1. MARKETING ENVIRONMENT
A. The Company:
Although Unilever wasn't formed until 1930, the companies that joined
forces to create the business we know today were already well
established before the start of the 20th century. 1900s Unilever's
founding companies produced products made of oils and fats, principally
soap and margarine. At the beginning of the 20th century their expansion
nearly outstrips the supply of raw materials. 1910s Tough economic
conditions and the First World War make trading difficult for everyone, so
many businesses form trade associations to protect their shared
interests. 1920s with businesses expanding fast, companies set up
negotiations intending to stop others producing the same types of
products. But instead they agree to merge - and so Unilever is created.
1930s Unilever's first decade is no easy ride: it starts with the Great
Depression and ends with the Second World War. But while the business
rationalises operations, it also continues to diversify. 1940s Unilever's
operations around the world begin to fragment, but the business
continues to expand further into the foods market and increase
investment in research and development. 1960s as the world economy
expands, so does Unilever and it sets about developing new products,
entering new markets and running a highly ambitious acquisition
programme. 1970s hard economic conditions and high inflation make the
70s a tough time for everyone, but things are particularly difficult in the
fast-moving consumer goods (FMCG) sector as the big retailers start to
flex their muscles. 1980s unilever is now one of the world's biggest
companies, but takes the decision to focus its portfolio, and rationalise its
businesses to focus on core products and brands. 1990s the business
expands into Central and Eastern Europe and further sharpens its focus
on fewer product categories, leading to the sale or withdrawal of two-
thirds of its brands. The 21st century the decade starts with the launch of
Path to Growth, a five-year strategic plan, and in 2004 further sharpens
its focus on the needs of 21st century consumers with its Vitality mission.
o Size: multi-local-multinational.
o geographical scope
Unilever has operations in around 100 countries and our products are
on sale in about 50 more. With consumers, customers, suppliers and
shareholders on every continent, we describe ourselves as a ‘multi-local
TURN OVER OPERATING PROFIT
o production process:
A deodorant or antiperspirant soft solid composition is filled into dispensing
containers by injection moldings, i.e. under pressure, preferably in the
vicinity of its normal setting temperature. The deodorant or antiperspirant
composition is preferably continuously produced in a screw extruder,
especially a twin screw extruder, controlled to deliver the composition in a
suitably viscous state under low shear and particularly for formulations in
which a particulate antiperspirant is suspended in a fluid carrier. The
pressure in the injection head at the point of injection is greater than 120
kPa and in many instances from 800 to 2000 kPa. The combined process
offers benefits for controlled fill of dispensing containers, particularly for
formulations incorporating sensitive ingredients and offers tolerance in
composition temperature at the time of fill.
o Structure (focus on marketing structure)
Paul Polman Chief Executive
James A Lawrence Chief Financial
Professor Geneviève Michael B. Pier Luigi
Sandy Ogg -
Douglas Anderson Chief Research & Polk - Sigismondi -
Professor Geneviève Chief HR
Baillie: Development President, Chief Supply
Berger - Chief
President of Western Harish ManwaniOfficer Americas Chain Officer
Research & - President,
Development Officer Europe (Marketing) (Marketing
Products’ Portfolio: Define the product portfolio of the company in terms of width
and length. (Graph):
Our strong portfolio of foods, home and personal care brands is trusted by
consumers the world over. 13 of our brands achieve annual sales of €1 billion or
more. Our top 25 brands account for over 70% of our sales. In 2008 thirteen of
our brands had global turnover of €1 billion or more. These were Knorr,
Hellmann’s, Lipton, Becel/Flora (Healthy Heart), Rama/Blue Band (Family
Goodness), Wall’s/Algida (Heartbrand), Omo, Surf, Dove, Lux, Rexona
(including Sure and Degree), Axe/Lynx and Sunsilk (including Seda and Sedal).
We manage our brands under the following four category headings: savoury,
dressings and spreads; ice cream and beverages; personal care; and home
B. Objectively segment for each product: Remember that products from
a company could have different market segments.
Segment information is provided on the basis of geographical regions
and product categories. The primary format, geographical regions, is based on
the management structure of the Group, which operates in three geographical
Savoury, dressings and spreads includes soups, bouillons, sauces,
snacks, mayonnaise, salad dressings, margarines, spreads and
cooking products such as liquid margarines, and some frozen
foods. Our key brands here are Knorr, Hellmann’s, Becel/Flora
(Healthy Heart), Rama/Blue Band (Family Goodness), Calvé, Wish-
Bone, Amora, Ragú and Bertolli.
