marketing management
DESCRIPTION
UnileverTRANSCRIPT
EXECUTIVE SUMMARY
Unilever is a British–Dutch multinational consumer goods company. Its
products include foods, beverages, cleaning agents and personal care product. It is the world's
third-largest consumer goods company measured by 2011 revenues (after Procter & Gamble
and Nestle) and the world's largest maker of ice cream. .
Unilever is currently one of the most successful consumer goods companies in the world
and they have set their ambitious targets for growth, in traditional and new markets and
channels, to keep it that way. The global presence of Unilever contributes to its major success
and competitive edge. The corporation sells products in over 150 countries and has annual
sales of approximately $ 46 billion [£31,5bn]. Unilever controls subsidiaries in more than 90
countries and employs 295,000 (in 2000) people. Unilever is one of the world’s top three food
firms after Nestle and Kraft and the world’s second largest packaged consumer goods company
–behind Procter & Gamble.
As one of the most successful consumer goods companies ever, millions of families choose
Unilever brands to feel good, look good and get more out of life. With a huge range of food,
personal care and home care goods sold across the globe, consumers can choose a staggering
330,000 Unilever products. Unilever’s mission is We work to create a better future every day.
We 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. We will inspire people to take small everyday actions that
can add up to a big difference for the world. We will develop new ways of doing business that
will allow us to double the size of our company while reducing our environmental impact.
PART 1: THE GENERAL OVERVIEW OF UNILEVER
1.1 UNILEVER CORPORATION
Foundation history
Unilever was officially established in 1930, through the merger of Lever Brothers, a British
soap manufacturer and Margarine Unie, a Dutch margarine manufacturer. It has since become
one of the largest direct investors in the United States. Unilever is unique in that it has
maintained a dual ownership structure since its inception, governed by an equalization
agreement. Although the company has two legal entities as its parents, one Dutch (Unilever NV),
and one British (Unilever plc), it has only one board of directors4 and reports one set of financial
statements.
Business field
Its products include foods, beverages, cleaning agents and personal care products. Unilever
considers itself the second largest consumer goods firm in the world with over 400 brands,
amongst the largest selling of which are Dove, Flora/Becel, Heartbrand, Hellmann's,
Knorr, Lipton, Lux/Radox, Omo/Surf, Rexona, Sunsilk…
Vision & Mission
We work to create a better future every day. We 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. We will
inspire people to take small everyday actions that can add up to a big difference for the world.
We will develop new ways of doing business that will allow us to double the size of our
company while reducing our environmental impact.
Business achievements
Unilever is currently one of the most successful consumer goods companies in the world
and they have set their ambitious targets for growth, in traditional and new markets and channels,
to keep it that way. The global presence of Unilever contributes to its major success and
competitive edge. The corporation sells products in over 150 countries and has annual sales of
approximately $ 46 billion [£31,5bn]. Unilever controls subsidiaries in more than 90 countries
and employs 295,000 (in 2000) people. Unilever is one of the world’s top three food firms after
Nestle and Kraft and the world’s second largest packaged consumer goods company –behind
Procter & Gamble.
1.2 UNILEVER SUBSIDIARY IN VIETNAM
The formation of UNI VN
Having started its business in Vietnam since 1995, Unilever, one of the world’s leading
consumer goods manufacturers specializing in food, home & personal care products, operating in
over 150 countries, has invested more than USD 300 millions in Vietnam, with a modern
manufacturing site in Cu Chi Industrial Zone. Through an extensive local network of 150
distributors and 200.000 retailers, Unilever Vietnam directly employs more than 1.500 people
and creates nearly 10,000 indirect jobs who work in its third parties, suppliers and
distributors.Today, many of Unilever’s brands such as OMO, P/S, Clear, Pond’s, Knorr,
Lifebuoy, Sunsilk, VIM, Lipton, Sunlight, VISO, Rexona… have become household names in
every Vietnamese family thanks to Unilever’s great efforts since its establishment in Vietnam.
Every day, over 30 million consumers use our products nationwide, contributing to improve the
living condition, health and hygiene of every Vietnamese.
With average double-digit annual growth over the last 16 years, Unilever Vietnam has
actually become one of the most successful foreign investors in Vietnam. In April 2010,
Unilever Vietnam was honored by the President of the State with the 1st Labor Medal for its
excellent business performance and meaningful contribution to the socio-economic development
of Vietnam.
