Unilever, a producer of food, beverages, cleaning agents, and personal care products, outperforms competitors Procter & Gamble and L'Oral in emerging markets. Countries such as Pakistan, Indonesia, and Egypt have a large population living in poverty, yet Unilever was able to make significant gains in these countries. In 2018, emerging markets accounted for 60 percent of Unilever's sales compared to just 20 percent in 1990.

Infrastructurethe underlying foundation for modern life and efficient marketing that includes transportation, communications, banking, utilities, and public servicesis another important economic factor to consider when planning to enter a foreign market. An inadequate infrastructure may constrain marketers' plans to manufacture, promote, and distribute goods and services in a particular country. Recognizing that distribution could impact business in the Philippines, Unilever recruited larger retail stores to serve as sub-distributors to small, independently owned stores in the country. Owners from the larger stores receive discounts on Unilever products while the smaller stores benefit by getting access to more Unilever brands.

Another challenge that Unilever faced in the rural market was how to reach consumers in remote areas with limited electricity and little access to mass media. The company decided to look into a new, innovative way to reach consumers that involved cellphones. In India, Unilever used mobile technology to create audio entertainment for rural areas by adopting a common practice that would conserve talk time. The practice involved having mobile phone users dial a number, then hang up before they were charged, but the other person can see who called. Unilever used this practice in a promotion for its Active Wheel detergent. It asked people to call a number that cut off after two rings, so it cost nothing. Then, an automatic free callback provided some comic dialogue from a famous Bollywood star and ads for the detergent. In four months, the company got 16 million calls, and detergent sales tripled in the region.

Unilever using mobile technology to c audio entertainment for rural areas is impacted by which environment?

Technological environment

Political-legal environment

Social-cultural environment

Competitive environment

Assessment question

Unilever also recognized that lower-income consumers in emerging markets might not be able to afford Unilever products. As a result, Unilever offers single-use packets of their existing soap and shampoo products at a lower price than traditional sizes. This is an example of a _______ strategy.

straight extension

product adaptation

promotion adaptation

product invention

Assessment question

Procter & Gamble wants to increase its sales in India, so it decided to create its own advertising using cellphones. During the callback, Virat Kohli, a famous Indian cricket player, will have a fun dialogue with callers and promote Procter & Gamble's newest line of personal care products. What type of global force is this?

Economic environment

Competitive environment

Political-legal environment

Social-cultural environment