Population: House wifes
Ice cream and beverages includes ice cream sold under the
international Heartbrand, including Cornetto, Magnum, Carte
d’Or and Solero, Wall’s, Kibon, Algida and Ola. Our portfolio also
includes Ben & Jerry’s, Breyers, Klondike and Popsicle. This
category also includes tea-based beverages, where our principal
brands are Lipton, Brooke Bond and PG tips, as well as weight
management products, principally Slim•Fast, and nutritionally
enhanced products sold in developing markets, including
Annapurna and AdeS.
Population: adults and teenagers
In personal care, six global brands are the core of our business in
the mass skin care, daily hair care and deodorants product areas –
Dove, Lux, Rexona (including Sure and Degree), Sunsilk (including
Seda/Sedal), Axe/Lynx and Pond’s. Other important brands include
Suave, Clear, Lifebuoy and Vaseline, together with Signal and
Close Up in oral care.
Population: Mostly teenagers
Our home care ranges include laundry products, such as tablets,
traditional powders and liquids for washing clothing by hand or
machine. Tailored products including soap bars are available for
lower-income consumers. Our brands include Omo (‘Dirt is Good’
platform), Surf, Comfort, Radiant and Skip.
Population: house wifes
"The particular strength of today's woman has to do with living their emotions
intensely. This actually cause you to lose force the old paradigm that linked him
with an emotional weakness. It is now assumed to be emotional beings and
recognize them as a fortress and positive momentum in their lives "and
introduced Mariela Mociulsky, Director Trendsity, regional qualitative research
that was proposed to investigate the relationship women have with their
emotions and that was the kick to the latest release of the brand: Rexona
With the ability of their’s research centers, the companies have invested in
development and innovation in products and new formulas and deodorants
division was no exception. The quantitative sociological study carried out by
Trendsity was supplemented by a quantitative analysis conducted by clear data
through a survey of 1500 women from 18 to 35 years in Argentina, Brazil, Chile,
Colombia and Mexico.
The qualitative report, in line with international research concludes that women
who live their emotions intensely are more likely to stay healthy, physically and
emotionally, and therefore meet their social roles with greater energy and
fullness, achieve their goals and improve family relationships, couples, work
The ultimate pop-analysis which also included interviews with prominent
international references in various fields related to the topic was off-feminine
emotions of vulnerability to indicate them as a source of strength to the guide to
action. Research indicates that 70% of respondents believed that emotions are
a source of strength and in Argentina the trend replies: 7 out of 10 agree with
Rexona launched Rexona for woman with a differential antripespirant formula
which offers proven protection against emotional perspiration, which according
to testings conducted by the brand showed that women exposed to emotional
stimuli-first day of work, public display, an appointment, etc., can sweat up to
“Today's woman are more intensely than ever: is active, flirty, tender, mother,
daughter and wife, friend and professional," says Jorgelina Racciatti, Marketing
Manager for Rexona Women-we represent this new woman and offer the most
effective protection , so they can experience and enjoy these emotions.
On the product in particular has special microcapsules that sit on the surface of
the skin and in a situation of emotional intensity dissolve in sweat, releasing
fragrance as much protection. The new variety has a new fragrance that mixes
oriental notes (vanilla, amber and flowers seats) with touches of wood and fruit
and gourmand (circuela, grape and peach) for aerosol presentation.
The spot advertising campaign accompanying the agency were developed by
Ponce and show the woman trapped by an emotional situation to be
encouraged to deal with the help of Rexona for woman.
In order to know the experience of women in this regard, Rexona make a
qualitative-quantitative study in Latin America, and we have this amazing
• Eight out of ten women consider that emotions are very important in their life.
• 90% of women in Latin America believe that "feel intensely worthwhile ago
• 70% of women believe that emotions are not a weakness but a strength.
• 7 in 10 women say that emotions are a powerful tool for development.
• 7 in 10 women in Latin America recognize the emotion as a resource for
• There is evidence that intense feeling is manifested through the body: 7 out of
10 women admit that sweats more than normal when you experience emotions.
According to the report qualitative and in line with the latest research on global
trends, shows that women today choose to live their emotions with intensity and
that makes owning a particular strength. It ensures that those who are in touch
with their emotions are more likely to remain vital, both physically and
emotionally and, accordingly, may fulfill their social roles with greater energy
and fullness. The study examines in turn the expansion possibilities and
potential that emotions give women in different social dimensions: family,
couple, work and friendship.
