Date of submission
A Report on Unilever AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH
School of Business Administration Administration Economic Geography SEC: B Prepared and submitted by(Group:1) Course Instructor: Khan, Sohrab Rahman Name Islam Md Monirul Shanta Naudita Ghosh Shirin Jahan Ru Ruma Akhter Alam Md Rakibul Ohidullah MD Khan MD Saquib
ID 07-07684-1 07-08258-1 05-06127-3 07-07785-1 07-07679-1 07-07642-1
TABLE OF CONTENTS •
Acknowledgements
CHAPTER 1: Introduction 1.1About The Topic 1.2 History & Origin
CHAPTER 2: Description 2.1: Core Business 2.2: Sales Revenue and Value of Stocks 2.3: Manufacturing Globally 2.4: Major selling products 2.5: Market Share and Competition 2.6: SWOT analysis
CHAPTER 3: Conclusion
Attachments: References (1)
Acknowledgements
BISMILLAHHIR RAHMANIR RAHIM. At first we would like to great thank our Almighty Allah for h is i s b le l e ss s s in i n g, g, w h hii ch c h g av a v e u s p at a t ie i e nc n c e t o d o t hi hi s i m p o r t a n t r e s e a r c h s u c c e s s f u l l y. y.
First we want to thank our respective course t ea e a c h er e r M r S oh o h rraa b K h an a n f o r h is i s c oo - o pe p e r a t io io n . Despite his busy schedule, he has helped us a lot to p r ep e p a re r e t h e a s si s i g nm n m en e n t . O u r w h o l e r e s e a r c h w as as based on his proper guidance and framework. This study gave us a chance to look into the operation of a globally successful company-UNILEVER.
We also like to thank those web developers who develop the web sites which help us to make our concern.
Chapter 1: Introduction
1.1: About Unilever: U n i l e v e r i s a m ul ul ti -n at io na l c or po ra ti on , f or me d o f A n gl g l o -D - D u tc t c h p a re r e n t a g e t h at a t o w ns ns m an y o f t h e w or l d' s consumer product brands in foods, beverages, cleaning a g e n t s a n d p e rs r s o n a l c a r e p r o d uc u c t s . U n i l e v e r e m p l oy oy s n e a r l y 1 8 0, 0 , 0 00 0 0 p e op o p l e a n d h a d w o r l d w i d e r e v e nu nu e o f almost €40 billion in 2005. U n i l e v e r i s a d u a l - l i st e d c o m p a n y c o n s i s t i n g o f U n i l e v e r N V i n R ot te rd am , N et he rl an ds a nd U ni le ve r P LC i n London, England. This arrangement is similar to that of Reed Elsevier, and that of Royal Dutch Shell prior to t h e i r u n i f i e d s t ru r u c t u r e . B o th t h U n il i l e ve v e r c o mp m p a ni n i e s h a ve ve the same directors and effectively operate as a single b us u s in i n e s s . T he he c u rrrr en e n t n o n --ee x eecc ut u t i ve ve C ha ha i rm a n o f U n i l e v e r N . V. a n d P L C i s M ic ic ha el Tr es ch ow w hi l e Patrick Cescau is Group Chief Executive, who will retire at the end of 2008. Mr Paul Polman will succeed Patrick C e s c au a u a s G ro r o u p C h i e f E xe x e cu c u t iv i v ee.. T he h e c o m p a ny ny i s widely listed on the world's stock exchanges.
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1.2: History & Origin Unilever was created in 1930 by the merger of British s oa o a p m a k e r L e ve n d D u tc t c h m a rg r g a ri r i ne ne v e r B ro r o t h e r s a nd p r o d u c e r M a r ga ga r i n e U n i e . I t w a s a v e r y l o g i c a l m e r g e r , as palm oil was a major raw material for both margarines a n d s o a p s a n d c o u l d b e i m p o r t e d m o r e e ff ff ic i e n t l y i n larger quantities.
By 1980 soap and edible fats contributed just 40% of p ro fi ts , c om pa re d w it h a n o ri gi na l 9 0% . I n 1 98 4 t he company bought the brand Brooke Bond (maker of PG Tips tea). I n 1 9 8 7 U n i l e v e r s t r e n g t h e n e d i t s p o s it it i o n i n t h e w o r l d skin care market by acquiring Chesebrough-Ponds , t h e m a ke k e r o f R a g ú , P o n d ' s , A q u a - N e t, t, C u t ex N a i l P o l is h , P e p s o d e n t t o o t h p a s t e , a n d Va s e l i n e. I n 1 9 8 9 U n i l e v e r bought Calvin Klein Cosmetics, Fabergé, and Elizabeth Arden , b u t t h e l a t t e r w a s l a t e r s o l d ( i n 2 0 0 0 ) t o F F I Fragrances. In 1996, Unilever purchased Helene Curtis Industries, giving the company "a powerful new presence in the United States shampoo and deodorant mark et". The purchase brought Unilever the Suave and Finesse hairc a r e p r o d u c t b r a n d s a n d D e g r e e d e o d o r a nt nt b r a n d . I n 2 0 0 0 t h e c o m p a n y a b s o r be b e d t h e A me m e r i c a n b us us in es s Best h e n i n g i t s p r e se s e n c e i n N o r th th A m e r i ca a n d F o o d s , s t r e n g t he e x t e n d i n g i t s p o r t f o l i o o f f o o d s b r a nd n d s . I n a s i n gl gl e d a y i n A p r i l 2 0 0 0 , i t b o u g h t , i r o n i c a l l y, y, b o t h B e n & J e r r y ' s , [2] known for its calorie-rich ice creams, and Sli m Fast.
