Company overview of unilever

Comp any overview of unileverUnilever is one of the fast moving consumer goods (FMNG) in the world. They offer a large- melodic themeed range of merchandises in food, bever dayss, person-to-person c ar products and numerous more. The advantage story of Unilever can be seen in the annual dis bless in the divergence two hundred9 which is 39.8billion worldwide and employs 163,000 employees most the world.Company mail serviceMission tiltUnilever primary(prenominal) goal is to add value to the life of spate. They want to b different away to the consumers by encountering their everyday needs. By providing the needs for fodder, hygienics, and in-personized take they argon able to booster the people to feel refresh, pure tone good and get the close to out of their life. Moving on, they want to go up a unsanded way of making vocation with priority towards expanding in two ways the surface of phoner while reducing purlieual impact.Below is a graph of Unilever s annual turnover reservoir (www.unilever.com/images/ir_Charts%201996%202006_tcm13-90292.pdf )Financial Summary p arntage (www.unilever.co.uk//introductiontounilever/annual-reports/ )This graph clearly says Unilever progress without the past twelvemonths. rudimentary deal out maturement (USG) is the function of emergence in turnover, modify for the impact of acquisitions, electric pig and exchange prize fluctuations. In the socio-economic class 2009, the USG growth is 3.5% compargond to 7.4% in 2008. Underlying volume growth (UVG) is gross bargains after the impact of (USG), which is 2.3% in 2009 that shows sustainable development strategy is turn tailing because Unilever manage to save in the hail of exp stamp outiture.. Operating margin for 2009 is 12.6% compared to 2008 is 17.7%, and this has save the party from net impact net salary of disposal, restructuring and other on-off items.Source (www.unilever.co.uk//introductiontounilever/annual-reports/)This graph above shows the financial review of Unilever in antithetical region much(prenominal) as Asia, Africa, and Central Eastern atomic number 63 ( AAC) , America, and excessively horse opera Europe.Asia, Africa, and Central Eastern Europe (AAC)In the (AAC) countries, the turnover current rate experience a growth of 2.9% after including the personal effect of acquisitions, disposals and exchange rate as shown in the graph above. The operational earnings at current rate has increase by 13.3% in the twelvemonth 2009. Despite the fact that commercialize conditions are volatile and ch every(prenominal)enging in some region, Unilever in (AAC) countries manage to produce a remarkable inherent sales growth of 7.7%.The AmericansUnilever in the America has suffered a 2.6% fall in the turnover growth at current rates after the including the effects of acquisitions, disposal, and exchange rate. The Operating benefit at current rates for the socio-economic class 2009 has experience major lose of 37.4%Western EuropeUnilever in the Western Europe has suffered losses as much as 6% in the year 2009, after including the effects of acquisition, disposal and exchange rate as shown in the graph above. The Operating profit in 2009 experience the most losses at current rate as high-pitched as 50.4% in Western Europe. The agent that causes much(prenominal)(prenominal) huge losses are because of the lack confidence in the consumers towards the sword in the Western Europe, and thither mold one over been an increase in unemployment rate due to the challenging parsimoniousness in more an(prenominal) countries.Market ShareSource (http//zpryme.com/blog/?p=420)Above shows the commercialise share of Unilever Bestfoods NA dominating the market with 26.3%. Lipton teatime leaf as Unilevers food segment mark off has dominated the market because of their market strategy such as Tea Can Do That push to create sentiency and Lipton tea has promises innovation tea flavors and at the said(prenominal) time providing a healthy lifestyle drinks for consumer .Source http//www.fixedin travel alonginvestor.co.uk/x/analysis.html? frame=Analysis%20%26%20Commenttype=Bond%20of%20the%20Weekaid=291)Chart above shows the market share of Unilever from 1994 to 2008, Unilever has been operating internationally and fuck off annual sales of 40billion and the economic of this company has produce a relatively stable share damage that does not commit a major downfall even though tough competitive market in the Europe market with challenger like Procter Gamble ( PG ) . Unilever has similarly performed much better then what the racy FTSE 100 index predicted over this decades.Market SituationPESTLE implications policy-making surroundingsUnilever being a fast moving consumer goods (FMNG) company in the world does not support any political parties whose activities is to crusade the companionship interest, this is because they believe that the business they operate in mus t be expect with honesty , integrity and openness. However, the political tr kiboshs still motivates Unilever in the United Kingdom.In early February 2010, Unilever has been burden by the increase of gross enhancement by the UK government. Initially, the company is already facing economic instability because consumer are un provideingly to deteriorate more money. Paul Polman, the chief executive said that the daily mail, If on top of that we would get an additional regulatory or tax environment that would make us non-competitive that would be unfortunate for the UK. Mr Polman is worried with the increase of taxation , Unilever has to pay even