• Objective of the company in setting prices: is to maintain the growth
momentum and deliver competitive levels of profitability. The company
wants most that all to have a good sustainability in the market and also
offer a good quality product to their customers and innovating. Rexona
is the leader in the deodorant products its prices go from US $2 to US
$7, selling fortified products at affordable prices while maintaining
adequate Margins, that’s the strategy.
The company uses understanding of consumers ‘everyday needs for
nutrition, hygiene and personal care to create high-quality branded
products that are safe to use, competitively priced and accessible even
to the remotest consumers.
• Price setting according to product mix. (It is important to understand
the type of product being evaluated). Product line, secondary
Substitutes products, etc.
Rexona is a brand that have most that all deodorant products but also
manage others like soap, and has a large line of products.
Rexona line of products
Powder y Sensive
Bamboo Creme & Citrus y
Women crystal Women Rexona Cool Green Stick Rexona
intense Invisible neutral teens
$6 983 $6000
$8 981 $6 165 $ 5500
Nivea is the biggest competitor of Rexona, Nivea prices area little bit more
expensive that Rexona goes from US $5 to US $8 but this one is also an
important and prestigius brand, but even like that Rexone keep been the leader
The prices of these products are very affordable for everyone, and rexona is
always giving the best quality to their customers. When they rise the prices the
do it, thinking in giving a better service to their customers, and also in having a
good relationship with the cutomers, that goes beyond the price.
• Price adjustment strategy: Discounts, sales, price segmentation,
psychological prices, promotional prices, international prices.
Promotions and 2 x 1 are evident and very strong. Build brand and gain market
share in these circumstances will be one of the difficulties, especially since the
game rules are defined by the price today. But there may be something to his
favor, taking in count the difficulties in the negotiation processes between
suppliers and chains, this ones are demanding safer returns against sales
variables. The category of deodorants has a high level of promotions and the
chains are putting much of their space in these deals. "But for them it is
important to optimize their space with more profitable products," says an
analyst. That is, promotions and sales tactics might be adjusted for a longer
term strategy. But this is just an alternative that is looming in a market still
dominated by the price variable.
• Price Changes: Increasing prices, consumers and competitors
reactions to a price increase.
When Rexona changes the price, they do it in a very moderate way,
and the customers, doesn’t reject them because they like the product
and they re faithful to it, and also when they do they are offering a
new product with some added value; most that all they think in prices
that be accessible to all customers and of course they have a large
product line where each person can choose according to their
Rexona is a deodorant brand that is manufactured by Unilever S.A, it has a
huge distribution channel for all over the world, represented by warehouses.
Rexona does not use its own fleet of transportation, how ever it has outsourced
its distributors process to various third party distributors in each country,
exclusively dedicated to Unilever transportation. These distributors then supply
the product all over the rest of the market.
Unilever’s point man on contract packaging projects. He works with about 20
contract packagers on more than 100 outsourced packaging projects per year,
and says logistics play a large role in selecting a co-packer.
“Price is very important, but the location of the co-packer is so important
because of the high cost of transportation,” Potochar says. “This factor can
override even the most inexpensive cost structure a co-packer could have.”
CHANNELS: Rexona uses two kinds of channels, the first one is the modern
channel, which are the most importants supermarkets in the country like
Almacenes EXITO, Carrefour, Cafam, etc in Colombia, and internationally the
most importants ones are Wal-Mart, Tesco, Carrefour and Metro, predominate
in the US and Europe and have a growing presence in developing markets.
Also, Rexona has the traditional channel that works with distributers, they go
to the small stores located in all the country. In the Metropolitan Zone, there are
fIVE distributers: Pond Pan, H y R, Zona 2, Zona 3 y Tropicna. The reason why
Rexona has two channels is because they need to distribute their merchandize
to the Biggest Supermarkets and also to the towns, stores, which is easier and
more efficient to be distributed by distributors, using the the division of labor.
CHANNELS MEMBERS: Rexona deals with retailers, and their characteristics
are their wide network that are recognized in comunity like: supermarkets,
drugstores, department stores. Rexona also sell products through a more
diverse group of distributors, wholesalers and small, independent outlets and
kiosks particularly in developing and emerging markets. Meeting the needs of
these different types of retail channels will contribute to their growth inthese
DISTRIBUTION INTENSITY: Rexona has a selective distribution, depending on
the income of the income where they are operating, they offer differents kinds of
products with differents characteristics.
