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MARKETING STRATEGY
MKT 5004
Assignment One
♦ Submission to: Daniel Chang
♦ Submitted by: Renee Tan (0005196)
♦ Due date: 29th 0ct 2005
♦ Words count: 3446
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TABLE OF CONTENTSTABLE OF CONTENTS
1 EXECUTIVE SUMMARY ………………………… 3
2 INTRODUCTION ………………………… 42.1 An Overview of the Malaysian Industry ………………………… 42.2 The Global Furniture Hub in Asia ………………………… 52.3 Current Major Market Player of Office Furniture in Malaysia … 62.4 Beau Poise Office Concepts Sdn Bhd ………………………... 7
3 INTERVIEW CONDUCTIONS ………………………… 73.1 Perspectives in Marketing Management ………………………… 83.2 Marketing approaches within Beau Poise ………………………… 83.3 Conclusion ………………………… 9
4 MARKETING PRACTICES ………………………… 104.1 Fragmentations of Marketing Practice ………………………… 104.2 Marketing Practices within Beau Poise ………………………… 10
5 MARKETING MANAGER ROLES & THE IMPACTS ………... 125.1 Roles of a Marketing Manager ………………………… 125.2 The Impact of the Manager Roles ………………………… 14
6 MARKETING COMPETENCIES ………………………… 156.1 Core Competencies within Beau Poise ………………………… 156.2 Competitors of Beau Poise ………………………… 166.3 Competencies Sustainability ………………………… 16
7 COMMENTS & RECOMMENDATIONS ……………………….. 187.1 Improvising of Marketing Practices ………………………… 187.2 Conclusion ………………………… 19
8 LIST OF REFERENCE ………………………... 20
9 RESOURCES ………………………… 23
10 APPENDIX I ……………………….... 27
11 APPENDIX II …………………………. 29
12 APPENDIX III …………………………. 30
13 APPENDIX IV ………………………… 31
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14 APPENDIX V ………………………… 32EXECUTIVE SUMMARY
No matter who you are, or where in the world you are, the chances are that our products
are a familiar part of your daily routine. Every day, around the world, people reach for
Unilever products.
Our brands are trusted everywhere and, by listening to the people who buy them, we've
grown into one of the world's most successful consumer goods companies. In fact, 150
million times a day, someone somewhere chooses a Unilever product.
Look in your fridge, or on the bathroom shelf, and you're bound to see one of our well-
known brands. We create, market and distribute the products that people choose to feed
their families and keep themselves and their homes clean and fresh.
People's lives are changing fast. As the way we all live and work evolves, our needs and
tastes change too. At Unilever we aim to help people in their daily lives. So we keep
developing new products, improving tried and tested brands and promoting better, more
efficient ways of working.
We have a portfolio of brands that are popular across the globe - as well as regional
products and local varieties of famous-name goods. This diversity comes from two of our
key strengths:
Strong roots in local markets and first-hand knowledge of the local culture.
World-class business expertise applied internationally to serve consumers
everywhere.
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Focusing on performance and productivity, we encourage our people to develop new
ideas and put fresh approaches into practice. Hand in hand with this is a strong sense of
responsibility to the communities we serve. We don't only measure success in financial
terms; how we achieve results is important too. We work hard to conduct our business
with integrity - respecting our employees, our consumers and
Source: http://www.unilever.com/ourcompany/aboutunilever/introducingunilever /
2. INTRODUCTION
2.1 History Of Uniliver Overview Industr
In the 1890s, William Hesketh Lever, founder of Lever Bros, 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'.
This was long before the phrase 'Corporate Mission' had been invented, but these ideas
have stayed at the heart of our business. Even if their language - and the notion of only
women doing housework – has become outdated.
In a history that now crosses three centuries, Unilever's success has been influenced by
the major events of the day – economic boom, depression, world wars, changing
consumer lifestyles and advances in technology. And throughout we've created products
that help people get more out of life – cutting the time spent on household chores,
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improving nutrition, enabling people to enjoy food and take care of their homes, their
clothes and themselves.
Source: http://www.unilever.com/ourcompany/aboutunilever/history/default.asp
Mission
Applies to the corporate and business unit levels By understanding its business, an
organization can take steps to define its mission, A statement of the organization’s scope,
Often identifying its customers
I. Markets,
II. Products,
III. Technology
IV. Values.
Source: http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
Vision
"To be the leading provider of goods and services all over the wold with satisfied
customers, shareholders and enthusiastic employees".
Source:http://www.unilever.com/ourcompany/aboutunilever/history/default.asp
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3. Marketing situation analysis of unilever
3.1 Linking Marketing And Corporate Strategies Of Unilever
Ben Cohen and Jerry Greenfield were grade school classmates on Long Island. In 1978
they headed to Vermont and eventually started Ben & Jerry's–a company that produces
dozens of flavors of ice cream, ice milk, and yogurt. Some of their early products and
flavors: Rainforest Crunch, Peace Pops, and Chocolate Cookie Dough ice cream.
