Unilever Pakistan Limited (UPL) is the largest fast-moving consumer goods company in Pakistan. It was established in 1948 and is a subsidiary of Unilever Plc. UPL operates six factories around Pakistan and produces brands such as Wall's, Brooke Bond, Lipton, Blue Band, and Rafhan. Engro Foods is also a major food processing company in Pakistan, established in 2003 as a subsidiary of Engro Corporation. Both companies have strengths as leading FMCG producers, but also face weaknesses from competitors and external threats in the dynamic Pakistani market.

1. Unilever Pakistan Limited
From Wikipedia, the free encyclopedia
Unilever Pakistan
Type Public
Traded as KSE: ULEVER Delisted in 2013
Industry Fast-moving consumer goods
Founded 1948
Headquarters Karachi, Pakistan
Key people Sheikh Mansoor Ali (G.M
Operations)
Products Home & Personal Care, Food &
Beverages
Revenue ₨69976
million (US$670 million) (2015)[1]
Net income ₨7766 million (US$74 million)
(2015)[1]
Parent Unilever Plc (70.4%) [2]
Website Unilever Pakistan
The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was established
in Pakistan in 1948. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory.
Unilever Pakistan is the largest fast-moving consumer goods (FMCG) company in Pakistan, as well as one of
the largest multinationals operating in the country. Now operating six factories at different locations around the
country. The Unilever's head office was shifted to Karachi from the Rahim Yar Khan site in the mid 1960s.
Our history
Unilever is a business founded on a sense of purpose, and our unique heritage still shapes the way we do
business today.

2. Making sustainable living commonplace
Unilever Archives

3. The Unilever archives are amongst the most important collections of business records in the world.
UNILEVER ARCHIVES
In the 1890s, William Hesketh Lever, founder of Lever Brothers, wrote down his ideas for Sunlight Soap – his
revolutionary new product that helped popularise cleanliness and hygiene in Victorian England.
It was “to make cleanliness commonplace; to lessen work for women; to foster health and contribute to personal
attractiveness, that life may be more enjoyable and rewarding for the people who use our products”.
That sense of purpose and mission has always been part of Unilever’s culture. In the 21st century, we’re still
helping people to look good, feel good and get more out of life – and our purpose as a business is ‘making
sustainable living commonplace’.
Follow our timeline to find out more about our history.
Unilever timeline
 1885 - 1899: Product innovation, 19th-century style
 1900 - 1909: New focus on raw materials
 1910 - 1919: A decade of change
 1920 - 1929: Unilever is formed
 1930 - 1939: Overcoming challenges
 1940 - 1949: Focusing on local needs
 1950 - 1959: The post-war consumer boom
 1960 - 1969: A time for growth
 1970 - 1979: Diversifying in a tough climate
 1980 - 1989: Focusing on the core
 1990 - 1999: Restructuring and consolidating
 2000 - 2009: Forging new paths
 2010 - present: Sustainable living
2010 - Present:Sustainable living
Recognising that we are at a turning point in history, we develop our strategy of decoupling growth from our
environmental impact, while increasing Unilever's positive social impact.

4. Making sustainable living commonplace
In the face of climate change, instability and threats to the progress made in raising living standards during the
20th century, Unilever launches the Unilever Sustainable Living Plan, our blueprint for a sustainable business
model.
The Unilever Sustainable Living Plan sets out hundreds of targets and commitments which fall under three key
goals:
 We will help more than a billion people improve their health and well-being
 We will halve the environmental impact of the making and use of our products
 We will enhance the livelihoods of thousands of people in our supply chain.
After its 2010 launch, the Unilever Sustainable Living Plan is recognised by independent commentators as one
of the most ambitious sustainability plans ever created by an international corporation – and it continues to
evolve, driving growth in our business while harnessing our reach and expertise to create change in the world.
By 2014, our ‘sustainable living brands’ – brands which have a sustainable purpose and contribute to one or
more of our Unilever Sustainable Living Plan goals – are growing at twice the rate of the rest of the business
and making a major contribution to overall growth.
Beyond our business
The role that business can play in creating a safer, fairer future remains at the top of the global agenda,
highlighted by events such as the 2015 Paris Climate Conference and the launch of the UN’s global goals.
Unilever identifies three areas where we can help deliver real systems change by working in partnership with
others in business, civil society, government and NGOs: climate change and deforestation; water, sanitation and
hygiene; and sustainable agriculture and food security.
Highlights
2010
Unilever is named sustainability leader in the Food & Beverage ‘super sector’ of the Dow Jones Sustainability
Indices, for the 12th consecutive year.
Alberto Culver shareholders vote in favour of our acquisition of the company, bringing brands including
TRESemmé, Alberto VO5, Nexxus, St Ives and Simple into the Unilever portfolio.

5. 2011
Our CEO, Paul Polman, pledges Unilever’s backing for an industry-wide move towards supporting sustainable
agriculture at the World Economic Forum in Davos.
2012
Unilever's turnover exceeds €50 billion, with all regions and categories contributing to growth. We now have 14
brands each with sales of more than €1 billion a year.
We continue to make good progress towards meeting the Unilever Sustainable Living Plan targets. More than a
third of agricultural raw materials are sourced sustainably and more than 50% of factories achieve the goal of
sending no waste to landfill. We reach 224 million people through programmes to reduce diarrhoeal disease by
handwashing with soap, provide safe drinking water, promote oral health and improve young people’s self-
esteem.
2013
Unilever is named as a winner of the prestigious 2013 Catalyst Award for our initiatives that expand
opportunities for women and business. The company re-enters the Myanmar market with the launch of full
business operations including a new manufacturing facility and new headquarters in Yangon.
Unilever scoops 44 awards at the 60th Cannes Lions International Festival of Creativity.
2014
We launch the Unilever Sustainable Living Young Entrepreneur Awards, an international awards programme
designed to inspire young people around the world to tackle environmental, social and health issues.
Despite a difficult economic environment, Unilever achieves a fifth successive year of top- and bottom-line
growth. We continue to reshape our portfolio, making a number of strategic acquisitions over the year including
the Talenti super-premium ice cream business in North America and the Qinyuan water purification business in
China.
Unilever is named leader of the Food, Beverage and Tobacco industry group in the 2014 Dow Jones
Sustainability Indices (DJSI) review.
2015
Unilever continues to show consistent profitable growth in volatile markets while strengthening the
sustainability of our portfolio.
For the 15th time in 16 years, Unilever was named leader of the Food, Beverage & Tobacco Industry Group
with a score of 92 out of 100. We were also selected as an index component of the Dow Jones Sustainability
Indices (DJSI) following our participation in the 2015 RobecoSAM Corporate Sustainability Assessment.
In January, we announce that we have achieved our target of sending zero non-hazardous waste to landfill from
our entire network of factories, while in June we achieve a saving of 1 million tonnes of CO2 emissions since
2008.
‘Sustainable living brands’ now represent half of our growth and are growing twice as fast as our other brands.
A growing number of our leading brands have integrated sustainability into the contribution they make to the
world – their purpose – and into their products’ ingredients and life-cycle.

6. We contribute to the launch of the UN’s Sustainable Development Goals (SDGs) and join global calls for action
at the 2015 Paris Climate Conference (COP21). We announce that Unilever will be ‘carbon positive’ by 2030.
Unilever’s Vision Statement & Mission Statement (An Analysis)
UPDATED NOV 23, 2016 JUSTIN YOUNG
A Unilever building in Englewood
Cliffs, New Jersey in 2010. Unilever’s vision statement and mission statement guide business growth in the
consumer goods industry, although some changes can enhance these corporate statements. (Photo: Public
Domain)
Unilever’s mission statement and vision statement are a basic foundation for the success of the company’s
consumer goods business. The corporate mission statement indicates the strategic approaches of the company.
In Unilever’s case, the mission statement determines how the business addresses the needs of its target
consumers. On the other hand, the corporate vision statement provides the development direction of the
organization. Unilever’s vision statement broadly presents what the company needs to do to succeed in the long
term. Considering the company’s position as one of the biggest consumer goods firms in the world, Unilever’s
mission statement and vision statement remain relevant and appropriate to global market conditions.
Unilever’s vision statement reflects how the company grows and maintains its success in the consumer goods
market. The mission statement shows the value of Unilever’s products and how these products benefit
customers.
Unilever’s Vision Statement
Unilever’s corporate vision is “to make sustainable living commonplace. We believe this is the best long-term
way for our business to grow.” This vision statement puts emphasis on sustainability, especially among
consumers. The following components are notable in Unilever’s vision statement:
1. Commonplace sustainable living
2. Best long-term way
3. Business growth
Commonplace sustainable living is a core component in Unilever’s corporate vision statement. This component
shows the company’s efforts in changing its products to suit current market conditions. For example, through
sustainable design for home care and personal care products, Unilever helps consumers reach their goals to

