unilever ppt
TRANSCRIPT
Presented By:
Amit Dodwani Durva Shastri
Lever Brothers
Margarine Unie
One Unilever
Flow of the presentation:1. 2. 3. 4. 5. 6. 7. 8.
Introduction of the Company The Journey of Unilever Current Industry Data PESTEL analysis for the company SWOT analysis for the company Five force model for the company Core competencies of Unilever Companys Corporate and Business
IntroductionCreated in 1930 as result of a merger Key player in the food and household products industry It is a leading FMCG company which oversees 270 manufacturing facilities across six continents, and its products are sold under 400 brand names across 14 categories of home, personal care and food products. Launched Path to Growth strategy (2000) to revive the company Historically grew through acquisitions
Company PerspectiveOur mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.
Journey of Unilever1872:Two Dutch firms, Jurgens and Van den Bergh, begin commercial production of margarine 1885:William Hesketh Lever establishes soap factory in Warrington, marking the beginning of Lever Brothers
1927:Jurgens and Van den Bergh create dual-structured Margarine Union Limited and Margarine Unie N.V. 1929:Margarine Union/Margarine Unie merges with Lever Brothers to create Unilever, with dual Anglo-Dutch structure.
1937:Reorganization equalizes the assets of the Dutch and the British groups of Unilever; Thomas J. Lipton Company, U.S. manufacturer of tea, is acquired. 1957:Company acquires U.K. frozen foods maker Birds Eye. 1961:U.S. ice cream novelty maker Good Humor is acquired.
1978:Unilever acquires specialty chemicals company National Starch & Chemical 1984:Buying spree begins that will last until 1988 and result in about 80 companies being acquired; Brooke Bond, the leading European tea company, is acquired through hostile takeover
1994:The launch of a new laundry detergent in Europe turns into a public relations disaster when tests reveal that it can damage clothes under certain conditions 1996:Fundamental management reorganization is launched, including the replacing of the special committee with a seven-member executive
1999:Company announces that it will eliminate about 1,200 of its brands to focus on around 400 regionally or globally powerful brands 2000:Unilever acquires Amora Maille, the Slim-Fast and Ben & Jerry's brands, and Bestfoods
Current Industry Data: a comparison
Top Segment Top Brand CEO Stock per share Growth Revenues Revenue Growth International Business Segments Employees
CG/Foods Dove A. Burgmans $66.03 15.58% 42,942M -11.93% 100+ 3 234000
Consumer care Tide A.G. Lafley $53.76 9.25% 28.2 BL 19% 42 5 110000
Food Mac & Cheese R. Deromedi $30.70 8.2% $31,010 M 4.3%% 150+ 5 10600
Food Kit Kat P. Letmathe 66.90 11.23% $69 B -1.93% 86 6 253000
Indian Scenario
Company Name
Net Sales
Net Profit
Operating Profit Margin(%) (%)
(in Rs. Crore)
Growth (%)
(in Rs. Crore.)
Growth (%)
FY'08
FY'08 FY'07
FY'08
FY'08
FY'07
FY'08
FY'07
HUL GCPL Dabur Colgate Marico Proctor and Gamble
13880. 1769.0 13.36 9.38 -4.65 31.76 14.95 14.74 56 6 891.92 17.22 16.05 148.12 21.37 0.68 22.27 2093.6 19.9 3 20
29.7 316.77 25.66 33.3 18.59 17.45
1518.8 14.03 16.02 231.71 44.66 16.4 18.09 18.79 8 1575.9 14.76 31.39 143.41 23.45 17.47 13.29 13.77 9 643.95 18.54 -4.98 131.42 46.3
3
-35.6 27.75 24.14
HULs SOAP MARKETSHARE12 10 8 6 410% 9% 57% 55% 55% 52%
2 0
8%
8%
9% 5%
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PESTEL Analysis:POLITICAL & LEGAL Developed & Developing Economy Free Market Economy & Less Government Intervention ECONOMICAL Cost pressure Inflation
TECHNOLOGICAL R&D Modern Technologies ENVIRONMENT Emphasis on Consumer Health & Safety Standard for Occupational Health and Safety Environmental Care (SHE)
S.W.O.T. Analysis
StrengthsStrong brand portfolio n Strong relationship with retailers n Large scale of operations n Diversified revenue streams nStrong position in most categories nUnmatched Distribution Network nStrong Focus on R & D activities nFocus on Sustainability nPresence across all price pointsn n
WeaknessesDual leadership n Inefficient management of brands n Weak liquidity position nUnfunded Employee Post Retirement Benefits nWeak Performance in Western Europe
OpportunitiesChanging consumer preferences n Increasing need for healthy Products Focus on developing and emerging economies. Personal Care is growing at higher pace in emerging marketsn n
ThreatsStrong Competition n Increasing store brands n Tougher Business Climate n Exchange rates nExpanding in the out-of-home eating markets.
Five Force model of Unilever:Threat from new entrants (Low) Threat of Substitutes (high) Bargaining power of Suppliers (low) Bargaining power of Buyers. (High)
Core competencies:Agricultural Raw Materials Logistics network Food technology & nutrition Communicators
Corporate level strategy:Anticipate the aspirations of the consumers and customers, and thus respond to their needs and wants creatively and competitively. Localize itself to cater the local people of the respective country in which they enter.
ContConfidence among the stockholders. Market leadership over a longer period of the time. Market Development rather than concentrating on market share of the industry
Business level strategy:Focused differentiation : Range of differentiated products offered to differentiated segments of the market. This congruent to the core aspirations of Unilever.
International strategies:Factors that push Unilever to global and local approach:1.
Unilever does not retail under its own name. It uses brand name to illustrate diversity. Unilever modify its product, it makes sure each country retain the local brand. This is so because the company wants top keep standard built over the years. Unilever also has a strong relationship with customers based on the local culture and market. Legal factor.
2.
3.
4.
Marketing strategies:PRICE: Value-pricing strategy and the company uses a similar outstanding value campaign across America, Europe and Latin America.
PRODUCTS: The brand names have a wide range of products and reputation of high quality products. Providing people with access to the best information about food and nutrition so they can make informed choices about their diet, which is vital to well being.
PROMOTION: Advertisements on T.V. Online advertisements Billboards
DISTRIBUTION: Through intermediaries which range from retailer large super stores. Wholesalers and various corner shops as well as off license stores on the streets of cities of various countries.
Boston Consultative Group Matrix
BCG Matrix:Question MarksStars
Latin America
Asia +Pacific
Market Growth
Cash cows
Dogs
UK USA
Africa Turkey
Middle East
Question Marks Stars Best foods
Deodorants
Frozen
Market Growth
Anti- Perspirant
Cash cows
Dogs
Knorr Flora
Slim Fast
Implementation StrategyA Brilliant marketing Plan counts for nothing if it is not implemented properly (Kotler 2000). Who does what Where do they do it When do the do it How do they do it
Some FactsGlobal company with 50% of sales in D&E markets Unilevers top 25 brands contribute 75% of group sales Global market leadership in 7 of our 11 categories
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Thank You