more into for expenditure make up for research laboratories, manufacturing facilities and more.Source (www.unilever.com/images/ir_Charts%201996%202006_tcm13-90292.pdf)The graph above shows from year 2000 until 2004, Unilever has been less on expenditure such as manufacturing facilities, and research and development sector. As of year 200 4 onwards the cost has been increasing yearly until 1,700 (million) and with the recent increase of taxation in UK , Unilever pull up stakes have to spend more on expenditure cost in the year to come.With the increase of expenditure cost and in downfall of net profit made by Unilever , this will sham the momentum of profit generated for the company in UK , and this will cost the performance of reformment in Unilever which is a slow growth in the market business. This is why Mr Polman is pertain with the step-up of corporation tax. He similarly added that , We have to be undisputable when changes are contemplated by the Government that it takes into account what other countries do as well in Europe, or outside of Europe, to provide competitive corporate tax rates. economic environmentIn the economic environment, Unilever generates wealth by adding value to desolate materials, and manufacturing their product for the consumers. The parties that are involve in the economic envir onment is their employees, government, investors, and many more communities that benefits from the activities of the company.Source (www.unilever.com//sd_UnileverSDReport170310_amended_tcm13-212972.pdf)This graph shows the parties that benefit from the activities that are imperild by Unilever in UK. Despite the economic instability that happens in decades, Unilever is still able to generate an operating profit of 5,020 and sales of 39,823 million in 2009. This graph shows us that the employees gain the biggest share of the company which is 5.2billion, whereas the least share is earn by the local communities which is 89million. The provider of capital obtains the 2nd highest share which is 2.5billion and the governments gain 959million from the company in the form of corporation tax that is issued by the government.Sociological EnvironmentMaking a difference in society is one of Unilevers biggest role because they want to deliver the best and to give back to the society that has been supporting the success of Unilever. Unilever will be stressing to provide nutrition culture to the under rest of consumers and excessively improving nutrition feel of their products.In ordinance to meliorate the nutritional quality of the product and importanttaining the taste, It is estimated that reduction of salt pulmonary tuberculosis by 1g can dilute the vistas of strokes by 5% and heart gust by 3 % reducing salt by as itsy-bitsy 1 g. The Nutrition Enhancement Programme has come up with a strategy known as salt reduction strategy in this strategy it states that in 2009 we fixate product benchmarks to get to a dietetic wasting disease of 6 g of salt per day by the end of 2010, with the ambition to reduce gain ground to5 g per day by the end of 2015Unilever has also extended their impact by working together with macrocosm Food Programme (WFP) where they support developing countries and improving the health and nutrition of product. In parliamentary proce dure to bowl over out to the people , Unilever in UK has donated 500,00 with orbiculate partnership and with (WFP). They also encourage people to donate by dint of with(predicate) website to the Haitis earthquake disaster relieve cost. Unilever also had donated soap and Puriet ( water system purifier that does not need pressured water and or electricity.Technology EnvironmentIn the engine room sector, Unilever has been consumption in the area of e-business to improve brands communicating and market through internet, and also making transaction simple along chain. Unilever Technology has work together with Unilever R D group in order to construe consumers needs. In the year 2003, Unilever introduce the new pallet live warehousing system from Bitto Storage System Ltd. The purpose of this engineering science is to store crisp products.Plans are being made to improve IT infrastructure in Unilever. For example, increment in the energy-efficiency of data centers and applying po wer management strategies. Tele presence video conferencing is also applied in order to reduce the impact of business travelling. Telepresence has been generated in 13 countries and plan to add another 39 countries in 2010. This technology have helped us to reduce our emission by 4,230 thyroxines and save up to 12 million in travel cost for the year 2010 .environmental EnvironmentUnilever is victorious the responsibility in reducing the total environmental impact the main problem is actually to reduce greenhouse gases from the shaper of their products. Unilever has been doing a wonderful job in reducing the labor of C02 to the environment. They have achieved a 41% reduction of CO2 emission per tonned production since 1995. Their main goal today is to reduce CO2 production in their manufacturing execution by 25% in the year end 2012.Source (www.unilever.com/images/ir_Charts%201996%202006_tcm13-90292.pdf)In this graph we can see that, in the year 2009 they manage to reduce their CO2 production by 3% per tonne of production compared to 2008. From year 2000 to 2009 we can see that Unilever is able to reduce the production of carbon dioxide consistently. The factor for this success is because of the good manufacturing practice that they adopt in the factories. However, they