“150 million times a day, someone somewhere chooses a unilever product”
TRANSCRIPT
Origins of Unilever Operational style Strategic style Examples of strategic
style Competitive environment Current strategies
Simon Clift Marketing lessons
learnt Future prospects
Overview
The origins of Unilever
Unilever is an Anglo-Dutch multinational corporation that owns consumer products in;
Food and BeveragesCleaning agentsPersonal care
Created in 1930 from a merger between the British soap maker Lever Brothers and Margarine Unie
As palm oil was a major raw material for both soaps and margarines
Mergers and acquisitions – grew through repeated mergers of companies who usually retained their names and brands. This encourage strong belief and initiative to de-centralise control
Operational Style
•Top 25 brands = almost 75% of Unilever’s sales*.
* As at end 2009
Big global brands
• Deep roots in local cultures and markets around the world give a strong
relationship with consumers and are the foundation for future growth.
Focus on wealth of knowledge and international expertise to the service
of local consumers – a truly multi-local multinational.
• Exceptional standards of performance and productivity, to working
together effectively, and to a willingness to embrace new ideas and learn
continuously.
• To succeed also requires, the highest standards of corporate behaviour
towards everyone we work with, the communities we touch, and the
environment on which we have an impact.
Corporate purpose
• Their strategic focus is to win share and grow volume in every category and
country.
Unilever’s growth priorities
Winning with brands and innovation
● Deliver superior products, design, branding and marketing
● Bigger, better, faster innovations
● Appeal to more consumers across needs and price points
Winning in the marketplace● Lead market development
● Win with winning customers
● Be an execution powerhouse
Winning through continuous improvement
● Lean, responsive and consumer-led value chain
● Drive return on brand support
● Agile, cost-competitive organisation
Winning with people
● Organisation and diverse talent pipeline ready to match our growth ambitions
● Performance culture which respects our values
● Leverage our operating framework for competitive advantage
Strategic Style
Research and Innovation Localisation Diversification into a broad category Multiple segment specialisation - developing
products to target every segment. Serving multiple markets whilst differentiating products in a way that meets needs of each segment
Developing in emerging markets
Current Strategies
Downsizing brand portfolio –stream line the business portfolio to reflect vitality concept
1,500 – 400 master brands Also, acquisition of high profile food brands
Concentrating on emerging markets Understanding different consumer needs Offering products at different price points
Unilever Brands
Localisation Building businesses organically The world's biggest ice cream company Ben & Jerry's
•Of the 6.8 billion people in the world 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. We already reach many more consumers than our competitors in these markets.
The D&E opportunity
% 2004 Sales
% 2009 Sales
North America
23%
Western Europe
38%
D&E 36%
Other developed
3%
North America
16%
Western Europe
30%
D&E 50%
Other developed
4%
Developing and Emerging Market Opportunity
Bottom of the Pyramid
Multi-trillion dollar opportunity
Billions of people out of poverty in the next 10 years
Competitive environment
Key Competitors Proctor and Gamble Nestle Colegate-palmolive Supermarket private lables
The management of the smaller brands slowed down its growth.
Whilst their competitors concentrated on global development and economies of scale.
Simon Clift
First chief marketing officer for Unilever“Unilever was effectively a holding company . That led to a
very complex brand portfolio, with thousands of formulations, positionings, and ways of developing
advertising.”
(Marketing Week)
Centralised marketing culture Concentrates on building the brands New Unilever brand identity
Marketing Lessons learnt
1. Be forward thinking and with constant innovation – looking beyond organisation’s walls.
2. Defend its territory through growth and diversification
3. Bigger is not always better.
companies need to contract and recognise its weaknesses.
Future Prospects
How will Vitality be brought amongst all their brands?
How will they overcome two contradicting values?