Transcript: = world as a linked system Presence of some of Unilever's brands CSR Dual structure Unilever NV Unilever PLC Cartels => Formed by companies that abuse of their dominant positions in the market 2011: Unilever fined by the EC for an amount of €315.2 million for forming a cartel with P&G and Henkel Introduction Unilever: a multinational consumer goods company Standard of conduct Employees Consumers Obey the law Shareholders Interest of the company Compliance Unilever's CO2 emissions How is innovation a relevant issue for the industry and the firm considered? Why? Role: safeguarding consumer interests and promoting quality in production by promoting fair competition between companies. Summit in Lisbon in 2000 Three domains Environmental Social Economic Unilever's example with the "sustainability living plan" Sustainable projects Vision GLOBALISATION Corporate Purpose European Competition Policy Actions Unilever's R&D annual budget 900 million EU scientific research programmes EU breakthrough technologies New distribution channels Change in the format of the products Promotion of healthier habits Fight the climate change What are the main aspects of the European Environment and of the EU policy that are relevant for this firm? Why? Refreshment Dual action Equalisation agreements Deed of mutual covenants Agreement for mutual guarantees of borrowing => Unity of management operations, shareholders right, purpose and mission 190 countries Subsidiaries in 90 countries Emerging countries 55% "White spaces" Central Africa Myanmar They meet customers needs through continuous innovation carried out by their rich R&D departments. Open innovation => willing to hear external experts solutions or opinions to their own problems. Code of business principles EU Sustainability FMCG Industry LSMS 2061-GROUP 4 De Montigny Jean Esnal Maider Huguet Monica Kalm Svetlana Sargsyan Sofia Stantzos Athina Foods As a consequence, what is the main role of the corporate parent within the firm? EU Eco-label Unilever's sustainable living plan Online meetings 3 "R" Reduce Recycle Reuse Reduce Gaz emissions Healthier products Four product areas WORLDWIDE INTEGRATION Structure of the parent companies = Homogeneity around the world Source: Unilever website FMCG industry advantages: resilient to recessions; constant development Influence on the company Global threats: - Impact of rising prices - Euro zone crisis Global opportunities: - Growing population; - Driving growth of emerging markets Mission Home Care EU Research Communities Global Brands Define the purpose of the company FMCG INDUSTRY Procter & Gamble Nestlé Johnson & Johnson Pepsico Coca-Cola Local Brands “one of the world’s leading suppliers of fast moving consumer goods with strong local roots in 190 countries across the globe.” Business model The sustainable growth The reduction of the environmental impact The increase of positive social impact Foundation agreements Competitive advantages Increasing speed of life and technology development => People expect everyday life products to be updated. The industry has seriously started to take into account customers opinion to conclude in which direction should firm innovation move. WORLDWIDE SIMILARITY Future Intentions What is the stated purpose of the firm considered (beyond profit)? Why? "Think global, act local" Personal Care Source: Unilever website Miguel Pestana, VP of the external affairs of Unilever Unilever Founded in 1930 from the merger of two companies How is globalization a relevant issue for the industry and the firm considered? Why? WORLDWIDE SCOPE = Geographical aspect Source: Unilever website Innovation Level Brothers (UK) Margarine Unie (Netherlands)
Transcript: Description Unilever is a British–Dutch multinational fast-moving consumer goods company 1980-2010 - Unilever bought companies. It is the world's third-largest consumer company Major Competitors Products Number of employees : 163.000 Logo Unilever : largest commercial user of renewable energy in Canada Bullfrogpower is a Canadian electricity retailer operating In British Columbia, the power is generated from 20% wind from Alberta's Pincher Creek facility and the remaining are generated by low-impact hydro in British Columbia Why work in this company? Remuneration Overview The compensation strategy of Unilever is in line with the culture of performance adopted by the company, thus recognizing the people who are dedicated and work hard to leverage the company's results. Salary base - is the fixed payment received monthly. Each year, the salary review is conducted for all employees. Variable remuneration - is measured annually according to the result of the business performance of the team and individual performance. Benefits Medical care; Dental care; Secure group life; Private pension plans; Agreement pharmacist; Parking; Profile Sought To be a trainee at Unilever, undergraduate or graduate candidate to have been completed between June 2009 and December 2011. The program is geared for future company leaders, professionals with experience and vocation in generating new ideas. People committed to getting what you propose, able to adapt to changes and a strong desire to work together. The academic achievements are important, but the candidate will need to demonstrate other aspects, such as creative thinking, analytical, leadership, ability to work as a team and, above all, passion for challenges. Work as a team The end 1972 -Nestle Dna : the key for a healthy life History Foudation Unilever purchased A&W Restaurants -Procter & Gamble 1930 1930's - Expansion to Africa and Latin america Recycling 2010
