Question 2. Examine the extent to which multi brand companies such as Unilever and General Foods find it easier to extend their products/brands than a single brand company such as Adidas or Nike do. Multi brand companies such as Unilever and General Foods finds it easier to penetrate in the market due to various reasons, which are associated with effective marketing…
There are various reasons, which lead to the effective marketing of certain brands than others in the same market. This paper looks at the reasons, which make certain companies such as Unilever, and Good Foods brands gain market dominance quickly than other brands such as Nike and Adidas. One main reason why companies gain market dominance quickly than other brands is the capital invested in the company. This is because these companies have enough capital obtainable to pay for set-up costs and any preliminary losses. These companies’ gains these funds from two main sources. This are from other departments of the company, such as Unilever getting the finance to fund its tea processing from the soap-manufacturing department, or in the other countries where the company has invested, such as a Unilever brand operating in the US borrowing money from a Unilever brand operating in UK. The first strategy of borrowing from a different department is known as diversification process and is usually associated with big companies. The second strategy is known as globalization of markets which results from pressures from competing companies in the same market. ...
een in history whereby the legislature enact laws which is a political strategy to develop the national economies that has provided critical protection and support to by creating barriers of entry into the market. Examples of political strategies used are the formation of many licenses, which a company has to fulfill in order to be allowed to operate in a given country. Moreover, some countries create barriers of entry in increasing the tax payable to the government by a foreign company. For instance, in Kenya, a company has to pay a tax of 30% of its total earnings in order to be allowed to operate in that country (Creamer & Neil, 2008, p.8). Furthermore, these companies benefit from excess demands, which surpass their supply. Unilever Company and Good Foods Companies deal with highly perishable goods and which are necessities. These goods enable the company to have regular demand since, for people to live they have to have the necessity as compared to the luxury goods produced by Nike and Adidas. The regular demand enables the company to have a high profit level allowing them to expand. Consequently, this company uses this profit to form a good base by investing in newer markets and developing brands, which will in turn make profit for them (Creamer, 2008, p.5). To buy a product from Nike and Adidas companies, a customer has to spend a lot of money as compared to buying a product from other sporting brands such as Puma and Umbro. By raising their products prices, these companies’ makes mistakes by becoming complacent thus allowing other big firms to develop and therefore undermine their position in the market. In addition, they allow other smaller companies such as Legea, to expand and therefore increase the competition (Hall & Mark, 2000, p.5). Besides, companies ...
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(Marketing Essay Example | Topics and Well Written Essays - 1250 Words)
“Marketing Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.net/other/9696-marketing.
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The Marketing Teacher (2000) cited Barwell to expound on the term by indicating that “the marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires” (Marketing Teacher, par.
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