INTRODUCTION

1.1 HISTORY
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his
ideas for Sunlight Soap – his revolutionary new product that helped
popularize cleanliness and hygiene in Victorian England. It was 'to make
cleanliness commonplace; to lessen work for women; to foster health and
contribute to personal attractiveness, that life may be more enjoyable and
rewarding for the people who use these products'.

In a history that now crosses three centuries, Unilever's success has been
influenced by the major events of the day – economic boom, depression,
world wars, changing consumer lifestyles and advances in technology. And
throughout Unilever has created products that help people get more out of
life – cutting the time spent on household chores, improving nutrition,
enabling people to enjoy food and take care of their homes, their clothes and
themselves.

In the late 19th century the businesses that would later become Unilever
were among the most philanthropic of their time. They set up projects to
improve the lot of their workers and created products with a positive social
impact, making hygiene and personal care commonplace and improving
nutrition through adding vitamins to foods that were already daily staples.

Today, Unilever believes that success means acting with 'the highest
standards of corporate behavior towards their employees, consumers and
the societies and world in which we live'. Over the years Unilever has
launched or participated in an ever-growing range of initiatives to source
sustainable supplies of raw materials, protect environments, support local
communities and much more.

Unilever is one of the world's leading food companies. Every day, around the world, people
reach for Unilever products. Their brands are trusted everywhere and, by listening to the people
that buy them; they have grown into one of the world’s most successful consumer goods
companies. In fact more than half a million times a day, someone somewhere chooses a Unilever
product. Their passion is understanding what people want and need from their food and what
they love about it, which makes their brands a trusted part of people's lives. No matter who you
are, or where in the world you are, the chances are that their products are a familiar part of your
daily routine
Company Overview

Unilever proudly declares that every day 150 million people are choosing their brands ‘to feed
their families and clean their homes’. Unilever is one of the world’s top makers of packaged
consumer goods and moves countless products like deodorants, fragrances, soap, margarine, tea
and frozen foods all over the world. The corporation sells products in over 150 countries and has

annual sales of approximately $ 46 billion (£31,5bn). Unilever controls subsidiaries in at least 90

countries and employs 295,000 (in 2000) people.
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with
leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread
across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow
the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000
1
crores. The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With
35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care with
brands that help people feel good, look good and get more out of life. It is a mission HUL shares
with its parent company, Unilever, which holds 51.55% of the equity. A Fortune 500
transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries
worldwide.

Unilever’s Mission

Our mission is to add Vitality to life. We meet everyday

needs for nutrition, hygiene and personal care with brands
that help people look good, feel good and get more out of
life.

1
http://www.hll.com/knowus/index.asp
1.2 FACTS AND FIGURES:
In 1900’s Unilever's founding companies produced products made of oils and
fats, principally soap and margarine. At the beginning of the 20th
century their expansion nearly outstrips the supply of raw materials.
In 1910’s Tough economic conditions and the First World War make trading
difficult for everyone, so many businesses form trade associations to
protect their shared interests.
In 1920’s with businesses expanding fast, companies set up negotiations
intending to stop others producing the same types of products. But
instead they agree to merge - and so Unilever is created.

In 1930’s Unilever's first decade is no easy ride: it starts with the Great
Depression and ends with the Second World War. But while the
business rationalizes operations, it also continues to diversify.
In 1940’s Unilever's operations around the world begin to fragment, but the
business continues to expand further into the foods market and
increase investment in research and development.
In 1950’s Business booms as new technology and the European Economic
Community lead to rising standards of living in the West, while new
markets open up in emerging economies around the globe.
In 1960’s as the world economy expands, so does Unilever and it sets about
developing new products, entering new markets and running a highly
ambitious acquisition programme
In 1970’s Hard economic conditions and high inflation make the '70s a tough
time for everyone, but things are particularly difficult in the Fast
Moving Consumer Goods (FMCG) sector as the big retailers start to flex
their muscles.
In 1980’s Unilever is now one of the world's biggest companies, but takes the
decision to focus its portfolio, and rationalize its businesses to focus on
core products and brands.
In 1990’s the business expands into Central and Eastern Europe and further
sharpens its focus on fewer product categories, leading to the sale or
withdrawal of two-thirds of its brands.
In twenty first century, the decade starts with the launch of Path to Growth, a
five-year strategic plan, and in 2004 further sharpens its focus on the
needs of 21st century consumers with its Vitality mission.
 CHAPTER 2
ORGANIZATIONAL DESIGN

