Unilever V Nestle
Introduction
Today we live in a global economy in which the time taken for people to move between continents has been significantly reduced and in which Internet and other connections make instant connections possible. Businesses and organisations now have to recognise that they now operate in a global market place and to develop appropriate strategies. A global strategy is an organisational plan that takes into account these new global realities.
Both Nestle and Unilever have developed global distribution and marketing networks, based on their powerbrands i.e. market leading brands that are recognisable in nearly every country in the world. Both Nestle and Unilever have many powerbrands.
Key aspects of global strategy include:
1. Treating the global market as the domestic market, in terms of attention to detail, without being complacent or ingnorant.
2. Creating a global marketing mix, recognizing regional and national differences, such as differences in language and tastes.
3. Creating global production and distribution systems, e.g. superfactories covering major areas of the world.
4. Concentrating on powerbrands - the most successful brands and products. Because the global market is so large there are substantial benefits to be gained from economies of large scale production, marketing and distribution. Rather than producing thousands of different products it makes sense to narrow down the range to a much smaller number in order to support these brands across the globe.
Unilever
Unilever is one of the world’s leading suppliers of consumer goods, including household favorites such as Persil, Knorr, Hellmann’s, Lipton, and Dove. To keep up with consumer needs and increase operating margins, Unilever wanted to consolidate its 1600 brands to 400. By consolidating its brands, Unilever plans to focus on stronger product innovations, strengthening marketing efforts, building a world-class supply chain, and simplifying business
Today we live in a global economy in which the time taken for people to move between continents has been significantly reduced and in which Internet and other connections make instant connections possible. Businesses and organisations now have to recognise that they now operate in a global market place and to develop appropriate strategies. A global strategy is an organisational plan that takes into account these new global realities.
Both Nestle and Unilever have developed global distribution and marketing networks, based on their powerbrands i.e. market leading brands that are recognisable in nearly every country in the world. Both Nestle and Unilever have many powerbrands.
Key aspects of global strategy include:
1. Treating the global market as the domestic market, in terms of attention to detail, without being complacent or ingnorant.
2. Creating a global marketing mix, recognizing regional and national differences, such as differences in language and tastes.
3. Creating global production and distribution systems, e.g. superfactories covering major areas of the world.
4. Concentrating on powerbrands - the most successful brands and products. Because the global market is so large there are substantial benefits to be gained from economies of large scale production, marketing and distribution. Rather than producing thousands of different products it makes sense to narrow down the range to a much smaller number in order to support these brands across the globe.
Unilever
Unilever is one of the world’s leading suppliers of consumer goods, including household favorites such as Persil, Knorr, Hellmann’s, Lipton, and Dove. To keep up with consumer needs and increase operating margins, Unilever wanted to consolidate its 1600 brands to 400. By consolidating its brands, Unilever plans to focus on stronger product innovations, strengthening marketing efforts, building a world-class supply chain, and simplifying business
Bibliography: • Company theory article from The Times 100 http://www.thetimes100.co.uk/theory/theory--company--324.php • "Nestle 's market wars: the food giant is drawing on local expertise to put marketing at the heart of its global growth strategy" – Alex Benady http://findarticles.com/p/articles/mi_m4070/is_207?pnum=3&opg=n13787808 • Unilever annual review 2006 www.unilever.com • Unilever fact sheet www.unilever.com • Unilever case study www.uk.businessobjects.com/resources/ar/unilever_case_study.pdf