unilever presentaion

8/3/2019 Unilever Presentaion

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Unilever

Presented to:

Mr. Yousuf Sharjeel


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Unilever

Presented By:

M. Owais Khalid

Saud Baloch


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UNILEVEROVERVIEW

SWOT ANALYSIS

KEY COMPETITOR

PRODUCTS AND SERVICES OF

COMPETITORS

COMPETITIVE ANALYSIS PRODUCTS AND SERVICES

STRATEGIES

CONCLUSION AND RECOMMENDATION

Topics Will Be Covered


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Created in 1930 as result of a merger

Key player in the food and household productsindustry

Maintains dual headquarter/dual chairpersonapproach

Launched Path to Growth strategy (2000) to revivethe company

Historically grew through acquisitions Every dayaround 160 million people in150 countries will buya Unilever brand.

Unilever Overview


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13 of our brands achieve annual sales of E1 billion ormore. Our top 25 brands account for over 70%of sales.

Dressings E14,232 7. growth 6%

Turnover (millions) Underlying sales growth Icecream and beverages E7,694 5. growth 9%

Operating profit (millions)E7,167

Turnover (millions)E40,523

We have operations in around 100 countries and ourproducts are on sale in about 50 more.

Employees (year end) 174,000

Purchase of goods and services (millions) E29,346

Unilever Overview


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All 22,000 products in our food and beverageportfolio.

Lifebuoys rural hand washing campaign in Indiahas reached 120 million people over 20022008

Our Signal/Pepsodent/Close Up toothpaste brandshave reached more than 44 million children withschool-based oral hygiene programmes over19962008

Achieved a 19%* reduction in our accidentfrequency rate from 20072008

Deliver 15 million school meals to 80,000 childrenin 2008 via our partnership with the United Nations

World Food Programme.

Unilever Overview


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160 million times a day someone buys a Unileverbrand

13 brands with sales of E1 billion or more per year

15 billion invested in advertising and promotion

E927 million invested in R&D Hand washing Day on 15 October 2008. We

worked closely with NGOs, governments and othercompanies to launch the day in 75 countriesaround the world.

Unilever is one of the worlds largest buyers of palm oil. We purchase 1.5 million tonnes a year foruse in products.

We own over 2 million point-of sale ice cream

freezer cabinets worldwide.

Unilever Overview


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Delivered 16 million meals to 76 000 childrenin 2008.

Lifebuoy aims to take its hand washingmessage to 1 billion people by 2012.

Unilever will purchase all palm oil fromcertified sustainable sources by 2015.

Over 19952008, achieved a 68%*reductionin total waste per tonne of production.

Ranked 9th out of 21 in 2008. Sales from developing markets reached 47%

in 2008

Unilever Overview


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By end 2008, around 10 500 people involved and 40 000tree seedlings raised.

Unilever has contributed around Rs. 78 (Mn) to earthquakerelief including:

Rs. 35.5(Mn) to president relief fund

Rs.3.5(Mn) to TCF for long term reconstruction and Re-buildings for the affected areas

4(Mn) of employee contributions to president relief fund

3(Mn) worth of contributions from our overseas Unilever

colleagues from Sri lanka, Turkey, Indonesia & etc In addition the company has donated 5(Mn) worth of goods

for immediate relief including tents, blankets, Tea & Soap.

Unilever Overview


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Mission


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Mission Statement

Unilever's 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.

Look good, feel good and get more out of life


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Achievements


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Achievements

ISO Certification KSE Top


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Achievements

Asian CSR AwardHealth and

Safety Award


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Achievements

TPM Award


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BRANDS


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Brands

22,000 products in our food and beverage portfolio

13 brands with sales of E1 billion or more per year

PERSONAL WASH

TOILET SOAPS

Lifebuoy (3 varieties)

Lifebuoy Gold (2 varieties) Lux (8 varieties)

Breeze


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FABRIC AND HOME CARE

FABRIC WASH

SurfExcel

Power Surf

Sunlight Washing Powder Wheel

HOME CARE

Vim Dish Washer/Scourers

Vim Bar

Vim Powder


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PERSONAL Care

HAIR CARE

Sunsilk Shampoo (4 varieties)

Lifebuoy Shampoo

Harmony Soap

SKIN CARE

Fair & Lovely skin cream and lotion

Ponds skin cream Ponds talc


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DENTAL CARE

Close-up Tooth paste

Pepsodent Tooth Paste

TEA

Yellow Label

Yellow label Danedar

Richbru

Top Star Taaza Leaf

Supreme


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ICE CREAM

Cornetto(3varieties), Feast(2 varieties)

Feast Stickless, Top Ten,Star Cup(4

varieties),Callipo Split Fruiti, Peddle Pop (3varieties),3-D, Solo(3 varieties),Polka Cup

Panda, family Packs

Magnum


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Our foods brands include:

Knorr

Bertolli PG Tips

Magnum

Liptons

Hellmans

Colemans

Foods


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Our home and personal care brands include:

Dove

Cif Persil

Domestos

Sunsilk

Comfort

Lux

Home and Personal Care


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Our home and personal care brands

include:

Signal Vaseline

Comfort

Radiant



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Competitor Comparison


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PRODUCTS OF NESTLE


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Top Competitors Key Measures:

UL

UL KFT PG

Valuation

Price/Earnings 12.86 22.01 16.75


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Per Share Data

UL KFT PG

Last Dividend 68.98 91.80 43.36

Book Value 5.03 15.02 20.84

Revenue 40.52 B 42.2 B 83.5 B


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Profitability

EBIDTA 8.46 B 4.83 B 20.71 B

Operating Margin 14.55% 11.94% 22.13%

Profit Margin 12.42% 6.87% 14.46%

Gross Profit Margin 49.06% 33.25% 51.27%

UL KFT ------ PG


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57%

43%

Foods Division


Revenues: Product Segmentation


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Quick Ratio 12.42 6.87 14.46

Current Ratio 0.83 1.03 0.69

LT Debt to Equity Ratio 62.72 83.73 32.45

ROE 31.67 7.93 17.34

ROA 10.49 5.69 10.61ROIC (Return on Invested Capital) 17.20 8.22 12.51

UL KFT --------- PG

F

inancial Strength


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Competitive ProfileMatrix (CPM)


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Competitive Profile Matrix (CPM)

The competitive profile matrix identifies a firms

major competitors and its particular strength

and weaknesses.

