PHILIPPINE CHRISTIAN UNIVERSITY

City of Dasmariñas, Cavite

Case Study

In

Sales Management

Submitted to: Prof. Jeanet Parreno

Submitted by: Enrico Johnny P, Mijares JR

MAY 2020

Case Study: Unilever: Redefining Product Policy for a Global Future

I. Case Background

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 Unilever’s global started within the nineteenth century when the 2

companies sent out young men on ships from Rotterdam and Liverpool to

numerous parts of the planet to create businesses, founded plantations,

build factories, establish distribution and provide systems. Unilever

illustrates many of the challenges faced in developing and managing a world

strategy.

When Patrick Cescau took over CEO of Unilever in 2005, the corporate was

still affected by the shock of its first ever profits warning. The previous CEO,

Niall Fitzgerald, had developed a five-year “Path to Growth” plan which

involved reducing the company’s portfolio of brands from 1600 to 400 within

the belief that focusing resources and energy would deliver the target 5-6

percent growth every year. However, the sales of variety of high-profile

brands like Surf, and Slim-Fast, significantly underperformed expectations.

By 2007, the performance of Unilever was back on target with sales growth

of three.8 percent and profits up to 7 percent. The turnaround was achieved

by focusing resources on those specific products with the foremost potential

for growth, as an example its care brands like Dove and life ring, its “vitality”

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 brands that encourage healthy living, like Knorr Vie, Flora and Blue Band

Idea

Time Context: 2005

II. View Point: Patrick Cescau (CEO)

III. Central Problem

Unilever faces difficulties in creating and maintaining a strategy across

the world.

Areas of Considerations (SWOT Analysis)

STRENGTHS:

 Unilever has some of the strongest consumer goods brands in the

market

 Wide mix of products

 Wide business position internationally

 Sustainable tariff policies

WEAKNESSES:

• Imitable nature of its products

• Small diversification of undertakings beyond the consumer goods

sector

• Lack of direct impact on customers, given that retailers are directly

influenced by buyers.

OPPORTUNITIES:

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  Business diversification

 Product innovation for health

 Business enhancement for environmental conservation

 Market development

 Product differentiation

THREATS:

• Strong business competition such as Proctor and Gamble

• Brand duplication of other products

• Growing success of house brands of retailers

• Brand substitution on the market.

IV. Alternative Courses of Action (ACA)

ACA #1: Allocating more finances or resources on products with

the most potential growth

ADVANTAGES:

• Labor costs are easier to track and manage

• This approach can easily be modified and applied to match changing

business needs.

DISADVANTAGE:

 Needs substantial preparation

ACA #2: Direct product distribution

ADVANTAGES:

• Unilever can differentiate itself from the competition

• It can deliver goods to customers more quickly

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 • Can create customer loyalty

• Avoid sharing profits with a third party distributor

DISADVANTAGES:

• High costs

• Potential customers without the network can also be more difficult to

access, provides the existing distributor

ACA #3: Product differentiation

ADVANTAGES:

 Generates added value

 Builds brand loyalty

 Helps businesses to succeed in various ways.

DISADVANTAGE:

 Can pressure capital

V. Recommendation

I suggest ACA#3 (Product Differentiation), as it is an essential tool for achieving

competitive advantage that results in higher organizational efficiency that results in

higher profits.

VI. Plan of Action

• Capture or obtain customer feedback

• Prepare future product innovation

• Devote resources

• Manufacture innovative goods

• Distribute goods through the company's distribution channel;

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 VII. Conclusion

Therefore, from my research report, I conclude that the Unilever organization will

pay more attention to the goods they manufacture in terms of quality design, creativity

and unique features. The organization wants to ensure that customers are provided

with sufficient satisfaction. This means that management should put additional focus

and start paying more attention to consumer choice because it is an important tool for

achieving market advantage that results in higher organizational efficiency that results

in higher income. In the future, this industry's popularity may be constant, or even

greater. The life cycle of the company is lasting as people use their goods in their daily

lives.