Unilever's Sustainable Talc Alternative

University of Hertfordshire
Business School
MBSP0194 Evaluating Strategic Marketing
ssign!ent "o# 1
Unilever
$ritically %eflective and Scholarly
Pers&ective on Sustaina'ility in the E(traction
of )alc for $os!etic Products
uthors Sarah Mellon * +a'io ,liveira
Student "u!'er 0-144./0 * 0-110092
Hand 3n 4ate 04
th
"ove!'er 000-
$ourse MSc Strategic Marketing
)utor $hris Bro5n
6ord $ount 00--
Introduction
)he conce&t of sustaina'ility centres itself on econo!ic develo&!ent 'eing !indful
of its surroundings7 e!'racing issues such as environ!ental concerns7 glo'al
5ar!ing and energy 8Brundtland %e&ort7 19/.97 in order that future generations
needs are not co!&ro!ised 'y the activities carried out today 86$E4 19/.9#
ccording to "igel 8199/97 sustaina'le develo&!ent is a social and institutional
res&onse to the environ!ental 8or ecological9 di!ension of glo'al change#
Sustainability as a market concept
)he &u'lic has 'een &ressuring govern!ents and co!&anies to reduce the levels of
&ollution and detri!ental activities that have an i!&act u&on the environ!ent#
ccording to "igel 8199/97 the &ressure for sustaina'le develo&!ent has 'een
'rought a'out 'y t5o distinct &ro'le!s# )he first concerns the resource and energy
de!ands of industrial activity in develo&ed and ra&idly industrialising econo!ies#
)he second &ro'le! is the cycle of &overty7 !ainly e(&erienced in develo&ing
countries# )he costs of continuing devastation and &ollution are increasing annually
fro! the glo'al econo!y and industries#
)hese &ressures have led to co!&anies ado&ting the conce&t of :cor&orate social
res&onsi'ility; 8$S%9 in order for !any to a!eliorate their &u'lic i!age# 4avis
8000-9 suggests that $S% re<uires integrity to 'e sustaina'le so the i!age &ro=ected
!ust 'e consistent at all levels of the organisation7 the co!!unity and society#
Unilevers Sustainability Strategy
4ue to their &o5er of 'eing such a large !ultinational7 Unilever7 one of the 5orld;s
largest consu!er goods co!&anies7 5ith ranges of foods7 household and &ersonal
care &roducts7 has a lot of &ressure to &erfor! 'usiness in a socially res&onsi'le
Mellon7 S * ,liveria7 + Evaluating Strategic Marketing
0
!anner# Perha&s due to this7 Unilever 5idely &ro!otes their strong focus on
sustaina'ility# )hey have also esta'lished a !ission to attain sustaina'le gro5th in
order to achieve 'etter results for their stakeholders7 as declared in the co!&any;s
state!ent>
As a multi-local multinational we aim to play our part in addressing global
environmental and social concerns through our own actions, and working in
partnership with stakeholders at local, national and international levels.
)hey carry out sustaina'le activities in all three as&ects of sustaina'ility including
environ!ental7 econo!ic and social &ro=ects 8?eleva7 00019# So!e of the &ro=ects
they have 'een involved in include the cleaning of rivers in 3ndonesia7 hel&ing to
co!'at H3?@34S in Aenya7 hel&ing to tackle cli!ate change 5ith the researching
into advanced refrigeration7 and sustaina'le fishing in South frica 8Unilever7 000-9#
3n 00017 Unilever s&ent 2.!illion euros on co!!unity &ro=ects 8BB$7 00009# )hese
efforts to5ards sustaina'ility have seen their food &roduction 'usinesses at the to& of
the 4o5 Bones Sustaina'ility 3nde( 84BS397 and also 'eing ranked third in the 100 to&
co!&anies that :count for cor&orate res&onsi'ility; 8+ood&roductiondaily#co!7 00049#
)hese !easures7 as 5ell as Unilever;s o5n voluntary !easure!ents should ensure7 as
?eleva 800019 discusses7 that :&rogress is actually 'eing !ade rather than =ust 'eing
talked a'out;7 as 5ell as hel&ing create a very &ositive co!&any i!age#
)hese actions taken 'y Unilever a&&ear to sho5 their great concern in the sustaina'le
develo&!ent of their 'usiness# )here are ho5ever !any other &ossi'ilities to e(&lain
their reasoning 'ehind the e(tent of their action# ,ne &ossi'ility is the increased
&u'lic concern for the environ!ent7 5hich has led to the recent conce&t of :green
!arketing; 8Prothero7 199-97 5hich could e(&lain Unilever;s !otives# Unilever uses
this idea to hel& esta'lish su&erior custo!er value7 as they are seen as having the
highest standards of res&onsi'le and sustaina'le 'ehaviour# Ho5ever critics 'elieve
1
that these re&orts and &ro=ects e!'arked on 'y co!&anies are only :green5ash;7 in
order to i!&rove their &u'lic i!age 8?eleva7 00019# )his could 'e 5hy they are
under a great deal of &ressure fro! 5atchdogs7 and environ!ental grou&s such as
+riends of the Earth and Creen&eace# S!ith 819909 e(&lains that this :&ressure grou&
activity has led to the 'oycott of &roducts 'oth for environ!ental and social reasons;7
therefore outlining one of Unilever;s !otives for acting in a sustaina'le !anner7 in
order to avoid any 'ad &ress 5hich could lead to the 'oycott of their &roducts#
+urther!ore7 Unilever;s sustaina'ility strategy 'enefits the co!&any7 as 'eing the
leader of the industry on the 4BS3 has led to an increase in invest!ents# )his
invest!ent is linked to the increase in shareholder value7 as according to 4o5 Bones
8000-97 leaders of this inde( usually :sho5 su&erior &erfor!ance and favoura'le
risk@return &rofiles;7 so 5ould therefore 'e !ore favoura'le to invest in#
Unsustainable Practices
4es&ite the afore!entioned efforts7 Unilever has 'een the su'=ect of 'ad &ress for
several unsustaina'le &ractices# +or e(a!&le7 the du!&ing of !ercury to(ic 5aste
into 3ndian rivers7 child la'our in develo&ing countries7 and the illegal !ining of talc#
Unilever7 as 5ell as a nu!'er of other co!&anies in the cos!etics industry7 including
von7 and Bohnson * Bohnson7 have 'een found to 'e involved in &urchasing illegally
!ined talc fro! su&&liers in 3ndia# )alc is one of the ingredients that !ake u& several
of their cos!etics &roducts# 3ts &ur&ose is to give cos!etics sta'ility7 te(ture7 skin
adhesion7 sli& and 5ater resistance 8Colcha Crou&7 00029 and it can 'e found in
skincare &roducts such as !akeu& and soa&7 including Unilever;s range of 4ove
&roducts#
)he use of talc as ra5 !aterial for !anufacturing cos!etics 'y the e(traction of
soa&stone has had a great i!&act on the environ!ent7 devastating huge areas7
including natural sanctuaries7 such occurred in 0001 in the Ba!5a %a!garh 6ildlife
4
Sanctuary in %a=asthan7 3ndia# )his area is a &rotected nature reserve7 ho5ever it 5as
found that local co!&anies had nevertheless 'een allo5ed to o&erate in an
unsustaina'le !anner 8Environ!ental 3nvestigation gency7 00019# ccording to
+riends of the Earth 8000197 these o&erations are threatening tiger ha'itats7 increasing
their vulnera'ility to local e(tinction7 as 5ell as destroying the forest and 5atersheds
5hich has negative effects for the local &eo&le# +urther!ore7 talc has 'een seen to 'e
to(ic7 a skin irritant7 and has 'een linked to cancer in the &ress 8$ancer %esearch UA7
000-9# )his &rocess therefore a&&ears to co!e under :Devel 1 +acility Effects; of
)he Do5ell $entre 3ndicator Hierarchy7 !eaning that this activity has environ!ental
i!&acts 8?eleva7 00019# 3t is i!&ortant for Unilever to use this indicator in order to
hel& achieve !ore sustaina'le &roduction syste!s7 &articularly as there is a strong
link 5ith using these indicators to resulting in i!&roved &erfor!ance 8Cahin et al7
00009#
+or a co!&any that a&&ears to have such a strong stance on sustaina'ility7 this
'ehaviour certainly does not agree 5ith the definition of sustaina'ility7 as it is
:co!&ro!ising the a'ility of future generations to !eet their o5n needs; 86$E47
19/.9 5ith the destruction of the &rotected environ!ent# +urther!ore7 it is i!&ortant
to note that Unilever reached the to& of the 4BS3 in the food &roduction category7 it
does not reflect their sustaina'ility &erfor!ance in the &ersonal care !arket7 therefore
&erha&s they are not &utting as !uch effort into this area#
n increasing nu!'er of consu!ers are looking at !ore natural7 ethical &roducts7 and
:have 'eco!e very sce&tical a'out the 'ehaviour of co!&anies; 8iking7 00049#
)herefore7 it is reco!!ended that Unilever ado&t !ore sustaina'le &ractices to
:satisfy the gro5ing environ!ental concerns of hu!anity; 8Bohri7 199-9# 3f an
alternative7 !ore sustaina'le &roduct@&rocess is not used7 it !ay 5ell da!age
Unilever;s re&utation and decrease the level of su&erior custo!er value that they
&rovide7 5hich 5ill have an adverse i!&act on their co!&etitive advantage#
2
%esearch has 'een undertaken for the &ur&ose of this assign!ent7 in order to find a
!ore sustaina'le ingredient or 5ay of e(tracting this ingredient7 5hich 5ill not have
such an affect on its local environ!ent# ,ne &ro'le! ho5ever !ight 'e that talc is
relatively chea& for the !ultinationals to &urchase7 therefore any alternatives !ust
take this into consideration# Ho5ever this cost saving 5ould 'e a lot less than the
incalcula'le value of a tarnished &u'lic i!age7 and as Schlegel!ilch 8199-9 suggests7
a gro5ing nu!'er of consu!ers are !ore 5illing to &ay higher &rices for green
&roducts7 therefore higher costs could 'e accounted for#
Product concept and the initial marketing brief
3n general7 the cos!etics industry is investing in sustaina'le &ro=ects7 and has a clear
interest to do so# Unilever invests great su!s of !oney in sustaina'ility7 and has key
&erfor!ance indicators in che!ical o(ygen de!and7 5ater7 energy7 $,0 fro! energy7
haEardous 5aste7 'oiler@utilities and ,EoneFde&leting &otential#
,ne alternative researched for this &ro=ect is the use of "ylonF107 a synthetic
su'stance that could 'e an e(cellent su'stitute to the natural talc &o5der in cos!etics#
Si!ilar to talc7 this su'stance also has tre!endous a'sor'ent &o5ers# 3t re!ains on
the skin;s surface to a'sor' skin oil as it is secreted7 !aking the skin;s surface
i!&erfections less a&&arent# "ylonF10 is an artificial su'stance that can 'e &roduced
'y the &lastic industry 5ith sustaina'le !anufacture &rocess and can 'e !ore easily
!onitored and !easured than !ineral e(traction# So!e cos!etics co!&any such as
Procter * Ca!'le and %evlon are already using this su'stance in their &roducts#
)here are !any advantages for the $os!etics industry to change the ingredients of
their &roducts fro! talc to "ylonF10# )he industry 5ill reduce the risk of future
shortages and the i!&act on the environ!ent# ccording the 3ndustrial Mineral
ssociation7 the use of nonFrene5a'le resources !ay !ean that these 5ill not 'e
availa'le for future generations7 and e(tractive o&erations can have a lasting negative
-
i!&act on the environ!ent if not !anaged efficiently# Moreover7 !ining re!ains one
of the !ost haEardous occu&ations causing !ore fatalities than other occu&ations
83EE7 00019#
Impact on the different business processes, and Issues to Implementing these
Changes
Unilever a&&ears to 'e co!!itted to !anaging their social and environ!ental
i!&acts res&onsi'ly7 5orking in &artnershi& 5ith stakeholders and contri'uting to
sustaina'le develo&!ent# )he !ission that deter!ines the strategies and &ositioning
in the !arket&lace7 suggests that Unilever role is to add vitality to life 5ith 'rands
that hel& &eo&le feel good7 look good and get !ore out of life#
Unilever uses target scorecard !easure!ents to evaluate indicators such as che!ical
o(ygen de!and7 haEardous 5aste7 5ater7 energy7 and $,0 fro! energy and
Boiler@utilities# Moreover7 Unilever acts together 5ith all the stakeholders involved
in the &rocess# )heir strategy to 'e the :!ultiFlocal !ultinational; deter!ines ho5
they are effectively co!&eting7 and delivering su&erior custo!er value through the
analysis of the e(ternal environ!ent7 identifying the key value generators7 a&&lying
the necessary !odifications and alterations in the &roducts and co!!unication7 and
the efficient !anage!ent of the su&&ly chain 8Aotler7 00009# +urther!ore7 a
!arketing strategy 5hich includes environ!entallyFfriendly &ackaging and ecoF
la'elling !ust 'e at the heart of any co!&any;s for5ard &lanning# )his is 5here
environ!ental differences 5ill 'e co!!unicated and 5here a co!&any;s
co!!it!ent 5ill often 'e =udged 86elford et al7 19919#
)he develo&!ent and delivery of this !odification re<uires the co!!it!ent of
a&&lication fro! %*47 !arketing7 su&&liers7 and !anufacturers# )herefore the
follo5ing reco!!endations have 'een &ro&osed>
.
- %*4 evaluation and analysis of the i!&acts in the !anufacturing &rocess7
5ith an e(ternal 'ench!arkG
- Marketing and !anufacturing de&art!ents 5orking together 5ith the
su&&liers7 to analyse and evaluate the i!&act of &roduction in ter!s of
<uantity7 costs and &rocess alterations#
- Marketing and Pu'lic %elations evaluating the i!&act in local co!!unities
5here the talc su&&liers are o&erating7 in ter!s of une!&loy!ent and
environ!ental recu&eration#
- Dearning and understanding the outco!es and co!!unicating to the
co!!unity7 e!&loyees and su&&liers#
- Understanding the custo!ers values and a&&lying this in the develo&!ent of
the &roducts#
- $o!!unicate changes to the custo!ers through alterations in the &ackaging#
3nternal !arketing is another relevant as&ect for achieving the success of this
alteration# 3nternal Marketing has co!e to 'e seen as a !echanis! for reducing
de&art!ental and interFfunctional friction7 as 5ell as overco!ing resistance to change
8h!ed7 00049#
Conclusion
3n conclusion7 it is vital that co!&anies e(&lore sustaina'le develo&!ent and
cor&orate social res&onsi'ility7 in order to atte!&t to increase their co!&etitiveness
and to i!&rove their su&erior consu!er value offering# )his 5ill reflect the gro5ing
/
concern a!ong consu!ers a'out environ!ental issues as they are 'eco!ing
increasingly sus&icious of !ultinationals; activities#
nother i!&ortant as&ect concerns the investigation of co!&anies; relationshi&s# )he
co!&any should understand their role as a &art of one 5hole syste! 5here its
res&onsi'ility includes the !anage!ent and !onitoring of their &artners; activities7
including their su&&liers7 e!&loyees7 and other co!!ercial &artners#
3n conclusion7 co!&anies should &lace a strong e!&hasis on sustaina'ility7
incor&orating it as &art of their cor&orate culture# )hey should also 5ork 5ith their
&artners to develo& ne5 strategies to reduce their i!&act on the environ!ent7 in order
to increase their co!&etitiveness in line 5ith consu!er;s increasing environ!ental
concerns7 i!&rove their &u'lic i!age7 and to &revent any further de&letion of the
e(ternal environ!ent#
9
Bibliography
ournals!
iking7 H7 * B de Boer# 800049 :+ood sustaina'ility;# British Food Journal# 10- 829
&&#129F1-2
Cahin et al# 800009 :4o indicators hel& create sustaina'le co!!unitiesH;# ocal
!nvironment# / 8-9 &&#--1F---
Bohri7 D#M * A Sahasak!ontri# 8199/9 :Creen !arketing of cos!etics and toiletries in
)hailand;# Journal o" #onsumer $arketing# 12 819 &&#0-2F0/1
Prothero7 # 8199-9 :Environ!ental decision !aking> research issues in the cos!etics
and toiletries industry;# $arketing %ntelligence & 'lanning# 14 809 &&#19F02
Schlegel!ilch7 B et al# 8199-9 :)he link 'et5een green &urchasing decisions and
!easures of environ!ental consciousness;# !uropean Journal o" $arketing# 107 829
&&#12F22
S!ith7 "# 819909 :Morality and the Market> $onsu!er &ressure for cor&orate
accounta'ility;# Journal o" !conomic 'sychology# 11 849 &&#-11F-14
?eleva7 ? et al# 800019 :3ndicators for !easuring environ!ental sustaina'ility;#
Benchmarking( An %nternational Journal# 10 809 &&#10.F119
Books!
h!ed7 P#A * M %afi<# 800049 )ools and concepts "or customer-"ocused
management. Burlington7M> Elsevier Butter5orthFHeine!ann
Brundtland7 C#H# 819/.9 *ur common "uture + ,orld #ommission on !nvironment and
-evelopment .,#!-/# ,(ford> ,(ford University Press#
4avies7 # 8000-9 Best practice in corporate governance( building and sustainable
success. UA> Co5er Pu'lishing Di!ited
Aotler7 P * A#D Aeller# 8000-9 $arketing $anagement, 10
th
Ed# U&&er Saddle %iver7
"#B> Pearson@Prentice Hall
%oo!e7 "# 8199/9 0ustainability 0trategies "or %ndustry( )he Future o" #orporate
'ractice. 6ashington74#$> 3sland Press
Ste&hens7 $ * M hern# 800009 ,orker and community health 1 %mpacts 2elated to
$ining *perations %nternationally 1 A rapid review o" the iterature. Dondon> Dondon
School of Hygiene * )ro&ical Medicine
6elford7 % * Couldson# 819919 !nvironmental $anagement & Business 0trategy#
Dondon> Pir!an Pu'lishing
"ebsites!