have to induce a great cost in venturing into technology that will further reduce the emission of CO2.Source (www.unilever.com/images/ir_Charts%201996%202006_tcm13-90292.pdf)Unilever also make approach into delivery water consumption, they have been consistently reducing water use in manufacturing. Quantity of water use per tonne of production has been reducing by 65% since the year 1995. From this graph we can study that the goal of reducing water usage is also in the right path. Every year since 2000 until 2009 the usage of water reduces per tonne of production. In the year 2009, as show in the graph water consumption was reduce by 5.6 % per tonne of production compared to the earlie r year in 2008, which is a reduction in 8.1% in to be precise .Legislation environmentUnilever is protected by European Commission to chequer that there is no infringement towards the brand name and product of Unilever. Unilevers business is also govern by laws and standard to make sure that products are safely used by consumers and also that advertising and labeling are not mis direct in the business world.Unilever also has Environment Policy to travel along in order to ensure safe of their products and reduce environmental footprint of their brand. Evaluation should be made at every stage, from producing the raw materials to create products to dispose usage by the consumer as the end user. environmental management systems should be develops and improve in order to enhance the performance of environmental galosh and sustainability programmes.Encourage suppliers to develop and improve ingredients and manufacturing of Unilever products. Relationship with industry bodies, governm ent agencies, and business partners should be strong to bring up environmental do and to develop the knowledge and disseminate best practice.Competitors situation and SWOT analysisAlthough Unilever is a fast moving consumer goods (FMNG) in the world, their standing in the world is also affected by competitor around them. Nestle is also one of the worlds largest food manufacturer, that is dwelling housed In 200 countries worldwide and head quartered in Vevey, Switzerland. Their operating activities include food, beverages, pet tending and also pharmaceuticals. They have 253,000 employees around the world.StrengthRecognition as a global companyStrong brand portfolioStrong relationship with retailerEconomic of scalesWeaknessesDual leadershipInefficient management of brandsReduced spending on R DInability to maximize acquisitionOpportunities changing of costumers tasteThe high demand of healthy productsResponding toward global activitiesThreatsStrong competition- decrease in revenu eNew development of different brandsExchange rateWeatherSWOT Analysis of UnileverStrengthGlobal sales have topped $ 101billionRanked as worlds largest bottleful water company study brands consistently supported by consumerWeaknessGrowth in complete food was flatBreakfast cereal was claim to have posses bastard health benefitsGeneral Mills is a major brand still slow in innovation and health base productsOpportunitiesIntroduce more health-based productsOpened Nestle Cafs to feature Nestle ProductsProvide wild bean free and gluten free productsThreatsRaw ingredient price of drinking chocolate has work upMajor Competitor in chocolate such as Hersheys, Starbucks and many moreContamination of food allowSWOT Analysis of Nestl compare of Unilever and Nestle SWOT analysisStrengthUnilever is recognizing worldwide because of the success of their products and is base in many other countries. It has an excellent management of portfolio, which includes many leading global wants with power ful category ranking such as Lipton tea. This brand has the marketing expertise to capitalize worldwide including regenerating 44% sales from the increment in D E markets. Nestle has the attention of consumer as they have target environmental issues by ranking as the largest bottle company in the world, and Nestle is easily accessible because they are operating in more than 100 countries.WeaknessesReports of replacing current CEO has turn up uncertainty factor as his role in Unilever is very successful. Unilever has a wide management folio which includes their top 25 brands. There is a lack of management strategy. Some consumer brands might have stronger management compared to others in order to compete with competitors. Nestles breakfast cereal product has been branded as false claim in providing health benefits by American health check Association. This will cost Nestle a huge loss in the market share and also expenditure in rebranding the brand. This has give Unilever the no tice to target consumer with health benefits products in their food and drinks line which is Lipton tea.OpportunitiesUnilever can improve the need for high quality food, with more nutritious ingredients or innate meal services. Consumers are concern about ingredients knowledge. Products must be different in packaging, example labeling on nutrition facts on product package. For global activities, Unilever has work in partnership with orbit Food Programmes (WFP) with support in the development of the health and nutrition of children in developing countries. In 2009, 17 million meals were provided for children of 80,000 and in Kenya, Indonesia, and Colombia at least 50,000 schools were taking part in health and Nutrition Campaign. Nestle has come up with new strategies in order to target health benefit products such as coal scuttle Nestle Cafes that sells their products actively in all countries