2.1 DIMENSIONS OF STRUCTURE

Structure of Unilever is centralized. Unilever has a geographical structure
and it has regionalized its food divisions. The different departments of
Unilever are detailed below:

GEOGRAPHIC REGIONS

Three regional teams are responsible for managing Unilever’s business in the
regions, and for market operations. They are primarily responsible for
winning with customers and deploying brand events and innovations
effectively. The regions are fully accountable for the profit performance of
our business, as well as growth, short-term cash flows and the in-year
development of market shares.

The Europe region includes our operations in Western Europe and in Central
and Eastern Europe, and in 2006 accounted for approximately 38% of our
business on a turnover basis. The Americas region includes our operations in
North America and Latin America and represented around 35% of our
business. Our Asia Africa region accounted for 27% of our business, and
includes our operations in the Middle East, Turkey, Africa, Asia
and Australasia.

SUPPORT FUNCTIONS

Five support functions (Finance, HR, IT, Communications and Legal) provide
value-adding business partnership, strategic support and competitive
services to the whole business (especially the regional and category
organizations). They are organized
around the model of business partners, shared services and expertise teams.

ENVIRONMENT

Unilever have a wide and diverse set of competitors in their consumer goods
businesses. Many of their competitors also operate on an international scale,
but others have a narrower regional or local focus. Competition is a normal
part of business. Unilever aim to compete and give value to their consumers,
customers and shareholders in three ways:

• By continually developing new and improved products.

• By sharing our innovations and concepts with our businesses all

around the world.

• By striving to lower the cost of our sourcing, manufacturing and

distribution processes while still maintaining, and improving, the
quality of our products.
Unilever support efforts to create a more open competitive environment
through the liberalization of international trade. Unilever support the full
implementation of the Single European Market and inclusion in the European
Union of other countries that fulfill the agreed criteria for membership.
Unilever’s products are generally sold through its sales force and through
independent brokers, agents and distributors to chain,
Wholesale, co-operative and independent grocery accounts, food service distributors and
institutions. Products are distributed through distribution centers, satellite warehouses, company
operated and public storage facilities, depots and other facilities.

• Marketing
• Information management and technology
• Financial management
• Communications
• Business to business
• Customer development
• Supply chain
• Research and development
• Human Resources
• Account management

2.2 DEPARTMENTS
2.2.1 MARKETING
Marketing at Unilever is split into two distinct disciplines. In marketing
department you’ll need to develop an expert knowledge of local markets,
consumers, and their behaviour, and draw on this to create marketing .Then
there are the roles based in Innovation Centres. Here market research with
local market is done to raise brand awareness and generate loyalty. This
discipline requires working closely with colleagues in the fields of research,
advertising, design and PR.

FOR MARKETING UNILEVER REQUIRE

• Curiosity, innovation and the ability to assimilate information from

different sources and use it in creating compelling communications.
• A strong interest in consumers, an intuitive understanding of their
behavior, and knowledge of what works – and what doesn't – in specific
markets.
• Very strong interpersonal and analytical skills.
• Creativity – which you can apply to achieving measurable results.
2.2.2 INFORMATION MANAGEMENT & TECHNOLOGY

Information Management and Technology (IM&T) gives employees the

opportunity to improve the way business is done.

Innovative Technology
Career in IM&T is meant for individuals interested in exploring new
marketplaces and creating electronic exchanges. An employee could be on a
project team in partnership with a major retailer, developing a web-enabled
tool for promotions planning or could even be part of the teams managing
technology infrastructure. Whatever role is, it will require more than just
technical know-how.

