Analysis of Principles and Practices of Strategic Marketing Planning - Assignment Example

? Individual Assignment Contents Contents 2 Unilever 4 and Analysis of Principles and Practices of Strategic Marketing Planning-800 4 Strategic Marketing Planning 4 Analysis based on Business Portfolio-The BCG Matrix 7 Analysis Based on SWOT Analysis 8 Analysis Based on Ansoff Matrix 9 Analysis Based on Porter’s Generic Strategy Model 9 Analysis Based on Value-Additions 10 Competitive Analysis 10 Analysis Based on Strategic Alliances 10 Application of the Strategic Marketing Principles in Unilever 11 Mission and Objectives 11 Analysis Based on BCG Matrix 11 Analysis Based on SWOT Analysis 11 Analysis Based on Ansoff Matrix 12 Analysis Based on Porter’s Generic Strategy Model 13 Analysis Based on Competition 13 Financial Highlights 13 Recommendations based on the Analysis 13 References 15 Unilever Unilever is observed to be one of the world’s largest Fast-Moving-Consumer-Goods Company with Head Quarters based in both United Kingdom and Rotterdam in Netherlands. The company operates based on a plethora of global brands thereby endeavouring to touch each and every aspect of the lives of its global consumer force. Under its global umbrella Unilever tends to embrace brands pertaining to product categories ranging from consumer foods to other non-durable products relating to skin and fabric care. On an average the company with the use of its total 400 different brands tends to enhance the living of around two billion people around the world (Unilever, 2012). Hindustan Unilever Limited operates as a subsidiary of Unilever pertaining to the Indian market. The company encompasses the lives of the Indian consumers through its operation based on around 35 brands covering different product categories ranging from food to consumer non-durables pertaining to skin, hair, fabric care and also wellness products. Unilever which has a 52 percent stake in Hindustan Unilever accounted for €46.5 billion where its Indian subsidiary accounted for Rs. 21,736 Crores relating to annual sales for the financial year 2011-12 (Hindustan Unilever Limited, 2012). Description and Analysis of Principles and Practices of Strategic Marketing Planning-800 Strategic Marketing Planning The strategic marketing planning contains a set of principles and practices required to be followed by a company initiating with defining the objectives and the mission of the company. Further the marketing planning should also render an overall view of the respective market along with reflecting on the financial potential of the concern. The company having gained a rough overview of the market and thereby highlighted on its marketing objectives must focus on conducting a set of internal and external audits. Through the use of Internal Audit the firm can conduct an effective analysis to understand and reflect on its key strengths and weakness in relation to the opportunities and threats reflected in the external environment. Along with the same the company is also required to make forecasts at least for coming three years relating to its revenue and sales paradigm and thereby allocate financial and other resources for its effective accomplishment. Similarly the external audit function of the company must endeavour to focus on the macro environment of the firm relating to its social, economical, political, legal, technological and natural environment. This external audit conducted would help in reflecting on the market acceptability of the products and policies rendered by the company based on the current and future status. With the help of the audit conducted the firm can gain adequate knowledge of the marketing and environmental situation of the firm based on which strategies can be formulated. Strategic formulation holds to be a significant exercise in this direction where the management body of the firm in the light of the situational demand tends to reduce the prices of products or renders discounts and coupons to gain market penetration. Similarly the company can also focus on introduction of new products and thereby relate potential advertising and promotional strategies. In the course of rendering effective strategies the management renders some assumptions about future marketing and business trends and thereby tends to evaluate the future outcomes relating to revenue and profitability (McDonald, 2008, p.39-40, 47). The procedure of planning for strategic marketing can also be illustrated with the help of the following diagram. Figure 1 (McDonald, 2008, p.47) The analysis based on strategic marketing objectives that needs to be taken are generally based on certain models rendered as follows. Analysis based on Business Portfolio-The BCG Matrix The BCG Matrix or the Matrix designed by Boston Consulting Group tends to conduct an analysis of the market position of a company depending on the growth of business in the related category and also the marketing share of the company in such sector. In the matrix, Cash Cows are referred to as such that have a high market share even through rate of growth of business is less. Question marks are referred