7. integrate sustainability in their lives. The corporate vision also states that commonplace sustainability is the best
long-term way for the business. Unilever understands the importance of sustainability and other market trends
shaping the industry. Moreover, the vision statement reflects the company’s view of sustainability as a way to
maintain business growth. This vision statement aligns with Unilever’s corporate social responsibility
strategy to address business stakeholders in the consumer goods industry.
Unilever’s Mission Statement
Unilever’s corporate mission is “to add vitality to life. We meet everyday needs for nutrition, hygiene and
personal care with brands that help people feel good, look good and get more out of life.” This mission
statement underscores how the company satisfies customers in various aspects of their lives. The following are
the significant components in Unilever’s mission statement:
1. Adding vitality to life
2. Meeting everyday needs for nutrition, hygiene, and personal care
3. Helping people feel good, look good, and get more out of life
Adding vitality to life is a general indicator of business strategy in Unilever’s corporate mission statement. Such
vitality is the value that consumers can expect from the company’s products. The corporate mission also
specifies the aspects of life where such vitality is added. For example, Unilever’s food products address
consumers’ vitality needs in terms of nutrition. Furthermore, through these products, the company attracts
customers who want to feel good, look good, and get more out of life. The mission statement’s specification of
the types of products provides a foundation for the product mix in Unilever’s marketing mix.
Unilever’s Corporate Vision & Mission – Analysis & Recommendations
Unilever’s vision statement implies the desired condition of being a leader in bringing sustainable living to
customers through consumer goods. However, the statement does not specify the desired condition of the
company as a business organization. A sound corporate vision statement contains details on the desired future
situation of the organization. For example, it is necessary to specify the company’s market position in the
future, to guide organizational development. Thus, a recommendation for Unilever’s vision statement is to
improve it by including additional information about market position or a leadership role in the consumer goods
industry.
Unilever’s mission statement includes detailed information of what the business does and must do. For
example, the company adds vitality to life through products that address consumers’ needs in nutrition, hygiene,
and personal care. In this regard, the corporate mission statement satisfies standards that require specificity on
general strategic approaches. However, a recommendation is to enhance Unilever’s mission statement by
adding more information on how the company strategically achieves its aims in adding vitality to consumers’
lives.
Our brands
We make some of the best known brands in the world, and those brands are used by 2.5 billion people every
day
Use this page to browse the list of all Unilever's brands, see what brands are available in your country and link
to more information about any of our brands on a local Unilever website.
Unilever PK - Engro Foods - Analytical Comparison

8.  Published on December 17, 2014
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Mohammad Sadiq
FollowMohammad Sadiq
International Marketing Manager
Unilever Pakistan versus Engro Food
SWOT Analytical Comparison
Prepared by:
Mohammad Sadiq
Post Graduate MBA-HR (MAJU-ISB).
1. Introduction: 4
2. Food Processing Sector in Pakistan: 4
3.1 Background of Unilever Pakistan Ltd: 5
3.2 SWOT Analysis for UPL: 6
3.2.1 Strengths 6

9. 3.2.2 Weaknesses 6
3.2.3 Opportunities 7
3.2.4 Threats 7
4.1 Background of Engro Foods Ltd: 8
4.2 SWOT Analysis for Engro Foods: 9
4.2.1 Strengths 9
4.2.2 Weaknesses 9
4.2.3 Opportunities 10
4.2.4 Threats 10
1. Conclusion: 11
2. References: 12
1. Introduction:
Pakistan is such a confronting country, as no one can imagine, as diligent as its people are. This identical apply
for Pakistan’s economy, from large MNEs to SMEs till even spot shops, all are struggling a lot and aiming high.
In spite of all political, social, technical, and environmental factors that are affecting the economy badly,
Pakistan is the 26th world largest PPP and the 44th in terms of nominal GDP for the year 2013 globally.
However, Pakistan is the 140th in GDP per capita ($3149), but is still one of potential Next Eleven economies.
(1)
The main industries of Pakistan include: textiles, agriculture, fertilizer, cement, rugs, chemicals, dairy and food
processing. The industrial sector presents about 24% of the GDP. (2)
2. Food Processing Sector in Pakistan:

10. Pakistan with over 185 million of population represents a huge market for Fast Moving Consumer Goods
(FMCG) and processed food. In terms of consuming demand, it is the world’s 6th largest market by its
consumer size.
The wide middle class and the upper class are the key driver of this demand. Increasingly, because of the
Demographic Shift from rural areas to the urban cities, the demand is noticeably raising. Market stud ies
indicated lifting of consumer spending by about 26% for the past three years. (2)
Food industry alone holds up to 17% of the GDP. The major players are mixture of local and foreign enterprises
such as: National Foods, Shan Foods, Engro Foods, Unilever, Nestle, and many undersized food businesses.
In this regard, I will compare analytically between Unilever Pakistan Limited and Engro Foods in this report.
3.1 Background of Unilever Pakistan Ltd:
Unilever is Anglo-Dutch Multinational Corporation formed back in 1929. Today, it has about 400 brands and its
products available in 190 countries around the world with many divisions.
Unilever Pakistan was established in 1958 where the first manufacturing facility, a vegetable oil factory,
developed in the town of Rahim Yar Khan. Head Office of UPL was shifted to Karachi in the mid 1960s. (3)
Unilever Pakistan now is a leading firm in industrial financial growth with four operating factories at different
locations in the country.
Vision:
“We help people around the world meet everyday needs for nutrition, hygiene and wellbeing, with
brands that help people look good, feel good and get more out of life.”
UPL food and beverages products:
-Walls Ice Cream (Magnam Classic, Peddle Pop, Cornetto, Fruttare, Dessert).
-Brooke Bond (Supreme, A1 Karak, Pearl Dust).

11. -Lipton
-Blue Band
-Rafhan
-Knorr
3.2 SWOT Analysis for UPL:
Now I am to examine the internal Strengths and Weaknesses, and the external Opportunities and Threats of
UPL.
MARKET SEGMENTATION
INTRODUCTION: –
The market for any product is normally made up of several segments. A ‘market’ after all is the aggregate of
consumers of a given product. And, consumer (the end user), who makes a market, are of varying
characteristics and buying behavior. There are different factors contributing for varying mind set of
consumers. It is thus natural that many differing segments occur within a market.
In order to capture this heterogeneous market for any product, marketers usually divide or disintegrate the
market into a number of sub-markets/segments and the process is known as market segmentation.
Thus we can say that market segmentation is the segmentation of markets into homogenous groups of
customers, each of them reacting differently to promotion, communication, pricing and other variables of the
marketing mix. Market segments should be formed in that way that difference between buyers within each
segment is as small as possible. Thus, every segment can be addressed with an individually targeted
marketing mix.
The importance of market segmentation results from the fact that the buyers of a product or a service are no
homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since
it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers
to market segments by variables they have in common. These common characteristics allow developing a
standardized marketing mix for all customers in this segment.
Through segmentation, the marketer can look at the differences among the customer groups and decide on
appropriate strategies/offers for each group. This is precisely why some marketing gurus/experts have
described segmentation as a strategy of dividing the markets for conquering them.
MARKETING STRATEGY AND MARKET SEGMENTATION: –
When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place,
Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical
Evidence).

12. Market segmentation and the identification of target markets, however, are an important element of each
marketing strategy. They are the basis for determining any particular marketing mix. Basic steps in
marketing strategy are as follows:-
ATTRIBUTES OF EFFECTIVE SEGMENTATION
Market segmentation is resorted to for achieving certain practical purpose. For example, it has to be useful in
developing and implementing effective and practical marketing programmes. For this to happen, the
segments arrived at must meet certain criteria such:-
1. Identifiable: The differentiating attributes of the segments must be measurable so that they can be
identified.
2. Accessible: The segments must be reachable through communication and distribution channels.
3. Sizeable: The segments should be sufficiently large to justify the resources required to target them. A
very small segment may not serve commercial exploitation.
Profitable: – There is no use in locating segments that are sizeable but not profitable.

13. Unique needs: To justify separate offerings, the segments must respond differently to the different
marketing mixes.
Durable: The segments should be relatively stable to minimize the cost of frequent changes.
Measurable: The potential of the segments as well as the effect of a specific marketing mix on them should
be measurable.
Compatible: – Segments must be compatible with firm’s resources and capabilities.
REASONS FOR MARKET SEGMENTATION
Segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of
market segments enables decisions about intensity of marketing activities in particular segments.
A segment-orientated marketing approach generally offers a range of advantages for both, businesses and
customers.
1. Facilitates proper choice of target marketing:–
Segmentation helps the marketers to distinguish one customer group from another within a given market and
thereby enables him to decide which segment should form his target market.
2. Higher Profits: –
It is often difficult to increase prices for the whole market. Nevertheless, it is possible to develop premium
segments in which customers accept a higher price level. Such segments could be distinguished from the
mass market by features like additional services, exclusive points of sale, product variations and the like. A
typical segment-based price variation is by region. The generally higher price level in big cities is evidence
for this. When differentiating prices by segments, organizations have to take care that there is no chance for
cannibalization between high-priced products with high margins and budget offers in different segments.
This risk is the higher, the less distinguished the segments are.
3. Facilitates tapping of the market, adapting the offer to the target:-Segmentation also enables the
marketer to crystallize the needs of target buyers. It also helps him to generate an accurate prediction of the
likely responses from each segment of the target buyer. Moreover, when buyers are handled after careful
segmentation, the responses for each segment will be homogeneous. This in turn, will help the marketer
develop marketing offer/programmers that most suited to each groups. He can achieve specialization that is
required in product, distribution, promotion and pricing for matching the particular customer group and
develop offers and appeals for the segmented group.
Example of Ford: – Ford has gained useful insights through segmentation and adapted its offer to suit the
Indian target market. For the Indian segment Ford made some changes in its cars in comparison to their
European version. Modifications such as: –
a. Higher ground clearance to make the car compatible to the rougher road surface in India.
b. Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian roads.
c. Changes in cooling requirement, with greater airflow to the rear.
d. Higher resistance to dust.
e. Compatibility of engine with the quality of fuel available in India.

