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Date of submission

A Report on Unilever
AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH

School of Business Administration


Economic Geography

SEC: B
Prepared and submitted by-
(Group:1)
Course Instructor: Khan, Sohrab Rahman

Name ID
Islam Md Monirul 07-07684-1
Shanta Naudita Ghosh 07-08258-1
Shirin Jahan Ruma Akhter 05-06127-3
Alam Md Rakibul 07-07785-1
Ohidullah MD 07-07679-1
Khan MD Saquib 07-07642-1
TABLE OF CONTENTS

• Acknowledgements

CHAPTER 1: Introduction
1.1About The Topic
1.2 History & Origin

CHAPTER 2: Description
2.1: Core Business
2.2: Sales Revenue and Value of Stocks
2.3: Manufacturing Globally
2.4: Major selling products
2.5: Market Share and Competition
2.6: SWOT analysis

CHAPTER 3: Conclusion

Attachments: References (1)


Acknowledgements

BISMILLAHHIR RAHMANIR RAHIM. At first we


would like to great thank our Almighty Allah for
his blessing, which gave us patience to do this
i m p o r t a n t r e s e a r c h s u c c e s s f u l l y.

First we want to thank our respective course


teacher Mr Sohrab Khan for his co-operation.
Despite his busy schedule, he has helped us a lot to
prepare the assignment. Our whole research was
based on his proper guidance and framework. This
study gave us a chance to look into the operation of
a globally successful company-UNILEVER.

We a l s o l i k e t o t h a n k t h o s e w e b d e v e l o p e r s w h o
develop the web sites which help us to make our
concern.
Chapter 1: Introduction

1.1: About Unilever:

Unilever is a multi-national corporation, formed of


Anglo-Dutch parentage that owns many of the world's
consumer product brands in foods, beverages, cleaning
agents and personal care products. Unilever employs
nearly 180,000 people and had worldwide revenue of
almost €40 billion in 2005.

Unilever is a dual-listed company consisting of Unilever


NV in Rotterdam, Netherlands and Unilever PLC in
London, England. This arrangement is similar to that of
R e e d E l s e v i e r, a n d t h a t o f R o y a l D u t c h S h e l l p r i o r t o
their unified structure. Both Unilever companies have
the same directors and effectively operate as a single
business. The current non-executive Chairman of
U n i l e v e r N . V. a n d P L C i s M i c h a e l T r e s c h o w w h i l e
Patrick Cescau is Group Chief Executive, who will retire
at the end of 2008. Mr Paul Polman will succeed Patrick
Cescau as Group Chief Executive. The company is
widely listed on the world's stock exchanges. [1]
1.2: History & Origin

Unilever was created in 1930 by the merger of British


s o a p m a k e r L e v e r B ro t h e r s a n d D u t c h m a rg a r i n e
p r o d u c e r M a rg a r i n e U n i e . I t w a s a v e r y l o g i c a l m e rg e r,
as palm oil was a major raw material for both margarines
and soaps and could be imported more efficiently in
larger quantities.

By 1980 soap and edible fats contributed just 40% of


profits, compared with an original 90%. In 1984 the
company bought the brand Brooke Bond (maker of PG
Ti p s t e a ) .

In 1987 Unilever strengthened its position in the world


s k i n c a r e m a r k e t b y a c q u i r i n g C h e s e b ro u g h - P o n d s , t h e
maker of Ragú, Pond's, Aqua-Net, Cutex Nail Polish,
P e p s o d e n t t o o t h p a s t e , a n d Va s e l i n e . I n 1 9 8 9 U n i l e v e r
b o u g h t C a l v i n K l e i n C o s me t i c s , F a b e rg é , a n d E l i z a b e t h
A rd e n , b u t t h e l a t t e r w a s l a t e r s o l d ( i n 2 0 0 0 ) t o F F I
Fragrances. In 1996, Unilever purchased Helene Curtis
Industries, giving the company "a powerful new presence
in the United States shampoo and deodorant market". The
purchase brought Unilever the Suave and Finesse hair-
care product brands and Degree deodorant brand. In 2000
the company absorbed the American business Best
Foods, strengthening its presence in North America and
extending its portfolio of foods brands. In a single day
i n A p r i l 2 0 0 0 , i t b o u g h t , i r o n i c a l l y, b o t h B e n & J e r r y ' s ,
known for its calorie-rich ice creams, and Slim Fast.[2]
Chapter 2: Description

2.1: Core Business:

U n i l e v e r ’s c o r e b u s i n e s s i s t h e f o o d b u s i n e s s . I t i s t h e
no. 3 in the food business after Nestle and Kraft foods.