to such companies which have both low market share and rate of business growth is also less. Dogs tend to reflect an unpopular business sector comprising only of certain niche markets while Stars have both commendable market share and also belong to a growing market (Enz, 2009, 245-246). The same can be reflected through the following diagram. Figure 2 (Enz, 2009, p.245) Analysis Based on SWOT Analysis Another strategic tool that is employed for analysing pertaining to the planning function for effective marketing strategies relates to the SWOT Analysis. The SWOT Analysis is the acronym for Strength-Weakness-Opportunity-Threat Analysis in respect to a company. Through the use of the SWOT Analysis presented in the form of a matrix the company can effectively understand its key Strengths to help exploit the upcoming marketing Opportunities and also to reduce its Weaknesses to thereby neutralise the effect of emerging Threats (Griffin, 201,p.68-69). The following illustration would enhance the understanding of the same. Figure 3 (Griffin, 2011, p.69) Analysis Based on Ansoff Matrix The Matrix prepared by Ansoff is used to analyse the level of strategies that a firm needs to undertake to market products for both old and upcoming markets and also relating to those that would help in its expansion in old and upcoming market areas. The firm to create an enhanced place for commodities and merchandises in old markets needs to device effective marketing penetration strategies while for new markets needs to work on product development and innovations. Similarly to gain a larger market share in existing markets the firm needs to develop its market while in new markets the company can go for business diversification into other sectors (Meldrum and McDonald, 2007, p.126). The same can be shown by the following diagram. Figure 4 (Meldrum and McDonald, 2007, p.126) Analysis Based on Porter’s Generic Strategy Model The analysis of the strategies incorporated by the firm to excel above its competitors in terms of performance can also be conducted based on the Generic Model of Porter. The Generic Model takes into count three specific strategies that can be underlined as follows. The business firm can excel in the marketplace through a Cost-Leadership approach by reflecting low operation and business cost. Again the company can focus on creating a differentiated product or service that sets it apart from its competitors. Finally the firm can effectively focus on a narrow based or niche market rather than serving the broader and regular market (Botten, 2009, p.275). Analysis Based on Value-Additions Value-Additions are rendered by the company either by developing or innovating on the product or service categories or also through the development of effective promotional and distributional strategies to help reach the end consumers in an effective fashion. Moreover modifications rendered in the organisational structure of the concern also contribute to the value-addition process (Nag, 2008, p.145). Competitive Analysis Competitive Analysis rendered reflects the firm’s competitive position in respect other key players in the same industry. It thereby indicates on the activities the firm needs to take to sustain and develop its position or to defend its position in respect to others (Fleisher and Bensoussan, 2008, p.105). Analysis Based on Strategic Alliances The strategic potential gained by the firm in the industry can also be analysed in terms of the strategic alliances the business house has gained with other firms in the same industry. Strategic alliances can be in the form of mergers and acquisitions of other small and weak firms or also through the form of forming joint ventures and partnership agreements (Lamb, Hair and McDaniel, 2010, p.103). Application of the Strategic Marketing Principles in Unilever Mission and Objectives Hindustan Unilever Limited operates based on the policy of sustainable innovation and development of its consumer products and marketplace to help its consumers gain a more healthy and developed living. In that the company focuses to enhance its relationship with its stakeholder groups (Hindustan Unilever Limited-a, 2012). Analysis Based on BCG Matrix Hindustan Unilever Limited is found to operate based on a large number of brands segmented into different product categories pertaining to food and beverages, health, wellness and beauty, and also relating to other skin and fabric care categories. Each of the different categories reflected a growth in their market share volumes with also a growth in the related FMCG Market thereby reflecting a Star position for the company during 2011 (Hindustan Unilever Limited, 2012-b, p.10, 33, 34, 36). Analysis Based on SWOT Analysis In terms of business strengths, Hindustan Unilever Limited works on the parameter of innovation in terms of enhancing product quality and issues relating to development of supply chain to satisfy the needs of the consumers (Hindustan Unilever Limited-b, 2012, p.8, 10, 12, 13). In terms of weaknesses, the management body of Hindustan Unilever Limited observed that the company has a weak marketing base in terms