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Universidade Catolica Portuguesa Faculdade de Ciencias Economicas Empresariais Corporate Strategy Unilevers rubbish cream daub Portfolio Students Maria Ines Galhardo, n? 150106011 Claudia Filipe, n? 150106026 Ricardo Lloret, n? 150106111 Joana Rodrigues dos Santos, n? 150106123 Diogo Sousa, n? 150106125 In order to draw the BCG matrix, we started by collecting nearly data. Based on the Datamonitor foodstuff Report 2006 (appendix 1), we were able to calculate the total screwball creams merchandise value of 2008.We made the cho glassful to do the work for the year 2008 because the present year has non already ended. Thus it was scarcely possible to calculate estimated determine for 2008. securities industry value (212. 8-161)/4 = 12. 95 million per year 161 + (12. 95*2) = 186. 9 million in 2008 With the objective of studying Unilevers foreland harvest-homes, we had to take into storey nestle (Unilevers biggest contender). We chose one equal competitor for individually g roup of ice creams we thought were more important (appendix 2). Among all ice creams of Unilever, we focused on the ones that had a direct competitor in Nestle.This is why we did non choose Carte Dor or Solero, we thought that its competitors were not as obvious as the opposites. We assumed then that the market allots from Unilever and Nestle were the same as in 2006 (appendix 3). These values will enable us to estimate market values for each company and afterwards to calculate market shares and values for each product. We determined the division of the market in four sections tiptop gift, Premium, Regular and frugality. The shares were chosen according to a price/quality ratio for each product we took into account (Appendix 4).The different market shares for each segment were estimated assuming that the super premium products would be a market niche with a nonaged part of the market the premium would be the closely part and unconstipated and economy would energize stan dardized market shares but smaller. Then, we estimated too proportions for the different products we took into account. Both Unilever and Nestle have 2 different market shares since we assumed that they value different products in different segments. The personas are Unilever Economy 20% topnotch premium 5% Regular 15% Premium 60%The premium segment was divided in three different products with different proportions for Unilever and Nestle. Considering that we only studied one product in some segments, we considered the whole segment share for these ones and for the regular we regarded as to have other ice creams alike Calippo that we did not include (we took them into account as others). 3 Unilever Premium Viennetta 17% Cornetto 43% Magnum 40% Nestle Premium Tarte Carolina 19% Nestle 43% primitive 38% Trough the division of the market, we were able to belongings to each product the market share inside its own company.Splitting the different segments, we multiplied the total percentage of the segment to the share of each product inside this segment (Appendix 5). For the growth of each product, we assumed values based on the growth of each segment (Appendix 6). Finally, to calculate the relative market shares, we had to divide Unilevers market share for each product by Nestles market share for the single competitor (Appendix 7). 4 5 Unilever Brand Portfolio ? Cornetto It is a premium product that is present in intimately of the restaurants and cafes in Portugal.Cornetto is a ex assortment cow and yours outmatch seller and that is why we did not consider having a big growth rate. We assumed that this ice cream is already in the desired place in the market for Unilever. Therefore the investments are not actually high and it has a big return. ? Magnum This represents the second best product of your company, also premium and with high sales. However, it is a relatively young pit, only realized in 1990, that involve a higher investment than Cornetto to establish itself in the market.Strong investments in new products like the temptations or bound editions like 7 sins and marketing & communication plans ferment this brand a star. ? Viennetta This is a premium product only s old in restaurants and supermarkets therefore its market share isnt very big. Although the brand is old and as a take home product it is very popular, not galore(postnominal) people demoralise Viennetta because the take home ice cream market is smaller and most of the purchases are impulse. check to the character reference study on Global ice creamNestle goes on attack, the premium segment is growing up to 3% and since this brand is know by bothbody there isnt a outstanding need to spend many resources on it. Occasional new flavors were added, however without great success. Still, it is a cash cow and therefore a equitable product because of its growth rate. ? Kids This category integrates all the children directed products of your company, such(p renominal) as Perna de Pau, Super Maxi, Epa and Mini-Milk, which are cheap products specially directed to children with high levels of milk and calcium.It belongs to the economic segment, therefore, also according to the article mentioned above, the market growth is almost static. In this segment the competition is stronger, because Nestle makes associations with known brands such as Smarties and Kit Kat, appealing to kids attention. The strong 6 investment that the competitors make on this category justifies why Ola is not the leader in it, making it a frankfurter but still having recent investments and trying to have a bigger market share. Calippo This product represents the water-based products on your company, it is quite old and there is little differentiation between it and its competitors because there isnt much quadriceps to evolve and innovate, therefore people wont see signifi keistert differences