Sunday, September 8, 2019

Marketing plane Essay Example | Topics and Well Written Essays - 500 words

Marketing plane - Essay Example In addition, the Unilever top management believes that this sale would assist the company to focus more on its core objectives and to continue to deliver sustainable growth for the organisation. According to Kees Kruythoff, president of Unilever North America, â€Å"as we continue to shape our portfolio to deliver sustainable growth for Unilever, this change will give us the focus to drive growth behind our core foods portfolio† (qtd in Dornbrook). In addition, Unilever plans to generate 70% of its total sales from emerging markets by 2020. Probably, Wish-Bone is less likely to gain a wider market acceptance in emerging markets like China, India, or Russia. Therefore, Unilever decided to sell out its iconic brand to add value to its long term business goals. When Unilever sells their iconic brand, Pinnacle Foods has their reasons to buy it. First, the current market position of the Pinnacle Foods justifies the firm’s decision to acquire Wish-Bone. The company’s well recognised products are used by roughly 85% of the American households, and the organisation holds #1 or #2 market position in 10 of the 12 categories in which it operates. Hence it would be easy for the Pinnacle Foods to increase the American market share of Wish-Bone, which is already a leading salad dressing brand in North America. In addition, the planned acquisition supports the firm’s market expansion strategies. In the words of Pinnacle Foods CEO Bob Gamgort, â€Å"the acquisition of Wish-Bone is a perfect fit with our successful strategy of Reinvigorating Iconic Brands.† (qtd in Dornbrook). He adds that proposed acquisition would benefit the company to achieve cost synergies and to enhance its ability to provide consumers with better meal solutions and recipe ideas. The Pinnacle management also claims that Wish-Bone brand has ‘attractive margins’ and a strong cash flow. The top management thinks that its improved efficiencies on the

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