Barnett7 B# 800019 ,est3s love o" talc threatens %ndia3s tigers# I,nlineJ U%D>
htt&>@@o'server#guardian#co#uk@international@story@07-90179/021.700#ht!l Iccessed
04@11@0-J
BB$# 800009 %nside the 4lobal 4iants# I,nlineJ U%D>
htt&>@@555#''c#co#uk@5orldservice@ s&ecials@121Kglo'algiants@&age0#sht!l Iccessed
04@11@0-J
$ancer %esearch UA# 8000-9 56 *varian #ancer 2isk Factors# I,nlineJ U%D>
htt&>@@info#cancerresearchuk#org@cancerstats@ty&es@ovary@riskfactors@Ltalc Iccessed
04@11@0-J
4o5 Bones 8000-/ -ow Jones 0ustainability %nde7es# I,nlineJ U%D>
htt&>@@555#sustaina'ilityFinde(es#co! Iccessed 10@11@0-J
Environ!ental 3nvestigation gency# 800019 56 #osmetics %ndustry 2isks )iger
Forests# I,nlineJ U%D> htt&>@@555#eiaFinternational#org@ cgi@re&orts@re&orts#cgiH
tMte!&late*aM2/ Iccessed 02@11@0-J
+ood Production 4aily Euro&e# 800049 5nilever tops lucrative sustainability inde7 "or
"i"th year running# I,nlineJ U%D> htt&>@@555#food&roductiondaily#co!@ ne5s@ng#as&H
idM24-40 Iccessed 02@11@0-J
+riends of the Earth# 800019 56 #osmetics %ndustry 2isks )iger Forests# I,nlineJ
U%D> htt&>@@555#foe#co#uk@resource@'riefings@cos!eticsKtigers#&df Iccessed
02@11@0-J
Colcha )alc# 800029 4olcha 0oapstone 'roducer+$anu"acturer# I,nlineJ U%D>
htt&>@@555#golcha#co! Iccessed 02@11@0-J
Household Products 4ata'ase# 8000-9 8ylon-9:# I,nlineJ U%D>
htt&>@@household&roducts#nl!#nih#gov@cgiF'in@household@'randsHt'lMche!*idM12.0
Iccessed 01@11@0-J
3ndustrial Mineral ssociation# 8000-9 $ining 0ustainable 2eport# I,nlineJ U%D>
htt&>@@555#i!aFeu#org Iccessed 02@11@0-J
3ngredient Clossary 8000-9 8ylon-9:# I,nlineJ U%D>
htt&>@@555#nuskin#co!@cor&@science@glossary#sht!l Iccessed 01@11@0-J
Unilever# 8000-9 *ur ;alues# I,nlineJ U%D> htt&>@@555#unilever#co! Iccessed
04@11@0-J
11
10
Introduction
Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns
many of the worlds consumer product brands in foods, beverages, cleaning agents
and personal care products. Unilever employs nearly 18, people and had
worldwide revenue of almost !" billion in #$.
Unilever is a dual-listed company consisting of Unilever%& in 'otterdam, %etherlands
and Unilever ()* in )ondon, +ngland. ,his arrangement is similar to that of 'eed
+lsevier and that of 'oyal Dutch -hell prior to their unified structure. .oth Unilever
companies have the same directors and effectively operate as a single business. ,he
current non-e/ecutive *hairman of Unilever %.&. and ()* is 0ichael ,reschow while
(atric1 *escau is 2roup *hief +/ecutive, who will retire at the end of #8. 0r (aul
(olman will succeed (atric1 *escau as 2roup *hief +/ecutive. ,he company is widely
listed on the worlds stoc1 e/changes.
1.2 Origin of report
-ince practical orientation is an integral part of the ..A program, 3 tried to e/pose real
life performance of Uniliver by preparing this report.
,o prepare this report 3 have come across with different information of the Uniliver.
4rom the collected information 3 understand the companys activities in the mar1et as
Uniliverll as in their internal preparation for mar1eting and others activities.
3 e/pect that this report will fulfill the re5uirement of ..A program and provide a clear
idea about the Uniliver activities and other multi-national companys effort in the
.angladesh.
,hus, Uniliver can get deep understand of actual situation of 0%s companys activities
by analy6ing their e/posed strategy .
1.3 Objective
,his -tudy is intended to analy6e mar1eting strategies used by Unilever .angladesh
)td and globe.
,he main purpose of the study is to find what strategies the company uses to mar1et
its products and brands worldwide7 the positive and negative aspects of those
strategies.
,he report further analy6es the position of Unilever .angladesh )td and globe in the
several industries in comparison to its competitors.
Specific objective:
11
,o 1now about Uniliver and Uniliver .angladesh.
,o develop -89, analysis of Uniliver .angladesh.
,o 1now about Unilivers strategy regarding product, price,place and promotion.
,o identify the segmentation,targeting and positioning strategy used by Uniliver
.angladesh.
,o develop some recoendation for further improvement in 0ar1eting strategy of
Uniliver .angladesh.
1.6 Methodology of this report
4or accessibility and availability of information 3 have chosen to wor1 on the 0ar1eting
strategies of Unilever .angladesh )td and globe. As the company operates in the
mar1et with a huge number of products in different industries, 3 have decided to focus
on one of their world wide successful strategy on providing data. 0ost of the
information used in this report is from secondary sources. ,he main source of
information was the Unilivers website. 3n addition information will be collected from
focus group discussion,depth interview and survey.
ri!ary Sources:
4ace to face conversation with the Unilivers people
*ustomer opinion collection through survey.
*ollection of data related with *ustomer satisfaction through survey.
0iscellaneous .oo1 'eading.
Secondary Sources:
Annual 'eports of Uniliver
&arious types of 9ebsite
Different research report.
Different %ewspapers, Articles, :ournals and (ublication.
Sa!ple Si"e:
3 have collected data from $ upper level employee through depth interview and 1
*ustomer for survey.
Sa!pling #echni$ue:
3n case of survey simple random sampling was used .
3n case of depth interview snowball sampling was used.
%ata analysis:
3 used 0icrosoft e/cel to analy6e the collected data and get the proper meaning.3
used also graph,picture to show and analy6e the data.
4or accessibility and availability of information 3 have chosen to wor1 on the strategies
of Unilever .angladesh )td and globe. As the company operates in the mar1et with a
huge number of products in different industries, 3 have decided to focus on one of their
world wide successful strategy on providing data. 0ost of the information used in this
14
report is from secondary sitces. ,he main sitsce of information was the Uniliverbsite.
3n addition information was also collected from focus group discussion.
1.& 'i!itation
,o conduct this study sheer e/periences are needed. .ut 3 have lac1 of those.
As li1e-
,he Data was not available about company.
9ithout practical wor1 e/perience it was difficult to do wor1.
*onfidential information are not e/posed in .angladesh.
3t was difficult to gather sufficient information due to limitation of time.
3t was also difficult to obtain proper information from respondents because of their
busy schedule.
)ac1 of 0oney
After all within time limited it is not possible learn and understand all the activities of
0%s company li1e Uniliver.
(hapter)*2
Overvie+ of ,niliver
Unilever at a glance
Unilever %&
Unilever ()*
#ype (ublic company
;A0-< U%A=
;)-+< U)&'=
;%>-+< U%= ;Unilever %.&.=
;%>-+< U)= ;Unilever ()*=
Industry *onglomerate
-ounded 1?@
.ead$uarters Unilever Aouse,
)ondon, United Bingdom'otterdam, %etherlands
/rea served 9orldwide
0ey people 0ichael ,reschow
;*hairman=
)ord -imon of Aighbury
12
;&ice *hairman=
(aul (olman
;*+8=
roducts -ee brands listing
1evenue !"",#C# million ;#1=
Operating inco!e !C,@@? million ;#1=
2et inco!e !",$?8 million ;#1=
3!ployees 1C@, ;#1=
,niliverbsite http<DDunilever.com
2.1 .istory 4 5ro+th
,nilever is a .ritish-Dutch multinational corporation that owns many of the worlds
consumer product brands in foods, beverages, cleaning agents and personal care
products.
Unilever is a dual-listed company consisting of Unilever %.&. in 'otterdam,
%etherlands and Unilever ()* in )ondon, United Bingdom.
,his arrangement is similar to those of 'eed +lsevier and 'oyal Dutch -hell prior to
their unified structures. .oth Unilever companies have the same directors and
effectively operate as a single business. ,he current non-e/ecutive *hairman of
Unilever %.&. and ()* is 0ichael ,reschow while (aul (olman is 2roup *hief
+/ecutive.
Unilevers main international competitors include %estlE and (rocter F 2amble. ,hey
also face competition in local mar1ets or product ranges from companies such as
.eiersdorf, *onAgra, Danone, 2eneral 0ills, Aen1el, 0ars, 3nc., (epsico, 'ec1itt
.enc1iser and -. *. :ohnson F -on.
History
Unilever was founded on 1 :anuary 1?@ by Antonius :ohannes :urgens, -amuel van
den .ergh and 9illiam Aulme )ever, #nd &iscount )everhulme.
,he amalgamation of the operations of .ritish soap ma1er Lever Brothers ,9illiam
Aulme )ever and Dutch margarine producer Margarine Unie, Anton :urgens en
-amuel van den .ergh, a merger as palm oil was a maGor raw material for both
margarines and soaps and could be imported more efficiently in larger 5uantities.
1-
,he initial harvesting of palm oil was from the .ritish Uniliverst Africa, from where news
reports seen bac1 in +ngland shoUniliverd the wor1ers abroad in favorable conditions.
3n 1?11 the company received a concession for H$, hectares of forest in .elgian
*ongo, mostly south of .andundu, where a system of forced labor operated. ,he
subsidiary of )ever was named IAuileries du *ongo .elgeJ. During the great
depression in the thirties, the Auileries sharply decreased the fee for gathered oil nuts,
while the government of .elgian *ongo strongly increased ta/ation. ,his resulted in
social unrest in 1?@1, which are 1nown as the 'evolution of the (ende, in which
eventually more than " members of the (ende-tribe were 1illed.
3n the 1?@s the Unilever business grew and new ventures were launched in Africa
and )atin America. 3n 1?H# Unilever purchased AF9 'estaurants *anadian division
but sold its shares through a management buyout to former AF9 4ood -ervices of
*anada *+8 :efferson :. 0ooney in :uly 1??C..y 1?8 soap and edible fats
contributed Gust "K of profits, compared with an original ?K. 3n 1?8" the company
bought the brand .roo1e .ond ;ma1er of (2 ,ips tea=.
3n 1?8H Unilever strengthened its position in the world s1in care mar1et by ac5uiring
*hesebrough-(onds, the ma1er of 'agL, (onds, A5ua-%et, *ute/ %ail (olish, and
&aseline. 3n 1?8? Unilever bought *alvin Blein *osmetics, 4abergE, and +li6abeth
Arden, but the latter was later sold ;in #= to 443 4ragrances.
3n 1??C Unilever purchased Aelene *urtis 3ndustries, giving the company Ia powerful
new presence in the United -tates shampoo and deodorant mar1etJ. ,he purchase
brought Unilever the -uave and 4inesse hair-care product brands and Degree
deodorant brand.
Global employment at Unilever 20002008
.lac1 represents employment numbers in +urope, light grey represents the Americas
and dar1 grey represents Asia, Africa, and 0iddle +ast. .etween # and #8
Unilever reduced global wor1force numbers by "1K, from #?$, to 1H",. %ote<
+urope figures for #M#@ are all +urope7 from #" figures in blac1 are 9estern
+urope. 4or #"M#8 4igures for Asia, Africa and 0iddle +ast include +astern and
*entral +urope.
Source: Unilever Annual Reports 2004, 2008
3n # the company absorbed the American business .est 4oods, strengthening its
presence in %orth America and e/tending its portfolio of foods brands. 3n April # it
bought both .en F :errys and -lim 4ast.
1.
,he company is multinational with operating companies and factories on every
continent ;e/cept Antarctica= and research laboratories at *olworth and (ort -unlight
in +ngland7 &laardingen in the %etherlands7 ,rumbull, *onnecticut, and +nglewood
*liffs, %ew :ersey in the United -tates7 .angalore in 3ndia ;see also Aindustan
Unilever )imited=7 and -hanghai in *hina.
,he U- division carried the )ever .rothers name until the 1??s, when it adopted that
of the parent company. ,he American unit has head5uarters in %ew :ersey, and no
longer maintains a presence at )ever Aouse, the iconic s1yscraper on (ar1 Avenue in
%ew >or1 *ity.
,he company is said to promote sustainability and started a sustainable agriculture
programme in 1??8. 3n 0ay #H it became the first tea company to commit to sitscing
all its tea in a sustainable manner, employing the 'ainforest Alliance, an international
environmental %28, to certify its tea estates in +ast Africa, as will as third-party
suppliers in Africa and other parts of the world. 3t declared its aim to have all )ipton
>ellow )abel and (2 ,ips tea bags sold in 9estern +urope certified by #1, followed
by all )ipton tea bags globally by #1$.
Unilevers )ipton brand
*ovalence, an ethical reputation ran1ing agency, placed Unilever at the top of its
ran1ing based on positive versus negative news coverage for #H.
3n #H, Unilevers Dove I+volutionJ video that ran only online, was named the first
ever non-tv spot to win the 2rand )ion at the *annes Advertising 4estival. And in
0arch, #8, Unilever was named IDigital 0ar1eter of the >earJ by Advertising Age.
3n #8 Unilever was honored at the $?th Annual ,echnology F +ngineering +mmy
Awards for I8utstanding Achievement in Advanced 0edia ,echnology for *reation and
Distribution of 3nteractive *ommercial Advertising Delivered ,hrough Digital -et ,op
.o/esJ for its program Axe: Boost Yits S!"
8n #$ -eptember #?, Unilever decided to ac5uire the personal care business of
-ara )ee *orporation< leading brands such as 'ado/, .adedas and Duschdas
strengthened category leadership in -1in *leansing and Deodorants.
8n ? August #1, Unilever signed an asset purchase agreement with the %orwegian
dairy group ,3%+, to ac5uire the activities of Diplom-3s in Denmar1, as of @
-eptember #1.
8n #" -eptember #1, Unilever announced that it has entered into a definitive
agreement to sell its consumer tomato products business in .ra6il to *argill.
1/
8n #H -eptember #1, Unilever purchased Alberto-*ulver, the ma1er of personal
care and household products such as -imple, &8$, %e//us, ,'+-emmE, and 0rs.
Dash for NU-@.H billion.
8n #8 -eptember #1, Unilever and +&2A announced that they have signed an
agreement under which Unilever will ac5uire +&2As ice cream brands ;amongst
others, -candal, &ariete and Barabola= and distribution networ1 in 2reece, for an
undisclosed amount.
8n #@ 0arch #11< Unilever announced that it has entered a binding agreement to sell
the global -ane/ business to *olgate-(almolive for !CH#m. Unilever also announced
that it has entered into a binding agreement to ac5uire *olgate-(almolives laundry
detergent brands ;4ab, )avomatic and &el= in *olombia for U-N#1$m.
2.2 .istory 4 5ro+th in 6angladesh perspective
Unilever .angladesh is a company that has its own history intrinsically built with the
development of its nation and its culture. 3t has been part of the .angladeshi
household since the 1?th century with the same intention of bringing cleanliness and
convenience to households as Uniliver do today. .ac1 then -unlight soap was
mar1eted through )ever .rothers 3ndia limited throughout the undivided 3ndia. )ater
on, )ever .rothers (a1istan limited started its operation in .angladesh on a larger
scale. 3n 1?C", its soap manufacturing facility was setup in Balurghat, *hittagong.
9ith time it gradually evolved and diversified into manufacturing personal products li1e
s1in care creams, toothpastes, shampoos, detergent powders, and so on.
Accumulating manufacturing e/perience over " years, Uniliver has a legacy of
leading the mar1et with international brands offered at affordable prices. ,oday, with 1@
different brands in 8 different categories, Unilever .angladesh stands as one of the
most progressive partner in development for the 2overnment of .angladesh.
176&)1782
(roductions started off with -unlight soap and )ifebuoy soap. After the war of
independence in 1?H1, .angladesh became an independent country. At this time,
)ever .rothers .angladesh )td. was constituted with Unilever owning C.H$K shares
and the 2overnment of .angladesh owning the remaining @?.#$K shares.
1782)179*
(ost liberation period evidenced accelerated growth for the company. Demand started
rising and the company continued its mission to meet consumer needs by producing
5uality soaps, introducing )u/ M the beauty soap and 9heel. )aunched in 1?H# 9heel
19
entered the merchandised laundry category, traditionally dominated by cottage soaps.
3t appealed to the consumers with uni5ue care benefits for hand and fabric, a generic
wea1ness in cottage soaps. 3t gradually became the secret ally of .angladeshi women
by e/tending the caring hand to ease her daily laundry chores.
179*)177*
,he early eighties witnessed e/pansion of the company through diversification.
