Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the world’s consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs nearly 180,000 people and had worldwide revenue of almost €40 billion in 2005.
Unilever is a dual-listed company consisting of UnileverNV in Rotterdam, Netherlands and Unilever PLC in London, England. This arrangement is similar to that of Reed Elsevier and that of Royal Dutch Shell prior to their unified structure. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Patrick Cescau is Group Chief Executive, who will retire at the end of 2008. Mr Paul Polman will succeed Patrick Cescau as Group Chief Executive. The company is widely listed on the world’s stock exchanges.
1.2 Origin of report
Since practical orientation is an integral part of the BBA program, I tried to expose real life performance of Uniliver by preparing this report.
To prepare this report I have come across with different information of the Uniliver.
From the collected information I understand the company’s activities in the market as Uniliverll as in their internal preparation for marketing and others activities.
I expect that this report will fulfill the requirement of BBA program and provide a clear idea about the Uniliver activities and other multi-national company’s effort in the Bangladesh.
Thus, Uniliver can get deep understand of actual situation of MN’s company’s activities by analyzing their exposed strategy .
This Study is intended to analyze marketing strategies used by Unilever Bangladesh Ltd and globe.
The main purpose of the study is to find what strategies the company uses to market its products and brands worldwide; the positive and negative aspects of those strategies.
The report further analyzes the position of Unilever Bangladesh Ltd and globe in the several industries in comparison to its competitors.
- To know about Uniliver and Uniliver Bangladesh.
- To develop SOWT analysis of Uniliver Bangladesh.
- To know about Uniliver’s strategy regarding product, price,place and promotion.
- To identify the segmentation,targeting and positioning strategy used by Uniliver Bangladesh.
- To develop some recoendation for further improvement in Marketing strategy of Uniliver Bangladesh.
1.6 Methodology of this report
For accessibility and availability of information I have chosen to work on the Marketing strategies of Unilever Bangladesh Ltd and globe. As the company operates in the market with a huge number of products in different industries, I have decided to focus on one of their world wide successful strategy on providing data. Most of the information used in this report is from secondary sources. The main source of information was the Uniliver’s website. In addition information will be collected from focus group discussion,depth interview and survey.
- Face to face conversation with the Uniliver’s people
- Customer opinion collection through survey.
- Collection of data related with Customer satisfaction through survey.
- Miscellaneous Book Reading.
- Annual Reports of Uniliver
- Various types of Website
- Different research report.
- Different Newspapers, Articles, Journals and Publication.
I have collected data from 5 upper level employee through depth interview and 100 Customer for survey.
- In case of survey simple random sampling was used .
- In case of depth interview snowball sampling was used.
I used Microsoft excel to analyze the collected data and get the proper meaning.I used also graph,picture to show and analyze the data.
For accessibility and availability of information I have chosen to work on the strategies of Unilever Bangladesh Ltd and globe. As the company operates in the market with a huge number of products in different industries, I have decided to focus on one of their world wide successful strategy on providing data. Most of the information used in this report is from secondary sitces. The main sitsce of information was the Uniliverbsite. In addition information was also collected from focus group discussion.
To conduct this study sheer experiences are needed. But I have lack of those.
- The Data was not available about company.
- Without practical work experience it was difficult to do work.
- Confidential information are not exposed in Bangladesh.
- It was difficult to gather sufficient information due to limitation of time.
- It was also difficult to obtain proper information from respondents because of their busy schedule.
- Lack of Money
After all within time limited it is not possible learn and understand all the activities of MN’s company like Uniliver.
Overview of Uniliver
Unilever at a glance
(NYSE: UN) (Unilever N.V.)
(NYSE: UL) (Unilever PLC)
London, United KingdomRotterdam, Netherlands
|Key people||Michael Treschow|
Lord Simon of Highbury
|Products||See brands listing|
|Revenue||€44,262 million (2010)|
|Operating income||€6,339 million (2010)|
|Net income||€4,598 million (2010)|
2.1 History & Growth
Unilever is a British-Dutch multinational corporation that owns many of the world’s consumer product brands in foods, beverages, cleaning agents and personal care products.
Unilever is a dual-listed company consisting of Unilever N.V. in Rotterdam, Netherlands and Unilever PLC in London, United Kingdom.
This arrangement is similar to those of Reed Elsevier and Royal Dutch Shell prior to their unified structures. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Paul Polman is Group Chief Executive.
Unilever’s main international competitors include Nestlé and Procter & Gamble. They also face competition in local markets or product ranges from companies such as Beiersdorf, ConAgra, Danone, General Mills, Henkel, Mars, Inc., Pepsico, Reckitt Benckiser and S. C. Johnson & Son.
Unilever was founded on 1 January 1930 by Antonius Johannes Jurgens, Samuel van den Bergh and William Hulme Lever, 2nd Viscount Leverhulme.
The amalgamation of the operations of British soap maker Lever Brothers ,William Hulme Lever and Dutch margarine producer Margarine Unie, Anton Jurgens en Samuel van den Bergh, a merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities.
The initial harvesting of palm oil was from the British Uniliverst Africa, from where news reports seen back in England shoUniliverd the workers abroad in favorable conditions. In 1911 the company received a concession for 750,000 hectares of forest in Belgian Congo, mostly south of Bandundu, where a system of forced labor operated. The subsidiary of Lever was named “Huileries du Congo Belge”. During the great depression in the thirties, the Huileries sharply decreased the fee for gathered oil nuts, while the government of Belgian Congo strongly increased taxation. This resulted in social unrest in 1931, which are known as the Revolution of the Pende, in which eventually more than 400 members of the Pende-tribe were killed.
In the 1930s the Unilever business grew and new ventures were launched in Africa and Latin America. In 1972 Unilever purchased A&W Restaurants’ Canadian division but sold its shares through a management buyout to former A&W Food Services of Canada CEO Jefferson J. Mooney in July 1996.By 1980 soap and edible fats contributed just 40% of profits, compared with an original 90%. In 1984 the company bought the brand Brooke Bond (maker of PG Tips tea).
In 1987 Unilever strengthened its position in the world skin care market by acquiring Chesebrough-Ponds, the maker of Ragú, Pond’s, Aqua-Net, Cutex Nail Polish, and Vaseline. In 1989 Unilever bought Calvin Klein Cosmetics, Fabergé, and Elizabeth Arden, but the latter was later sold (in 2000) to FFI Fragrances.
In 1996 Unilever purchased Helene Curtis Industries, giving the company “a powerful new presence in the United States shampoo and deodorant market”. The purchase brought Unilever the Suave and Finesse hair-care product brands and Degree deodorant brand.
Global employment at Unilever 2000–2008
Black represents employment numbers in Europe, light grey represents the Americas and dark grey represents Asia, Africa, and Middle East. Between 2000 and 2008 Unilever reduced global workforce numbers by 41%, from 295,000 to 174,000. Note: Europe figures for 2000–2003 are all Europe; from 2004 figures in black are Western Europe. For 2004–2008 Figures for Asia, Africa and Middle East include Eastern and Central Europe.
Source: Unilever Annual Reports 2004, 2008
In 2000 the company absorbed the American business Best Foods, strengthening its presence in North America and extending its portfolio of foods brands. In April 2000 it bought both Ben & Jerry’s and Slim Fast.
The company is multinational with operating companies and factories on every continent (except Antarctica) and research laboratories at Colworth and Port Sunlight in England; Vlaardingen in the Netherlands; Trumbull, Connecticut, and Englewood Cliffs, New Jersey in the United States; Bangalore in India (see also Hindustan Unilever Limited); and Shanghai in China.
The US division carried the Lever Brothers name until the 1990s, when it adopted that of the parent company. The American unit has headquarters in New Jersey, and no longer maintains a presence at Lever House, the iconic skyscraper on Park Avenue in New York City.
The company is said to promote sustainability and started a sustainable agriculture programme in 1998. In May 2007 it became the first tea company to commit to sitscing all its tea in a sustainable manner, employing the Rainforest Alliance, an international environmental NGO, to certify its tea estates in East Africa, as will as third-party suppliers in Africa and other parts of the world. It declared its aim to have all Lipton Yellow Label and PG Tips tea bags sold in Western Europe certified by 2010, followed by all Lipton tea bags globally by 2015.
Unilever’s Lipton brand
Covalence, an ethical reputation ranking agency, placed Unilever at the top of its ranking based on positive versus negative news coverage for 2007.
In 2007, Unilever’s Dove “Evolution” video that ran only online, was named the first ever non-tv spot to win the Grand Lion at the Cannes Advertising Festival. And in March, 2008, Unilever was named “Digital Marketer of the Year” by Advertising Age.
In 2008 Unilever was honored at the 59th Annual Technology & Engineering Emmy Awards for “Outstanding Achievement in Advanced Media Technology for Creation and Distribution of Interactive Commercial Advertising Delivered Through Digital Set Top Boxes” for its program Axe: Boost Yits ESP.
On 25 September 2009, Unilever decided to acquire the personal care business of Sara Lee Corporation: leading brands such as Radox, Badedas and Duschdas strengthened category leadership in Skin Cleansing and Deodorants.
On 9 August 2010, Unilever signed an asset purchase agreement with the Norwegian dairy group TINE, to acquire the activities of Diplom-Is in Denmark, as of 30 September 2010.
On 24 September 2010, Unilever announced that it has entered into a definitive agreement to sell its consumer tomato products business in Brazil to Cargill.
On 27 September 2010, Unilever purchased Alberto-Culver, the maker of personal care and household products such as Simple, VO5, Nexxus, TRESemmé, and Mrs. Dash for $US3.7 billion.
On 28 September 2010, Unilever and EVGA announced that they have signed an agreement under which Unilever will acquire EVGA’s ice cream brands (amongst others, Scandal, Variete and Karabola) and distribution network in Greece, for an undisclosed amount.
On 23 March 2011: Unilever announced that it has entered a binding agreement to sell the global Sanex business to Colgate-Palmolive for €672m. Unilever also announced that it has entered into a binding agreement to acquire Colgate-Palmolive’s laundry detergent brands (Fab, Lavomatic and Vel) in Colombia for US$215m.
2.2 History & Growth in Bangladesh perspective
Unilever Bangladesh is a company that has its own history intrinsically built with the development of its nation and its culture. It has been part of the Bangladeshi household since the 19th century with the same intention of bringing cleanliness and convenience to households as Uniliver do today. Back then Sunlight soap was marketed through Lever Brothers India limited throughout the undivided India. Later on, Lever Brothers Pakistan limited started its operation in Bangladesh on a larger scale. In 1964, its soap manufacturing facility was setup in Kalurghat, Chittagong.
With time it gradually evolved and diversified into manufacturing personal products like skin care creams, toothpastes, shampoos, detergent powders, and so on. Accumulating manufacturing experience over 40 years, Uniliver has a legacy of leading the market with international brands offered at affordable prices. Today, with 13 different brands in 8 different categories, Unilever Bangladesh stands as one of the most progressive partner in development for the Government of Bangladesh.
Productions started off with Sunlight soap and Lifebuoy soap. After the war of independence in 1971, Bangladesh became an independent country. At this time, Lever Brothers Bangladesh Ltd. was constituted with Unilever owning 60.75% shares and the Government of Bangladesh owning the remaining 39.25% shares.
Post liberation period evidenced accelerated growth for the company. Demand started rising and the company continued its mission to meet consumer needs by producing quality soaps, introducing Lux – the beauty soap and Wheel. Launched in 1972 Wheel entered the merchandised laundry category, traditionally dominated by cottage soaps. It appealed to the consumers with unique care benefits for hand and fabric, a generic weakness in cottage soaps. It gradually became the secret ally of Bangladeshi women by extending the caring hand to ease her daily laundry chores.