and also give them the chance to promote new products.ThreatsWorld economic instability may affect developing countries and continue to spread in the R E markets. Rivals (FMNG) may rise to capture the market share from Unilever growth areas, as they also focus on the same market as Unilever. Brands like P G and Nestle are also coming with new brands that are cheap and still concur the quality of products.Weather such as drought is also a threat to Unilevers Lipton tea brand as they might fail to produce the targeted tea amount and good quality tea. As for Nestle as they are exposure to chocolate brands such as Hersheys and Cadbury that might come up with more creative chocolate products. Food contamination is also a threat to Nestle as they are afraid it might damage their image as a global food producer. Raw chocolate ingredients have increase in price and might cost Nestle to spend more on expenditure cost.Objectives and assumptionsSocietal objectivesSpecificGuide consumer to reduce salt intake by 6g per dayChange the hygiene behavior of people through Lifebuoy and its partner programmesDisplay percentage Guideline Daily Amount (GDA) for come across nutrient on the package of productsMeasureableFood portfolio has reach benchmark of 76% reduction of salt in productsLifebuoy programmes such as has reach out to 23 countries through Global Washing Hand ProgrammesFood products that are manufactured with key nutrients on packagingAchievableWorld Health Organisation has recommended 5g intake of salt per day and this will charge consumer to follow them in the path of healthy lifeHygiene education has been involute -out towards countries like Indonesia, Pakistan, Sri Lanka and VietnamAll food products will reduce in percentage of salt, and saturated fat besides retain the taste of the products practical(prenominal)World Health Organisation recommended to reduce intake of salt has help Unilever to guide consumer to reduce salt intake by reducing the salt ducking in productsMillions of people has been reach in 23 countries to increase conscious ness on hygieneNutrition information helps consumer to understand how healthy is the productTimelyIn the year 2010, 5g of salt intake has been reduce. By 2015, 6 g of salt consumption will be achievedChange the hygiene behavior of 1 billion people by the year 2015Environmental ObjectivesSpecificReduce environmental impact while doubling size of businessAll tea for Lipton tea product are from conscious sustainable resourcesAll palm crude oil obtain from certain sustainable resourcesReduce CO2 from energy in manufacturing productsMeasurableAssessed greenhouse gas, water, and bollix up impact of 1500 productsAround 80% of Lipton Tea Label are from dependent farms185,000 tonnes of palm oil are purchase via certified farmsReduce the production of carbon dioxide energy in manufacturing sector of productsAchievableTea that are sell in Western Europe comes from Rainforest Alliance manifest farmsTotal purchase of 15% palm oil are from jet wield Certified farmsAchieve 41% reduction i n Co2 energy from manufacturing productsRealistic65% and 73% reduction in water and total wastageRainforest Alliance certified farm and Green Palm farms are main supply of tea and palm oil for Lipton tea productsManufacturing sector strategy are able to reduce 44% of Co2 since 1995TimelyBy the year 2015, all tea that are sold is certified sustainable sourcesBy the year 2015, all palm oil that are sold is also from certified sustainable sourcesBy the year 2015, water, greenhouse gas, and waste impact is reduce by another 25%Co2 energy reduce by 25%in manufacturing products by the year 2015Financial ObjectivesSpecificIncrease sourcing from smallholder to ensure security supplyReached 49% of sales in developing countriesUnilever top line growth in sales by 5%Brand reduction from 1600 to four hundred productsMeasurableTea and Palm oil are obtain from certified farms12 brands with sales of 1billion profitBrand extension such as Knorr to increase profit salesAchievableProduct production i n small portion so that low income earners can purchase itRealisticIncrease consumption of products by consumers at all income level in developing productTimelyBy the year 2012, there is an increase of 5 to 6 % in profitAssumptionsIn order to arrange this marketing plan, a few assumption to be made for Unilever in the future.Contamination of ingredients in productUnilever takes precaution in producing new products, if the safety of certain ingredients or product that is not sure, Unilever will not put it in the market for sale. This assure consumer that all products manufactured by Unilever are safe to use.Improve technology for better quality of productsTechnology emanation has assist in finding new ingredients for products and safety precaution measures are taken to improve the new discovery. Unilever will safely exercise central method with the product that is already in the market as a development of product quality. Hazardous product that defects product qualities and benefi ts will be disposed.StrategiesPersonal care for future sales growth and profitabilityUnilever has place the key to achieve sustainable profitable growth through its personal care business segment as it generate the fastest-growing business compared to other sector such as food and beverages. Personal care business refers to the products that are self managed, such as hair lave and skin care products. This is because the demand for these products in the market has been increasing, as well as the existing sales