Unilever Vietnam has always taken great efforts not only to succeed its business, but also
to become a good corporate citizen toward the society, community and environment. Many
social and community programs implemented by Unilever Vietnam and its brands such as “P/S
Protects Vietnamese smile”, “Hand-washing with soap for a healthier Vietnam”, “OMO White
Shirts for disadvantaged pupils”, “Micro financing for poor women”... have become typical
examples of an effective public - private partnership that contributes to improve Vietnamese
lives. In 5 year period from 2005 – 2011 alone, Unilever Vietnam, through its Unilever Vietnam
Foundation, has invested more than VND 360 billions in socio-community programs under the
strategic partnerships with relevant government agencies which focus on 4 main areas: Health
and Hygiene with Ministry of Health; Education and Children development with Ministry of
Education & Training; Women Empowerment with Vietnam’s Women Union; Sustainable Tea
Development with Ministry of Agriculture & Rural Development. Many prestigious awards have
been presented to Unilever Vietnam by the Government for its outstanding contribution to social,
community development and environmental protection cause.
1.3 COMFORT BRAND – ONE OF THE MOST SUCCESSFUL PRODUCT
The Market Leader since its launch in Vietnam in 1999, Comfort has been acquiring the
love and loyalty of many consumers who really care for their loved one even in the smallest
things they do. Comfort not only delivers exceptional softness to clothes, but it also offers a
variety of well-loved fragrances some of which are Lily, Huong Ban Mai, rose scent etc.
Comfort Angels Fragrance Angels are the icons for Comfort's long-lasting fragrances. Today.
Interesting facts:
Comfort, which has been ranked the number 1 fabric conditioner in Vietnam with more
than 55% of market share since 1999, lets people “Do the little extra thing for the one you love”
Fabric Conditioners not only "soften" they have a number of other consumer benefits. For
example did you know that Fabric Conditioners can help to prevent fibrillation and matting of
natural fibres which leads to a less open fabric structure and does not allow effective flow of air /
perspiration
In November 2005, thousands of fragrance angels dolls have been given as a unique and
lovable souvenirs to consumers of Comfort.
PART 2: THE SWOT ANALYSIS
2.1 EXTERNAL ENVIRONMENT ANALYSIS
Macro-environment factors
2.1.1 Demographic-economic factors
The first macro-environmental force that marketers monitor is population because people
make up markets. Marketers are keenly interested in the size and growth rate of population in
different cities, regions, and nations; age distribution and ethnic mix; educational levels;
household patterns; and regional characteristics and movements.
Demographic factors
Unilever has carefully conducted research and analysis of the company's business
environment in Vietnam as a basis for devising their marketing strategies.
The first force needs to be monitored is the population, because people makes up markets.
Demographic consists of a set of factors such as: size, structure, growth rate and distribution.
The basic elements of the population environment that marketer must know are: the market
size, population growth rate, age structure of population, family size ......
- Vietnam is the 2nd largest population in Southeast Asia and thirteenth largest one in the
world.
- Large-scale, rapid development speed.
According to the General Statistics Office, Vietnam’s population in total was 87.84 million
people in 2011, include: male population 43.47 million, reach for 49.5% of the total national
population, female population 44.37 million, reach for 50.5%.
- Population density: Vietnam population is unevenly distributed throughout the
countries… The number of people living in urban areas is 25,37 millions people and makes up
30% of the total population. Hanoi and Hochiminh is two largest cities with approximately 7
millions inhabitants in each. Those living in rural makes up 70% of the whole population.
- Young population:
According to the General Statistics Office: Labor force aged 15 and the older in 2011 of the
country is 51.39 million
This is the source to supply human resources and customers to businesses
- Income and standard of living are increasingly improving. Therefore it bring the large
market potential for firms to do business.
Economic factors
Economic environment plays an important role in the movement and development of the
market. Therefore, economic factors affecting consumption, purchasing power and marketing
activities of businesses in general and Unilever in particular. Vietnam is a market offering
ground floor and growing opportunities for both local and foreign companies. Vietnam’s
economic growth rate has been among the highest in the world in recent years, expanding
annually at 5-8.5 percent, while industrial production has been growing at around 14-15 percent
per year. The growing economy will result in people’s increasing consumption demand;
therefore, facilitate Unilever’s operation to become stronger in the Vietnamese market.