DISTRIBUTION STRATEGY: Unilever has specifics distribuirors in every
region that only can sell Unilever`s products, this distribuitors are in charge of in
specific convinience stores that are recognized inside the comunity with the
requirments of sellings highers than one thousand million pesos.
Products are physically distributed through a network of distribution centres,
satellite warehouses, company-operated and public storage facilities, depots
and other facilities.
DISTRIBUTION IN COLOMBIA:
Unilever does not have its own transportation, they hire compmaies of
transportation, the most importants ones are Icoltradas and Coltanques.
THE PALMIRA´S CENTER OF DISTRIBUTION: Unilever accelerates its
logistic to increase its productivity and acceding to seven markets in South
America by allying with DHL are built the biggest center of in Palmira-
Colombia, investing US$32 millions. This is a really strategic distribution place
because it is close to the Buenaventura port, which is the main one related to
charges in the country, becoming easier the importations and exportation.
Unilever has 120 distribution centers in America, but the one that is located in
Colombia is the the best in technology, infrastructure, Colombia attends to
seven countries in South America.
In Colombia there are important retailers like Almacenes EXITO, Carrefour,
Olimpica, Pomona, Carulla, between other supermarkets.
• Promotion Mix: Explain how the promotion mix is compounded and
how the budget is assigned.
MEDIUM Compounded by Budget
Newspapers Complete page with a specific 5%
advertising depending on the
product. Ejm: Rexona crystal,
Magazines Female target with complete full color 10%
ads made by Sharemind. Large
scale print advertising.
Radio Very limitated. 5%
Television TV commercials lasting 30 which 50%
is part of a global campaign
developed by Lowe. In the
commercials Uniliver tries to
reflect usual situations of the
contemporanean woman. Also
this enterprise always considerate
the characteristics of female’s
Outdoor An outdoor advertising effort from 15 %
media Rexona targeting women who love
fragrances. The posters invites
women to remove a sample and
keep it. Each week, the slips of paper
were replaced with new perfumed
The spot advertising campaign were
developed by Ponce and show the
woman trapped by an emotional
situation to be encouraged to deal
with the help of Rexona for woman.
Also, in some supermarkets Rexona
uses Giant inflatables
Internet Communication strategies include 15 %
where consumers are invited to
respond a test to see if they can
sweat more than normal and require
an effective product to help them to
continue their activities without
discomfort. This online initiative is
strengthened by TVs commercials.
Social web sites like: facebook and
Amicada, Inc., a provider of
technology for the delivery of online
permission-based advertising via full-
motion, full-frame video, had signed
an agreement with Unilever. Under
the agreement, Unilever will use
media space on Amicada's on-line
advertising system, delivering
advertisements originally produced
• Analyze the activities the company undertakes for each of the
o Personal Selling:
-Strengthen company-client relationship, through the effective use
- Inform consumers about the development of new products and
- Seek new ways of bringing our products within the reach of
people of all income levels.
- The company is committed to building trust through responsible
practices and through transparent communication
-Unilever will use a combination of channels, which includes
product labels, websites, carelines and/or consumer leaflets to
communicate openly with our consumers
-Promoting healthy lifestyle and physical activity.
- Provide clear information which allows the consumer to make the
-Recognise that in some countries more information is required.
- Identified the consumer life style to offer a special product that
-ONLY IN INDIA: Women in self-help groups across India are
invited to become direct-to-consumer sales distributors.The
company provides training in selling, commercial knowledge and
bookkeeping to help them become micro-entrepreneurs.
-Internet: Blogs, facebook, Unilever official website, rexona for
women official website.
- The customers that have long term relationship with the
company, they receive calls and get information about
promotions and new products.
-Samples on supermarkets.
o Development and evaluation (For the company):
-The companie should improve selling door to door.
-Unilever´s business and sustainability strategies are starting to
come together. The company is finding that addressing society’s
concerns holds the potential for business growth and success.
One such opportunity is to meet the needs of low-income
consumers in developing and emerging markets.
-In 2008, 47% of their sales were in developing and emerging
markets. The company expects to see this figure increase as
populations and purchasing power grow, particularly in Asia.
-Their aim is to satisfy the needs and aspirations of consumers at
all levels with quality products. The company would achieved
through new distribution channels, using smaller formats or
creating new products, the company is trying to develop business
models to reach the poorest members of society. However,
producing and selling products for a few cents while making
adequate margins is extremely difficult.
-Consumers may be concerned about the use of particular
chemicals in their products. The company works in partnership
with a range of organisations to strengthen consumer confidence
in our products.
