Talking about SBU or Strategic Business Unit, what is the
meaning of SBU? To simplify the word SBU, Strategic Business Unit is how a
business company divides itself into several small units or brands depending on
the type or categories of its products. Each unit also has its own unique
strategy. The importance of doing SBU is that the company can select the best business
strategy for each product separately. Now, it is the time to relate SBU to
Marketing. How can SBU help Marketing?
Speaking of myself, I think that there are two major reasons to
support the idea that SBU is helpful in Marketing. Firstly, SBU can fade-out the
name of the company and then fade-in the brand of each product. This is a nice
way to put in your target customers' minds with pictures of your products.
Instead of focusing on the company name, SBU can increase the importance of each product’s
brand and image. Secondly, SBU makes marketers do the marketing easier. This
means that marketers can focus in each brand of the company. By doing this,
marketers will know where to market each product, what strategy should be used
in each brand, and who will be their target audiences for each product. Also,
marketers will be able to analyze and implement some strategies with more
effectiveness and more efficiency.
Let me give you an example that will help you understand the idea
of what I'm trying to say, the Unilever Thailand Company is a company that offers wide-range of products
for customers in Thailand; such as food and drink, soap, shampoo and conditioner, detergent,
dish-washing liquid, etc. Now, you will see that whenever you try to buy a product
of Unilever Thailand, somehow the picture of brands of Unilever Thailand's products will automatically appear in your
mind. To illustrate this, when you want to buy a deodorant spray, a picture of AXE
brand will automatically appears in your mind instead of the Unilever logo. Also,
when marketers of AXE analyze the market of AXE products, they will pick a
strategy that has been specially designed for their target audiences, which are
men. For example, AXE had launched many ads which try to convince its customers
that AXE deodorant spray can improve men’s attractiveness. As you can see in
the ads, many sexy women are used in the AXE commercial films.
good article... (y)
:)
Thanks Arrum :)
Very useful! I understand more about SBU.
Nice one!
Thanks kub P'Nutnida, It's really nice to know that my article is useful to someone else.