Moreover, Vietnam has joined WTO; this is a good chance for many enterprises to compete in a
good and fair condition. There is no afraid that foreign companies will be less favored.
Economic structure:
The economies are more and more developing. The structure of industry are changing in the
development trends of trade and services and narrowing agricultural sector. Perceiving those
things help the company make the products in accordance with market demand, consistent with
the development orientation of the business.
Economic growth rate:
Economic growth rate of Vietnam in recent years continuously ranks high position in the
region, but have not been really sustainable. The economy is quite sensitive to the negative
effects from the outside such as recession global economic lasted from 2007 to now, the inflation
rate, inflation in the last three years in the two-digit approximation have made some business full
of hardship due to rising input costs, people tighten spending, Unilever itself has faced certain
difficulties.
Per capita income:
In recent years, Vietnam has made significant achievements in economic development,
improving people's lives. However, the majority of Vietnamese people are still in middle and
low income level compared to others countries in the region such as Singapore, Thailand,
Philippines, Malaysia, Indonesia etc. Therefore when forming business strategy Unilever can
meet some certain difficulties such as determining which kind of product will be provided to suit
the pockets of the Vietnamese people. The company will solve simultaneously two problems at
one time. It was both adapting their products to local, and producing cheap products on the
market. At the same time, company has to be profitable. This is a really hard problem with
company. However, according to the company’s evaluation, although Vietnamese are low-
income, Vietnamese are crowded and consumption the product of the company is very high. So "
drop by drop, the sea is drained " the company can still conduct business activities in Vietnam
and profit by making products of the company in accordance with the consumer's ability to pay.
Structural changes in the population's spending:
Thanks to economic development, the majority of the population lives improved
significantly. If in the early 90s of the last century when Unilever initially penetrate the
Vietnamese market, the company focuses on the development of the mass market segment and
meet the essential needs of the people with moderate prices, but now the company has started to
develop more high-quality product line parallel with maintaining the influence of governing in
the existing market segments.
Infrastructure of the economy:
The first is the transportation system, communications in large cities, especially in Hanoi
and Ho Chi Minh City have been adequate investment, first par with one of the countries in the
region. Inter-provincial transportation network, districts, communes are renovated and upgraded.
So companies can expand product distribution network into the hands of consumers not only in
big cities but also in rural and remote areas. Internet are unversalized fast. Telecommunications
and postal services reduced significantly compared to before. It allows companies to apply
modern technology in the production process as well as business management process to reduce
costs and improve operational efficiency.
2.1.2 Technological factors
The technological environment is perhaps the most dramatic force now shaping our
destiny. Technology has released such wonders as penicillin, organ transplants, notebook
computers and the Internet. It has also released such horrors as nuclear missiles, chemical
weapons and assault rifles, and such mixed blessings as cars, televisions and credit cards. Our
attitude towards technology depends on whether we are more impressed with its wonders or its
blunders.
The technological environment is changing rapidly. Marketers should watch the
following trends in technology. Internet has been strongly developed in Vietnam since last
decade. People in Vietnam now easily grab a chance to use internet almost everywhere. Internet
becomes a useful tool for not only users but many administrators, companies to expand their
business. There are many online companies which work so effectively and attract many
customers only by the internet. They find it more easily to provide their services just by one click
and customers also find it clear to search information about what they’re looking for. Thanks to
internet development, Vietnamese people have a chance to update and catch up with the
technology all over the world. Vietnamese government pays more attentions on technology
transfer since our infrastructures are still weak and lack. Government already see the important
of applying newest technologies on manufacturing, therefore, they pay more attention and focus
more on research and development fields. Government also requires enterprises concentrate on
this field and invest more capital on it. In recent years, we not only show interest in technology
transfer but also try to catch up with technology situation in worldwide.
Unilever has launched the biggest technological innovation that the spreads market has seen
for more than 60 years with tastier, healthier products.
Innovative technology
Using proprietary technology developed by Unilever R&D in Vlaardingen, Netherlands,
called Cool Blending technology, the secret to this breakthrough lies in the way we can deal with
hard fats – essential ingredients that add structure to margarine.