Anglo-Dutch Unilever maker of Knorr soups, Hellmann's


mayonnaise and Skippy peanut b u t t e r, reported
underlying 2006 sales growth of 3.8 percent in 2006.
Wi t h i n t h a t , i t s f o o d s r o s e j u s t 2 . 9 p e r c e n t , w h i l e s a l e s
in the HPC unit, which sells soaps and deodorants, grew
4 . 7 p e r c e n t . " We e x p e c t t h a t f o o d g r o w t h w i l l c a t c h u p
eventually with that of HPC, but we are not giving a
timescale," Alan Jope, global foods vice president for
U n i l e v e r, s a i d a t t h e R e u t e r s F o o d S u m m i t i n C h i c a g o o n
We d n e s d a y. H e h i g h l i g h t e d t w o p r o d u c t s t h a t a r e
spearheading its "vitality" program toward healthier
eating -- a yogurt-based "one shot" drink aimed at
lowering cholesterol levels and a soya-based fruit drink
from South America. One-shot yogurt drinks are now a 3
billion euro market in Europe, and Unilever intends to
launch a product containing plant sterols, which are
claimed to lower harmful cholesterol, on May 21 in the
U.S. under its Promise brand at $1.00 a shot. It has also
launched its South American soya-based fruit drink in
the UK under the Adez brand, and this and a European
K n o r r Vi e f r u i t - a n d - v e g e t a b l e - s h o t d r i n k a r e a l s o u n d e r
consideration for launch into the U.S. market. [6]
2 . 2 S a l e s R e v e n u e & Va l u e o f S t o c k s :

U n i l e v e r ’s m i s s i o n i s t o a d d v i t a l i t y t o l i f e . I t i s
estimated that people around the world in 150 countries
u s e s U n i l e v e r p r o d u c t s 1 5 0 t i m e s a d a y. T h e 2 0 0 6 s a l e s
revenue was 39.6 billion pounds. Which came from the
Americas 13.8 billion (36%), from Europe 15.0 (38%)
billion and from Asia/Africa 10.9 billion pounds (27%).
Unilever has approximately 206,000 employees working
all over the world.

By 2010, Unilever plans to improve its financial


standard by:

• Ungearearing free cash flow in the period 2005-2010 of


€25-30 billion
• Improvement in Return on Invested Capital
• Underlying sales growth of 3-5% p.a.
• Operating margin of over 15% by 2010 after normal
restructuring
• Improving capital and tax efficiency

Va l u e o f S t o c k s :

Unilever PLC ordinary shares are listed on the London


Stock Exchange and as American Depositary Receipts in
N e w Yo r k . E a c h A D R r e p r e s e n t s 1 u n d e r l y i n g o r d i n a r y
PLC share. There are 1 714 727 700 NV ordinary shares
in issue, each with a nominal value of €0.16. There are 1
310 156 361 PLC ordinary shares in issue, each with a
nominal value of 3 1/9 pence. The equalization
agreement between NV and PLC is such that each NV
ordinary share has the same rights and benefits as each
PLC ordinary share.
(Unilever NV ordinary shares are listed on the stock
e x c h a n g e s i n A m s t e r d a m a n d a s N e w Yo r k s h a r e s o n t h e
N e w Yo r k S t o c k E x c h a n g e . )
2.3: Manufacturing Globally:

Unilever now owns about 400 brands, many of them local


that can only be found in certain countries. Unilever
markets its products to 150 countries. Unilever
has a portfolio of brands that are popular across the
globe - as well as regional products and local varieties
of famous-name goods. This diversity comes from two of
our key strengths; (1) Strong roots in local markets and
f i r s t - h a n d k n o w l e d g e o f t h e l o c a l c u l t u r e . ( 2 ) Wo r l d - c l a s s
business expertise applied internationally to serve
consumers everywhere. The brands fall almost
entirely into three categories: Food & Beverages, Home
and Personal Care.