14. f. Location of horn buttons on the steering wheel. As Indian motorists use horn far more frequently than the
European where the horns are located on the lever.
4. Stimulating Innovation: –
An undifferentiated marketing strategy that targets at all customers in the total market necessarily reduces
customers’ preferences to the smallest common basis. Segmentations provide information about smaller
units in the total market that share particular needs. Only the identification of these needs enables a planned
development of new or improved products that better meet the wishes of these customer groups. If a product
meets and exceeds a customer’s expectations by adding superior value, the customers normally is willing to
pay a higher price for that product. Thus, profit margins and profitability of the innovating organizations
increase.
5. Makes the marketing effort more efficient and economic: – Segmentation ensures that the
marketing effort is concentrated on well defined and carefully chosen segments. After all, the resources of
any firm are limited and no firm can normally afford to attack and tap the entire market without any
delimitation whatsoever. It would benefit the firm if the efforts were concentrated on segments that are more
profitable and productive ones.
Segmentation also helps the marketer assess as to what extend existing offer from competitors match the
needs of different customer segments. The marketer can thus identify the relatively less satisfied segments
and succeed by concentrating on them and satisfying their needs.
6. Benefits the customer as well: –
Segmentation brings benefits not only to the marketer, but to the customer as well. When segmentation
attains higher levels of sophistication and perfection, customers and companies can conveniently settle down
with each other, as at such a stage, they can safely rely on each other’s discrimination. The firm can
anticipate the wants of the customers and the customers can anticipate the capabilities of the firm.
7. Sustainable customer relationships in all phases of custome r life cycle: – Customers change their
preferences and patterns of behavior over time. Organizations that serve different segments along a
customer’s life cycle can guide their customers from stage to stage by always offering them a special
solution for their particular needs. For example, many car manufacturers offer a product range that caters for
the needs of all phases of a customer life cycle: first car for early teens, fun-car for young professionals,
family car for young families, etc. Skin care cosmetics brands often offer special series for babies, teens,
normal skin, and elder skin.
8. Targeted communication: –
It is necessary to communicate in a segment-specific way even if product features and brand identity are
identical in all market segments. Such a targeted communications allows to stress those criteria that are most
relevant for each particular segment (e.g. price vs. reliability vs. prestige).
9. Higher market Shares: –
In contrast to an undifferentiated marketing strategy, segmentation supports the development of niche
strategies. Thus marketing activities can be targeted at highly attractive market segments in the beginning.
Market leadership in selected segments improves the competitive position of the whole organization in its

15. relationship with suppliers, channel partners and customers. It strengthens the brand and ensures
profitability. On that basis, organizations have better chances to increase their market shares in the overall
market.
 BASES FOR SEGMENTATION
Markets can be segmented using several relevant bases. There are huge number of variables which leads to
market segmentation. They comprise easy to determine demographic factors as well as variables on user
behavior or customer preferences. Segmentation is done for consumer market and industrial market.
 Bases for segmentation in consumer market:-
Consumer market can be segmented on the following customer characteristics
1. Geographic Segmentation.
2. Demographic Segmentation.
3. Psychographic Segmentation.
4. Behaviouralistic Segmentation.
1) Geographic Segmentation: – Potential customers are in a local, state, regional or national marketplace
segment. If a firm selling a product such as farm equipment, geographic location will remain a major factor
in segmenting your target markets since their customers are located in particular rural areas. While for retail
store, geographic location of the store is one of the most important considerations, in this case city areas are
preferred. Segmentation of customers based on geographic factors are:-
a. Region: – Segmentation by continent / country / state / district / city.
b. Size: – Segmentation on the basis of size of a metropolitan area as per its population size.
c. Population density: – Segmentation on the basis of population density such as urban / sub-urban /
rural etc.
d. Climate: – Segmentation as per climatic condition or weather.
2) Demographic Segmentation: – Segmentation of customers based on demographic factors are:-
a. Age (dominant factor):-Segmentation is done on the basis of age of person. Example Titan has
segmented its product according to different age group of person.
Titan’s product segmentation on the bases of age:-
Titan created a sub brand, Fastrack. These watches are specifically for young, vibrant, and cool outgoing
young generation. While for older person and professional it has created the steel series watches and also the
famous, Sonata.
Titan Fastrack( for the younger segment)

16. Steel-1077SM01(for elder person and professional)
a. Income (dominant factor):-Segmentation is done on the basis of income level of a person.
Example of Titan watches can be citied such as Titan offered Aurum and Royale in the gold/jewellery watch
range with price ranges between Rs. 20000 to Rs.1 lakh.
Titan Nebula (Luxury segment watch)
For middle segment, Titan offered Exacta range in stainless steel, aimed at withstanding the rigours of daily
life. There were 100 models in the range. Price ranges within Rs500-700.
For the third segment, Titan offered the Sonata range. The price range was between Rs.350 to 500.
Titan Sonata (Watch for the third segment)
b. Purchasing power (dominant factor):- Segmentation done on the basis of purchasing power of the
customer. Examples of different car segment based on purchasing power are :-
Budget car segment–
It is the largest segment in Indian market. Here the entry level starts from Rs 1.5 to 3 lakh. Maruti
800 and Omni are the dominant players in these segments. With the launch of Tata Nano with a price range
of 1lakh the outlook of this segment has changed. This segment is sometimes referred to as the small car
segment. Competition in this segment is extreme in Indian market.

17. Maruti 800 (Budget Car Segment)
Compact car segment–
It lies between budget car and family car. Preferred price range is between Rs 3 to 4.5 lakh. Maruti Zen,
Fiat Uno, Tata Indica, Santro, Matiz is some of the dominant players in this segment.
Maruti Zen (Compact car segment)
Daewoo Matiz (Compact car segment)
Cars of compact segment
Family car segment–

18. The purchasing capacity of buyers of this segment is somewhat higher than that of the budget and compact
car segment. Price ranges between Rs 4.5 to 6 lakhs. Maruti Esteem, Daewoo Cielo, and
HM Contessa belongs to this segment. In India cars that are sold in India as ‘Budget Car’ and ‘Compact
Car’ do not meet their purpose, especially in term of space, that they turn to ‘the family car segment’.
Daewoo Cielo (Family Car segment)
Premium car segment–
This segment represents the buyer who require true world class luxury car. Price ranges between Rs 6 to 8
lakh. Ford Escort, Honda City, Honda City, Mitsubishi Lancer, Audi 1800, Opel Astra etc are some of the
major cars in this segment.
Opel Astra (Premium car segment)
Super luxury saloon segment-
Buyer in this segment looks for a real super premium segment car. Mercedes Benz E229, E-250, Rover
Montego, Audi 6, BMW are the players in this segment. Obviously, this is a tiny segment in the Indian
context.

19. Audi 6 (Super Luxury saloon)
a. Occupation.
b. Gender (dominant factor):-Product can be segmented for male and female.
c. Family Size.
d. Family life cycle.
e. Nationality.
f. Religion.
g. Education:-Primary, High School, Secondary, College, Universities.
Many of these variables have standard categories for their values. For example family lifecycle often is
expressed as bachelor, married with no children, full-nest, and empty-nest or solitary survivor.
1) Psychographic Segmentation: – Psychographic Segmentation groups customers according to their life-
style and buying psychology. Many businesses offer products based on the attitudes, beliefs and emotions of
their target market. The desire for status, enhanced appearance and more money are examples of
psychographic variables. They are the factors that influence your customers’ purchasing decision. A seller of
luxury items would appeal to an individual’s desire for status symbols Psychographic Segmentation includes
variables such as:-
a. Activities.
b. Interests.
c. Opinions.
d. Attitudes.
e. Values.
Activities, Interests, and Opinions (AIO) surveys are one tool of measuring lifestyle.
2) Behaviouralistic Segmentation: – Markets can be segmented on the basis of buyer behaviour as well.
Since all Segmentation is in a way related to buyer behavior, one might be tempted to ask why buyer

20. behavior-based segmentation should be a separate method. It is because there is some distinction between
buyer’s characteristics that are reflected by their geographic, demographic and psychographic profiles, and
their buying behaviour. Marketers often find practical benefit in using buying behaviour as a separate
segmentation base in addition to bases like geographic, demographics, and psychographics.
The primary idea in buyer behaviour segmentation is that different customer groups expect different benefits
from the same product and accordingly, they will be different in their motives in owing it and their behavior
in buying it. Variables of buyer behavior are:-
a. Benefit sought: – Quality / economy / service / look etc of the product.
b. Usage rate: – Heavy user / moderate user / light user of a product.
c. User status: – Regular / potential / first time user / irregular /occasional.
d. Brand Loyalty: – Hard core loyal / split loyal / shifting / switches.
e. Readiness to buy.
f. Occasion: – Holidays and occasion stimulate customer to purchase products.
g. Attitude toward offering: – Enthusiastic / positive attitude / negative attitude / indifferent / hostile.
Bases for segmentation in industrial market- In contrast to consumers, industrial customers tend to be
fewer in number and purchase larger quantities. They evaluate offerings in more detail, and the decision
process usually involves more than one person. These characteristics apply to organizations such as
manufacturers and service providers, as well as resellers, governments, and institutions.
Many of the consumer market segmentation variables can be applied to industrial markets. Industrial markets
might be segmented on characteristics such as:
1. Location.
2. Company type.
3. Behavioral characteristics.
1) Location
In industrial markets, customer location may be important in some cases. Shipping costs may be a purchase
factor for vendor selection for products having a high bulk to value ratio, so distance from the vendor may be
critical. In some industries firms tend to cluster together geographically and therefore may have similar
needs within a region.
2) Company Type: Business customers can be classified according to type as follows :
a. Company size:-Whether the company is a large scale industry / a small scale industry. Large industry
always tries to order in bulk commodities while opposite for small scale sector.
b. Industry: – Whether the industry is manufacturing industry / service industry. Also sometime
differentiation is done between public sector industry or a private sector industry.
c. Decision making unit.
d. Purchase Criteria.
3) Behavioral Characteristics
In industrial markets, patterns of purchase behavior can be a basis for segmentation. Such behavioral
characteristics may include:
 Usage rate