The early eighties witnessed expansion of the company through diversification. Calibrating direction, the mission now included enhancing quality of life through other personal products aspiring aestheticism like sparkling white teeth, fresh breath, beautiful hair, and glowing skin. A Personal Product Plant was established to manufacture shampoo, toothpaste, and skin care creams. Sunsilk Shampoo, Closeup Tooth paste, Fair and Lovely for skin care and Vim for dish washing was produced and marketed to bring great international and regional formulations to Bangladeshi households at affordable prices. 1989 heralded the beginning of a fairy tale story – the initiation of LUX photogenic contest that brought the real life experience of glamits, fame and fortune to the doorsteps of young girls throughout the country.
In the early 90’s Unilever Bangladesh entered the tea-based beverage market introducing Lipton Taaza, Lever’s flagship packet tea brand, with the objective to be the most preferred tea of the Bangladeshi consumers. World renowned Pond’s cream and Pepsodent – the dental hygiene expert began to be manufactured from its Kalurghat factory. Washing drudgeries of the busy homemakers were washed away with the introduction of Wheel washing powder and Surf Excel for premium wash. In 1996-1997, its manufacturing facility owned and run by a third party was set up outside Dhaka for wheel washing powder. With formulations suitable for local conditions, the washing powder concept brought about a huge revolution in fabric washing habits in the country.
These are the golden years in the history of Unilever Bangladesh as the company turned around from severe losses due to competitive backlash – to a company with 6 years of consecutive growth. Around the end of November 2001, its new personal products factory “Sankalp” in Kalurghat started production which helped us meet the market needs from a shift on its dependence on soaps to diverse personal grooming categories.
This is also the era when Unilever Bangladesh introduced many exciting new products such as Pond’s face wash to end soap related facial skin woes or Lipton double chamber tea bags for more zest in its tea cups and the markets responded enthusiastically. In 2001, Uniliver brought about a new excitement in the kitchen care sector with the introduction of Vim bar, the dish cleaning soap – a concept of convenience and common household habits combined together.
In 2002 Rexona deodorant entered the market building in awareness about body odits problems and creating a new personal grooming habit in the country. The company’s soap formulations changed radically during this time to bring in world class standards – without any price rises. Lifebuoy, the health brand has moved from just the hard-working men’s soap to reminding one, of the bond of love that binds a family in a healthy circle, free of germs and sickness. In 2004, as a new variant, bringing in the goodness of Neem – an Ayurvedic medical marvel, Lifebuoy has reinstated its earnest endeavits to be ahead of consumer’s needs.
In the span of these six years, Uniliver gathered many accolades (link to awards page) to certify its fast paced move towards world class performance. Unilever Bangladesh had a jitney towards adding new impetus to its trade marketing and today its products are available in 90% of the households in Bangladesh.
In a company wide move to come out from behind the great brands and be known as Unilever worldwide, Lever Brothers Bangladesh limited officially changed its name to Unilever Bangladesh in December 2004.
2.2.1 Unilever Bangladesh (core information)
Over the last fits decades, Unilever Bangladesh has been constantly bringing new and world-class products for the Bangladeshi people to remove the daily drudgery of life. Over 90% of the country’s households use one or more of its products. Unilever Bangladesh is a Fast Moving Consumer Goods company with local manufacturing facilities, reporting to regional business groups for innovation and business results.
Unilever – 60.75% shares, Government of Bangladesh – 39.25%
Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal Grooming, Tea based Beverages.
Unilever Bangladesh Brands
Wheel, Lux, Lifebuoy, Fair & Lovely, Pond’s, Close Up, Sunsilk, Taaza, Pepsodent, Clear, Vim, Surf Excel, Rexona, Axe, Dove, & Vaseline.
The Company has a Soap Manufacturing factory and a Personal Products Factory located in Chittagong. Besides these, there is a tea packaging operation in Chittagong and three manufacturing units in Dhaka, which are owned and run by third parties exclusively dedicated to Unilever Bangladesh.
2.2.2 Key Dates:
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
beginnings of Lever Brothers.
1908: Jurgens and Van den Bergh pool their interests.
1914: Lever begins producing margarine at the request of the British government.
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.
1930: Special committee is established as a board of directors over the British and Dutch Unilever holding companies.
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.
1944: The U.S. toothpaste brand Pepsodent is acquired.
1957: Company acquires U.K. frozen foods maker Birds Eye.
1961:U.S. ice cream novelty maker Good Humor is acquired.
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.
1986: Company acquires Chesebrough-Pond’s, its largest purchase to date.
1989: The acquisition of three companies, including Fabergé Inc., makes the company a major player in the world perfume and cosmetics industry.
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 committee.
1997: Specialty chemicals operations are sold to Imperial Chemical Industries PLC for about US$8 billion.
1999: Company announces that it will eliminate about 1,200 of its brands to focus on around 400 regionally or globally poUniliverrful brands.
2.3 Corporate Objective
The purpose of Unilever is to meet the everyday needs of people—everywhere anticipate the aspirations of company’s consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life.
Company’s deep roots in local cultures and markets around the world are its unparalleled inheritance and the foundation for company’s future growth. The Unilivr will bring it’s wealth of knowledge and international expertise to the service of local consumers–a truly multi-local multinational.
Company’s long term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously.
Uniliver believe that to succeed requires the highest standards of corporate behavior towards its employees, consumers and the societies and world in which it exist.
This is Unilever’s road to sustainable, profitable growth for its business and long-term value creation for Uniliver shareholders and employees.
2.4 Vision, Mission & Goals
Unilever products touch the lives of over 2 billion people every day – whether that’s through feeling great because they’ve got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.
The fits pillars of Uniliver vision set out the long term direction for the company – where its want to go and how it is going to get there:
- It work to create a better future every day
- It help people feel good, look good and get more out of life with brands and services that are good for them and good for others.
- It will inspire people to take small everyday actions that can add up to a big difference for the world.
- It will develop new ways of doing business with the aim of doubling the size of its company while reducing its environmental impact.
Uniliver has always believed in the power of its brands to improve the quality of people’s lives and in doing the right thing. As its business grows, so do its responsibilities. Uniliver recognize that global challenges such as climate change concern us all. Considering the wider impact of its actions is embedded in its values and is a fundamental part of who it is.
Uniliver mission is to add Vitality to life. It meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.
In the last five years, it has built its business by focusing on its brands, streamlining how Uniliver work, and improving its insight into the evolving needs and tastes of consumers. Now Uniliver are taking the next step in simplification – by aligning its selves around a clear common mission.
Uniliver recognize that the world in which Uniliver operate is changing. Consumers are increasingly bringing their views as citizens into their buying decisions, demanding more from the companies behind the brands. They want companies and brands they trust.
Unilever embraces these new expectations. Its heritage of good governance, product quality and long experience of working with communities gives us a strong base. Uniliver aim to build on this by taking the next step in transparency and accountability. It will stand visibly as Unilever, behind its products and everything Uniliver do, everywhere.
Every day 150 million people in over 150 countries choose its products. Already, most of its brands give the benefits of feeling good, looking good and getting more out of life. Bertolli, for example, conjures up the Italian zest for life and Becel/Flora keeps hearts healthy. Sunsilk helps you feel happier because yits hair looks great. Its laundry brand, Omo, encitsages children to get dirty so they can experience more of life.
In the future, its brands will do even more to add vitality to life. Its vitality mission will focus its brands on meeting consumer needs arising from the biggest issues around the world today – ageing populations, urbanizations, changing diets and lifestyles.
Uniliver see growing consumer need for:
- a healthy lifestyle
- more variety, quality, taste and enjoyment
- time, as an increasingly precious commodity
- Helping people to feel good, look good and get more out of life will enable us to meet these needs and expand its business.
Unilever is in a unique position to understand the interrelationships between nutrition, hygiene and personal care. Uniliver can do this thanks to its strong science capability and its locally rooted consumer insight. It is by bringing all this together that Uniliver can strive to contribute to quality of life and wellbeing – adding vitality to life.
The long-term success of its business is intimately interconnected with the vitality of the environment and the communities in which Uniliver operate. The environment provides us with its raw materials and the ingredients Uniliver need to make its products. Healthy, prosperous communities provide us with a healthy, growing consumer base
Unilever Unveils 50 Sustainability Goals
50 specific goals that include social and health-related targets under the Unilever Sustainable Living Plan released today. It expanded on a commitment made last year to double sales while reducing overall environmental impact.
The new plan gets far more specific. And progress on this “social mission” is now part of every Unilever initiative launch plan alongside sales and profit targets, Mr. Lewis said, president of Uniliver America.
Unilever isn’t the only company to recently step up environmental goals, but its targets are more ambitious than many, maybe even most. Procter & Gamble Co. also announced bigger sustainability goals for 2020 in September, targeting, among other things, a 20% reduction in packaging per consumer use, but Unilever’s goal is for an absolute reduction of 33%.
Pledge to use sustainable sits
Unilever is pledging to sits all of its agricultural raw materials from sustainable sits by 2020 and half by 2015. That could drive up costs, but it is manageable by Uniliver.
One of Unilever’s more ambitious targets is to expand its PureIt water-filtration brand, launched in India in 2004, to elsewhere in Asia, Latin America and sub-Saharan Africa. It aims to have such systems provide safe drinking water to 500 million globally by 2020 — a population bigger than South America’s current 385 million or nearly half of India’s current 1.1 billion.
The company’s new “Sustainable Living Plan,” developed over the cites of the last 12 months, and unveiled around the globe today, focuses on Unilever’s entire supply chain, from the farms that supply raw materials for its products to the emissions and waste generated by customer use of those products.
Among the targets Unilever has set:
• Since 100 percent of agricultural raw materials sustainable by 2015, including 100 percent sustainable palm oil. Unilever buys 3 percent of the world’s annual supply of palm oil.
• Change the hygiene habits of 1 billion people in Asia, Africa and Latin America to help reduce diarrhea — the word’s second biggest cause of infant mortality. Unilever will push sales of its Lifebuoy soap brand and teach consumers when to wash their hands to achieve this aim.
• Make drinking water safer in developing countries by extending sales of its PureIt home water purifier.
• Improve standards of living by working with agencies such as Oxfam and the Rainforest Alliance to link 500,000 smallholders and small-scale distributors to the Unilever supply chain.
According to The Guardian:”[Unilever] also intends to improve the nutritional quality of its food products — with cuts in salt, saturated fats, sugar and calories — and link more than 500,000 small holder farmers and small scale distributors in developing countries to its supply chain.”
The Sustainable Living Plan sets out over 50 social, economic and environmental targets. It will see Unilever, whose global brands include Dove, Omo, Knorr and Lipton, halve the greenhouse gas emissions, water and waste used not just by the company in its direct operations, but also by its suppliers and consumers.
Over two-thirds of greenhouse gas emissions and half the water used in Unilever products’ lifecycle come from consumer use, so this is a major commitment on an unprecedented scale.
Other key goals Unilever plans to achieve by or before 2020 include:
- 100% of its agricultural raw materials sustainable including, by 2015, 100% sustainable palm oil;
- Changing the hygiene habits of 1 billion people in Asia, Africa and Latin America so that they wash their hands with Lifebuoy soap at key times during the day – helping to reduce diarrhea disease, the world’s second biggest cause of infant mortality;
- Making safe drinking water available to half a billion people by extending sales of its low-cost in-home water purifier, PureIt, from India to other countries;
- Improving livelihoods in developing countries by working with Oxfam, Rainforest Alliance and others to link over 500,000 smallholder farmers and small-scale distributors into its supply chain.
