Text: International Business: The Challenges of Globalization



Video Title: International Marketing and Unilever’s BOP Strategy – Marketing for Global Success

Length: 6:40

Classroom Application: Instructors may wish to use this video as a springboard for an open debate about the pros and cons of global marketing strategies. In particular, the debate could focus on Unilever’s BOP Strategy. Some topics people on both sides of the debate could consider are the brand’s ethical and financial responsibilities, or the needs and desires of consumers in different markets.

Synopsis

This video offers a close look at what global marketing strategies are and how companies can best achieve success with them. As a case study, the video employs a tactic developed by the company Unilever called the BOP Strategy. The video examines this strategy closely, discussing what it entailed and how it succeeded. In addition, it provides background information on Unilever and provides a substantial overview of the company.

Discussion Questions

1. Which brands are part of the Unilever family, as mentioned in the video? What does the ownership of these brands reveal about Unilever more generally?

According to the video, Unilever includes the following companies: Lipton, Ben & Jerry’s, Axe, Dove, and Suave. There are actually 400 companies included in the family. This shows that the Unilever brand is wide-ranging and participates in many markets, such as food and drink products, bath and body products for men and women, and hair care products. This selection of companies shows the diversity and range of Unilever. Students could discuss where each of these brands fall in the market in order to gain a further understanding of what market share Unilever aims at (for example, with the possible exception of Ben & Jerry’s, these are not premium price point products).

2. What is “glocal”?

“Glocal” is a marketing term developed and practiced by Unilever. It is the combination of global and local strategies in the development of a larger global marketing strategy. Acting “glocally” has been a key element of Unilever’s success in international markets, according to the information provided in the video.

3. What strategy did the Indian branch of Unilever employ to address the BOP?

In this market, the company wanted to find a way to reach the consumers who had the lowest yearly income but who wanted to participate in consumerism and buy products nonetheless. According to the video, these people can only spend a little at a time, so they can only buy a little of a product at a time. So, the company is providing this market with innovations like the shampoo sachet: inexpensive, single-use instances of a desired product.

Quiz

1. According to the video, in what country did the Unilever company recently start marketing small amounts of iodized salt?

a. Ghana

b. India

c. China

d. Nigeria

Answer: a

Explanation: While Unilever initially introduced its iodized salt, called Annapurna, in India, it recently began selling it in Ghana to great success. Unilever sells Annapurna in small sachets—the sachets are so small that their cost is very low, which makes them affordable for the poverty-stricken citizens in Ghana who require the salt.

2. How much money does the Unilever company make annually?

a. nearly 10 billion Euros

b. nearly 20 billion Euros

c. nearly 40 billion Euros

d. nearly 60 billion Euros

Answer: c

Explanation: Unilever, which is described in the video as an Anglo-Dutch company, currently makes nearly 40 billion Euros per year.

3. According to the video, which of the following BEST describes a “global marketing strategy”?

a. the identification of customer needs

b. the pursuit of market opportunities abroad

c. a plan of action for global markets

d. an international advertising plan

Answer: c

Explanation: The information in the video reveals that a global marketing strategy is a company’s plan of action for global markets. It can include designating the needs and desires of customers, as well as the decision to pursue different options in markets across the globe.

4. What does the BOP in BOP Strategy stand for?

a. “Bringing the Product”

b. “Bottom of the Pyramid”

c. “Balancing the Price”

d. “Base of Production”

Answer: b

Explanation: The BOP in BOP Strategy stands for the “Bottom of the Pyramid.” It refers to the poorer nations on an international scale, which includes a population of nearly four billion. This is a challenging segment of the market to tackle because the people in it earn very little money per year. Unilever must employ different strategies for this section of the market than it does for sections like first world countries.

5. Suppose an American fast food company is hoping to expand to international markets. Which piece of advice might the Unilever team be MOST LIKELY to give them?

a. Find a balance between company tradition and the culture into which it is expanding.

b. Preserve your brand’s identity and name at all costs.

c. Make sure to translate all company literature and information carefully.

d. Expand to one country at a time so you can learn from your mistakes.

Answer: a

Explanation: Unilever, with its focus on the “glocal” (the global and the local), would be most likely to advise another company interested in expansion to find a balance between its own traditions and those of the culture into which it is expanding. In other words, the company would do well to preserve the most important elements of its brand but also find a way to integrate them with specific elements of the local culture it’s entering into.

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