*alibrating direction, the mission now included enhancing 5uality of life through other
personal products aspiring aestheticism li1e spar1ling white teeth, fresh breath,
beautiful hair, and glowing s1in. A (ersonal (roduct (lant was established to
manufacture shampoo, toothpaste, and s1in care creams. -unsil1 -hampoo, *loseup
,ooth paste, 4air and )ovely for s1in care and &im for dish washing was produced and
mar1eted to bring great international and regional formulations to .angladeshi
households at affordable prices. 1?8? heralded the beginning of a fairy tale story M the
initiation of )UO photogenic contest that brought the real life e/perience of glamits,
fame and fortune to the doorsteps of young girls throughout the country.
177*)1779
3n the early ?Ps Unilever .angladesh entered the tea-based beverage mar1et
introducing )ipton ,aa6a, )evers flagship pac1et tea brand, with the obGective to be the
most preferred tea of the .angladeshi consumers. 9orld renowned (onds cream and
(epsodent M the dental hygiene e/pert began to be manufactured from its Balurghat
factory. 9ashing drudgeries of the busy homema1ers were washed away with the
introduction of 9heel washing powder and -urf +/cel for premium wash. 3n 1??C-
1??H, its manufacturing facility owned and run by a third party was set up outside
Dha1a for wheel washing powder. 9ith formulations suitable for local conditions, the
washing powder concept brought about a huge revolution in fabric washing habits in
the country.
1779)2**&
,hese are the golden years in the history of Unilever .angladesh as the company
turned around from severe losses due to competitive bac1lash M to a company with C
years of consecutive growth. Around the end of %ovember #1, its new personal
products factory I-an1alpJ in Balurghat started production which helped us meet the
mar1et needs from a shift on its dependence on soaps to diverse personal grooming
categories.
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,his is also the era when Unilever .angladesh introduced many e/citing new products
such as (onds face wash to end soap related facial s1in woes or )ipton double
chamber tea bags for more 6est in its tea cups and the mar1ets responded
enthusiastically. 3n #1, Uniliver brought about a new e/citement in the 1itchen care
sector with the introduction of &im bar, the dish cleaning soap M a concept of
convenience and common household habits combined together.
3n ## 'e/ona deodorant entered the mar1et building in awareness about body odits
problems and creating a new personal grooming habit in the country. ,he companys
soap formulations changed radically during this time to bring in world class standards M
without any price rises. )ifebuoy, the health brand has moved from Gust the hard-
wor1ing mens soap to reminding one, of the bond of love that binds a family in a
healthy circle, free of germs and sic1ness. 3n #", as a new variant, bringing in the
goodness of %eem M an Ayurvedic medical marvel, )ifebuoy has reinstated its earnest
endeavits to be ahead of consumers needs.
3n the span of these si/ years, Uniliver gathered many accolades ;lin1 to awards page=
to certify its fast paced move towards world class performance. Unilever .angladesh
had a Gitney towards adding new impetus to its trade mar1eting and today its products
are available in ?K of the households in .angladesh.
3n a company wide move to come out from behind the great brands and be 1nown as
Unilever worldwide, )ever .rothers .angladesh limited officially changed its name to
Unilever .angladesh in December #".
2.2.1 ,nilever 6angladesh :core infor!ation;
8ver the last fits decades, Unilever .angladesh has been constantly bringing new and
world-class products for the .angladeshi people to remove the daily drudgery of life.
8ver ?K of the countrys households use one or more of its products. Unilever
.angladesh is a 4ast 0oving *onsumer 2oods company with local manufacturing
facilities, reporting to regional business groups for innovation and business results.
*onstitution
Unilever M C.H$K shares, 2overnment of .angladesh M @?.#$K
(roduct categories
Aousehold *are, 4abric *leaning, -1in *leansing, -1in *are, 8ral *are, Aair *are,
(ersonal 2rooming, ,ea based .everages.
Unilever .angladesh .rands
01
9heel, )u/, )ifebuoy, 4air F )ovely, (onds, *lose Up, -unsil1, ,aa6a, (epsodent,
*lear, &im, -urf +/cel, 'e/ona, A/e, Dove, F &aseline.
0anufacturing facilities
,he *ompany has a -oap 0anufacturing factory and a (ersonal (roducts 4actory
located in *hittagong. .esides these, there is a tea pac1aging operation in *hittagong
and three manufacturing units in Dha1a, which are owned and run by third parties
e/clusively dedicated to Unilever .angladesh.
2.2.2 0ey %ates:
1982: ,wo Dutch firms, :urgens and &an den .ergh, begin commercial production of
margarine.
199<: 9illiam Aes1eth )ever establishes soap factory in 9arrington, mar1ing the
beginnings of )ever .rothers.
17*9: :urgens and &an den .ergh pool their interests.
171&: )ever begins producing margarine at the re5uest of the .ritish government.
1728: :urgens and &an den .ergh create dual-structured 0argarine Union )imited and
0argarine Unie %.&.
1727: 0argarine UnionD0argarine Unie merges with )ever .rothers to create Unilever,
with dual Anglo-Dutch structure.
173*: -pecial committee is established as a board of directors over the .ritish and
Dutch Unilever holding companies.
1738: 'eorgani6ation e5uali6es the assets of the Dutch and the .ritish groups of
Unilever7 ,homas :. )ipton *ompany, U.-. manufacturer of tea, is ac5uired.
17&&: ,he U.-. toothpaste brand (epsodent is ac5uired.
17<8: *ompany ac5uires U.B. fro6en foods ma1er .irds +ye.
1761:U.-. ice cream novelty ma1er 2ood Aumor is ac5uired.
179&: .uying spree begins that will last until 1?88 and result in about 8 companies
being ac5uired7 .roo1e .ond, the leading +uropean tea company, is ac5uired through
hostile ta1eover.
1796: *ompany ac5uires *hesebrough-(onds, its largest purchase to date.
1797: ,he ac5uisition of three companies, including 4abergE 3nc., ma1es the company
a maGor player in the world perfume and cosmetics industry.
177&: ,he launch of a new laundry detergent in +urope turns into a public relations
disaster when tests reveal that it can damage clothes under certain conditions.
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1776: 4undamental management reorgani6ation is launched, including the replacing of
the special committee with a seven-member e/ecutive committee.
1778: -pecialty chemicals operations are sold to 3mperial *hemical 3ndustries ()* for
about U-N8 billion.
1777: *ompany announces that it will eliminate about 1,# of its brands to focus on
around " regionally or globally poUniliverrful brands.
2.3 (orporate Objective
,he purpose of Unilever is to meet the everyday needs of peopleQeverywhere
anticipate the aspirations of companys consumers and customers and to respond
creatively and competitively with branded products and services which raise the 5uality
of life.
*ompanys deep roots in local cultures and mar1ets around the world are its
unparalleled inheritance and the foundation for companys future growth. ,he Unilivr
will bring its wealth of 1nowledge and international e/pertise to the service of local
consumersMa truly multi-local multinational.
*ompanys long term success re5uires a total commitment to e/ceptional standards of
performance and productivity, to wor1ing together effectively and to a willingness to
embrace new ideas and learn continuously.
Uniliver believe that to succeed re5uires the highest standards of corporate behavior
towards its employees, consumers and the societies and world in which it e/ist.
,his is Unilevers road to sustainable, profitable growth for its business and long-term
value creation for Uniliver shareholders and employees.
2.& =ision> Mission 4 5oals
=ision
Unilever products touch the lives of over # billion people every day M whether thats
through feeling great because theyve got shiny hair and a brilliant smile, 1eeping their
homes fresh and clean, or by enGoying a great cup of tea, satisfying meal or healthy
snac1.
,he fits pillars of Uniliver vision set out the long term direction for the company M
where its want to go and how it is going to get there<
3t wor1 to create a better future every day
3t help people feel good, loo1 good and get more out of life with brands and services
that are good for them and good for others.
3t will inspire people to ta1e small everyday actions that can add up to a big
difference for the world.
01
3t will develop new ways of doing business with the aim of doubling the si6e of its
company while reducing its environmental impact.
Uniliver has always believed in the power of its brands to improve the 5uality of
peoples lives and in doing the right thing. As its business grows, so do its
responsibilities. Uniliver recogni6e that global challenges such as climate change
concern us all. *onsidering the wider impact of its actions is embedded in its values
and is a fundamental part of who it is.
Mission
Uniliver mission is to add &itality to life. 3t meet everyday needs for nutrition, hygiene
and personal care with brands that help people loo1 good, feel good and get more out
of life.
3n the last five years, it has built its business by focusing on its brands, streamlining
how Uniliver wor1, and improving its insight into the evolving needs and tastes of
consumers. %ow Uniliver are ta1ing the ne/t step in simplification M by aligning its
selves around a clear common mission.
Uniliver recogni6e that the world in which Uniliver operate is changing. *onsumers are
increasingly bringing their views as citi6ens into their buying decisions, demanding
more from the companies behind the brands. ,hey want companies and brands they
trust.
Unilever embraces these new e/pectations. 3ts heritage of good governance, product
5uality and long e/perience of wor1ing with communities gives us a strong base.
Uniliver aim to build on this by ta1ing the ne/t step in transparency and accountability.
3t will stand visibly as Unilever, behind its products and everything Uniliver do,
everywhere.
+very day 1$ million people in over 1$ countries choose its products. Already, most
of its brands give the benefits of feeling good, loo1ing good and getting more out of life.
.ertolli, for e/ample, conGures up the 3talian 6est for life and .ecelD4lora 1eeps hearts
healthy. -unsil1 helps you feel happier because yits hair loo1s great. 3ts laundry brand,
8mo, encitsages children to get dirty so they can e/perience more of life.
3n the future, its brands will do even more to add vitality to life. 3ts vitality mission will
focus its brands on meeting consumer needs arising from the biggest issues around
the world today M ageing populations, urbani6ations, changing diets and lifestyles.
Uniliver see growing consumer need for<
a healthy lifestyle
more variety, 5uality, taste and enGoyment
04
time, as an increasingly precious commodity
Aelping people to feel good, loo1 good and get more out of life will enable us to
meet these needs and e/pand its business.
Unilever is in a uni5ue position to understand the interrelationships between nutrition,
hygiene and personal care. Uniliver can do this than1s to its strong science capability
and its locally rooted consumer insight. 3t is by bringing all this together that Uniliver
can strive to contribute to 5uality of life and wellbeing - adding vitality to life.
,he long-term success of its business is intimately interconnected with the vitality of
the environment and the communities in which Uniliver operate. ,he environment
provides us with its raw materials and the ingredients Uniliver need to ma1e its
products. Aealthy, prosperous communities provide us with a healthy, growing
consumer base
5oals
Unilever Unveils $ -ustainability 2oals
$ specific goals that include social and health-related targets under the Unilever
-ustainable )iving (lan released today. 3t e/panded on a commitment made last year
to double sales while reducing overall environmental impact.
,he new plan gets far more specific. And progress on this Isocial missionJ is now part
of every Unilever initiative launch plan alongside sales and profit targets, 0r. )ewis
said, president of Uniliver America.
Unilever isnt the only company to recently step up environmental goals, but its targets
are more ambitious than many, maybe even most. (rocter F 2amble *o. also
announced bigger sustainability goals for ## in -eptember, targeting, among other
things, a #K reduction in pac1aging per consumer use, but Unilevers goal is for an
absolute reduction of @@K.
ledge to use sustainable sits
Unilever is pledging to sits all of its agricultural raw materials from sustainable sits by
## and half by #1$. ,hat could drive up costs, but it is manageable by Uniliver.
8ne of Unilevers more ambitious targets is to e/pand its (ure3t water-filtration brand,
launched in 3ndia in #", to elsewhere in Asia, )atin America and sub--aharan Africa.
3t aims to have such systems provide safe drin1ing water to $ million globally by
## Q a population bigger than -outh Americas current @8$ million or nearly half of
3ndias current 1.1 billion.
,he companys new I-ustainable )iving (lan,J developed over the cites of the last 1#
months, and unveiled around the globe today, focuses on Unilevers entire supply
02
chain, from the farms that supply raw materials for its products to the emissions and
waste generated by customer use of those products.
/!ong the targets ,nilever has set:
R -ince 1 percent of agricultural raw materials sustainable by #1$, including 1
percent sustainable palm oil. Unilever buys @ percent of the worlds annual supply of
palm oil.
R *hange the hygiene habits of 1 billion people in Asia, Africa and )atin America to help
reduce diarrhea Q the words second biggest cause of infant mortality. Unilever will
push sales of its )ifebuoy soap brand and teach consumers when to wash their hands
to achieve this aim.
R 0a1e drin1ing water safer in developing countries by e/tending sales of its (ure3t
home water purifier.
R 3mprove standards of living by wor1ing with agencies such as 8/fam and the
'ainforest Alliance to lin1 $, smallholders and small-scale distributors to the
Unilever supply chain.
According to ,he 2uardian<JSUnileverT also intends to improve the nutritional 5uality of
its food products Q with cuts in salt, saturated fats, sugar and calories Q and lin1
more than $, small holder farmers and small scale distributors in developing
countries to its supply chain.J
,he -ustainable )iving (lan sets out over $ social, economic and environmental
targets. 3t will see Unilever, whose global brands include Dove, 8mo, Bnorr and )ipton,
halve the greenhouse gas emissions, water and waste used not Gust by the company in
its direct operations, but also by its suppliers and consumers.
8ver two-thirds of greenhouse gas emissions and half the water used in Unilever
products lifecycle come from consumer use, so this is a maGor commitment on an
unprecedented scale.
Other ?ey goals ,nilever plans to achieve by or before 2*2* include:
1K of its agricultural raw materials sustainable including, by #1$, 1K
sustainable palm oil7
*hanging the hygiene habits of 1 billion people in Asia, Africa and )atin America so
that they wash their hands with )ifebuoy soap at 1ey times during the day M helping to
reduce diarrhea disease, the worlds second biggest cause of infant mortality7
0a1ing safe drin1ing water available to half a billion people by e/tending sales of its
low-cost in-home water purifier, (ure3t, from 3ndia to other countries7
0-
3mproving livelihoods in developing countries by wor1ing with 8/fam, 'ainforest
Alliance and others to lin1 over $, smallholder farmers and small-scale
distributors into its supply chain.
(aul (olman ;group chief e/ecutive= emphasi6ed that Unilever did not have all the
answer were and that the company would need to wor1 in partnership with customers,
suppliers, governments and %28s if it was to achieve its goals.
2.6 =olu!e gro+th ahead of ,niliver !ar?ets
,able-1
Underlying volume growth:
4inancial >ear 2rowth
#8 .1K
#? #.@K
#1 $.8K
Underlying volume growth accelerated in #1 to $.8K, the best that Unilever has
achieved for more than @ years. Uniliver set out two years ago to reignite its volume
growth and to grow ahead of its mar1ets. ,hat is what Uniliver are starting to do7 its
volume shares are up in all regions and in most categories.
&olume growth was broad based. 3n its emerging mar1ets business Uniliver grew
volumes by around 1K over the year as a whole, with the 1ey businesses of *hina,
3ndia and ,ur1ey all delivering growth well into double digits. 8nly in *entral and
+astern +urope did Uniliver see more subdued growth, although even here volumes
were comfortably up in difficult mar1ets. 3n the developed world, where growth has
been very hard to achieve over the recent past, its volumes were also up by around
#K, again ahead of the mar1et, in both 9estern +urope and %orth America.
Uniliver gained volume share in all regions, with particularly strong performance in 1ey
emerging mar1ets such as *hina, 3ndonesia, -outh Africa and Argentina. Uniliver stern
+urope also saw strong volume share gains, led by the %etherlands, 4rance and 3taly.
&olume shares were also up in most of its core categories, with deodorants, s1in
cleansing, household care, ice cream and dressings all achieving notable gains during
the year.
Steady i!prove!ent in !argin
Underlying 8perating 0argin for the year increased by # basis points. 3t was another
year of the steady and sustainable improvement that Uniliver have been targeting.
0.
*ost saving programmes again delivered strongly, with !1." billion of savings in the
year following a similar amount in #?. 0uch of the success in savings came in the
supply chain, and as a result gross margin, at constant currency, improved for the year
despite negative underlying price growth and modestly higher commodity costs.
(ositive mi/ and improved volume leverage also contributed positively to gross margin.
At the same time as increasing underlying operating margin Uniliver also increased
substantially the advertising and promotions investment put behind its brands M at
constant currency the increase was more than !@ million or @ basis points in the
year. ,his came after an even bigger increase in #?, meaning an additional !H
million behind the building of its brand e5uities over the last two years. Aside from the
gross margin increase, the 1ey driver of margin improvement was a reduction in
indirect costs, with the organi6ation now leaner and a new discipline e/erted in all
areas of the cost base.
Aealthy cash delivery
9or1ing capital reduced as a percentage of turnovers and has now been negative for
over 1# months. ,he cash conversion cycle improved by 1H days, from # days in
#? to Gust three in #1. Uniliver are close to best in class in its management of
payables and receivables, but in inventories Uniliver still see scope for further
improvement.
,his strong performance in wor1ing capital management was reflected in free cash
flow, which was again healthy at !@." billion. 8ver the last two years its combined free
cash flow of !H." billion represents around ?K of net profit. ,his is robust
performance, particularly at a time when Uniliver are investing heavily in the future
growth of the business in areas such as capital e/penditure, as it build new capacity to
support its rapid volume growth in emerging mar1ets. ,he !.H billion reduction versus
#? reflected a smaller inflow from wor1ing capital in #1, following the e/ceptional
benefit of !1.H billion ta1en in #?.