Transcript: Lipton is one of the world's greatest refreshment brands. It's the world's best selling tea brand, has been established for more than 100 years, and is available in more than 100 countries. - increased intensity of competition - increasing store brands - tougher business climate - constant changing consumer preferences Weaknesses Company Logo - dual leadership - reduced spending for R&D - decreasing sales growth Surf provides you with great cleaning with amazing fragrances - giving your laundry a lift with every wash. CloseUp is developed by Unilever's oral care experts, bringing families around the world a range of scientifically advanced toothpastes and toothbrushes to keep tooth decay away. SWOT Analysis Strengths Threats Sample Advertisement Opportunities 1890s: union of companies 19th Century: start of production 1910s: World War I 1920s: creation of Unilever 1930s: World War II 1940s: R&D 1950s: rising standards of living 1960s: globalization 1970s: high inflation 1980s: recognition 1990s: narrower focus 21st Century: Path to Growth - increasing purchasing power - extended market range Eight of the world's renowned hair experts share a mission - to help women all over the world get hair on their side. Sunsilk is sold in more than 68 countries accross the globe. Knorr's range includes soups, stocks, and sauces flavored to make mealtimes more interesting, more fun, and much more delicious. Other Brands Unilever Core Brands in the Philippines - recognized as a global company - strong brand portfolio - strong relationship with retailers - economies of scale - Path to Growth strategy - pricing power - customer loyalty - large market share - alliances / acquisitions History Article About Its Strategy
Transcript: Marketing strategies of Personal wash: soaps, Laundry: Surf, detergants, Skin care: Dove, Ponds, Hair care: Sunsilk, Oral care: CloseUp, Pepsodent, Deodorants: AXE, Lynx, Food and beverages: Lipton, PG Tips, R&D Company spend huge amount on R&D. Price, quality and variety. Unilever has 400 brands worldwide. Customer rely and believe in the quality of product. Competitive advantage Wide product variety Promotion, marketing and advertising Effective and attractive packaging Research and development Economy of scale Internal attributes of the organization that are harmful to achieving the objective. Unilever has the following weaknesses out of which the strong competitors like P&G, Nestle... OPPORTUNITIES: FINANCIAL SITUATION: New local products Assumptions Market Positioning ECONOMIC: Move operations to undeveloped countries Dove has a very strong share in the overall market up to date. With countless products that ranges from anti Dandruff, Anti Tangle to Dove For Men, they capitalized on every individual in the market and focused their goals into finding out what most expects in a shower and after shower. Unilever has strong competition worldwide by multinational. E.g. P&G, RackittBenckiser, Nestle, etc these are also the companies that operate worldwide, have big market shares, huge product line and millions of customers. UNILEVER MARKET SHARE: Marketing Mix Market targeting: Product legal effects TECHNOLOGICAL: SOCIAL/CULTURAL: New local products are introducing in the market. As the sizes of local companies are small they have fewer expenses and when they provide cheap product they can grab the market share of Unilever easily. Biggest threat nowadays are recession. POLITICAL: Procter & Gamble (P&G) is one their competitor that supplies the almost the same products ranging from hair care, food and household items similar to Unilever. Nowaday's people like to eat healthy food which contains fewer calories and use those products which will not harm their environment. This gives a good opportunity to Unilever to add more and more products in its product line. Price Market Segmenting External conditions those are helpful to achieving the objective. Company needs to focus to move their production operations in undeveloped countries. Their strongest promotion strategy also involves heavy TV and magazine advertising. Celebrities and popular slogans are used as well to promote their products better. Competitor’s Situation External conditions which could do damage to the business's performance. Through critics and huge debate, Dove shampoo has been classified as a very cheap method for good hair maintenance and beauty driven product. Their soap, which is very similar to other regular soap comes in white and pink, with their logo imprinted into the middle. Place Segmenting products according to population is one of Unilever advantage over their competitors. With over 130 years of experience, Unilever is able to know what products and populations’ best corresponds to each other. Health conscious products demand Increase production volumes Emerging new markets Threats: If the government introduces any sort of law for tax or it introduce new limits for production because the product is harmful for human use or natural environment Products of the company Unilever has forecasted a strong growth of consumers in the coming year with an estimated increase of 1 billion customers. Assumptions will be based nearest to the activity of the current year and last year combined to give an overall picture of future growth or loss depending on market activities. Company needs to focus on how to become environment friendly. It needs to focus on its environmental friendly products. Unilever can concentrate to increase production volumes and they can try to increase their availability in the market. By increasing production volumes and availability it is possible to achieve high demands of products. MARKET SITUATION (PEST): Changing life styles Unilever N.V and Unilever PLC comprise of Unilever group and both companies have the same directors. In Unilever PLC, their products consist of food, personal care products and other household products that are trusted by customers globally. The chances of Global competition are growing. New companies are coming with innovation. Unilever will position their products in almost every shelve there is so that they can cover a higher percentage of the overall market. Nowaday's new markets are emerging company can expand their business to cover these markets. Like Russia, Iran, Iraq and Afghanistan. Economic downturn Environmental effects SWOT Analysis: As Unilever operates in more than 100 countries and there are lots of substitute products available in the local market. Because of product quality and extensive R&D company charge higher prices for its products but the local products are much cheaper. Now people are more aware about innovations because of the media.
