Marketing Function in FMCG Environment

Brand Building

The Role of Marketing in FMCG Environment

The FMCG market is particularly competitive

Category Leadership

Higher Investment

GreaterProfitability

Growth

The Role of Marketing in FMCG Environment

The KEY decision outputs recorded are:

Market definition / segmentation Where we will compete, where not and why

Category/Brand vision Our future intention of what we will be

Category drivers of value Where our growth will come from

Business goals Our business target, growth, share or margin

Brand/portfolio roles Positioning, roles and strategy for the total brand

portfolio (global and key regional / local brands)

Strategic actions The main strategic actions / objectives / by

channel or global strategic Customer

Detailed strategies / How we will win, through specific actions and

capabilities developing capability: innovation, communication,

HR, resource priorities, etc.

Targets / measures Metrics and milestones to track progress

What we will not do Must-stops and don’t starts

Team behaviour / culture How we will act as a team, our category culture

Key risks What might destroy our plans

Developing a Marketing Strategy for FMCG

Case Study:

Market

dynamics &

financial

returns

Profit

Turnover

Price

Volume

Value market size

Market growth

Volume market size

Value share

Volume share

Buying

behaviour

Penetration

Loyalty

Share of

purchase

Average

pack size

Purchase

frequency

6P's

(brand levers)Place

• Distribution

• Visibility

• Number of lines

• Share of staff

Proposition

• Consumer attitude

• Brand health• 360º comms• Brand

investment• ROI• Competitor

activity

Promotion

• ROI

• Depth of discount

• Number of promotions

• Compliance

• Competitor activity

Pack

• On shelf impact

• Variant diff’tiation

• Perceived quality

• Competitor impact

Price

• Price elasticity

• Competitor pricing

• Value pricing

Product

• Performance vs. claims

• Performance vs. competition

How familiar are you with the Unilever 6P‟s Model?

Completed 6Ps Detective Worksheet for „Magnum‟

case study

Who? What? When? Where?

‘Savvy seekers’

segment

• Switching to competitor Choc Snack brands

• Switching driven by competitor promotional activity

• All grocery retail, especially Tesco & Asda

Buying

Behaviour

WHY?

Place

• 65% distribution

Place

• No issues

Price

• Price not in line with premium positioning in the market

Product

• Superior chocolate quality in blind tasting

Proposition

• 90% aided awareness

• Falling Conviction score benefit?

Promotion

• Losing promotional slots to Cadbury

6P Brand

Levers

Volume in market

• Magnum volume down

• Market volume growing

Value in market

• Magnum value down• Dilution of category

profitability

Price in market

• Magnum at ‘Every Day Low Price’

• Magnum price 25% below Choc Snack segment price ceiling

Internal financials

• Margin hit if extra heavy promotions appear

Market Dynamics

& Financials

Surface Issue Magnum core variants losing share of multipacks market

Root Issue

Declining loyalty to Magnum amongst Savvy Seeker group due to stronger competitor promotional activity and perceived lack of Magnum unique benefits

Category/Brand Stewardship:

Cif – significant media investment

Redefine cream segment

and our leadership

Continue building

premium/trigger

segment

Enter and own new

specialist segments

Brand Building

Customer Marketing

Brand Development

Interrelations between Departments/Functions

Select any of Unilever active brands

and produce a Marketing Plan for a

New product (e.g. new Tea or new

Deodorant)

Contents of Marketing Plan can be

found in Handouts;

Award:

- possibility to win a “SHADOW DAY” within Unilever Marketing;

- possibility to get an Internship in Unilever Marketing; Deadline: June, 1st

Brief for a “Home Task”

E-mail to:

jevgenija.glazunova@unilever.com

Thank You

and Welcome to Unilever!

Are YouA

Brand Detective?