Introduction to Marketing Management
Now-a-days, marketing management has become very important for growth and success of business enterprise. Further, it can be defined as the process in which companies oversee and plan activities such as products development, sales, promotion and advertisement. One of the core purposes of marketing is to increase sales and profitability by creating more awareness of products among people in the market. The present report is based on Unilever which is a multinational company having headquarter in London UK. Its products range includes personal care products, beverages, food and cleaning agents. This report highlights innovative strategic marketing plan for the new range of oats as a product developed by Unilever.
Vision of Unilever behind launching of new product is to provide healthy food products to all its customers. Further, it also wants to increase its positive impact on society.
- Sale new range of oats to more than 50,000 customers in first 6 months.
- Increase sales of oats by 25% every year.
It can be stated that defining target market is one of the important and most crucial aspects of every marketing plan. Now-a-days, people have become more conscious towards their health and are looking forward to consuming healthier and more nutritious breakfast. Oats have emerged as the healthiest food products as compared to other products. Further, oats consumption is the best way to gain strength and energy for the whole day. Unilever is now developing new range of oats to meet the needs of people in market. The ideal customers of its new range of oats will be people between the age group of 18-50 years. Unilever has an opportunity to satisfy this identified need of people in market. Therefore, in more specific terms, the brand will target people which are health conscious. Other than this, students, gym members and working professionals will be mainly targeted.
Market segmentation can be termed as the process in which organizations divide their broad target market into various subsets. Unilever will segment its entire target market on the basis of demographic variables. In addition to this, in streamline to its new products, oats will be introduced in four flavours which are strawberry, chocolate, banana and normal one. All these flavours will help in attracting men and women from the entire market segments. Market segmentation for the brand is provided below as:
School and college going individuals will be targeted by Unilever for its new range of oats. Students are young and it has become very important for them to stay fit and healthy. Therefore, these products will help them to have more healthy and nutritious breakfast in order to stay fit.
Unilever will also target people who are member of gym or other fitness club. Further, the brand will communicate these people that after working out, consumption of Unilever’s oat are going to be extra beneficial for their health.
It is going to be one of the major target market segments for new product. The life of these people have become so engaged in work that sometimes they do not have time to make and have breakfast. This affects their entire health and also has negative impact on their body. Unilever's oats will be easy to cook which means that it will be prepared in 5 minutes. Its different flavours will attract both men and women which fall in this market segment.
Strategy for target market segment
In order to interact and communicate with target market, Unilever will be using variety of online and offline strategies. The brand is going to promote its new oats on social media sites such as Facebook and Twitter. In the present scenario, internet has emerged as one of the most potential sources of marketing and promoting products. Thus, this organization will use this platform to make people aware about its new product in the market. The brand is very active on social media sites and it will display the features of oats on both Facebook and Twitter. Other than this, advertisements will be also displayed on television, newspapers and health related magazines. This will support in reaching mass audience within a short span of time. Promotional events will be also carried out by the brand in schools, colleges and corporate offices. Unilever is also going to distribute free sample of its oats to people who belongs to its target market segments.
Need and requirements of target market
People in the market are in search of product which can meet their needs of having more nutritious and healthier breakfast. Many brands are providing variety of products such as cereals, noodles etc. but they contain added preservatives which are not beneficial for health. This means that the available brands in market are also not able to meet the needs and requirements of people at its best. It can be also stated that many people underestimate the importance of breakfast. Sometimes, they only have a cup of coffee or glass of juice in terms of breakfast . New oats launched by Unilever will consist of features such as low sugar along with more carbohydrates and fibers which are very good for health. The product can be consumed with milk in order to provide protein and calcium to body. Thus, it can be stated that new oats of Unilever will be able to satisfy the needs and requirements of people in market in the best possible manner.
Determining effective channels of distributions is also a very important part of marketing plans. Further, it can be defined as the process in which businesses determine how it is going to provide products to people in market. Unilever will distribute its new range of oats with the help of all retail stores. Customers will be able to buy oats from all the major stores which can provide other products of Unilever as well. Majority of its products are being disturbed and sold by Unilever's own sales force (Our strategy, 2016). Along with this, independent agents, brokers, grocery retailers, food service distributors will be also taking care of distribution of its new products which are oats. Being a multinational organization, the brand sales its products in more than 150 countries all across the globe. Thus, its new product will be sold in various countries with the help of manufacturing and exports.