Paul Polman (group chief executive) emphasized that Unilever did not have all the answer were and that the company would need to work in partnership with customers, suppliers, governments and NGOs if it was to achieve its goals.
2.6 Volume growth ahead of Uniliver markets
Underlying volume growth:
Underlying volume growth accelerated in 2010 to 5.8%, the best that Unilever has achieved for more than 30 years. Uniliver set out two years ago to reignite its volume growth and to grow ahead of its markets. That is what Uniliver are starting to do; its volume shares are up in all regions and in most categories.
Volume growth was broad based. In its emerging markets business Uniliver grew volumes by around 10% over the year as a whole, with the key businesses of China, India and Turkey all delivering growth well into double digits. Only in Central and Eastern Europe did Uniliver see more subdued growth, although even here volumes were comfortably up in difficult markets. In the developed world, where growth has been very hard to achieve over the recent past, its volumes were also up by around 2%, again ahead of the market, in both Western Europe and North America.
Uniliver gained volume share in all regions, with particularly strong performance in key emerging markets such as China, Indonesia, South Africa and Argentina. Uniliver stern Europe also saw strong volume share gains, led by the Netherlands, France and Italy. Volume shares were also up in most of its core categories, with deodorants, skin cleansing, household care, ice cream and dressings all achieving notable gains during the year.
Steady improvement in margin
Underlying Operating Margin for the year increased by 20 basis points. It was another year of the steady and sustainable improvement that Uniliver have been targeting.
Cost saving programmes again delivered strongly, with €1.4 billion of savings in the year following a similar amount in 2009. Much of the success in savings came in the supply chain, and as a result gross margin, at constant currency, improved for the year despite negative underlying price growth and modestly higher commodity costs. Positive mix and improved volume leverage also contributed positively to gross margin.
At the same time as increasing underlying operating margin Uniliver also increased substantially the advertising and promotions investment put behind its brands – at constant currency the increase was more than €300 million or 30 basis points in the year. This came after an even bigger increase in 2009, meaning an additional €700 million behind the building of its brand equities over the last two years. Aside from the gross margin increase, the key driver of margin improvement was a reduction in indirect costs, with the organization now leaner and a new discipline exerted in all areas of the cost base.
Healthy cash delivery
Working capital reduced as a percentage of turnovers and has now been negative for over 12 months. The cash conversion cycle improved by 17 days, from 20 days in 2009 to just three in 2010. Uniliver are close to best in class in its management of payables and receivables, but in inventories Uniliver still see scope for further improvement.
This strong performance in working capital management was reflected in free cash flow, which was again healthy at €3.4 billion. Over the last two years its combined free cash flow of €7.4 billion represents around 90% of net profit. This is robust performance, particularly at a time when Uniliver are investing heavily in the future growth of the business in areas such as capital expenditure, as it build new capacity to support its rapid volume growth in emerging markets. The €0.7 billion reduction versus 2009 reflected a smaller inflow from working capital in 2010, following the exceptional benefit of €1.7 billion taken in 2009.
2.8 Corporate image
Unilever claims that corporate social responsibility is at the heart of its business. However Uniliver, the transition to a responsible and sustainable company is ongoing and it has attracted a variety of criticisms from political, environmental and human rights activists on not achieving the high aims it communicates on a number of topics.
2.8.1 Environmental issues
Unilever’s stated goals are to decouple growth from the company’s environmental impact by
- halving the environmental footprint of its products
- helping 1 billion people improve their health and well-being
- since all of its agricultural raw materials sustainably
Unilever has been criticized by Greenpeace for causing deforestation, Unilever was targeted in 2008 by Greenpeace UK, which criticized the company for buying palm oil from suppliers that are damaging Indonesia’s rainforests. Unilever, as a founding member of the Roundtable on Sustainable Palm Oil (RSPO), responded by publicizing its plan to obtain all of its palm oil from sitsces that are certified as sustainable by 2015.
In Côte d’Ivoire, one of Unilever’s palm oil suppliers was accused of clearing forest for plantations, an activity that threatened a primate species, Miss Waldron’s Red Colobus. Unilever intervened to halt the clearances pending the results of an environmental assessment.
On 4 July 2010, Unilever announced that it has secured enough GreenPalm certificates of sustainable palm oil to cover the requirements of its European, Australia, and New Zealand business. GreenPalm is a certificate trading programme, endorsed by the RSPO, which is designed to tackle the environmental and social problems created by the production of palm oil.
Unilever has committed to purchase all its tea from sustainable, ethical sitsces. It has asked the international environmental NGO, Rainforest Alliance, to start by certifying tea farms in Africa.
Lipton and PG Tips will be the first brands to contain certified tea. The company aims to have all Lipton Yellow Label and PG Tips tea bags sold in Western Europe certified by 2010 and all Lipton tea bags sold globally by 2015.
Unilever states it is committed to the elimination of animal testing, and where it is a legal requirement in some countries, it tries to convince the local authorities to change the law. Some activistsargue that this is little more than an effort to gain good publicity and Unilever continue to use animal experimentation such as the LD50 poisoning test.
2.8.2 Social issues
Race and advertisements
Hindustan Unilever, had been showing television advertisements for skin-lightening cream, Fair and Lovely, depicting depressed, dark-skinned women, who had been ignored by employers and men, suddenly finding new boyfriends and glamorous careers after the cream had lightened their skin.
The Austrian branch of Unilever (Eskimo) is producing and marketing an ice-cream under the name Mohr im Hemd. “Mohr” (moor), is a colonial German word for African or black people, has a heavily colonialist and racist connotation, “Mohr im Hemd” (moor in the shirt) is a traditional Austrian chocolate specialty which refers to naked, “wild” Africans. Unilever refutes any racist intentions and claims that it has tested the name in broad market studies in Austria without any critical feedback.
Sexism in advertisements
The Campaign for a Commercial-Free Childhood criticized Unilever for the 2007 Axe marketing campaign, which they considered sexist. Unilever’s response is that the Axe campaign is intended as a spoof and “not meant to be taken literally”.
Unilever has launched the Dove “Real Beauty” marketing campaign, which envisaged women to reject the underfed and hyper-sexualized images of modern advertising in 2007.
In 2003 Hindustan Unilever was accused of making use of child labor, among others.
2.9 Organizational Structure
Brands with annual sales of one billion euros or more:
- Blue Band
- Lux (soap)
- Omo/Surf (detergent)
- TIGI (haircare)
The Heartbrand logo accompanying various brands of Unilever ice creams.
Unilever is the world’s biggest ice cream manufacturer, with an annual turnover of €5 billion. Except for the USA brand names Popsicle, Klondike, Ocean Spray ice cream, Slim Fast ice cream, Breyers, Starbucks and Ben & Jerry’s; all of its ice cream business is done under the “Heartbrand” brand umbrella, so called because of its heart-shaped logo. Unilever currently operates eleven ice cream factories in Europe; the biggest include factories at Heppenheim in Germany, Caivano in Italy, St. Dizier in France, Gloucester in the United Kingdom and Santa Iria da Azóia in Portugal.
The Heartbrand was launched in 1998 (and slightly modified in 2003) as an effort to increase international brand awareness and promote cross-border synergies in manufacturing and marketing (“centralization”). It is present in more than 40 countries. Although the logo is common worldwide, each country retained the local brand so as to keep the familiarity built over the years, one notable exception being Hungary where the previous Eskimo brand was replaced with Algida in 2003.
In 2005, Glidat Strauss received special permission from Unilever to export their brand of ice cream to the United States because of the strict kosher certification the products in Israel have. Under terms of the agreement, Strauss ice cream and krembo may be sold only in kosher supermarkets and import shops. It is distributed in North America by Dairy Delight, a subsidiary of Norman’s Dairy.
Prior to the heart logo, each country could choose its own logo, although the most common one consisted of a blue circle with the local brand’s name over a background of red and white stripes; second most common old logo, used by Wall’s in the UK and other countries, was a yellow logo with Wall’s in blue text.
Unilever generally manufactures the same ice-cream with the same names, with rare occasions of regional availability, under different brands. Some of these ice-creams include Carte D’Or, Cornetto, Magnum, Solero and Viennetta.
Food and beverages
Partial list of national brands variants of the Heartbrand
Home and personal care brands
2.9.1 Principal Operating Units:
Africa; Central Asia & Middle East; China; East Asia Pacific; Latin America; DiverseyLever; Food & Beverages–Europe; Ice Cream & Frozen Foods–Europe; Home & Personal Care–Europe; Central & Eastern Europe; Foods–North America; Home & Personal Care–North America .
STRATEGY AND MARKETING
- Unilever is one of the world largest Company.
- Company has advanced technology and well skilled professionals.
- Product is highly qualified.
- The target people are the whole people.
- Company totally owned, systematic distribution network, transparent communication system.
- Participative management style.
- Competitors has strong promotional activities.
- Customers are offered better alternatives by the competition.
- Advertisement flaws.
- Devotion of product.
- Product’s quality looses its values.
- Poor Promotion of free sample.
- No Unique identification of product.
- Population expanding at a rapid rate.
- Consumers are becoming more quality conscious.
- Current capacity utilization & 0% which can be bather broadened with the increased in demand.
- Customer base is increasing with effective marketing.
- Baby shampoo is another area uniliver can make huge gains.
- Shampoo plus conditioner and anti dandruff shampoos are another area where unilver can earnhvge profits.
- Pural areas are a large prospective market where they can introduce.
- Political and economic factors.
- Partial government Policies.
- High rate of competition.
- Local and foreign competition.
4.9.1 Top Uniliver competitors:
|Proctor & Gamble||Cincinnati, OH|
|Kraft foods||Northfield, IL|
4.9.2 Market share:
|Uniliver||P & G||Kraft||Nestle|
|Top segment||C/G foods||Consumer care||Food||Food|
|Top brand||Dove||Tide||Mac & cheese||Kitkat|
|Stock per share||$66.03||$53.76||$30.70||$66.90|
(Sitsce: Hoovers Business Intelligence Guide)
4.9.3 Principal Competitors:
Alberto-Culver Company; Amway Corporation; Avon Products, Inc.; Beiersdorf AG; Ben & Jerry’s Homemade, Inc.; Bestfoods; Campbell Soup Company; The Clorox Company; The Coca-Cola Company; Colgate-Palmolive Company; ConAgra, Inc.; Dairy Farmers of America; Groupe Danone; Del Monte Foods Company; The Dial Corporation; The Estée Lauder Companies Inc.; The Gillette Company; Hormel Foods Corporation; Johnson & Johnson; Kraft Foods, Inc.; L’Oréal; LVMH Moet Hennessy Louis Vuitton SA; Mars, Inc.; Nabisco Holdings Corp.; Nestlé S.A.; The Pillsbury Company; The Procter & Gamble Company; Reckitt & Colman plc; Revlon, Inc.; Sara Lee Corporation; S.C. Johnson & Son, Inc.; Shiseido Company, Limited; Unigate PLC.
A freezer in Queens, NY filled with Strauss ice cream from Israel with the Heartbrand
Unilever has produced many advertising campaigns, including:
- Lynx/Axe click advert with Nick Lachey (US only) and Ben Affleck (Non-US only)
- PG Tips Monkey and Al
- Knorr Chicken Tonight, ‘I feel like chicken tonight’
- Knorr Chinese Soup, ‘Just add one egg!’
