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Marketing at Unilever

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Table of Contents 1 Marketing Analysis Unilever 1 Competition 1 Competitor Analysis 1 Benchmark 1 Competitor Strategy 2 Positioning 3 Segmentation and Targeting 3 Future Positioning 3 Positioning Map 3 Marketing Mix 4 Communication 4 Identifying the target audience 4 Determining the Communication Objectives 4 Designing a message 4 Choosing media 5 Collecting feedback 5 Conclusion 5 References 6

Marketing Analysis Unilever
In this report is to seen the marketing analysis for the product probiotic milk. Flora Pro-Activ Probiotic milk exists and being sold in many countries except for the Netherlands and Belgium and some other European countries. The choosen country is Belgium.
Food and Agriculture Organization of the United Nations (FAO) defines probiotics as "living microorganisms, which, when administered in adequate amounts, confer a health benefit on the host. Probiotics add friendly bacteria to our digestive system, improving absorption of nutrients and vitamins.(FAO, 2014) Improved absorption means good digestion, which allows our body to get the most nutritional value from the foods we eat and helps to regulate our digestive system. Also yoghurt contains good bacteria’s but not all of them reach our gut.
The global probiotic market will approach $30 billion in 2015. (Ramharack, Michigan University, 2014)
Competition
Competitor Analysis
Unilever’s biggest competitor in probiotic drink is Danone. Danone has several brands that offers probiotics for digestive system. One of those brands is Actimel. Actimel contains 10 billion Lactobacillus casei bactery which helps to strengthen natural defences. Danone possess market share of 70% in Europe for probiotic food and drink. (Danone Annual Report, 2014) This brand has a good image within consumers what drives this process “easier” because the brand already benefits both from a good fame and from a recognized level of quality within consumers. Actimel is a refrigerated drink that scores also highly on consumer taste tests. Availability in several flavours with a new flavour released each year Actimel has more variation than any other probiotic drink company. Unilever’s second competitor Activia is again from Danone Group. Activia contains Bifidus ActiRegularis bacteria which helps to regulate intestinal transit. Activia is a yoghurt which also has fruit flavors and fresh fruit.
Unilever’s third competitor is Yakult. Yakult has 30% of market share in Europe. One bottle contains billions of Lactobacillus casei bacteria which has a positive effect on the digestive system. Yakult has been tested since 1935 also by independent health organizations and proves to be one of the most affective brand in the world. Yakult has also low sugar option which contains so little milk sugar that it can be drink by a lactose intolerant person while the other brands cannot. Yakult produces only probiotic drink which enables them to specialize, test and improve constantly.
Also Nestle has probiotic drink but they do not sell it in Belgium or in the Netherlands.
Benchmark
It can be seen in the table that the probiotic drinks and yoghurts vary significantly. All four products are based on the main ingredient fermented milk with good bacteria’s.
The most expensive one is the Danone’s Actimel with 3.59 euros. The cheapest ones according to ratio calculation is Yakult, followed by Pro-Activ. Package material of all and the design of all except Yakult is similar. Yakult gives premium feeling with basic colours and minimum attention. Yakult has only natural and light option. Yakult is also gluten free which is very important to lactose intolerant people and vegans. Actimel has a fat free option and option for children. Pro-Activ has proven cholesterol lowering affect if used every day. Product | Unilever’s Flora Pro-ActivYoghurt Drink | Danone’s ActimelYoghurt Drink | Danone’s Activia Yoghurt | YakultYoghurt Drink | Main Ingredients | Plant sterol esters, sugar, oligofructose, antioxidant, protein, fruit | L. Casei Danone, Lactobacillus Bulgaricus, Streptococcus Thermophilus, sugar, vitamin C, fruit | Bifidus Actiregularis, fruit, sugar, coolhydrates, | Lactobacillus casei Shirota, glucose, sugar, flavor | Flavors | Strawberry, Pomegranate & Raspberry, Original, Mango & Cherry | Natural, Strawberry, Multifruit, 0% fat, Actikids | Mango & Passionfruit, Blueberry & Acai, Raspberry & Lychee, Prune | Yakult, Yakult Light | Price Level | Medium€2.49 | High€3.59 | Medium 1.93 | High€2.86 | Packaging Material | Polystrene Plastic, Recyclable | Polystrene Plastic, Recyclable | Polystrene Plastic, Recyclable | Polystrene plastic,Recyclable | Packaging Design | 6x100 ml plastic bottles hold by cardboard | 8x100ml plastic bottles hold by cardboard | 4x125gr plastic cubs hold by cardboard | 7x65ml plastic bottles hold by nylon packaging | Packaging Image | Red and green on white, colorfull and attention drawing | Red, blue, pink, turquoise on white Colorfull but subtle | Green, red, yellow and whiteColorfull and natural feeling | Red and white, High quality premium feeling | Special Diets | Yes,Cholesterol lowering | Yes,Fat free option | No | YesGluten free |
Looking at all these factors, Pro-Activ is one of the best options. It offers health benefits, has wide range of variations and has medium price with lowest package price.