For information management & technology Unilever require

• The tenacity to use technology to create business change.

• Excellent communication, interpersonal and influencing skills.
• A highly logical approach to problem solving.
• The ability to understand technology and discuss IT with non-technical
colleagues
•

2.2.3 FINANCIAL MANAGEMENT

Many of senior business leaders in Unilever began their careers in Finance.

The role in finance department can offer a single view of the business – from
its processes and operations to the innovative ways to improve performance.
Moving on from there, the possibilities are extremely diverse, from financial
control and internal audit roles to treasury or mergers and acquisitions.

Finance managers need a broad overview of business processes. They are given challenges that
cross brands, professions and geographical regions. Finance manager need to understand the
strategies that drive Unilever’s growth and profitability.

For financial management Unilever require

• Sound business awareness and the tenacity to ensure Unilever get

value for money, hit financial targets and increase profitability.
• A talent for looking at fine details and the big picture.
• A proactive approach to improving business and the communication
skills to win support for your ideas.
• To have or be committed to gaining a professional accounting
qualification. Graduates joining our finance teams receive full support
 in studying for a professional qualification, alongside their initial
development programme.
•
2.2.4 COMMUNICATIONS

Communication is the oil that accelerates change. And a role in

Communications is a chance to gain unique insights into businesses while
helping it continuously develop.

2.2.4.1 Change agents

Communications teams have three main areas of expertise: Internal

Communications, Media Relations and External Relations. These specialists
are called by Unilever “our Pillars of Communication “. Corporate & Social
Responsibility is another key communications field, which underpins all the
others.

Working in any of these disciplines is a chance to play a vital role in

delivering change, managing perceptions and helping leaders and brands
perform at the highest levels.

2.2.4.2 WORLD-CLASS COMMUNICATIONS

Communications in Unilever is a global discipline. So a career in

communications comes with great training, development and international
opportunities.

As well as offering careers in Internal Communications, Media Relations and

External Relations, our Communications Business Partners work closely with
business leaders to help them achieve their business goals.

Across worldwide network Unilever has a wide range of roles, with an equally
broad range of challenges. For example, opportunities span from Internal
Communication Manager in Mexico to External Affairs Manager to the
European Union in Brussels; National Communication Director in Poland to
Press Officer in the United Kingdom; and from Issue Manager is India to
Communication Change Manager at our Corporate Head Office.

For Communications Unilever require

• to be passionate about your generalist or specialist area of expertise

• to be able to build strong internal and external networks
• curiosity, innovation, creativity – and the ability to apply them to
achieving measurable results
• the ability to assimilate information from different sources and use it to
create compelling communications
• very strong interpersonal and analytical skills
2.2.5 BUSINESS TO BUSINESS

Unilever has a number of business-to-business activities, with Unilever Food

solutions pre-eminent among them.

They supply foods and services to industrial and institutional customers –

from prestigious hotels and sophisticated factories to rural outlets and shops.
Within business-to-business, opportunities for employee could include
customer or business development, as well as international account
management. Whatever the role, Employee will need to be qualified,
motivated, and able to meet and exceed our partners' expectations.

For business to business Unilever require

• Very strong interpersonal skills and good analytical skills.

• Strong customer orientation and the ability to develop strategies that
meet the needs of your customer and our business.
• Practical creativity that focuses on results.

2.2.6 CUSTOMER DEVELOPMENT

Employee will nurture customer relationships, maintaining Unilever’s status

as preferred supplier. Employees will liaise with distributors, agents, and
other third parties to represent Unilever as the best solution provider for
their requirements.

For customer development Unilever require:

• Very strong interpersonal and analytical skills.

• A strong customer focus and the ability to develop strategies to meet
the needs of your customers and our business.
• A love of the pace and competitiveness of the retail market.
• Practical creativity that focuses on results.

2.2.7 SUPPLY CHAIN

As one of the world's largest consumer goods companies, Unilever couldn't

survive without supply chain management. From finding the raw materials to
delivering end product, Unilever Supply Chain people are in nearly all
regions.

