Create a 17 page essay paper that discusses Unilever Marketing Strategy for CIF in China.
Unilever, one of the world’s leading FMCG companies, headquartered in London, offers products across several categories including foods, home, and personal products. Unilever’s strategic priorities are the developing and emerging economies. The company has a diversified product portfolio as well as a wide geographical reach which explains diverse revenue streams. It has a strong portfolio of over 400 brands. Approximately 49% of its revenues in FY2009 came from emerging economies. This gives the company the confidence to tap new opportunities in the existing emerging economies.
While Unilever has a strong presence in China as is evident from their sales figures between 2004 and 2007, they would like to introduce a new product in China – CIF dishwashing liquid. CIF provides consumers with greater flexibility and convenience and is sold in 51 countries around the globe. Asia is its fastest growing market and India is the largest. The interest in selling CIF in China is based on the growth figures in several categories in the FMCG sector. The Chinese FMCG market is expected to grow at a rate of 15% per year in the next 5-year period. The Chinese FMCG market enjoys a balanced development both in the food and the non-food categories.
Despite the growth in the FMCG sector in China fueled by strong economic performance and higher disposable income, the sector is fragmented and still developing. An in-depth study of the competitive environment and consumer demand in the respective FMCG sector has to be conducted to understand the dynamics of that sector. These would include and understanding of the price dynamics, trade distribution, and consumption patterns.