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Unit 13 Marketing Strategy Assignment – Persil
Diploma in Business
Unit Number and Title
Unit 13 Marketing Strategy – Persil
The unit 13 marketing strategy assignment – Persil has been drafted over the marketing strategy of the Persil brand. In order to have better sight over the marketing strategies and the current position of the brand within the market situational analysis has been drawn. Through SWOT analysis the external and internal factors of the organisation are assessed. PESTLE analysis is conducted to analyse the impact of the external business environmental factors over the business practices and market strategies of Persil. Competitive advantages through the unique selling proportion are also discussed. STP strategy of Persil has been discussed through this report. SMART mnemonics is used to recommend proper and accurate objectives of the marketing strategies. By using the market mix elements product, price, place and promotion strategy of Persil are analysed. On the basis of marketing mix marketing strategies are recommended to Persil.
The internal business environment analysis can be done through analysis of the current strengths and weakness of the organisation. Threats and opportunities will indicate the external factors which can impact over the organisational business in future perspective. (Kotler, and Armstrong, 2010)
Strengths: the Persil Brand is having the major strengths from the two parent companies naming Henkel and Unilever. The brand has employed more than 167,000 people. The brand has been gaining major strengths from the market research budget. Brand recognition among developed countries and emerging countries is also increasing the number of customers. The geographical spread is also a major concern of the brand which has been providing strengths to the brand. (Fischer, and Henkel, , 2010)
- High Brand awareness among international markets
- Alliance with Henkel and Unilever provides the brand superior identification and profitable launches in various countries
- Emotional connection with the customers
- High engagement of staffs and technical expertise and adding innovation within the production
- Various products’ line is attracting the customers’ attention towards the brand
- Strong brand image in foreign consumers
- Brand’s visibility and good distribution
- Market penetration aboard
- parent company reduced brand portfolio from 1000 to 400 and increase the revenues to 50% as well as the profit margin by 100% (Fischer, and Henkel, , 2010)
Weakness: the board product portfolio is a weakness of the organisation. The long range of products are shifting the focus from individual products’ efficiency and from the marketing effectively. As the prices are higher than the competitors on similar products the consumers in most nations prefers the rival brands over Persil. Though the prices are higher for offering better quality this has been impacting negatively over the customers’ preferences of the brand.
- Association with two huge companies Henkel and Unilever is giving strong competition in both domestic market and foreign market.
- Focus over the emerging has been shifting the focus from the established market
- Current loss in the domestic share has been impacting over the business
- More focus over the technology has been shifting the focus from the needed products (Slater, Hult,. and Olson, 2010)
- Increasing interests over the eco-friendly products are providing ability to leverage the strengths
- New line of products are increasing the sales as well as engaging attention of the consumers.
- Niche market
- Need technological improvements in different production and distribution channels (Slater, Hult,. and Olson, 2010)
- Slump growth in the world economy
- Rising price wars are impacting over the business expenses and reducing the profit margin.
- Rise in the cost of fuel is impacting on the distribution and budget.
- Higher completion in the international markets
- Resistance to change has been effective over the brand image (Slater, Hult,. and Olson, 2010)
PESTLE analysis :
Main aspects of PESTLE Analysis
Political: being under the two well known organisations the brand has to face different political impact. Operating internationally also impacting over the business as different country has different laws and political issues. As British political system has been facing different issues and the Dutch political system is in a time of instability Persil has been facing difficulties in operating in these countries. Elections in these two countries and the coalition are providing hurdles in the business. Government5al frameworks have significant implications over the business policies. Changes in the Value Added Tax are also implementing over the business conduct. As Netherlands has been the member of the European Union the nation has been facilitating trading among the member states. Operating within the member state of the EU is decreasing the trade barriers. In recent measures the exit of Britain from the EU has been impacting over the economy of the nation as well as the business. Political unrest in the Middle East is influencing the market share. (Mitchell, Wooliscroft, and Higham, 2010)
Economical: within Europe the market is still facing effects of the post war period. These are also impacting on the buyers’ behaviour and the household consumption. Rising unemployment rate, wages have impacted the business activities. Increasing competitors in the European market has been adverse effects over profit potentials. High unemployment, low wages are decreasing the consumer demands. (Mitchell, Wooliscroft, and Higham, 2010) Due to the current economic tide the consumers in European market are avoiding the expensive products. As a result the brand has been facing difficulties in placing products. Emerging markets like China and Asia are providing opportunities.