Less saturated fat
The Cool Blending technology crystallises hard (or saturated) fats in a unique way, creating
better crystal structures than with conventional technology. This allows us to reduce the amount
of saturated fat that we use in the product significantly, whilst the margarine making process
becomes a very simple blending operation of healthy oils, a dairy phase and only a very small
amount of crystallised vegetable fat. In fact, we are able to produce margarines of superior
quality – in terms of taste and texture – with up to 80% less saturated fat than butter.
Reduced environmental impact
Oils and fats are the biggest contributor to greenhouse gas emissions in the manufacture of
spreads and through this method we will reduce the amount of fat we need to use in margarine
production by almost a quarter. By using fewer ingredients, we make a much smaller agricultural
impact and in turn reduce our carbon footprint.
Re-launch of Flora/Becel
As the benefits of this technology fit well with the positioning of Unilever’s Heart Health
brands such as Flora/Becel, the launch of the new recipe has been timed to coincide with the re-
launch of Flora spreads which will be rolled-out across Europe during 2012.
A platform for future innovations
The Cool Blending technology was tested on a new production line in Poland and what
started as a small-scale trial is set to have a big impact. It will both improve the nutritional
credentials of our Heart Health spreads and also create a platform for future innovations across
all brands.
Investment in production facilities
With the planned transition of 125,000 tonnes of margarine to our new Cool blending–
fuelled recipe, we’re investing €35 million to transform six production lines at three European
factories: Purfleet in the UK, Pratau in Germany and Katowice in Poland.
2.1.3 Political-legal factors
Marketing decisions are strongly affected by developments in the political environment. The
political environment consists of laws, government agencies and pressure groups that influence
and limit various organisations and individuals in a given society.
Vietnam is a country with political stability, where there are also many incentives for
foreign investment enterprises. Besides, in recent years, Vietnam’s economy has benefited from
its government ‘s opened-door policy. With a stable political environment and its economic
potential, Vietnam is an attractive destination foreign investors. Especially, the Vietnamese
government has been endeavoring to create a favorable investment environment by continuing to
complete Vietnam’s legal system and introducing important incentives for foreign investors.
Thanks to the preferences, Unilever will definitely grab the opportunity of rapid development in
Vietnam. Besides, Unilever also supports the sustainable economic development of Vietnam and
helps to improve of living standard as well as the condition of the poor. Encouraging the
integration of Vietnam in the world economy by bringing it into the world trading system, and
supporting the process of economic and social reforms.
It is the policy of the Unilever Group to strictly comply with all laws and regulations
relevant to our activities. They participate in discussions on food legislation and regulations
between international organizations, government representatives, industry, the scientific world
and consumer associations. Unilever also applies this policy to environment related matters. In
order to complement that plan, they cooperate with legislators through local industry associations
in order to promote laws and regulations in the field of environment which are reasonable,
rational, realistic, applicable and enforceable. They oppose unjustified bans and any other
discriminatory measures. Unilever favors the harmonization of food regulations in order to
remove existing trade barriers and to avoid the creation of new ones. This applies also to
environmental issues. We favor the exchange of information, of experience and of knowledge
between the various interested parties. Thanks to all these synergies, Unilever can contribute to
valuable discussions and be recognized as an active partner in helping authorities to formulate
comprehensive strategies in the field of the environment.
2.1.4 Social-cultural
Vietnam is a very populous country, placed 13th in top most populous countries in the world
and 3rd place in Southeast Asia areas. Vietnamese growth rate is quite fast, approximately 1
million people per year. Population structure is young with age group from 0-14 account
for 27%, age group from 15-59 is 64% and age group above 60 is only 9% (according to the data
of 2005). Young population becomes one of the most important advantages for Vietnam to
attract many multination companies as Unilever. Since Unilevers’ products including many
products for children care (such as milk, powder milk, cereal, yoghurt, etc.), Vietnam is a very
potential market for Unilever to further explore and develop in the future. Young population is
also the great source for workforce which attracts many foreign investors coming to Vietnam.