#.8 *orporate image
Unilever claims that corporate social responsibility is at the heart of its business.
Aowever Uniliver, the transition to a responsible and sustainable company is ongoing
and it has attracted a variety of criticisms from political, environmental and human
rights activists on not achieving the high aims it communicates on a number of topics.
0/
2.9.1 3nviron!ental issues
Unilevers stated goals are to decouple growth from the companys environmental
impact by
halving the environmental footprint of its products
helping 1 billion people improve their health and well-being
since all of its agricultural raw materials sustainably
al! oil
Unilever has been critici6ed by 2reenpeace for causing deforestation, Unilever was
targeted in #8 by 2reenpeace UB, which critici6ed the company for buying palm oil
from suppliers that are damaging 3ndonesias rainforests. Unilever, as a founding
member of the 'oundtable on -ustainable (alm 8il ;'-(8=, responded by publici6ing
its plan to obtain all of its palm oil from sitsces that are certified as sustainable by
#1$.
3n *Ute d3voire, one of Unilevers palm oil suppliers was accused of clearing forest for
plantations, an activity that threatened a primate species, 0iss 9aldrons 'ed
*olobus. Unilever intervened to halt the clearances pending the results of an
environmental assessment.
8n " :uly #1, Unilever announced that it has secured enough 2reen(alm
certificates of sustainable palm oil to cover the re5uirements of its +uropean, Australia,
and %ew Vealand business. 2reen(alm is a certificate trading programme, endorsed
by the '-(8, which is designed to tac1le the environmental and social problems
created by the production of palm oil.
1ainforest /lliance
Unilever has committed to purchase all its tea from sustainable, ethical sitsces. 3t has
as1ed the international environmental %28, 'ainforest Alliance, to start by certifying
tea farms in Africa.
)ipton and (2 ,ips will be the first brands to contain certified tea. ,he company aims
to have all )ipton >ellow )abel and (2 ,ips tea bags sold in 9estern +urope certified
by #1 and all )ipton tea bags sold globally by #1$.
/ni!al testing
Unilever states it is committed to the elimination of animal testing, and where it is a
legal re5uirement in some countries, it tries to convince the local authorities to change
the law. -ome activistsargue that this is little more than an effort to gain good publicity
and Unilever continue to use animal e/perimentation such as the )D$ poisoning test.
2.9.2 Social issues
09
1ace and advertise!ents
Aindustan Unilever, had been showing television advertisements for s1in-lightening
cream, 4air and )ovely, depicting depressed, dar1-s1inned women, who had been
ignored by employers and men, suddenly finding new boyfriends and glamorous
careers after the cream had lightened their s1in.
,he Austrian branch of Unilever ;+s1imo= is producing and mar1eting an ice-cream
under the name 0ohr im Aemd. I0ohrJ ;moor=, is a colonial 2erman word for African
or blac1 people, has a heavily colonialist and racist connotation, I0ohr im AemdJ
;moor in the shirt= is a traditional Austrian chocolate specialty which refers to na1ed,
IwildJ Africans. Unilever refutes any racist intentions and claims that it has tested the
name in broad mar1et studies in Austria without any critical feedbac1.
Se@is! in advertise!ents
,he *ampaign for a *ommercial-4ree *hildhood critici6ed Unilever for the #H A/e
mar1eting campaign, which they considered se/ist. Unilevers response is that the A/e
campaign is intended as a spoof and Inot meant to be ta1en literallyJ.
Unilever has launched the Dove I'eal .eautyJ mar1eting campaign, which envisaged
women to reGect the underfed and hyper-se/uali6ed images of modern advertising in
#H.
(hild labor
3n #@ Aindustan Unilever was accused of ma1ing use of child labor, among others.
#.? 8rgani6ational -tructure
Billion-Euro brands
.rands with annual sales of one billion euros or more<
A/eD)yn/
.lue .and
Dove
4loraD.ecel
Aeartbrand
Aellmans
Bnorr
)iptons
)u/ ;soap=
8moD-urf ;detergent=
'e/onaD-ure
-unsil1
,323 ;haircare=
10
.eartbrand
,he Aeartbrand logo accompanying various brands of Unilever ice creams.
Unilever is the worlds biggest ice cream manufacturer, with an annual turnover of !$
billion. +/cept for the U-A brand names (opsicle, Blondi1e, 8cean -pray ice cream,
-lim 4ast ice cream, .reyers, -tarbuc1s and .en F :errys7 all of its ice cream
business is done under the IAeartbrandJ brand umbrella, so called because of its
heart-shaped logo. Unilever currently operates eleven ice cream factories in +urope7
the biggest include factories at Aeppenheim in 2ermany, *aivano in 3taly, -t. Di6ier in
4rance, 2loucester in the United Bingdom and -anta 3ria da A6Wia in (ortugal.
,he Aeartbrand was launched in 1??8 ;and slightly modified in #@= as an effort to
increase international brand awareness and promote cross-border synergies in
manufacturing and mar1eting ;Icentrali6ationJ=. 3t is present in more than " countries.
Although the logo is common worldwide, each country retained the local brand so as to
1eep the familiarity built over the years, one notable e/ception being Aungary where
the previous +s1imo brand was replaced with Algida in #@.
3n #$, 2lidat -trauss received special permission from Unilever to e/port their brand
of ice cream to the United -tates because of the strict 1osher certification the products
in 3srael have. Under terms of the agreement, -trauss ice cream and 1rembo may be
sold only in 1osher supermar1ets and import shops. 3t is distributed in %orth America
by Dairy Delight, a subsidiary of %ormans Dairy.
(rior to the heart logo, each country could choose its own logo, although the most
common one consisted of a blue circle with the local brands name over a bac1ground
of red and white stripes7 second most common old logo, used by 9alls in the UB and
other countries, was a yellow logo with 9alls in blue te/t.
Unilever generally manufactures the same ice-cream with the same names, with rare
occasions of regional availability, under different brands. -ome of these ice-creams
include *arte D8r, *ornetto, 0agnum, -olero and &iennetta.
Food and beverages
Ades or Ade6 Q soya-based drin1s
Alsa Q desserts and syrups
Amora Q 4rench mayonnaise and
dressings
Amino Q dehydrated soup
;(oland=
Annapurna Q salt and wheat flits
;3ndia=
)adys *hoice Q mayonnaise, peanut
butter and sandwich spreads ;(hilippines,
0alaysia=
)an-*hoo Q tea ;AustraliaD%ew
Vealand=
)ao *ai -easoning
)ipton Q tea
)ipton 3ce ,ea Q ready-to-drin1 tea
11
.a1ers :oy M %on stic1 ba1ing
spray
.ecel Q also 1nown as
4loraD(romise7 health-aware<
margarine, spreads, coo1ing oil, mil1,
fermented mil1
.en F :errys Q ice cream
.est 4oods Q mayonnaise,
sandwich spreads, peanut butter and
salad dressings
.ertolli Q pasta sauces
;ambientDchilled F fro6en= and
margarine
.i4i Q sausage-based snac1s
;2ermany=
.lue .and Q family-aware<
margarine, bread, cream alternatives
.ovril Q beef e/tract
.reyers Q ice cream
.roo1e .ond Q tea
.ru Q instant coffee ;3ndia=
.rummel F .rown Q margarine
.ushells Q tea ;Australia, %ew
Vealand=
*alvE Q sauces, 1etchup, mustard,
mayonnaise, peanut butter
*hic1en ,onight M Unilivert sauces
range
*hoysa M ,ea, mar1eted mainly in
Australia and %ew Vealand
*onime/ Q Asian spices
;%etherlands=
*olmans Q mustard,condiments,
pac1et sauces F 8B 4ruity -auce
*ontinental Q side dishes
*ountry *roc1 Q margarine
Delma Q margarine ;(oland=
Du Darfst ;2ermany=
+lmlea Q (itsable artificial cream
available in different varieties ;UB=
4anacoa Q 0ayonnaise, mustard,
1etchup ;Argentina=
4indus Q fro6en foods ;3taly, UB,
;partnership with (epsi*o=
)i6ano -auce ;-alsa )i6ano= Q *osta
'ican condiment
)yons Q tea ;3reland=
0aille Q 4rench mustard
0ai6ena Q corn starch
0armite Q yeast e/tract spread
;e/cept in Australia and %ew Vealand,
called 3ts 0ate=
0c*ollins Q tea ;(eru=
0rs Dash M -easonings range
0olly 0c.utter
0rs. 4ilberts Q margarine ;U-A=
(addle pop Q 3ce cream ;Australia,
3ndonesia, 0alaysia Sincorporated with
9allXsT=
(fanni Q .avarian potato mi/es
(eperami Q -ausage snac1s
(2 ,ips Q tea ;UB=
(hase Q coo1ing oil
(lanta Q margarine
(opsicle Q 4ro6en treats
(ot %oodle Q cup noodles
(romise Q .ecelD4lora
'agL Q pasta sauces
'ama Q margarine
'oyal Q pastas ;(hilippines=
'oyco Q stoc1 cubes, non-0-2
stoc1 ;only in 3ndonesia=
'ed 'ose ,ea Q tea ;*anada=
-ana Q 0argarine ;,ur1ey=
-aga Q tea ;(oland=
-ariwangi Q tea ;3ndonesia=
-cottish .lend Q tea
-1ippy Q peanut butter
-limR4ast Q diet products
-ugar ,win
-unce ;-un= Q 0ayonnaise ;-erbia,
0acedonia, .osnia and Aer6egovina,
0ontenegro= brand now discontinued,
-unce factory now produces Uniliver
brand Bnor 0ayonnaise
-tor1 margarine
10
-candinavia=
4lora Q margarine, light butter,
Gams
4ruco Q 1etchup, mayonnaise and
condiments
4udgsicle
2allo Q olive oil
Aeartbrand Q ice cream ;umbrella
logo=
Aellmanns Q mayonnaise
3 *ant .elieve 3ts %ot .utter Q
margarine spread
3mperial 0argarine Q margarine
:if )emon F )ime :uice
Basia Q margarine ;(oland=
Becap .ango Q soya sauce in
3ndonesia
Bissan Q Betchups -5uashes and
:ams ;3ndia and (a1istan=
Blondi1e Q 3ce cream sandwiches
Bnorr ;Bnorr--ui6a in Argentina= Q
sauces, stoc1 cubes, ready-meals,
meal 1its, ready-soups, fro6en food
range
-treets ;ice cream= ;AustraliaD%ew
Vealand=
,orte/ Q 1etchup ;(oland=
,urun sinappi Q mustard
;4inlandD-Uniliverden=
Unilever 4ood -olutions Q
professional mar1ets ;food service=
Uno/ Q soups, smo1ed sausages
&a5ueiro Q coo1ing margarine,
coo1ing oil
9alls ice cream
9ish-.one salad dressing
artial list of national brands variants of the
.eartbrand
Algida Q *6ech 'epublic, *yprus,
2reece, Aungary, 3taly, 'epublic 8f
0acedonia, 0alta, (oland, 'omania,
'ussia, -erbia, -lova1ia, -lovenia,
,ur1ey, )atvia, )ithuania
.resler Q *hile
*argills Q -ri )an1a
+s1imo Q Austria
4rigo Q -pain
4ris1o Q Denmar1
2. 2lace Q -Uniliverden, 4inland
2lidat -trauss Q 3srael, U-A
2ood Aumor Q U-A, *anada,
*hina
A. Q 3reland
Aelados )a 4uente Q *olombia
Bibon Q .ra6il
Bwality 9alls Q 3ndia
)angnese Q 2ermany
)usso Q -wit6erland
0i1o Q 4rance
8la Q .elgium, %etherlands,
)u/embitsg, -outh Africa
8lY Q (ortugal
(ingZino Q +cuador
-electa Q (hilippines
-treets Q Australia, %ew Vealand
;slogan [%othing .eats -treets=
,io 'ico Q &ene6uela
9alls Q United Bingdom ;2reat
.ritain=, Aong Bong, -ingapore,
3ndonesia, (a1istan, 0alaysia, ,hailand
11
Q *hina
Aolanda Q 0e/ico, *entral
America
and other parts of Asia
9alls A. Q United Bingdom
;%orthern 3reland=
Home and personal care brands
Ala Q laundry detergent ;Argentina=
Andrelon
A/e Q deodorant, shoUniliverr gel,
bodyspray ;)yn/ in the UB, 3reland and
Australasia=
Ayush ;3ndia=
.adedas Q -hoUniliverr gels
.aba ;+ast +urope=
.iote/ Q laundry detergent
.rilhante Q laundry detergent
;.ra6il=
.ris1-Aair -tyling products for men
;-outheast Asia,%orth America,All
'egions,All &ariants<.ris1 Aairstyling
Unilivertloo1,.ris1 Aairstyling
Unilivertloo1 +/tra -trong,.ris1
-hampoo # in 1 4or 0en,.ris1
Aairstyling *ream Antidandruff,.ris1 Aair
*ream=
.rut Q cologne, aftershave
.rylcreem Q hair styling products for
men
*aress Q soap
*if Q cleaning
*lear Q anti-dandruff shampoo and
conditioner;*hina, -outheast Asia,
'omania, (a1istan, (oland, Aungary=
*lose-Up Q toothpaste
*occolino Q softener ;(oland,
Aungary, 'omania=
*omfort
*onsort M 0en hair care
*ream -il1 Q conditioner
;(hilippines=
Degree Q deodorant
Dimension
Domestos Q bleach ;(oland, *6ech
'epublic, 'omania, Aungary, -pain,
(ears ,ransparent -oap
(epsodent Q dental ;outside of the
United -tates=
(ersil ;3+DUBD4'D%V=
(onds ;8utside of the United Bingdom
and United -tates=
(rodent Q toothpaste
\ui/ Q dishwashing li5uid ;*hile=
\-,ips Q cotton swabs
'ado/ Q -hoUniliverr gels and .ubble
.ath 'ange
'e/ona Q deodorant
'inso
'obiGn Q softener
-alon -electives M shampoo and
conditioner ;sold in #1 to *),
3nternational=
-edal ;1nown in .ra6il as -eda=
shampoo and conditioner
-ignal
-impleQ -1inD body care range
-' Q toothpaste with sodium
ricinoleate
-1ip Q laundry detergent
-tatic 2uard
-uave
-un Q dishwasher
-unlight
-unsil1 ;-edal in )atin America, -eda
in .ra6il= Q shampoo and conditioner
-ure
-urf Q laundry detergent
-oft F .eautiful M Aair *are products
-t 3ves M Aand F body care
-wan ;defunct=
,.* M Aair care range
,hermasil1 Q shampoo and
conditioner
14
2ermany, 3taly, 3srael, 4rance, ,ur1ey,
Australia=
Dove Q s1in, hair, and deodorant
Dusch Das Q shoUniliverr gels
4air and )ovely Q s1in lightening
product ;available in 3ndia and 0alaysia=
4D- M -1in care range
4inesse Q shampoo and conditioner
;sold in #C to )ornamead .rands, 3nc.=
2essy ;.ra6il=Q soaps
2lori/ ;%etherlands=
2ood 0orning Q soap ;+gypt=
3mpulse Q deodorant F body spray
:ust for me M Bids hair range
)ever # Q soap
)ifebuoy Q soap ;0alaysia,
-ingapore, &ietnam, .angladesh, 3ndia,
(a1istan, 3ndonesia, Australia=
*linic Q dandruff shampoo
)yn/ Q deodorant, mens
)ysoform Q home care ;3taly=
)u/ Q womens soap, shoUniliverr
gel, and lotions ;*aress in the United
-tates=
0atey Q childrens bubble bath
0inerva Q laundry and dishwasher
detergents ;.ra6il=
0ist Q soap ;+gypt=
0otions M Aair care
%eutral Q laundry detergent
%e//us M -alon Aair care
%o/6ema M -1in care range
8mo ;-outh America= Q laundry
detergent
8rigins
,323 Q shampoo and conditioner for
hair salons
,holl M s1in cure
,imotei Q shampoo and conditioner
,ony F 2uy M Aair care range
,'+-emmE M Aair care range
&aseline body lotion, shoUniliverr gel,
deodorant ;&asenol in (ortugal, .ra6il,
3taly, 3ndia, -pain and 0e/ico=
&ibrance Q shampoo and conditioner
&im ;.angladesh, 3ndia, (a1istan=
&itapointe Q *onditioner ;UBD3+=
&inWlia Q soap ;.ra6il=
&iso Q laundry detergent ;&ietnam and
3ndonesia=
9hite .eauty Q s1in lightening cream
9illiams Q mens care
&8$ M Aair careD -tyling
Oede/
Vendium Q toothpaste
Vhonghua Q toothpaste
Vwitsal Q .aby care range

#.?.1 (rincipal 8perating Units<
Africa7 *entral Asia F 0iddle +ast7 *hina7 +ast Asia (acific7 )atin America7
Diversey)ever7 4ood F .everagesM+urope7 3ce *ream F 4ro6en 4oodsM+urope7
Aome F (ersonal *areM+urope7 *entral F +astern +urope7 4oodsM%orth America7
Aome F (ersonal *areM%orth America .
12
*AA(,+' @
-,'A,+2> A%D 0A'B+,3%2
S!" analysis
-trength<
Unilever is one of the world largest *ompany.
*ompany has advanced technology and well s1illed professionals.
(roduct is highly 5ualified.
,he target people are the whole people.
*ompany totally owned, systematic distribution networ1, transparent communication
system.
(articipative management style.
Aea?ness
*ompetitors has strong promotional activities.