In supply management, Employees will optimize the cost and quality of what
Unilever buy and how it buys it. Intelligent sourcing of raw materials,
packaging, and non-production items can reduce costs and make Unilever’s
business more effective.

Employees are responsible for liaising with their suppliers and finding new
ways to work with them, through e-business, for example. Employee will
develop a thorough understanding of global supply markets and play a lead
role in the innovation of new technologies.

2.2.8 SUPPLY MANAGEMENT

LOGISTICS

Every day, Unilever uses thousands of materials to create hundreds of

products. In logistics, employee will be tasked with the planning that gets
them all together in the right place – to deliver at the right time. Logistics
takes a wider look at the supply chain process. Employee will use the most
advanced technology to ensure that Unilever factories run smoothly, and
that customers get the outstanding service they expect.

For supply chain Unilever require

• For Logistics or Supply Management: a degree in science, economics,

logistics or engineering.
• For Manufacturing: a degree in science or engineering.
• A high level of numeric, strong organizational skills and a focus on
results.
• A hands-on approach, good people management skills and the ability
to use complex IT systems.
• The ability to be entrepreneurial when it comes to innovation and cost
saving opportunities. The flexibility to work with varied business
cultures and create strong links with them.
•

2.2.9 MANUFACTURING

Unilever’s manufacturing record is one of the most envied in the world, with
many of their factories considered the best in their country. Employee’s role
is to continue to deliver the efficiency for which Unilever are renowned,
whilst helping their factories adapt to the changing needs of customers and
consumers.

A manager will responsible for teams running production lines and for their
quality, output and costs. In engineering, employee could be designing and
building high-speed production lines. As well as outstanding organizational
and technical skills, employees need to promote the highest standards in
health and safety, and be committed to Unilever’s policy of caring for the
environment.

2.2.10 RESEARCH & DEVELOPMENT

R&D teams help make brands bigger, bolder and more exciting. They
promote innovation across every aspect of brand development.

INSPIRATION FROM CONSUMERS

R&D teams make brands come to life – they promote innovation across every
aspect of their development. Based in six research centers across three
continents, R&D draws inspiration from consumers and the market to lead
research and idea generation and contributes to product design. R&D
involves in patent protection, regulatory compliance or ensuring that
Unilever’s activities have the lowest possible impact on the environment.
Allied with this, championing product design or implementing best-practice
quality and hygiene systems are all crucial functions of the R&D sphere.

Unilever’s R&D teams are known as some of the world's best, participating in
professional networks and teaming up with leading external experts.

For research & development Unilever require

• A degree, MSc or PhD in chemistry, engineering, biology, physical

science, behavioral science or design or any other relevant technical
area.
• A passion for innovation and the determination to bring new ideas to
consumers.
• Creativity, as well as the ability to make things happen on time.
• Excellent interpersonal, teamwork and leadership skills.
•

2.2.11 HUMAN RESOURCES

Unilever's people are their most important asset. In Human Resources (HR),
employees support and develop those people, enabling them to deliver
outstanding business performance.

AN EYE ON THE FUTURE

Our culture is about empowering employees, both to contribute to their

business objectives and to achieve their own personal and career goals.
Unilever also keep an eye on the future, with their 'leadership behaviors'
initiative aiming to identify the next generation of leaders.
HR's overall function is to devise and implement strategies and policies to
ensure that we have the right people with the right skills. Within that, there
are numerous options for them. For example, it could be covering culture
change, leadership development, strategic talent management, coaching
and skills development or
alignment of reward with
performance.

For human resources

Unilever require

• Strong interpersonal
and leadership skills.
• The ability to see the
big picture while
delivering on day-to-
day goals.
• A real interest in how
people drive business.
• The strength and integrity to take tough decisions.
• An interest in coaching and developing people.