Food & Beverages:

• Ades or Adez • Du Darfst • McCollins —


— soya-based (Germany) tea (Peru)
drinks • Elmlea — • Mrs. Filbert's
• Alsa — Pourable — margarine
desserts and cream (USA)
syrups available in • Paddle pop —
• Amora — different Icecream
French varieties (UK) (Australia)
mayonnaise • Fanacoa — • Pfanni —
and dressings Mayonnaise, Bavarian
• Annapurna — mustard, potato mixes
salt and wheat ketchup • Peperami
flour (India) (Argentina) • P G Ti p s — t e a
• Becel — also • Findus — (UK)
known as frozen foods • Phase —
Flora/Promise ( I t a l y, U K , cooking oil
; health- Scandinavia) • Planta —
aware: • Flora — margarine
margarine, margarine, • Popsicle —
spreads, l i g h t b u t t e r, Frozen treats
cooking oil, jams • Pot Noodle —
milk, • Fruco — cup noodles
fermented ketchup, • Promise —
milk mayonnaise Becel/Flora
• Ben and and • Ragú — pasta
Jerry's — ice condiments sauces
cream • Fudgsicle • Rama —
• Best Foods — • Gallo — olive margarine
mayonnaise, oil • Royal —
sandwich • Heartbrand — pastas
spreads, ice cream (Philippines)
peanut butter (umbrella • Royco —
and salad logo) stock cubes,
dressings • Hellmann's — non-MSG
• Bertolli — mayonnaise stock (only in
pasta sauces • I Can't Indonesia)
(ambient/chill Believe It's • R e d R o s e Te a
ed & frozen) Not Butter — — tea
and margarine margarine (Canada)
• BiFi - spread • Sana —
sausage-based • Imperial Margarine
snacks Margarine — ( Tu r k e y )
(Germany) margarine • Saga — tea
• Blue Band — • Jif Lemon & (Poland)
family-aware: Lime Juice • Sariwangi —
margarine, • Kecap Bango tea
bread, cream — soya sauce (Indonesia)
alternatives in Indonesia • Scottish
• Bovril — beef • Kissan — Blend — tea
extract Ketchups • Skippy —
• Breyers — ice Squashes and peanut butter
cream Jams (India • Slim·Fast —
• Brooke Bond and Pakistan) diet products
— tea • Klondike — • Sunlight Soap
• Bru — instant Ice cream (Africa)
coffee (India) sandwiches • Surf (Ireland,
• Brummel & • Knorr (Knorr- UK)
Brown — Suiza in • Stork
margarine Argentina) — margarine
• Bushells — sauces, stock • Streets (ice
tea (Australia, cubes, ready- cream)
New Zealand) meals, meal (Australia/Ne
• Calvé — kits, ready- w Zealand)
sauces, soups, frozen • Tu r u n s i n a p p i
ketchup, food range — mustard
mustard, • Lady's Choice (Finland/Swed
mayonnaise, — en)
peanut butter mayonnaise, • Unilever
• Capitan peanut butter Foodsolutions
Findus — and sandwich —
children's spreads professional
frozen food (Philippines) markets (food
• Conimex — • Lan-Choo — service)
Asian spices tea • Unox —
(Netherlands) (Australia/Ne soups, smoked
• Colman's — w Zealand) sausages
mustard • Lao Cai • Va q u e i r o —
• Continental — Seasoning cooking
side dishes • Lipton — tea margarine,
• L i p t o n I c e Te a cooking oil
• Country Crock — ready-to- • Wa l l ' s i c e
— margarine drink tea cream
(partnership
with PepsiCo) • Wi s h - B o n e
• Lizano Sauce salad dressing
(Salsa Lizano)
- Costa Rican
condiment
• Ly o n s ' - t e a
(Ireland)
• Maille —
French
mustard
• Maizena —
corn starch
• Mazola —
edible oils

• Marmite —

Home and personal care brands:


