Running head: MARKETING STRATEGY Unit 2 Group Project 1 11 MARKETING STRATEGY Unit 2 Group Project Tamara Bailey Rosalind Perez Jessica Davis Hannah Chenier Annie Hall Valerie Hall American Intercontinental University Unit 2 Group Project MKTG 205 – Principles of Marketing May 11, 2014 Abstract This paper will define and explain what segmentation is with the discussion of different segmentation bases, along with the description of the target markets and why they will be profitable for our product. With the introduction of competitors and their positioning and the competitive advantages along with our value proposition and developmental statement. Marketing Strategy Introduction With the marketing strategy being the foundation of a marketing plan we will introduce a comprehensive plan to the organizations marketing goal. In order to sustain the business’s profit potential after conducting market research for the product being identified. Definition of the Segmentation Bases In order to have an effective segmentation base the company will identify and measure each segment whether it be quantitative or qualitative. In doing so the company’s segmentation process will be a long term strategy that is consistent with our mission and long term objectives. (Editorial board, 2014). Companies use segmentation in order to figure out which group of consumers they are targeting. Age, income, sex, marital status, living area, and generation all shape segmentation. Each consumer has a different need for each product. Their needs are depended on their characteristics. Each message is sent to a group, but the consumer must feel like an individual. Census is a very important demographic tool. They can show the company about the area’s population status. Companies cannot get all their information about the surrounding consumers just by using the census. Companies get more information about the consumers by using market surveys. Defining the segmentation bases for marketing the consumers for our laundry detergent will include a process of creating sub groups from the population to specifically target them. (Richards, L. 2014). By identifying specific groups of people based on common characteristics will help in the designing of a marketing mix that will match the expectations of the consumers being targeted. (Richards, L. 2014). Targeting segmented markets include differencing of the products as well as the message. For example, some grocery stores are noticing that the Spanish population is expanding. They can target these consumers buy making advertising bilingual. Advertisements can be put into Spanish-language like newspaper ads and coupons. This will give a better understanding of identifying our segments measurability of an effective size, accessibility through promotional efforts, our devotion to adhere to our policies and procedures of the company, and pricing the product. (Editorial.

1. Running head: MARKETING STRATEGY
Unit 2 Group Project 1
11
MARKETING STRATEGY Unit 2 Group Project
Tamara Bailey
Rosalind Perez
Jessica Davis
Hannah Chenier
Annie Hall
Valerie Hall
American Intercontinental University
Unit 2 Group Project
MKTG 205 – Principles of Marketing
May 11, 2014
Abstract
This paper will define and explain what segmentation is with
the discussion of different segmentation bases, along with the
description of the target markets and why they will be profitable
for our product. With the introduction of competitors and their
positioning and the competitive advantages along with our value
proposition and developmental statement.
Marketing Strategy
Introduction
With the marketing strategy being the foundation of a marketing

2. plan we will introduce a comprehensive plan to the
organizations marketing goal. In order to sustain the business’s
profit potential after conducting market research for the product
being identified.
Definition of the Segmentation Bases
In order to have an effective segmentation base the company
will identify and measure each segment whether it be
quantitative or qualitative. In doing so the company’s
segmentation process will be a long term strategy that is
consistent with our mission and long term objectives. (Editorial
board, 2014). Companies use segmentation in order to figure out
which group of consumers they are targeting. Age, income, sex,
marital status, living area, and generation all shape
segmentation. Each consumer has a different need for each
product. Their needs are depended on their characteristics. Each
message is sent to a group, but the consumer must feel like an
individual. Census is a very important demographic tool. They
can show the company about the area’s population status.
Companies cannot get all their information about the
surrounding consumers just by using the census. Companies get
more information about the consumers by using market surveys.
Defining the segmentation bases for marketing the consumers
for our laundry detergent will include a process of creating sub
groups from the population to specifically target them.
(Richards, L. 2014). By identifying specific groups of people
based on common characteristics will help in the designing of a
marketing mix that will match the expectations of the
consumers being targeted. (Richards, L. 2014). Targeting
segmented markets include differencing of the products as well
as the message. For example, some grocery stores are noticing
that the Spanish population is expanding. They can target these
consumers buy making advertising bilingual. Advertisements
can be put into Spanish-language like newspaper ads and
coupons. This will give a better understanding of identifying
our segments measurability of an effective size, accessibility
through promotional efforts, our devotion to adhere to our