Second, the culture in Vietnam found that Vietnamese companies are receptive to what is
new and innovative perspective, attitude greet new ones as long as the new ones fitway of life,
their way of thinking. They prefer consumers new products, new is always better with more
quality is improved, even when they are not aware of a certain product, issues to promote the
company's products also do not see too many difficult, because the Vietnamese people are
curious, the company conducting the promotion, advertising just stimulate their curiosity is a
product that will be successful. In addition, the company also found that Vietnam is very diverse
preferences, consistent with the range of the company's extensive product, the Vietnamese do not
like completely separate one color, such as Chinese favorite color red is the color of happiness,
the Vietnamese are generally varied without the elimination of something related to art, except in
cases related to their habits and customs. On the other hand, the company also plans the company
will find out and understand more about these issues than when companies hire people to work in
Vietnam and joint ventures with Vietnamese partners Vietnamese Nam.Tai the divided into
groups of social capital is not by Vietnam is a poor country and take the path of socialism, so the
problem for the company is to serve a large number of consumers, rather than any group people.
Micro-environment factors
2.1.5 Customers
At any point in time, the firm may deal with one or more customer markets: for example, as
a consumer packaged goods manufacturer, Unilever has to communicate brand benefits to
consumers as well as maintaining a dialogue with retailers that stock and resell its branded
products.
Most of Unilever's brands have become household names in Vietnam. Everyday, more than
5 million of our products reach Vietnamese households. That says a lot about brands like PS,
Clear, Knor, Omo, Lifebuoy, Sunsilk etc. and the presence of these brands in the daily life of
Vietnamese people.
Moreover, Vietnam is a consumer market of huge potential in the same league as several
other markets in Asia, like China, Indonesia etc. Vietnam’s consumer market has, and continues
to benefit from steady economic growth in the past 15 years that has resulted in increased income
for consumers, improved infrastructure, increasingly modernized distribution network, fast
changes in lifestyle and widespread urbanization.
This is also a market with a very young population. All in all, this is a market with great
potential, which will become increasingly competitive. Companies with strong brands that
continuously delight the consumer will have the advantage. It is a very big advantage for
Unilever to develop here.
2.1.6 Competitors
The marketing concept states that, to be successful, a company must provide greater
customer value and satisfaction than its competitors do. Thus, marketers must do more than
simply adapt to the needs of target consumers. They must also gain strategic advantage by
positioning their offerings strongly against competitors’ offerings in the minds of consumers.
In detergents industry, Comfort has become the pride of Unilever, maintaining its
1st position in Vietnam with more than 55% of market share since 1999. However, as soon a s
Comfo r t made i t s appearance known in the market, it has also begun its struggle against
other competitors. The strongest one of all is Downy, the product of Proctor &Gamble group.
Downy was launched right after Comfort was introduced to the market. It can be said that the
number of campaigns and commercials ads poured into the two products from two sides
have been equally effective and attracted attention. That might partly explain the market share
between of the two has been in a tight match. Firstly, the two products are produced by two both
well-known companies, which can somewhat assure their look in customers’ view. Then, the
quality could also buy consumers with their position as worldwide brands plus the diversification
of the product lines gives customers numerous choices to choose. Also, advertisements of
Downy and Comfort have been skillfully customized to attract attention and create certain values
to customers.
From the introduction stage up to now, customers have been exposed to a handful
of advertisements of both companies. When Comfort launches Comfort with lasting-fragrance,
Downy immediately offers this kind as well. Comfort creates a beautiful image of a little angel
protecting the fragrance of clothes to illustrate its Comfort Fragrance-Angel. Downy competes
with Downy Incense Flowers, creating a demonstration through a flower field always presented
in clothes. Comfort introduces Comfort new version; Downy also has Downy new
version; Comfort comes up with Comfort anti-mosquitoes, Downy provides Downy anti bacteria.
Both of them make campaigns to market for their product. About the price, Downy’s price is
higher than Comfort’s one in general. In pack-shape, price for a pack of Downy is 2000VND,
whilst a pack of Comfort costs 1500VND.
In recent months, the battle has become fierce when Unilever has launched a promotion
using two eye-catching characters Andy and Lili and seem to gain attraction from consumers.
From this commercial, Unilever gain the higher revenue. While Unilever invest so much on this
commercial, P&G is still quite silent. Whether P&G is planning a state-of-the-art Downy ever
with outstanding functions and best-ever components; or nurturing a win-away strategy? Time
will give the answer and the rivalry between the two promises to be a prolonging harsh and
unforgiving one.