They and their website have a creative, funky approach to business–linked to a genuine
concern for social causes. In fact, Ben & Jerry's contributes 7.5 percent of its pretax
profits to charity. But by the late 1990s Ben and Jerry concluded the company’s sales
were flattening and it needed additional financial resources to grow. So in 2000, Ben &
Jerry’s agreed to be acquired by Unilever, a huge multinational. Ben & Jerry’s would
operate separately from Unilever’s current ice cream business to preserve the company’s
legendary concern for the environment and social responsibility, and both cofounders
would continue their involvement. Because of intense competition, firms must
continuously revisit both marketing and corporate strategies, as Ben and Jerry have had to
do.
Source: http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
3.2 Growth Strategies: Where Do We Want to Go?
Knowing where the organization is at the present time enables managers to set a direction
for the firm and start to allocate resources to move in that direction. Two techniques to
aid in these decisions are (1) portfolio analysis and (2) market-product analysis
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The Portfolio of Businesses - BCG Analysis
Strategic Business Unit (SBU)
Characteristics of SBU's
Distinct mission Specific target market Control their resources Their own competitors
Single business OR a collection of related businesses Plans independent of the other
businesses in the organization Require a separate mission statement
Source:http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
SWOT ANALYSIS OF UNILEVER
Business Portfolio Analysis uses quantified performance measures and growth targets to
analyze a firm’s business units (called or (SBUs by BCG) as though they were a
collection of separate investments. This analysis has also been applied at the product line
or brand level. The SBUs are positioned on a growth-share matrix
Source:http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
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Stars Question marks or problem
children
High share of high-growth market
But may not generate enough cash Low share of high-growth markets
Requires a lot of cash to maintain
. Market,
Management must choose which
to invest in and phase out the rest
To support the star’s
Own demanding needs for future
Growth.
Cash cow Dogs
Dominant share of slow-growth market low share of low-growth markets.
Do not hold promise of becoming
winners for the firm.
Enables SBU to generate large amounts
of cash to pay company overhead and to
Invest in other SBUs.
Source: http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
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STRENGTHS:
Forces firm to assess each of its SBUs in terms
f relative market share and industry market growth rate.
Requires firm to forecast which SBUs will be cash producers and which will be cash
users in the future
Source: http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
WEAKNESSES
Hard to get the information needed to locate SBU on growth-share matrix.
Other important factors are missing from this analysis, such as possible synergies among
the SBUs when they use the same sales force or research and development facilities.
Hard to motivate people in an SBU labeled a dog or cash cow that is unlikely to get new
resources or provide opportunities for promotion
Source:http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
STRATEGIC MARKETING PROCESS:
Planning Phase - Step 1: Situation (SWOT) Analysis
I. Situation (SWOT) Analysis
II. Identify Industry trends
III. Analyze Company
IV. Research Customer
Source: http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
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THE SITUATION ANALYSIS
Involves taking stock of where the firm or product has been recently, Where it is now,
and Where it is headed in light of The organization’s plans The external factors andtrends
affecting it. An exhaustive study of the four areas in Step 1 of the planning phase:
Identifying trends in the firm’s industry. Analyzing the firm’s competitors. Assessing the
firm itself. Researching the firm’s present and prospective customers.
Source: http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
SWOT ANALYSIS
A short-hand summary of the situation analysis An organization’s appraisal of its Internal
Strengths Weaknesses External Opportunities Threats. SWOT analysis helps a firm
identify the critical factors affecting the firm build on vital strengths, correct glaring
weaknesses, exploit significant opportunities, Avoid disaster-laden threats
MICHAEL PORTERS’ FIVE FORCES ANALYSIS
Michael Porter is a leading authority on competitive strategy and the competitiveness and
economic development. His two seminal books ‘Competitive Strategy: Techniques for
Analyzing Industries and Competitors’, and ‘Competitive Advantage: Creating and
Sustaining Superior Performance’ have been hugely influential.
In them, he describes a concept that has become known as the ‘Five Forces Model’. This
concept involves a relationship between competitors within an industry, potential
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competitors, suppliers, buyers and alternative solutions to the products or problem being
addressed.
Two things determine a company's profitability - the industry in which it competes and
its strategic position in the industry. Some industries have inherently low profit potential
while others are highly profitable. The most profitable companies have a strong
competitive position in a highly profitable industry. The poorest companies have weak
positions in weak industries.