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Transcript: Solution Benefits Emerging market, by category Detergents $570M Skin care $162m Hair care $182M Shampoo $128M Total ~ $1B Marketing strategy We estimate Unilever's M.S at 20% which equalls to $ 200 M Using the Unispenser, and given 30% over 4 years that In 4 years: With Unispenser 30% MS $1.2b Revenue growth $160M Prototype Competition Lower quality brands Africa's case Sachets India's case For sustainable and green growth in emerging markets ! Pilot in selected market Problem Conclusion Making hygiene affordable redcuing the purchased ammount (Sachet model) using refillable bottles - elimitation of package cost Increasing Unilever revenues access to millions of new clients Increased shelf space capacity Hook customers by visual Product differentiation Reducing carbon footprint less waste less usage of plastic shipping is becoming more efficient Emerging markets consumers cannot afford quality hygiene products (Shampoo, soap, Laundry etc') How to increase revenue by 150M Euro in 4 years? Start here!!! Technical feasability test Production distribution point of sale Plug and play containers placed at point of sale Lock & key Refillable package Leveraging Unilever's capabilities: Brand Distribution/coverage Know how Market potential and financial Projections an easy-to-use bulk dispenser situated in retail stores and allow refilling. Timeline - Summer tasks Technology Market research target markets go to market strategy Show me the money
Transcript: who is the CEO of the company? In 1930 was created the unilever company Kind of job: Factory worker Manager Secretary Drivers ....... Paul Polman Trhee categories: Food Home care Personal care If you can find job in this company: www.unilever.co.uk/carrers The company have 265.000 employees around the world
Transcript: Stress 1940s Lifebuoy vans Place Rotterdam Healthy Workplace Award (2008) Healthy Workplace Award (2007) Coop Award for CSR (2007) own: Flora Heart-Friendly Workplace Products sold in: relax room Lever Brothers (British soap) supermarkets, hypermarkets, discount stores, drugstores etc. Unie (Dutch margarine) 2, CSR (Corporate Social Responsibility) massage (4 million euros) building 40 playgrounds across Hungary Nutrition 3 categories, 180 countries, 6 research centres FMCG (Fast Moving Consumer Goods) industry world's biggest ice cream manufacturer globally 400 brands (25 largest - 70% sales) 160 million times a day four core business areas: Home Care Personal Care Food Speciality Chemicals 1600 900 brands 50 13 categories Advertising The logo... encourage more than 1 billion people improve their health and well-being 1930 merged (palm oil) Hambourg 1950-60s CSR Unilever Sustainable Living Plan supporting the hospitals in Nyírbátor Q&A History sport classes in working hours People commercial TV ads Budapest company bicycles London Headquarters, offices: Food 1980-90s double the business, halve environmental impact Thank for your attention! Sustainability restructuring the business 1, donating 21 million HUF to the OMSZ Personal care Promotion source 100% of our agricultural raw materials sustainably toothpaste, tea, fish fingers Sport "thought-provoking yet entertaining" TV commercials, billboards, endorsement ... 2010 Advertiser of the Year (13 awards) nutrition experts 970 employees (Hungary) Walk the World (global) time-management trainings 171 000 employees (globally) Awards own gym in the office Vitality Programme increased corporate social responsibility (CSR) Home care The heartbrand 3, own canteen Products 180 countries across the globe freeze-dried vegetables, ice cream, canned food 2000-2012
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