21.  Buying status: potential, first-time, regular, etc.
 Purchase procedure: sealedbids, negotiations, etc.
 Multi-level Segmentation: A Market can be segmented, using several bases in succession- While
discussing about bases of segmentation we must discuss about multi-level segmentation, as it is not as
through segmentation bases discussed above are mutually exclusive and a market can be segmented only
with one particular base, on either / or basis. Since customer characteristic are spread over seve ral
variables, any market can be segmented through several bases. Different bases can be used in
combination in segmenting a given market. They just have to be relevant for the concerned market.
Actually, the different bases can be used in succession in a suitable order, and the market can be
segmented at multi-levels.
For example, a market can be segmented using the demographic base in the first instance, followed by the
psychographic base and the buyer behavior/benefit base. Or, the market can be segmented using volume as
the base in the first instance, followed by the demographic/psychographic/buyer behavior/benefit base.
Assuming for example, that the firm first carries out volume segmentation of its market, it can know who the
heavy user of its product are, but it cannot know the purpose for which they buy the product. The firm can
then pick up the heavy users and carry out a multi-level segmentation, and continue its probe more deeply.
Since each of these bases has several sub-bases, the numbers of levels in which a market can be segmented
are indeed numerous. Actually, the aim should always be to go as deep as possible in segmenting the market
so that segments that are most attractive and most suited can be chosen.
Multi-level segmentation enables better selection of target market and better choice of marketing
mix:
Multi-level segmentation enables the marketers to choose his target market better. It also helps him to make
the winning strategy and strike the right product offer and the right marketing mix. With the information
generated from multi-level segmentation, he can obtain a deeper understanding of the customers in each
segment, their needs, buying motives and buying behaviour. He can understand in what way each of the
different segments want the product to be, he can then tailor his product, marketing offer and promotional
appeal, to fit the individual segment; he can select the priced, distribution method/channels, media vehicles,
advertising massages and sales appeal, which will be appropriate.
Example of General Motors:-
GM has identified about 40 different ‘customer needs’ and correspondingly, 40 different market segments in
which it would present with its vehicles. For example, it has targeted the Pontiac at active, sports-oriented,
young couples, the Chevrolet at price-conscious young families, the Oldsmobile at affluent families, and the
Buick at older, more conservative couples.
APPROACHES IN SEGMENTATION
George Day (1980) describes models of segmentation as the top-down approach: In this approach “firms
starts with the total population and divide it into segments”. He also identified an alternative model which
he called the bottom-up approach. In this approach,” firms starts with a single customer and build on that
profile”. This typically requires the use of customer relationship management software or a database of some
kind. Profiles of existing customers are created and analysed. Various demographic, behavioural,
and psychographic patterns are built up using techniques such as cluster analysis. This process is

22. sometimes called database marketing or micro-marketing. Its use is most appropriate in highly fragmented
markets. McKenna (1988) claims that this approach treats every customer as a “micro majority”. Pine (1993)
used the bottom-up approach in what he called “segment of one marketing”. Through this process mass
customization is possible.
ADVANTAGES OF MARKET SEGMENTATION
Various advantages of market segmentation are:-
1. Helps distinguish one customer group from another within a given market.
2. Facilitates proper choice of target market.
3. Facilitates effective tapping of the market.
4. Helps divide the markets and conquer them.
5. Helps crystallize the needs of the target buyers and elicit more predictable responses from them ; helps
develop marketing programmes on a more predictable base; helps develop market offer that are most suited
to each group.
6. Helps achieve the specialization required in product; distribution, promotion, and pricing for matching
the customer group and develop marketing offers and appeal that match the need of each group.
7. Makes the marketing effort more efficient and economic.
8. Helps concentrate efforts on the most productive and profitable segment, instead of frittering them over
irrelevant, or unproductive, or unprofitable segment
9. Helps spot the less satisfied segments and succeed by satisfying such segments.
10. Brings benefits not only to the marketer but also to the customer as well.
11. When segmentation attains high sophistication, customers and companies can choose each other and
stay together.
EVALUATION OF THE SEGMENTS
Whether market segmentation is successful or not can be evaluated by the following questions-
1. Is it sizeable: –
Size-wise, the popular segment is a bigger compared to the premium segment. In term of tonnage, of the
total market of around 6, 00,000 tonnes, the popular segment account for 80 percent and the premium
segment for the remaining 20 percent. If the firm wants a very large volume, it has to think of the popular
segment. At the same time, it has to note that the premium segment too is sizeable, as it account for over
120,000 tonnes. In term of value, the premium segment is even more sizeable, formerly nearly 30 percent of
the total market. Clearly, the segment cannot be ruled out as lacking in size.
2. Is it growing: –
Growth rate and likely future position of the segment will be the next consideration in the evaluation
process. Usually, business firms seek out the high growth segments. Analysis will readily indicate to the firm
that in bath soaps, the premium segment happens to be the high growth segment. Whereas the popular
segment has been growing at 10 percent per annum, the premium segment has been growing at over 20
percent annum. When this fact is taken into consideration, the firm’s choice may tilt toward the premium

23. segment. The tilt will be particularly pronounced if the firm’s natural disposition is to strive for a position in
the high growth segment of the business.
3. Is it profitable: –
Next consideration will be the extend of profitability. In the present example, the firms quickly sense that the
premium segment is more profitable one. Even a relatively lower volume in the segment may bring in good
returns. On the contrary, in the popular segment, a much larger volume will be necessary for the business to
be viable, since prices and margins in the segment are low.
Another point is that costs of marketing, distribution and promotion in the business are quite high and are
constantly on the rise. Costs of launching a new brand are particularly high. The market is very competitive,
aggressive promotional support through expensive media like TV becomes essential. In this background, the
firm may come to the conclusion that it may be worthwhile to gamble in the premium segment rather than
the popular segment.
4. Is it accessible: –
The firm has to now consider whether the segments are accessible to it. This may need further analysis. The
market realities will have to be taken into consideration. The popular segment will be accessible only to the
firm with a cost advantage, since price is a major determinant in this segment. Premium segment will be
accessible only to firms, which enjoy a differentiation advantage, and which are also marketing savvy. Liril
of Hindustan Lever has a commanding position in this segment. At the upper end of the segment, HLL’s
Pears and Dove are well entrenched. Several other brands of different companies are competing in the
segment. The firm has to take due note of this reality. At the same time, analysis also reveals that new brands
do keep entering the segment every now and then, and some of them do manage to stay. So, the firm has no
reason to believe that the premium segment is not accessible to it, unless it is convinced that it is very weak
in marketing.
5. Is it compatible with the firm’s resources and capabilities: – Having reached the conclusion that the
premium segment is sizeable, growth oriented, profitable and accessible, the firm has to now find out if the
segment matches its resources. For some firms, the popular segment may be the natural choice and for
others, the premium segment. And, for some other choosing both. The premium segment is a highly
competitive segment. Only firms endowed with strong resources and an aggressive marketing
strategy/culture can fight and survive in the market. The firm therefore has to assess whether the particular
segments are compatible with its resources and capabilities.Thus by this following analysis a firm can easily
evaluate it market segmentations and also can tackle its problem.
MARKET TARGETING
INTRODUCTION: – There was a time when finding the best customers was like throwing darts in the
dark. Target marketing changed all that…Today’s savvy marketers know that finding their best prospects
and customers hinges on well thought out targeted marketing strategies.
Defining a target market requires market segmentation, the process of pulling apart the entire market as a
whole and separating it into manageable, disparate units based on demographics.

24. Target market is a business term meaning the market segment to which a particular good or service is
marketed. It is mainly defined by age, gender, geography, socio-economic grouping, or any other
combination of demographics. It is generally studied and mapped by an organization through lists and
reports containing demographic information that may have an effect on the marketing of key products or
services.
Target Marketing involves breaking a market into segments and then concentrating your marketing efforts
on one or a few key segments. Target marketing can be the key to a small business’s success.
The beauty of target marketing is that it makes the promotion, pricing and distribution of your products
and/or services easier and more cost-effective. Target marketing provides a focus to all of your marketing
activities.
Market targeting simply means choosing one’s target market. It needs to be clarified at the onset that
marketing targeting is not synonymous with market segmentation. Segmentation is actually the prelude to
target market selection. One has to carry out several tasks beside segmentation before choosing the target
market.
Through segmentation, a firm divides the market into many segments. But all these segments need not form
its target market. Target market signifies only those segments that it wants to adopt as its market. A selection
is thus involved in it.
In choosing target market, a firm basically carries out an evaluation of the various segments and selects those
segments that are most appropriate to it. As we know that the segments must be relevant, accessible, sizable
and profitable. The evaluation of the different segments has to be actually based on these criteria and only on
the basis of such an evaluation should the target segments be selected.
PROCESS OF CHOOSING THE TARGET MARKET
The process of choosing the target Market are:-
 Choosing the target market is related to, but not synonymous with, market segmentation.
 Segmentation is the means or the tool; choosing the target market is the purpose.
 Segmentation can also be viewed as the prelude to target market selection.
 hoosing the target market usually follows multi-level segmentation using different bases.
 Choosing the target market involves several other tasks in addition to segmentation.
 Looking at each segment as a distinct marketing opportunity.
 Evaluating the worth of each segment (sales/profit potential).
 Evaluating whether the segment is:
o Distinguishable.
o Measurable.
o Sizable.
o Accessible.
o Growing.
o Profitable.
o Compatible with the firm’s resources.
o Examining whether it is better to choose the whole market, or the only a few segment, and
deciding which ones should be chosen.
o Looking for segments, which are relatively less satisfied by the current offers in the market from
competing brands.