However, at this point, it appears that Comfort is gaining the upper hand over
Downy. The positioning of Comfort in Vietnam and its biggest competitor, Downy, can be
illustrated through the following map
The major rival in the market is identified as Downy from P&G Company. That
might partly explain the market share between of the two has been in a tight match
Other than Downy, Essence, Vel, and Softlan are considered as Comfort’s secondary
competitors in the Vietnamese market.
2.1.7 Distributors
In 1995, Unilever entered to Vietnam and decided to create a marketing and distribution
system nationwide, covering more than 100,000 locations. Unilever has taken the concept of
online retail sales and used sales staff each retail store. These employees have the tasks of
offering new orders, delivering and crediting for orders next.
The retail display cabinets annual and maximum use of space in their stores and eye-
catching products. In addition, the company also helps its distribution arrange loans to buy
vehicles, training, management and sales organization.
Until the end of 2002 the company currently has about 350 distributors and more than
150,000 retail stores and wholesale products companies across the country. A staggering figure
and means that the company's products flooded the Vietnamese market from remote regions to
the busiest places in urban Vietnam.
The development of the distribution system of Unilever.
Unit: Number of agents
Year
Distribution
channels
1996 1997 1998 1999 2000 2001 2002
Large distributors 57 125 198 250 293 336 350
Wholesale dealers 1.500 3.300 5.050 6.400 7.200 7.900 9.300
Reseller 30.000 50.000 64.000 83.000 96.000 120.000 135.000
With two goals set by the company for its distribution system is always available and
always present, the company's distribution system to this time has achieved the second target.
The success in the implementation of the company's distribution system in Vietnam market have
to talk about the dynamics of the Vietnamese employees for the company, however, could not
mention the financial situation in the economic business of the company is to use the dealer of
Vietnamese business partners of the company perfectly without encountering any problems
regarding personnel and strengthen the distribution system coordination. Any of a marketing
policy relating to the distribution system set out by the company are implimented by the agents
of the company on a national scale smoothly and perfectly.
2.1.8 Suppliers
Suppliers are an important link in the company’s overall customer value delivery
system. They provide the resources needed by the company to produce its goods and services.
Supplier developments can seriously affect marketing. Marketing managers must watch supply
availability – supply shortages or delays, labour strikes and other events can cost sales in the
short run and damage customer satisfaction in the long run. Marketing managers also monitor
the price trends of their key inputs. Rising supply costs may force price increases that can harm
the company’s sales volume. Increasingly, today’s marketers are treating their suppliers as
partners in creating and delivering customer value.
Vinachem (Vietnam National Chemical Group) became the strategic supplier and a part
of global supplying chain of Unilever, apart from the current long-lasting cooperation
partnership between Unilever and Vinachem's subsidiaries. Unilever Vietnam and Vinachem will
work on construction of new base chemicals plants and development of the petrochemical
industry. To cut reliance on imports, Unilever will cooperate with Vinachem and its affiliates to
develop and turn out materials including lab, sodium sulphate, soda ash light, sorbitol and
zeolite. They shall establish manufacturing and supplying plants subject to competitive terms and
actual demand in the future.
Besides the need for procuring key materials to replace imports, Unilever will explore
opportunities for Vinachem to export these materials to other Unilever Group’s companies in
ASEAN, Asia and to Unilever globally. The export will depend on competitive terms, actual
demand and quality requirements of those companies.
Unilever and Vinachem will consider their cooperation expansion to cover other key
materials based on the successful sourcing/supplying of the aforesaid initial materials when
opportunities arise.
As a result, key raw materials will be produced and sourced within Vietnam to help the
country reduce reliance on imports, increase exports, and enhance cost competitiveness of both
parties. In details, Unilever would support and cooperate with Vinachem in producing and
supplying main raw materials in Vietnam, therefore helping lower the dependence on imported
materials, improving the production conditions, enforcing exports.
2.2 INTERNAL ENVIRONMENT ANALYSIS
2.2.1 Managerial model
Framework of an organization refers to the method that people and works are arranged to
support it in reaching the targets and implementing its tasks. The framework of Unilever is the
combination of leaders including executive directors, non-executive directors, senior officials
and staff who all form unity of orders and actions. The Executive directors are those members of
the Unilever executive (UEX), including the group chief executive, who are also directors of
Unilever. Some of them are not Vietnamese.
