Strategic Analysis of Unilever

SUBMITTED BY

Group Name: Business Rangers

ID. NAME Remarks

301 Naznin Sultana
311 Akash Chandra Das
316 Sakib Ahamed
317 Md. Khursed Alam
323 Rema Khatun

MBA
(Strategic and International Management)

SUBMITTED TO

Dr. Md. Mesbah Uddin

Designation: Professor
Department of Management
University of Dhaka

Date of Submission: January 13, 2019

 Fast Moving Consumer Goods (FMCG)

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that
are sold quickly and at a relatively low cost. Examples include non-durable goods such as packaged
foods, beverages, toiletries, over-the-counter drugs, and other consumables.
Many fast-moving consumer goods have a short shelf life, either as a result of high consumer
demand or as the result of fast deterioration. Some FMCGs, such as meats, fruits, vegetables, dairy
products, and baked goods are highly perishable. Other goods, such as pre-packaged foods, soft
drinks, candies, and toiletries have high turnover rates. Sales are sometimes influenced by holiday
and/or seasonal periods and also by the discounts offered.
Packaging is critical for FMCGs. To become successful in the highly dynamic and innovative
FMCG segment, a company not only has to be acquainted with the consumer, brands, and logistics,
but also, it has to have a sound understanding of packaging and product promotion. The packaging
has to be both hygienic and customers-attracting. Logistics and distribution systems often require
secondary and tertiary packaging to maximize efficiency. Unit or primary packaging protects
products and extends shelf life while providing product information to consumers.
Major FMCG Companies:
Below are the biggest and top FMCG Companies in World 2018:
1st Place: Nestle
2nd Place: Johnson & Johnson
3rd Place: Procter & Gamble
4th Place: Pepsi
5th Place: Unilever
6th Place: AB InBev
7th Place: Coca Cola
8th Place: JBS
9th Place: Phillip Morris
10th Place: L'Oreal
 Unilever
Unilever is a British-Dutch transnational consumer goods company co-headquartered in London,
United Kingdom and Rotterdam, Netherlands. Its products include food and beverages (about 40
per cent of its revenue), cleaning agents and beauty & personal care products. It is Europe’s seventh
most valuable company. Unilever is one of the oldest multinational companies; its products are
available in around 190 countries.

Unilever owns over 400 brands, with a turnover in 2017 of 53.7 billion euros, and thirteen brands
with sales of over one billion euros: Axe/Lynx, Dove, Omo, Heartbrand ice creams, Hellmann's,
Knorr, Lipton, Lux, Magnum, Rexona/Degree, Sunsilk and Surf.

Unilever was founded on September 2, 1929, by the merger of the Dutch margarine producer
Margarine Unie and the British soapmaker Lever Brothers. During the second half of the 20th
century the company increasingly diversified from being a maker of products made of oils and
fats, and expanded its operations worldwide. It has made numerous corporate acquisitions,
including Lipton (1971), Brooke Bond (1984), Chesebrough-Ponds (1987), Best Foods (2000),
Ben & Jerry's (2000), Alberto-Culver (2010), Dollar Shave Club (2016) and Pukka Herbs (2017).
Unilever divested its speciality chemicals businesses to ICI in 1997. In the 2010s, under leadership
of Paul Polman, the company started gradually shifted its focus towards health and beauty brands
and away from food brands showing slow growth.

Unilever’s Vision Statement

Unilever’s corporate vision is “to make sustainable living commonplace. We believe this is the
best long-term way for our business to grow.” This vision statement puts emphasis on
sustainability, especially among consumers. The following components are notable in Unilever’s
vision statement:

 Commonplace sustainable living

 Best long-term way
 Business growth
Commonplace sustainable living is a core component in Unilever’s corporate vision statement.
This component shows the company’s efforts in changing its products to suit current market
conditions. For example, through sustainable design for home care and personal care products,
Unilever helps consumers reach their goals to integrate sustainability in their lives. The corporate
vision also states that commonplace sustainability is the best long-term way for the business.
Unilever understands the importance of sustainability and other market trends shaping the industry.
Moreover, the vision statement reflects the company’s view of sustainability as a way to maintain
business growth. This vision statement aligns with Unilever’s corporate social responsibility
strategy to address business stakeholders in the consumer goods industry.

Unilever’s Mission Statement

Unilever’s corporate mission is “to add vitality to life. We meet every day needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and get more out of
life.” This mission statement underscores how the company satisfies customers in various aspects
of their lives. The following are the significant components in Unilever’s mission statement:

 Adding vitality to life

 Meeting everyday needs for nutrition, hygiene, and personal care
 Helping people feel good, look good, and get more out of life

Adding vitality to life is a general indicator of business strategy in Unilever’s corporate mission
statement. Such vitality is the value that consumers can expect from the company’s products. The
corporate mission also specifies the aspects of life where such vitality is added. For example,
Unilever’s food products address consumers’ vitality needs in terms of nutrition. Furthermore,
through these products, the company attracts customers who want to feel good, look good, and get
more out of life. The mission statement’s specification of the types of products provides a
foundation for the product mix in Unilever’s marketing mix.