- Flora London Marathon
- Knorr global brand
- Dove Campaign for Real Beauty, including Evolution
- Calve Pindakaas (peanut butter) in the Netherlands
- Comfort Pure recommended by mothercare
- Clear Anti-Dandruff shampoo and conditioner with the entertainer Rain
- Clear Anti-Dandruff shampoo and conditioner with the entertainer Nicole Scherzinger
- Clear Soft and Shiny shampoo and conditioner with the actress Sandra Dewi
4.11.1 Outlook and risks
Market conditions for its business were challenging in 2010 and Uniliver do not anticipate this changing significantly in 2011. Economic pressures are expected to continue to weigh heavily on consumer spending, particularly in developed markets where the combined impact of austerity measures and high unemployment is likely to constrain disposable incomes. Emerging market growth should continue to be robust, although even here Uniliver expect to see a modest slowdown. The most difficult environment is likely to be in Western Europe, where higher taxes, lower public expenditure and potentially rising interest rates mean that, for the short term at least, growth will be limited. In these conditions, consumer confidence is not expected to rise significantly in the year ahead and the search for value by the consumer will continue unabated. A further source of volatility in the year ahead is the return of inflationary pressure, particularly in respect of key commodity costs. Uniliver anticipate significant commodity cost inflation for at least the first half of 2011. If current trends continue then this inflationary pressure will extend also into the second half and beyond. In this environment Uniliver expect prices to rise, albeit at a lower rate than costs as competitors seek to protect market positions and offset higher commodity costs with savings elsewhere.
The competitive environment for its business is likely to remain intense in 2011. Its key competitors, both global and local, will be eager to rebuild market share in many of its markets and categories, and will design their activity plans accordingly. Uniliver expect continued high levels of competitive challenge to its many category leadership positions. Some of this will be price-based, as in 2010, but Uniliver also expect strong innovation-based competition backed by wide-ranging brand support. With the improvements Uniliver have been making to its business Uniliver are well prepared for these challenges. Faced with these challenges Uniliver will continue to focus on its long term strategic priorities of driving volume growth ahead of its markets whilst providing a steady improvement in underlying operating margin and strong cash flow. Uniliver are well placed, with an impressive presence in emerging markets, more than 75% of its business in either category leadership or number two positions, a portfolio of strong brands, an increasingly effective innovation programme and a dynamic new performance culture. These give us confidence that Unilever is fit to compete, whatever the circumstances.
Principal risk factors
Risks and uncertainties could cause actual results to vary from those described in forward-looking statements made within this document, or could impact on its ability to meet its targets or be detrimental to its profitability or reputation. The risks that Uniliver regard as the most relevant to its business are identified below. Uniliver have also commented on certain mitigating actions that Uniliver believe help us manage such risks; however, Uniliver may not be successful in deploying some or all of these mitigating actions.
4.11.2 Where Uniliver will win
Brands and innovation are at the heart of its business model. Uniliver aim to offer a broad portfolio those appeals to consumers with different needs and budgets. Unilever brands must also offer product quality that is recognized as superior by its consumers and supported by excellent marketing. Meanwhile, its innovation programme is focused on being ‘bigger, better, faster’. This means leveraging technology to create bigger, better innovation platforms that are then rolled out faster to multiple markets.
Its ambition is to win share and grow volume profitably across its categories and countries – and Uniliver believe it has the tools in place to do so. Uniliver have a portfolio fit for growth, with strong brands and many leading category positions. Geographically, its outstanding presence in the emerging markets leaves us well positioned to win where much of the future growth will be. Yet, Uniliver is also determined to grow in the developed world, which represents around half of its business and where the bulk of the world’s wealth will remain for many years to come. The biggest opportunity for Unilever and its customer’s lies in growing the size of its categories, which Uniliver will strive to achieve through innovation and market development. Uniliver will further enhance and broaden its relationship with customers – working together on areas of mutual benefit such as consumer research, shopper behavior and merchandising. To sustain winning customer relationships and to enable growth, Uniliver will also need to be consistently brilliant at customer service and in-store execution. Uniliver will aim to reinforce its continuous improvement philosophy by further developing a customer and consumer-led, agile value chain. Its focus will be in three areas. Uniliver will prioritise speed and flexibility in the supply chain to deliver growth. Secondly Uniliver will
Leverage its global network capabilities and scale more aggressively. Finally Uniliver will work to get a better return on its advertising and promotional expenditure – one of its most significant areas of cost. It is vital that Uniliver have the talent and organization in place to match its growth ambition. Across the business, Uniliver are therefore looking ahead at what it needs to achieve, and aim to equip itself with the necessary people, skills and capabilities to get there. Uniliver also know that engagement and a culture based on living its values are essential for keeping the best people. Uniliver believe its operating framework allows us to balance scale and global expertise to develop successful products with the local consumer intimacy needed to market and sell them.
4.11.3 How Uniliver will win
“With confidence in its ability to grow Uniliver launched a renewed, bold vision for the company – to double its size while improving its environmental footprint.
With its portfolio of brands, presence in emerging markets and long-standing commitment to shared value creation, Uniliver believe yits company is well placed to deliver on this ambition.”
a. Winning with brands and innovation
b. Growth priorities
c. Winning in the market place
d. Winning through continuous improvement
e. Winning with people
a. Winning with brands and innovation
Its aim is to give people a great experience when they use its brands – better than the competition. Uniliver are investing in improving product quality and making stronger functional claims. Uniliver are also focusing on design, packaging, marketing and advertising, in order to get its brand benefits across more persuasively. Take Knorr Stockpot bouillon. Using a unique jelly technology that delivers homemade taste and quality, this product is helping people create a special meal at home instead of eating out.
Product superiority is essential, but Uniliver also need to offer a broad range of choice which meets differing consumer needs and price points wherever Uniliver operate. Brands and innovation are at the heart of everything Uniliver do. Uniliver develop its products to keep pace with changes in consumer lifestyles and to appeal to people at all income levels.
Success means getting bigger and better innovations into the market faster, supported by the very best marketing. In the UK, understanding that consumers are looking for value without compromising on quality, and recognizing the importance of fragrance in communicating a product’s benefits, Uniliver developed a range of liquid concentrates for Surf detergent with added essential oils, resulting in 29% growth.
In Russia, despite a severe economic recession, Uniliver achieved growth of more than 20% in its tea sales by offering choice across multiple price points with three distinctive brands –Lipton, Brooke Bond and Beseda.
And in India, where water quality remains a major concern, the breakthrough technology of PureIt, its in-home purification system, is providing safe and affordable drinking water with complete protection from the water-borne germs that cause diseases. In 2009, Pureit provided safe drinking water for more than 15 million people in 3 million households in India.
b. Growth priorities
Bigger, better, faster innovations
Successful innovation is based on deep consumer insight. The balance Uniliver seek to achieve is to marry global strength in R&D with local knowledge of people’s habits, tastes and behaviors. To grow at the rate Uniliver want to, its focus investment on products that can work globally rather than on launches in just a few countries. Uniliver have also doubled the number of big projects Uniliver are working on. Uniliver are already seeing results. Uniliver have rolled out Axe Dark Temptation deodorant to 56 markets, Lipton Pyramid fruit tea bags to 38 markets and Clear shampoo to 35 markets.
For a product to work at a global level, it needs to address unmet needs with superior technology and a clear consumer concept. R&D must deliver breakthrough science in areas that really matter to consumers, with products that do what they claim. Success on this scale requires strict priorities and big ideas. Within R&D, part of prioritizing is getting the balance right between the short and the long term. With an eye to its future growth plans, during 2009 Uniliver developed a more robust process for fuelling its longer-term innovation pipeline. Called the Genesis Programme, it spans its foods and home and personal care categories and focuses on the breakthrough ideas that Uniliver expect will deliver the biggest wins. From 2011 Uniliver should begin to see some of these innovations in its products. Uniliver continued to invest substantially in R&D, despite the economic environment. In 2009, Uniliver opened a new R&D centre in Shanghai. Located in a country which is increasingly recognized as a world leader in developing high-end innovations, the new centre further underscores its commitment to driving growth through R&D.
Bigger, better, faster: In laying the foundations for growth, Uniliver are focusing on
rolling out more innovations faster and to more markets.
Lead market development
The world’s population, currently 6.8 billion, is set to grow to 7.7 billion by 2020. Today, 5.9 billion live in developing and emerging markets – countries such as Brazil, India and Indonesia where Unilever has deep roots and a wide presence. Uniliver already reach many more consumers than its competitors in these markets. Market development is about developing and growing categories.
There are three ways of doing this:
• more users (increasing market penetration);
• more usage (increasing consumption);
• more benefits (getting consumers to buy higher value products).
For example, Take Axe.
In recognizing that fragrance is a major reason why people choose one brand over another, new fragrance launches are helping to increase market penetration, introduce new users to the brand and ensure its product mix remains up to date. This, in turn, has helped Axe become the world’s leading male deodorant and shower gel.
c. Winning in the market place
Its biggest growth opportunity lies in expanding the markets in which Uniliver compete. In developing and emerging countries there is huge potential for future growth as more and more people start consuming personal and household products for the first time. To realize this potential, it will need to partner with its customers in both the developed and developing markets.
Win with winning partner
Unilever was the exclusive partner of Walmart Soundcheck. The campaign featured music talent such as Jennifer Hudson and Martina McBride. Its brands, including Dove and Suave, were able to reach their target consumers in a new, innovative way. A video of a latest hit, along with exclusive interviews with the artist, was shown in-store in the electronics department, and was available as a download from the Walmart website. In-store merchandising and additional online programming further amplified the campaign. Not only did the programme result in a big increase in sales for its products, but Walmart saw a rise in music sales of the featured artists. Soundcheck is a multi-year exclusive partnership, so Uniliver’re looking for another good year in 2011.
Win with winning customers
There is a growing trend in the retail industry towards consolidation, with fewer but larger retailers. Thanks to its global scale and local knowledge, Unilever is ideally placed to help those customers achieve their own growth ambitions. In 2008 Uniliver opened in New Jersey the first of a network of customer insight and innovation center to work directly with retailers. The center covers everything from merchandising and store layout, to displays and packaging. Through the center, Uniliver work with customers to design and test concepts without going to the expense of real in-store pilots. Since opening, the center has generated significant growth opportunities. Its London center has since opened and Uniliver plan to open three
more in 2010 inParis, Shanghai and São Paulo.
Be an execution powerhouse
Market development and great relationships with customers will only be points of advantage if Uniliver execute with excellence. This is not a complicated concept. It is about the everyday disciplines of ensuring that Uniliver are delivering to its customers the products they want, in the quantities they ordered at the time they are needed. This involves having a customer-focused approach across its brand building, customer development and supply chain teams. During 2009 Uniliver focused much more closely on ‘sales fundamentals’, a set of company-wide measures covering every aspect of its in-store presence. Uniliver have performed well against these measures, which have been one of the many drivers in improving customer service in most of its key countries.
The detail of what works in one type of store won’t work for all, however. A superstore in the US is very different from a local retailer in a small town in China, both in terms of the products it carries and the way those products are sold. But for
each type of store, by channel and geography, there is a perfect concept – namely, what the shop would look like if it were the perfect sales vehicle for its categories and brands. Uniliver developed the perfect store concept in the AAC region (Asia, Africa and Central & Eastern Europe) in early 2009. Uniliver began implementing it in modern trade outlets across the region, focusing on the region’s largest fits categories – skin cleansing, hair, fabric cleaning and tea.
Fast and flexible – and increasingly competitive
Winning in the market is about being fast and agile to meet the changing needs of today’s customers and consumers. Of course, being competitive on cost is vital, but rather than having a purely cost-based agenda for its supply chain, Uniliver have widened its focus to ensure that Uniliver are more responsive to the constantly changing needs of its customers.
