Dhanu Uniliver doc

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Unilever

Introduction

Unilever is multinational corporation which formed by Dutch and British companies jointventure. Unilever owns 400 brands worldwide and runs operations in 100 countries. Unilever

employed 174,000 worldwide and had revenue 40.5 billion Euros in 2008.

Unilever is dual listed company consisting of Unilever NV in Netherland, and Unilever PLC in

UK. But both companies have same directors and effectively operate as a single business.

In the 1890 William Hesketh Lever, founder of Lever Brothers wrote down his idea for Sunlight

Soap, his revolutionary new product that helped popularizes cleanliness and hygiene in Victorian

England.

Company changed its logo in 2004. Which represent the diversity of Unilever, Which contains25 signs and blue colour.This shows company identity expresses the vitality at the heart of our

brands, our people, and our values. Each icon within our logo represents an aspect of our

business, showing that we add vitality in everything we do.

Mission

Our mission is to add vitality to life. We meet everyday needs for nutrition, hygiene and personalcare with brands that help people look good, feel good and get more out of life.

Internal & External Analysis of Unilever

Unilever overall marketing strategy incorporates a few key aspects that help to define its position

in the large retailer market. These key aspects are:

Outstanding R&D development in technology and Innovative Marketing strategy.

Large range of goods in all departments, with a single important relation, that is quality.

A competitive pricing strategy that allows unilever to maintain its large customer base,while gaining an advantage with its high quality range of goods.

Best store layout and presentation that is in keeping with the overall branding strategy,

Unilever is the overall market leader in the world today because of it's technology , aggressive

marketing strategy and best customer service.



SWOT ANALYSIS

A research method which includes to consider about Strength, Weakness, Opportunity andthreats use for to know about company internal and external factors which could be have good or

bad impacts on company planning and then organization can plan its strategy how to tackle with

those factors.Strength and weakness are internal factors of the organization and Opportunitiesand threats are external factors of the organisation.

Strength

Unilever operates its operations nearly 100 countries in the world. And they also have 270

manufacturing sites worldwide.

Company has 400 brands all around the world. Most of the brands known as multinational

brands but some of them operate in some countries and company calls it local brands. 13

international brands have contribution in sales more than 1 billion Euros. And Unilever top 25

brands account for more than 70% of sales.

Personal wash: Lux, Rexona/Sure, Laundry: Surf, OMO, Persil, Skin care: Dove, Ponds, Hair

care: Sunsilk, Oral care: Close Up, Pepsodent, Deodorants: AXE, Lynx,Food and beverages:

Lipton, PG Tips,

Company spend huge amount on Research and development worldwide. In fiscal year of 2008

they spent 927 million Euros on R&D.

Unilever has 400 brands worldwide. But brands available in market are with different packaging

with different quantities

Weakness

Unilever has strong competition worldwide by multinational. E.g. P&G, Kraft, Nestle, etc

Unilever operates in 100 countries there are lots of substitute products available in the localmarket. And company charge higher prices for its products but the local products are much

cheaper.

Opportunity

Now a day's people like to eat healthy food which contains fewer calories and use those products

which will not harm their environment.

Now people are more aware about innovations because of the media. Company can use changing

life style and increase the demand of the products.



Now a day's new markets are emerging company can expand their business to cover these

markets. Like Russia, Iran, Iraq and Afghanistan.

Unilever can concentrate to increase production volumes and they can try to increase their

availability in the market. By increasing production volumes and availability it is possible to

achieve high demands of products.

Company needs to focus to move their production operations in undeveloped countries. Thanthey can find cheap labour and save money on operations and they can build a supply chain

towards expensive markets. Then their profitability will be high.

Threat

Biggest threat now days are recession. Most of the companies shut their operations or make

redundancies people losing their purchasing power. It has affect all over the world in thissituation coming times will be very crucial for company.

Peoples are very conscious about the environment. They don't like to buy products which can be

harmful for the environment. Company needs to focus on how to become environment friendly.

The chances of Global competition are growing. New companies are coming with innovation. If

Unilever wants to stay in market they need to focus on innovation to kill competition around the

globe.

New local products are introducing in the market. As the sizes of local companies are small they

have fewer expenses and when they provide cheap product they can grab the market share of Unilever easily.

If the government introduces any sort of law for tax or it introduce new limits for productionbecause the product is harmful for human use or natural environment. It will be very hard to sellout the product in the market.

PEST ANALYSIS

PEST is macro environmental scanning tool which is very helpful to scan environment. But the

model has been recently extended furthermore now it calls PEST analysis which provides moreefficiency towards scan the environment for future strategic planning.

PEST stands for Political, Economical, Sociocultural, Technological, Legal, and Environmental,and it is very useful tool for develop new planning.0

Political



Political and legal factors have huge impact on the business for develop new strategies. These

factors can affect, how company operates, its costs, and the demand for its products. It includes:

Political stability

TAX Regulation

Trade Regulation

Employment Laws

Environment Laws

Health and safety laws

The UK government supports the fair trading commitment for both the local consumers andforeign producers.

During the 1960 the political risks of emerging countries began rising. A number of countriesnationalized Unilever businesses. Governments restricted the payment of dividends and services

fees. As a result of harmful effect of nationalization policy, in the 1970's many US companies.