2.2.12 ACCOUNT MANAGEMENT

Account managers need to develop relationships with Unilever customers –

the big retailers, for example. Their remit will be to improve turnover and to
increase profit and market share. When launching new products, they'll be
working hand in hand with Brand and Category management to get those
products onto the shelves.
An essential part of their job is customer service – they ensure that the right
stock appears at the right time, they will plan and implement promotions and
negotiate prices and margins. And Unilever expect them to be thinking
ahead all the time – planning new initiatives to keep customers excited,
whilst dealing with practical challenges such as logistics planning.

Competitor’s Analysis

Bargaining Power of Suppliers

Suppliers
Unilever says it can control its ultimate suppliers, and don’t disclose how much it buys and from
which intermediate suppliers.
"Effective management of the quota control must ... rest with the [countries'] authorities.
Unilever requires all of its suppliers to work with partners that operate in accordance with best
practice in the industry and within allocated quotas."2

Supplier audits

All new and potential suppliers of raw and packaging materials undergo a process of
qualification that typically involves an initial site visit by a Unilever manager, either a buyer or
technologist. The primary purpose of this visit is to establish that the supplier has the right
technical and economic capabilities in order to work effectively with Unilever. This also includes
a basic assessment of the supplier's ability to meet the requirements of the Business Partner
Code.

In certain cases where a supplier needs to have a high level of technical competence to manage
critical issues, such as occupational health and safety or food hygiene, site audits are carried out
by Unilever specialists as an integral part of supplier qualification. If necessary, suppliers can be
asked to carry out specific actions within a fixed timeframe to address areas where they do not
meet our requirements. We subsequently verify and assure that the supplier has made the
necessary improvements. Such 'high-risk' suppliers are reassessed during the contract period, and
general compliance with the Business Partner Code is also checked.

Supplier assurance

We are committed to working with our business partners to achieve high standards and to
provide greater transparency on how we work together.

2
http://www.guardian.co.uk/environment/2006/feb/20/fish.food
Unilever’s approach

Our Code of Business Principles commits us to establishing mutually beneficial relations with
our suppliers, customers and business partners. In our business dealings we expect our partners
to adhere to business principles consistent with our own.

We have formalized these expectations of our suppliers in our separate Business Partner Code.
This Code makes clear the principles to which we expect our business partners to adhere,
covering business integrity and responsibilities relating to employees, consumers and the
environment.

The right to collective bargaining is implicit in the recognition of freedom of association. In line
with its own long-standing practice and its adherence to the United Nations Global Compact,
Unilever expects its suppliers to recognize the right to collective bargaining (where allowable by
law).

Bargaining power of customers

The high level of competition also makes consumer-product companies like Unilever very
vulnerable to consumers, and consumers can have considerable power when it comes to choosing
what brands or products they buy. Unilever has been and still is under constant pressure from
environmental and social groups for the impact of their operations and products on people and
the environment. Due to the large number of alternatives (competitors’ brands) Unilever has to
make sure that the customer values its products through advertising, but they also have a
responsibility that goes beyond the product’s value, i.e. its social and environmental
responsibility.3

Unilever Shows Us How to Keep a Customer for Life

3
http://www.greenpeaceweb.org/lichaamzondergif/dossiers/unilever.pdf
Apparently the consumer product giant was actively listening to the blogosphere and they tuned
into one voice, Dan Entin. Dan had been lamenting about how he is having trouble getting his
favorite deodorant.

Unilever - a huge company with lots of to worry about - took the time to respond to Dan directly
via email. They not only let him know that Degree Sport was indeed still on the market, they
suggested ways he might find the product at retail using the Unilever website and even sent him
a year's supply just for speaking up. I believe we just witnessed the future of customer service.
One day CRM systems will bolt in blog monitoring functionality so these posts automatically get
funneled to the right place. For now, Kudos to Unilever.4

Threat of New Entrants

The biggest threats for Unilever in every region are the small local companies who are emerging
into the market with the introduction of similar product like as of Unilever’s.
Due to the unstable economy of many counties and very less difference between
Unilever’s and its competitor’s products, the main thing to compete upon is the price. Unilever is
unable to keep its stable pricing due to the immense competition and high level of price war.
Unilever being incumbent in Pakistan since 1984 has vested interest in keeping potential new
entrants out.

