Presented By:

Amit Dodwani Durva Shastri

Lever Brothers

Margarine Unie

One Unilever

Flow of the presentation:

1. 2. 3. 4. 5. 6. 7. 8.

Introduction of the Company The Journey of Unilever Current Industry Data PESTEL analysis for the company SWOT analysis for the company Five force model for the company Core competencies of Unilever Companys Corporate and Business

Introduction
Created in 1930 as result of a merger Key player in the food and household products industry It is a leading FMCG company which oversees 270 manufacturing facilities across six continents, and its products are sold under 400 brand names across 14 categories of home, personal care and food products. Launched Path to Growth strategy (2000) to revive the company Historically grew through acquisitions

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

Journey of Unilever
1872:Two Dutch firms, Jurgens and Van den Bergh, begin commercial production of margarine 1885:William Hesketh Lever establishes soap factory in Warrington, marking the beginning of Lever Brothers

1927:Jurgens and Van den Bergh create dual-structured Margarine Union Limited and Margarine Unie N.V. 1929:Margarine Union/Margarine Unie merges with Lever Brothers to create Unilever, with dual Anglo-Dutch structure.

1937:Reorganization equalizes the assets of the Dutch and the British groups of Unilever; Thomas J. Lipton Company, U.S. manufacturer of tea, is acquired. 1957:Company acquires U.K. frozen foods maker Birds Eye. 1961:U.S. ice cream novelty maker Good Humor is acquired.

1978:Unilever acquires specialty chemicals company National Starch & Chemical 1984:Buying spree begins that will last until 1988 and result in about 80 companies being acquired; Brooke Bond, the leading European tea company, is acquired through hostile takeover

1994:The launch of a new laundry detergent in Europe turns into a public relations disaster when tests reveal that it can damage clothes under certain conditions 1996:Fundamental management reorganization is launched, including the replacing of the special committee with a seven-member executive

1999:Company announces that it will eliminate about 1,200 of its brands to focus on around 400 regionally or globally powerful brands 2000:Unilever acquires Amora Maille, the Slim-Fast and Ben & Jerry's brands, and Bestfoods

Current Industry Data: a comparison

Top Segment Top Brand CEO Stock per share Growth Revenues Revenue Growth International Business Segments Employees

CG/Foods Dove A. Burgmans $66.03 15.58% 42,942M -11.93% 100+ 3 234000

Consumer care Tide A.G. Lafley $53.76 9.25% 28.2 BL 19% 42 5 110000

Food Mac & Cheese R. Deromedi $30.70 8.2% $31,010 M 4.3%% 150+ 5 10600

Food Kit Kat P. Letmathe 66.90 11.23% $69 B -1.93% 86 6 253000

Indian Scenario

Company Name

Net Sales

Net Profit

Operating Profit Margin

(%) (%)

(in Rs. Crore)

Growth (%)

(in Rs. Crore.)

Growth (%)

FY'08

FY'08 FY'07

FY'08

FY'08

FY'07

FY'08

FY'07

HUL GCPL Dabur Colgate Marico Proctor and Gamble

13880. 1769.0 13.36 9.38 -4.65 31.76 14.95 14.74 56 6 891.92 17.22 16.05 148.12 21.37 0.68 22.27 2093.6 19.9 3 20

29.7 316.77 25.66 33.3 18.59 17.45

1518.8 14.03 16.02 231.71 44.66 16.4 18.09 18.79 8 1575.9 14.76 31.39 143.41 23.45 17.47 13.29 13.77 9 643.95 18.54 -4.98 131.42 46.3

-35.6 27.75 24.14

HULs SOAP MARKETSHARE

12 10 8 6 4
10% 9% 57% 55% 55% 52%

2 0

8%

8%

9% 5%

Click to edit Master text styles Second level Third level Fourth level Fifth level

PESTEL Analysis:
POLITICAL & LEGAL Developed & Developing Economy Free Market Economy & Less Government Intervention ECONOMICAL Cost pressure Inflation

TECHNOLOGICAL R&D Modern Technologies ENVIRONMENT Emphasis on Consumer Health & Safety Standard for Occupational Health and Safety Environmental Care (SHE)

S.W.O.T. Analysis

Strengths
Strong brand portfolio n Strong relationship with retailers n Large scale of operations n Diversified revenue streams nStrong position in most categories nUnmatched Distribution Network nStrong Focus on R & D activities nFocus on Sustainability nPresence across all price points
n n

Weaknesses
Dual leadership n Inefficient management of brands n Weak liquidity position nUnfunded Employee Post Retirement Benefits nWeak Performance in Western Europe

Opportunities
Changing consumer preferences n Increasing need for healthy Products Focus on developing and emerging economies. Personal Care is growing at higher pace in emerging markets
n n

Threats
Strong Competition n Increasing store brands n Tougher Business Climate n Exchange rates nExpanding in the out-of-home eating markets.

Five Force model of Unilever:

Threat from new entrants (Low) Threat of Substitutes (high) Bargaining power of Suppliers (low) Bargaining power of Buyers. (High)

Core competencies:
Agricultural Raw Materials Logistics network Food technology & nutrition Communicators

Corporate level strategy:

Anticipate the aspirations of the consumers and customers, and thus respond to their needs and wants creatively and competitively. Localize itself to cater the local people of the respective country in which they enter.

Cont
Confidence among the stockholders. Market leadership over a longer period of the time. Market Development rather than concentrating on market share of the industry

Business level strategy:

Focused differentiation : Range of differentiated products offered to differentiated segments of the market. This congruent to the core aspirations of Unilever.

International strategies:
Factors that push Unilever to global and local approach:
1.

Unilever does not retail under its own name. It uses brand name to illustrate diversity. Unilever modify its product, it makes sure each country retain the local brand. This is so because the company wants top keep standard built over the years. Unilever also has a strong relationship with customers based on the local culture and market. Legal factor.

2.

3.

4.

Marketing strategies:
PRICE: Value-pricing strategy and the company uses a similar outstanding value campaign across America, Europe and Latin America.

PRODUCTS: The brand names have a wide range of products and reputation of high quality products. Providing people with access to the best information about food and nutrition so they can make informed choices about their diet, which is vital to well being.

PROMOTION: Advertisements on T.V. Online advertisements Billboards

DISTRIBUTION: Through intermediaries which range from retailer large super stores. Wholesalers and various corner shops as well as off license stores on the streets of cities of various countries.

Boston Consultative Group Matrix

BCG Matrix:
Question Marks
Stars

Latin America

Asia +Pacific

Market Growth

Cash cows

Dogs

UK USA

Africa Turkey

Middle East

Question Marks Stars Best foods

Deodorants

Frozen

Market Growth

Anti- Perspirant

Cash cows

Dogs

Knorr Flora

Slim Fast

Implementation Strategy
A Brilliant marketing Plan counts for nothing if it is not implemented properly (Kotler 2000). Who does what Where do they do it When do the do it How do they do it

Some Facts
Global company with 50% of sales in D&E markets Unilevers top 25 brands contribute 75% of group sales Global market leadership in 7 of our 11 categories

Click to edit Master text styles Second level Third level Fourth level Fifth level

Thank You