Organizational Structure Diagram in VN
From 2010 till now, Unilever VN has more than 1500 staff and it indirectly created jobs for
over 7000 people. The company always considers developing human resource as breakthrough
for sustainable growth. Each year, Unilever recruits from 20 to 25 future leaders for the position
in fields of marketing and business (sales), finance and accounting, supply chain, production and
personnel ...Up to now, about 211 students are recruited and trained.
Unilever VN has built up a native professional staff and regularly attach special importance
to training programs. The company always pays attention to the interests of employees and is
willing to support the staff in their work.
Unilerver Vietnam’s sound policies which pay attention to the human resource has built up a
good working environment and professional and responsible staff who all work for the common
mission of the organization.
2.2.2 Working conditions
Creating a comfortable workplace for all employees, reflecting the company’s
mission “adding vitality to life”.
The office is like a “second home” for all employees with completed & convenient facilities
& function rooms such as: gym, beauty salon, canteen & cafeteria. After work, employees can do
exercise, treat themselves and relax here to feel good and have more vitality, thus they can
growth the business together and get more out of life.
Providing a modern office with all the highest standards of a “Green” working
environment.
The building satisfies all the highest requirements for a modern and environment-friendly
workplace: efficient light with less wattage, natural light utilization, energy-saving air-
conditioner system, equipping the energy-saving protecting glass, CO2 censor etc…
Enhancing interaction with customers and consumers.
There are areas specifically designed for consumer and customer interactivity enhancement:
hair care salon, skin care salon, demo & show kitchen and laundry area. All these areas are
opened to consumers and customers to enjoy the innovation of Unilever products under the
instruction of professional experts.
Creating a modern & high-tech working environment.
The Office of Unilever Vietnam has been constructed and well equipped with modern &
high-tech office facilities, meeting Unilever Global standards.
2.2.3 Striking features
Comfort
Comfort was the first Unilever fabric softener to be launched in the UK in 1969. Today
Comfort is a global brand, operating in Europe, Asia, Latin America and the Middle East.
1984 saw the launch of the first concentrated fabric softener for Comfort, which was three
times more concentrated than regular fabric conditioner.
In the 1990s, the Comfort brand went through a number of changes: a new logo and more
modern packaging in 1992 and the first fully biodegradable formulation in 1993. In 1998,
Comfort replaced cartons with more environmentally-friendly and lightweight crushable bottles,
introduced their first hypoallergenic fabric conditioner and launched tumble dryer sheets.
Caring for your clothes is important as it allows you look good and feel good.Understanding
this, in 1999 Market Leader of Unilever Viet Nam launched Comfort withthe aim of making
customers feel cared for everyday by bringing softness and long-lasting freshness to their
clothes. Immediately, Comfort has long been winning the loveand loyalty of consumers with
more than 55% market share and become the number onefabric conditioner in Vietnam.
With the desire to meet the changing needs of consumers, Comfort keeps innovating and
introducing new products to the market.
Not only offering softness and long-lasting freshness, Comfort also offers extra benefits.
- Comfort White which is the only fabrics conditioner endorsed by the Dermatology
Institute of Vietnam that is safe for sensitive skin, is the best choice to protect your skin and
make clothes very soft, which is very suitable for baby’s clothes.
- Comfort Active Confident with tea tree oil extract protects your clothes from malodour
and keeps you feeling fresh and active the whole day long.
- The latest innovation is Comfort Thom Lau Huong Ban Mai (Blue Concentrate) with
fragrance capsules (Hat luu huong) which protects the perfume and only releases it during wear.
This innovation again reinforces the long-lasting benefit of Comfort Blue Concentrate in the
fabric conditioner market.
PART 3: SWOT EVALUATION
In recent years, the competition among consumption markets between Vietnam and
foreign countries became so fierce, especially products originating from multi-national
companies which are currently present and dominant Vietnam market. Unilever -Vietnam is
one of the giants on the market of products and services, it has provided a large number of
essential goods for daily consumption of Vietnam such as toothpaste, P/S, shampoo Sunsilk,
Omo washing powder, etc. ... every year. This is not only a threat to domestic producers but
also an example for them to learn about business marketing experience of a large multinational
company with world-class like it.
