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How Unilever’s brands connect with consumers From soap to soup, Unilever markets a wide range of personal care products, foods and household cleaners under popular brands such as Dove, Bertolli,...

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How Unilever’s
ands connect with consumers
From soap to soup, Unilever markets a wide range of personal care products, foods and household cleaners under popular
ands such as Dove, Bertolli, Lipton, Lux, Axe (Lynx), Sunsilk, Surf and OMO. Two billion consumers buy its products every day, adding up to annual revenue of $62 billion. The Anglo-Dutch company constantly conducts research to learn more about what consumers want and need, identifying even seemingly small changes that can make a big difference in the daily lives of people worldwide.
One of the company’s most memorable marketing initiatives has been Dove’s ‘Campaign for Real Beauty’. Based on extensive consumer research into women’s attitudes and emotions, the campaign uses ads, YouTube videos, special events and other communications to counter beauty stereotypes and make the point that real beauty is more than skin deep. By linking its soap
and to messages reinforcing positive self-esteem for women of all ages, races, sizes and shapes, Dove has won the admiration and loyalty of consumers in many countries.
Unilever’s Ragú food
and has been courting parents with Facebook and YouTube communications that encourage ongoing conversations with marketers and among its
and fans. For example, marketers recently used the
and’s Facebook page (which has more than one million ‘likes’) to start a dialogue about getting children to eat. Its Facebook fans responded with dozens of additional ideas, which Ragú’s ad agency turned into helpful online videos that dish up tips with a sense of humour. Heavy use of social media is one way that Ragú aims to create an emotional connection with its customers and understand their ever-changing needs and interests.
Campaigns combining Facebook, YouTube, Twitter and special websites have helped Unilever market its food and personal care
ands to highly targeted segments such as Latin American families in the United States. Unilever’s http:
www.vivemejor.com, the Spanish-language website, and Facebook page provide
and-oriented recipes, coupons, holiday ideas, household hints and other information that Latino families can use. The company also holds Disfruita la Pasión de la Vida events outside supermarkets to attract and engage Latin American consumers. In planning such events, the company turns to its Multicultural Consumer Marketing Insights research team for guidance.
Unilever is looking beyond immediate acquisition behaviour to encourage healthy, environmentally sustainable behaviour all over the world. Through research, it has determined that the first step is to help consumers understand why they should do something (such as wash with soap to prevent the spread of disease). The next step is to show them how easy it is to take action (buy bars of soap and use them). Then, they must make the new behaviour desirable (washing can keep the family safe from germs). Next, it is important to make consumers feel good about doing this action (for themselves, their family and society). Finally, find a way to continue the behaviour over time (ask children to wash before every meal). With these five steps, Unilever has convinced millions of consumers in developing countries to adopt the healthy habit of washing their hands – promoting the company’s Lifebuoy soap
and at the same time.
Unilever also sells laundry products in developing nations where water is a scarce resource, yet consumers are accustomed to rinsing clothes several times to get them clean. To address both consumer needs and environmental issues, CEO Paul Polman explains, ‘We’ve put products out in the market – fa
ic softeners – that only need one rinse’. Even then, ‘consumers were still doing two or three rinses, so we had to be very creative in educating them,’ he says. Clearly, Unilever wants to build strong relationships with its customers by making sure its
ands are down-to-earth and ‘real’.
CASE QUESTIONS
1. How is Unilever applying its understanding of internal consumer processes in the psychological core to market its products?
2. Which of the four external processes in the consumer’s culture do you think have been the most important to the success of Dove’s Campaign for Real Beauty? Why?
3. Do you agree with Unilever’s decision to link its
ands with efforts to encourage healthy and sustainable behaviours? Explain your answer.
IKEA’s household appeal
No matter where you live, no matter what kind of household you live in – ma
ied with children, same-sex couple, single, single parent or just roommates – IKEA wants to be ‘your partner in better living’. The Swedish retailer rings up $33 billion in sales through 284 stores in 26 countries, offering stylishly designed furniture and quality housewares at affordable prices. In fact, IKEA continues to lower prices year by year on popular items so it can both attract new customers and stimulate repeat business, even among consumers whose household incomes are stalled or falling. Offering a range of goodbetter-best products widens the store’s appeal to consumers setting up new households, families getting ready for new babies, families where children regularly travel from one parent’s household to another and households that are buying on a limited budget. Also, consumers who might have bought IKEA’s top-of-the-line items now have more choices if they’re trading down to less-expensive products.
Shopping at IKEA is deliberately family-friendly. Many of its stores feature a play area where youngsters can be dropped off while parents
owse the store for adult or children’s furniture and make purchases without their children. The stores also are equipped with restaurants that serve Swedish-style foods for
eakfast, lunch and dinner and have high chairs for the youngest shoppers. When the IKEA store in Wednesbury, England, added a children’s play area and expanded the restaurant, it saw an immediate sales increase and found that the length of the average customer visit had doubled, to about four hours.
Yet not every family member looks forward to an IKEA shopping trip. For Father’s Day weekend in Australia, the IKEA store in Sydney set up a temporary Manland, a room where men could watch sports programming and play video games while their wives or girlfriends shopped. ‘Manland is the perfect solution for both the blokes who find shopping a chore and the ladies who are forced to drag their partners around,’ said IKEA’s PR manager in Australia. Although targeting singles and couples with advertising that appeals to their needs and wants is nothing new, IKEA was among the pioneers of mainstream advertisers to target gay couples. Its TV commercial showing two men shopping for furniture together caused a stir in part because the men were depicted as a committed couple. A recent – and controversial – billboard for IKEA in Italy features two men holding hands (and a shopping bag) under the headline: ‘We are open to all families.’ The ad goes on to say: ‘With us, you will feel at home. What we want to do is make life easier for everyone, every family, every couple, whoever they are.’
IKEA’s word-of-mouth reputation for quality and value gives the company an advantage in expanding to new markets. Before the first IKEA store opened in Bangkok, Thailand, the marketing manager acknowledged the presence of competition but also noted that many locals ‘have travelled a
oad or learned from friends about IKEA furniture’. In advance of this store opening, IKEA distributed one million copies of a special 16-page catalogue featuring items chosen specifically for the Thai market. IKEA’s full 370-page catalogue is available to consumers worldwide for ideas as well as for shopping. IKEA prints more than 200 million copies each year and makes the catalogue available online and via an app.
Consumers in the United Kingdom who use Facebook were recently invited to create a 3D IKEA bedroom on YouTube and click on items from the company’s catalogue to furnish it as they wish. IKEA adds the finishing touch by hanging photos from each user’s Facebook wall in the bedroom. ‘We want to be the experts in truly understanding people’s needs, wants and dreams to help them live a happier life at home,’ explains an executive. Of course, any merchandise chosen for the virtual bedroom can be easily ordered for delivery in the real world.
CASE QUESTIONS
1. The Manland experiment lasted only one weekend in one store. What are the marketing advantages and disadvantages of expanding it to other stores? Do you think IKEA should do more with this idea? Why or why not?
2. Would you classify IKEA’s products as suitable for conspicuous consumption, voluntary simplicity and/or compensatory consumption? Explain your answer.
3. IKEA’s ads targeting gay couples have drawn criticism as well as acclaim. What effect do you think such controversy has on the retailer’s image and appeal?
4. Why would IKEA continue to print millions of catalogues every year, while other retailers are eliminating printed catalogues in favour of online and instore shopping?

