Marketing Strategy for Sunlight Soap from Unilever Company in Australia - Example

Marketing plan for Sunlight Soap Executive summary Sunlight soap is manufactured by Unilever Company in Australia. Many soap sales have been on decline in recent past. Just like other soaps, Sunlight Soap sales have declined and in some countries are no longer being sold in supermarkets. Sunlight Soap is a pure soap and is good for cutting out chemicals and reducing chemical sensitivity problems in peoples’ lives. This report describes a marketing plan for Sunlight Soap from Unilever Company in Australia. The plan proposes use of weekly newspaper and audio/visual advertisement as the major marketing tools. It is expected that the tools will enhance the brand value of Sunlight Soap. In addition the tools will help in maximizing sales of Sunlight Soap within Australia and maximize profits from Sunlight Soap sales. Introduction Sunlight Soap was the first soap to be manufactured by Lever Brothers factory which was later renamed Unilever Company (Univeler Company, 2010). The Sunlight Soap was first produced in 1884. The Lever Brothers factory was renamed Port Sunlight and it was the largest producer of soap in the world. After its initial production, Sunlight Soap spread to other countries worldwide. Sunlight Soap is used for removing stain, pretreatment of stubborn stains, hand washing and cleaning hard surfaces (Univeler Company, 2010). The soap has creamy lather and leaves the hands with a fresh smell. The first Sunlight Soap to be produced in Australia was in 1900 by the Lever Brothers factory established in Balmain, a suburb of Sydney in 1899. In this paper we write a marketing plan for the sunlight Soap from Unilever Company in Australia. Situational analysis of Sunlight Soap a. Internal factors Many soap sales have been on decline in recent past. Many people have stopped washing with soap and bars now only make up a half of the soap market (Aggarwal, et al, 2008). Just like other soaps, Sunlight Soap sales have declined and in some countries are no longer being sold in supermarkets. Many people have turned to costly liquid soaps and gel cleansers which are seeing double digit growth in their sales. Even the original maker of Sunlight Soap factory, Port Sunlight recently stopped making the bars (Baker, 2003). In Britain for instance, bars represent only 20% of sales of personal cleansers. In spite price cuts for bar soaps, the sales of bar soaps have continued to drop drastically in Australia (Davids and Newcomb, 2006). In spite the fall in sales, Unilever has continued to sell Sunlight Soap in Australia. The sales of Sunlight Soap in Australia are about one million packs per year. Sunlight Soap is a pure soap and is good for cutting out chemicals and reducing chemical sensitivity problems in peoples’ lives. The soap is also eco-friendly. b. External factors i. Micro-environment The soap industry is generally on the decline in Australia. Many customers are turning away from bar soaps and are buying liquid soaps and gel cleansers (McGrew and Brook, 1998). Efforts to cut prices for the bars have failed to spur sales of bar soaps. Sunlight Soap faces competition from other soaps produced by other soap companies in Australia such as PZ Cussons (Holdings) Pty Limited, Symex Holdings Limited and Huntsman Corporation Australia Pty. ii. Macro-environment There are regulations which govern the manufacture and sale of cosmetics soap included in Australia (Davids and Newcomb, 2006). Anyone involved in manufacturing and importation of soap for commercial purposes must register with NICNAS. Another regulatory body governing the sale and manufacture of soaps in Australia is ACCC. The manufacture and sale of soaps in Australia is also affected by the real household disposable income, real GDP growth and worldwide price of crude oil (Ruskin-Brown & Clarke, 2000). Thus the recent economic downturn that hit the world had negative impact on the sales of soaps in Australia Sunlight Soap included. The advent of online marketing have direct effect on the sales of soap since a company which can market and sale its soap products is able to reach a large number of people. SWOT analysis Strength of sunlight soap Sunlight soap is ideal for people who are sensitive to chemicals found in liquid soaps and gel cleansers Sunlight soap is a multipurpose soap which can be used for removing stain, pretreatment of stubborn stains, hand washing and cleaning hard surfaces The soap leaves the hands of the user with a fresh smell Weaknesses of sunlight soap Dislike of soaps by consumers Has not changed with trends of consumers Opportunities Increasing number of green consumers Advent of online marketing and sales Threats Competition from alternative products like liquid soaps and gel