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Unilever

In: Business and Management

Submitted By ffreile
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Introduction
Marketing strategy has evolved as an important feature for the strategic development and expansion of business in economies of large scale and emerging markets (Bang and Sharad, 2008). While the primary focus of companies remains to increase the profitability of organizations, marketing units face the challenge of converting non-customers into successful clients and users of their respective brands in order to obtain and retain their share of the market (Hamel and Prahalad 2002; Kim and Mauborgne 2005). Emerging markets of Asia and Europe offer strong growth potential to emerging market leaders like Unilever which have a range of consumer goods products from toothpaste to snacks and biscuits (Bloch, Shankar and Schaus, 2007). The power and potential of emerging markets can be gauged from the fact that they contribute to nearly fifteen percent of revenues to international brands like Unilever, a trend which is likely to continue (Bloch, Shankar and Schaus, 2007).
Think global act local
With the aim of succeeding, companies have adopted the new mantra of ‘Think Global, Act Local’. In order to compete with local brands, not only with regard to prices, but also to taste, Unilever develops flexible marketing strategies to market and distribute its products in local remote areas of emerging markets. For instance, Unilever devised and implemented a unique strategy for the marketing of its products in Indonesia, where infrastructure is poor, with the use of motorcycles to reach remote villages in Indonesia. This strategy enables Unilever to gain higher profit margins in developing nations and reduce the costs of their premium products in economies of scale.
Distinct Marketing Strategies in developing economies
Unilever is keenly aware of global strategies which it needs to adopt for the development and increase of local market for their brands,

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