*ustomers are offered better alternatives by the competition.
Advertisement flaws.
Devotion of product.
(roducts 5uality looses its values.
(oor (romotion of free sample.
%o Uni5ue identification of product.
Opportunities
(opulation e/panding at a rapid rate.
*onsumers are becoming more 5uality conscious.
*urrent capacity utili6ation F K which can be bather broadened with the increased
in demand.
*ustomer base is increasing with effective mar1eting.
.aby shampoo is another area uniliver can ma1e huge gains.
-hampoo plus conditioner and anti dandruff shampoos are another area where
unilver can earnhvge profits.
(ural areas are a large prospective mar1et where they can introduce.
#hreat
(olitical and economic factors.
(artial government (olicies.
Aigh rate of competition.
)ocal and foreign competition.
".?.1 ,op Uniliver competitors<
*ompany )ocation
(roctor F 2amble *incinnati, 8A
Braft foods %orthfield, 3)
1-
%estle &evey, -wit6erland
".?.# 0ar1et share<
Uniliver ( F 2 Braft %estle
,op segment *D2 foods *onsumer care 4ood 4ood
,op brand Dove ,ide 0ac F cheese Bit1at
*+8 A. .urgmans A.2.)efely '.Deromedi (.)etmathe
-toc1 per share NCC.@ N$@.HC N@.H NCC.?
2rowth 1$.$$K ?.#$K 8.#K 11.#@K
'evenues N"#.?"#m N#8.#bl N@1.1m NC?.bl
'evenues growth -11.@?K 1?K ".@K -1.?@K
3nternational 1] "# 1$] 8C
.usiness segment @ $ $ C
+mployees #@" 11 1C #$@
;-itsce< Aoovers .usiness 3ntelligence 2uide=
".?.@ (rincipal *ompetitors<
Alberto-*ulver *ompany7 Amway *orporation7 Avon (roducts, 3nc.7 .eiersdorf A27
.en F :errys Aomemade, 3nc.7 .estfoods7 *ampbell -oup *ompany7 ,he *loro/
*ompany7 ,he *oca-*ola *ompany7 *olgate-(almolive *ompany7 *onAgra, 3nc.7
Dairy 4armers of America7 2roupe Danone7 Del 0onte 4oods *ompany7 ,he Dial
*orporation7 ,he +stEe )auder *ompanies 3nc.7 ,he 2illette *ompany7 Aormel 4oods
*orporation7 :ohnson F :ohnson7 Braft 4oods, 3nc.7 )8rEal7 )&0A 0oet Aennessy
)ouis &uitton -A7 0ars, 3nc.7 %abisco Aoldings *orp.7 %estlE -.A.7 ,he (illsbury
*ompany7 ,he (rocter F 2amble *ompany7 'ec1itt F *olman plc7 'evlon, 3nc.7 -ara
)ee *orporation7 -.*. :ohnson F -on, 3nc.7 -hiseido *ompany, )imited7 Unigate ()*.
".1 Advertising
A free6er in \ueens, %> filled with -trauss ice cream from 3srael with the Aeartbrand
Unilever has produced many advertising campaigns, including<
)yn/DA/e clic1 advert with %ic1 )achey ;U- only= and .en Afflec1 ;%on-U- only=
(2 ,ips 0on1ey and Al
Bnorr *hic1en ,onight, [3 feel li1e chic1en tonight
Bnorr *hinese -oup, [:ust add one egg^
1.
4lora )ondon 0arathon
Bnorr global brand
Dove *ampaign for 'eal .eauty, including +volution
*alve (inda1aas ;peanut butter= in the %etherlands
*omfort (ure recommended by mothercare
*lear Anti-Dandruff shampoo and conditioner with the entertainer 'ain
*lear Anti-Dandruff shampoo and conditioner with the entertainer %icole
-cher6inger
*lear -oft and -hiny shampoo and conditioner with the actress -andra Dewi
&.11.1 Outloo? and ris?s
Outloo?
0ar1et conditions for its business were challenging in #1 and Uniliver do not
anticipate this changing significantly in #11. +conomic pressures are e/pected to
continue to weigh heavily on consumer spending, particularly in developed mar1ets
where the combined impact of austerity measures and high unemployment is li1ely to
constrain disposable incomes. +merging mar1et growth should continue to be robust,
although even here Uniliver e/pect to see a modest slowdown. ,he most difficult
environment is li1ely to be in 9estern +urope, where higher ta/es, lower public
e/penditure and potentially rising interest rates mean that, for the short term at least,
growth will be limited. 3n these conditions, consumer confidence is not e/pected to rise
significantly in the year ahead and the search for value by the consumer will continue
unabated. A further source of volatility in the year ahead is the return of inflationary
pressure, particularly in respect of 1ey commodity costs. Uniliver anticipate significant
commodity cost inflation for at least the first half of #11. 3f current trends continue then
this inflationary pressure will e/tend also into the second half and beyond. 3n this
environment Uniliver e/pect prices to rise, albeit at a lower rate than costs as
competitors see1 to protect mar1et positions and offset higher commodity costs with
savings elsewhere.
,he competitive environment for its business is li1ely to remain intense in #11. 3ts 1ey
competitors, both global and local, will be eager to rebuild mar1et share in many of its
mar1ets and categories, and will design their activity plans accordingly. Uniliver e/pect
continued high levels of competitive challenge to its many category leadership
positions. -ome of this will be price-based, as in #1, but Uniliver also e/pect strong
innovation-based competition bac1ed by wide-ranging brand support. 9ith the
improvements Uniliver have been ma1ing to its business Uniliver are well prepared for
these challenges. 4aced with these challenges Uniliver will continue to focus on its
1/
long term strategic priorities of driving volume growth ahead of its mar1ets whilst
providing a steady improvement in underlying operating margin and strong cash flow.
Uniliver are well placed, with an impressive presence in emerging mar1ets, more than
H$K of its business in either category leadership or number two positions, a portfolio of
strong brands, an increasingly effective innovation programme and a dynamic new
performance culture. ,hese give us confidence that Unilever is fit to compete,
whatever the circumstances.
rincipal ris? factors
'is1s and uncertainties could cause actual results to vary from those described in
forward-loo1ing statements made within this document, or could impact on its ability to
meet its targets or be detrimental to its profitability or reputation. ,he ris1s that Uniliver
regard as the most relevant to its business are identified below. Uniliver have also
commented on certain mitigating actions that Uniliver believe help us manage such
ris1s7 however, Uniliver may not be successful in deploying some or all of these
mitigating actions.
&.11.2 Ahere ,niliver +ill +in
.rands and innovation are at the heart of its business model. Uniliver aim to offer a
broad portfolio those appeals to consumers with different needs and budgets. Unilever
brands must also offer product 5uality that is recogni6ed as superior by its consumers
and supported by e/cellent mar1eting. 0eanwhile, its innovation programme is
focused on being [bigger, better, faster. ,his means leveraging technology to create
bigger, better innovation platforms that are then rolled out faster to multiple mar1ets.
3ts ambition is to win share and grow volume profitably across its categories and
countries M and Uniliver believe it has the tools in place to do so. Uniliver have a
portfolio fit for growth, with strong brands and many leading category positions.
2eographically, its outstanding presence in the emerging mar1ets leaves us well
positioned to win where much of the future growth will be. >et, Uniliver is also
determined to grow in the developed world, which represents around half of its
business and where the bul1 of the worlds wealth will remain for many years to come.
,he biggest opportunity for Unilever and its customers lies in growing the si6e of its
categories, which Uniliver will strive to achieve through innovation and mar1et
development. Uniliver will further enhance and broaden its relationship with customers
M wor1ing together on areas of mutual benefit such as consumer research, shopper
behavior and merchandising. ,o sustain winning customer relationships and to enable
19
growth, Uniliver will also need to be consistently brilliant at customer service and in-
store e/ecution. Uniliver will aim to reinforce its continuous improvement philosophy by
further developing a customer and consumer-led, agile value chain. 3ts focus will be in
three areas. Uniliver will prioritise speed and fle/ibility in the supply chain to deliver
growth. -econdly Uniliver will
)everage its global networ1 capabilities and scale more aggressively. 4inally Uniliver
will wor1 to get a better return on its advertising and promotional e/penditure M one of
its most significant areas of cost. 3t is vital that Uniliver have the talent and organi6ation
in place to match its growth ambition. Across the business, Uniliver are therefore
loo1ing ahead at what it needs to achieve, and aim to e5uip itself with the necessary
people, s1ills and capabilities to get there. Uniliver also 1now that engagement and a
culture based on living its values are essential for 1eeping the best people. Uniliver
believe its operating framewor1 allows us to balance scale and global e/pertise to
develop successful products with the local consumer intimacy needed to mar1et and
sell them.
&.11.3 .o+ ,niliver +ill +in
Strategy
I9ith confidence in its ability to grow Uniliver launched a renewed, bold vision for the
company M to double its si6e while improving its environmental footprint.
9ith its portfolio of brands, presence in emerging mar1ets and long-standing
commitment to shared value creation, Uniliver believe yits company is well placed to
deliver on this ambition.J
Strategies are:
a. 9inning with brands and innovation
b. 2rowth priorities
c. 9inning in the mar1et place
d. 9inning through continuous improvement
e. 9inning with people
a. Ainning +ith brands and innovation
-uperior products
3ts aim is to give people a great e/perience when they use its brands M better than the
competition. Uniliver are investing in improving product 5uality and ma1ing stronger
functional claims. Uniliver are also focusing on design, pac1aging, mar1eting and
advertising, in order to get its brand benefits across more persuasively. ,a1e Bnorr
40
-toc1pot bouillon. Using a uni5ue Gelly technology that delivers homemade taste and
5uality, this product is helping people create a special meal at home instead of eating
out.
9idespread appeal
(roduct superiority is essential, but Uniliver also need to offer a broad range of choice
which meets differing consumer needs and price points wherever Uniliver operate.
.rands and innovation are at the heart of everything Uniliver do. Uniliver develop its
products to 1eep pace with changes in consumer lifestyles and to appeal to people at
all income levels.
-uccess means getting bigger and better innovations into the mar1et faster, supported
by the very best mar1eting. 3n the UB, understanding that consumers are loo1ing for
value without compromising on 5uality, and recogni6ing the importance of fragrance in
communicating a products benefits, Uniliver developed a range of li5uid concentrates
for -urf detergent with added essential oils, resulting in #?K growth.
3n 'ussia, despite a severe economic recession, Uniliver achieved growth of more
than #K in its tea sales by offering choice across multiple price points with three
distinctive brands M)ipton, .roo1e .ond and .eseda.
And in 3ndia, where water 5uality remains a maGor concern, the brea1through
technology of (ure3t, its in-home purification system, is providing safe and affordable
drin1ing water with complete protection from the water-borne germs that cause
diseases. 3n #?, (ureit provided safe drin1ing water for more than 1$ million people
in @ million households in 3ndia.
b. 5ro+th priorities
.igger, better, faster innovations
-uccessful innovation is based on deep consumer insight. ,he balance Uniliver see1
to achieve is to marry global strength in 'FD with local 1nowledge of peoples habits,
tastes and behaviors. ,o grow at the rate Uniliver want to, its focus investment on
products that can wor1 globally rather than on launches in Gust a few countries. Uniliver
have also doubled the number of big proGects Uniliver are wor1ing on. Uniliver are
already seeing results. Uniliver have rolled out A/e Dar1 ,emptation deodorant to $C
mar1ets, )ipton (yramid fruit tea bags to @8 mar1ets and *lear shampoo to @$
mar1ets.
4or a product to wor1 at a global level, it needs to address unmet needs with superior
technology and a clear consumer concept. 'FD must deliver brea1through science in
41
areas that really matter to consumers, with products that do what they claim. -uccess
on this scale re5uires strict priorities and big ideas. 9ithin 'FD, part of prioriti6ing is
getting the balance right between the short and the long term. 9ith an eye to its future
growth plans, during #? Uniliver developed a more robust process for fuelling its
longer-term innovation pipeline. *alled the 2enesis (rogramme, it spans its foods and
home and personal care categories and focuses on the brea1through ideas that
Uniliver e/pect will deliver the biggest wins. 4rom #11 Uniliver should begin to see
some of these innovations in its products. Uniliver continued to invest substantially in
'FD, despite the economic environment. 3n #?, Uniliver opened a new 'FD centre
in -hanghai. )ocated in a country which is increasingly recogni6ed as a world leader in
developing high-end innovations, the new centre further underscores its commitment
to driving growth through 'FD.
6igger> better> faster: 3n laying the foundations for growth, Uniliver are focusing on
rolling out more innovations faster and to more mar1ets.
'ead !ar?et develop!ent
,he worlds population, currently C.8 billion, is set to grow to H.H billion by ##. ,oday,
$.? billion live in developing and emerging mar1ets M countries such as .ra6il, 3ndia
and 3ndonesia where Unilever has deep roots and a wide presence. Uniliver already
reach many more consumers than its competitors in these mar1ets. 0ar1et
development is about developing and growing categories.

#here are three ways of doing this<
R more users ;increasing mar1et penetration=7
R more usage ;increasing consumption=7
R more benefits ;getting consumers to buy higher value products=.
4or e/ample, ,a1e /@e.
3n recogni6ing that fragrance is a maGor reason why people choose one brand over
another, new fragrance launches are helping to increase mar1et penetration, introduce
new users to the brand and ensure its product mi/ remains up to date. ,his, in turn,
has helped A/e become the worlds leading male deodorant and shower gel.
c. Ainning in the !ar?et place
3ts biggest growth opportunity lies in e/panding the mar1ets in which Uniliver compete.
3n developing and emerging countries there is huge potential for future growth as more
and more people start consuming personal and household products for the first time.
40
,o reali6e this potential, it will need to partner with its customers in both the developed
and developing mar1ets.
9in with winning partner
Unilever was the e/clusive partner of 9almart -oundchec1. ,he campaign featured
music talent such as :ennifer Audson and 0artina 0c.ride. 3ts brands, including Dove
and -uave, were able to reach their target consumers in a new, innovative way. A
video of a latest hit, along with e/clusive interviews with the artist, was shown in-store
in the electronics department, and was available as a download from the 9almart
website. 3n-store merchandising and additional online programming further amplified
the campaign. %ot only did the programme result in a big increase in sales for its
products, but 9almart saw a rise in music sales of the featured artists. -oundchec1 is
a multi-year e/clusive partnership, so Uniliverre loo1ing for another good year in #11.
9in with winning customers
,here is a growing trend in the retail industry towards consolidation, with fewer but
larger retailers. ,han1s to its global scale and local 1nowledge, Unilever is ideally
placed to help those customers achieve their own growth ambitions. 3n #8 Uniliver
opened in %ew :ersey the first of a networ1 of customer insight and innovation center
to wor1 directly with retailers. ,he center covers everything from merchandising and
store layout, to displays and pac1aging. ,hrough the center, Uniliver wor1 with
customers to design and test concepts without going to the e/pense of real in-store
pilots. -ince opening, the center has generated significant growth opportunities. 3ts
)ondon center has since opened and Uniliver plan to open three
more in #1 in(aris, -hanghai and -_o (aulo.
.e an e/ecution powerhouse
0ar1et development and great relationships with customers will only be points of
advantage if Uniliver e/ecute with e/cellence. ,his is not a complicated concept. 3t is
about the everyday disciplines of ensuring that Uniliver are delivering to its customers
the products they want, in the 5uantities they ordered at the time they are needed. ,his
involves having a customer-focused approach across its brand building, customer
development and supply chain teams. During #? Uniliver focused much more
closely on [sales fundamentals, a set of company-wide measures covering every
aspect of its in-store presence. Uniliver have performed well against these measures,
which have been one of the many drivers in improving customer service in most of its
1ey countries.
41
,he detail of what wor1s in one type of store wont wor1 for all, however. A superstore
in the U- is very different from a local retailer in a small town in *hina, both in terms of
the products it carries and the way those products are sold. .ut for
each type of store, by channel and geography, there is a perfect concept M namely,
what the shop would loo1 li1e if it were the perfect sales vehicle for its categories and
brands. Uniliver developed the perfect store concept in the AA* region ;Asia, Africa
and *entral F +astern +urope= in early #?. Uniliver began implementing it in modern
trade outlets across the region, focusing on the regions largest fits categories M s1in
cleansing, hair, fabric cleaning and tea.
4ast and fle/ible M and increasingly competitive
9inning in the mar1et is about being fast and agile to meet the changing needs of
todays customers and consumers. 8f course, being competitive on cost is vital, but
rather than having a purely cost-based agenda for its supply chain, Uniliver have
widened its focus to ensure that Uniliver are more responsive to the constantly
changing needs of its customers.
Delivering significant value
During #? Uniliver launched a single strategy for the supply chain M One ,nilever
Supply (hain M putting customers and consumer sat the heart of everything Uniliver
do. ,he principal obGectives for its supply chain are to deliver top-5uality products with
world-class service at a competitive cost.
3ts a big ambition that<
R supports top-line growth through speeding up the roll-out of global launches7
R ensures its products are constantly on the shelf7
R increases profits by simplifying its structure and reducing waste7
R improves cash flow by reducing stoc1 and providing better payment terms.
,he rewards are significant. 3n #?, as part of this, its 8ne Unilever -upply *hain
team contributed significantly to delivering !1." billion in savings.
,he advantages of global scale
Unilever has a global reach wider than many of its competitors. ,his gives us a
tremendous opportunity for improving efficiencies by leveraging its scale.