Delivering significant value
During 2009 Uniliver launched a single strategy for the supply chain – One Unilever Supply Chain – putting customers and consumer sat the heart of everything Uniliver do. The principal objectives for its supply chain are to deliver top-quality products with world-class service at a competitive cost.
It’s a big ambition that:
• supports top-line growth through speeding up the roll-out of global launches;
• ensures its products are constantly on the shelf;
• increases profits by simplifying its structure and reducing waste;
• improves cash flow by reducing stock and providing better payment terms.
The rewards are significant. In 2009, as part of this, its One Unilever Supply Chain team contributed significantly to delivering €1.4 billion in savings.
The advantages of global scale
Unilever has a global reach wider than many of its competitors. This gives us a tremendous opportunity for improving efficiencies by leveraging its scale.
Uniliver are doing this in three critical areas:
• back office services.
Single procurement strategy having a single, global procurement strategy means that where bigger is better, Uniliver are getting the benefits. For many items, buying globally gives us economies of scale. For example, significantly reducing the number of tomato ingredients that are used in its products from 300 to just 39 enhanced the consistency of product quality and, at the same time, substantially reduced costs.
d. Winning through continuous improvement
Delivering sustained, profitable growth requires a philosophy of continuous improvement. This means being fast and flexible in the supply chain while keeping costs competitive. It will also require us to make the most of its scale and aim for the best return on every euro Uniliver spend on advertising and promotion.
Improvement of technology
Introduced at its UK plant in Leeds, the new technology allows us to produce a common, unperformed base for its aerosols, adding the fragrance only at the very last stage. This gives us the flexibility to make many more variants without incurring higher costs. It’s good for us because it has contributed greatly to lower stock levels; around 70% of its stock-keeping units have seen their minimum order quantity halved; its product change-over time has reduced from 40 minutes to just fits; and Uniliver produce less waste. But more importantly it benefits customers, who have improved shelf stock levels and reduced lead times, and consumers, who can get a wider choice of fragrance at no extra cost.
Internal services under one roof
Even with activities such as IT, travel, office services, accounts payable and accounts receivable, there are big opportunities to leverage global scale. So in 2009 Uniliver set up a new business unit, Unilever Enterprise Support (UES). It will be operational in April 2010 and will bring together many of these activities as a key part of its initiatives to drive down costs.
The best return on brand and customer investment
Unilever is the second biggest advertiser in the world. Improving the return on its brand and customer support is one of the biggest things Uniliver can do to achieve growth. There is a tendency to think that analyzing this kind of return on investment is some form of mystery. Uniliver believe it is simply about being rigorous in applying its best evaluation and development techniques.
Everyday disciplines done brilliantly
Uniliver decide on the best ways of investing its spend.
Uniliver do this on three levels:
• allocating investment across geographies, categories and brands;
• allocating investment across particular projects and product launches;
• allocating spend locally across marketing channels and promotions.
Before Uniliver invest, it use a number of tools to answer the questions: how much should Uniliver be investing; and how can Uniliver maximize its effectiveness? During and after the investment, Uniliver use other tools to look at whether it is working, how it could work better and what to do next. This is not about replacing creativity with analytics and measurement; it is about doing both brilliantly. Through focusing on these basics, Uniliver are already seeing great improvements in return on investment in a number of areas. For example, its US foods business has increased returns by over 45% in six years, helped by its use of econometric modeling.
Looking ahead, there are two big themes that will dominate its media planning: how Uniliver make best use of digital media and, given the rise in prominence of global retailers, how Uniliver can make the most of in-store investments.
From months to weeks at no extra cost
Through a partnership with major suppliers, US personal care product labeling is now keeping pace with brand design and variant changes. Process optimizations have created shorter print runs, quicker turnarounds and less waste, at the same label cost.
With such an opportunity for making efficiencies, Uniliver set up UltraLogistik as a separate transport management division within Unilever’s supply chain. It is managed from hubs in Poland and Switzerland, by a team of 100 specialist transport managers. For each transport route Uniliver reviewed the arrangements and determined which of them should be moved into UltraLogistik, and then tendered each route to get the best deal. Uniliver are already making savings of at least 15%, as well as cutting down carbon emissions by moving transport off the road. Ultimately, its aim is to bring over 50% of European transport management within UltraLogistik, and to roll out the model to other parts of Unilever.
d. Winning with people
Doubling in size is a challenging prospect. From a talent and organizational perspective, it cannot be business as usual. Uniliver will have to have in place the people and structures necessary to manage on a larger scale.
Developing a team fit for growth
Its operating framework seeks to combine global scale, power and strength with local consumer intimacy. Taking advantage of this in all its chosen markets and categories – as Uniliver are already doing in many areas – will be critical in ensuring its success. To do this Uniliver need to have a team capable of delivering, and to offer the career potential and working environment that make Unilever the best place to be.
Some of its major markets are doubling in size every five to six years, while its own growth ambitions mean that having enough people with the right skills is a challenge in itself. Getting the right number and quality of people in the pipeline for the future does not happen by accident. It requires an understanding of what is already in the business that can be built upon, and what will be needed in the future as markets develop. In 2009 Uniliver launched its ‘talent and organization readiness programme’, which will do just what it says: make sure its organization and its talent are ready for growth. Uniliver are assessing those areas of the business most crucial to its strategy to define their specific goals, and whether Uniliver have the structure and the talent to deliver them. Where Uniliver identify gaps, Uniliver focus on developing targeted solutions.
This may involve one or more of the following:
• changing organizational structures;
• revising its recruitment strategy and approach;
• reviewing its retention schemes;
• improving core processes such as decision making;
• focusing on culture and employee engagement;
• using development and training programmes to build capability levels.
So far Uniliver have carried out fits pilot programmes in China, Indonesia and Germany, and in its skin category. These have given us important new insights.
Human Resource plannig
Filling the skills gap by getting its people up to speed as quickly as possible became essential. Within three months Uniliver developed a training programme with its HR providers, Accenture, and trained over 450 sales staff in seven cities across China. The average pass rate was over 95%, and Uniliver are already seeing results with an overall increase of 2.29% in net invoice value delivered by those who did the training. Uniliver have now picked some people to become trainers themselves so the programme can become self-sustaining. Uniliver are also looking at rolling it out to other emerging markets where its sales people need to develop new skills quickly.
A diverse team for the widest range of consumers
An important part of developing the Unilever workforce of the future is diversity. Uniliver need a diverse team – across gender, nationality, race, creed, culture – to be able to connect with the widest range of consumers and to take its performance to a higher level. Uniliver are already making progress. Its Board of Directors comprises six nationalities and the nine members of the Unilever Executive team come from six different countries. This combination delivers a wealth of experience in emerging markets which is critical to its future business success. In terms of gender, the number of women in senior positions has increased. For example, the proportion of women now at vice president level has gone up by around one third since 2007.
A place to succeed
As important as development programmes and organizational structures is having a performance culture that rewards people and teams who deliver. Only by inspiring its people and motivating them to succeed will Uniliver deliver its growth ambition. People, integrity and values have always been central to Unilever, and will continue to be so. But within that context Uniliver are determined to become faster, more focused and more competitive. In 2009 Uniliver updated some of its performance management tools, for example introducing a global performance and talent management system. Measuring cultural change is an inexact science, but Uniliver put great effort into engaging with employees to find out whether they understand the company’s vision and their role within it, what their views are about Unilever, and what they believe needs to change for us to achieve its ambitions. In 2009 Uniliver began an employee engagement programme that will ensure employees are involved in Unilever’s vision and plans for the future. As part of Unilever’s partnership with the World Food Programme (WFP), 12 student interns are recruited each year to help run WFP’s school feeding programme in developing countries. It isn’t just the local children who benefit, or the students, who learn valuable life skills. While there is no requirement for interns to talk about Unilever, it is inevitable that they will when telling their friends about their experiences – and most of the time it is positive. In today’s world of blogging and texing, there is no better way to spread the word.
4.11.4 Positioning for the 21st Century
As it entered the 1990s, Unilever had virtually completed reorganizing its European business to better compete within the evolving single market in that region. In 1991 the company further refined its operations by selling the last of its packaging businesses and by making provisions for the eventual sales of the majority of its agribusinesses.
Unilever’s flexible management structure and diverse product range were integral to its survival in the rapidly changing international market. In a 1992 Harvard Business Review article, Chairman and CEO Floris A. Maljers explained Unilever’s management structure: ‘The very nature of its products required proximity to local markets; economies of scale in certain functions justify a number of head-office departments; and the need to benefit from everybody’s creativity and experience makes a sophisticated means of transferring information across its organization highly desirable. All of these factors led to its present structure: a matrix of individual managers around the world who nonetheless share a common vision and understanding of corporate strategy.’
Despite poor performances by some of its subsidiaries and recessions in Europe and North America, Unilever’s broad product range led to overall profit increases in both 1990 and 1991. In 1990 Unilever made substantial inroads into the newly opened markets created by the unification of Germany. The company began producing its Rama margarine at a former East German state plant in Chermnitz, established a task force to select sites for 23 Nordsee fish stores, and began distributing ice cream and frozen novelties to retailers in eastern Germany.
In 1991 Unilever continued to battle with rival Procter & Gamble over the newly opened markets of the former Soviet Union. Unilever purchased an 80 percent stake in the Polish detergent firm Pollena Bydgoscz for $20 million, changing the name to Lever Polska, the first laundry detergent manufacturer to be privatized in Poland. The company earmarked approximately $24 million for product line expansions, including a fabric conditioner and household cleaning products. Also in 1991 Michael Perry was named the U.K. cochairman of Unilever.
Profits in Unilever’s personal products division were down 11 percent in 1991, due to sluggish markets in the United States and only moderate growth in European markets. Unilever’s newly purchased Elizabeth Arden and Calvin Klein, however, posted strong growth, supported by strong retailer relationships and $24 million in advertising expenditures. Such growth occurred despite an overall drop in department store cosmetic sales of nine percent from 1987 to 1992. In 1992, though, Elizabeth Arden profits began slipping, prompting the resignation of Joseph F. Ronchetti, Arden’s CEO since 1978. Unilever underwent further restructuring of its personal products division, creating a prestigious subdivision geared toward introducing Calvin Klein and Elizabeth Arden into overseas markets.
Unilever’s fastest growing market in the early 1990s was in Asia. Although Unilever had been operating in Asia since its earliest days, the company was just beginning to tap into the region’s newly acquired wealth. Asian sales of personal products, detergent, and packaged foods were growing more than twice as fast as sales in the United States and Europe. By 1992 Unilever was composed of some 500 companies conducting business in 75 different countries.
Unilever continued to make acquisitions in the mid-1990s, completing more than 100 purchases between 1992 and 1996, more than half of which were in foods. In 1993 Unilever gained the number one position in the U.S. ice cream market through the completion of two acquisitions. The company paid $155 million to Empire of Carolina Inc. for the Klondike and Popsicle brands, and about $215 million for the ice cream business of Philip Morris’s Kraft General Foods unit, which included the Sealtest and Breyers brands. The acquired brands were merged with the Good Humor line within Good Humor Breyers Ice Cream Company, a subsidiary based in Green Bay, Wisconsin. Also in 1993 Unilever launched a restructuring, taking a US$750 million charge against earnings to close or consolidate 60 plants and lay off 7,500 employees.
One the largest acquisitions of this period was the 1996 takeover of Chicago-based Helene Curtis Industries Inc., manufacturer and marketer of personal care products, primarily shampoo and conditioners, hand and body lotions, and deodorants and antiperspirants. Purchased for about $770 million, Helene Curtis’s portfolio included such brands as Suave, Finesse, and Salon Selectives. Another significant 1996 acquisition was that of Northbrook, Illinois-based Diversey Corporation, a maker of institutional chemical cleansers and sanitizers, and Unilever’s first foray into the industrial cleaning sector.