Social environment: the increasing trend of the hygiene has been adapted by the Persil by relentlessly improving the hygiene standards. The acceleration of the aging population is also impacting over the demands of the products. Apart from this the low literacy of within the population also impacts over the success of the marketing strategy of advertisements in print media. This also impact over the human resource availability. By recruiting migrant resources the brand can be able to face this impact. The health and ethical consciousness among the consumers are increasing with the globalisation trend. (Mitchell, Wooliscroft, and Higham, 2010)
Technological: increasing usages of the technologies especially in the young generations has been influencing the brand to implement modern technologies. The communications with the customers are also done through modern technologies. Persil implemented modern technologies in the production to increase the efficiency and to enhance the quality. Adding new inventions also required to achieve the excellence. Persil is including innovations and high technical aspects within the productions for achieving the excellence. Persil has been improving brand communications through the internet and including e-business within the business approaches. Through IT expertise the cost of the overall operations are minimised by Persil. Advanced bioscience, nanotechnology, advance material science are the concerning areas. The readiness of the products and the prices, shopping online, digital activities are also crafting the marketing strategy of the Persil. (Mitchell, Wooliscroft, and Higham, 2010)
Legal: significant legislative changes are impacting in the area of different operations. Different laws like anti-discrimination law, equality laws, people management etc are concerned area in this environment. Legislative frameworks are also focusing over the areas of ageing populations, retirements, pension etc. In the human resource management Persil has to concern over these legislative frameworks. Multinational activities or the international trading are also influenced by the legal framework of different countries. The legal framework over the hygiene factors are followed by the brand in their production stage. Taxation policies and fiscal and monitory policies of government are followed by the organisation to avoid the legal consequences. (Lamberti, and Noci, 2010)
Environmental: consumer health and safety issues are concerned by the brand. The environmental issues are also related with the social corporate responsibilities. By enhancing and implementing the policy of health and safety and maintaining proper health measures within the production corporate and social responsibilities are performed by Persil. Regarding this Persil with Unilever introduced training programmes to different business groups for ensuring the compliance with the organisation’s Standards for Occupational Health and Safety Environment Care and the management of ISO standards. (Lamberti, and Noci, 2010) In the respond to the environmental degradation Unilever with joint participation with Henkel is cooperating with the governmental bodies in waste management system. Under the requirement of the Kyoto Protocol the carbon emission reduction strategy is also generated by Persil.
Competitive advantage (USP)
Persil has been operating within a string competitive market. For the survival the organisations try to have better position in the market. Competitive advantage can be gained through competitive strategy which includes cost focus, differentiation, differentiation focus, cost leadership. Leadership within a market can be approached through cost leadership or differentiation of the products. (Nath, Nachiappan and Ramanathan, 2010)
- USP: Persil has adapted unique selling proposition or USP for the competitive advantages. Unique Selling proposition is a factor which is used by differentiating the products from the similar products of the rivals in terms of the lowest cost, highest quality or uniqueness. The unique selling proposition is a form of marketing which has been adapted by the brands to convince the customers in switching the brands. This strategy states the reason behind the differentiation between other products and the organisation’s products. The USP strategy is the key to effective selling by pinpointing the uniqueness of the brand within the homogeneous competitors. (Nath, Nachiappan and Ramanathan, 2010)
- USP of Persil: Persil has been using the USP strategy through proper implementation of its two phases such as the market research and the creativity. Through market research Persil has been gaining the acknowledgement of the market perspectives, competitors’ strategy in customer approach and the customers’ preferences. Through the market research the company has been carefully analysing other homogenous companies’ ads and marketing messages. Through this analysis the brand Persil has been able to acknowledge how the companies are distinguishing themselves. (Nath, Nachiappan and Ramanathan, 2010) The Persil develops a strong brand image by using the USP such as “Persil washes whiter” or by promoting the products unique ability to provide hygiene better than other competitors.