Uniliver are doing this in three critical areas<
R procurement7
R manufacturing7
R bac1 office services.
44
-ingle procurement strategy having a single, global procurement strategy means that
where bigger is better, Uniliver are getting the benefits. 4or many items, buying
globally gives us economies of scale. 4or e/ample, significantly reducing the number
of tomato ingredients that are used in its products from @ to Gust @? enhanced the
consistency of product 5uality and, at the same time, substantially reduced costs.
d. Ainning through continuous i!prove!ent
Delivering sustained, profitable growth re5uires a philosophy of continuous
improvement. ,his means being fast and fle/ible in the supply chain while 1eeping
costs competitive. 3t will also re5uire us to ma1e the most of its scale and aim for the
best return on every euro Uniliver spend on advertising and promotion.
I!prove!ent of technology
3ntroduced at its UB plant in )eeds, the new technology allows us to produce a
common, unperformed base for its aerosols, adding the fragrance only at the very last
stage. ,his gives us the fle/ibility to ma1e many more variants without incurring higher
costs. 3ts good for us because it has contributed greatly to lower stoc1 levels7 around
HK of its stoc1-1eeping units have seen their minimum order 5uantity halved7 its
product change-over time has reduced from " minutes to Gust fits7 and Uniliver
produce less waste. .ut more importantly it benefits customers, who have improved
shelf stoc1 levels and reduced lead times, and consumers, who can get a wider choice
of fragrance at no e/tra cost.

3nternal services under one roof
+ven with activities such as 3,, travel, office services, accounts payable and accounts
receivable, there are big opportunities to leverage global scale. -o in #? Uniliver set
up a new business unit, Unilever +nterprise -upport ;U+-=. 3t will be operational in
April #1 and will bring together many of these activities as a 1ey part of its initiatives
to drive down costs.

,he best return on brand and customer investment
Unilever is the second biggest advertiser in the world. 3mproving the return on its brand
and customer support is one of the biggest things Uniliver can do to achieve growth.
,here is a tendency to thin1 that analy6ing this 1ind of return on investment is some
form of mystery. Uniliver believe it is simply about being rigorous in applying its best
evaluation and development techni5ues.
42
+veryday disciplines done brilliantly
Uniliver decide on the best ways of investing its spend.
Uniliver do this on three levels<
R allocating investment across geographies, categories and brands7
R allocating investment across particular proGects and product launches7
R allocating spend locally across mar1eting channels and promotions.
.efore Uniliver invest, it use a number of tools to answer the 5uestions< how much
should Uniliver be investing7 and how can Uniliver ma/imi6e its effectiveness` During
and after the investment, Uniliver use other tools to loo1 at whether it is wor1ing, how it
could wor1 better and what to do ne/t. ,his is not about replacing creativity with
analytics and measurement7 it is about doing both brilliantly. ,hrough focusing on
these basics, Uniliver are already seeing great improvements in return on investment
in a number of areas. 4or e/ample, its U- foods business has increased returns by
over "$K in si/ years, helped by its use of econometric modeling.
4uture trends
)oo1ing ahead, there are two big themes that will dominate its media planning< how
Uniliver ma1e best use of digital media and, given the rise in prominence of global
retailers, how Uniliver can ma1e the most of in-store investments.
4rom months to wee1s at no e/tra cost
,hrough a partnership with maGor suppliers, U- personal care product labeling is now
1eeping pace with brand design and variant changes. (rocess optimi6ations have
created shorter print runs, 5uic1er turnarounds and less waste, at the same label cost.
9ith such an opportunity for ma1ing efficiencies, Uniliver set up Ultra)ogisti1 as a
separate transport management division within Unilevers supply chain. 3t is managed
from hubs in (oland and -wit6erland, by a team of 1 specialist transport managers.
4or each transport route Uniliver reviewed the arrangements and determined which of
them should be moved into Ultra)ogisti1, and then tendered each route to get the best
deal. Uniliver are already ma1ing savings of at least 1$K, as well as cutting down
carbon emissions by moving transport off the road. Ultimately, its aim is to bring over
$K of +uropean transport management within Ultra)ogisti1, and to roll out the model
to other parts of Unilever.
d. Ainning +ith people
4-
Doubling in si6e is a challenging prospect. 4rom a talent and organi6ational
perspective, it cannot be business as usual. Uniliver will have to have in place the
people and structures necessary to manage on a larger scale.
Developing a team fit for growth
3ts operating framewor1 see1s to combine global scale, power and strength with local
consumer intimacy. ,a1ing advantage of this in all its chosen mar1ets and categories M
as Uniliver are already doing in many areas M will be critical in ensuring its success. ,o
do this Uniliver need to have a team capable of delivering, and to offer the career
potential and wor1ing environment that ma1e Unilever the best place to be.

-ome of its maGor mar1ets are doubling in si6e every five to si/ years, while its own
growth ambitions mean that having enough people with the right s1ills is a challenge in
itself. 2etting the right number and 5uality of people in the pipeline for the future does
not happen by accident. 3t re5uires an understanding of what is already in the business
that can be built upon, and what will be needed in the future as mar1ets develop. 3n
#? Uniliver launched its [talent and organi6ation readiness programme, which will do
Gust what it says< ma1e sure its organi6ation and its talent are ready for growth. Uniliver
are assessing those areas of the business most crucial to its strategy to define their
specific goals, and whether Uniliver have the structure and the talent to deliver them.
9here Uniliver identify gaps, Uniliver focus on developing targeted solutions.
,his may involve one or more of the following<
R changing organi6ational structures7
R revising its recruitment strategy and approach7
R reviewing its retention schemes7
R improving core processes such as decision ma1ing7
R focusing on culture and employee engagement7
R using development and training programmes to build capability levels.
-o far Uniliver have carried out fits pilot programmes in *hina, 3ndonesia and
2ermany, and in its s1in category. ,hese have given us important new insights.
.u!an 1esource plannig
4illing the s1ills gap by getting its people up to speed as 5uic1ly as possible became
essential. 9ithin three months Uniliver developed a training programme with its A'
providers, Accenture, and trained over "$ sales staff in seven cities across *hina.
,he average pass rate was over ?$K, and Uniliver are already seeing results with an
4.
overall increase of #.#?K in net invoice value delivered by those who did the training.
Uniliver have now pic1ed some people to become trainers themselves so the
programme can become self-sustaining. Uniliver are also loo1ing at rolling it out to
other emerging mar1ets where its sales people need to develop new s1ills 5uic1ly.
(ase study
A diverse team for the widest range of consumers
An important part of developing the Unilever wor1force of the future is diversity.
Uniliver need a diverse team M across gender, nationality, race, creed, culture M to be
able to connect with the widest range of consumers and to ta1e its performance to a
higher level. Uniliver are already ma1ing progress. 3ts .oard of Directors comprises si/
nationalities and the nine members of the Unilever +/ecutive team come from si/
different countries. ,his combination delivers a wealth of e/perience in emerging
mar1ets which is critical to its future business success. 3n terms of gender, the number
of women in senior positions has increased. 4or e/ample, the proportion of women
now at vice president level has gone up by around one third since #H.
A place to succeed
As important as development programmes and organi6ational structures is having a
performance culture that rewards people and teams who deliver. 8nly by inspiring its
people and motivating them to succeed will Uniliver deliver its growth ambition. (eople,
integrity and values have always been central to Unilever, and will continue to be so.
.ut within that conte/t Uniliver are determined to become faster, more focused and
more competitive. 3n #? Uniliver updated some of its performance management
tools, for e/ample introducing a global performance and talent management system.
0easuring cultural change is an ine/act science, but Uniliver put great effort into
engaging with employees to find out whether they understand the companys vision
and their role within it, what their views are about Unilever, and what they believe
needs to change for us to achieve its ambitions. 3n #? Uniliver began an employee
engagement programme that will ensure employees are involved in Unilevers vision
and plans for the future. As part of Unilevers partnership with the 9orld 4ood
(rogramme ;94(=, 1# student interns are recruited each year to help run 94(s
school feeding programme in developing countries. 3t isnt Gust the local children who
benefit, or the students, who learn valuable life s1ills. 9hile there is no re5uirement for
interns to tal1 about Unilever, it is inevitable that they will when telling their friends
4/
about their e/periences M and most of the time it is positive. 3n todays world of
blogging and te/ing, there is no better way to spread the word.
&.11.& ositioning for the 21st (entury
As it entered the 1??s, Unilever had virtually completed reorgani6ing its +uropean
business to better compete within the evolving single mar1et in that region. 3n 1??1 the
company further refined its operations by selling the last of its pac1aging businesses
and by ma1ing provisions for the eventual sales of the maGority of its agribusinesses.
Unilevers fle/ible management structure and diverse product range were integral to its
survival in the rapidly changing international mar1et. 3n a 1??# #arvar$ Business
Revie% article, *hairman and *+8 4loris A. 0alGers e/plained Unilevers management
structure< [,he very nature of its products re5uired pro/imity to local mar1ets7
economies of scale in certain functions Gustify a number of head-office departments7
and the need to benefit from everybodys creativity and e/perience ma1es a
sophisticated means of transferring information across its organi6ation highly
desirable. All of these factors led to its present structure< a matri/ of individual
managers around the world who nonetheless share a common vision and
understanding of corporate strategy.
Despite poor performances by some of its subsidiaries and recessions in +urope and
%orth America, Unilevers broad product range led to overall profit increases in both
1?? and 1??1. 3n 1?? Unilever made substantial inroads into the newly opened
mar1ets created by the unification of 2ermany. ,he company began producing its
'ama margarine at a former +ast 2erman state plant in *hermnit6, established a tas1
force to select sites for #@ %ordsee fish stores, and began distributing ice cream and
fro6en novelties to retailers in eastern 2ermany.
3n 1??1 Unilever continued to battle with rival (rocter F 2amble over the newly opened
mar1ets of the former -oviet Union. Unilever purchased an 8 percent sta1e in the
(olish detergent firm (ollena .ydgosc6 for N# million, changing the name to )ever
(ols1a, the first laundry detergent manufacturer to be privati6ed in (oland. ,he
company earmar1ed appro/imately N#" million for product line e/pansions, including a
fabric conditioner and household cleaning products. Also in 1??1 0ichael (erry was
named the U.B. cochairman of Unilever.
(rofits in Unilevers personal products division were down 11 percent in 1??1, due to
sluggish mar1ets in the United -tates and only moderate growth in +uropean mar1ets.
Unilevers newly purchased +li6abeth Arden and *alvin Blein, however, posted strong
49
growth, supported by strong retailer relationships and N#" million in advertising
e/penditures. -uch growth occurred despite an overall drop in department store
cosmetic sales of nine percent from 1?8H to 1??#. 3n 1??#, though, +li6abeth Arden
profits began slipping, prompting the resignation of :oseph 4. 'onchetti, Ardens *+8
since 1?H8. Unilever underwent further restructuring of its personal products division,
creating a prestigious subdivision geared toward introducing *alvin Blein and +li6abeth
Arden into overseas mar1ets.
Unilevers fastest growing mar1et in the early 1??s was in Asia. Although Unilever
had been operating in Asia since its earliest days, the company was Gust beginning to
tap into the regions newly ac5uired wealth. Asian sales of personal products,
detergent, and pac1aged foods were growing more than twice as fast as sales in the
United -tates and +urope. .y 1??# Unilever was composed of some $ companies
conducting business in H$ different countries.
Unilever continued to ma1e ac5uisitions in the mid-1??s, completing more than 1
purchases between 1??# and 1??C, more than half of which were in foods. 3n 1??@
Unilever gained the number one position in the U.-. ice cream mar1et through the
completion of two ac5uisitions. ,he company paid N1$$ million to +mpire of *arolina
3nc. for the Blondi1e and (opsicle brands, and about N#1$ million for the ice cream
business of (hilip 0orriss Braft 2eneral 4oods unit, which included the -ealtest and
.reyers brands. ,he ac5uired brands were merged with the 2ood Aumor line within
2ood Aumor .reyers 3ce *ream *ompany, a subsidiary based in 2reen .ay,
9isconsin. Also in 1??@ Unilever launched a restructuring, ta1ing a U-NH$ million
charge against earnings to close or consolidate C plants and lay off H,$ employees.
8ne the largest ac5uisitions of this period was the 1??C ta1eover of *hicago-based
Aelene *urtis 3ndustries 3nc., manufacturer and mar1eter of personal care products,
primarily shampoo and conditioners, hand and body lotions, and deodorants and
antiperspirants. (urchased for about NHH million, Aelene *urtiss portfolio included
such brands as -uave, 4inesse, and -alon -electives. Another significant 1??C
ac5uisition was that of %orthbroo1, 3llinois-based Diversey *orporation, a ma1er of
institutional chemical cleansers and saniti6ers, and Unilevers first foray into the
industrial cleaning sector.
Unilever and (rocter F 2amble ;( F 2= began battling again in 1??", this time for
supremacy in the +uropean detergent sector. Unilever aggressively went after ( F 2s
mar1et-leading brand, Ariel, with a new soap mar1eted under the names (ersil (ower,
20
8mo (ower, and -1ip (ower. Unilever spent N1H$ million developing the product and
another N#?# million mar1eting it during 1??". ,he product included a manganese
comple/ molecule that Unilever claimed cleaned clothes better at lower temperatures
than rival products. ( F 2 conducted tests on (ersil (ower, however, which indicated
that the detergent resulted in abnormal wear after as few as 1$ washings. 9hen ( F 2
publici6ed its findings, Unilever sued the company for slander. .ut the suit was 5uic1ly
withdrawn after Unilever admitted that the detergent did indeed contain a flawMa flaw
that had not been uncovered in the prelaunch testingMand could damage clothes when
e/posed to a particular combination of dyes. Unilever reformulated the product, but not
before it had turned into a public relations nightmare. 3n the end, the (ower formula
was abandoned entirely and Unilever, therefore, too1 a a$H million write-off in its 1??"
accounts.
According to Andrew )oren6, writing in the :uly 1??C issue of Manage&ent 'o$a(, the
(ersil (ower debacle served as a catalyst for fundamental management
reorgani6ation. 8n -eptember 1, 1??C, the three-person special committee that had
run Unilever since its formation in 1?#? was replaced by a seven-member e/ecutive
committee composed of the chairmen of Unilever %.&. and Unilever ()* and five high-
ran1ing Unilever e/ecutives. At the same time the company did away with a comple/
two-tiered management structure that included both worldwide product management
groups and regional management groups. 3n their place was created a single team of
1" business presidents, with each president responsible for a portion of the +uropean
operations ;e.g., the food and beverage +urope group=, a portion of the %orth
American operations ;e.g., the home and personal care %orth America group=, or a
region of the rest of the world ;Africa, )atin America, etc.=. As was typical of the time,
this streamlining was aimed at improving decision-ma1ing by pushing authority down
to a lower level. Along with this maGor reorgani6ation came a change in the
chairmanships, with %iall 4it62erald replacing 0ichael (erry as U.B. cochairman7 an
3rishman, 4it62erald became the first non-+nglish, non-Dutch to serve as cochairman,
and he also reached the post despite having been in charge of Unilevers detergent
operations during the (ersil (ower debacle. *ontinuing on the Dutch side was 0orris
,aba1sblat, who had replaced 0alGers as Dutch cochairman in 1??".
3n the late 1??s 4it62erald and ,aba1sblat oversaw a comprehensive review of
Unilevers wide-ranging businesses in an effort to focus on the strongest core areas<
ice cream, margarines, tea-based beverages, detergents, personal soaps, s1in care
21
products, and prestige fragrances. -everal other areas were identified as [developing
core areas< fro6en foods, culinary products ;sauces and side dishes=, hair care
products, oral care products, deodorants, household care products, and industrial
cleaning products. .usinesses outside of these areas were candidates for disposal. 3n
1??C the company sold its mass-mar1et cosmetics business, its few remaining animal
feed operations, some oil-processing units, and a U.B. franchiser of *aterpillar 3nc.
heavy e5uipment. Unilever completed its largest disposal the following year, selling its
specialty chemicals business to 3mperial *hemical 3ndustries ()* for about U-N8
billion. ,he sale resulted in a net profit of U-N".$$ billion, part of which cleared
Unilevers U-N#.H8 billion in debt7 the proceeds also contributed to a war chest that
e/panded to U-N?.C billion. ,he company made one large purchase in 1??H, the
U-N?@ million ac5uisition of Bibon -.A. 3ndLstrias Alimenticia, the number one ice
cream ma1er in .ra6il. 3n 1??8 Unilever sold its (lant .reeding 3nternational
*ambridge )imited unit to 0onsanto for about U-N$#$ million. Unilever also sold off its
%ordsee fast-food fish chain in the late 1??s.
3n early 1??? Unilever spent a large portion of its war chest on a special dividend to
shareholders of a$ billion ;U-N8.1 billion=. 3n :uly of that year ,aba1sblat retired and
was replaced as Dutch cochairman by Antony .urgmans. ,wo months later Unilever
announced that it would eliminate about 1,# of its brands to focus on around "
regionally or globally powerful brandsMa group that accounted for almost ? percent of
1??8 revenue. ,his sweeping overhaul of the product portfolio was aimed at increasing
annual growth rates from fits percent to si/ to eight percent and at eventually reaping
annual savings of a1 billion.
Unilever ended the #th century with a strategic plan that included a focus on top
brands within core mar1et sectors and an emphasis on growth within developing
countries. Although it was facing considerable competitive pressures in various
mar1ets around the worldMparticularly from (rocter F 2ambleMUnilever was clearly no
longer the ris1-averse, staid organi6ation of the past. ,he whirlwind events of the late
1??s seemed destined to position the company as one of the most formidable global
consumer products companies of the #1st century.
