Advantages to Unilever after acquiring inmarko

1. Russia was an emerging market whereas unilever had only 1% approx share coming from
Russia. So a chance for them to increase their market share in Russia
2. Ice-cream is one of the Anglo-Dutch companys core products, with Unilever owning the
Magnum, Cornetto and Ben & Jerrys brands
3. Emerging markets have accounted for the bulk of Unilevers sales growth in recent years
as consumption of its products in western markets has slowed.
4. Inmarko was established in 1993 and has an 11 per cent share of the Russian ice-cream
market. Hence low entry barriers, less risk of failure, and most importantly inmarko had a
full distribution system already set up.

Changes Unilever should do

1. The organizational structure Unilever should adopt is plant director structure wherein the
departments like HR and finance can be taken up by Unilever itself and no need for these
departments in unmark as they are less burden in terms of work and will help to reduce
duplicity of work. The other departments like Planning, supply chain and logistics,
production can be handled by inmarko as of now with some people from unilever heading
these departments and giving suggestions in order to smoothen the process and
standardize the processes as per the Unilever corporate work style. Simultaneously
unilever employees can be involved with processes of inmarko so that they get aware of
how to interact with people in local market here and understand their tastes to further
increase the profits. Later on as Unilever gains on the hold over the market of Russia with
this brand some more steep changes can be made wherein the less efficient employees of
inmarko can be removed and replaced with those of the efficient ones in unilever who
have got the knowledge of this brand. This would help in reducing the headcount as well
as improve upon efficiency.
2. Creation of new multi-country organizations clusters of neighboring countries with one
central management structure, leveraging regional scale through shared services for
functions such as HR, IT and Finance
3. Since inmarko was less into advertising their products whereas unilever is much more
experienced and have a full fledged advertising team for brand building, Hence this area
for inmarko can be streamlined via the negotiating powers of unilever since in Russia the
advertising prices are decided differently for every brand based on negotiations.
Advertising can be a key to success and thus Unilever should advertise extensively. This
would not only inmarko brand but also help promote other products of unilever.
4. Unilever can also increase the reach of the products in other areas of the world where it
has already established its feet. Since Unilever has many production factories and an
established supply chain system across the world they can be asked to set up for
production of inmarko brand ice cream under the supervision of inmarko staff so that

production level goes up and with this delivery expansion raw materials cost is bound to
come down due to vendors giving discount on bulk purchases.
5. The various patents Unilever has acquired and the efficient process solutions it has can be
applied in Inmarko processes and this will help them reduce the costs as well promote
environment friendliness.