Current marketing strategy:
Marketing objectives: the current marketing objectives of Persil are to attract the potentials customers, engage social customers and create the social network platform. The current market plan of Persil is Persil Cleaner Planet which has been developed to produce environmental friendly products for all ages. The main objectives are:
- Increase brand awareness
- Increase current sales
- Reduce carbon footprint (Persil.co.uk., 2016)
Mission: the mission of Persil behind the current marketing strategy is to influence the customers through putting value and trust in the relationship. Through proper implementations of the health and safety policies the target market are approached by Persil. (Persil.co.uk., 2016)
Strategies: the marketing strategies are adapted by the brand to increase the brand awareness among the foreign markets. The current strategies are seeking to provide appropriate brand messages to the wide range of customers. Other perspectives of the strategies are to place strategic relationships with the parent companies and also establishing mutual beneficial for having visibility of each other. Different marketing strategies of Persil:
Online activities: global digital marketing strategy has been implemented by Unilever for the promotion of Persil in more than ten international markets. The digital drive of the brand is known as Omo outside UK. The brand has created web portal for providing proper information of the products and a range of training tips. Aprt from it the web portal is also providing information on family oriented content. The branded web portal is also upgrading the information existed within the current website by encouraging the customers to become planet friendly. Regarding this online advertisement campaign has also been arranged. Apart from the advertisement a marketing drive has also been organised naming comfort Pure. You tube, Twitter, and Instagram are approached for the promotional activities through online, marketing campaigns are done by Persil for placing the products awareness through cost effective manner. (Berthon, Pitt, Plangger, and Shapiro, 2012)
Offline activities: complementary products ads through T.V and SMS along with print advertisements through magazines and news paper are conducted by Persil. The offline marketing activities are done for targeting a wide range of consumers of all ages.
CRM: marketing strategies of Persil are also developed on the basis of customer relationship management. In the recent market strategies of Persil, the brand has been increasing the customers’ relationship approaches by placing online transaction, customer feedbacks etc. (Berthon, Pitt, Plangger, and Shapiro, 2012)
Segmentation, targeting and positioning
The wide market is needed to be segmented through proper measures. Segmentation of a market must be done for the dividing the wide market into smaller components targeting considering different criteria such as behavioural segmentation, geographical segmentation, Demographic segmentations etc. By using these categories the customers are divided into subsets of the market. (Blythe, and Megicks, 2010). Persil adapt demographic segmentation by dividing the market in the terms of age, population, gender, family size, income, education. Through this segmentation the customers and target markets can be divided on proper measures and the brand will be able to make the efficient marketing. (Blythe, and Megicks, 2010). Persil can segment the market on dividing the consumers by considering the behavioural segmentation criteria. The users of the laundry and home care, adhesive technologies and beauty care are segmented by Persil. The behaviours of the users of laundry services and their needs, preferences over the product’s quality and quantity, must be analysed before segmenting the market. (Blythe, and Megicks, 2010)
Targeting the market:
Targeting the market is necessary for placing the product with efficient manner. The customers and their preferences over those products must be analysed by Persil for targeting the segmented markets. For targeting the market the types of people who are included within the market segment should be defined. (Lee, Park, Yoon, and Park, 2010). The segmented market can be target with efficiency. The consumers who have consciousness over the environment and ethical issues related to the environment should be targeted by Persil. Considering the behavioural market segments the consumers who prefers the new technological advances within the products should be targeted with efficient measures. New parents are also targeted by Persil along with baby boom. (Blythe, and Megicks, 2010). Considering the customers who have better income and upper class background can be targeted for the higher price products. The householders who have families along with kids from mass, medium and upper class background can be adapted through efficient marketing strategy. Through penetration pricing Persil can target the customers who are trying to change their current brand of laundry products to more environmental friendly products.