3. policies and procedures of the company, and pricing the
product. (Editorial board, 2014). Then the company will
determine the marketing position in which we will occupy a
distinctive position in our market place in order to retain
consumer based loyalty, relationships, retention, and above all
satisfaction. (Lake, L. 2014).
Description of Each of the Target Markets
In target marketing there are five steps which are as follows: (1)
Behavioral segmentation, which groups prospective buyers by
demographics and buying behavior, the determination of the
following criteria based on age, gender, income level, family
size, ethnic background, marital status, and occupation. Census
is a very important demographic tool. They can show the
company about the area’s population status. Companies cannot
get all their information about the surrounding consumers just
by using the census. Companies get more information about the
consumers by using market surveys. (2) Psychographic
segmentation, which analyzes the consumer’s interest or
hobbies, and personality traits, this will determine how our
product will fit into one’s lifestyle. (3) Itemizing the benefit of
our product, which determines the needs of the consumer’s
fulfillment, we will use this to learn exactly what the consumer
is expecting to gain by using our laundry detergent versus any
other brand. (4) Researching our competitions consumer base
and surveying our already established consumer base will give
us a better idea of what motivates the consumers purchasing
decisions. (5) Compile a consumer profile of our targeted
audience, which will describe demographic and psychographic
information and data to identify what influences the buying
behavior for the targeted consumers. (Jones, T., 2006).
Product is not just an item that can be touched or seen it can
also be a service contract, such as one that a person can buy
when purchasing a washing machine (Editorial Board, 2014, p.
4). These contracts can extend a warranty on a washing
machine for repairs. A motor can go out on a washing machine
or even timer and both items can come under this additional

4. service contract or agreement that was purchased. Instead of a
person paying the full amount for repairs they may only have to
pay a deductible or a small portion for the repairs.
Place goes behind an item such as a washing machine sitting in
a store on the showroom floor. Washing machines are sold by
department stores, or small specialty appliance stores and even
on-line. Usually, when a department store is involved they are
able to have a larger inventory that is kept in a warehouse
versus a specialty appliance store owned by an individual.
When an item is sold on-line the merchandise is usually housed
in a warehouse and is shipped to the wholesaler or to the
retailer in a matter days or weeks. Once the item is sold the
merchandise is loaded in a delivery truck and delivered to a
person’s home or place of business or can be picked up by the
purchaser (Editorial Board, 2014, p. 5).
Prices of merchandise amongst stores or wholesalers for the
same product can vary in price. A specialty appliance store
may charge less for the same Maytag washer that has 22 cycles
as say, Sears. The reason for this is due to the fixed costs,
which includes rent that the store pays on a monthly basis. It is
also dependent on the clientele that is shopping for the item. If
a person where to purchase a washer in San Francisco,
California the cost of a washer would be more expensive due to
the rents that are charged to house the merchandise but if a
shopper were to purchase the same item in Pleasant Hill,
California the price may be cheaper since rents are lower in that
area therefore, the cost of the merchandise drops considerably.
Promotion is creating a person to have a deep desire to buy an
item. The promotion could be how the item is displayed,
advertised on TV, verbally recommended from others, or seen
on an on-line advertising on Yahoo.
Analysis of Two Competitors and their Positioning
Unilever and Henkel, strive to create value for its market
through competitive positioning. It’s much easier for a company
in the laundry detergent industry to influence the market and
win mindshare if it can clearly differentiate what it offers. A