25. o Checking out if the firm has the differential advantage / distinctive capability for serving the
selected segments.
o Evaluating the firm’s resources and checking whether it is possible to put in the marketing
programmes required for capturing the spotted segments with those resources.
o Finally selecting those segments that are most appropriate for the firm.
FACTORS TO BE CONSIDERED WHILE TARGET MARKET SELECTION
Target marketing tailors a marketing mix for one or more segments identified by market segmentation.
Target marketing contrasts with mass marketing, which offers a single product to the entire market.
Two important factors to consider when selecting a target market segment are the attractiveness of the
segment and the fit between the segment and the firm’s objectives, resources, and capabilities.
Attractiveness of a Market Segment
The following are some examples of aspects that should be considered when evaluating the attractiveness of
a market segment:
 Size of the segment (number of customers and/or number of units).
 Growth rate of the segment.
 Competition in the segment.
 Brand loyalty of existing customers in the segment.
 Attainable market share given promotional budget and competitors’ expenditures.
 Required market share to break even.
 Sales potential for the firm in the segment.
 Expected profit margins in the segment.
Market research and analysis is instrumental in obtaining this information. For example, buyer intentions,
sales force estimates, test marketing, and statistical demand analysis are useful for determining sales
potential. The impact of applicable micro-environmental and macro-environmental variables on the market
segment should be considered.
Note that larger segments are not necessarily the most profitable to target since they likely will have more
competition. It may be more profitable to serve one or more smaller segments that have little competition.
On the other hand, if the firm can develop a competitive advantage, for example, via patent protection, it
may find it profitable to pursue a larger market segment.
Suitability of Market Segments to the Firm
Market segments also should be evaluated according to how they fit the firm’s objectives, resources, and
capabilities. Some aspects of fit include:
 Whether the firm can offer superior value to the customers in the segment
 The impact of serving the segment on the firm’s image
 Access to distribution channels required to serve the segment
 The firm’s resources vs. capital investment required to serve the segment
The better the firm’s fit to a market segment and the more attractive the market segment, the greater the
profit potential to the firm.
TARGET MARKET STRATEGIES
There are several different target-market strategies that may be followed. Targeting strategies usually can be
categorized as one of the following:

26.  Single-segment strategy – Also known as a concentrated strategy. One market segment (not the entire
market) is served with one marketing mix. A single-segment approach often is the strategy of choice for
smaller companies with limited resources.
 Selective specialization– This is a multiple-segment strategy, also known as a differentiated strategy.
Different marketing mixes are offered to different segments. The product itself may or may not be
different – in many cases only the promotional message or distribution channels vary.
 Product specialization– The firm specializes in a particular product and tailors it to different market
segments.
 Market specialization– The firm specializes in serving a particular market segment and offers that
segment an array of different products.
 Full market coverage – The firm attempts to serve the entire market. This coverage can be achieved by
means of either a mass market strategy in which a single undifferentiated marketing mix is offered to the
entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment
The following diagrams show examples of the five market selection patterns given three market segments
S1, S2, and S3, and three products P1, P2, and P3.
A firm that is seeking to enter a market and grow should first target the most attractive segment that matches
its capabilities. Once it gains a foothold, it can expand by pursuing a product specialization strategy, tailoring
the product for different segments, or by pursuing a market
specialization strategy and offering new products to its existing market segment.
Choosing the target market is a part of marketing strategy formulation, the other two parts being positioning
and marketing mix formulation. Without right targeting, the firm cannot formulate an effective strategy. It is
through careful segmentation and targeting that firm pick up right group of consumers. Also, it is through
this process that the firm gain vital knowledge about the need and buying behaviour of the consumer in each
segment and the differences between one segment and the other. And, it is by using this knowledge that the
firm develops marketing programmes that match the specific requirement of different segments. In other
words, segmentation and targeting help the firm not only the characteristics of each of the segments but also
the ‘distinctive excellence’ that is required for catering to the specific needs of the consumers in each of
them.

27. Another strategy whose use is increasing is individual marketing, in which the marketing mix is tailored on
an individual consumer basis. While in the past impractical, individual marketing is becoming more viable
thanks to advances in technology.
 DECISIONS INVOLVED IN TARGETING STRATEGY INCLUDE:-
o which segments to targeting.
o how many products to offer.
o which products to offer in which segments.
 TARGETING STRATEGY DECISIONS ARE INFLUENCED BY:
 Market maturity.
 Diversity of buyers’ needs and preferences.
 Strength of the competition.
 The volume of sales required for profitability.
DECIDING THE SIZE OF TARGET MARKET
After selecting the target market it is important for marketers to decide the size of the target market. Is the
target market large enough to sustain a business which will provide products or services to them? A target
market has to be of at least a minimum size to be viable. Suppose a firm chooses food processing and food
packaging as its target market. In fact, they might be too large, and it might be wise to find a niche within
those target markets. Therefore, the firm must then focus on a particular type of food market, such as a food
production firm who wants to package its products for selling. Thus by targeting its product for its targeted
market, the firm can decide its size on the basis of it.
RESULTS OF WRONG TARGETING STRATEGY
Ineffective augmentation and targeting led to wrong product offers, inappropriate marketing appeals, wrong
pricing, and overemphasis on the brand name. No firm can offer single product to satisfy all the segment. For
example, in Indian market many MNCs offered single product to the entire segment. The offer did not suit
middle class as such. They suited only the premium segment. Naturally, the firms were unable to gather
worthwhile volumes. As the firm did not target those segments and as they failed to make product offers that
were appropriate for them, the end result was poor. For this reason firms like Reebok, Ray-ban, and Levi did
not showed satisfactory result for quite sometime in Indian market while they were very successful in the
western markets.
Thus the choice of target marketing for a given industry can decide the fate of the industry in the market.
This is because firms differ in their competencies, resources, objectives, and strategies.
POSITIONING
INTRODUCTION: –
Positioning is a concept in marketing which was first popularized by Al Ries and Jack Trout in their
bestseller book “Positioning – a battle for your mind”. According to them ‘Positioning is what you do to
mind of the prospect’. They iterate that any brand is valued by the perception it carries in the prospect or
customer’s mind. Each brand has thus to be ‘Positioned’ in a particular class or segment. Example: Mercedes
is positioned for luxury segment, Volvo is positioned for safety.

28. The position of a product is the sum of those attributes normally ascribed to it by the consumers – its
standing, its quality, the type of people who use it, its strengths, its weaknesses, any other unusual or
memorable characteristics it may possess, its price and the value it represents.
Although there are different definitions of Positioning, probably the most common is: “A product’s position
is how potential buyers see the product”, and is expressed relative to the position of competitors. Positioning
is a platform for the brand. It facilitates the brand to get through to the mind of the target consumer.
The position of the brand has thus to be carefully maintained and managed. Example: when Malboro cut
down its prices, its sales dropped immediately, as it began being associated with the generic segment.
Watches like Rolex are positioned as luxury segment watches, thus they being one of the most expensive
have become a symbol for accomplishment in life. If Rolex reduces its prices, it loses its perceived image
and hence is in danger of losing its customers. This differs slightly from the context in which the term was
first published in 1969 by Al Ries and Jack Trout in the paper “Positioning” is a game people play in
today’s me-too market place” in the publication
Industrial Marketing, in which the case is made that the typical consumer is overwhelmed with unwanted
advertising, and has a natural tendency to discard all information that does not immediately find a
comfortable (and empty) slot in the consumers mind. It was then expanded into their ground-breaking first
book, “Positioning: The Battle for Your Mind“, in which they define Positioning as “an organized system for
finding a window in the mind. It is based on the concept that communication can only take place at the right
time and under the right circumstances.”
POSITIONING CONCEPTS:- Generally, there are three types of positioning concepts:
 Functional positions
 Solve problems.
 Provide benefits to customers.
 Get favorable perception by investors (stock profile) and lenders.
o Symbolic positions
o Self-image enhancement.
o Ego identification.
o Belongingness and social meaningfulness.
o Affective fulfillment.
 Experiential positions
o Provide sensory stimulation.
o Provide cognitive stimulation.
APPROACHES OF POSITIONING :-
The main positioning strategy is to either developing or reinforcing a particular image for the brand in the
mind of the customer. The main approaches to positioning strategy are:-
 Customer benefits approach.
 The price-quality approach.
 The use or application approach.
 The product user approach.
 The product class approach.
 The cultural symbol approach.
 The competitor approach.

29. 1. Customer benefit approach: –
This is an important positioning strategy. It involves putting the brand above competitors, based on specific
brand attributes and customer benefit. In the automobiles sector we can see many car manufacturer give
emphasis on different technical aspects such as fuel efficiency, safety, engine performance, power windows
etc. Generally marketers identify positioning in respect of product characteristics that have been ignored by
the competitor. Often we can see that firms attempts to position their brands along with two or more
characteristic simultaneously, this is done to give an extra edge to the product from its rival and also helps
increase the
product’s life cycle. Thus a single product can solve many problem is the main theme behind the product.
Example: Procter & Gamble’s Head & shoulder shampoo functions as anti dandruff and anti hairfall
shampoo.
Head & Shoulder positioned as both anti-dandruff & anti-hairfall shampoo
2. Price quality approach: –
Sometimes brands attempts to offer more in term of service, feature, quality, or performance. Manufacturer
of such brands charge higher prices partly to cover the cost and partly to communicate the fact that they are
of high quality. In fact in the same product category there are brands, through comparable in qualities, which
appeal on the basis of price. For example brands like Rado and Timex use quality and price positioning
technique respectively. Rado competes for quality and Timex competes for price. It is difficult to use both
quality and price positioning together
because there is a risk that high quality-low price positioning technique may infer the image of the product in
the mind of the consumer.
Rado Original Chronograph
Priced at USD 6516.00

30. Timex luxury watch priced around Rs.1800
Example of price quality approach
3. The use and application approach: – In this strategy the product is positioned with a use or
application approach. For example: – Largest Mobile manufacturer in the world Nokia positioned its few
variant of N-series mobiles as music phones with enhanced memory and multimedia capabilities.
Nokia N-70 Music edition
with 1GB memory
Nokia N-73 Music edition
With 1GB memory
4. The product user approach:- In this approach, the brand identifies and determines the target segement
for which the product will be positioned. Many brand uses a model or a celebrity to position their product.
The expectation are that a model or a celebrity is likely to influence the product’s image by reflecting their
own image to it. For example:- Dabur Chyvanprash is positioned for all age groups.