Positioning the product:
Positioning the products in the market includes three prime strategies brand, product and price. Positioning is the marketing strategy which has been used for making a brand to occupy a distinctive position in the competitive market. Through positioning strategy the brand can be placed in the mind of the customers. (Blythe, and Megicks, 2010). Persil uses proper positioning statement for attracting the potential customers towards the brand. Through the effective positioning message the brand has been communicating their reliability as the laundry products along with their usages of the technologies for customer satisfactions. Persil has been positioning the customers based on four categories- emotional expensive, rational and cheap. Persil has placed its products within the market through the emotional, expensive and rational category of positioning. (Blythe, and Megicks,2010). Persil has adapted competitive positioning by direct and indirect comparison to the comparative products such as Tide. The brand has been defining the core benefits of the cleaning clothes better with the products of Persil and also place challenge to the
brand Tide. (Lee, Park, Yoon, and Park, 2010)
Recommended objectives and goals (SMART)
Goals and objectives: goals of a plan or strategy are related to the overall result. The goals are the purpose towards which an attempt is directed. On the other hand the objectives are related to the efforts or actions which are intended to accomplish the purpose defined in the goals. (Lee, Park, Yoon, and Park, 2010)
SMART framework: For marketing strategy proper goals and objectives should be formed over the marketing activities. For specifying the marketing objectives the use of the SMART tool is common. Through SMART tool the suitability of the objectives which are set for the driving different strategies of the marketing. In the setting of the future goals and objectives of the marketing planning the SMART mnemonic is helpful. The SMART objective definition:
- Specific: the objectives which are set for the Persil marketing strategy should be specific. The objectives should be sufficiently detailed to measure the real world trouble and opportunities.
- Measurable: the objectives and goals should be measurable by placing a metric through adding qualitative and quantitative attributes.
- Actionable: the objectives should be actionable or achievable. The actionable objectives are required for the improving the performances of the organisation. The objectives should be aligned with the corporate goals. The objectives should be set over action oriented measures. (Lee, Park, Yoon, and Park, 2010)
- Time bound: time frame must be defined over the objectives and goals for achieving the goals within proper accuracy. Objectives are short termed but goals are long termed.
By considering the SMART framework the goals and objectives of the Persil’s marketing strategy are conducted over customer acquisition, retention and conversion:
Digital channel for marketing: Considering the marketing planning of Persil, it should achieve 10% of online revenue contribution within two years. (Lee, Park, Yoon, and Park, 2010)
Acquisition objectives: Thedigital marketing of Persil should be measured over the objective of acquiring new online customers with average profitability of £5.
Conversion objectives: increase the current average sales through online order as well as offline order within one year. (Lee, Park, Yoon, and Park, 2010)
Engagement objectives: increasing the active customer purchasing once a quarter.
- Product: the products are the units which should be placed on the customer needs in different markets. The products of Persil are consists of environmental friendly measures with non biological hypo-allergic washing powders. The products of Persil have been made from the ingredients which are used for providing washing of the reusable nappies. (Lee, Park, Yoon, and Park, 2010) Through adding technologies the products are made with advance methods for the attracting customers who are using modern technologies in their laundry purpose. The products are also included proper packaging and branding is included within the product of Persil. The labelling of the products of Persil displays the suggestion section and advice over the washing tips and promoting different environmental issues.