#$apter %
SOM3 roducts S#:
)UO<
20
Mar?et seg!entation : ,he company claims that )u/ is the highest selling beauty
soap in .angladesh. 0oreover some survey reports also reveal the same result.
,hough )u/ is the highest selling beauty soap in .angladesh, it does not go for
traditional mass mar1eting moreover as a beauty soap )u/ does not even segment its
mar1et according to gender.
Unilever .angladesh )td segments their mar1et according to geographical areas. ,he
population of the country is segmented into three parts which are Urban, sub Urban
and rural area consumers.
,he company further differentiate the geographical segments according to socio
+conomic cluster ;-+*= i.e. education and 3ncome.
#arget Mar?et : Urban and sub Urban middle class and rural people are the largest
part of .angladesh population. A research carried out by Unilever .angladesh reveals
that Urban rich people are more li1ely to buy imported and e/pensive products.
0oreover rural poor people tend to by cheap products even without evaluating its
5uality. Aowever Urban and sub Urban upper middle and middle class people tend to
buy affordable and 5uality products.
)u/ is not a highly e/pensive but an affordable products. ,hat is why the company
targets Urban and sub Urban upper middle and middle class people who are the
second highest of segment of the country.

ositioning : Unilever .angladesh )td obtained a good position in the buyers mind
through better product attributes, price and 5uality offering the product in a different
way than the competitors do. ,he company offers improved 5uality of products in the
3ndustry at an affordable price with high branding, which ultimately helps to position the
product in the buyers mind as the best 5uality soap.
,he mar1et share of the company in the beauty soap industry is some where around
"@K. -ince in the beauty soap industry all products are of same price Unilever cannot
provide its consumers with better price but it is in a great position in reference with its
pac1aging fragrances and product designing.
)u/s position in the consumers mind on two dimensions price and it states that though
in comparison to its competitors the pricing of )u/ is same but consumers rate it as the
product which gives them the highest 5uality. ,his positioning created a strong
customers loyalty for )u/ for which it the mar1et leader in the 3ndustry.
(lose)up
21
Mar?et seg!entation :
0ar1et segmentation is broadly classified into two categories.
-pecific need based segment
;a= +nhancement needs < ,his cater the need for having fresh breath and whiteness
of teeth.
;b= Aygienic needs < ,his caters to the over all oral care needs.
Demographic segmentation
,he segmentation was specially to target youth between 18-#$ years, however it did
not alienate the people who were above the age of @ years ;especially the ones who
feel young at heart=
,his product was also targeted to those groups of audiences who li1ed e/perimenting
with different products.
#arget !ar?et :
*lose up is targeted at young people. ,he target mar1et being I0ulti .rand
AouseholdsJ 9here the young does not use what their parents use. ,his particular
targeting was significant when close up was launched because *olgate positioning
was a sort of oral care and hygiene benefits. Also, *olgate was going for a broad
mar1et constituting of all the age groups.

ositioning : A large part of close ups success is because of its brand positioning.
*lose up balls under the third pillar of tooth paste I4reshness -egmentJ particularly
dealing the need for white teeth and freshness. Also close up has positioned itself for
+motional benefit of closeness and rational benefit of freshness.
,he name Iclose upJ was propounded with a motive of building social confidence to
get closer to others. close up was positioned as a youth oral care brand from the very
beginning. 3n #", the brand was re-launched with a publicity blit6 that communicated
virtues of a [&itamin fluoride system.
(resent in the product a powerful mi/ of vitamins, fluoride. mouth wash and micro-
whiteners, for fresher breath and stronger, whiter teeth.
Seg!entation of =aseline
0ar1et segmentation is the process of disaggregating the total mar1et for a given
product into the number of sub-mar1ets. ,he heterogeneous mar1et is bro1en up in the
process into a number of relatively homogeneous units. Different ways of mar1et
segmentation are as follows.
1. 2eographic segmentation
24
#. Demographic segmentation
@. (sychographic segmentation
". .uyer .ehavior segmentation
$. &olume segmentation
C. 3t can also be done by mi/ing any of the following
#arget !ar?et : &aseline targets women in their mid-#-s on wards for the brand,J
combination of mass and prestige. ,he focus will be to tap the segment in between the
mass and the premium end of the segment. ,hey also focus on family uses of
&aseline.
ositioning : (oisoning Iis the act of communicating companys offer so that it
occupies a distinct and valued place in the customers mind so as to create an
enduring competitive advantageJ. &aseline is positioned on the healthcare platform
with a body lotion and a petroleum Gelly cream. ,he *ustomers see the tangible
attributes li1e performance level, price, pac1aging, products components before buying
the product. &aseline being the winter cream posses many uses such as pomade for
the hair, it is also used by males as a personal lubricant. &aseline prices are less as
compared to ponds, )a1me of %ivea. ,he brands range was e/pended to ,alcum
(owder but was later with drawn. A seasonal brand, Unli1e ponds, &aseline also has
boot care cream, which has remained a niche product with limited demand during
winter.
,he Uni5ue selling proportion of &aseline is its 1K. white petroleum.
-U%-3)B
Seg!ent
(ersonal Aair *are -hampoo available in multiple variants
#arget 5roup
2irls in the age group of #s
ositioning
,he -unsil1 hair care range provides a complete hair care solution and functions as a
@-step combination of cleansing, nourishing and manageability
M/103#I25 MIB O- ,2I'3=31:
&'( )roducts
Unilever owns more than " brands as a result of ac5uisitions, however Uniliver, the
company focuses on what are called the Ibillion-dollar brandsJ, 1@ brands, each of
which achieve annual sales in e/cess of !1 billion. Unilevers top #$ brands account
22
for more than HK of sales. ,he brands fall almost entirely into two categories< 4ood
and .everages, and Aome and (ersonal *are.
Unilever .angladesh .rands
)u/, )ifebuoy, Dove,
4air F )ovely, (onds, &aseline
*lose Up, (epsodent,
-unsil1, *lear,
&im, -urf +/cel, 9heel,
'e/ona, A/e, F ,aa6a

3.2 rice :
Unilever claims to practice value-based pricing in which the customers. (erception of
the products price provides a starting point for developing the mar1eting mi/ of the
product. ,he research department determines this price usually by using focus groups.
,he (rimary importance of this value-based pricing is that the products demand will be
much higher if its price is in line with the customers perception of its value, 8ne crucial
concern for value-based pricing is strict management of cost in order to be able to
ma1e a profit at the value-based price. After the initial (rice is determined Unilever
then uses target costing in order to achieve the re5uired profits.
So!e roducts rice
6rand 2a!e : %ove
(roduct %ame 9eight (rice
Dove -hampoo 1ml 11$.
#ml ##.
"ml @?.
Hml C8.
Dove )otion #@$.
Dove -oap ? ml H$.
1@$ ml ?8.
6rand 2a!e : 'u@

2-
(roduct %ame 9eight (rice
)u/ -oap 8 ml #.
1 ml #8.
1$ ml @8.
6rand 2a!e : Sunsil?
(roduct %ame 9eight (rice ,1.
-unsil1 -hampoo 1ml H$.
#ml 1"$.
"ml #H.
0ini pac1 1.
0ini pac1 #.
6rand 2a!e : -air 4 'ovely
(roduct %ame 9eight (rice ,1.
0ulti vitamin #$ gm $.
$ gm ?.
Auirbadhi1 #$ gm $#.
$ gm ?$.
4air F Aandsome #$ gm @$.
$ gm 8.
3.3lace :
Unilever 4ollow common system of distribution. ,hat means company
wholesaler retailer consumer
3t basically covers # tiers cities and rural area.
3t has made his strategy li1e that in every small or big shop customer will be able to
find out the product.
After the changed image of Unilever it also trying to ma1e the availability of the soap in
above middle calls society.
2.
distribution networ1 directly covers villages and cities million consumers.
,he vision of the company to reach every village of the country.
@."(romotion<
.uild top of the line consumers awareness.
*reating a personality of the braved.
,o increase the usage.
3mparts a feeling of freshnes
+ffectively communicate brand promise.
(romotional strategy
3nnovative *ampaigns such as IAairpyJ. and life cant wait were launched to attract
women to the brand.
-ponsored short films that were broudcast during popular television shous.
0edia platforms used.
(rint media.
3nternet *ampaign.
3nterned rural campaign.
+nvironment concern ads.
0usic videos.
4ree sample dissertation.
Demo campaigning.
(romotion of the products through mobvies such as I4ashionJ.
+nhancement of product mi/.
%ew product formulations according to changing consumer preferences.
Advertising.
Unilever believes that messages about product delivered by credible sources can be
very persuasive Uniliver more value added to the brand. *onsumers relate to products
itself, they can relate to e/pert.
Actresses as spo1espersons.
*o-mar1eting.
-ome of the these films were made e/clusively for relailers li1e wall-mart and were
telecast in store.
-ponsor for fashion shous.
2ang of girls site pushed online and vis ,& and print.
)ots of media mentions as it as a I-uccessful branded spaceJ.
Direct contact with target people.
#$apter-0*
-ome 9orldwide (remium .rands of Uniliver.
<.1 'u@ :soap;
2/
'u@ is a global brand developed by Unilever. ,he range of products includes beauty
soaps, shoUniliverr gels, bath additives, hair shampoos and conditioners. )u/ started
as I-unlight 4la1esJ laundry soap in 18??.
3n 1?#", it became the first mass mar1et toilet soap in the world. 3t is noted as a brand
that pioneered female celebrity endorsements.
As of #$, )u/ revenue is at 1. billion euros, with mar1et shares spread out to more
than 1 countries across the globe.
,oday, )u/ is the mar1et leader in several countries including .ra6il, 3ndia, ,hailand
and -outh Africa.
Developed by Unilever, )u/ ;soap= is now head5uartered in Singapore.
History
!rigins + History
,he brand was founded by the )ever .rothers ;today 1nown as Unilever= in 18??. ,he
name changed from I-unlight 4la1esJ to I)u/J in 1?, a )atin word for IlightJ and
suggestive of Ilu/ury.J
)u/ toilet soap was launched in the United -tates in 1?#$ and in the United Bingdom
in 1?#8. -ubse5uently, )u/ soap has been mar1eted in several forms, including
handwash, shoUniliverr gel and cream bath soap.
-ince the 1?@s, more than " of the worlds most famous female celebrities have
been associated with )u/. 0arilyn 0onroe, -ophia )oren, %atalie 9ood, .rigitte
.ardot, Demi 0oore, *atherine Veta-:ones, -arah :essica (ar1er and Aishwarya 'ai
are some actresses featured in )u/ advertising campaigns.
+arly beginnings
)u/s early advertising campaigns aimed to educate users about its credentials as a
laundry product and appeared in maga6ines such as )adies Aome :itsnal. .y the early
1?#s, it was a hugely successful brand and in 1?#", the )ever .rothers conducted a
contest that led them to a very interesting finding< women Uniliverre using )u/ as toilet
soap.
Lux.uilding beauty soap credentials
6uilding beauty soap credentials
3ntroduced in the U- in 1?#", )u/ became the worlds first mass mar1et toilet soap
with the tagline Imade as fine as 4rench -oapJ. 3n the first # years of launch, )u/
concentrated on building its beauty soap credentials. Advertisements offered
29
consumers Ia beauty soap made in the 4rench methodJ at an affordable price, with the
promise of smooth s1in.
0ade with fine-te/ture, rich in fragrance, and manufactured using a method created in
4rance, the first )u/ toilet soap was sold for 1 cents apiece.
1?#8 M 1?"< ? out of 1 stars
,his era saw 1ey launches of )UO in the UB, 3ndia, Argentina and ,hailand. ,he brand
concentrated on building its association with the increasingly popular movie world,
focusing more on movie stars and their roles rather than on the product. 3n 1?#?,
advertising featured #C of the biggest female stars of the day, creating a huge impact
among the movie-loving target audience. ,his was folloUniliverd by Aollywood
Directors tal1ing about the importance of smooth and youthful s1in. ,his pioneered the
trend of celebrity product endorsements.
3n 1?@1, )u/ launched a campaign with older stars, I3 am over @1J. ,he series of print
ads had stars tal1ing about preserving youthful s1in. )u/ also launched campaigns
featuring interviews with -tars and *lose Ups of -tars, bringing to life the [? out of 1
idea.
3n 1?@", )u/ 'adio ,heater, a long-run classic radio anthology series, was
broadcasted on the %.* .lue %etwor1 ;1?@"-@$=7 *.- ;1?@$-$"= and %.* ;1?$"-$$=.
During the broadcast, various female stars would tout )u/ 4la1es as Uniliverll as
commercials during brea1s.
&*s 4 <*s: 1o!ancing the consu!er
Using movie star as role models, )u/s strategy was to build relevance by loo1ing at
beauty through the consumers eyes. 9hile still retaining the star element, the focus
shifted to the consumer and the role of the brand in her life.
Advertising commercials shoUniliverd ordinary loo1ing women with direct references to
stars, such as Deanna Durbin.
6*s: 1o!ancing the brand
,he Cs saw a shift in advertising to product stories and the romantici6ing of brand
through its Isensorial F emotionalJ dimensions. ,his was the era of [the film star
feeling and the [2olden )u/, featuring stars such as -andra Dee, Diana 'igg and
-amantha +ggar.
,he bathing ritual, the [fantasy element that has been the imagery of )u/, was created
in this era. ,he brand also moved forward with launching )UO in the 0iddle +ast,
entering a more conservative mar1et.
-0
8*s: %i!ensionali"ing beauty
'eflecting the shift in beauty trends in the Hs, the )u/ stars stepped down from their
pedestals and Uniliverre portrayed as multi-faceted women with natural, wholesome
beauty that the ordinary consumer could relate and aspire to. ,he e/ecutions
Uniliverre more of [a day in the life of the stars with focus on their [natural beauty.
-tars included .rigitte .ardot and %atalie 9ood.
9*s: O+ning the category space
+stablishing itself as ,A+ beauty soap for stars and beautiful women, the 8s
emphasi6ed the importance of s1in care M the first step to beauty. )UO was launched
in *hina at this time. -ophia )oren, 'a5uel Uniliverlch and *heryl )add Uniliverre
some famous celebrities used during this time.
7*s C 3arly 2***s: /dvanced s?in benefits
3n the ?s, )u/ moved from generic beauty benefits to focus on specific benefits and
transformation. 0ore emphasis on functionality and variant associations with different
s1in types as Uniliverll as mention of ingredients. ,he communication was far more
regional specific and locali6ed, using stars li1e 0alu 0ader and Debora .loch.
,his period launched product brand e/tensions -hoUniliverr *ream and 2els and )u/
-uper 'ich -hampoo in :apan and *hina.
2***s: 6eyond !ovie stars
3n early #, the focus shifted from specific s1in benefits to a stronger emotional
space. ,he brand provided the lin1 betUniliveren the aspirational role models and real
life with the campaign, [)u/ brings out the star in you. ,he benefit was now more than
Gust beauty, it was also about the confidence that comes from beautiful s1in.
3n #$, )u/ encitsaged women to celebrate and indulge their femininity with the I(lay
with .eautyJ philosophy, with stars li1e Aishwarya 'ai. ,he brand connected with
consumers to ta1e a more [active stance on beauty.
4rom #8, building off the brands root strengths, focus has shifted to beauty ;vs.
femininity=, appealing to consumers fantasies and aspirations. )u/ believes that
[beauty is a female instinct that shouldnt be denied and showcases the pleasure that
every woman enGoys from using her beauty, encapsulating that idea in a simple
phrase< Declare yits beauty.
,oday, )UO is growing in 1ey mar1ets in .ra6il, U-A, *hina, .angladesh and -outh
Africa, and is a mar1et leader in 3ndia ;for soap bars=, .ra6il, -audi Arabia ;for soap
bars=, .angladesh and ,hailand.
-1
<.2 %ove :toiletries;
-ig)2*: %ove is a personal care brand o+ned by ,nilever
Dove
#ype(ersonal careO+nerUnileverIntroduced1?$$
.Dove products are manufactured in Argentina, Australia, .ra6il, *anada, 2ermany,
3ndia, 3reland, %etherlands, ,hailand, ,ur1ey, andUnited -tates. ,he products are sold
in more than @$ countries and are offered for both women and men. ,he Dove
trademar1 and brand name is currently owned by Unilever. Doves logo is a silhouette
profile of the brands namesa1e bird, the color of which often varies.
(roducts include< antiperspirantsDdeodorants, body washes, beauty bars,
lotionsDmoisturi6ers, hair care, and facial care products. Dove is primarily made from
synthetic surfactants, salts of vegetable oils ;sodium palmate from palm 1ernel= and
salts of animal fats ;sodium tallowate from cows fat=. Dove contains animal fat ;tallow=
and for this reason some vegans may refrain from using it. Dove is formulated to be pA
neutral, a pA that is usually betUniliveren C.$ and H.$.
0ar1eting campaigns
3n #C, Dove started the Dove -elf-+steem 4und. 3t purports to be Ian agent of
change to educate and inspire girls on a wider definition of beauty and to ma1e them
feel more confident about themselvesJ.,o this day, Dove have created a number of
largely online-only short films, including )aughters ;which also aired in a H$-second
spot during the -uper .owl O)=, volution ;which won two awards at the *annes )ions
3nternational Advertising 4estival=, *nslaught, and A&(.
