Unilever
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MARKETING: Group 1
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Case: Chandon, Pierre (2004). Unilever in Brazil: Marketing Strategies for Low-income Consumers (Question 1 a & b)
a) Discuss whether marketing and branding can create value for poor consumers.
Marketing is the performance of activities that seek to accomplish organisations objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client with the intention of making a profit.
Branding means the use of a name, term, symbol or design – or combination of these – to identify a product. It includes the use of brand names, trademarks and practically all other means of product identification. (textbook P 197)
Customer Value is the difference between the benefits the customer sees from the marketing offering and the costs of obtaining those benefits. If an organization is able to create an offering that satisfies the needs of poor consumers or low income workers by creating a brand that appeals to this market, then the marketing objective has been reached.
The consumer, be it a rich or poor consumer is the target of all marketing efforts. The consumer is placed in the center of the four major parts of the marketing mix: Product, Place, Price and Promotion (the four P's). Thus, if a company was to target poor consumers, they could create value for these consumers by utilizing any of these four P's to differentiate their product against a competitor’s product. The company could lower the price for a product that was of equal standard as a competitor to create value for the poor consumer; they could increase the quality of the product at the same price as a lower quality competitive product; they could distribute the product in a wider area to make it accessible to poorer consumers than their competitors and they could offer promotions or
MARKETING: Group 1
-------------------------------------------------
Case: Chandon, Pierre (2004). Unilever in Brazil: Marketing Strategies for Low-income Consumers (Question 1 a & b)
a) Discuss whether marketing and branding can create value for poor consumers.
Marketing is the performance of activities that seek to accomplish organisations objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client with the intention of making a profit.
Branding means the use of a name, term, symbol or design – or combination of these – to identify a product. It includes the use of brand names, trademarks and practically all other means of product identification. (textbook P 197)
Customer Value is the difference between the benefits the customer sees from the marketing offering and the costs of obtaining those benefits. If an organization is able to create an offering that satisfies the needs of poor consumers or low income workers by creating a brand that appeals to this market, then the marketing objective has been reached.
The consumer, be it a rich or poor consumer is the target of all marketing efforts. The consumer is placed in the center of the four major parts of the marketing mix: Product, Place, Price and Promotion (the four P's). Thus, if a company was to target poor consumers, they could create value for these consumers by utilizing any of these four P's to differentiate their product against a competitor’s product. The company could lower the price for a product that was of equal standard as a competitor to create value for the poor consumer; they could increase the quality of the product at the same price as a lower quality competitive product; they could distribute the product in a wider area to make it accessible to poorer consumers than their competitors and they could offer promotions or