Porter's Five Forces are:
Buyers'/customers' power
Suppliers' power
Rivalry among competitors
Threat of new entrants
Threat of substitute products
Source: www.strategy4u.com
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SOURCES OF POWER IN THE FIVE FORCES MODEL
Buyer power
Number of buyers relative to sellers
Product differentiation
Switching costs to use other product
Buyers’ profit margins
Buyers’ use of multiple sources
Buyers’ thread of backward integration
Sellers’ threat of forward integration
Importance of product to the buyer
Buyers’ volume
Supplier power
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Supplier concentration
Availability of substitute inputs
Importance of suppliers’ input to buyer
Suppliers’ product differentiation
Importance of industry to suppliers
Buyers’ switching cost to other input
Suppliers’ threat of forward integration
Buyers’ threat of backward integration
Rivalry among competitors
Number of competitors (concentration)
Relative size of competitors (balance)
Industry growth rate
Fixed costs vs. variable costs
Product differentiation
Capacity augmented in large increments
Buyers’ switching costs
Diversity of competitors
Exit barriers
Strategic stakes
Threat of new entrants
Barriers to entry
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Economies of scale
Product differentiation
Capital requirements
Switching cost to buyers
Access to distribution channels
Other cost advantages
Government policies
Incumbants’ defence of market share
Industry growth rate
Threat of substitute products
Relative price of substitute
Relative quality of substitute
Switching costs to buyers
Source:www.manyworlds.com
PROBLEM OF UNILEVER NEW CURRENCY PROBLEM OF EUROPE
A recent report by the accountants Grant Thornton International claims that over one
third of European businesses have not yet begun to upgrade their systems to be euro
compliant. With the deadline fast approaching, Finance Line spoke to members of
Unilever's treasury to find out how they are preparing and how the euro will affect their
business. & quantify you traveled around the world you would find homes across all
continents where people used Unilever products. In fact in many countries it would be
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hard to find homes without Unilever products. & quota; So says the Unilever marketing
material. The company has operations on all continents, hundreds of subsidiaries and
thousands of suppliers. So what exactly does the introduction of the euro mean for the
treasury department of a company operating on this scale?
Source:http://www.trema.com/solutions/
UNILEVER EURO PROJECT
Unilever started its project to prepare for the euro nearly three years ago. The
organization's large number of subsidiary companies presented many extra considerations
and a higher workload than many other companies are facing. The treasury employs over
30 people and is involved in nearly all market activities - foreign exchange, interest rate
management, cash management, investments and funding. Unilever has two parent
companies, Unilever NV and PLC, of which NV will immediately adopt the euro for
Treasury operations. Consequently all Treasury transactions will use the euro as the base
currency. Unilever NV will also net payments in euro. Unilever PLC will continue to use
sterling. Gerard Tuinenburg, Treasury manager back and middle office for Unilever,
says, & quot;We act as an in house bank for our European subsidiaries and the euro
presents many opportunities and challenges. At the end of last year we started addressing
our cash management requirements. From a basic cash management perspective many of
our tasks will be much easier. For each subsidiary we will only need to have one euro
account instead of multiple currency accounts. & quota;
Source: http://www.trema.com/solutions/
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ENCOURAGING THE USE OF THE EURO
From a payments perspective Unilever is not requiring third parties to invoice in euros
but internal invoices will all be generated in the new currency. Unilever is consulting all
of its third parties and encouraging them to use euro but not stipulating that they must.
Tuinenburg continues, & quot;All the banks we deal with, including non participant
member state banks, want to see us using the euro & quota. Initially the treasury lacked a
lot of information regarding what needed to be done in order to prepare. By attending
seminars and generally raising the level of information in the department, key issues and
changes became clearer in terms of what operational changes would be needed.
Tuinenburg points out that obviously much of the work is system related but stresses, &
quot;We have been working with Trema to ensure we have everything covered.
Essentially this has meant being involved with system planning, specification and
training. From a personal perspective I spend roughly 25 percent of my time on the
project although testing and training obviously takes longer. All our instruments will be
re-denominated as from 1 January 1999 & quota. Funding decisions will not be changed.
Unilever will issue commercial papers in euros unless there are differences in local
markets that present arbitrage possibilities. From an accounting perspective Unilever will
initially deal with two denominations, the guilder and the euro. From 1999, it will plan in
euro and as per 2000 the external reporting will change to euro
Source: http://www.trema.com/solutions/ .