Present food market possesses intense competition as there are number of large and small organizations that are competing with each other. Oats of Unilever will be facing tough competition from brands like Kellogg and Quaker. Both the above stated names are considered as renowned brands in the breakfast market of the entire world. It is going to be very hard for Unilever to attract customers for its new products and capture market share from the above mentioned brands. In order to gain competitive advantage, Unilever is required to adopt strategies such as cost leadership or product differentiation. It can be stated that the oats will be provided at low prices during the initial stages. This will encourage people in market to buy and consume oats at-least once. Further, with the help of unique features and healthy nutrients, the brand will be able to gain customers loyalty and satisfaction. In order to make its product successful in long run, the organization will need to take care of all major competitive forces and frame strategies according to the same.
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In the modern era, it has become very important for businesses to communicate with their customers at regular intervals. This supports in developing good relations and also helps in increasing customer loyalty. Unilever will use various kind of online and offline sources to interact with people and make them aware about its new products. It sales teams will be responsible for carrying out various kind of promotional events in schools, colleges, universities, corporate offices and fitness centers. Further, people will be informed about the benefit which is associated with the consumption of new oats launched by Unilever. On the other hand, ads and promotional activities will also be carried on social networking sites. Regular and loyal customers of the brand will be provided with emails and mobile messages regarding new products. This will not only result in attracting high number of customers but will also support Unilever in enhancing the degree of customer satisfaction and loyalty.
Marketing plan strategy
Before launching its new oats, Unilever will be carrying out activities such as test marketing. In this process, sample product will be distributed to some people from the entire target market segments. These people will be asked to consume the product and give their reviews for the same. Those reviews will be regarding taste of oats, its quality, prices, packaging, differentiation etc. This will help Unilever in identifying whether its new product will be accepted in the market or not. On the basis of feedbacks and reviews, the brand is also going to make some changes in its product. A low pricing strategy will be adopted by Unilever and it will be also taking care of its packaging. Other than this, the brand is going to position its new oats in market by its nutritional values and health benefits. These all factors will support in getting the best possible and desired outcomes regarding products launch. Along with this, the brand is also going to attend strategy of relationship marketing. Sales forces will be encouraged for developing effective relationship with people in market at the time of promoting product. This will result in increasing sales as customers will love to spend money on oats launched by Unilever. On the other hand, the taste and ingredients of oats are going to be so unique that it will also encourage word of mouth marketing from all customers. Sales force of the organization is going to work with media in order to create awareness of new products and state benefit of oats to people in marketplace.
In order to implement and carry out the plan, various resources will be required by organization. Human resources are needed to carry out events and marketing of the new oats launched by Unilever. These individuals need to be highly skilled and should have knowledge regarding the current market trends. On the other hand, the organization will also need technological resources to carry out promotion and advertisements via email and social media. At last, financial resources are also necessary to implement the plan in the best possible manner and get desired results. The organization will require finance in activities such as test marketing, events, promotions, advertisement etc. Unilever will make sure that it arranges all the required resources within a given time-frame in order to get the best possible results.
Monitoring of all activities and processes is going to be an important stage in the entire marketing plan. A team will be developed to monitor the effectiveness and results of all the activities carried out to market the new range of oats. One of the main roles of monitoring will be to determine gap between desired outcomes and actual ones. This will support in identification of loop holes in existing marketing plan. Further, corrective measures will be taken to eliminate those identified constraints and get the desired outcomes.
From the above report, it can be concluded that the above stated marketing plan will help Unilever in attracting customers for its new products which are oats. It can be asserted that the brand is going to face intense competition from market players such as Kellogg's and Quaker. Low price strategy will support Unilever in attracting adequate number of customers during initial stage. It can be concluded that Unilever's target and segmented market is highly potential. Therefore, it will provide adequate opportunity for growth and development for its new product in the market.
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