Marketing Function in
FMCG Environment
Brand Building
The Role of Marketing in FMCG Environment
The FMCG market is particularly competitive

Category Leadership

Greater
Profitability

Higher
Investment

Growth
The Role of Marketing in FMCG Environment
The KEY decision outputs recorded are:
Market definition / segmentation
Category/Brand vision
Category drivers of value
Business goals
Brand/portfolio roles

Strategic actions
Detailed strategies /
capabilities
Targets / measures
What we will not do
Team behaviour / culture
Key risks

Where we will compete, where not and why
Our future intention of what we will be
Where our growth will come from
Our business target, growth, share or margin
Positioning, roles and strategy for the total brand
portfolio (global and key regional / local brands)
The main strategic actions / objectives / by
channel or global strategic Customer
How we will win, through specific actions and
developing capability: innovation, communication,
HR, resource priorities, etc.
Metrics and milestones to track progress
Must-stops and don’t starts
How we will act as a team, our category culture
What might destroy our plans
Developing a Marketing Strategy for FMCG
Case Study:
How familiar are you with the Unilever 6P‟s Model?
Market
dynamics &
financial
returns

Profit
Turnover

Value market size

Price

Market growth

Volume

Value share

Volume market size

Volume share

Buying
behaviour
Loyalty
Penetration

6P's
(brand levers)

Share of
purchase

Place

Proposition

Promotion

• Distribution
• Visibility
• Number of
lines
• Share of staff

• Consumer
attitude
• Brand health
• 360º comms
• Brand
investment
• ROI
• Competitor
activity

• ROI
• Depth of
discount
• Number of
promotions
• Compliance
• Competitor
activity

Average
pack size

Pack
• On shelf
impact
• Variant
diff’tiation
• Perceived
quality
• Competitor
impact

Purchase
frequency

Price

Product

• Price
elasticity
• Competitor
pricing
• Value pricing

• Performance
vs. claims
• Performance
vs.
competition
Completed 6Ps Detective Worksheet for „Magnum‟
case study
Surface
Issue

Magnum core variants losing share of multipacks market

Volume in market
Market
Dynamics
& Financials

Value in market
• Magnum value down
• Dilution of category
profitability

Who?
Buying
Behaviour

• Magnum volume
down
• Market volume
growing

What?

‘Savvy seekers’
segment

Place
6P Brand
Levers

Root
Issue

• 65%
distribution

• Switching to
competitor Choc
Snack brands

Proposition

Promotion

• 90% aided
• Losing
awareness
promotional
• Falling
slots to
Conviction
Cadbury
score benefit?

Price in market

Internal financials

• Magnum at ‘Every
Day Low Price’
• Magnum price 25%
below Choc Snack
segment price
ceiling

• Margin hit if extra
heavy promotions
appear

When?

Where?

• Switching driven by
competitor
promotional activity

Place

• No issues

• All grocery retail,
especially Tesco &
Asda

Price

Product

• Price not in
line with
premium
positioning in
the market

• Superior
chocolate
quality in
blind tasting

Declining loyalty to Magnum amongst Savvy Seeker group due to stronger competitor
promotional activity and perceived lack of Magnum unique benefits

WHY?
Category/Brand Stewardship:
Cif – significant media investment

Redefine cream segment
and our leadership

Enter and own new
specialist segments

Continue building
premium/trigger
segment
Brand Development

Brand Building

Customer Marketing
Interrelations between Departments/Functions
Brief for a “Home Task”






Select any of Unilever active brands
and produce a Marketing Plan for a
New product (e.g. new Tea or new
Deodorant)
Contents of Marketing Plan can be
found in Handouts;
Award:
- possibility to win a “SHADOW
DAY” within Unilever Marketing;
- possibility to get an Internship in
Unilever Marketing;

Deadline:

June, 1st

E-mail to:
jevgenija.glazunova@unilever.com
Thank You
and Welcome to Unilever!

Are You
A
Brand Detective?

Unilever marketing openflame

  • 1.
    Marketing Function in FMCGEnvironment Brand Building
  • 2.
    The Role ofMarketing in FMCG Environment The FMCG market is particularly competitive Category Leadership Greater Profitability Higher Investment Growth
  • 3.
    The Role ofMarketing in FMCG Environment The KEY decision outputs recorded are: Market definition / segmentation Category/Brand vision Category drivers of value Business goals Brand/portfolio roles Strategic actions Detailed strategies / capabilities Targets / measures What we will not do Team behaviour / culture Key risks Where we will compete, where not and why Our future intention of what we will be Where our growth will come from Our business target, growth, share or margin Positioning, roles and strategy for the total brand portfolio (global and key regional / local brands) The main strategic actions / objectives / by channel or global strategic Customer How we will win, through specific actions and developing capability: innovation, communication, HR, resource priorities, etc. Metrics and milestones to track progress Must-stops and don’t starts How we will act as a team, our category culture What might destroy our plans
  • 4.
    Developing a MarketingStrategy for FMCG
  • 5.
  • 6.
    How familiar areyou with the Unilever 6P‟s Model? Market dynamics & financial returns Profit Turnover Value market size Price Market growth Volume Value share Volume market size Volume share Buying behaviour Loyalty Penetration 6P's (brand levers) Share of purchase Place Proposition Promotion • Distribution • Visibility • Number of lines • Share of staff • Consumer attitude • Brand health • 360º comms • Brand investment • ROI • Competitor activity • ROI • Depth of discount • Number of promotions • Compliance • Competitor activity Average pack size Pack • On shelf impact • Variant diff’tiation • Perceived quality • Competitor impact Purchase frequency Price Product • Price elasticity • Competitor pricing • Value pricing • Performance vs. claims • Performance vs. competition
  • 7.
    Completed 6Ps DetectiveWorksheet for „Magnum‟ case study Surface Issue Magnum core variants losing share of multipacks market Volume in market Market Dynamics & Financials Value in market • Magnum value down • Dilution of category profitability Who? Buying Behaviour • Magnum volume down • Market volume growing What? ‘Savvy seekers’ segment Place 6P Brand Levers Root Issue • 65% distribution • Switching to competitor Choc Snack brands Proposition Promotion • 90% aided • Losing awareness promotional • Falling slots to Conviction Cadbury score benefit? Price in market Internal financials • Magnum at ‘Every Day Low Price’ • Magnum price 25% below Choc Snack segment price ceiling • Margin hit if extra heavy promotions appear When? Where? • Switching driven by competitor promotional activity Place • No issues • All grocery retail, especially Tesco & Asda Price Product • Price not in line with premium positioning in the market • Superior chocolate quality in blind tasting Declining loyalty to Magnum amongst Savvy Seeker group due to stronger competitor promotional activity and perceived lack of Magnum unique benefits WHY?
  • 8.
  • 9.
    Cif – significantmedia investment Redefine cream segment and our leadership Enter and own new specialist segments Continue building premium/trigger segment
  • 11.
  • 12.
  • 14.
    Brief for a“Home Task”    Select any of Unilever active brands and produce a Marketing Plan for a New product (e.g. new Tea or new Deodorant) Contents of Marketing Plan can be found in Handouts; Award: - possibility to win a “SHADOW DAY” within Unilever Marketing; - possibility to get an Internship in Unilever Marketing; Deadline: June, 1st E-mail to: jevgenija.glazunova@unilever.com
  • 15.
    Thank You and Welcometo Unilever! Are You A Brand Detective?