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TRADING OPPORTUNITIES
Tuinenburg comments, & quot; From a liquidity perspective, a single currency will
obviously make things easier. Investment activities for instance will change as certain
instruments will become more prominent in euro, such as credit or asset backed notes. &
quota; & quot;We feel that 'euro land' is going to present many new, interesting
possibilities. As the financial market gets bigger, so it will become more efficient and
transparent. If we have the need to issue bonds or carry out a substantial financial
activity, whereas previously we may have looked to the US market, we will now have a
sizeable financial market on our doorstep. Of course, we may have to use local markets
and comply with local regulation as long as these are not yet harmonized, but we expect
the euro market will give us a depth compared to the US market. & quot;
Source: http://www.trema.com/solutions/
A NEW SUBSTANTIAL MARKET
Anon Kamphuis, Treasurer Parent & Holding Companies, sees the creation of a large
new financial market as probably the main benefit presented by the euro. &
quot;Basically we are looking forward to the development of a large capital and money
market from which we can either withdraw or invest large amounts if necessary. The size,
liquidity and further deregulation of the market present the major opportunities. The ease
of settlements and the possible development of the new clearing systems will be
beneficial. There will also be opportunities for savings resulting from the elimination of
exchange rate differences and removal of exposures will make business decisions easier.
& quot; He continues, & quot; we also see a major risk. The euro market may come
under intense pressure from financial and political sources. We have to bear in mind that
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the European Central Bank may take some time to build up credibility. From a political
perspective the member countries all move at different paces and a common interest rate
may pose problems. There is an issue as to whether this common rate will work.
Ultimately I suppose the threat is that there is a breakdown of the new system. & quot;
Transition presents Unilever with a big workload. As 1999 approaches more information
is becoming available about conventions and regulations in the new market but there are
still many fundamental unanswered questions. Kamphuis gives an example, & quot;Will
Euro-Libor or Euribor become the benchmark standard? There has been a wealth of
information available to us but the difficulty has been to assess which is the right
information. Many of the answers are simply not known. The banks, for instance, can talk
conceptually about how it will be but they certainly can not show anything working yet.
Effective cross border payment mechanisms, for example, still have not been developed.
& quot; When asked to sum up the treasury's attitude towards the euro next year,
Tuinenburg is confident, & quot;In general, I could say that there might be a problem
with the length of the transition period. It may be too long, which could present problems
with rounding and conversion. But in general rearranging cash management across
Europe will make our lives easier. & quot; Tuinenburg and Kamphuis are confident that
Unilever will be adequately prepared, & quot; we put a lot of faith in our systems
suppliers but yes, we expect we will be ready. & quot;
Source: http://www.trema.com/solutions/
.
SOLVE THE PROBLEM
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Term offers two distinct solutions tailored to the varied needs and operational
complexities of today’s treasuries:
The Term Suite: is a versatile treasury & asset management suite that supports the
widest range of instruments and functions, in a single integrated, yet open and modular
system. It delivers unprecedented ROI by providing companies with immediate visibility
and control, and easy compliance throughout the enterprise. The Trema Suite Version 7
includes a new instrument framework enabling faster instrument implementation and has
unique support for structured products helping borrowers to lower their funding cost. A
new global accounting support and parallel accounting framework facilitate the
compliance with evolving accounting standards. It also introduces a Commercial Lending
Module (CLM) with dedicated features to manage the whole lifecycle of commercial
loans.
The Trema Suite™ can also be used by banks and financial service providers to provide
complete corporate treasury services to their customers on a secure, cost effective and
scalable platform.
Source: http://www.trema.com/solutions/
The Richmond Suite is an effective corporate treasury solution that is quick to install,
easy to use, maintain and yet delivers best practice in one cost effective package. It
encompasses everything a mid-sized corporate treasury requires to manage its daily
processes, including cash management, deal administration, risk management and
accounting.
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The Richmond Suite can be deployed on the desktop or over the web and is available in
ASP mode. It comes with a powerful task scheduler which can automate, time, and
sequence many workflow processes, including the import or export of data to and from
other systems.
Source: http://www.trema.com/solutions/
Conclusion
With the interview conduction, it is affirmed that in Beau Poise, products were developed
in response to different segmented target market, for the designers and architects in terms
of pricing, function and flexibility with a comprehensive range of the system furniture. In
today’s turbulent business environment, and with numerous competitors, marketing
management and approaches are increasingly important and it is the key to the business
by providing excellent CRM with the support of PRM to gain market shares, attracting
and retaining profitable customers with the value of satisfaction of the customers.
Market-ing is the soul, not just one part of the body in any organization. Therefore,
everyone in an organization should be a marketer. [Kotler, Kartajaya, 2003, p. 1, 2]
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List of Reference
web reference
1. http://www.unilever.com/ourcompany/aboutunilever/introducingunilever
access date: 25/11/2005 10:55 pm
2. http://www.unilever.com/ourcompany/aboutunilever/history/default.asp
access date: 22/11/2005 08:25 pm
3. http://www-rohan.sdsu.edu/~renglish/370/notes/chapt02/
access date: 23/11/2005 11:38 pm
4. www.strategy4u.com
access date: 18/11/2005 11:20 pm
5. www.manyworlds.com
access date: 25/11/2005 10:48 pm
6. http://www.trema.com/solutions/
access date: 21/11/2005 12:33 ap
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Appendix I