between the value of each brand. There is small investment in this brand and base revenues, and since it is integrated in the regular ice cream segment its growth is small or even static, thus making it a cut through also. Ben & Jerrys This is your offer regarding the Super-Premium market segment, with high quality, high price ice creams with different flavors and colorful presentations. This brand is not yet very well-known and has a low market share because it targets a small market and it is yet in a phase of brand recognition. The company has to spend a bent of money in marketing campaigns to make the brand recognized by everyone and also in the look for to find new flavors.According to the case study this market segment is expected to grow up to 6% and all this makes this brand a question mark or a paradoxatic child. One problem for this brand in Portugal is that it is mainly sold in Ben and Jerrys own stores, which are not many and being a recent brand it is difficult to make people know the locations of the stores. Brand Portfolio Recommenda tions According to the BCG matrix your brand portfolio is well balanced, due to you having products in the different quadrants and in different stages of the lifecycle.Magnum, Cornetto and Viennetta are very profitable brands that support the less profitable brands of your company. However, it is not recommended to drop the other brands because your company needs to be 7 present in every segment in order to compete. This will increase brand awareness and reach more customers. Having this in mind, instead of decreasing any brands, you should increase some and castigate others. ? In addition we believe that your company should include low fat products directed to people that motivation to enjoy ice cream but dont want the downsides of it.By providing these low caloric and low fat products your company will be covering an important segment that are the women, that according to the signalize Note (page 53) are greater ice cream consumers than man, with increasingly focus on image not only in terms of self esteem but also on professional and personalized related matters. Ben & Jerrys should create a new range of products with some versions of their best sellers in a low caloric way trying to maintain their original flavor. The other brands should adopt the same outline and create at least one product with less calories. You should increase Ben & Jerrys market share and brand recognition to transform this problematic child in a star product. An idea can be to create a version of their ice cream for impulse consuming, perhaps adopting a similar format to the magnum ice cream (ice cream on stick) and include this brand in the Ola marketing points, thus reaching more consumers. ? Your companies Kids segment is not very well positioned and it is not the market leader. To change this situation it would be a good idea to arrange partnerships with other companies, such as confectionery brands and cartoon enterprises.You could create a partnership with known confecti onery brands like Kinder because it will benefit from the other companys brand recognition with little effort and reach this market segment with better arguments to compete with Nestle. 8 ? On the other hand the company should make a research every six month to determine which are the more popular cartoons at the moment and create a new product that offers prizes related to those cartoons. The basic product should be a high calcium ice cream that changes its packaging and prizes according to the research results.By doing this you will be captivating childrens attention that most of the time is only directed to the appearance and also their parents because you are offering an ice cream that is good for the kids health and growth. ? To access the Portuguese market it a good idea to create a new brand that sells ice cream with the flavors of some of the better recognized typical sweets in Portugal, such as doce dovos, arroz doce and pastel de nata. This brand would be sold as a premiu m product in restaurants and supermarkets. Another idea to increase your brand portfolio is to create specifically 18+ products with dipsomaniac deglutition flavors such as vodka, whisky and baileys with special focus on a regional beverage that is Oporto wine that is typically Portuguese. This product should be premium or superpremium and it should be sold not only on the usual channels such as fancy restaurants and supermarkets but also in parallel bars and summer discos. 9 Appendixes Appendix 1 2006 Market Value Growth Market share base Datamonitor Market Report 2006 2011 212,8 million 5,7% (2006-2011) 53,9% 161 million 4,3%Appendix 2 Unilever Ben and Jerrys Magnum Cornetto Viennetta Calippo Kids Outros Nestle Nestle Gelataria Nestle Extreme Tarte Carolina Pirulo Kids Outros Appendix 3 Unilever Market share Market value 0,56 Nestle 0,13 186900000 104664000 24297000 10 Appendix 4 Segments Super Premium Premium Products Ben and Jerrys Magnum Cornetto Viennetta Regular Economic C alippo Ola kids Appendix 5 Unilever Market allot enumerate of Sales () 5,00% 5. 233. 200 24,00% 25. 119. 360 25,80% 27. 003. 312 10,20% 10. 675. 728 5,00% 5. 233. 200 20,00% 20. 932. 800 10,00% 10. 466. 400 100,00% 104. 664. 000Ben and Jerrys Magnum Cornetto Viennetta Calippo Kids Outros Total Nestle Market share Amount of Sales () 8,00% 1. 943. 760 23,65% 5. 746. 240,5 20,90% 5. 078. 073 10,45% 2. 539. 036,5 6,00% 1. 457. 820 23,00% 5. 588. 310 8,00% 1. 943. 760 100% 24. 297. 000 Nestle Gelataria Nestle Extreme Tarte Carolina Pirulo Kids Outros Total 11 Appendix 6 Super Premium Premium Regular Economy Market Growth 6% 3% 1,50% 1,50% Source Datamonitor Market Report 2006 Appendix 7 Relative Market share Ben and Jerrys Magnum Cornetto Viennetta Calippo Kids Mean 0,63 1,01 1,23 0,98 0,83 0,87 0. 93 Market Growth 5,30% 2,90% 1,67% 1,90% 0,93% 1. 63% 2. 37% 12