Marketing strategy and market value: an event-study analysis

Article Abstract:

Research into a marketing strategy employed by manufacturer Unilever demonstrates that negative events affect a firm's stock market value. Unilever launched a new laundry detergent Omo Power on the European market in 1994. Unilever's rival Proctor and Gamble claimed that the product was harmful to clothes. Unilever had to modify the product and launch an advertising campaign to regain consumer confidence. These events caused Unilever's stock price to fall by 9.45% in under five months, indicating that investors perceived the basic flaws in Unilever's marketing strategy.

Dry Household Organic Detergents, Prices and rates, Securities, Securities prices, Beliefs, opinions and attitudes, Investors, Detergents

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U.K. consumer test attacks Unilever's power detergent

Article Abstract:

A test undertaken by 'Which?,' the UK Consumers' Association magazine, indicates that Persil Power, the Unilever washing powder which has attracted a large amount of negative publicity, can still damage some clothes, even though it has been reformulated. The test showed 'significant levels od deterioration' in the strength of garments washed repeatedly in Persil Power. The Association is now calling on Unilever to place certain warnings on packs of the powder.

Soap Powders, Product information, Soaps

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U.K. group to build $30m consumer lifestyle database

Article Abstract:

ICD Marketing Services, part of Metromail Corp, plans to create an extremely large database on consumer lifestyles in the UK. It will do so by sending three national surveys to 24 million households over the next two years. The company emphasises that the database will be very beneficial to advertisers, giving extensive information about consumer profiles, interests, habits and purchasing behaviour.

Market Research, Planning, Market surveys, ICD Marketing Services

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