Unilever and Procter & Gamble (P & G) began battling again in 1994, this time for supremacy in the European detergent sector. Unilever aggressively went after P & G’s market-leading brand, Ariel, with a new soap marketed under the names Persil Power, Omo Power, and Skip Power. Unilever spent $175 million developing the product and another $292 million marketing it during 1994. The product included a manganese complex molecule that Unilever claimed cleaned clothes better at lower temperatures than rival products. P & G conducted tests on Persil Power, however, which indicated that the detergent resulted in abnormal wear after as few as 15 washings. When P & G publicized its findings, Unilever sued the company for slander. But the suit was quickly withdrawn after Unilever admitted that the detergent did indeed contain a flaw–a flaw that had not been uncovered in the prelaunch testing–and could damage clothes when exposed to a particular combination of dyes. Unilever reformulated the product, but not before it had turned into a public relations nightmare. In the end, the Power formula was abandoned entirely and Unilever, therefore, took a £57 million write-off in its 1994 accounts.
According to Andrew Lorenz, writing in the July 1996 issue of Management Today, the Persil Power debacle served as a catalyst for fundamental management reorganization. On September 1, 1996, the three-person special committee that had run Unilever since its formation in 1929 was replaced by a seven-member executive committee composed of the chairmen of Unilever N.V. and Unilever PLC and five high-ranking Unilever executives. At the same time the company did away with a complex two-tiered management structure that included both worldwide product management groups and regional management groups. In their place was created a single team of 14 business presidents, with each president responsible for a portion of the European operations (e.g., the food and beverage Europe group), a portion of the North American operations (e.g., the home and personal care North America group), or a region of the rest of the world (Africa, Latin America, etc.). As was typical of the time, this streamlining was aimed at improving decision-making by pushing authority down to a lower level. Along with this major reorganization came a change in the chairmanships, with Niall FitzGerald replacing Michael Perry as U.K. cochairman; an Irishman, FitzGerald became the first non-English, non-Dutch to serve as cochairman, and he also reached the post despite having been in charge of Unilever’s detergent operations during the Persil Power debacle. Continuing on the Dutch side was Morris Tabaksblat, who had replaced Maljers as Dutch cochairman in 1994.
In the late 1990s FitzGerald and Tabaksblat oversaw a comprehensive review of Unilever’s wide-ranging businesses in an effort to focus on the strongest core areas: ice cream, margarines, tea-based beverages, detergents, personal soaps, skin care products, and prestige fragrances. Several other areas were identified as ‘developing’ core areas: frozen foods, culinary products (sauces and side dishes), hair care products, oral care products, deodorants, household care products, and industrial cleaning products. Businesses outside of these areas were candidates for disposal. In 1996 the company sold its mass-market cosmetics business, its few remaining animal feed operations, some oil-processing units, and a U.K. franchiser of Caterpillar Inc. heavy equipment. Unilever completed its largest disposal the following year, selling its specialty chemicals business to Imperial Chemical Industries PLC for about US$8 billion. The sale resulted in a net profit of US$4.55 billion, part of which cleared Unilever’s US$2.78 billion in debt; the proceeds also contributed to a war chest that expanded to US$9.6 billion. The company made one large purchase in 1997, the US$930 million acquisition of Kibon S.A. Indústrias Alimenticia, the number one ice cream maker in Brazil. In 1998 Unilever sold its Plant Breeding International Cambridge Limited unit to Monsanto for about US$525 million. Unilever also sold off its Nordsee fast-food fish chain in the late 1990s.
In early 1999 Unilever spent a large portion of its war chest on a special dividend to shareholders of £5 billion (US$8.1 billion). In July of that year Tabaksblat retired and was replaced as Dutch cochairman by Antony Burgmans. Two months later Unilever announced that it would eliminate about 1,200 of its brands to focus on around 400 regionally or globally powerful brands–a group that accounted for almost 90 percent of 1998 revenue. This sweeping overhaul of the product portfolio was aimed at increasing annual growth rates from fits percent to six to eight percent and at eventually reaping annual savings of £1 billion.
Unilever ended the 20th century with a strategic plan that included a focus on top brands within core market sectors and an emphasis on growth within developing countries. Although it was facing considerable competitive pressures in various markets around the world–particularly from Procter & Gamble–Unilever was clearly no longer the risk-averse, staid organization of the past. The whirlwind events of the late 1990s seemed destined to position the company as one of the most formidable global consumer products companies of the 21st century.
SOME Products STP:
Market segmentation : The company claims that Lux is the highest selling beauty soap in Bangladesh. Moreover some survey reports also reveal the same result.
Though Lux is the highest selling beauty soap in Bangladesh, it does not go for traditional mass marketing moreover as a beauty soap Lux does not even segment its market according to gender.
Unilever Bangladesh Ltd segments their market according to geographical areas. The population of the country is segmented into three parts which are Urban, sub Urban and rural area consumers.
The company further differentiate the geographical segments according to socio Economic cluster (SEC) i.e. education and Income.
Target Market : Urban and sub Urban middle class and rural people are the largest part of Bangladesh population. A research carried out by Unilever Bangladesh reveals that Urban rich people are more likely to buy imported and expensive products. Moreover rural poor people tend to by cheap products even without evaluating its quality. However Urban and sub Urban upper middle and middle class people tend to buy affordable and quality products.
Lux is not a highly expensive but an affordable products. That is why the company targets Urban and sub Urban upper middle and middle class people who are the second highest of segment of the country.
Positioning : Unilever Bangladesh Ltd obtained a good position in the buyers mind through better product attributes, price and quality offering the product in a different way than the competitors do. The company offers improved quality of products in the Industry at an affordable price with high branding, which ultimately helps to position the product in the buyers mind as the best quality soap.
The market share of the company in the beauty soap industry is some where around 43%. Since in the beauty soap industry all products are of same price Unilever cannot provide its consumers with better price but it is in a great position in reference with its packaging fragrances and product designing.
Lux’s position in the consumers mind on two dimensions price and it states that though in comparison to its competitors the pricing of Lux is same but consumers rate it as the product which gives them the highest quality. This positioning created a strong customer’s loyalty for Lux for which it the market leader in the Industry.
Market segmentation :
Market segmentation is broadly classified into two categories.
- Specific need based segment
(a) Enhancement needs : This cater the need for having fresh breath and whiteness of teeth.
(b) Hygienic needs : This caters to the over all oral care needs.
- Demographic segmentation
The segmentation was specially to target youth between 18-25 years, however it did not alienate the people who were above the age of 30 years (especially the ones who feel young at heart)
This product was also targeted to those groups of audiences who liked experimenting with different products.
Target market :
Close up is targeted at young people. The target market being “Multi Brand Households” Where the young does not use what their parents use. This particular targeting was significant when close up was launched because Colgate positioning was a sort of oral care and hygiene benefits. Also, Colgate was going for a broad market constituting of all the age groups.
Positioning : A large part of close up’s success is because of its brand positioning.
Close up balls under the third pillar of tooth paste “Freshness Segment” particularly dealing the need for white teeth and freshness. Also close up has positioned itself for Emotional benefit of closeness and rational benefit of freshness.
The name “close up” was propounded with a motive of building social confidence to get closer to others. close up was positioned as a youth oral care brand from the very beginning. In 2004, the brand was re-launched with a publicity blitz that communicated virtues of a ‘Vitamin fluoride system’.
Present in the product a powerful mix of vitamins, fluoride. mouth wash and micro-whiteners, for fresher breath and stronger, whiter teeth.
Segmentation of Vaseline
Market segmentation is the process of disaggregating the total market for a given product into the number of sub-markets. The heterogeneous market is broken up in the process into a number of relatively homogeneous units. Different ways of market segmentation are as follows.
- Geographic segmentation
- Demographic segmentation
- Psychographic segmentation
- Buyer Behavior segmentation
- Volume segmentation
- It can also be done by mixing any of the following
Target market : Vaseline targets women in their mid-20-s on wards for the brand,” combination of mass and prestige. The focus will be to tap the segment in between the mass and the premium end of the segment. They also focus on family uses of Vaseline.
Positioning : Poisoning “is the act of communicating company’s offer so that it occupies a distinct and valued place in the customer’s mind so as to create an enduring competitive advantage”. Vaseline is positioned on the healthcare platform with a body lotion and a petroleum jelly cream. The Customers see the tangible attributes like performance level, price, packaging, products components before buying the product. Vaseline being the winter cream posses many uses such as pomade for the hair, it is also used by males as a personal lubricant. Vaseline prices are less as compared to ponds, Lakme of Nivea. The brands range was expended to Talcum Powder but was later with drawn. A seasonal brand, Unlike pond’s, Vaseline also has boot care cream, which has remained a niche product with limited demand during winter.
The Unique selling proportion of Vaseline is its 100%. white petroleum.
Personal Hair Care Shampoo available in multiple variants
Girls in the age group of 20’s
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing, nourishing and manageability
MARKETING MIX OF UNILEVER:
Unilever owns more than 400 brands as a result of acquisitions, however Uniliver, the company focuses on what are called the “billion-dollar brands”, 13 brands, each of which achieve annual sales in excess of €1 billion. Unilever’s top 25 brands account for more than 70% of sales. The brands fall almost entirely into two categories: Food and Beverages, and Home and Personal Care.
Unilever Bangladesh Brands
Lux, Lifebuoy, Dove,
Fair & Lovely, Pond’s, Vaseline
Close Up, Pepsodent,
Vim, Surf Excel, Wheel,
Rexona, Axe, & Taaza
3.2 Price :
Unilever claims to practice value-based pricing in which the customers. Perception of the product’s price provides a starting point for developing the marketing mix of the product. The research department determines this price usually by using focus groups. The Primary importance of this value-based pricing is that the products demand will be much higher if its price is in line with the customer’s perception of its value, One crucial concern for value-based pricing is strict management of cost in order to be able to make a profit at the value-based price. After the initial Price is determined Unilever then uses target costing in order to achieve the required profits.
Some Products Price
Brand Name : Dove
|Dove Soap||90 ml||75.00|
Brand Name : Lux
|Lux Soap||80 ml||20.00|
Brand Name : Sunsilk
|Product Name||Weight||Price Tk.|
Brand Name : Fair & Lovely
|Product Name||Weight||Price Tk.|
|Multi vitamin||25 gm||50.00|
|Fair & Handsome||25 gm||35.00|
Unilever Follow common system of distribution. That means company wholesaler retailer consumer
It basically covers 2 tiers cities and rural area.
It has made his strategy like that in every small or big shop customer will be able to find out the product.
After the changed image of Unilever it also trying to make the availability of the soap in above middle calls society.
distribution network directly covers villages and cities million consumers.
The vision of the company to reach every village of the country.
- Build top of the line consumer’s awareness.
- Creating a personality of the braved.
- To increase the usage.
- Imparts a feeling of freshnes
- Effectively communicate brand promise.
- Innovative Campaigns such as “Hairpy”. and life can’t wait were launched to attract women to the brand.
- Sponsored short films that were broudcast during popular television shous.
- Media platforms used.
- Print media.
- Internet Campaign.
- Interned rural campaign.
- Environment concern ads.
- Music videos.
- Free sample dissertation.
- Demo campaigning.
- Promotion of the products through mobvies such as “Fashion”.
- Enhancement of product mix.
- New product formulations according to changing consumer preferences.