Threat of Substitute Products

Threat of substitute products is high as the competitor’s brands like P&G and Nestle are its big
competitors and consumers can switch their choices between the two. Apart from big players
who serve as substitute of Unilever, small local companies in every region are also an ever
increasing threat.

4
http://www.micropersuasion.com/2005/08/unilever_shows_.html
But if we look at the Asian market, Unilever is considered to have very traditional thinking. They
are always reluctant to try out new stuff and stick to old and traditional things. This gives a great
advantage to Unilever since it was the very first multinational company to enter this market.
Even at this point, people are well aware of its name; they trust its products and are always
hesitant to try out new companies who enter the market. This advantage of Unilever is a great
threat for its competitors.

Competitive Rivalry among Competitors

Unilever faces high level of competition among consumer goods companies make it vulnerable
among the consumers. Large numbers of alternative brands are available of competitor’s brands
like P& G, Nestle, and Kraft’s etc.

There is intense competition between Unilever and its competitors in the food and home
and personal care market. Unilever’s major competitors in the food market include Kraft Foods,
McKee Foods, Tasty Kake Baking Company, Quaker Oats Company (division of Pepsico), and
Kellogg Company. Some of their major competitors in the home and personal care market are
L’Oréal, Johnson and Johnson, Proctor and Gamble, Gillette Company, and Colgate-Palmolive.5

We have a wide and diverse set of competitors in our consumer goods businesses. Many
of our competitors also operate on an international scale, but others have a narrower regional or
local focus. Competition is a normal part of business. We aim to compete and give value to our
consumers, customers and shareholders in three ways:
• By continually developing new and improved products;
• By sharing our innovations and concepts with our businesses all around the world; and
• By striving to lower the cost of our sourcing, manufacturing and distribution processes
while still maintaining, and improving, the quality of our products. 6

5
http://www.greenpeaceweb.org/lichaamzondergif/dossiers/unilever.pdf
6
Unilever Annual Report 2005
Unilever Pakistan (67% Unilever equity) is the largest FMCG Company in Pakistan, as well as
one of the largest multinationals operating in the country. Since the time Unilever Pakistan began
its operations in 1948, the Company has been closely connected to the Pakistani people and its
brands have been an integral feature in their daily lives. In fact, the nature of our business
enables our brands to be the pulse and heartbeat of the 155 million people in Pakistan.7

Unilever: the clear market leader

The packaged tea market is highly consolidated in India, with Unilever and Tata Tea accounting
for almost half of retail value sales. Unilever (Brooke Bond and Lipton) is the clear leader,
holding over 30% of the market share, while Tata Tea (Tata) trails it with almost 20%. The
remainder of the market is far more fragmented and shared between numerous small players

Both Unilever and Tata Tea saw a fall in retail sales as a direct result of the drop in the price of
tea between 2000 and 2003. These mainstream players also saw their margin squeezed in the
face of increased advertising spends and competition from unpackaged tea.8

In Argentina, Unilever faces stiff competition from market leader Freddo, which has its ice-
cream parlors. Another competitor is Haagen-Daaz, which is its big competitor.9