31. 5. The product class approach:- This approach is use so that the brand is associated with a particular
product category. This is generally used when a category is too crowded. For example:- HLL has
positioned Dove toilet soap as a cleansing cream product for young womwn with dry skin and its is
positioned as a premium segment toilet soap.
6. The cultural symbol approach:- The positioning strategy is based on deeply entrenched cultural
symbol. The use of cultural symbol can help to differentiate the brand from competitors brands. For
example:- The positioning technique of Marlboro cigarettes use the image of typical American cowboy .
Marlboro gives its cigarette brand a American cowboy imageExample of cultural symbol approach
7. The competitor approach:- Many brands use competitor as a dominant plank in their campaign. These
brands are positioned following its competitor. This is an offensive strategy.
DIFFERENT POSITIONING PLANKS / BASES:- Different types of positioning planks /bases are used
by the marketers are:-
1. Economy:- Product positioned toward a particular segment keeping in mind it economy.Example-
Maruti 800, Tata Nano, Nirma detergent powder etc are positioned for the economy segment
2. Benefit:- Product positioned with some beneficial features. Example-Colgate total, Clinic plus etc.
3. Gender:– Product positioned for a particular segment. Example- Scooty Pep, Titan Raga.
4. Luxury and exclusiveness:- Product or services positioned toward luxury segment. Example-Taj
group of hotel, Mercedes Benz E-class etc.

32. Mercedes Car – symbol of luxury and exclusiveness
5. Fashion for elite class:- Product positioned for fashionable elite class or member of the society, who
always want to stay ahead in term of fashion and demands exclusive products only. Example Peter
England, Van Heusen, Raymond etc.
6. Technology and value added features:- Positioning of a product according to its technological
advancement and value added features. Example:- Microsoft’s positioning of its recent operating system
Windows Vista as the advanced operating system, Sony with various elecronic goods, LG etc

33. Preview of Microsoft’s window Vista operating
system
POSITIONING PLANNING
Positions are described by variables and within parameters that are important to the customers. Co mmon
examples are price, supporting services, quality, reliability, and value for money. Often, customers position a
product in relation to a brand or product that is especially visible to them. This could be the market leader or
any other offer with a high media exposure and an above average marketing budget. Therefore, it is
advisable to use in-depth market research to determine relevant parameters in order to understand how
customers rate different products and marketing variables.

34. The number of relevant parameters is normally low. Most often, they can be described with a two- or three-
dimensional matrix. This tool to visually depict customers’ perceptions of a product and its position is called
perceptual mapping.
Normally, most suppliers in a market or in a market segment will be positioned along the diagonal. This
diagonal is called the Value-Equivalence-Line (VEL), since value and price are balanced there.
In our example, product A is positioned unfavourably. It is too expensive for the mass market and its quality
is not good enough for the premium segment. In general, there are the following strategies for repositioning;
however, their feasibility will depend on the particular situation.
 Change the relation of price and quality for the existing brand; e.g. product relaunch with improved
characteristics
 Change the relation of price and quality by introducing a new brand; e.g. introduction of clone under a
‘cheap’ brand or a retailers own brand
o Alter believes about the brand; e.g. image campaign, creation of a ‘hype’
o Alter believes about competitive brands; e.g. comparing advertisements

35. o Alter customers’ rankings of important factors; e.g. focus on additional features and characteristics
(example: car manufacturers focus on very different product characteristics in their commercials,
for instance security, fuel consumption, image, luxury interior, fun)
o Introduction of new or neglected attributes; e.g. product relaunch with new features that are new for
the whole market segment.
When planning such activities it is critical to think about possible reactions of competitors. A shift of a
product into a more favourable position in the price-quality-map above the diagonal (e.g. into position B)
will normally lead to in shift of market shares in favour of this product. Competitors could react with a
reduction of general price level, thus moving the VEL to the left. Product B would lose its superior position.
Moreover, it is advisable to keep in mind that customer and their individual preferences of a price-quality-
combination are not distributed equally along the VEL. Neglecting the distribution of customers could lead
to the following problems:
 Positioning in a segment with very few potential customers (e.g. positioning in a middle-segment in a
market where customers prefer either the budget-product or the premium product)
 Positioning in a too low or too high price-value-combination (segments a and b in our example). This
product does not appeal to a large proportion of the market, since customers either expect a higher quality
(a) or are not willing to pay that high price.
STEPS FOR POSITIONING A PRODUCT
Dibb et al recommend the following steps for determining and implementing the positioning of a product.
Although they focus on new product development, these steps are applicable to a relaunch with new features
or for a repositioning of an existing product too.
1. Define the segments in a particular market.
2. Decide which segments to target.
3. Understand what the target consumers expect and believe to be the most important considerations when
deciding on the purchase.
4. Develop a product (or products) that cater specifically for these needs and expectations.
5. Evaluate the positioning and images, as perceived by the target customers, of competing products in the
selected market segments.
6. Evaluate the market leader’s position; leading brand that occupies a special position in the consumer‘s
mind (cadbury’s in chocolates); other brands have to necessary relate themselves in some wayto the leaders
position; they cannot ignore the position of the leader, nor wish it away.
7. Select an image that sets the product apart from the competing products, thus ensuring that the chosen
image matches the aspirations of the target customers.
8. Inform target customers about the product (promotion).
 PRODUCT POSITIONING AND BRAND POSITIONING
It is essential to understand the relationship between product positioning and brand positioning. The two
terms are synonymously and interchangeably used, technically they are different.
Product positioning denotes the specific product category / product class in which the given product is opting
to compete. And brand positioning denotes the positioning of the brand viz-a-viz the competing brands in the
chosen product category.

36.  ISSUES IN PRODUCT POSITIONING
The main issues in product positioning are:
1. Where is the new offer going to compete? As what?
2. Which product function/customer need is it trying to meet?
3. What other product categories serve this need? In other words, what are the substitute products
that serve the same need?
4. Where the real gap is, where is such a new offer welcome and wanted by the market?
5. What are the company’s competencies to fight here?
In fact, these are the issues the firm agitates in target market decision selection too. The linkage is only
natural because in product positioning, the firm is actually bridging the product offer with the right target
market.
 ISSUES IN BRAND POSITIONING
The issues in brand positioning are:-
1. Which are the competing brands in the chosen product category?
2. What are the unique claims/strength of the various brands?
3. What position do they enjoy in consumer’s evaluation and perception?
4. According to the consumer rating of the brands, is there a wide gap in expectation performance?
What kind of a product/new attribute/new functions will attract the consumer?
5. What is the most favoured position and yet vacant?
6. Can the new brand claim the needed distinction and take the position and satisfy that need?
 CRITERIA’S FOR SUCCESSFUL POSITIONING
Certain criteria are needed to be fulfilled for successful positioning are:-
a. Clarity: – While positioning its brand the firm must be able to position itself in both distinct value,
proposition, and to its target audience.
b. Consistency: – Consistency in positioning means keeping the positioning plank/bases intact for
longtime. Planks should be carefully chosen while positioning. But it does not mean that the firm must
change its positioning bases even though its survival is at stake. The firm must be flexible to the changing
environment.
c. Credibility: – The firm must deliver trustworthy and believable value proposition. There should be
perfect match between promise and action.
d. Competitiveness: – For surviving in this competitive and changing environment innovative resources,
talent pool, competitive advantage, strong financial backup etc are very important.
 REPOSITIONING
Repositioning involves changing target market or distinct positioning claim/differences advantages or both
to bring the saturated attention of the existing customers back into the limelight once again to survive safely
and happily in the market. In some cases, the products that are faring well are repositioned. This is done
mainly to enlarge the reach of the product offer and to increase the sale of the product by appealing to a
wider target market. The product is provided with some new features or it is associated with some new uses
and is repositioned for existing as well as new target market.

37. Example of Maruti Omni repositioning can be citied as important case in repositioning strategy. When
Maruti Omni was launched it was positioned as the low priced, spacious van. But in the market as the time
passed, Maruti Omni cannot acquire a dominant position. The major competing brands are more spacious,
though higher priced. Thus Maruti decided to take the path of repositioning. The features that were after
repositioning are:-
1. Most cars do not have any fifth door in the car. Maruti Omni had the boot-latch at the back of the car
which can be used both for entering and also for keeping goods.
2. In the new car there is around 7.5 cubic meter of space. This gives the advantage of more space for
luggage and more people.
3. For having a pleasant driving experience Maruti Omni the instrument panel is sleek, the steering
columns just positioned just right, seat are adjustable with control lever and gear shaft at hand-touch
distance.
4. Engine was improved from the previous one. It is more fuel efficient and delivers higher performance.
5. Safety features are standard.
6. A coolant system that eliminates daily chores of filling water in the radiator was introduced.
As a result of repositioning the whole perception of customer has changed toward Maruti Omni. Many
people start taking it as a family car. The company found a positioning theme”the most spacious car at
lowest price”.
Maruti Omni (After Repositioning)
 Another example of repositioning is Milkmaid’s strategy:-

38. When the product was introduced it was positioned as convenient form of milk that can be used in tea and
coffee. But the product cannot reach its desired goal in the market. As a result of which the company
repositioned it as an ingredient for a variety of sweets and other preparation, in addition to daily use in
tea/coffee. Today Nestlé’s milkmaid had many varieties such Nestlé’s Milkmaid fun shake, Nestlé’s
Milkmaid fruit shake which is available in strawberry and mango variant. Today milkmaid has acquired a
market leader position in milk products.
Conclusion: – Thus we can say that the total process of market segmentation, targeting and positioning is a
very important attribute of marketing mix. All these three process is very closely interrelated with each
other.
Once the organization has decided which customer groups within which market segments to target, it has to
determine how to present the product to this target audience. This allows to exactly addressing the needs and
expectations of the target groups with a tangible marketing mix that consists of product characteristics, price,
promotional activities and places to present the product.
Effective strategies of segmentation, targeting and positioning gives an extra advantage in changing and
highly competitive environment. To make this three marketing process effective a thorough SWOT analysis
of the firm is very important. Keeping in mind the strength, weakness, opportunity and threat the firm can
formulate and implement its total marketing mix.