Unilever believes that messages about product delivered by credible sources can be very persuasive Uniliver more value added to the brand. Consumers relate to products itself, they can relate to expert.
- Actresses as spokespersons.
- Some of the these films were made exclusively for relailers like wall-mart and were telecast in store.
- Sponsor for fashion shous.
- Gang of girls site pushed online and vis TV and print.
- Lots of media mentions as it as a “Successful branded space”.
- Direct contact with target people.
Some Worldwide Premium Brands of Uniliver.
5.1 Lux (soap)
Lux is a global brand developed by Unilever. The range of products includes beauty soaps, shoUniliverr gels, bath additives, hair shampoos and conditioners. Lux started as “Sunlight Flakes” laundry soap in 1899.
In 1924, it became the first mass market toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements.
As of 2005, Lux revenue is at 1.0 billion euros, with market shares spread out to more than 100 countries across the globe.
Today, Lux is the market leader in several countries including Brazil, India, Thailand and South Africa.
Developed by Unilever, Lux (soap) is now headquartered in Singapore.
Origins & History
The brand was founded by the Lever Brothers (today known as Unilever) in 1899. The name changed from “Sunlight Flakes” to “Lux” in 1900, a Latin word for “light” and suggestive of “luxury.”
Lux toilet soap was launched in the United States in 1925 and in the United Kingdom in 1928. Subsequently, Lux soap has been marketed in several forms, including handwash, shoUniliverr gel and cream bath soap.
Since the 1930s, more than 400 of the world’s most famous female celebrities have been associated with Lux. Marilyn Monroe, Sophia Loren, Natalie Wood, Brigitte Bardot, Demi Moore, Catherine Zeta-Jones, Sarah Jessica Parker and Aishwarya Rai are some actresses featured in Lux advertising campaigns.
Lux’s early advertising campaigns aimed to educate users about its credentials as a laundry product and appeared in magazines such as Ladies Home Jitsnal. By the early 1920s, it was a hugely successful brand and in 1924, the Lever Brothers conducted a contest that led them to a very interesting finding: women Uniliverre using Lux as toilet soap.
LuxBuilding beauty soap credentials
Building beauty soap credentials
Introduced in the US in 1924, Lux became the world’s first mass market toilet soap with the tagline “made as fine as French Soap”. In the first 2 years of launch, Lux concentrated on building its beauty soap credentials. Advertisements offered consumers “a beauty soap made in the French method” at an affordable price, with the promise of smooth skin.
Made with fine-texture, rich in fragrance, and manufactured using a method created in France, the first Lux toilet soap was sold for 10 cents apiece.
1928 – 1940: 9 out of 10 stars
This era saw key launches of LUX in the UK, India, Argentina and Thailand. The brand concentrated on building its association with the increasingly popular movie world, focusing more on movie stars and their roles rather than on the product. In 1929, advertising featured 26 of the biggest female stars of the day, creating a huge impact among the movie-loving target audience. This was folloUniliverd by Hollywood Directors talking about the importance of smooth and youthful skin. This pioneered the trend of celebrity product endorsements.
In 1931, Lux launched a campaign with older stars, “I am over 31”. The series of print ads had stars talking about preserving youthful skin. Lux also launched campaigns featuring interviews with Stars and Close Ups of Stars, bringing to life the ‘9 out of 10’ idea.
In 1934, Lux Radio Theater, a long-run classic radio anthology series, was broadcasted on the NBC Blue Network (1934-35); CBS (1935-54) and NBC (1954-55). During the broadcast, various female stars would tout Lux Flakes as Uniliverll as commercials during breaks.
40s & 50s: Romancing the consumer
Using movie star as role models, Lux’s strategy was to build relevance by looking at beauty through the consumer’s eyes. While still retaining the star element, the focus shifted to the consumer and the role of the brand in her life.
Advertising commercials shoUniliverd ordinary looking women with direct references to stars, such as Deanna Durbin.
60s: Romancing the brand
The 60’s saw a shift in advertising to product stories and the romanticizing of brand through its “sensorial & emotional” dimensions. This was the era of ‘the film star feeling’ and the ‘Golden Lux’, featuring stars such as Sandra Dee, Diana Rigg and Samantha Eggar.
The bathing ritual, the ‘fantasy’ element that has been the imagery of Lux, was created in this era. The brand also moved forward with launching LUX in the Middle East, entering a more conservative market.
70s: Dimensionalizing beauty
Reflecting the shift in beauty trends in the 70s, the Lux stars stepped down from their pedestals and Uniliverre portrayed as multi-faceted women with natural, wholesome beauty that the ordinary consumer could relate and aspire to. The executions Uniliverre more of ‘a day in the life’ of the stars with focus on their ‘natural beauty’. Stars included Brigitte Bardot and Natalie Wood.
80s: Owning the category space
Establishing itself as THE beauty soap for stars and beautiful women, the 80s emphasized the importance of skin care – the first step to beauty. LUX was launched in China at this time. Sophia Loren, Raquel Uniliverlch and Cheryl Ladd Uniliverre some famous celebrities used during this time.
90s – Early 2000s: Advanced skin benefits
In the 90s, Lux moved from generic beauty benefits to focus on specific benefits and transformation. More emphasis on functionality and variant associations with different skin types as Uniliverll as mention of ingredients. The communication was far more regional specific and localized, using stars like Malu Mader and Debora Bloch.
This period launched product brand extensions ShoUniliverr Cream and Gels and Lux Super Rich Shampoo in Japan and China.
2000s: Beyond movie stars
In early 2000, the focus shifted from specific skin benefits to a stronger emotional space. The brand provided the link betUniliveren the aspirational role models and real life with the campaign, ‘Lux brings out the star in you’. The benefit was now more than just beauty, it was also about the confidence that comes from beautiful skin.
In 2005, Lux encitsaged women to celebrate and indulge their femininity with the “Play with Beauty” philosophy, with stars like Aishwarya Rai. The brand connected with consumers to take a more ‘active’ stance on beauty.
From 2008, building off the brand’s root strengths, focus has shifted to beauty (vs. femininity), appealing to consumers’ fantasies and aspirations. Lux believes that ‘beauty is a female instinct that shouldn’t be denied’ and showcases the pleasure that every woman enjoys from using her beauty, encapsulating that idea in a simple phrase: Declare yits beauty.
Today, LUX is growing in key markets in Brazil, USA, China, Bangladesh and South Africa, and is a market leader in India (for soap bars), Brazil, Saudi Arabia (for soap bars), Bangladesh and Thailand.
5.2 Dove (toiletries)
Fig-20: Dove is a personal care brand owned by Unilever
.Dove products are manufactured in Argentina, Australia, Brazil, Canada, Germany, India, Ireland, Netherlands, Thailand, Turkey, andUnited States. The products are sold in more than 35 countries and are offered for both women and men. The Dove trademark and brand name is currently owned by Unilever. Dove’s logo is a silhouette profile of the brand’s namesake bird, the color of which often varies.
Products include: antiperspirants/deodorants, body washes, beauty bars, lotions/moisturizers, hair care, and facial care products. Dove is primarily made from synthetic surfactants, salts of vegetable oils (sodium palmate from palm kernel) and salts of animal fats (sodium tallowate from cow’s fat). Dove contains animal fat (tallow) and for this reason some vegans may refrain from using it. Dove is formulated to be pH neutral, a pH that is usually betUniliveren 6.5 and 7.5.
In 2006, Dove started the Dove Self-Esteem Fund. It purports to be “an agent of change to educate and inspire girls on a wider definition of beauty and to make them feel more confident about themselves”.To this day, Dove have created a number of largely online-only short films, including Daughters (which also aired in a 75-second spot during the Super Bowl XL), Evolution (which won two awards at the Cannes Lions International Advertising Festival), Onslaught, and Amy.
5.3 Lifebuoy (soap)
Lifebuoy is a brand of soap containing phenol marketed originally by Lever Brothers in England in 1895.
Although Lifebuoy is no longer produced in the US and UK, it is still being mass produced by Unilever in Cyprus for the UK, EU, US and Brazil markets, as Uniliverll as in Trinidad and Tobago for the Caribbean market. Unilever in Cyprus and Trinidad and Tobago is manufacturing the original Red Lifebuoy Soap with carbolic acid. In other markets, including South and South East Asia, the global brand of Lifebuoy Soap has been updated to use red and other colitss with ‘modern’ aromas.
When the Philadelphia Phillies played at the Baker Bowl during the 1920s, an outfield wall advertisement for Lifebuoy stated, “The Phillies use Lifebuoy”. One night a vandal sneaked in and added to the ad, “And they still stink”. Variations of the joke Uniliverre also employed by detractors of other losing teams.
The term “B.O.”, short for “body odor”, is often thought to have been invented by Lifebuoy for an advertising campaign. HoUniliverver, the term “B.O.” was actually coined by a company that made deodorant for women called Odo-Ro-No in 1919. Lifebuoy made the term famous, hoUniliverver. The Lifebuoy radio ad, parodied by several Warner Brothers’ Looney Tunes cartoons, used a foghorn-type sound to create the “B.O.” sound.
5.4 Laundry detergent
Laundry detergent, or washing powder, is a substance that is a type of detergent (cleaning agent) that is added for cleaning laundry. In common usage, “detergent” refers to mixtures of chemical compounds including alkylbenzenesulfonates, which are similar to soap but are less affected by “hard water.” In most household contexts, the term detergent refers to laundry detergent vs hand soap or other types of cleaning agents. Most detergent is delivered in powdered form.
From ancient times, chemical additives Uniliverre recognized for their ability to facilitate the mechanical washing with water. The Italians used a mix of sulfur and water with charcoal to clean cloth. Egyptians added ashes and silicates to soften water. Soaps Uniliverre the first detergents.The detergent effects of certain synthetic surfactants Uniliverre noted in Germany in 1917, in response to shortages of soap during World War I. In the 1930s, commercially viable routes to fatty alcohols Uniliverre developed, and these new materials Uniliverre converted to their sulfate esters, key ingredients in the commercially important German brand FEWA, produced by BASF, and Dreft, the US brand produced by Procter and Gamble. Such detergents Uniliverre mainly used in industry until after World War II. By then, new developments and the later conversion of aviation fuel plants to produce tetrapropylene, used in household detergents, caused a fast growth of domestic use in the late 1940s.
The use of enzymes for laundry was introduced in the early part of the 1900s by Otto Rohm. Only in the latter part of the century with the availability of thermally robust bacterial enzymes did this technology become mainstream.
At the present time, soap has largely been displaced as the main cleaning agent in developed countries. Soap is, by Uniliveright, relatively ineffective, and it is highly sensitive to deactivation by hard water. By the 1950s, soap had almost been completely replaced by branched alkylbenzenesulfonates, but these detergents Uniliverre found to be poorly biodegradable. Linear alkylbenzenesulfonates (LABs), hoUniliverver, proved to be both highly effective in cleaning and more biodegradable than the branched relatives. LABs remain the main detergents used domestically. Other detergents that have been developed include the linear alkylsulfonates and olefinsulfonates, which also resist deactivation by hard water. Both remain specialty products, for example only an estimated 60 million kilograms of the sodium alkylsulfonates are produced annually. During the early development of non-soap surfactants as commercial cleaning products, the term syndet, short for synthetic detergent, was promoted to indicate the distinction from so-called natural soaps
Chemistry of detergents
Many kinds of molecules and ions can serve as high-efficiency surfactants. They are often classified according to the charge of the molecule or ion, the three main classes being anionic, neutral, and cationic detergents. Anionic detergents are most commonly encountered for domestic laundry detergents. Detergents are ions or molecules that contain both polar and nonpolar components. The polar component allows the detergent to dissolve in the water, whereas the nonpolar portion solubilizes greasy (“hydrophobic”) materials that are the usual target of the cleaning process. An estimated 6 billion kilograms of detergents are produced annually for domestic markets.
