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Business Strategies that set FMCG giant “Unilever” a class apart

The first name that comes to mind as soon as somebody talks about the FMCG industry is Unilever. A century ago no one would have predicted that a company founded by a margarine owner and a soapmaker would years later become one of the most established and famous companies and one of the most desirable employers in the world .

As of 2020, it has a turnover of around €50.724 billion and has approximately 155,000 employees worldwide. Apart from financially doing well, it has also progressed towards achieving sustainable development goals. Unilever is one of the few companies which have achieved gender equality in the workplace (as of 2020).

Transformation of a merged operation to a renowned brand

Unilever was established in September 1929 by merger of Dutch-based company Margarine Unie and British soapmaker Lever Brothers. The name Unilever came up by blending the names of both the companies. It has emerged as one of the largest consumer brands owning around 400 brands. It is primarily known for its diversification and has three main divisions. 

1) Food and Refreshments

2) Home Care

3) Beauty and Personal Care

It was only in the late 20th century; the organization increasingly diversified from making oils and fats products to expanding its operations worldwide. It has made numerous corporate acquisitions with brands like Dove, Omo, Knorr, Lipton, Lux, Magnum, Rexona/Degree, Sunsilk, etc. 

We're proud to say our brands are known for being widely used around the world. Check out some of our leading products: https://t.co/xRZwMakuFM pic.twitter.com/d91MmjipCw — Unilever Global Careers (@CareersUnilever) January 5, 2018

Unilever is famously known for its U-Shaped logo. It was only in 2004 that the current logo was established, which was designed by Wolff Olins. The current logo is made up of 25 icons which represents an aspect of the company. 

View this post on Instagram A post shared by Unilever Global #StaySafe (@unilever)

Unilever’s Marketing Strategy: A brand with a purpose

One of the best business strategies used by Unilever is that it integrates its global strategies with the local community to attract consumers who are attracted to the products that are famous worldwide; however, it can hold on to its local essence.

For example, Hindustan Unilever, a subsidiary of Unilever in India, has established itself as one of the most loved brands by the Indian audience. For decades it has been one of the top five most valuable companies in India . The reason for the success of HUL in the Indian market is its association with middle-class values and old-fashioned essence. Although it has been changing with time simultaneously, HUL’s philosophy has remained rooted in the purpose and values of the consumers.

While promoting these brands, Unilever also focuses on achieving the upper hand in communication to the audience without compromising these brands’ delivery.

For instance, the Surf Excel tagline has been ‘dirt is good and has portrayed it in various forms. At the same time, the case of Brooke Bond Red Label depicted how a social conversation over a cup of tea (or perhaps just a sip) could bring a change in the social views of the tea lover. Therefore, due to such creative methods, Unilever’s brands, despite being one of the oldests, have continued to gain consumers’ confidence.

Unilever: A company that keeps sustainability at the heart of its business strategy

As of 2020, Unilever celebrated 10 years of the Sustainable Living Plan . The company had committed to providing sustainable living for 8 billion people worldwide and decided to address social inequality and climate changes. The company did not neglect these goals despite the occurrence of COVID-19. 

Unilever worked on the longer-term implications of global trends for its business. Thus, the adoption of the Sustainable Living Plan has been a game-changer. It understood the importance of Sustainability and accepted it as a cultural transformation journey by integrating the USLP targets into its core working practices and procedures.

At the corporate level, Unilever has been committed to gender equality for a long time. As of 2020, 50% of managerial positions are held by women as compared 2010 to 38%. The organization had set a goal in 2010 to have a 50/50 split in the employment and added a women-leadership program . It collected, reviewed, and analyzed the data for the past 10-years and used it to battle gender stereotypes every month.

Unilever focuses on eliminating inequality at the global level by removing stereotypes in its advertising and showing how fathers or husbands could contribute to society 

Even during COVID-19 for 3-months, it did not stop working on its sustainable development plan and gender equality. It stated that organizations measuring inequality now would be better positioned to improve business and equality post-Covid. It made progress slowly over the years and was one of the few companies to achieve a balance. In 2020 Unilever won the ‘Catalyst Award’ for achieving gender equality 

As of 2021…..Unilever is using sustainability as an opportunity…

Unilever has been honored as being the most environmentally responsible companies and topped the list back in 2017.