Steps in CPM;Success Factors

Weight (0.00 to 1.00)


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Steps in CPM

Rates (1 to 4);

4= Major strength

3= Minor strength

2= Minor weakness

1= Major weakness


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Competitive Profile Matrix

(unilever)

Unilever P&G KraftSuccess Factors Weight Rating Score Rating Score Rating Score

Quality 0.13 4 0.52 3 0.39 3 0.39

Financial Position 0.15 4 0.60 3 0.45 4 0.60

Market Share 0.16 3 0.48 3 0.48 3 0.48

Technology/innov

ation

0.12 3 0.36 4 0.48 3 0.36

Global Market 0.10 3 0.30 4 0.40 3 0.30

Price

Competitiveness

0.10 2 0.20 3 0.30 4 0.40

R&D 0.14 4 0.56 3 0.42 3 0.42

Customer Loyalty 0.10 3 0.30 3 0.30 2 0.20

Total 1.00 3.32 3.22 3.15


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Largest organizations

Advanced technology

well skilled professionals Good distribution network all over world

Unilever provided creative strategies

Strong marketing and good image creation

Wide distribution channels in both national andinternal markets

Decentralized decision-making

Strengths


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Strengths

High market share

Strong management teams

Efficient HRM department

Strong reputation

Global innovation centers

Understanding local culture


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WeaknessesWeaknesses

Competitors offered better alternative product

Dual co-chair approach and dual companystructure create problems

Lack of high volume brands

Slow sales growth compared with thecompetitors.

Low cash flow


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WeaknessesWeaknesses

Focus on short term strategy

High cost of restructuring Hard to manage and control company

structure

High cost limit promotions in company


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Opportunities

Rural areas are a large prospective market

Employing external job applicants

Gain high market share Introducing new distribution channel

Advertising through e-commerce

Promote its products in new geographic areas

Customer base is increasing with effective marketing


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Opportunities

Take advantage of the changes of technology

Increase cash flow

Gain scale of economies

Decrease its labor cost

Maintaining good relationship

Population expanding at a rapid rate

Current capacity utilization is 80%


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THREATS


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Threats

Product innovation is ineffective

The high competition for market share

increases rapidly

Changes of peoples lifestyle

Political and Economic factors


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Threats


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Threats

Increasing social awareness in society

Unfavorable conditions

Companys image destroyed

Acquisition decision


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ThreatsThreats


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Strategies & Recommendations


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Reported a net loss of $318M

In 2004, underlying sales grew by

only .4%, leading brands by .9% Issued 1st ever profit warning

ahead 3% decline

Lagging behind competitors interms of marketing andinnovation

No. Unileverwas getting there, but getting there too late

Is it working?

Failure to increase advertisingand marketing efforts

Still lack focus and effectivestrategy execution

The company remained toolocal

Unilever plans to discontinuethe Path to Growth Strategy

So whats next?


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Successfully modifyunsuccessful brands

Leading brands increasedsales from 75% to 93%

12 brands with sales of1B+

Consistent growth in

Home & Personal Care Improved overall quality

and growth profile ofFood portfolio

Yes

Global procurement

programs have delivered

2.4B, excess of 1.6B target

Improved capital efficiency Successful integration of

Best foods acquisition

Operating assets have

improved by 9%,

exceeding 6% target

Is it working?


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Competing with the Giants

Giants dominate all

categories

Giants are growing

Giants operate globally

Marketing is a luxury

Misbelief that Marketing

needs big budgets


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It is going to get tough, so we will need to beequally tough in response

Strategies forcompetitors to the employee


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Path to Growth Strategies2001


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Why Path to Growth Strategy

Years of slow performance

Lack of sound corporate strategy

Low-volume brands Small global presence compared to competition

Mediocre performance in emerging markets


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Objectives of Path to Growth

Expectations

Achieve double-digit EPSgrowth

Secure a better competitive

position in global food and

household

Build brand value to gain

pricing power

Top-line sales growth of5-6% annually

Increase operating profit

margins 11% to over

16%

Strategic Targets


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Strategic Issue

What adjustments, both internally and

externally, should

Unilever make to rebuild astrong and focused competitive strategy?


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1. Reorganize and Unilevers organizational

structure.

2. Implement Unilever Believer product and

brand extensions.

Recommendation 1


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Recommendation 1

Strategy Justification

Reduced

effectiveness and

slowed the decision

making process.

Unilever maintained two

business entities, dualchairperson approach

Board and businessresponsibilities conflicted


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One Unilever

An initiative to create an overall umbrella brand

across all Unilevers brands that will eventually

consolidate various businesses under one name


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Recommendation 2

Strategy Justification

Consumers demand high quality products that both are

convenient and delicious Consumers look for new ways to use products

More females are working full time jobs

Large population of single-parent households

Increase consumer focus on health and nutrition


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Recommendation 3

Environmental issues are becoming increasingly

important

Failure to address these issues can damage brand

reputation

LCA is a useful tool to measure, understand and

communicate environmental performance

innovation process, product design

communication with external stakeholders


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