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Universidade Catolica Portuguesa Faculdade de Ciencias Economicas Empresariais Corporate Strategy Unilevers ice drub brand Portfolio Students m atomic number 18 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 some data. Based on the Datamonitor grocery store Report 2006 (appendix 1), we were able to regard the total ice figure outs securities industry value of 2008.We made the choice to do the wrick for the year 2008 because the present year has not already ended. Thus it was except possible to calculate estimated value for 2008. Market value (212. 8-161)/4 = 12. 95 million per year 161 + (12. 95*2) = 186. 9 million in 2008 With the intention of studying Unilevers principal harvest-feasts, we had to crap into account snuggle (Unilevers badgest competitor). We chose one equal competitor for separately group of ic e fillings we persuasion were more(prenominal) 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 not choose posting Dor or Solero, we thought that its competitors were not as self-explanatory as the separates. We sham then that the grocery store piece of grounds from Unilever and Nestle were the same as in 2006 (appendix 3). These values will enable us to estimate market values for individually company and afterwards to calculate market shargons and values for each result. We determined the subdivision of the market in four subdivisions exceedingly premium, agiotage, Regular and Economy. The segments were chosen according to a price/quality symmetry for each mathematical crop we took into account ( extension 4).The varied market sh bes for each segment were estimated assuming that the super premium overlaps would be a market recessional with a down in the mouth part of the market the premium would be the or so part and regular and economy would bring in similar market servings only when smaller. Then, we estimated likewise proportions for the diametric 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 percentages are Unilever Economy 20% highly premium 5% Regular 15% Premium 60%The premium segment was divided in tierce 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(a) ice creams besides 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% Extreme 38% Trough the division of the market, we were able to attrisolelye to each p roduct the market share inner 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 produce 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 various(prenominal) competitor (Appendix 7). 4 5 Unilever Brand Portfolio ? Cornetto It is a premium product that is present in most of the restaurants and cafes in Portugal.Cornetto is a cash moo-cow and yours best seller and that is why we did not consider having a big growth rate. We assumed that this ice cream is already in the coveted place in the market for Unilever. Therefore the investments are not very(prenominal) noble and it has a big return. ? Magnum This represents the second best product of your company, also premium and with high sale s. However, it is a relatively young brand, only created in 1990, that unavoidably a higher investment than Cornetto to establish itself in the market.Strong investments in fresh products like the temptations or limited editions like 7 sins and selling & communication plans make this brand a star. ? Viennetta This is a premium product only change in restaurants and supermarkets therefore its market share isnt very big. Although the brand is old and as a take floor product it is very popular, not many state buy Viennetta because the take home ice cream market is smaller and most of the purchases are impulse. According to the lesson study on Global ice creamNestle goes on attack, the premium segment is growing up to 3% and since this brand is haven by everybody there isnt a great 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 good product because of its growth rate. ? Kids This cat egory integrates all the children directed products of your company, such(prenominal) as Perna de Pau, Super Maxi, Epa and Mini-Milk, which are cheap products fussyly 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 perplexity. The strong 6 investment that the competitors make on this category justifies why Ola is not the leader in it, making it a Dog but chill out 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 in the midst of it and its competitors because there isnt much space to evolve and innovate, therefore people wont see significant differences be tween the value of each brand. There is small investment in this brand and low revenues, and since it is combine in the regular ice cream segment its growth is small or even static, thus making it a dog 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 to that degree 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 lot of money in marketing campaigns to make the brand recognize by everyone and also in the research 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 gnarled 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 be a recent brand it is difficult to make people know the locations of the stores. Brand Portfolio Recommendations 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 promote 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 attach brand awareness and hit more customers. Having this in mind, instead of decreasing any brands, you should increase some and redress others. ? In addition we believe that your company should include low dilate products directed to people that want to enjoy ice cream but dont want the downsides of it.By providing these low caloric and low voluptuous products your company will be covering an important segment that are the women, that according to the Key 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 lord and personal related matters. Ben & Jerrys should create a new prototype of products with some versions of their best sellers in a low caloric route 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, possibly adopting a similar format to the magnum ice cream (ice cream on stick) and include this brand in the Ola selling points, thus compass 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 limit partnerships with other companies, such as confectionery brands and cartoon enterprises.Y ou could create a partnership with known confectionery brands like Kinder because it will benefit from the other companys brand recognition with little effort and reach this market segment with bump arguments to compete with Nestle. 8 ? On the other hand the company should make a research every six-spot month to determine which are the more popular cartoons at the atomic number 42 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 advancement 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 wellness 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 premium product in restaurants and supermarkets. Another idea to increase your brand portfolio is to create specifically 18+ products with alcoholic beverage 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 examine restaurants and supermarkets but also in bars and summer discos. 9 Appendixes Appendix 1 2006 Market Value harvest-feast Market share seminal fluid 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 10466four hundred0 24297000 10 Appendix 4 Segments Super Pr emium Premium Products Ben and Jerrys Magnum Cornetto Viennetta Regular Economic Calippo Ola kids Appendix 5 Unilever Market Share Amount 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 coke,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