-The company supports their brands and their growth through
compelling and competitive levels of investment in advertising and
promotions. The breadth of both our portfolio and our geographic
reach also help us mitigate general economic risks.
-Advertising and promotions as a percentage of sales was in line
with the previous year.
o Sales Promotion: The sales promotions are based on things
that women are very interested like beauty. For example one
famous promotion was: With the purchase of one of the
Rexona´s women products, the first 5000 shares won: 400
sessions of Makeup, 800 Duyos Tops , 800 Duyos
Sweatshirts, 2000 Duyos Bags.
Now they are concentrared in the design of handbags for
women. For example here in Colombia, Rexona and Hernan
Zakhar allied to spoil women. Therefore, the Colombian
designer, design a line of handbags made exclusively for Rexona
Rexona for women use more frequently television and Internet as
the media of promotion advertising. Most of the commercial
advertisements are made in such a way that the consumers are
attracted to buy the product. Rexona promotes itself by providing
new advertisements and making its customer aware of the
availability of its new and improved versions of the product. They
also promote via billboard, magazines and leaflets.
o Direct Marketing: Company’s strategy.
Rexona uses blogs and facebook groups where possibilitates a
close relationship with the costumer, besides it is a way of being in
direct contact with them.
Stadistics of Internet users in colombia
Comportamiento semestral S2 2007 - S1 2008
Clientes de Internet en
Dic-07 Jun-08 Diferencia Cambio
Acceso conmutado por
174,383 190,053 15,670 9.0%
Subtotal Conmutado 174,383 190,053 15,670 9.0%
Acceso dedicado (Cobre/FO/uO) 32,282 29,663 -2,619 -8.1%
Acceso Dedicado Cable 428,587 524,032 95,445 22.3%
Acceso Dedicado (xDSL) 693,133 965,293 272,160 39.3%
WiMax 53,088 65,550 12,462 23.5%
Subtotal Dedicado 1,207,090 1,584,538 377,448 31.3%
Total Suscriptores 1,381,473 1,774,591 393,118
As we can see, in Colombia the internet acess is increasing, so
this is an important tool to let the costumers know about the
product and give their opinion about the product.
Rexona is using WAP content downloading with useful information
for customers. This allows the company to bring information to the
customer everytime and Rexona will assure that its consumers will
receive the information. Also, contests or sweepstakes can be
downloading and people can buy their products.
o Public Relations: Public Relations activities promote a positive
image, generate publicity and foster goodwill with the intent of
increasing sales. Generating favorable media coverage,
hosting special events and sponsoring charitable campaigns
are examples of public relations activities undertaken by
Charitable campaigns: Global Public-Private Partnership for
Handwashing: to promote handwashing with soap
UNICEF: to combat child mortality through nutrition and hygiene
In an attempt to separate the facts from the fiction and allay public concerns,
Unilever recently partnered with Breakthrough Breast Cancer to host a seminar
for journalists on breast cancer risk factors. The keynote presentation was given
by Professor Alan Ashworth, Director of the Breakthrough Toby Robins Breast
Cancer Research Centre. Professor Ashworth discussed the latest scientific
thinking on breast cancer risk factors, as well as some of the popular scare
stories surrounding breast cancer that are frequently reported in the media.
Advertising: Advertising is any paid form of media communication
which includes print ads in magazines, trade journals and
newspapers, radio, Transit cards advertisement on buses, trucks
and bus stops and TV announcements, Web-based visibility-
building, and billboards. Through advertising, Rexona publish few
TV advertisement, commercials and announcement.
o Publicity: Rexona provide sponsorship in reality shows, soccer
teams of women and soap operas
Rexona’s break through commercial that focuses on skin care
while strengthening the brand’s overall feminine appeal. The
advert follows an amusing paper doll character who finds herself
in sticky situations, but Rexona deodorant is always there to land
a helping hand.
Rexona Women from communicating the durability and reliability
(it won´t let you down) years ago, Unilever decided to brand for
the category of deodorants, the company become more creative
and show delicacy and allure. In the version for women, the brand
is focused on making contact with the target and the results led to
launch a new line specifically formulated for the care and
treatment of the area.
In TV commercials the company tries to reflect how an athlete, a
housewife with children and an executive, all of them have an
active and intense style of life. This way of versioning the global
launch, is also linked to add in the communication, the daily
problems of women today with humor and wit.
Annual Report and Accounts 2008:
Sustainable Development Overview 2008:
Servicio al cliente: 018000527517
Unilever Bogotà: 4239700