Microsoft Word - Ru
ic_Case Study Report_ECON 318_S13.docx
CASE    
 STUDY    
 REPORT    
 RUBRIC    
 
    
 
CRITERION    
  STRONG    
  AVERAGE    
  WEAK    
 
Identification    
 of    
 Main    
 
Issues/Problems    
 
Identifies    
 and    
 demonstrates    
 a    
 
sophisticated    
 understanding    
 
of    
 the    
 main    
 issues/problems    
 
in    
 the    
 case    
 study.    
     
 
Identifies    
 and    
 demonstrates    
 
an    
 accomplished    
 
understanding    
 of    
 most    
 of    
 the    
 
issues/problems.    
 
Identifies    
 and    
 demonstrates    
 
acceptable    
 understanding    
 of    
 
some    
 of    
 the    
 issues/problems    
 
in    
 the    
 case    
 study.    
 
Analysis    
 and    
 Evaluation    
 of    
 
Issues/Problems    
 
Presents    
 an    
 insightful    
 and    
 
thorough    
 analysis    
 of    
 all    
 
identified    
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includes    
 all    
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calculations.    
 
Presents    
 a    
 thorough    
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of    
 most    
 of    
 the    
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identified;    
 missing    
 some    
 
necessary    
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Presents    
 a    
 superficial    
 or    
 
incomplete    
 analysis    
 of    
 some    
 
of    
 the    
 identified    
 issues;    
 omits    
 
necessary    
 calculations.    
     
     
 
Recommendations    
 on    
 
Effective    
 Solutions/Strategies    
 
Supports    
 diagnosis    
 and    
 
opinions    
 with    
 strong    
 
arguments    
 and    
 well-­‐
documented    
 evidence;    
 
presents    
 a    
 balanced    
 and    
 
critical    
 view;    
 interpretation    
 is    
 
oth    
 reasonable    
 and    
 
objective.    
     
 
Supports    
 diagnosis    
 and    
 
opinions    
 with    
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easoning    
 and    
 evidence;    
 
presents    
 a    
 somewhat    
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sided    
 argument;    
 
demonstrates    
 little    
 
engagement    
 with    
 ideas    
 
presented.    
     
 
Little    
 or    
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and/or    
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solutions    
 proposed    
 to    
 the    
 
issues    
 in    
 the    
 case    
 study.    
     
 
Links    
 to    
 Course    
 Readings    
 and    
 
Additional    
 Research    
 
Makes    
 appropriate    
 and    
 
powerful    
 connections    
 
etween    
 identified    
 issues/    
 
problems    
 and    
 the    
 strategic    
 
concepts    
 studied    
 in    
 the    
 
course    
 readings    
 and    
 lectures;    
 
supplements    
 case    
 study    
 with    
 
elevant    
 and    
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esearch    
 and    
 documents    
 all    
 
sources    
 of    
 information.    
     