cleansers Competition from other soaps manufactured by other companies such as PZ Cussons (Holdings) Pty Limited, Symex Holdings Limited and Huntsman Corporation Australia Pty Economic downturn Fluctuating crude oil prices Target market and market segmentation The target market for this marketing plan is the green consumer in Australia and low income families in Australia. In this case the green consumer refers to people who buy green for health related reasons (Aggarwal, et al, 2008). They participate in the recycling and conservation of resources either directly or indirectly. Furthermore, these persons are actively involved in prevention of pollution and mainly consume organic foods. Most of these individuals have white collar jobs, have college experience and spent much of their income buying eco friendly goods. These people support environmental advocacy programs, buy green products, buy environmentally friendly products and make monetary contribution to support programs that protect the environment and reduce pollution (McGrew and Brook, 1998). These people are also characterized by cultural intuition, they frequent museums, are health conscious and love outdoor activities. Given that liquid soaps and gel cleansers are not pure and have chemicals which pollute the environment and can have long term harmful side effects to the body, Sunlight Soap will be presented as the best alternative for these target market (Backman and Butler, 2003).  Since Sunlight Soap is a pure soap product which causes no side effects to people who are sensitive to certain chemicals found in liquid soaps and gel cleansers, it will be easier to convince these lots of green consumers to take up the product. Our second target market will be low income families in Australia (Davids and Newcomb, 2006). These are families who have low purchasing power due to low income or large number of dependants. Most of these individuals are not highly educated and prefer products which are low priced but which can effectively serve their interests. Since Sunlight Soap is low priced and is effective for cleaning, it will be appealing to this group of consumers. The market will be segmented into rural inhabitants and urban inhabitants (Allred, et al, 2007). In the rural setting the product will target the low income families while in urban setting both low income population and green consumers will be targeted. In addition, the lack of strong perfume in the soap and low allergy associated with Sunlight Soap will be advocated for children aged bellow six years. Positioning Sunlight Soap will be repositioned as a green product which is pure and causes no chemical related sensitivity to the skin (Aggarwal, et al, 2008). As a green product Sunlight Soap, will be presented as a product of choice for those who care for the environmental conservation. The Sunlight Soap will also be promoted as a low priced product that is qualitative and effective for carrying out all cleaning chores. Objectives 1. To maximize sales of Sunlight Soap within Australia 2. To enhance brand image of Sunlight Soap within Australia 3. To maximize profits from Sunlight Soap sales Marketing mix strategies Marketing mix is a product of microeconomic theory. The marketing mix is also known as 4Ps. It is essential for translating marketing plan into action. It also aids in development of long term strategies and short term tactical programs. The mix also helps in differentiating the product from competing products (Aggarwal, et al, 2008). The functions of marketing mix include making it easy to market products and separating marketing activities from other activities of the firm; allowing delegation of marketing activities to specialists;  making the company competitive and essential for allocation of resources to different devices of marketing mix (McDonald, 1992). In spite the functions played by marketing mix, the 4Ps marketing mix has been under criticism for being internally oriented with no consideration of the consumer’s behavior. The customer is regarded as a passive player in the 4Ps marketing mix which discourages interaction that is essential for creation of relationships with customers (Backman and Butler, 2003). The mix also lacks theoretical content and does not allow personification of marketing activities. In spite these limitations; 4Ps marketing mix framework is still very strong tool for marketing. For a good and viable decision to be made in relation to a marketing strategy, a combination of 4Ps (product, price, promotion and place) should tally the needs of customers (McGrew and Brook, 1998). To be able to do this, an analysis of the preferences of customers in terms of attitudes toward competing products, the intensity of product use, product feature and price considerations (Allred, et al, 