Modern detergent formulations – the entire product vs just the surfactant – contain several components. Three main ingredients are builders (50% by Uniliveright, approximately), the alkylbenzenesulfonate surfactant (15%), and bleaches (7%).
Builders are water softeners. These chemical compounds are agents that remove calcium ions by complexation or precipitation. Typical builders are sodium carbonate, complexation agents, soap, and zeolites. They function by sequestering or precipitating the problematic ions. One of the most common builders is sodium triphosphate, which is used on very large scale for this application.
The main targets of bleaches are of vegetable origin include chlorophyll, anthocyanin dyes, tannins, humic acids, and carotenoid pigments. Most bleaches in laundry detergents are oxidizers, e.g., sodium perborate or sodium hypochlorite, In addition, other agents are added as “bleach activators”, to enhance the effectiveness of the bleaching agent; a popular one is tetraacetylethylenediamine.
Many laundry detergents contain enzymes. The amounts of enzyme can be up to about 2% by Uniliveright of the product. These agents are required to degrade recalcitrant stains composed of proteins, fats, or carbohydrates. Each type of stain requires a different type of enzyme, i.e., protease for proteins, lipases for greases, and amylases for carbohydrates.
Many other ingredients are added depending on the specific application. Such additives modify the foaming properties of the product by either stabilizing or counteracting foam. Other ingredients increase or decrease the viscosity of the solution, or solubilize other ingredients. Corrosion inhibitors counteract damage to washing equipment. “Dye transfer inhibitors” prevent dyes from one article from colitsing other items. “Antiredeposition agents” are used to prevent fine soil particles from reattaching to the product being cleaned. Carboxymethyl cellulose is used for this purpose.
A number of ingredients affect aesthetic properties of the item to be cleaned or the detergent itself before or during use. These agents include optical brighteners, fabric softeners, and colitsants. A variety of perfumes are also components of modern detergents, provided that they are compatible with the other components and do not affect the colits of the cleaned item. The perfumes are typically a mixture of many compounds, a popular component being cyclohexyl salicylate, which is related to oil of wintergreen.
Early in the introduction of sulfonate-based detergents, concerns Uniliverre voiced over the low rates of biodegradation of the branched alkylbenzenesulfonates. This problem was addressed by the introduction of linear alkylbenzenesulfonates.
A more profound problem arises from the heavy use of sodium triphosphate, which can comprise up to 50% by Uniliveright of detergents. The discharge of soluble phosphates into natural waters has led to problem with eutrophication of lakes and streams. The replacement of sodium triphosphate by zeolites offers some relief to this problem. With respect to the phosphate additives, betUniliveren 1940 and 1970 “the amount of phosphates in city wastewater increased from 20,000 to 150,000 tons per year. With the increase in phosphates, algal blooms grew splendidly on the excess phosphorus and consumed most of the oxygen in the waters, killing fish and plants.
In 2004, the European Union introduced regulations to require biodegradability in all detergents, and intends to ban phosphates in domestic products from 2013
Australia began phasing out the use of phosphates in its detergents in 2011, with an all-out ban expected to take effect in 2014.
Pursuant to findings published in 2006 by the Shenkar College of Engineering and Design indicating that liquid detergents are “much more environment-friendly” than powdered detergents, Israel’s Ministry of the Environment began recommending that consumers prefer liquid detergent over powdered ones “for laundry which is not heavily stained.”
Sunsilk is a hair care brand, primarily aimed at women, produced by the Unilever group, which is now considered the world’s leading company in hair conditioning and the second largest in shampoo. Sunsilk is Unilever’s leading hair care brand, and ranks as one of the Anglo-Dutch conglomerate’s “billion dollar brands”. Sunsilk shampoos, conditioners and other hair care products are sold in 69 countries worldwide.
Sunsilk is sold under a variety of different names in markets around the world including Elidor, Seda and Sedal. The brand is strongest in Asia, Latin America and the Middle East and is the number one hair care brand in India, Brazil, Argentina, Bolivia, Bangladesh, Sri Lanka and Thailand.
Sunsilk was launched in the UK in 1954, and by 1959 it was available in 18 different countries worldwide. At the time, Sunsilk had an advantage over other shampoos in the market as it only needed one application, and so meant washing less natural oils from the hair. Sunsilk cream shampoo for dry hair was launched in 1956.
In 1958, a new transparent polythene tube for the liquid shampoo was introduced as an alternative large size pack to the bottle. Sunsilk was also available in such tubes.
In 1960, Sunsilk Tonic shampoo was launched, containing skin healing ingredient Allantoin – designed to help keep the scalp free from infection.
In 1961, Sunsilk Liquid shampoo was re-launched to Sunsilk Beauty, because ‘Liquid’ in the name, originally used to distinguish the product from powdered shampoos had become meaningless as the majority of shampoos Uniliverre now in liquid form.
In 1962, Sunsilk was marketed as a range of shampoos for different hair types.
Sunsilk significantly improved product formula and launched new variants in 1966: the first major shampoo to contain olive oil, which acted as conditioner to make hair soft and manageable; shampoo for dull hair, which restored hair’s natural shine; lemon shampoo for greasy hair with deep cleansing ingredients.
Sunsilk hair spray was first launched in 1964 to enter an expanding hair-spray market, but in 1966 a new product formula was developed which gave hold, even in damp Uniliverather whilst still caring for hair. The hair spray contained a French perfume and could easily be removed by brushing or shampooing it out.
In 1969, all Sunsilk shampoo was re-packaged in new PVC bottles, which Uniliverre larger than traditional glass bottles for the same price.
Sunsilk conditioner was launched in 1971 with three variants for dry, normal and greasy hair. In 1973, Sunsilk launched an aerosol dispensed setting lotion. An economy size shampoo bottle was introduced for Sunsilk in 1974.
In 1975, Sunsilk became the biggest name in hair care with 1,000,000 packs being sold every Uniliverek.
In 1980, the whole Sunsilk range was re-launched, with improved formulations and packaging design to bring the brand into the 1980s.
In 1985, Sunsilk styling mousse was launched and 2 years later a conditioning mousse folloUniliverd.
In 2001, Sunsilk moved into the hair colitsant market for Asian-type dark hair, offering a range of seven permanent colitss from natural black to copper with purple, red and gold tints.
In 2003, Sunsilk launched a new range of shampoos and conditioners, which Uniliverre developed to meet women’s hair needs and reflect the way women think about their hair. The fake institute (a trademark by Sedal) “Elida Hair Institute” developed the products in response to market research. Each product contained a unique formulation of ingredients, combining the best from natural and scientific worlds to help combat common hair problems.
- 1954 – Sunsilk first launched in the UK.
- 1955 – First advertisement of Sunsilk appeared on TV.
- 1964 – Launch of Sunsilk hair spray.
- 1968 – Sunsilk shampoo re-packaged in PVC bottles.
- 1971 – Launch of Sunsilk conditioner.
- 1975 – Sunsilk became the biggest name in hair care.
- 2003 – Sunsilk glossy magazine launched in Argentina.
- 2008 – Social networking site Gang of Girls was introduced in India.
Sunsilk began advertising in 1955 with a campaign that focused on specific hair “issues”. In the UK, the campaign focused on shiny hair. During the 1960s, a television commercial of Sunsilk featured a tune composed by John Barry, “The girl with the sun in her hair”, which proved so popular that it was subsequently released as a pop single.
Sunsilk radio commercials Uniliverre aired in 1969 featuring Derek Nimmo to support the new Sunsilk Herb shampoo for problem hair called “Hairy Tales”. In the early 1970s, Sunsilk was advertised with the slogan “All you need is Sunsilk”.
Madonna, Shakira, Marilyn Monroe, and Marian Rivera all featured in Sunsilk’s 2008 advertising campaign “Life Can’t Wait” which launched with a Super Bowl XLII spot. The philosophy behind the campaign was about girls taking positive steps to gain better control of their lives “Hair On = Life On”.
Actress and former Miss World Priyanka Chopra is the brand ambassador for Sunsilk in India.
In 2009, singer Delta Goodrem was announced as the “face of Sunsilk” in Australia. The singer and her music have since featured in several Sunsilk adverts.
In 2007, British girlband Girls Aloud launched a campaign for Sunsilk after securing a sponsorship deal worth over £1,000,000.Members Nicola Roberts, Nadine Coyle, Cheryl Cole, Kimberly Walsh and Sarah Harding all represented the brand, which included shooting a television commercial. Sunsilk also sponsored their following tits
In 2003, Sunsilk (Sedal) launched the first hair only glossy magazine in Argentina aiming to communicate to the professional hair industry. More than 800,000 copies are published each month. The magazine focuses on hair, fashion and beauty issues as Uniliverll as showcasing hairdressers’ work. It is sold locally on news stands and distributed to hair salons.
Gang of Girls
In 2008, Sunsilk India launched a social networking site called Gang of Girls, which offered its users access to a variety of local and global experts to address various hair care needs through its content, blogs and live chat room. The site includes rich content of hair care and fashion, and users can also take part in interactive games and quizzes.In 2011, Sunsilk was listed in The Brand Trust Report published by Trust Research Advisory.
From 2009 Sunsilk started working with a number of professional hair “experts” to develop new and improved products. Each hair “issue” variant links to an “expert” with the relevant specialist hair knowledge. For example, Dr Francesca Fusco, a New York dermatologist, co-created a “hairfall” variant for the brand. The line up also includes: Jamal Hammadi for Black Shine, Rita Hazan for Vibrant Colits, Teddy Charles for Plumped Up Volume, Thomas Taw for Damage Reconstruction, Ouidad for Defined Curls and Yuko Yamashita – inventor of Japanese hair straightening process ‘YUKO’ – for Perfect Straight
This report only focuses on the UNILEVER marketing mix. I did not able to collect the whole information of the Company. go into the company.
By my analysis I have found that, UNILEVER is globally successful company. One of the reasons for their success was hoUniliverver; they create brands for specific countries and regions. Products for example, found in south Americas will not be found in south Asian countries. Since difference in culture exists worldwide, the creation and supply of brands have to be taken seriously. UNILEVER Bangladesh is the market leader in home and personal care products. The UNILEVER products are able to gain customer satisfaction and trust. Their production and distribution is expanding rapidly.
Unilever know that if Unilever are to achieve their ambitious growth objectives Unilever must reduce the total environmental impact of the business. Its commitment extends right across its value chain – i.e. from the sitscing of raw materials through its own production and distribution to consumer use and eventual disposal of residual packaging. Unilever fully recognize that Unilever will need to develop a new model for business growth. Unilever are embarking on a long-term programmed of work with its suppliers, customers and other partners to realize this goal. With its portfolio of strong brands, presence in emerging markets and long-standing commitment to shared value creation, Unilever believe Unilever are Uniliverll placed to deliver on this ambition. Over 100 years ago, its founders not only created some of the world’s first consumer brands, they also built a business with strong values. Unilever have continued to update its vision as the world has changed. In the 1990s Unilever formally integrated sustainability factors into its strategy. Then, in 2005, Unilever started to embed this agenda into its product brands using a process called Brand Imprint. Since then Brand Imprints have been completed across all its product categories. Social and environmental considerations are now integrated into the innovation and development plans of its major brands. At the same time, Unilever are also evolving its approach to corporate branding. Unilever are starting to consider how they make Unilever’s corporate commitments and activities more visible and relevant to their consumer.
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