SWOT Of Unilever

Strengths

• Well-established brand name

Unilever being one of the well- established brands all over the world has a number of attributes,
which result in its strengths. Unilever didn’t start out as a market leader and did not have an
7
http://www.unileverpakistan.com.pk/ourcompany/unileverpakistan/UP_ataglance.asp
8
http://www.euromonitor.com/All_the_tea_in_India
9
http://books.google.com.pk/books?
id=1pcjgWNWYBYC&pg=PA201&dq=unilever+competition&sig=TTVJ6dowNgRQT_98dGq3qFKk0pE#PPA218
,M1
advantage of it being the market leader in the category of the consumer goods. Starting off just as
P&G did in its beginning; Unilever's founding companies produced products made of oils and
fats, which were principally soap and margarine. The concept in the early age of production and
selling was to produce standardized products and to mass market them. This worked really well
in the early 20th Century and took the market at large. At that time most of the companies were
doing this strategy and were profiting for producing a product, which was standardized.
Then throughout the years the company evolved and started to expand its product lines, and
started to penetrate in different markets of the world, which lead to its high brand awareness and
recognition in different countries. Hence, now, in the current time, Unilever is considered to be a
strong and a very well established brand. The name of the brand has made it possible that
whenever the company thinks of introducing a product in any country, the fact that it is already
so very well established, makes the company credible. The customers who don’t want to
associate themselves with any introduction of a new and a changing brand would then be
inclined in buying a product of this company. Thus the name, that the company has established
for itself is helping it a lot.

• Aware of the Consumer Buying Behavior

The products of Unilever have been around for more than a decade, whereas the company
prevails under the name of Unilever for more than 70 years. Thus, the Research and
Development department of Unilever are aware of the buying behaviors of the customers so
well, as they have researched the grandfathers, fathers and the current customers. Hence they
know that what were the main causes for a consumer to buy a certain product and how there have
been trends in the buying behaviors of house holds. This has lead to the advantage on the behalf
of Unilever that they have a whole data base of research which is helping them when they
innovate new goods and the competitive they have on the small and relatively new companies.

• Unilever has Global reach, with local Roots.

Unilever has been expanding globally since a very long time. When it started its company, which
in 1890 became Lever Brothers Ltd, it then started to export its products in different parts of the
world. During the 1960’s Unilever started its aggressing type of marketing in different parts of
the United Kingdom as a part for acquiring different small companies and brands in different
countries. Acquisitions and mergers, whether they were done in a peaceful manner or simple
hostile take-overs like that of Brook Bond, it has established global products in different parts of
the world, which have local roots. As the acquisitions that Unilever did were of local companies,
hence these companies had a know-how of the local market also these companies were very well
known by the customers, this helped a great deal in the expanding of products as well as bringing
credibility to the company. An example of this is that they tailored their products to be affordable
for the general consumers of India and China, who were mostly living in rural areas and were
low-income earners. They did this not by offering a super-family size packaging but a smaller or
“sachet” size packaging only marketed to these countries and demographics. As a small or
medium business you would have more control over whether you can change the way you offer
your products simply due to less red tape and top level management to go through thus making it
easier to enter global markets.

• Vast Distribution Networks

When we said that Unilever had acquired and had merged with a number of local companies, it
means that a vast distribution network is also being acquired by Unilever. Considering the
Pakistani Market Scenario, we saw when Walls a product of Unilever acquired Polka, it also
acquired the vast distribution networks that Polka already had. As when you enter in a new
market, it is a tremendously hard job to get your product in different parts where different
customers of different needs are located. Thus the distribution channel of Unilever owes its
success to the local industry, which it has acquired or merged with. Handling and managing
more than 90 countries simultaneously.
Even though Unilever is a huge company, having more than 250 tail- brands, integrating them all
is a bit of a problem. But Unilever is doing a really good job in handling more than 90 countries
simultaneously all over the world. This is a major plus point for Unilever that it is handling so
many economies and so many multi cultural environments in one go. As it is very difficult to
handle so many products by one company, so integrating them all owes a lot of credit to the
management of the Unilever.
 • Financial Stability
A lot of the stability of Unilever today owes to its capturing of markets in the early 20 th Century.
And a steady flow of consistent growth has been observed in the years that have followed.
Leading brands of Unilever have increased from 75% to 93% sales in 1999. Now 12 brands have
sales over € 1 billion. In 1999 there were only 4 of these brands and ten years ago there was only
one of this brand. The growth and quality has consistently been increasing and between 2001 and
2003 was a little over 3%.