5. good market positioning is usually influenced by the company’s
market profile, as well as its customer segments (Lingard,
2012).
Unilever founded in 1930 and based in the United Kingdom,
Unilever is a multinational enterprise that has a presence all
over the world; its sells its products in more than 170 countries.
Unilever’s portfolio basically includes some of the world’s best
known and most loved brands across Foods and Home and
Personal Care categories (Lingard, 2012). This company targets
all types of markets (people) around the world, for instance,
every brand it develops has its own target group. Since it’s one
of the oldest brands, Unilever continues to introduce new ideas
into its products so as to satisfy the changing needs of its
customers.
Henkel, headquartered in Düsseldorf, Germany, has been
in business for over 133 years, and it promises to deliver to
laundry detergent products that are environmentally friendly.
Henkel has two main competitors: Unilever and Procter &
Gamble. However, the company’s market segments are
somewhat narrowed compared to Unilever, since the company
produces a fewer products. Just like Unilever, Henkel’s
products are sold all over the world (Alperowicz, 2013).
Competition is fierce when it comes to purchasing
appliances. There are many stores out there trying to have
people come into their stores to buy their merchandise versus
another competitor’s store. Take for example: Sears and Home
Depot. Both sell many of the same items and the same brand
names and both want a customer to buy from them. Sears will
offer free deliver on certain types of sale days such as one
called Black Friday for orders over $399 (Sears, 2014). This
brings customers into the store that will not or cannot afford to
pay for delivery. Home Depot on the other hand has sales on
appliances that offer savings if you spend a certain dollar
amount such as $996-$1245 for a total savings of $100 (Home
Depot, 2014). Both companies offer extended warranties on
washers or other appliances.

6. Analysis of Competitive Advantages
When a company’s name is well known and have been around
for years they develop customer loyalty. This is part of the
company’s competitive advantages. This edge allows them to
increase earnings for their shareholders without losing business.
For example, consumers are generally pretty picky about which
brand of laundry detergent they use. If the price of their favorite
laundry detergent increases by 10 cents, they will most likely be
OK with this and continue to use the product because they are
loyal to the brand. In a commodity type business where
competitors sell the same product, the low cost producer has the
advantage. They can sell products at a discount to their
competitors and still hit their margins. If the products are the
same, the customer will choose the one at the best price.
Unilever’s most significant competitive strategy is mainly
founded on the company’s innovative ideas that keep getting
bigger and better. The strategy is reinforced by the company’s
high level value for its intense marketing and advertising
activities. Unilever differentiates its products from that of its
key competitors, such as Henkel and Proctor and Gamble by
ensuring that its products are healthier like less sodium Side
Kicks. Additionally, a strong portfolio, successful restructure,
focus on mass market, widening consumer base and building on
brand equity are elements create relatively stronger competitive
advantages for Unilever (Lingard, 2012).
Since Henkel has been around longer than Unilever, its
reputation is one of its competitive advantages. The company is
also engaged in the production of products that are
environmental friendly, and it differentiates its products
through innovation. Driving growth through innovation and
strong brand is Henkel's growth strategy.
Development of Value Proposition and Positioning Statement
According to Unilever’s financial report, 2013, the development
of company’s value proposition and positioning statement is
based on sustainable, profitable growth that creates long-term
value for its shareholders, people, and business partners,

7. especially through the adoption of the highest standards of
corporate behavior (Penders, 2011).. Henkel creates value for
its products through the development of superior brands and
technologies, as well as commitment to delivery of value to its
key shareholders and dedication to sustainability through
corporate social responsibility (Henkel exhibits latest adhesives
targeted at the filtration industry, 2013).
Both Sears and Home Depot offers several things to bring in
customers to purchase large items such as a washing machine.
The both have extended warranties that cover certain repairs on
the washers, they offer free delivery with certain sale days and
lastly, they both have major credit cards that a customer can use
and make monthly payments so they have the abilities to make a
large purchase with no money down. This is their value
proposition that they give to each customer that comes into their
stores and make purchase an expensive item like a washing
machine. Both Sears and Home Depot make positioning
statement in much the same way. All of their merchandise is on
their showroom floors, showing the different models of the
washers, the prices of the washers and what colors the washers
come in. Not only are the items in a position to be seen openly
by the consumer, the stores also offer sales people that will
come up to a person and ask them if they need help and if they
are told “not at this time”, the sales person offers services when
needed (Editorial Board, 2014).
Conclusion
In conclusion the laundry detergent industry is one of the
most competitive industries, not only in the United States, but
also other parts of the world, and thus provision of value to
clients in the industry depends on how a company sets itself
apart from its main competitors.
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