Ayan GhoshAyush AgrawalDivyesh SeksariaDyutiman GangulyGagan GargGaurav NagarRadhika Bansal

About Unilever and lever brothers• Formed by Merger of Margarine Unie and Lever brothers• 70 Countries and 3,00,000 employees• 500 Subsidiaries-Managements by nationals

Core business

Edible fatsdetergentsfood and drinksfrozen foodsagri businesspersonal productsspeciality chem

Presence

North americaEurope ROW

UNILEVER Organization StructureDutch Company

Unie

Unilever

Unilever Board Member heading Product Groups

Subsidiary Company

Operating Company

Lever Brothers

Operating Company

British Enterprise Lever Brothers

Unilever Board Member heading Product Groups

Unilever Board Member heading Product Groups

Subsidiary Company

Subsidiary Company

UCL

Background of Detergent Industry

Market Size of $423 million in 1989 at factory price.

Retail pricing at a 30% premium.1987 and 1988 the market size had grown.Growth after 1988 was not expected.Market split between liquid and powder.

Background contd…

• Liquid detergent share of 9%• Powder detergent clearly dominated the market.• Liquid detergent expected to show decline of 9% in 1989• Powder market to grow by 4% in 1989 and thereby

remain flat.• Liquid detergent basically losing out due to costing.• Performance brand and value brand in powder segment.

Environmental Concerns

Awareness about environment increased to 23% of Canadians

Green Products – Growth 30 % faster than other new products

Phosphates – harmful to marine life

Evolution of Green Sunlight1960s-Launch of non phosphate Sunlight Products

No Govt. regulations – non phosphate products dropped

Current scenario-Reintroduce non phosphate Sunlight Products

Introduction to Loblaws

Defense Strategies for Lever

Retention of ‘Value Consumers’ through sales promotions

Guard its weak front by bringing out new product like “Sunlight Green”

Defense Strategies for Lever

Maintain its current positioning of Sunlight – Fresh, bright and clean

Reduce price on Wisk Liquid Laundry Detergent to maintain its lead in liquid detergent market

Options for Lever Brothers

Defend current Sunlight Phosphate positioning

Launch a new “Green” laundry detergent

Extend Sunlight Powder Detergent brand

Reposition Sunlight Laundry Detergent

Defend current Sunlight Phosphate positioning

• PROS:• Low awareness of phosphate issue.• Nascent stage of “green movement”.• Reduce the expected impact of Loblaws’ launch.

• CONS:• Major advertising and public relations campaign would be required.• Cost of defending phosphates would be unlimited.• Potential volume loss.• Loss of business with Loblaw's.• Not capitalizing on first mover advantage.

Launch a new “Green” laundry detergent

• PROS:• Easier to establish an environmental positioning.• Opportunity to test customer response to an environment strategy.• Significant synergies.

• CONS:• Relaunch costs difficult to justify.• Conflict between existing product and an “environmental” brand.

Extend Sunlight Powder Detergent brand

• PROS:• Generation of incremental volumes.• An attractive option to inculcate line extention.

• CONS:• Huge investment for advertising, promotion, product and packaging

design.• Offering two very different products and letting the customers

decide—hampers reputation and existing positioning.

Reposition Sunlight Laundry Detergent

• PROS:• Allows Sunlight to capitalize on its current position.• Opportunity to gain share in the short term.• Incremental costs would be minimal.

• CONS:• Could jeopardize long term profits and corporate reputation.• Challenge to reposition, given the existing Sunlight family

positioning.

Recommendations

Follow Loblaw’s green strategy and introduce green Sunlight Detergent Powder

The green product will be under the umbrella brand of Sunlight

Positioned as better cleaning at lower price, being eco-friendly

Slowly phase out phosphate based productsGo along with Sunlight liquid products

Sunlight : Product Mix

PRODUCT-LINE LENGTH

Product-Mix Width

DetergentsPowder

Detergents Liquid

Disposable Bar Soap

Detergent Dishwasher

Liquid Dishwasher

Sunlight Laundry Detergent Powder

Sunlight Green Detergent Powder

Sunlight Laundry Detergent Liquid

Sunlight Bar Soap

Dishwasher Sunlight

Sunlight hand dishwashing liquid

Levels of Green Sunlight

Clean clothes

Phosphate free Detergent

Clean wash

Environment friendly

Use for Dry Cleaning

Sunlight Detergent Phosphate to Green

Sunlight Detergent

Brand positioning mapHigh phosphate

Low phosphate

High

pric

e

Low

pric

e

Sunlight Greenclean

Tide Total Regular Sunlight products

Tide variant

Thank You