Question

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As for the marketing manager of Unilever Myanmar,

explain how you would deploy analytical tools (SWOT / PESTLE and Five Forces) of strategic marketing in relation to both the external and internal environment of your organization to synthesize, evaluate and develop appropriate marketing options.

Answer 1

Since Myanmar has been emerging nation, the global economic headwinds are major forces behind different analysis altogether clubbed with strong competition in FMCG space.

Five Forces Analysis:

Bargaining power of Suppliers - Many suppliers in this segments offer low cost products which means bargaining power is less for suppliers.
Bargaining power of buyers- Since Unilever operates either in perfectly competitive market or Oligopolistic market across globe, buyers have higher choices and hence higher power.
Threat of New Entrants- Since new entries from lowcost generic providers can eat up Unilevers share due to ease of taxation and licensing, threat is higher substantially.
Threat of rivalry between existing firms- This is comparatively very high as margins are wafer thin and innovation is constantly evolving making it difficult for the industry as whole.
Barriers to entry- Large initial investment, high marketing and distribution spends, constant innovation are biggest barriers.

Pestel Analysis :

Political - Myanmar is most errant markets with high taxation and compliance and warfare tensions with India, China and Bhutan and Bangladesh .

Economic - global economic degrowth and stagnant growth in mature markets is cause for worry.

Socio cultural - changing consumers preference and strong core culture is what Unilever has coped up with and reoriented itself across global markets to stay ahead of curve.

Technological - Wide-spread innovative solutions from competitors like Nestle, Proctor Gamble, GSK, Reckitt Benckiser have threatened Unilever and portfolios. However Unilever has been fast mover and easily stays ahead of curve with its unparalleled premium segment and upscale technologies which competitors match too lately.

Legal- arbitration and litigation based loss because of malfunctioning and lack of quality checks and also copyright infringement issues with P&G make it very cumbersome and difficult to deal with.

Environmental - the organisations has been keen ethical player and truly abides environmental laws.

Marketing Opportunities and Solutions Proposed based on SWOT analysis.

Strengths

Global brand image
Economies of scale and cost leadership
Highest patent growth
Innovation and design capability

Weakness

High dependent on OEM
Product cannibalization due to less differentiation
Focus majorly on high prices and premium segment

Opportunity

Tieups with generic brands and mom and pop stores
Focus on rural markets
Focus on low price segment
Focussing on diversified products like Ayurvedic segment

Threat

Generic products and hypercompetition
Uncertainty in government policies
High taxation
Retail markets collaboration with low cost players and private labels.