- Price: the prices of the products of Persil are higher than general market prices of detergents. For attracting more customers from mass market as well as middle market the penetration pricing strategy must be used. For the new products the introductory price will be offered to the customers. The initial prices should be set in line with other biological products of Persil. After certain time measure the prices will be increased with focusing over the close competitors and their prices. For achieving the maximum profit the price must be reviewed in constant manner. The pricing strategy should be developed with the objectives to boost the current sales and profits of the organisation. (Lee, Park, Yoon, and Park, 2010)
- Place: the distribution of the products should be planned with careful measures. The supply chains and distribution channels are referred in the placement of the products. Through proper distribution method the accessibility of the products are increased. Persil has well developed distribution channels through retailers and wholesalers. The international markets are approached with the internet marketing or e-marketing strategies. The online marketing channels are used to allow the customers to select their preferred products and preferred channels. With more personal relationship with the customers the brand is trying to place better commitment in the CRM strategy. (Lee, Park, Yoon, and Park, 2010)
- Promotion: Persil performs a wide range of marketing campaigns for reaching the target markets. Advertisements are done through T.V. and printed media such as the magazines. The brand is already spending the budget over the digital market, websites social marketing etc. Apart from these, partnership working with the local councils, different nursing homes or hospitals would also effective to promote their environmental friendly products. (Lee, Park, Yoon, and Park, 2010)
Recommended marketing strategies:
- Mission: the mission of the marketing strategy of Persil must put the customers in the centre of the strategies. Through highest quality and the better implementation of the standards the highest values can be offered to the customers. Through proper marketing strategy the brand will place trust and values within the customer relationship. The goal of Persil would be maintain the leading position within the HDD category. (henkel.com, 2016)
- Vision and values of Persil: the vision and values of Persil guide the employees and staffs to make the strategies successful. Through the vision and values Henkel tends to unite the employees towards a common goal and the fundamental purpose of the organisation. The vision of Persil is to provide direction and sense of destination to the staffs and lead the human resources towards the aspiration of being the best within the competitive market. (henkel.com, 2016)
- Competitor analysis: in order to make the marketing strategy successful the current strategies of the strong competitor within the market must be analysed. This will provide the idea over the uniqueness within the approaches. Considering the competitors of the Persil products, the P&G has been provided hurdles in the competition. P&G has been offering homogenous product in the international market and reorganising the brand portfolio in the international market. (Cravens, and Piercy, 2006)
Online activities: with the increasing trends of the use of the internet within the customers the competitors are opting for the advertisements through the internet. Persil should consider certain approaches with the existing activities:
- E-marketing campaigns: this campaign will position the products within a larger mass market through cost effective and time effective measure. YouTube, Pop-ups in different WebPages, creative advertisements through innovative video and audio measures in different social platforms like FaceBook, Twitter etc should be done regarding e-marketing. (Cravens, and Piercy, 2006)
- Online storyboards: online story boards are useful to encourage the customers through the presenting the stories of the customers who have experienced on using the products of Persil. It can be used as the customer forums where the customers can share their experiences with other customers. This will also increase the values and trust within the customer relationship.
Branding: the branding strategy of Persil would be the differentiation strategy through differentiation than the local products the brand cam place itself within the market and attract customers’ attention to increase their willingness to buy. (Cravens, and Piercy, 2006)By analysing the distinct in the tastes of different customers the brand place different creativity in packaging and products development. By preferring the climate changes in the different countries the components like bleach in the products should be added over local needs analysis.
Advertisements: advertisements through T.V. and print media, sampling the products in local markets, promotions, sponsorships bigger events like Super Bowl are also necessary to provide proper information about the products. (Cravens, and Piercy, 2006)
The above marketing report has been drafted over the marketing strategy of a detergent company. Marketing strategies are essential for the survival in the strong competition within the current market. The marketing strategy comprises goals, organisational objectives, and corporate objectives. In order to make the marketing strategy successful proper marketing research should be made. Persil has been conducting the market research with efficient manner to have successful measure within the market. By focusing over the product mix and marketing mix the maximum profits can be obtained through marketing strategy. The marketing strategies are done to convince the customers about the uniqueness of the products than the competitors.
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