Pricing Strategy Of Unilever
Firstly, the researcher would like to explain the background history of Unilever. Unilever was formed by the merger of the two companies Margarine Unie (Netherlands) and Lever Brother (UK). The name of “Unilever” came from the combing of these two company names. Over the next 10 years the company performed significant investment in Latin America, Africa, US and the UK- it could not perform in Europe due to World War Two. Company …show more content…
Unilever uses market penetration as its primary intensive growth strategy. In this strategy, the company improves its sales volume to increase revenues and business growth. For example, Unilever aggressively sells its product in current homecare makes of the United States and Canada. Bu using the differentiation generic strategy, Unilever successfully applies this intensive strategy by making its products more attractive and competitive than others. A strategic objective for this intensive strategy is to grow the business by making aggressive marketing Unilever products in the global consumer goods market.
For sustainable business growth, Unilever use product development as a secondary intensive strategy. The company uses this growth strategy by producing new products that consider consumers’ needs. For example, Unilever releases over time entirely new or new versions of personal care products to increase or maintain the company’s market share. This growth strategy stays in line with the company’s differentiation strategy. The strategic objective of growing the company with continuous product innovation is implemented by this intensive …show more content…
This intensive strategy emphasizes on building new businesses to grow the company. For example, Unilever acquires other businesses over time like the acquisition of the personal care business of Sara Lee Corporation in 2009-2010 to achieve diversification. By ensuring that Unilever’s acquired brands support unique features that attract target consumers, the differentiation strategy supports this growth strategy. A strategic objective of this growth strategy is to obtain growth by continuing the merger and acquisitions of company. Such activities strengthens Unilever’s extend in the global consumer goods industry.
Therefore, the overall combination of the generic differentiation strategy and intensive growth strategies are coherent with the Unilever’s purpose of making sustainable living commonplace and to grow the business sustainably and this combination ensure Unilever’s continuing success along time in its global operations.
5. Key Success Factors of