• Ala - • Dove - skin, • Pond's • Sunsilk
laundry h a i r, a n d • Q - Ti p s (Sedal in
detergent deodorant • Rexona Latin
(Argentina- • Fair & Lovely - deodora America,
Brazil) skin care nt Seda in
• Andrelon product • Rinso Brazil) -
• Av i a n c e (available in • Robijn shampoo
• Axe - India and softener and
deodorant,sh Malaysia) • Salon conditioner
ower • Finesse - Selectiv • Sure
gel,bodyspra shampoo and es - • Omo -
y ( Ly n x i n conditioner shampoo laundry
the UK, (sold in 2006 to and detergent
Ireland and Lornamead conditio • Surf -
Australia) Brands, Inc.) ner laundry
• Ay u s h • Gessy (Brazil) (Sold in detergent
(India) • Glorix 2007 to • Swan
• Baba (East (Nederland) River (defunct)
Europe) • Good Morning We s t • Thermasilk
• Brilhante - (Soap Egypt) Brands, - shampoo
laundry • Impulse - Inc.) and
detergent deodorant • Sedal conditioner
(Brazil) • Lever 2000 (known • Ti m o t e i -
• Brut - • Lifebuoy in shampoo
cologne (Malaysia,Singa Brazil and
• Caress - p o r e , Vi e t n a m , as Seda) conditioner
soap Bangladesh, shampoo • Va s e l i n e
• Cif - India, Pakistan, and body
cleaning Indonesia) conditio lotion,
• Clear - anti- • Linic - dandruff ner shower
dandruff shampoo • Signal gel,
shampoo • Ly n x - (dental deodorant
(Philippines, deodorant, care) ( Va s e n o l i n
Vi e t n a m , men's • SR Portugal,
Indonesia, • Ly s o F o r m - -Dental Brazil,
Pakistan, home care • Skip - Italy and
Poland, (Italy) laundry Spain)
Hungary) • Lux - women's detergen • Vi b r a n c e -
• Close-Up - soap, shower t shampoo
To o t h p a s t e gel, and lotions • Snuggle and
• Comfort (Caress in the (Fofo in conditioner
• Cream Silk - US) Brazil) - • Vi m
conditioner • Minerva - fabric (Banglades
(Philippines, laundry and softner h, India,
Brazil, dishwasher • Suave Pakistan)
Kenya) detergents • Sun - • Vi n ó l i a -
• Degree (Brazil) dishwas soap
• Mist (Soap her (Brazil)
• Domestos Egypt) • Sunil • Wi s k -
(Poland, • Pears laundry
Czech Tr a n s p a r e n t • Sunlight detergent
Republic, Soap • Xedex
H u n g a r y, • Pepsodent -
Spain, dental • Zhonghua
G e r m a n y, To o t h p a s t e
I t a l y, I s r a e l , • Persil
France, (IE/UK/FR/NZ)
Tu r k e y )
[ 3 ]
( S o u r c e : w w w. w i k y p e d i a . c o m )

2.4:Major Selling Products:

One of the largest consumer goods firms in the world,


Unilever produces numerous brand name foods, personal
care items, and home care products.

 About 54 percent of revenues are generated in the


f o o d s s e c t o r, w h i c h i n c l u d e s s u c h b r a n d s a s K n o r r
soup mixes, bouillons, and seasonings; Amora,
Calvé, Hellmann's, and Wi s h - B o n e dressings;
Bertolli olive oil and other Italian foodstuffs;
Rama, Blue Band, and Country Crock margarines;
Becel and Flora heart-healthy foods; Heartbrand,
Ben & Jerry's, and Breyers ice cream; Lipton tea;
and Slim-Fast weight-management products.
 Approximately 28 percent of sales come from the
personal care area. Brands include the Lux female
beauty line, Dove and Lifebuoy soap, Pond's skin
care products, Rexona deodorants, Suave and
Sunsilk hair care items, Signal and Close Up oral
care products, and the Axe male grooming line, as
w e l l a s s u c h m i s c e l l a n e o u s b r a n d s a s Q - Ti p s a n d
Va s e l i n e