of its healthy food category in effectively penetrating the rural market areas of India. Thus the company management had to render focus in modifying the product strategy to counter an effective penetration in the rural markets of India (Keat, Young and Banerjee, 2011, p.175-176). Development of the economic and social profile of the Indian consumers is tending to help Hindustan Unilever Limited gain new opportunities in terms of changing consumption and taste patterns. Thus the company can work in generating innovations in its product portfolio to meet growing and changing demands of its consumers (Hindustan Unilever Limited-b, 2012, p.9). Despite a large market share in the consumer goods industry, Hindustan Unilever Limited continues to face large amount of competition from different other consumer goods firms in terms of product pricing. Thus the company to sustain its position in the market is found to spend around 14 percent of its sales revenues on promotional activities to launch new products (Jain, 2012). Analysis Based on Ansoff Matrix Hindustan Unilever Limited is found to encourage development of its product base pertaining to different categories pertaining to Personal Care and Hygiene and also relating to Food category. This helps the firm to develop its market base. Again the firm through the development of newer products pertaining to water purifiers tended to gain new markets in the region (Hindustan Unilever Limited-b, 2012, p.8-9). Analysis Based on Porter’s Generic Strategy Model Hindustan Unilever Limited is found to render increased emphasis on rendering differentiation in the products relating to different categories through enhancement in research and development functions. Moreover the company endeavours to employ effective people to render best and effective services to consumers thereby differentiating its position (Hindustan Unilever Limited-b, 2012, p.38). Analysis Based on Competition Hindustan Unilever tends to face serious competition from other FMCG players like Procter and Gamble, Nestle, GlaxoSmithKline, ITC and the like in terms of both product and brand portfolio. Thus the company focuses on huge advertisement expenditure to sustain its marketing position (Agarwal, 2010, p.373). Financial Highlights Hindustan Unilever is found to gain significant amount of revenues and profits for the financial year of 2011. The company is found to gain net revenue of around Rs 22.12 Crores in addition to a net profit of Rs. 2.7 Crores. The company is also focusing to enhance its distribution base through enhancing its operation with the help of retail outlets (Hindustan Unilever Limited-b, 2012, p.2). Recommendations based on the Analysis It is observed based on the above analysis that Hindustan Lever tends to sustain a commanding position in the Fast-Moving-Consumer-Goods industry in India. However still the firm can enhance its service dimensions through diversification in its product portfolio whereby it can focus on generating financial services to the consumers. Entering the Insurance field would help the company gain a new market where it can focus on rendering non-life based insurance services. This portfolio would further help the company gain further enrichment in its business sector. Hindustan Lever can market and promote its insurance products through the help of both organised and non-organised retail arms through which it tends to sell its consumer goods. References Agarwal, D., 2010. Supply Chain Management:Strategy, Cases and Best Practices. New Delhi: Macmillan. Botten, N., 2009. Enterprise Strategy: Strategic Level, E3. United Kingdom: Elsevier. Enz, C., 2009. Hospitality Strategic Management: Concepts and Cases. New Jersey: John Wiley and Sons. Flisher, C., and Bensoussan, B., 2008. Business and Competitive Analysis: Effective Application of New and Classic Methods. New Delhi: Pearson Education India. Griffin, R., 2011. Fundamentals of Management. United States: Cengage Learning. Hindustan Unilever Limited, 2012. Introduction to HUL [Online]. Available at: [Accessed 17 August, 2012]. Hindustan Unilever Limited-a, 2012. Purpose & principles [Online]. Available at: [Accessed 17 August, 2012]. Hindustan Unilever Limited-b, 2012. Annual Report: 2011-12 [Pdf]. Available at: [Accessed 17 August, 2012]. Jain, S., 2012. In an industry with rising competition and shrinking margins, HUL is driving profitability through volume growth [Online]. Available at: [Accessed 17 August, 2012]. Keat, P., Young, P., and Banerjee, S., 2011. Managerial Economics: Economic Tools for Today S Decision Makers, 6/E. New Delhi: Pearson Education India. Lamb, C., Hair, J., and McDaniel, C., 2010. MKTG4 2010. United States: Cengage Learning. McDonald, M., 2008. Malcolm McDonald on Marketing Planning: Understanding Marketing Plans and Strategy. United States: Kogan Page Publishers. Meldrum, M., and McDonald, M., 2007. Marketing in a Nutshell: Key Concepts for Non-Specialists. United States: Butterworth-Heinemann. Nag, A., 2008. Strategic Marketing. New Delhi: Macmillan. Unilever, 2012. Introduction to Unilever [Online]. Available at: [Accessed 17 August, 2012]. Read More