Weaknesses
When we say that organizations are like individuals, we mean that there are weaknesses in
organizations just like those of individuals. There are some features of Unilever which attribute
to its weaknesses:

• Confusion in their products

A major confusion occurs in the brands of Unilever is that they are producing brands like Lipton
and Brookbond which are the producers of tea against each other. These brands even though are
marketing in a separate kind of market; still there is confusion amongst the consumers that the
brands of Lipton and Brookbond are competitors of each other. Also that buying a Lipton brand
makes them believe that they have a better image as compared to those who are buying a
BrookBond product.
It is seen that brands like Lipton, Sunsilk, Surf Excel and Wall’s etc have swallowed up the
parent company name. In this scenario the consumers know about the product lines and less
about the main company. Lipton and Surf Excel have become such big names that Unilever the
name itself is having some problem with the subsidiary brands. This seems to be somewhat of a
problem from Unilever’s point of view

Opportunities
If we look at the external environment of Unilever, we will find out that there are a lot of
opportunities available for it. Some of them are as follows:

• E-commerce:
As world entered the 21st century, everyone became extremely dependant upon the
information age. With the changing trends of use of high-tech systems for everything, it
can be great opportunity for Unilever to establish itself online. It can make efficient
internet marketing campaigns or even launch online delivery service for their products.
Overall, they can indulge themselves in the e-commerce.

• Investment in developing countries:

Unilever has the biggest market in the developed countries like USA and UK. Since
world is becoming smaller everyday due to the trend of globalization, the small
developed countries are also becoming aware of the global brands and products and if the
companies like Unilever try to invest in such countries, they will gain a lot profit from
them. They might not be the huge markets but still, they can be a great source of profit
for them.
• Promoting special events of every culture:
Unilever is focusing on the events and cultural aspect of every country in its own way.
For example in countries like USA or UK, they make special marketing campaigns for
events like Valentine’s Day and Halloween. Whereas if we look Unilever Pakistan, they
don’t give that much importance to Valentine’s day but their one of the most leading
brand Lipton is the biggest sponsor for the Basant festival in Lahore.

• Oldest MNC of Asia:

If we look at the Asian market, it is considered to have very traditional thinking. They are
always reluctant to try out new stuff and stick to old and traditional things. This gives a
great advantage to Unilever since it was the very first multinational company to enter this
market. Even at this point, people are well aware of its name; they trust its products and
are always hesitant to try out new companies who enter the market. This advantage of
Unilever is a great threat for its competitors.
 • Launch of nutritious food items:
With the changing trends of the world, people are becoming more health conscious. They
prefer food that will give them maximum nutrition and less calories. In the present
scenario, the Food items offered by Unilever are mostly fattening food like Walls ice
cream and Knorr Noodles. They can also come up with diet ice creams in South Asia,
which would help their sales to jump up. They should diversify themselves in food
category and should introduce more of healthy food products. Unilever is already a
partner with the world's leading agencies and institutions of food and health sector.

• Target the youth of world:

Most of the Unilever’s products are targeted upon families and middle aged people. They
should focus upon the youth segment as well. They should introduce products that
specifically focus on the youth, that way the company will gain popularity in that
segment as well which can provide a lot of profit opportunities for the company. Products
like P&G’s Pringles, which as taken over the world for its top class taste, should be one
of the focus of Unilever too. Making and focusing on products like this would yield more
profits and enhance their customer base.

Threats

• The local companies:

The biggest threats for Unilever in every region are the small local companies who are
emerging into the market with the introduction of similar product like as of Unilever’s.
• Price wars:
Due to the unstable economy of many counties and very less difference between
Unilever’s and its competitor’s products, the main thing to compete upon is the price.
 Unilever is unable to keep its stable pricing due to the immense competition and high
level of price war.

• Low brand recognition for company:

Unilever’s biggest advantage is sometimes considered as the biggest threat to it, i.e. the
fact that it has a huge product line and category. From health care to food products, from
shampoos to beverages, it is diversified in every category of products. Due to this fact,
there is a very little recognition to the company’s brand name itself. People are more
familiar to Lipton or Close up instead of Unilever itself. Nobody calls them Unilever’s
Lipton or Unilever’s Close up. Due to so much diversity, the company has lost its own
identity.