<.3 'ifebuoy :soap;
'ifebuoy is a brand of soap containing phenol mar1eted originally by )ever .rothers in
+ngland in 18?$.
History
Although )ifebuoy is no longer produced in the U- and UB, it is still being mass
produced by Unilever in *yprus for the UB, +U, U- and .ra6il mar1ets, as Uniliverll as
in ,rinidad and ,obago for the *aribbean mar1et. Unilever in *yprus and ,rinidad and
,obago is manufacturing the original 'ed )ifebuoy -oap with carbolic acid. 3n other
mar1ets, including -outh and -outh +ast Asia, the global brand of )ifebuoy -oap has
been updated to use red and other colitss with [modern aromas.
(atchphrases
-0
9hen the (hiladelphia (hillies played at the .a1er .owl during the 1?#s, an outfield
wall advertisement for )ifebuoy stated, I,he (hillies use )ifebuoyJ. 8ne night a vandal
snea1ed in and added to the ad, IAnd they still stin1J. &ariations of the Go1e Uniliverre
also employed by detractors of other losing teams.
,he term I..8.J, short for Ibody odorJ, is often thought to have been invented by
)ifebuoy for an advertising campaign. AoUniliverver, the term I..8.J was actually
coined by a company that made deodorant for women called 8do-'o-%o in 1?1?.
)ifebuoy made the term famous, hoUniliverver. ,he )ifebuoy radio ad, parodied by
several 9arner .rothers Loone( 'unes cartoons, used a foghorn-type sound to create
the I..8.J sound.
$." )aundry detergent
'aundry detergent, or +ashing po+der, is a substance that is a type of detergent
;cleaning agent= that is added for cleaning laundry. 3n common usage, IdetergentJ
refers to mi/tures of chemical compounds including al1ylben6enesulfonates, which are
similar to soap but are less affected by Ihard water.J 3n most household conte/ts, the
term detergent refers to laun$r( $etergent vs han$ soap or other types of cleaning
agents. 0ost detergent is delivered in powdered form.
History
4rom ancient times, chemical additives Uniliverre recogni6ed for their ability to facilitate
the mechanical washing with water. ,he 3talians used a mi/ of sulfur and water with
charcoal to clean cloth. +gyptians added ashes and silicates to soften water. -oaps
Uniliverre the first detergents.,he detergent effects of certain synthetic surfactants
Uniliverre noted in 2ermany in 1?1H, in response to shortages of soap during 9orld
9ar 3. 3n the 1?@s, commercially viable routes to fatty alcohols Uniliverre developed,
and these new materials Uniliverre converted to their sulfate esters, 1ey ingredients in
the commercially important 2erman brand 4+9A, produced by .A-4, and Dreft, the
U- brand produced by (rocter and 2amble. -uch detergents Uniliverre mainly used in
industry until after 9orld 9ar 33. .y then, new developments and the later conversion
of aviation fuel plants to produce tetrapropylene, used in household detergents,
caused a fast growth of domestic use in the late 1?"s.
,he use of en6ymes for laundry was introduced in the early part of the 1?s by 8tto
'ohm. 8nly in the latter part of the century with the availability of thermally robust
bacterial en6ymes did this technology become mainstream.
-1
At the present time, soap has largely been displaced as the main cleaning agent in
developed countries. -oap is, by Uniliveright, relatively ineffective, and it is highly
sensitive to deactivation by hard water. .y the 1?$s, soap had almost been
completely replaced by branched al1ylben6enesulfonates, but these detergents
Uniliverre found to be poorly biodegradable. Linear al1ylben6enesulfonates ;)A.s=,
hoUniliverver, proved to be both highly effective in cleaning and more biodegradable
than the branched relatives. )A.s remain the main detergents used domestically.
8ther detergents that have been developed include the linear al+(lsulfonates and
olefinsulfonates, which also resist deactivation by hard water. .oth remain specialty
products, for e/ample only an estimated C million 1ilograms of the sodium
al1ylsulfonates are produced annually. During the early development of non-soap
surfactants as commercial cleaning products, the term s(n$et, short for s(nthetic
$etergent, was promoted to indicate the distinction from so-called natural soaps
#$emistry o, detergents
0any 1inds of molecules and ions can serve as high-efficiency surfactants. ,hey are
often classified according to the charge of the molecule or ion, the three main classes
being anionic, neutral, and cationic detergents. Anionic detergents are most commonly
encountered for domestic laundry detergents. Detergents are ions or molecules that
contain both polar and nonpolar components. ,he polar component allows the
detergent to dissolve in the water, whereas the nonpolar portion solubili6es greasy
;IhydrophobicJ= materials that are the usual target of the cleaning process. An
estimated C billion 1ilograms of detergents are produced annually for domestic
mar1ets.
#omponents
0odern detergent formulations M the entire product vs Gust the surfactant M contain
several components. ,hree main ingredients are builders ;$K by Uniliveright,
appro/imately=, the al1ylben6enesulfonate surfactant ;1$K=, and bleaches ;HK=.
6uilders
.uilders are water softeners. ,hese chemical compounds are agents that remove
calcium ions by comple/ation or precipitation. ,ypical builders are sodium carbonate,
comple/ation agents, soap, and 6eolites. ,hey function by se5uestering or
precipitating the problematic ions. 8ne of the most common builders is sodium
triphosphate, which is used on very large scale for this application.
-4
6leach
,he main targets of bleaches are of vegetable origin include chlorophyll, anthocyanin
dyes, tannins, humic acids, and carotenoid pigments. 0ost bleaches in laundry
detergents are o/idi6ers, e.g., sodium perborate or sodium hypochlorite, 3n addition,
other agents are added as Ibleach activatorsJ, to enhance the effectiveness of the
bleaching agent7 a popular one is tetraacetylethylenediamine.
3n"y!es
0any laundry detergents contain en6ymes. ,he amounts of en6yme can be up to
about #K by Uniliveright of the product. ,hese agents are re5uired to degrade
recalcitrant stains composed of proteins, fats, or carbohydrates. +ach type of stain
re5uires a different type of en6yme, i.e., protease for proteins, lipases for greases, and
amylases for carbohydrates.
Other ingredients
0any other ingredients are added depending on the specific application. -uch
additives modify the foaming properties of the product by either stabili6ing or
counteracting foam. 8ther ingredients increase or decrease the viscosity of the
solution, or solubili6e other ingredients. *orrosion inhibitors counteract damage to
washing e5uipment. IDye transfer inhibitorsJ prevent dyes from one article from
colitsing other items. IAntiredeposition agentsJ are used to prevent fine soil particles
from reattaching to the product being cleaned. *arbo/ymethyl cellulose is used for this
purpose.
A number of ingredients affect aesthetic properties of the item to be cleaned or the
detergent itself before or during use. ,hese agents include optical brighteners, fabric
softeners, and colitsants. A variety of perfumes are also components of modern
detergents, provided that they are compatible with the other components and do not
affect the colits of the cleaned item. ,he perfumes are typically a mi/ture of many
compounds, a popular component being cyclohe/yl salicylate, which is related to oil of
wintergreen.
Environmental concerns
+arly in the introduction of sulfonate-based detergents, concerns Uniliverre voiced over
the low rates of biodegradation of the branched al1ylben6enesulfonates. ,his problem
was addressed by the introduction of linear al1ylben6enesulfonates.
A more profound problem arises from the heavy use of sodium triphosphate, which can
comprise up to $K by Uniliveright of detergents. ,he discharge of soluble phosphates
-2
into natural waters has led to problem with eutrophication of la1es and streams. ,he
replacement of sodium triphosphate by 6eolites offers some relief to this problem. 9ith
respect to the phosphate additives, betUniliveren 1?" and 1?H Ithe amount of
phosphates in city wastewater increased from #, to 1$, tons per year. 9ith
the increase in phosphates, algal blooms grew splendidly on the e/cess phosphorus
and consumed most of the o/ygen in the waters, 1illing fish and plants.
3n #", the +uropean Union introduced regulations to re5uire biodegradability in all
detergents, and intends to ban phosphates in domestic products from #1@
Australia began phasing out the use of phosphates in its detergents in #11, with an
all-out ban e/pected to ta1e effect in #1".
(ursuant to findings published in #C by the -hen1ar *ollege of +ngineering and
Design indicating that li5uid detergents are Imuch more environment-friendlyJ than
powdered detergents, 3sraels 0inistry of the +nvironment began recommending that
consumers prefer li5uid detergent over powdered ones Ifor laundry which is not heavily
stained.J
$.$ -unsil1
-unsil1 is a hair care brand, primarily aimed at women, produced by the Unilever group,
which is now considered the worlds leading company in hair conditioning and the second
largest in shampoo. -unsil1 is Unilevers leading hair care brand, and ran1s as one of the
Anglo-Dutch conglomerates Ibillion dollar brandsJ. -unsil1 shampoos, conditioners and
other hair care products are sold in C? countries worldwide.
-unsil1 is sold under a variety of different names in mar1ets around the world including
+lidor, -eda and -edal. ,he brand is strongest in Asia, )atin America and the 0iddle
+ast and is the number one hair care brand in 3ndia, .ra6il, Argentina, .olivia,
.angladesh, -ri )an1a and ,hailand.
History
-unsil1 was launched in the UB in 1?$", and by 1?$? it was available in 18 different
countries worldwide. At the time, -unsil1 had an advantage over other shampoos in
the mar1et as it only needed one application, and so meant washing less natural oils
from the hair. -unsil1 cream shampoo for dry hair was launched in 1?$C.
3n 1?$8, a new transparent polythene tube for the li5uid shampoo was introduced as
an alternative large si6e pac1 to the bottle. -unsil1 was also available in such tubes.
--
3n 1?C, -unsil1 ,onic shampoo was launched, containing s1in healing ingredient
Allantoin M designed to help 1eep the scalp free from infection.
3n 1?C1, -unsil1 )i5uid shampoo was re-launched to -unsil1 .eauty, because [)i5uid
in the name, originally used to distinguish the product from powdered shampoos had
become meaningless as the maGority of shampoos Uniliverre now in li5uid form.
3n 1?C#, -unsil1 was mar1eted as a range of shampoos for different hair types.
-unsil1 significantly improved product formula and launched new variants in 1?CC< the
first maGor shampoo to contain olive oil, which acted as conditioner to ma1e hair soft
and manageable7 shampoo for dull hair, which restored hairs natural shine7 lemon
shampoo for greasy hair with deep cleansing ingredients.
-unsil1 hair spray was first launched in 1?C" to enter an e/panding hair-spray mar1et,
but in 1?CC a new product formula was developed which gave hold, even in damp
Uniliverather whilst still caring for hair. ,he hair spray contained a 4rench perfume and
could easily be removed by brushing or shampooing it out.
3n 1?C?, all -unsil1 shampoo was re-pac1aged in new (&* bottles, which Uniliverre
larger than traditional glass bottles for the same price.
-unsil1 conditioner was launched in 1?H1 with three variants for dry, normal and
greasy hair. 3n 1?H@, -unsil1 launched an aerosol dispensed setting lotion. An
economy si6e shampoo bottle was introduced for -unsil1 in 1?H".
3n 1?H$, -unsil1 became the biggest name in hair care with 1,, pac1s being
sold every Unilivere1.
3n 1?8, the whole -unsil1 range was re-launched, with improved formulations and
pac1aging design to bring the brand into the 1?8s.
3n 1?8$, -unsil1 styling mousse was launched and # years later a conditioning mousse
folloUniliverd.
3n #1, -unsil1 moved into the hair colitsant mar1et for Asian-type dar1 hair, offering a
range of seven permanent colitss from natural blac1 to copper with purple, red and
gold tints.
3n #@, -unsil1 launched a new range of shampoos and conditioners, which Uniliverre
developed to meet womens hair needs and reflect the way women thin1 about their
hair. ,he fa1e institute ;a trademar1 by -edal= I+lida Aair 3nstituteJ developed the
products in response to mar1et research. +ach product contained a uni5ue formulation
of ingredients, combining the best from natural and scientific worlds to help combat
common hair problems.
-.
-ilestones
1?$" M -unsil1 first launched in the UB.
1?$$ M 4irst advertisement of -unsil1 appeared on ,&.
1?C" M )aunch of -unsil1 hair spray.
1?C8 M -unsil1 shampoo re-pac1aged in (&* bottles.
1?H1 M )aunch of -unsil1 conditioner.
1?H$ M -unsil1 became the biggest name in hair care.
#@ M -unsil1 glossy maga6ine launched in Argentina.
#8 M -ocial networ1ing site 2ang of 2irls was introduced in 3ndia.
First advertising
-unsil1 began advertising in 1?$$ with a campaign that focused on specific hair
IissuesJ. 3n the UB, the campaign focused on shiny hair. During the 1?Cs, a television
commercial of -unsil1 featured a tune composed by :ohn .arry, I,he girl with the sun
in her hairJ, which proved so popular that it was subse5uently released as a pop
single.
-unsil1 radio commercials Uniliverre aired in 1?C? featuring Dere1 %immo to support
the new -unsil1 Aerb shampoo for problem hair called IAairy ,alesJ. 3n the early
1?Hs, -unsil1 was advertised with the slogan IAll you need is -unsil1J.
#elebrity associations
0adonna, -ha1ira, 0arilyn 0onroe, and 0arian 'ivera all featured in -unsil1s #8
advertising campaign I)ife *ant 9aitJ which launched with a -uper .owl O)33 spot.
,he philosophy behind the campaign was about girls ta1ing positive steps to gain
better control of their lives IAair 8n b )ife 8nJ.
Actress and former 0iss 9orld (riyan1a *hopra is the brand ambassador for -unsil1
in 3ndia.
3n #?, singer Delta 2oodrem was announced as the Iface of -unsil1J in Australia.
,he singer and her music have since featured in several -unsil1 adverts.
3n #H, .ritish girlband 2irls Aloud launched a campaign for -unsil1 after securing a
sponsorship deal worth over a1,,.0embers %icola 'oberts, %adine *oyle,
*heryl *ole, Bimberly 9alsh and -arah Aarding all represented the brand, which
included shooting a television commercial. -unsil1 also sponsored their following tits
-aga.ine
3n #@, -unsil1 ;-edal= launched the first hair only glossy maga6ine in Argentina
aiming to communicate to the professional hair industry. 0ore than 8, copies are
published each month. ,he maga6ine focuses on hair, fashion and beauty issues as
-/
Uniliverll as showcasing hairdressers wor1. 3t is sold locally on news stands and
distributed to hair salons.
Gang o, Girls
3n #8, -unsil1 3ndia launched a social networ1ing site called 2ang of 2irls, which
offered its users access to a variety of local and global e/perts to address various hair
care needs through its content, blogs and live chat room. ,he site includes rich content
of hair care and fashion, and users can also ta1e part in interactive games and
5ui66es.3n #11, -unsil1 was listed in ,he .rand ,rust 'eport published by ,rust
'esearch Advisory.
#o-#reation collaboration
4rom #? -unsil1 started wor1ing with a number of professional hair Ie/pertsJ to
develop new and improved products. +ach hair IissueJ variant lin1s to an Ie/pertJ with
the relevant specialist hair 1nowledge. 4or e/ample, Dr 4rancesca 4usco, a %ew >or1
dermatologist, co-created a IhairfallJ variant for the brand. ,he line up also includes<
:amal Aammadi for .lac1 -hine, 'ita Aa6an for &ibrant *olits, ,eddy *harles for
(lumped Up &olume, ,homas ,aw for Damage 'econstruction, 8uidad for Defined
*urls and >u1o >amashita M inventor of :apanese hair straightening process [>UB8 M
for (erfect -traight
(onclusion:
,his report only focuses on the U%3)+&+' mar1eting mi/. 3 did not able to collect the
whole information of the *ompany. go into the company.
.y my analysis 3 have found that, U%3)+&+' is globally successful company. 8ne of
the reasons for their success was hoUniliverver7 they create brands for specific
countries and regions. (roducts for e/ample, found in south Americas will not be found
in south Asian countries. -ince difference in culture e/ists worldwide, the creation and
supply of brands have to be ta1en seriously. U%3)+&+' .angladesh is the mar1et
leader in home and personal care products. ,he U%3)+&+' products are able to gain
customer satisfaction and trust. ,heir production and distribution is e/panding rapidly.
Unilever 1now that if Unilever are to achieve their ambitious growth obGectives Unilever
must reduce the total environmental impact of the business. 3ts commitment e/tends
right across its value chain M i.e. from the sitscing of raw materials through its own
production and distribution to consumer use and eventual disposal of residual
pac1aging. Unilever fully recogni6e that Unilever will need to develop a new model for
business growth. Unilever are embar1ing on a long-term programmed of wor1 with its
-9
suppliers, customers and other partners to reali6e this goal. 9ith its portfolio of strong
brands, presence in emerging mar1ets and long-standing commitment to shared value
creation, Unilever believe Unilever are Uniliverll placed to deliver on this ambition.
8ver 1 years ago, its founders not only created some of the worlds first consumer
brands, they also built a business with strong values. Unilever have continued to
update its vision as the world has changed. 3n the 1??s Unilever formally integrated
sustainability factors into its strategy. ,hen, in #$, Unilever started to embed this
agenda into its product brands using a process called .rand 3mprint. -ince then .rand
3mprints have been completed across all its product categories. -ocial and
environmental considerations are now integrated into the innovation and development
plans of its maGor brands. At the same time, Unilever are also evolving its approach to
corporate branding. Unilever are starting to consider how they ma1e Unilevers
corporate commitments and activities more visible and relevant to their consumer.
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