2007). a. Product Products must be able to provide benefits which enhance the situation of users. In our case Sunlight Soap is able to help green consumers continue with their efforts to conserve the environment. In addition, it is able to be used for all domestic cleaning purposes (Backman and Butler, 2003). Marketing strategies for products include new product lines, innovation, product line extension, changes or improvements of the products that exist, repositioning products and cost reduction. In the case of Sunlight Soap, repositioning strategy will be used. The soap will be repositioned as a green and affordable product. b. Price Price is the only flexible element of 4Ps marketing strategy that can be adjusted at any time. Firms which are able to offer competitive pricing strategy usually focus their efforts on increasing efficiency of processes which lower the cost of productions. Retailing businesses employ the low pricing strategy in most cases. Prestige pricing strategy is common in markets where quality is emphasized over price (Aggarwal, et al, 2008). Since our target market is a mix of low income and green consumers who are lovers of green products and have considerably stable income, both low pricing strategy and low pricing strategy will be employed. The soap will be packaged in such a way that it is appealing to both groups. In spite the need for prestige pricing efficiency in production lines will be improved to cut prices further while ensuring high quality of the soap. c. Promotion Promotional strategies are important in communicating the feature of the product to the target market. The Unilever Company will partner with environmental organizations to support their cause as it promotes the soap as a green partner. Advertisement via print and audio visual media will also be employed to promote the Sunlight Soap (Backman and Butler, 2003). The adverts will appear in daily newspaper and lifestyle magazines. Adverts will also be placed on several bulletin boards and billboards in major town in Australia and in rural areas. Websites addressing environmental issues will also be used to advertise Sunlight Soap. Colorful signs and banners will be used to promote the product in different events such as state fairs. d. Place This refers to the physical distribution and marketing channels (McGrew and Brook, 1998). Strategies for place include intensive distribution, exclusive distribution and selective distribution (Allred, et al, 2007). Unilever Company will partner with Coles supermarkets and Woolworths supermarkets to ensure that Sunlight Soap is accessible to our target market. Other small supermarkets will also be encouraged to stock Sunlight Soap. Online selling will also be employed by Unilever Company to sell the soap to our various consumers. Budget for three months Media Number Cost per media Total cost Newspapers 3 $325 $975 Television 3 $100,000 $300,000 Radio 10 $10,000 $100,000 Posters 100,000 $0.5 $50,000 Magazine racks 2000 $28 $56,000 Tote bag 40,000 $2.86 $114,400 Business cards 5,000 $0.5 $2,500 Event promotion 3 $7,000 $21,000 Internet budget   $1,700 $1,700 Support media   $69,640 $69,640 Total     $716,215.00   Implementation (action plans) The first step will involve assembling production requirements. This will include creative developments to be used in advertisement and promotional activities, still photography and music artists selection to be involved in the marketing campaign. The second step will involve media selection (Aggarwal, et al, 2008).  The advertisement Sunlight Soap will be distributed among three weekly newspapers, 10 major radio stations and three major television stations. The papers to be used have 100% market situation and are distributed allover Australia. The TV stations and radios to be employed will be based on their popularity in Australia with the most popular ones being chosen (Cook, 2008). The two forms of advertisement are chosen because they are more efficient in reaching a large number of people (McGrew and Brook, 1998). This will be supported by magazines, environmental internet sites and outdoor advertisement. Public relations will also be used since it is more credible source in the consumer’s mind (Allred, et al, 2007). Direct marketing will be employed and this will help in getting immediate feedback since it allows persuasion and selection of audience in addition to providing complex information (Weinstein, 2004). It will also allow creation of relationship with customers. Sales promotions will help change the perception among potential consumers of Sunlight Soap. For direct marketing purposes, online sales sites will be designed and adverts to be posted on different websites will also be designed (Backman and Butler, 2003). The company will also buy key word on