In its latest goals, Unilever further added that it would reduce food waste from the factory to the shelf by half by 2025, which is five years earlier than what the organization has committed as part of the 10x20x30 (i.e 200 companies pledge to reduce wastage by 2030) initiative. It further added to increase the plant-based sales to around 1 billion euros ($1.2 billion) by the next 5-7years to reduce greenhouse gas emissions from traditional animal-based agriculture.

Unilever : Building a customer-centric business strategy

The organization has a competitive advantage due to its continuously enhancing values amongst consumers globally. Furthermore, it possesses a diversified portfolio of the top brands, thus achieving a unique position and innovating with the consumers’ preferences globally.

It has also taken up initiatives in its Research and Development, which are heavily funded to align with changing consumer needs. It has its R&D operations in China, India, UK, the US, and the Netherlands. Due to its manufacturing facilities in around 270 locations globally, Unilever has been able to cut costs and achieve expertise in its distribution channels.

Unilever has been able to establish itself as the most significant FMCG due to its direct-to-consumer business model, i.e. by extensively understanding the needs of the consumers. Unilever also started its marketing campaign by forming a relationship between the consumer and the brand.

The most crucial element in the business strategy of Unilever is the R&D in its product development, while being on par with its marketing activities. Unilever understood changing needs of the consumers and implemented them in their development. In 2017 alone, Unilever invested more than 900 million euros in its R&D. 

It’s not easy to be a market leader for a century and that too by winning the hearts of its consumers. With its dedicated sustainable yet customer-centric business strategy, Unilever would continue to do so.

-AMAZONPOLLY-ONLYWORDS-START-

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Kashish M is an Undergraduate student from the Middle East. Apart from listening songs and learning new languages and exploring different culture over time she developed interests in writing and gained interest in exploring different parts of the accounting/finance world.

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Unilever is a global company

Published by Edwina Barnett Modified over 8 years ago

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Unilever Sustainable Living Plan

Asda Sustainability A Retail Perspective Julian Walker-Palin Head of Corporate Sustainability.

Embedding Energy Management – Carbon introduction Insert site / company name and logo here Insert presenter/s names here This publication was funded by.

Food Industry Sustainability. Issues significantly affecting the Food Industry Sustainability 1.Obesity 2.Waste from packaging 3.Resources depleting 4.CO2.

Water. ©2008 DOMANI reputation & brand license to operate business continuity why?

CEMEX and Stabilised Pavements Ltd CO2 and resource efficiency January 2014.

Delivering consumer delight…. Social Responsibility Environmental Responsibility Sustainability … better quality of life for everyone, now and for generations.

Finnish Forest industry commitments on environmental and responsibility issues.

A Quarter of a Century of Responsible Growth Ramez Farag Company Communications Manager Middle-East & Pakistan.

ABOUT UNILEVER. About Unilever Unilever is one of the world’s leading suppliers of fast-moving consumer goods. We aim to provide people the world over.

CIRCULAR ECONOMY FOR PLASTICS INDUSTRY PERSPECTIVE MARCH 2015 LOUIS LINDENBERG THE DUTCH CENTRE.

Unleashing Innovation Dawn Rittenhouse Director, Sustainable Development.

Unilever’s Sustainable Living Plan & Sustainable Sourcing Keurmerken Jan Kees Vis Global Director Sustainable Sourcing Development.

Packaging Designed to Minimize Food Waste Risk Jean-Paul Duquet – BEL Group Global Eco-design Packaging Manager 22 Nov 2012 – Pack Vision Conference –

ARAMARK HIGHER EDUCATION GREENTHREAD PILLARS Environmental Stewardship We have a deep respect for and commitment to protecting and improving the environment.

P&G’s Sustainability Strategy Marina Franke Global Sustainability Corporate External Relations 20-Feb-2007.

2008 UTZ CERTIFIED - Good Inside assurance of sustainable quality.

Cradle to Cradle implementation at Desso

Market access requirements EU Engineering products General overview August 2014.