Competitor Strategy
It is recommended for Unilever to follow Porter’s differentiation strategy because although there are already 3 other probiotic products available, Pro-Activ offers health benefits that no other company offers with similar products. Pro-Activ has proven that it genuinely lowers the cholesterol. Yakult, Actimel and Activia have no cholesterol lowering qualities at all while it contains good bacterias that help digestive system like the other three companies. All three companies concentrate only on digestive system and only Yakult has proven that the bacteria’s reaches the gut alive. Cholesterol and diabetes is one of the biggest health problem in Europe. Therefore differentiation strategy is perfect for this already very specific market.
Positioning
Segmentation and Targeting
Segmentation recommended to be done demographic, psychographic and geographically. Pro- With Pro-Activ Unilever is able to target demographically man and women from age of 25 and above for its cholesterol lowering and preventing high cholesterol purposes. Also high income segment because the product is more suitable for people above average income. For example 1,5l fresh milk costs approximately 90 cent while 100ml Pro-Activ costs 44 cent. Which is expensive for a medium or low income. Psychographically, socially conscious people that are high educated and adapted healthy lifestyles. Geographically, Belgium and it is every region.
Future Positioning
People are getting more and more aware of conscious lifestyle, healthy foods and environmentally responsible products. People see at the products labels like ‘’sugar free’’, ‘’fat free’’ ‘’cruelty free’’, ‘’organic’’, ‘’vegan’’ etc. It is a linear upward trend and therefore it is recommended for Unilever to position itself as socially responsible company with products that has strong attributes and benefits that distinguish itself from competitors such as Pro-Activ milk. This is also a typical value proposition strategy.
Unilever’s posititioning statement: ‘’To conscious people who wants to improve their vitality and prevent or lower cholesterol, Pro-Activ is a healthy solution that is proven to work with incredible flavors that will make you feel like you can take up the whole world.’’
Positioning Map
High Price
High Price