.
 Unilever's third major sector is that of home care
products, which is responsible for about 18 percent
o f t u r n o v e r ; b r a n d s i n c l u d e O m o , S k i p , Wi s k , S u r f ,
and All laundry detergents, Comfort and Snuggle
fabric conditioners and softeners, Sunlight dish
detergents, and Cif and Domestos household
cleaners. Unilever maintains more than 300
production facilities around the world and has
operations in more than 100 countries. About 34
p e r c e n t o f r e v e n u e s o r i g i n a t e i n We s t e r n E u r o p e , 2 2
percent in North America, 18 percent in the Asia-
Pacific region, 13 percent in Latin America, 9
p e r c e n t i n A f r i c a , t h e M i d d l e E a s t , a n d T u r k e y, a n d
4 percent in central Europe/Russia. [4]

2.5: Market share and competition:

To p U n i l e v e r C o m p e t i t o r s :
Company Location
Proctor & Gamble Cincinnati,OH
Kraft Foods Northfield, IL
Nestle Ve v e y, S w i t z e r l a n d

Competitor Comparison
Unilever P & G Kraft Nestle
To p S e g m e n t C/G Foods Consumer Food Food
Care
To p B r a n d Dove Ti d e Mac & KitKat
Cheese
CEO A . B u r g m a n s A . G . L e f l e y R . D e r o m e d i P. L e t m a t h e
Stock per $66.03 $53.76 $30.70 $66.90
share
Growth 15.55% 9.25% 8.2% 11 . 2 3%
Revenues $42.942m $28.2BL $31,010m $69.BL
Revenue - 11 . 9 3% 19% 4.3% -1.93%
Growth
International 100+ 42 150+ 86
Business 3 5 5 6
Segments
Employees 234000 11 0 0 0 0 10600 253000
[5]
(source: Hoovers business Intelligence guide)

2.6: SWOT Analysis:


T h e o v e r a l l e v a l u a t i o n o f a c o m p a n y ’s s t r e n g t h s ,
weaknesses, opportunities, and threats is called SWOT
analysis. In general, a business unit has to monitor key
macro environment forces (demographic-economic,
technological, political-legal, and social-cultural) and
significant microenvironment actors (customers,
competitors, distributors, suppliers) that affect its
ability to earn profits. The business unit should set up a
marketing intelligence system to track tends and
important developments. For each trend or development,
management needs to identify the associated
opportunities and threats.

S . W. O . T

Strength We a k n e s s
• Recognized as a • Dual leadership
g l o b a l c o m p a n y. • Not connecting with
• Strong brand customer
portfolio. • Inefficient
• Strong relationship management of brands
with retailers • Inability to maximize
• Economies of scale. acquisition
Opportunities Threats
• Changing consumer • Decrease in revenue
preferences • String competition
• Increasing need for • To u g h e r business
healthy products climate
• Exchange rates

3. Conclusion:
Our report only focuses on the UNILEVER plc. Our group did not able to actually go
into the company. Therefore a large part of the texts was extracted from web pages. For
every text we copied, we have mentioned the exact references. By our analysis we have
found that, UNILEVER is globally successful company. One of the reasons for their
success was however; they create brands for specific countries and regions. Products for
example, found in south Americas will not be found in south Asian countries. Since
difference in culture exists worldwide, the creation and supply of brands have to be taken
seriously. UNILEVER Bangladesh is the market leader in home and personal care
products. The UNILEVER products are able to gain customer satisfaction and trust.
Their production and distribution is expanding rapidly.
References:

1. About Unilever.(n.d.) Retrieved November 25, 2008, from


http://www.euronext.com/facts.htm

2. Green, P.S. (1996, February 15). ``Unilever Agrees to Buy Helen


Curtis”. New York Times, p.7. Retrived November 25, 2008,from
ProQuest Historical Newspapers The New York Times (1851-2003)
database.

3. Unilever.(2003).Retrived November 25, 2008, from


htttp://www.wikypedia.com.htm

4. Unilever at a glance: (2005-2007). Retrieved November 25, 2008,


from http://www.unilever.com.htm

5. Competitor’s list for Unilever: (2006). Hoovers business Intelligence


guide. Retrieved November 25, 2008, from
http://www.hoovers.com/unilever.htm

6. Jones.D.(2007, March 7). Unilever sees food sales growth


accelerating. Reporters notebook. Retrieved November 26, 2008, from
http://www.Reuters.com/article/food.htm

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