1 Intel’s Commitment to Sustainability Gary Niekerk June 13, 2011.

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Presentation on Unilever

Feb 18, 2014

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Presentation on Unilever. Overview of the company The company’s history The company’s purpose Brands, Financial Report. The company. 150 million times a day, someone somewhere chooses a Unilever product

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• largest seller
• familiar part
• business expertise
• worldwide turnover
• biggest brand

Presentation Transcript

Presentation on Unilever • Overview of the company • The company’s history • The company’s purpose • Brands, Financial Report

The company • 150 million times a day, someone somewhere chooses a Unilever product • Two key strengths: strong roots in local markets, world class business expertise applied internationally to serve consumers everywhere • Focusing on performance and productivity

History • Unilever was created in 1930: Lever Brothers+ Margarine Unie • In the thirties Unilever introduced improved technology to the business • Parent companies: Unilever NV, Unilever PLC • Corporate centres: London, Rotterdam

The purpose • To meet the everyday needs of people everywhere • To improve the quality of life with their products • To serve consumers in a unique and effective way

Foods • Knorr is Unilever’s biggest brand: 2.3 million sales in over 100 countries • Number one producer of frozen foods in Europe- Iglo • Leader in branded olive oil- Bertolli • Largest seller of packet tea- Lipton, Brooke Band

Home and Personal Care • Market leaders: Cif, Domestos, Omo, Skip • Global leader in products- Axe, Dove, Lux, Pond’s, Rexona, Sunsilk

Unilever today (2002) • Worldwide turnover: 49000 million Euro • Research and development: 1200 million Euro • Community programs: 69 million Euro

Finish the presentation • „No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily life.”

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Unilever SWOT Analysis & Recommendations

Unilever is a leading consumer goods business in the global market. This SWOT analysis highlights business strengths that ensure the company’s long-term success. The SWOT analysis model identifies the relevant strengths and weaknesses (internal strategic factors) and the opportunities and threats (external strategic factors). In this case, the SWOT analysis of Unilever shows significant opportunities for further international growth and expansion. The business is in a strong position to withstand the threats in its external environment. However, Unilever must consider all the factors outlined in this SWOT analysis to guide strategic formulation for global operations.

This SWOT analysis of Unilever depicts the conditions of the business and its external environment. These conditions require business decisions for achieving a strategic fit that makes the consumer goods company capable of fulfilling its business purpose. Strategies based on business strengths and market opportunities can boost business performance and bring the organization closer to the realization of Unilever’s corporate mission statement and corporate vision statement .

Unilever’s Strengths (Internal Strategic Factors)

Organizational and business strengths are identified in this section of the SWOT analysis of the consumer goods company. Strengths are internal strategic factors based on the company’s characteristics, such as human resources, production processes, organizational structure, and investments. The following are Unilever’s strengths:

• Strong brands
• Broad product mix
• Economies of scale
• Strong presence in the global consumer goods market

Unilever has some of the strongest brands in the consumer goods industry. This strength enables the company to penetrate markets and effectively compete against other firms. The broad product mix shows the extent of Unilever’s business growth. For example, the company has increased its product portfolio through years of mergers and acquisitions, leading to organizational growth and corresponding increases in revenues. On the other hand, economies of scale support the production efficiency necessary for competitive pricing strategies, as shown in Unilever’s marketing mix (4P) . Through years of international expansion, the company has also increased its market presence, which is a strength that reinforces brand popularity. The internal strategic factors in this section of the SWOT analysis of Unilever show strengths that the company can use to sustain global growth and success in the consumer goods market.

Unilever’s Weaknesses (Internal Strategic Factors)

Despite its strong market position, the consumer goods company has weaknesses that limit its potential growth. This section of the SWOT analysis presents the internal strategic factors that impose barriers to organizational and business development. The following are Unilever’s weaknesses:

• Imitable products
• Limited business diversification
• Dependence on retailers

One of Unilever’s weaknesses is the imitable nature of its products. For example, even though the company heavily invests in its product development processes, other firms can imitate some qualities of Dove and Rexona products. Also, despite its broad product mix, Unilever is weak because of limited diversification in businesses outside the consumer goods industry. Moreover, the company lacks a direct strong influence on consumers, considering that retailers are the ones who directly affect buyers. Thus, based on the internal strategic factors in this section of the SWOT analysis of Unilever, the weaknesses emphasize the importance of diversification, innovation, and enhanced marketing efforts.