39. Segmenting and Targeting Markets
TRESemmé has it's own market that sells products very well. A market refers to people or
organizations with needs or wants and the ability and willingness to buy. The idea that influences these people
or organizations are TRESemmé's product categories, since TRESemmé owns different types of products in
different categories, the market is more likely to buy TRESemmé's products because there are
different varieties to choose from. When the market has it's eye on one of TRESemmé's item, it's their job to
influence them to buy it. Within a market, a market segment is a subgroup of people or organizations sharing
one or more characteristics that cause them to have similar product needs. All people have similiar
characteristics and needs, as do all organizations. Another process that TRESemmé's goes through is a market
segmentation, which is the process of dividing a market into meaningful, relatively similar, and identifiable
segments or groups. All of these definitions make up a market.

40. Since all markets include groups of people or organizations with different product needs and
preferences,market segmentation helps marketers define customer needs and wants more precisely. This is
why having a market segmentation is important for TRESemmé and any other company out there.
Since TRESemmé's products will be more precise with market segmentation, markets can easily find what they
exactly want and need. An example of TRESemmé's market segmentation would be one of their shampoos, lets
say a customer wanted to buy a smaller bottle of TRESemmé's shampoo? The market segmentation will be able
to help this customer because the shampoo will come in different shapes and sizes overall. To have a successful
segmentation, companies must have these 4 important things: sustainability (a segment must be large enough to
warrant developing and maintaining a special marketing mix), identifiability & measurability (segments must be
identifiable and their size measurable), accessibility (the firm must be able to reach members of targeted
segments with customized marketing mixes), and responsiveness (markets can be segmented using any criteria
that seem logical).
Marketers use segmentation bases which divides a total market into segments. There are 5
basic segmentations that marketers follow. Geographic Segmentation refers to markets by region of a country
or world, market size, market density, or climate; TRESemmé follows this segmentation because they have their
products all around the world for marketers to grab their attention and make more profits out of
them. Demographic Segmentation refers to age, gender, income, ethnic background, and family life
cycle; TRESemmé's products aim for marketers who were born in the Y generation because they tend to buy
their products more other than the X generation and baby boomers. They also make their products cheaper than
other brand names that sell similar products. Psychographic Segmentation deals with personality, motives,
lifestyles, and geodemographics; this is when TRESemmé gathers information about people and this determines
how they should sell their products and what products should they sell. Benefit Segmentation is the process of
grouping customers into market segments according to the benefits they seek from the product; TRESemmé
will examine what their customers like and WANT in a product and what they should fix about their products.
Once they get the hang of this, their product would sell real good. Usage-Rate Segmentation divides a market
by the amount of product bought or consumed; TRESemmé keeps track on which one of their products are
having the most sales because this allows them to notice the special idea in that specific product that they can
add into their other not-so-well-selling products.

41. TRESemmé's business market consists of 4 broad segments: producers, resellers, government,
and institutions. TRESemmé's company characteristics is reasonable since they are located in
drugstores geographically and many buyers prefer to purchase from local suppliers since distant suppliers may
have difficulty competing in terms of price and service. TRESemmé's buying processes segments customers
and prospective costumers on the basis of how they buy. This allows them to become better sellers for their
markets.
After the whole segmentation process, the next task is to choose one or more target
markets. TRESemmé is the type of company who deals with one specific target market because this way they
can attract customers with a single marketing mix. There are different ways on how TRESemmé targets their
marketers. TRESemmé's way of targeting is theconcentrated targeting method. They select a market niche for
targeting its marketing efforts. The developing of any marketing mix depends on positioning, this influences
potential customers's overall perception of a brand, product line, or organization in general. TRESemmé needs
to know where they should position their products so they can catch the consumer's eyes. They have all their
products in one section of a store as a product line going from shampoos, conditioners, gels, hairsprays, hair
styling products, etc.
Market and operations analysis of Unilever

42. Published: 23rd March, 2015 Last Edited: 23rd March, 2015
This essay has been submitted by a student. This is not an example of the work written by our professional
essay writers.
Unilever is commissioned to satisfying the domestic need of everyday people everywhere, the brands are used
worldwide by millions of individuals consumer, their popular products includes Dove, Lux, Lipton, Hellman,
magnum and Vaseline. Unilever has 400 companies operating in 150 countries worldwide, the company was
established 1930, their brands are diverse with this they are able to satisfy their customers worldwide. Unilever
was created by the merging of British Soap lever Brothers and Dutch Margarine producers they continued
growing by acquiring companies in the same line of production.
For the purpose of this paper Unilever product would be examined in two regions in Brazil to highlight how
Unilever products varies in these two regions and what marketing strategy they are applying to promote their
products in these region
2.1. : Operation
2.2. Unilever aims to grow by
By purchasing local and national companies
By putting up a green field site in the country the companies are located
And also importing when possible and profitable from external sources
2.3. Unilever classify its products into
Home and personal care: the class includes; soap, toothpaste, perfumes, cosmetic, deodorant, shampoo,
fragrance, detergent for fabric e.t.c.
Food products: this class includes; tea, ice cream, fish, margarine, frozen foods, spreads, cooking oil products
e.t.c.
Professional cleaning
Plantation, plant science and trading operation: tea plantation and innovation of raw materials for vegetable,
tomato, edible oil and bakery.
The table below shows the countries where Unilever has high recognition and investment
Europe
United kingdom, Germany, Netherlands and France
North America
United state of America
Latin America
Brazil
South Asia
India
Asia and pacific
China, Japan, Australia, Philippine, Thailand, Indonesia

43. Africa and middle east
Nigeria, ivory coast, Ghana, South Africa
The countries where Unilever products are not recognized include Burma, Cuba, and Algeria.
2.4. How they operate from the head office:
Unilever global success can be linked to the high national flexibility and low economic integration strategy they
remain close to customers in the local market by allowing regional managers to have authority to make
operating decision in the geographic areas.
Aggressive globalization policy: there are many ways a company could enter a local market, it could be through
joint ventures, acquisition, investment, franchising e.t.c, Unilever aggressive globalization policy enable them to
purchase local companies and raise the standard of the product, marketing them locally in different countries
All managers must comply with the local rules and regulation
Unilever in Northeast Brazil
Unilever started business in Northeast Brazil with the market target of low-income earners in mind to explore
the opportunity in the market of detergents.
Environmental scanning: the first task for Unilever was to examine the environment and people living in Brazil,
their lifestyle, aspiration, shopping and laundry habits of the low-income earners, after this research unilever
was able to find out that the low-income earners would love to buy the unilever product detergent but due to the
tight income they could not afford it.
Only 28% of the brazil population in the northeast has washing machine and 73% think that bleach is a
necessity to remove tough stains, they wash their cloths using bar soap which involves the process of scrubbing
which means they use more of bar soap than detergent, they mainly add detergent to their cloths to make it
smell good, they also do their washing 5 times in a week due to the fact that they own fewer cloths and have
more time.
The market for bar soap was easy to access than detergent in the northeast, the production cost for bas soap was
low, another fact for the success of bar soap in northeast of brazil is due to the water concentration, the water in
brazil is low in calcium which makes the water soft compared to the hard water in Europe, U.S and India. (refer
to exhibit 3)
The northeast side of brazil people view cloth washing as one of the pleasurable activities, they often wash their
cloths in a public laundry either a pond or river where they meet friends and chat, they are proud of the fact that
they keep the family clean. They perceive cleanliness as an indicator of a dedicated mother of the family,
The six major consumer expectation of a detergent includes;
Cleanliness, whitening, productivity
Smell and softness
Ability to remove stain
Dissolving power
Packaging
Harm to colours
This is placed in other of importance from the top to the bottom
Unilever in Southeast of Brazil.

