Case Study on Unilever’s Path to Growth Strategy: Is It Working?

I assume that our new brand will be well welcome by the low-income consumer and that Unilever will have a 13% margin. We could have also repositioned Campeiro but it is too well known for being a cheap

Kudler Fine Foods evaluation and examination of the market trends in the industry in which operates presentation takes special interest in this paper. How market trends play a role in the market structure, effect of new companies entering the market, prices, and technology, productivity, cost structure, price elasticity of demand, competitors, supply, and demand analysis, and effect of government regulations will show in following parts of this presentation.

Health and Safety- The Health and Safety at Work Act 1974 is the piece of legislation covering health and safety in Great Britain at work. The Health and Safety Executive, with local authorities is responsible for enforcing the Act and a number of other Acts and Statutory Instruments relevant to the working environment. This is going to be important for Unilever as they will have to look at the business and if they are complying with all these acts for health and safety if they are not then they will be prosecuted if they get caught, they are legally allowed to be inspected at any point without warning.

Unilever Sri Lanka is multi-national company which providing 400 brands spanning 14 categories of home. The company product portfolio includes different worldly recognized brands such as Lipton, Knorr, Dove and Omo. Moreover, Unilever spend €1 billion every year for research and development and owning five laboratories around the world in order to encourage and explore mew things. Further, Unilever consider the customer research as vital part of the organization as it gives the feedback of customers about their current and new products. In present 174000 people work under the Unilever as employees and support thousands of distributors, contractors, and suppliers for their career. Thus, companys’ oral brands such as Mentadent, Peposodent and

G. Industry Analysis – The supermarket and grocery store industry is maintaining throughout the economic crisis that America is currently experiencing. As stated by the Market Report of “Grocery Stores”, “The industry fared well during the economic recession of the late 2000s, as more Americans chose to eat at home rather than go out. During this time grocery stores focused on providing economical food choices for cash-strapped consumers.” However, as the economy continues to improve, more people may choose to eat out which could cause the industry to marginally suffer. Additionally, Supermarketnews.com states, “…the 75

Unilever believes in the sustainable growth and use of renewable sources of energy. It is also very watchful of employee health and has managed to bring down its accidental rate by a high margin. Unilever’s vision includes a better way for living for its consumers and better use of the products that they use. It maintains a high standard of its products by following stringent standards which helps in maintaining consumer satisfaction. Over the years, after working for different social projects like Water conservation and Food for all, it has grown its image as a socially aware and responsible

This report aims to analyse the financial position of Unilever PLC within its daily operating activities and it also compares the company’s performance with its key competitor, the Proctor and Gamble Company (P&G). The report also includes background of both the companies and an industry overview. To better understand the performance of both the companies, the segmental analyses have been done for both region and products. Due to the global crisis, Unilever and P&G both are facing price rise and inflation pressures, also instability in the Eurozone. All these factors are strongly impacting their operation activity and long-term growth decision plan. Finally After a careful examination of the financial ratios of both the companies, we recommend Unilever as a good company to invest as compared to P&G .The reasons for the following can be seen in the report below.

Also, this increased competition among grocers resulted in some going out of business resulting in loss of sales for those vendors. Also, these large grocery chains demands exceeded the ability for small food companies to provide products in such large volume. This forced these small businesses to focus more on smaller markets and also to identify niches in the market that could be exploited. Small restaurants and food chains now became major purchasers of these products. Also, the frequency of the average American eating out increased further adding to the attractiveness of vendor sales to restaurateurs. Also, certain businesses expanded to meet these large demand markets in the grocery and restaurant market. These state of the art production facilities threatened smaller companies without a competitive product or established market. All of these changes resulted in certain drivers coming to the forefront. The first would be the need to reduce volatility. Competitors in the market would need to select markets wisely to reduce the risk of not being competitive or the uncertainty of the marketability of their product. They also would need to increase their ability to diversify into different products. Large food companies may monopolize a certain product making it necessary for other companies to become creative in developing other products or marketing strategies. On the plus side, the ability of a company

A company’s external environment includes all relevant factors and influences outside the company’s boundaries. By relevant means important enough to have a bearing on the decisions the company ultimately makes about its direction, objectives, strategy and business model.

In 2000, Unilever decided to reduce 1,600 brands down to 400 and then select a small number of them to serve as “Masterbrands”. One of the reasons to have fewer brands is to decrease control issues. It is harder to manage so many brands, especially when each one has its own particularities. As Deighton pointed, Unilever’s brand portfolio had grown in a relatively laissez-faire manner. In other words, the company’s brands were created without large interference.

Despite the inconsistent changes in spending from year to year, P&G’s market share consistently increased between 1% and 2% every twelve months (see Figure 1). The question is, with Unilever’s actions in regards to marketing expenditures, is the 15% increase going to be enough to restart P&G’s upward growth of market share?

Unilever is ranked third in the beauty industry with $18.2 billion in 2010 sales. Their personal care division grew 7.9% in 2010. The strongest category resulting in this increase was in their deodorants and skin care division, one of which was the Dove Nutrium moisturizer.

The Unilever Group’s report on ice cream stated that they saw volume growth and share gains in most markets. Specifically they saw a strong performance in Western Europe, Mexico, Indonesia and Australia. Much of this growth was due to the Magnum Gold acquisition and the marketing of this product in these markets. Product quality improvements helped their Klondike line achieve strong results in the U.S.A. The Unilever Group maintained a negative price growth in ice cream. The negative price growth reflected slightly lower gross margins, at constant currency, with commodity costs higher.

There are three external environment components which may impact on restaurant, demographic, Technological and Economic environment.

This helps product development as internal chefs can freely do experiments and explore new food solutions