Opportunities (External Strategic Factors)

Unilever must take advantage of growth opportunities in consumer goods markets around the world. This section of the SWOT analysis determines such opportunities or external strategic factors that can facilitate business development. The following are Unilever’s opportunities:

• Business diversification
• Product innovation for health
• Business enhancement for environmental conservation

Unilever has opportunities to diversify by entering businesses outside the consumer goods industry. Diversification reduces market-based risks and improves business resilience. On the other hand, product innovation can increase Unilever’s product attractiveness by addressing the needs of increasingly health-conscious consumers. Similarly, the company has an opportunity to make its business more sustainable and environmentally friendly to attract and retain environmentally conscious consumers. These opportunities require strategies for product development and business growth, which are addressed through Unilever’s generic strategy for competitive advantage and intensive strategies for growth . The external strategic factors in this section of the SWOT analysis of Unilever point to major opportunities to grow the business despite its weaknesses.

Threats (External Strategic Factors)

A variety of external factors can limit or reduce Unilever’s business performance. The SWOT analysis model considers these external strategic factors as threats to the company. The following are the threats to Unilever’s consumer goods business:

• Tough competitive rivalry
• Product imitation
• Increasing popularity of retailers’ house brands

Unilever faces tough competition, which is a threat based on the strengths of other firms in the industry. In the SWOT analysis model, competitors are a threat that can reduce the company’s market share and corresponding financial performance. As presented in the Five Forces analysis of Unilever , the company competes with multinational consumer goods firms, like Procter & Gamble , Colgate-Palmolive, and Johnson & Johnson. Considering its food products and BRU coffee, the company also competes with food and beverage businesses, such as PepsiCo , Coca-Cola, and Red Bull, as well as food-service firms that offer home-brew and instant coffee products, like McDonald’s , Dunkin’, and Starbucks . On the other hand, product imitation is a threat to Unilever. Imitation of the company’s products can occur in the form of other firms’ consumer goods that have similar characteristics. Moreover, retailers impose a threat by selling their own brands. These brands are known as house brands, store brands, or generic brands. For example, Costco uses Kirkland Signature as a house brand, just as Walmart and Amazon have their own house brands that compete with Unilever’s brands. Based on the external strategic factors in this section of the SWOT analysis, strategies must focus on improving the consumer goods company’s competitive advantages.

Key Points – SWOT Analysis of Unilever

This SWOT analysis of Unilever highlights internal and external factors that managers must include in strategy development. The weaknesses of limited business diversification and imitable nature of products are significant because they influence business stability and performance. In this regard, a recommendation is to diversify the multinational company through the acquisition of related firms that are not necessarily in the consumer goods industry. Also, Unilever needs to consider product innovation as an opportunity to address competition and imitation. Based on this SWOT analysis, the consumer goods company must use its strengths, such as economies of scale, for product innovation to protect the business against the major threats in its industry environment.

• Bocken, N. M., Harsch, A., & Weissbrod, I. (2022). Circular business models for the fastmoving consumer goods industry: Desirability, feasibility, and viability. Sustainable Production and Consumption, 30 , 799-814.
• Taherdoost, H., & Madanchian, M. (2021). Determination of business strategies using SWOT analysis; Planning and managing the organizational resources to enhance growth and profitability. Macro Management & Public Policies, 3 (1), 19-22.
• U.S. Department of Commerce – International Trade Administration – Consumer Goods Industry .
• Unilever – Our Approach .
• Unilever at a Glance .
• Unilever PLC – Form 20-F .
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Unilever PowerPoint Template

The free Unilever   PowerPoint Template has a blue background and Unilever logo that makes it look very professional. The template is a branded PPT template that is suitable for presentation about Unilever and its brand such as Dove, Cif, Knorr, Hellmann’s, Lipton, Axe, etc. Or, you can use it to tell a story about the history, business and marketing philosophy of this company, about its employees, founders, shares, advertising campaigns and plans for the future. This template can be used by students, teachers, companies, executives, speakers, brand managers, employees of this company and other presenters. Its simplicity and clearness make it the perfect background for business presentations about the Unilever operations around the world. If you want to quickly make a stunning presentation with a professional look this is the template for you. If you are looking for more free branded templates you can try to find it in our Brands and Companies Category or by browsing through labels such as company ,  business , blue  and so on.

How to Use It?

Now, you can download either a background to apply to an existing presentation, or PowerPoint template if you are just about to start to make your presentation. This PowerPoint template is very easy to use, there are various slide layouts that you can use to create a beautiful presentation. If you are not sure how to use it, you may check our free tutorial: How to Use PowerPoint Template . There are more free tutorials on our site that can help you to create professional presentations. You should also read some of our blog posts  that can be very useful for presenters, check it right now and impress your audience.

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