 
Makes    
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 but    
 
somewhat    
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issues/problems    
 and    
 
concepts    
 studied    
 in    
 readings    
 
and    
 lectures;    
 demonstrates    
 
limited    
 command    
 of    
 the    
 
analytical    
 tools    
 studied;    
 
supplements    
 case    
 study    
 with    
 
limited    
 research.    
 
Makes    
 inappropriate    
 or    
 little    
 
connection    
 between    
 issues    
 
identified    
 and    
 the    
 concepts    
 
studied    
 in    
 the    
 readings;    
 
supplements    
 case    
 study,    
 if    
 at    
 
all,    
 with    
 incomplete    
 research    
 
and    
 documentation.    
     
 
Writing    
 Mechanics    
 and    
 
Formatting    
 Guidelines    
 
Demonstrates    
 clarity,    
 
conciseness    
 and    
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ectness;    
 
formatting    
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writing    
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 of    
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Answered Same Day May 21, 2020

Solution

Shashank answered on May 25 2020
145 Votes
Assignment on Unilever and IKEA
How is Unilever applying its understanding of internal consumer processes in the psychological core to market its products?
One
and that been successful in maintaining their dominance over the time is Unilever Limited. This has been possible due to company efficiency in understanding of internal processes which are chain of internal changes that happens within individual. These psychological processes include motivation, perception, attitude and knowledge. The annual investment of Unilever in research and development is much higher than other organizations to explore about the changing needs and wants of customers. This has helped them understand small intangible changes that have been coming in the society and capitulate over the opportunities that competitors might not have been able to perceive. For example, the campaigns launched for the Dove
and has been promoted by extensive use of digital marketing tools and used it for specifically targeting their customers. This has been one of the big reasons for high success rate of their campaign of real beauty. The process used in campaigning the product made a deep impact as it was associated with the self esteem of women & their upliftment and changed the perception of
and. The ads focused on beauty is not judged on the basis of color of skin (a though that is prevailing in some parts of society) and insisted on the concept of real beauty lies within. The campaign got over long back but people can still recall it due to everlasting impact it caused in the psychological core.
For the
and Ragu, the customers were engaged from various social media platforms by inviting them to give their opinion on how they can make their children eat. The other users following Unilever on these platforms engaged by giving more ideas. The success can be seen here as the company was able to identify the problem that parents face and ran a campaign which can provide them a solution. This not only helped in marketing their
and but also created a hidden relationship within their mind. It is important to note that Unilever has given special focus to make an impact on emotional aspect instead of simply telling that how their product is the key to their problem. Similarly, for Latin American families the bond of
and with their customers was created by inviting them to try to use their products which can help in making their lives better. Special attention was given in creating a platform that was in their native language that provided them products. The bottom line here is in all the above campaigns the
and has focused on how they are making their lives better and tried to maintain a relationship with their customer which made a psychological impact. In other efforts they have been able to introduce methods to use products in easier way and that fits with environmental issues which makes impact on attitude part of individuals psychological core. The efforts that they have put automatically has helped in improving the
and image in the mind of customers and created a connect which pulls them back to
ands.
Which of the four external processes in the consumer’s culture do you think have been the most important to the success of Dove’s Campaign for Real Beauty? Why?
According to theory, the four external process in consumer’s culture include religion, ethnicity, reference groups and social class. The Dove’s Campaign for Real Beauty has been a huge success due their deep impact on the ethnic issue which has been prevailing in many parts of society across the world. Hence, the most important external process in consumer’s culture out of four is ethnicity. It is something that can be associated with the social group and is common among different nationality and cultural traditions. The key things that has been highlighted in the campaign is to make women comfortable with social norms by telling them that no rules apply for beauty of women, every women is beautiful by her own features and the real beauty lie within them. The idea achieved success as it questioned women notion of beauty across the nations. The participants experience was ground
eaking when they realized how beautiful they were which they didn’t think because of ethnicity issues. The cause that was picked up here started with the fact that only 2% of world women would describe themselves as beautiful. Other notions that were identified were 75% of women judged their beauty as average and half of them think they are overweight. It was largely concluded that beauty and physical attractiveness has become a social mandate for most of the women. The
and understood this very well and developed the campaign to spread the message that
eaks this stereotype. It became a big revelation for women as they got a chance to know themselves by leaving apart the social norms that prevail around them. Various online platforms were used to promote this campaign i
espective of any categorization. The purpose here was to reach to masses of women i
espective of their interest in the
and or the product. The message became viral on internet and influenced those who were not very interested in the
and. For those who are in race
eaking stereotypes in society promoted this campaign on their behalf. Women started connecting with the campaign and this helped them with their self esteem. The idea worked as it
ought a moment of self-realization for many women who associated this campaign with themselves.
Do you agree with Unilever’s decision to link its
ands with efforts to encourage healthy and sustainable behaviours? Explain your answer
In old era of marketing, company’s
and name does not used to be a marketing asset. It has been in recent times, when companies...
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