44. The southeast of Brazil is more developed area in brazil than northeast (refer to exhibit 1), their life style is
similar to the European, the cultural norms of brazil is mixed with European and north America due to influence
from the western words.
67% of family owns a washing machine in southeast and 18% believes that bleach is necessary to remove tough
stains unlike the 73% in northeast. In southeast clothing washing style is similar to the Europe and North
America style, they often use washing machine for cloths, mixing laundry soap and bleach to remove tough
stains, they use more detergent than bar soap.
They southeast women classify cloth washing has a boring chore and are only interested in making it easier,
cloth washing is done at home unlike the northeast where cloth washing is done in public places and classified
as a pleasurable activity, women in southeast has little time to spend on cloth washing due to the high-life style
and work.
The people in northeast and south east differs in emblematic value they attach to cloth washing and cleanness,
the southeast people owns a washing machine and has no or small interest for self esteem and social status
regarding cleanness of cloth.
Unilever had little or no change to their products in southeast of brazil due to the similarity between southeast
brazil and Europe, the southeast Brazilian often shop in big supermarket which makes product penetration
easier for unilever, all they had to do is to make the product awareness high, television commercial, and other
means of commercial where used to make the product awareness high, unlike the northeast, the southeast people
do not depend on the information from the sales person in the store, they would shop for the product they want
and they buy high brand quality products.
The entry method for Unilever in brazil was basically mergers and acquisition, they believed in developing
local products and also inject their own product through the local companies they purchased local companies in
the same line of production, one of unilever major acquisition includes kibon which is the largest ice cream
business in brazil this company was bought from Philip Morris
In order for Unilever to meet the demands of both northeast and southwest they had to had to adjust four
marketing mix which includes;
Product:
Unilever has the option to produce similar products to their cheapest detergent (camperio) but would this
product meet the expectation of the consumer, or produce similar product to their most expensive detergent
(Minerva) but will the consumers be able to afford it, what they did was to create a product within the two, they
had to eliminate some ingredient improve some and leave some relatively to the existing products to develop a
new product called OMO.
They also had to select the right packaging and size, according to the market research they found out that the
north-eastern Brazilian were attracted to the traditional cardboard packages and believed that anything not in
this package is only good for second-rate product, they launched different packages and sizes to the give
consumers choice.
Unilever stayed with their high quality product in southeast of Brazil, the people there could afford the product
and would only shop for high quality products from major super markets.
Price:
Giving the product a price too high would make the product out of reach for the target market and also making
it too low will lead to the reduction of sales of other detergent products.
Unilever picked a price that would be convenient for the target market.
The price of detergent in southeast was on the high side, the southeast people are willing to pay the price for
high quality goods.

45. Promotion
Unilever distributed the communication expenditure for promotion to 70% for media advertising and 30% for
trade promotions, event and point of purchase marketing, they also used mostly media advertising because the
most of Brazilians are constant television watcher, they also relied on the sales point marketing.
The promotion in the southeast was more western than northeast, they used majorly Television commercial and
bill board advert, the southwest cared less about the sales point marketing, they would from supermarkets
having in mind the product they want buy.
Distribution
They relied on the general network of wholesalers, the low income earners rarely shop in the big supermarkets.
The southeast Brazilians shop in the big super markets.
Exhibit 1 (distribution of social classes in Brazil (southeast and northeast)
Exhibit 2 (market share of detergent in Brazil) C:UserssegzyDesktopprodct penetration.PNG
Exhibit 3(penetration and consumption of bar soap and detergent)
C:UserssegzyDesktoppenetration.PNG
Task 2
What is culture?
(Hofstede 1980) dimension of culture is the most used model for defining culture, (yoo and Donthu 1998) refers
to culture as the stable and enduring characteristic of individuals in a society, these characteristics are also
subject to changes due to influence from external factors. Some researchers refers to culture as admiration of
music, art, literature and good food. The anthropologist believes that culture is the full scale of ascertained
human behaviour pattern. The term culture was first used by Edward B. Tylor the pioneer English
anthropologist, he described culture has the “complex whole which includes knowledge, beliefs, art,
law, morals, custom and any other capabilities and habits acquired by man as a member of a societyâ€Â•
he also argues that culture is a survival tools which humans must have to blend in, and it changes easily because
it exist only in the mind.
(Tylor 1871) pointed out that there are three layers of culture; the first is the full body of culture that
distinguishes people in different societies like Americans, Italians, Nigerians and Japanese. The full body of
culture consist of the language they speak, traditions and beliefs which differs in different societies, the next is
subculture he refers to this as the different cultures within a full body of culture, examples are within the
Americans we have the Vietnamese American, African American and Mexican American, also in Nigeria there
different ethnic groups such as the Yoruba, Hausa, Igbo e.t.c. all the subculture members shares related identity
such as local dialect, food tradition and many other cultural traits that was passed on from their ancestral history
and experience, for example the style of washing varies in the northeast and southeast of brazil(refer to
appendix 3 and 3.1) the third layer of culture is cultural universal this can be refers to as the human behaviour
pattern that is shared around the world, patterns such as survival, clothing, living under a shelter, for example,
unilever has companies in almost every part of the world providing the basic needs of the people in these
countries, they produce home and personal care products for all this countries the only thing that change is the
production and marketing systems in each countries. As a human we also have little similarities in our culture
which are survival, clothing and shelter.
According to (Shahla A. 2002) he said culture is made up from the following characteristics
Language: this is the oldest human institution that varies from one society to another, this is the way a society
communicates verbally to another member of the society.

46. Art and science: this is another way of culture that varies in different society, this contains traditional music,
traditional dance e.t.c. this is another and refined form of human expression apart from language.
Thought: this is the way we perceive, interpret and understand the world around us, there are similar symbols
and signs in the world but the interpretation and meaning varies from one society to another, example is the way
the northeast side of brazil perceive cleanness as a symbol of a dedicated mother to her family and the southeast
cared less about cleanness
Spirituality: this is the spiritual value system of the society related to the religion such as Christianity, Muslims,
Buddhist e.t.c.
Social activities: this involves activities such as festivals and other social events they way they are carried out
varies in different society.
Interaction: this is another social aspect of a society which includes how negotiations are been made.
IMPACT OF CULTURE ON MARKETING STRATEGY
(Maitah 2010) Companies operating internationally are increasing every day, countries are opening their doors
to new organisation for business and reducing barriers for business, an organisation would decided to go global
after achieving all its aims and objective in its host country, it will be facing high competition in the global
market, this will cause them to restructure their operations to be able to survive in the international market, one
of the major challenges an organisation would face is cultural difference.
Culture can affect business decisions in many ways from language barriers to pricing difficulties to cultural
collusion this is bound to happen especially when the organisation is just starting business internationally
(Nakate 2009). For an organisation to survive in another country it has to comply with the cultural values of the
country, except when the product is been standardize.
(Hofstede 1980) came up with the five different dimension of culture, he argues that all the countries belongs to
one or more of the following characteristics, powered distance index(PDI), masculinity, individualism,
uncertainty avoidance index, long term orientation.
(Terpstra and sarathy 2000) came up with cultural framework, for a product to be accepted in a society it must
comply with the demands of culture in the society, they classified this demands into eight which will impact the
decision of organisation in doing business in another country and also help the managers in making business
decisions.
An organisation needs to create awareness for its products and this is done through communication (Terpstra
2004), the local language would be use to attract more customers, an organisation must consider the cultural
difference in communication process in a country, this difference can be explained as low and high context
communication, context has to do with how much you know before you can communicate and other demands
includes; Law and Politics, religion, education, social organisation, values and attitudes, aesthetic, technology
and material culture all this attributes would influence the decision of an organisation operating in foreign
country.
(Strodtbeck 1961) came up with the frame work that identified 6 basic cultural dimension, which will contribute
to the success of the organization if well utilized, they includes, relationship to environment, nature of people,
activity orientation, focus and responsibility, conception of space.
Unilever was able to respond to the cultural demands in northwest Brazil by scanning the environment and
finding out the actual need of their market target which is low income earners, they adjusted the product to the
taste of the northeast Brazil, the cultural values and beliefs had impact in the production of the detergent OMO.
(Phimister 1999) An organisation would decided to go global to expand into foreign market with higher
opportunity and higher profits, also when they are stagnant in the domestic market and when they need large
customer base to achieve economic of scale.

47. Unilever major reason of going global is to achieve high customer base which in turn will increase their profit
and development
It is important for organisation to be aware of the manners and customs in the country, if the first impression
about a product goes wrong, it would be hard to shake off the impression. Method of business in another
country cannot always be the same as the host country, respecting and understanding the culture will go a long
way in helping organisation to settle down in foreign countries.
After proper recognition of the culture of the country, they also have to deal with political and legal issues of
the country, political decision will have a direct effect on the economy (Adrian P, Bob H. 2006) political
decision has direct effects on the economic environment, social and cultural environment and the way which
technology appears and are adopted through tax dispensation for research and development of technology, an
organisation would have to put into consideration when going global, the political activities of the country and
how save the country is politically, most business in the middle east country like Libya and Egypt are having a
downtime because of the crisis in these countries.
Global Pricing
(Kottoli 2007) An organisation could decided to use market skimming and financial objectives or penetration
pricing and nonfinancial objectives, market skimming price could be set on the high side to achieve financial
objective including rapid recovery of cost and investment. Market skimmer is also a deliberate act of an
organisation to reach specific market targets that are willing to pay premium price for a brand (the global elite).
Market skimming is mostly used by organisation when there is little or no competition, companies like
Mercedes Benz use market skimming strategy for their products.
(Lowe 2001) Penetration pricing and nonfinancial object is another strategy that could be used by organisations,
this strategy is used mostly when there is high competition on the product or service, companies would tend to
reduce the price of their product to attract more customers.
Unilever has a market penetration pricing strategy, they tailored the price of their product to the pocket their
market target, increasing the price of the product would be out of reach for the market target. (Kindly refer to
appendix 3.1.2)
Market Segmentation
Market segmentation is another strategy used by organisation when going global, due to the large market, (Ola
M. 2010) organisations would have to segment the market to increase profit, popularity in the market, better
customer satisfaction, better opportunity for product sales and growth and also to enable very easy product
communication.(warren J and Mark C. 2008 P.221) identified market segmentation has the process of
identifying a particular set of people on the market with the same homogeneous characteristics and give the
same response to a particular products.
They are different ways an organisation could segment a market, different methods of segmenting a market
includes demographic, geographic, behaviouristic and physiographic, socio economic, (Cherlie N. 2010) apart
from the well know market segmentation methods he also identify some other methods which could be used for
organizations they include; product usage, benefit sought after, some customer may prefer quality to quantity
while some are vice versa, geodemographic this is the combination of geographic and demographic
segmentation.
Unilever used geographic method of market segmentation for the detergent OMO this product was specially
designed for the Northeaster Brazilians and also the low income earners in the area. (Kindly refer to appendix 3)