Yahoo and Google to allow interactive marketing. Event marketing, deals and discount and event sponsorship will be used as tools for sales promotion (English, 2006). Since price is the most valued element in promotions, the price of Sunlight Soap will be emphasized as being the most competitive in the market. The Sunlight Soap will also be repackaged in more appealing packs to the youthful target market. The message: “stay green stay clean with sunlight soap”  will be printed on the pack to appeal to our green target market. Time line for marketing plan Activity Month   October 2010 November 2010 December 2010 January 2011 February 2011 Assembly of production requirement XXXXXXX         Media advertisement and other promotional activities   XXXXXX XXXXXXX XXXXXXX   Evaluation of marketing campaign     XXXXXXX XXXXXXX XXXXXX   Evaluation and control procedures Marketing operation entails thorough and end to end operational discipline which leverages guidance, metrics technology and processes to run the marketing function (Cook, 2008). This is essential in reinforcing marketing strategy. Many metrics for marketing evaluation exist. They include awareness, preference and customer satisfaction, loyalty purchase intent and repeat purchase rate. These matrixes can either use the bottom up attribution process or the top down attribution process (media mix) which allow comparison of performance of marketing and common performance matrix. The top down attribution process will be used to evaluate the performance of Sunlight Soap in the market (Aggarwal, et al, 2008). The evaluation process will be based on how well we reach the target market and attain our marketing plan objectives (Cook, 2008). First, we will analyze the response of consumers to our advertisements through various media to see the effectiveness of our adverts. Surveys at the events that we will be sponsoring and via telephone calls will be used analyze the effectiveness of our marketing plan (Backman and Butler, 2003). The stock turnover of the soap will also be evaluated to analyze whether our sales would have increased during the three month marketing period (McGrew and Brook, 1998). This will aid in the understanding of how effective the adverts and the product are. Conclusion and recommendation This report has designed a marketing plan for Sunlight Soap from Unilever Company in Australia. Weekly newspaper and audio/visual advertisement have been chosen as the major marketing tools. This is because the two forms have the ability to reach a large number of people efficiently in Australia. This will be supported by out door advertisement and other print media. In addition, sales promotions, internet advertisement and public relations activities will also be employed to attain the set objectives. The use of these marketing mix elements will help in realizing the marketing objectives set in the report. All the marketing tools are expected to complement each other throughout the campaign period that will take three months. It is expected that the tools will also enhance the brand value Sunlight Soap. Since no technical message will be included in the campaign tools employed, the chances of misinterpretation of the intended message is very low. Evaluation using top down attribution process will also be carried out throughout the campaign period to determine the effectiveness of the campaign. Reference Aggarwal, V., Koo, M., Lee, S. and Moon, C. (2008). Northeast Asia: Ripe for Integration? New York: Springer Publishers. Allred, A., Addams, H.L., and Chakraborty, G., 2007. ‘Is informal planning the key to success of the inc. 500?’ Journal of Small Business Strategy, 18(1): 95-104. Baker, M., 2003. The Marketing Book, 5th Ed. London: Butterworth-Heinemann Publishers. Backman, M. and Butler, C. (2003). Big in Asia: 25 Strategies for Business Success. Palgrave: Palgrave Macmillan Publishers. Cook, M. (2008). Banking Reform in Southeast Asia. London: Routledge Publishers Davids, M., and Newcomb, K., 2006. ‘Planning for marketing success: Turning the “Wheel,” Debt 3, 21(4): 22-25. English, J., 2006. How to Organise & Operate a Small Business in Australia: How to Turn Ideas Into Success, 10th Ed. Sydney: Allen & Unwin Publishers. McDonald, M.H.B., 1992. ‘Ten barriers to marketing planning,’ The journal of Business and Industrial Marketing, 7(1): 5-18. McGrew, A. and Brook, C. (1998). Asia-Pacific in the New World Order. London: Routledge Publishers. Ruskin-Brown, I. & Clarke, G., 2000. Marketing a Service for profit: A Practical Guide to Key Service Marketing Concepts. London: Kogan Page Publishers. Univeler Company. 2010. Home. Available at http://www.unilever.com/ Weinstein, A., 2004. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, 3rd Ed. London: Haworth Publishers. Read More