Marketing Mix Application of the 4Ps in the Launch of Gold from Flora


MarketingMix: Application of the 4Ps in the Launch of Gold from Flora Spreadby Unilever In 2014

MarketingMix: Application of the 4Ps in the Launch of Gold from Flora Spreadby Unilever In 2014

Marketingis a significant process that is intended to attract the attention ofpotential consumers. Companies use different tools to achieve theirmarketing goals. Marketing mix, which has three elements (includingthe product, price, placement, and promotion), is one of the mostcommon types of tools used to ensure that the product reaches thetargeted consumers (Okeudo, 2013, p. 155). This paper presents theanalysis of how Unilever applied the 4Ps of the marketing mix toattract the target consumers when launching Gold from Flora.


Goldfrom Flora is a unique type of butter that was manufactured byUnilever by blending plant-powered flora and butter. This type ofbutter was developed after observing the change in consumerbehaviors, where many people are going for healthy products(Brosekhan, 2013, p. 9). Gold from Flora has 30 % less saturated fatthan ordinary spreadable butter and 40 % less saturated fats than theblock butter that is produced by competitors (Glotz, 2014, p. 1). Theproduct was developed to satisfy consumer’s desire to reduce theamount of cholesterol intake. Gold from Flora was launched as astand-alone sub-brand, with a unique color scheme and packaging thatdistinguish it from other Unilever and competitor brands.


Theprocess of setting a price for any product or brand is based on theassumption that buyers will always weigh the benefits that they getfrom the product against the cost that they incur by purchasing it.Out of the four components of the product mix, it is only price thatcontributes towards revenue. Unilever uses three methods to set theprice for its products, which including a consideration of consumers’buying capacity, and the value attached to specific products.Unilever determined the price of Gold from Flora based on itsprestige and the value attached to each product in order to attach aprice to it. For example, Gold from Flora was high priced (£ 2.49per 400 g tube) compared to conventional types of spread because ofthe health benefits associated with low fat content (Glotz, 2014, p.1). This is consistent with the “expected price” strategy, wherethe company sets a high price depending on unique features and thequality of its products.


Theelement of &quotplacement&quot includes several functions,including transportation, storage, and making the products availableto customers. The main objective of Unilever has been to develop adistribution system that will ensure that the right product isdelivered to the target consumers, at the right time, and the mostconvenient place. By the year 2014 when Gold from Flora was launched,Unilever had an established supply and distribution chains that wasutilized to take the product to the most convenient retail storeswhere consumers could get it. In addition, Unilever has largewarehouses in different countries and market segments, where theproduct could be stored conveniently before being distributed tospecific retail stores. Due to its global presence and economies ofscale, Unilever had the opportunity to take Gold from Flora to bothdeveloped and emerging markets. In addition, Gold from Flora was alsoplaced online where consumers can review its properties fromUnilever’s website and buy it online from online retail sites, suchas Sainsbury’s (Sainsbury’s, 2016, p. 1).


Promotionstrategies are intended to facilitate the supply of information thatcan help potential customers make the buying decision. Unileverpromoted Gold from Flora as a product that protects consumers fromhealth conditions associated with excess ingestion of cholesterol(Glotz, 2014, p. 1). Unilever used two major strategies to promoteGold from Flora. First, Unilever carried out an intensive advertisingcampaign. In the European market segment, the company spent over £10 million on TV advertisement (Macleod, 2014, p. 1). Secondly, Goldfrom Flora was promoted online, where its health benefits anduniqueness compared to products offered by competitors were presentedto potential consumers. Therefore, the product was promoted onlineand offline.

Thesuccess of Gold from Flora since its launch

Goldfrom Flora was launched in early part of the year 2014, but Unileverexperienced a significant decline in sales of most of its products,where spreads were affected the most. This resulted in a significantdecline in sales of starting (Abdulla, 2014, p. 1). However, theperformance of all butters (including Gold from Flora) startedpeaking towards the middle of the same year (2014), where thecontribution of the butter towards the company’s annual revenueincreased by one percent following the onset of the advertisementcampaigns (Glotz, 2014, p. 1). Therefore, Gold from Flora has beensuccessful and its overall performance is reasonable.

ConclusionThe marketing mix is a significant tool that is used to determine thebrand’s or the product’s offer. The analysis of the Unilever’sGold from Flora indicates that the product has been successful in themarket. Gold from Flora was marketed as a product that takes accountof the health needs of the consumers by reducing the cholesterolcontent. The company could assign a higher price to the product,given its high quality and health benefits that could not be comparedwith the spreads offered by competitors. Unilever had an establisheddistribution network that made it easy to reach potential consumerswithout contracting other distributors. Moreover, the TVadvertisement and online marketing helped Unilever increase itsearnings from the Gold from Flora by reaching more consumers.


Abdulla,H., 2014. On the money: Spreads, ice cream top Unilever list of woes.AroqLtd.[Online]. Available at &lt[Accessed 23 June 2016].

Brosekhan,A. and Velayutham, M., 2013. Consumer buying behavior: A literaturereview. Journalof Business and Management,1, 8-16.

Glotz,J., 2014. Unilevergoes for Gold with new flora and bertolli butter blends.Crawley: Williams Reed Business Media, Ltd.

Macleod,I., 2014. Flora looks to hero its family-orientated personality inpounds 10 million ad campaign. CarnyxGroup Ltd.[Online]. Available at &lt[Accessed 23 June 2016].

Okeudo,G. and Margaret, N., 2013. The impact of marketing mix (4Ps) onwarehousing operations: Case study of Unilever Nigeria PLC. AmericanJournal of Business and Management,2 (2), p. 155-159.

Sainsbury’s,2016. Flora Gold Spread slightly salted 400g. Sainsbury’s.[Online]. Available at: &lt[Accessed 23 June 2016].