from this segment is satisfying. However, Unilevers greatest rival Procter Gamble (PG) for many years have been more innovative and creative in introducing new products. In the previous year in the personal care sale increase only by 1.4% to 11.30billion while overall turnover rise by 1.4% to 40.2 billion. In order for creating future sales growth, Unilever will focus more personal care segment for future sale growth and sustaining profit from increasing raw material cost. Graph below shows the revenue increment in Unilevers products line, including personal care segments.External Pressure and Organisational Restructuring richly cost of raw material, adverse exchange rates and macroeconomic worries such as politic and regulation of countries might affect the performance of Unilever. In order to secure generation of profit and sustaining raw material cost Unilever has come up with few strategies. Unilever has to reduce 20,000 jobs across its production division and combine its Personal administer and food sector into one category to reduce cost that will be delivered to consumer. Unilever has come up with room to Growth strategy that promises improvement in its performances. This strategy will help the organisation to restructure its two global divisions, Home Personal kick and Food into one division. This would effectively lower production costs that will be implied into price of the products and influence consumers consumption from price aspect. Price is a crucial matter to consumers due to economy fluctuation that will affect lower spending power.Unilever Marketing MixHere we will address the marketing fluff strategy of Unilever in that might boost their sale. Unilever has wide range of brand such as Home Personal Care products to food and drinks like Knorr and Lipton tea. We will now do the marketing intermingle of Sun silk because Unilevers most profitable line of product is personal care products. So below is the marketing mix of Sun silk from UnileverMarketing mixExplanationProductSunsilk is one of Unilevers famous brands under personal care product. It targets mainly womanhood by portraying the 21st century woman that is confident, charismatic, and get going attitude that doesnt wait for things to happen but achieve their goals by sheer hard work. Although the main target is woman but Sunsilk is used by many people of difference class and age group. In order to satisfy the needs of their consumer, Sunsilk has de veloped various kinds of shampoo and conditioner that suit the different kind of hair type. Sunsilk has manage to gain committal of consumers because of their undying effort in producing more innovative products and maintaining its quality through extensive chemical testing until it is truly safe.PlaceIn order for Sunsilk to be the number 1st choice for its consumer, they must distribute their products to all the people no matter where they are. Sunsilk has targeted retail outlets, malls, super market and any other stores as long they are easily access for consumers. The high consumer demand has shown that easy availability factor is very pregnant to reach out to the consumers.PriceAs the market leader in personal care products, Sunsilk is freely to set the market price. In order to satisfy the main goal of Unilever which is maximise profit , increase the sales and also increase in market share the price of product is an important factors that affect all of this. The research depa rtment determines the price of the products while taking account the affordability of consumers of different income level. Unilevers main competition which is Procter Gambles Pantene product has also come up with innovative products to gain the market share of Sunsilk. Fortunately, Sunsilk has the advantage to set the price of product by being the market leader in personal care products. Sunsilk has also take inflation into account, by maintaining unending profit margins.PromotionAdvertising and marketing strategy are the main tools for Sunsilk to push up their sales and awareness of their products. In order to promote their brands , Sunsilk has distributed flyers and free sachets at malls, retail outlets and also door to door campaigning. copper experts are also send to schools to check the hair type of people in one region and how can they improvise their products for such consumers. wanton gift hampers and free washes are also given to people to maintain the goodwill and main tain the momentum of brand loyalty. Sunsilk has also increase the awareness of people by using the growing trend of online advertising and communication network of people. Internet access has act as an online material to ensure that people does not escape the attention of Sunsilk. Television is another major communication access for consumer to keep the brand fresh in the mind of consumers and also to attract new consumers and breed interest in the usage of Sunsilk products.Forecast sales budget2009 ()million2010()million2011()million2012()millionTurnover39,82341,81443,90546,100Cost of Sales20,58020,99221,41121,840 percentage51.68%50.20%48.77%47.38%Operating Profit19,24320,82322,49324,260 part48.32%49.80%51.23%52.62%Operating Expenses14,22314,93415,68116,465Percent35.72%35.72%35.72%35.72%Profit5,0205,8886,8137,796Percent12.61%14.08%15.52%16.91%The increase in profit and operating profit has shown the sales profit of product sales from Unilevers top brand. The increment in operating expenses has shown that furtherance strategy has been to use to stay competitive in the market that Unilever venture into.