management.

Marketing Goals and Objectives

1. Sustainable profitability and value for shareholders by - benefit by 5%.

2. To increase revenue and margins by 7.5 percent through a growth strategy

in order to overcome increased competition.

3. Increasing the promotional expenditure of 300 of the 400 core goods by

providing 5 million pounds marketing budget.

4. Growing market share and maintaining leadership in the core product of

the business by ensuring and developing customer loyalty and manufacturing goods that

satisfy particular market customers.

Financial Objectives

1. In the next two financial years, Unilever should increase its marketing

financing by 50 percent.

2. Increase Unilever's support for capital by 5% per year after next year's

budget.

Societal Objectives

1. To enhance the products' social perception.

2. Providing healthier options to keep its loyal customers

3. Sponsoring games and other sports activities, so that they are closer to its

clients and know how their goods sound.

 8.0 Marketing Strategies with Application of the Marketing Mix

Unilever presents a diverse marketing mix that takes product variations and industry

differences into account globally (Steenkamp, 2017.). A marketing mix or 4Ps is a blend of

business methods to capture the target market. a commodity, positioning, promotion & price mix.

In Unilever's marketing mix, the product and position aspect are the most significant in terms of

Unilever cosmetic products. However, the factor promotion and pricing guarantee the

profitability of the business. Unilever, a marketing mix that tackles inflation and other global

problems, must be maintained as a leading company in consumer goods.

Product

Unilever has expanded its company in consumer products over the years to create an

expanded product mix of more than 400 brands currently comprised. The outputs of the

business, which are called the product mix in this segment of the marketing combination. The

Aviance is the product in regard to this marketing plan that requires to be marketed in Hong

Kong based on its wide applications and suitability in the relevant customers targeted which are

middle aged women. In the group of home care and beauty products, Unilever offers items such

as a surfing detergent and a solar dishwasher detergent. In the personal care segment, the

Company sells the Close-up toothpaste, the Vaseline and the dove soap and shampoo. These

product categories show that the marketing mix from Unilever is now very diverse. This

diversification stems in part from the acquisition policy of the enterprise over the years on the

consumer goods market.

Place

Unilever's global operations represent the company's wide presence on the consumer

goods industry. In this segment of the marketing mix that one can see the locations or areas
where the business transacts with clients or target consumers. The main distribution sites for

Unilever's goods will be retailers in Hong Kong. Walmart, for example, is one of the leading

distributors of these consumer products that will be highly used in Hong Kong. Occasionally,

Unilever will use kiosks in Hong Kong for direct introduction of goods to consumers and for

personal sale. The organization promotes a small range of items through these kiosks in

conjunction with retailers. Unilever also will sell some of its brands in supermarkets located in

Hong Kong.

Promotion

In view of the high degree of competitive competition in the global consumer goods

industry, Unilever must promote its products. This marketing mix segment describes techniques

and methods to sell the goods to customers in the approach of the business in Hong Kong. The

main way to promote Unilever cosmetic product is advertising. The advertisements will mainly

be aired on TV and web ads. The company will often use promotional campaigns sometimes,

such as discounts and packages of products. The activities of Unilever Foundation boost

corporate reputation and brand strength in terms of public relations. Often, in conjunction with

distributors, the organization will carry out personal sales for such kiosks or promotional events.

Pricing

The price strategy is market-oriented, which includes price points dependent on market

conditions for consumer products as indicated by Zhang, et al., 2020. In order to decide the best

prices for Unilever cosmetic product, for instance, competitive prices will be used. In contrast,

luxury prices have higher rates than competitors. For example, for products such as Aviance

which match the premium quality of the brand, Unilever would have moderately high prices.
Aviance also sells products in bundles for discounted prices. In this part of Unilever's marketing

mix, a variety of approaches will illustrate the variations in company consumer goods and the

target markets.

9.0 Conclusion
Unilever represents a multinational British consumer goods firm based in London;

United Kingdom that mainly emphasizes on cosmetic products that was founded in 1929. The

current report mainly will entail a detailed analysis of the marketing strategies of Unilever in

regard to its new product Aviance. In regard to establishing the external environment, this

analysis carried out a detailed Pestel and Swot analysis in order to determine the underlying

strengths of the company. As customer perception improves, it is time to hit Hong Kong’s

markets for cosmetic brands. The existence of a great many cosmetic brands in Hong Kong, with

an enormous store in the big town or big lane, is not hard to recognize. Based on the situational

analysis, it can be argued that there are more strengths and opportunities as compared to the

possible threats and weaknesses. Also, the various marketing strategies of the company includes

strategies such as digital marketing, and promotional campaigns that have contributed to

increased performance of the company. The various segments required in this analysis will

mainly involve knowing the customer needs of the numerous middle -aged women in Hong

Kong. A perception map will be used in regard to ensuring positioning occurs. Aviance cosmetic

product remains adamant in its own strengths in the light of increased rivalry, all of which are

connected with the positioning of cosmetics.

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