Unilever also disliked them, fearing knowledge leakage, loss of trademarks, and moral hazards

issues. However Unilever became a master at delaying tactics, using its extensive contacts and

goodwill in many countries to modify regulations, and generally bargain with governments.

Economical

Economic factor has major impact on how business operate and make decisions in the future.

This includes:

Economic Downturn

Interest rates Exchange rate

Inflation rate

UK is seventh largest economy in the world and third largest economy in Europe. During the

recession time UK is in its worse time. Companies are not doing new investments but doingredundancies that is why consumer markets are shrinking and peoples are losing their purchasing

power.Unilever market is becoming highly competitive especially in Europe. P&G is major

competitor in the Europe. And also there are so many discounters in the European marketresulting from EU free trade policy. It has very bad impact on Unilever profitability.

Sociocultural

Social factors include the cultural aspects and its influences vary region to region. This includes:

Life style

Age

Religion

Education



As Unilever is one of the largest FMCG Company in the world. Millions of people enjoy the

products of the company every day around the globe. It means company have huge impact on thepeople life style. It is a responsibility that company consider very seriously.Company invested 91

Million Euros in community programme worldwide in 2008.120 Million People reached by

Lifebuoy brand's hand washing programme in India since 2002.Four million children are reached

by Signal/ Pepsodent/ CloseUp/ tooth paste brands through school based oral health programmein 2008.Three quarters of the food products in our R&D pipeline bring specific nutritional or

health benefits.

Technological

Technology is necessary for the success for competitive advantage and is provide power toglobalisation. This includes:

R&D Activity

Informational Technology

New machines

Unilever is global leader in research and development, believing that powerful vitality based

innovations are crucial to delivering sustainable growth. In 2008 Unilever appointed first chief

research and development officer. 6000 plus R&D professional came together in one unifiedorganisation. Company spent 927 million Euros on R&D worldwide. And company also have

five laboratories around the world that explore new thinking and techniques to help develop our

products.

ANSOFF MATRIX

Market Penetration It means business creates new products or services to customer and modifying on existing

market. Unilever promotes their product and market. They need to develop their products.Unilever penetrates their market by introducing high price products comparing with their

rivals.

Product Development It means a business creates new product or service to customer and modifying on existing

market. Unilever emphasizes this strategy because they are always trying to develop their

products every year. Unilever also makes research for new FMCG with best R & D teams thatare very difficult to imitate in the market. In the past, they only served cities now they can

serve to even towns etc.

Market development Geographic expansion is very important in market development. In Unilever , there is a

lot of franchisee around the world. Therefore they target not only local market but alsointernational market.



Diversification

It means business creates new markets and new product and services . Unilever isnow introducing to the towns. And also producing new products with sensor technology that

can record distance walked , jogged and gives accurate results . By entering into sensor

industry , Unilever has doubled it's revenue in the world.

BCG MATRIX of Unilever Pvt. Ltd:

According to the Unilever Pvt. Ltd, the relative market share and market growth rates of

different products of unilever are given below:-

Name Relative Market Share Market Growth Rate

Brooke bond supreme 41% 45.03%

Knorr noodle 51% 29%

Lux 21% 29.15%Surf Excel 23% 27.37%

Lifebuoy shampoo 15% 85.03%

Rexona deodorant 2% 8%

BCG MATRIX Figure:

M a r k e t g r o w t h r a t e

High

low

Star

Broke bond su preme

Knorr noodles

??? Lifebuoy shampoo

Cash Cow

Surf excel

Lux

Dog

Rexona deodorant

High low

Relative Market Share



1. Surf Excel & Lux

The market share value of Surf excel and Lux are high and relative market growth rate of Surf

excel and Lux are low, that is why Surf excel and Lux are lying in BCG Matrix at Cash cowpoint.

2.Broke bond supreme & Knorr noodles

The market share value of Broke bond supreme and Knoor noodles are high and relative market

growth rate of Broke bond supreme and Knoor noodles are high, that is why Broke bond

supreme and Knoor noodles are lying in BCG Matrix at Star point.

3.Lifebuoy Shampoo

The market share value of Lifebuoy Shampoo is low and relative market growth rate of LifebuoyShampoo is high, that is why Lifebuoy Shampoo is lying in BCG Matrix at??? Point. At this

point, Company makes their investment on this product to get the point of CASH COW and

STAR in BCG matrix.

4.Rexona deodorant

The market share value of Rexona deodorant is low and relative market growth rate of Rexona

deodorant is low, that is why Rexona deodorant is lying in BCG Matrix at Dog point.

Conclusion

Unilever is multinational and one of the largest FMCG providers to the world. Company runs its

operations in 100 countries with 400 brands. Company operates 270 manufacturing sites with

174000 employees and generate 40.5 Billion Euros of revenue during the 2008.13 internationalbrands have contribution in sales more than 1 Billion Euros. And 25 top brands contribute for

more than 70% of sales. Company spent 927 million Euros on R&D worldwide in 2008.

Company has huge impact of political and legal system. And Unilever became a master at

delaying tactics using its extensive contacts and good will in many countries to modify

regulations and generally bargain with Governments.

Millions of people enjoy the products of the company every day and it is responsibility that

company consider very seriously.

Technology plays a vital role in company history. In 1930 when company became Unilever,

company continue to diversify. Company depends on natural environment for suppliers of raw

material and water. Sustainability is a business issue company is taking steps very seriously

towards friendly environment.

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