Variations
Variations
Natural
Natural

Low Price
Low Price

Marketing Mix
Product: High quality product with a lot of variations for different tastes and needs that gives vitality and lowers cholesterol significantly. Core product is the health benefit. Actual product is the probiotic milk. Augmented product; is the guarantee that the product will not be spoiled before the expire date. Pro-Activ line has already high quality awareness because of the good reputation. Probiotic milk Pro-Activ is packed in small 100 ml convenient bottles that is hold with cardboard.
Price: Low price for high segment in comparison with its competitors. Unilever is recommended to use value-added pricing because the product itself is very specific and niche. Customer is ready to pay certain amount of money when it comes to health and they have above average income.
Place: Pro-Activ is recommended to be made in Belgium with low transportation and logistics cost also raw materials available at low prices like milk and be sold selectively to high end supermarkets and retailers not using direct channels.
Promotion: In Belgium uncertainty of demand for probiotics is low. Also the quantity of old people with cholesterol and educated young people is high. Therefore Unilever is recommended to use pull strategy. Pro-Activ should be communicated through advertising via television, billboards, television programs that gives advice to consumer, magazines etc.
In Belgium Actimel made a commercial that emphasize that the whole family including children can benefit from Actimel especially in winter when the immune system is at the weakest. The family is playing snowball and making snowman while ‘’I feel good’’ song is playing at the background. Which sends a message that if you drink Actimel daily in the morning you will feel good for the rest of the day.
This product can distinguish itself with its unique health benefits that no other non-pharmaceutical product offers. Which is lowering the cholesterol plus helping the digestive system and vitality.
Communication
Identifying the Target Audience
The audience is the current buyers of our competitors and new potential buyers who never heard of Pro-Activ probiotic milk. The audience is not general public but individuals with specific needs.
Determining the Communication Objectives
Target audience is aware of the product line Pro-Activ and its cholesterol lowering purpose. However they are not aware that they can get it in combination with probiotic milk which is meant for good digestive system. Therefore building knowledge about Pro-Activ is important. It can be done by television commercials and advertisement.
Designing a Message
Attention: Pro-Activ will draw attention by emphasizing how important is to take care of our heart and that hectic life and stress can influence our immune system.
Interest: Pro-Activ will promise target audience that using its product will result in better digestive system, lower cholesterol and feel physically and mentally better about themselves.
Desire: Product’s rational and emotional appeal will lead to desire of the product.
Action: Pro-Activ will tell our audience where they can get the product and in fact we will give introduction discount as an incentive.
Message: ‘’Heart is the most important organ in a body, and cholesterol is very common enemy. With Pro-Activ you can prevent and/or lower cholesterol while you help your digestive system. It is only a supermarket away!’’
Choosing media
Pro-Activ will be given to independent test panels and organizations to promote the product and its working which will set off a word-off-mouth influence.
Pro-Activ should sponsor the TV program ‘’Belgium’s God Talent’’ because it is second best watched program after 7 o’clock news with 39% of the popuation. Pro-Activ should also be advertised at TV channels like ‘’Vtm’’ and ‘’Een’’(Dutch speaking) and also ‘’RTBF’’ and ‘’La Une’’(French speaking). Radio channels like ‘’Qmusic, Radio 1 and Radio 2’’ should also publish commercials (made for radio). Pro-Activ will use also billboards, social media, events etc.
Pro-Activ will start first with television and then magazines and billboards. After that opinion leaders will be created which will communicate through social media.
Collecting feedback
Pro-Activ will research if the message is received as we it meant to be, if the audience remembers the product and brand, if they like the product, if they talked about the product to others and if they bought the product. This will give Pro-Activ an overview of what is needed to improve to create satisfaction.

Conclusion
Analysing the 3 biggest an only competitors shows us that pro-Activ stands a good chance between those three brands. Its low price comparing to its competitors and unique health benefits will win the customers over. Belgium is a country with high rate in cholesterol which will be a good reason to buy the product. The people are also highly educated and therefore more conscious about what they eat and what they drink. The target group is specific and therefore Unilever can concentrate completely to that group. Good reputation of Pro-Activ line from Becel and other products will give this product a head start and competitive advantage.
References
Actimel. (2014). http://www.actimel.be. Retrieved from http://www.actimel.be/nl-index.php
Actimel. (2015). http://www.actimel.be/nl. Retrieved from http://www.actimel.be/nl
Activia. (2015). Retrieved from http://www.activia.be/: http://www.activia.be/
American Society for Clinical Nutrition. (2001). Retrieved from http://ajcn.nutrition.org: http://ajcn.nutrition.org/content/73/2/476s.full
De Morgen. (2007). Retrieved from http://www.vilt.be: http://www.vilt.be/Danone_investeert_in_Actimel-productie_te_Rotselaar
Kotler, P., Armstrong, G., Harris, L. C., & Piercy, N. (2013). Principles of Marketing. Pearson.
Kovacs, B. (2014). http://www.medicinenet.com. Retrieved from http://www.medicinenet.com/probiotics/article.htm#what_are_probiotics
Telegraph, T. (2014, September). Retrieved from http://www.telegraph.co.uk/: http://www.telegraph.co.uk/news/science/11090392/Why-claims-for-good-bacteria-drinks-may-be-difficult-to-stomach.html
The Centre for Food and Health Studies Ltd. (2013). https://www.academia.edu. Retrieved from https://www.academia.edu/5513190/ACTIMEL_CASE_STUDY
Unilever. (2014). Unilever Annual Report 2014.
Unilever Pro-Activ. (2015). http://www.floraproactiv.co.uk/proactiv/. Retrieved from http://www.floraproactiv.co.uk/proactiv/
Yakult. (2015). Retrieved from http://nl.yakult.be/: http://nl.yakult.be/

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