knorr

1. EXECUTIVE SUMMARY
I. Overall Brand Marketing Strategy
II. MarketingObjectives
 To achieve 80%customerawarenessinthe targetmarketwithinfirst6months.
 To establishdistributionchannel in withinMetroManilawiththe first12 months.
 To accomplishannual growthrate of atleast15% bythe endof secondyear.
 To achieve 45%market share bythe endof three years
I. Marketing Mix
Product : There are fourflavorsof KnorrSoupvariantsnamely NidoOriental,CrabandCorn,
ChickenMushroom,Asparagus. Aspartof our productstrategywe will be launchingan
additiontoour fourvariantthiswill KalabasaandMalunggay.We aimto capture a new
targetmarketwiththisnewvariant.Anotherproductstrategyisthe developinganew
packingforour product.The new package will be inacup thiswaywe will be able tocapture
a newmarket.TraditionallyKnorrsoupisavailable onlyin apackingthat isdesignfor
householdconsumption.The productiseasytoprepare sowe taughtof makingitan on the
go soupby modifyingitsmarketing.
Price: Incase of price setting ‘Knorr’hasadoptedcostbased share so‘knorr’needsto
attract the large numberof buyersinordertoenlarge itsmarketshare.Indoingthis,the
price of Knorrwill be lowerfromitscompetitor.Earlierinthe characteristicsof market
segmentationithasbeenshowedthataverageusage rate is4packs perweek,So, UBL
shouldadoptthe product-mix pricingstrategylikeproductbundlepricingincluding4packs
togetherwhichwill cost100tkand whichis20tk. lowerthanitscompetitor.
Place: For making Knorr Soup available Unilever Philippines will intensive distribution
strategy which means the product will be available in the target district town. Afterwards for
distributionchannel organization UnileverPhilippines Incorporated should adopt a distribution
channel structure inwhichproducers, wholesalers and retailers act as an integrated system. In
doing so, Unilever Philippines Incorporated should concentrate on establishing distribution
channel in the regions by the following way:
Unilever
Philippines
RetailersDistributor Whole sellers in the
target market

2. Promotion:
Philip Kotler (2003, p.18) has the following to say about promotion:
‘ Promotion is that part of communication that consists of company messages designed to
stimulate awareness of, interest in, and purchase of its various products and services.’
For Knorr SoupUnileverPhilippines shouldemphasize on Integrated Communication Approach
which means a management idea where all characteristics of marketing communication will
effortina combinedway.WilsonandGilligan(2003,p.589) has identified: ‘when a product is at
introduction stage needs heavy spending to build awareness and encourage trial among early
adoptersanddistributors’.So,ForKnorrSoupUnileverPhilippines shouldconductthe following
promotional activities: Advertising, Sales promotions, Merchandising, Personal Selling, Public
Relation e.g.
II. The marketing and managing market opportunity
The Marketing Environment, Opportunities and Threats
Consumer behaviour patterns
Competition
The Market, a description of the market and consumers
The company Strengths and weakness
III. Brand and Product Strategies
HISTORY
Known until the early 1990s as Philippine Refining Company (PRC), Unilever Philippines
started as an oil milling business which at its peak produced nearly 100,000 tons of coconut oil
annually.
Today, the company is a leading manufacturer of home and personal care products, foods, and
Consumers

3. ice cream. Its roster of brands include Axe, Best Foods, Block & White, Breeze, Clear, CloseUp,
Cream Silk, Domex, Dove, Eskinol, Master, Pond’s, Knorr, Lady’s Choice, Lipton, Rexona,
Selecta, Sunsilk, Surf, Tresemme and Vaseline.
Recognised annually amongst the Top 20 Tax Payers in the country, Unilever Philippines
employs over 1,000 people directly, as well as provides jobs for 10,000 indirectly (i.e.
distributors and suppliers), as a result of its business presence in the country. Employees and
business partners recognise that energy, creativity, the resilience to face changes and make things
better are all needed for business and people to grow together.
Unilever is known to be one of the few companies in the industry that has succeeded in keeping
majority of its manufacturing base in the Philippines. Its Personal Care unit made news by
securing the right to manufacture deodorant mini-sticks for local and export markets. It has
succeeded in entering the US market and achieved the milestone on producing its 100 millionth
stick in 2004.
The company has been a leader in introducing new technologies into the country since the early
days of its existence - margarine production in the 1930s, non-soap detergents, shampoos and
toothpaste in the 1960s and 1970s and state of the art sulphonation technology and cogeneration
power plant in the 1980s. The nineties has seen the company focusing on several improvements
in the Environment front one of which was the introduction of the first 100% biodegradable
detergent bar in the Philippines. Unilever works closely with the community and other NGOs to
protect and improve the environment. Unilever Philippines is also a leading company in the area
of Human Resources Management and Development. Unilever has for decades also been known
in the industry as a sound training ground for young Filipino graduates. Some of its managers
have progressed to senior levels in government and public life.
Unilever seeks to manage and grow its business sustainably, focusing on three pillars as set out
by the Unilever Sustainable Living Plan – Health & Well-Being, Environmental Impact and
Enhancing Livelihoods. We will develop new ways of doing business if we are to meet the needs
of the billions of people in the developing world who are yet to become consumers and deserve a
better quality of life.
Market Segmentation
Is defined as the process of grouping customers in markets with some heterogeneity
into smaller, more similar or homogeneous segments. Kotler defines segmentation
as: ‘The act of dividing the market into specific group of consumers who share
common needs and who might require separate products and/or marketing mixes’
There are a number of reasons organizations undertake segmentation.
• ‘To Meet consumer needs more precisely
• To increase profits
• To segment leadership
• To retain customers
• To focus marketing communications’

4. So, it could be said that segmentation is about categorizing explicit groups of
customers to which an organization could realize demand with its’ products or
services. As the chosen product is a FMCG product, so it is necessary to use
segmentation variables for the consumer market.
Product Mix
Product features, benefits, emotional offerings
Growth strategy mix
Packing (retail, bulk/wholesale.)
IV. Pricing for Brand superiority
Pricing strategy - In case of price setting ‘Knorr’ has adopted market penetration
pricing strategy because the competitor has already grabbed 83% market share so ‘knorr’
needs to attract the large number of buyers in order to enlarge its market share. In doing
this, the price of Knorr will be lower from its competitor. Earlier in the characteristics of
market segmentation it has been showed that average usage rate is 4 packs per week, So,
UBL should adopt the product-mix pricing strategy like product bundle pricing including 4
packs together which will cost 100tk and which is 20tk. lower than its competitor.
Price structure, discounts, allowances
Prices of competitor
Prices to different levels (prices, trade, margins to wholesaler’s retailers)
V. Integrated marketing communication strategy
Integrated Creative message Strategy
Advertising – the creative and media strategy : Broadcast TV, Radio, print, outdoor,
transit
Sales and promotional aids, literature presentation kits
Point of sale promotion and advertising, merchandising
Sales promotion
Publicity/PR
Special events and sponsorships
Digital marketing – electronic /Viral, online, social networking, mobile marketing
Strategy integrated corporate social responsibility
VI. Sales and distribution strategies
Sales management, personal selling, sales force org. incentive program.
VII. Budgets and controls
Profit loss Statement
Marketing expense budget
Performance monitoring system
VIII. Timelines
Market Data Research data

5. Program Details
Attachments