It can be said that Unilever has a thoughtful and creative marketing strategy which makes
it well-known to attract the most customers for the company's products. The company takes the
advantage of their inherent strengths as well as promoting the opportunities from the market to
bring huge revenue every year for the company. SWOT analysis below will show all about the
strengths, weaknesses, opportunities as well as threats Unilever gets.
3.1 STRENGTHS
• Unilever Vietnam has the support from global Unilever; therefore it has strong financial
background. The visit of Mr. Paul Polman, CEO of Global Unilever, on 10 th April 2009, again
confirmed the potential of the Vietnamese market which is growing very fast, as well as the
important role of Vietnam in the group of new markets and developing countries of the
Unilever Group.
• An effective policy of attracting potentials: The strategy of the company is that
"Development through people”. Through their career days for students who are about to
graduate of the prestigious universities, the company will find out potential candidate and train
them to become Administrators who set the light for the company's human resources. In
addition, the company also gives high salary, benefits, and courses in Vietnam and also abroad
for staff to enhance their qualification.
• Unilever Vietnam has been adequately invested and focused on Research and
technological development. In particular, R & D works very effectively in the preservation of
traditional products such as shampoo Gleditsia, salt toothpaste. Besides, R&D shows its
effectiveness in the modern products such as Comfort or Omo… Modern technology inherited
from the global Unilever is applied quickly and effectively. Unilever VN makes customers
surprised many times with their new technology. Recently, we see new Comfort which has
essential oil with the advertisement of Comfee family. And how about Omo? The whirlwind-
power Omo is the newest kind.
• The price is relatively acceptable, while the quality is as high as imported goods. The
target customers of Unilever are ranged from children to adults, from low class to high class.
Therefore, the price is set up quite suitable for everyone.
• The staff of Unilever VN not only focuses on the mission of the company but also pays
much attention to the relationship with the public. Besides, the staff has high ability to adapt to
quick changes in the production line as well as market.
3.2 WEAKNESSES
The key positions in the company are held by foreigners. The CEO of Unilever Vietnam
is Ralph Kugler. This may lead to the differences in the perception between CEO and
Vietnamese employees; which is the causes of conflicts.
• There are some technologies which are not applied in Vietnam due to high cost, such as
the input for perfumes… Moreover, the company does not fully take advantage of abundant
and skilled labor resources in Vietnam.
• Because Unilever is the company which originated from Europe, some policies of it
may be not really suitable with Asian culture.
3.3 OPPORTUNITIES
• The policy of Vietnam is to build Vietnam's economy oriented industrialization,
modernization. Therefore VN government always gives priority to attracting foreign
investment, especially from transnational and multinational companies such as Unilever to
increase the budget.
• Domestic markets (wholesale, retail, goods circulation ...) have dramatically developed.
Also infrastructure in major cities, especially Ho Chi Minh City and HN have been
appropriately invested to reach to the level of other countries in the region.
• Vietnam is a country which is freely religious, so the distribution and advertising of
products is not limited. In addition, Vietnam has a young population structure and extended
family models (including grandparents, uncle, etc ...), which creates many opportunities for
Unilever because they are all the target customers of the company.
• Vietnam is located in a relatively favorable position in the region with a long coastline,
many major ports, giving a chance to export goods when Unilever begins to focus on exporting
in the near future. And, Unilever comes to Vietnam when the consumption market here is new,
so it has more favorable conditions to do business.
3.4 THREATS
• Unilever has very strong competitors like P&G, Nestle. These competitors always try to
give tough time to Unilever, make it difficult for Unilever to enter Vietnam market.
• Commercial Code also creates many disadvantages for foreign investors, especially
tariff policies and high tariffs levied on imported inputs which needed for Unilever’s products
such as some kinds of input for perfumes.
• In the context of present consumption markets, there is also greater and greater demand,
many new companies start to enter market and compete with Unilever. As we can see from the
fact that Unilever has to put more and more names in its competitors list.
From SWOT analysis, some suggestions are mentioned to help Unilever Vietnam
continue to be the best consumption brand for Vietnamese customers.
PART 4: CONCLUSION AND RECOMMENDATION