Chapter 2: Description
2.1: Core Business: Unilever’s core business is the food business. It is the no. 3 in the food business after Nestle and Kraft foods. A n g l o - D u tc h U n i l e v e r m a k e r o f K n o r r s o u p s , H e l l m a nn ' s mayonnaise and Skippy peanut b u t t e r, reported u n de d e r ly l y i n g 2 0 0 6 s a l e s g r ow o w t h o f 3 . 8 p e r c e n t i n 2 0 06 06 . W i t h i n t h a t, t, i t s f o o d s r o s e j u s t 2 . 9 p e rc e n t, w h i le s a l es i n t h e H P C u n i t , w h i c h s e l l s s o a p s a n d d e o d o r a n ts ts , g r e w 4.7 percent. "We expect that food growth will catch up eventually with that of HPC, but we are not giving a t i me m e s c a l e, e , " A l a n J o p e , g l ob o b a l f o od od s v ic e p re s id en t f or U n i l e v e r, r, s a i d a t t h e R e u t e r s F o o d S u m m i t i n C h i c a g o o n W e dn d n e sd s d aay y . H e h i gh g h l ig i g ht h t e d t wo w o p rro o d uc u c ts ts t h a t a r e s pe ar he ad in g i ts " vi ta li ty " p ro gr am t ow ar d h ea lt hi er e a t i n g - - a y og o g u r tt - b a s e d " o n e s h o t " d ri ri nk a im e d a t lowering cholesterol levels and a soya-based fruit drink f r o m S o u t h A m e ri c a . O n e - s h o t y o g u r t d r i n k s a r e n o w a 3 billion euro market in Europe, and Unilever intends to l au nc h a p ro du ct c on ta in in g p la nt s te ro ls , w hi ch a re c l a i me m e d t o l o w e r h a r m f u l c h o l e s t e ro ro l , o n M a y 2 1 i n t h e U.S. under its Promise brand at $1.00 a shot. It has also l a u n c h e d i t s S o ut u t h A m e r ic i c a n s o y a - b a s e d f r u i t d r in in k i n t h e U K u n de d e r t h e A d e z b r a n d , a n d t h i s a n d a E u ro r o p ea ea n Knorr Vie fruit-and-vegetable-shot drink are also under [6] consideration for launch into the U.S. market.
2 . 2 S a l e s R e v e n u e & Va Va l u e o f S t o c k s : Un nii l ev e v eerr ’s ’ s m i s s i o n i s t o a d d v it i t a li l i ty t y t o l i fe fe . I t i s estimated that people around the world in 150 countries u s e s U n i l e v e r p r o d u c t s 1 5 0 t i m e s a d a y. y. T h e 2 0 0 6 s a l e s revenue was 39.6 billion pounds. Which came from the A m er e r i ca c a s 1 3 . 8 b i l l i o n ( 3 6% 6 % ) , f r o m E u ro ro p e 1 5. 0 ( 38 % ) b i l l i o n a n d f r o m A s i a / A f ri c a 1 0 . 9 b i l l i o n p o u n d s ( 2 7 % ) . Unilever has approximately 206,000 employees working all over the world. By 2010, Unilever plans to improve its financi al standard by: • Ungearearing free cash flow in the period 2005-201 0 of €25-30 billion • Improvement in Return on Invested Capital • Underlying sales growth of 3-5% p.a. • Operating margin of over 15% by 201 0 after normal restructuring • Improving capital and tax efficiency Value of Stocks: U n i le v e r P L C o r d i n a r y s h a r e s a r e l i s t e d o n t h e L o n d o n Stock Exchange and as American Depositary Receipts in N e w Y o r k . E a c h A D R r e p r e s e n t s 1 u n d er e r l y i n g o r d i n a ry ry PLC share. There are 1 714 727 700 NV ordinary shares in issue, each with a nominal value of €0.16. There are 1 310 156 361 PLC ordinary shares in issue, each with a nominal value of 3 1/9 pence. The equalization agreement between NV and PLC is such that each NV o r d in a ry s h a re h a s t h e s a m e r i g h ts a n d b e n e f it s a s e a c h PLC ordinary share. ( U n i l e v er e r N V o rd rd in ar y s ha re s a re l is te d o n t he s to ck exchanges in Amsterdam and as New York shares on the N e w Yo Yo r k S t o c k E x c h a n g e . )
2.3: Manufacturing Globally: Unilever now owns about 400 brands, many of them local t h a t c a n o n ly l y b e f o u n d i n c e rt r t a i n c o un u n t ri r i e s . U n il i l e ve ve r markets its products to 150 countries. Unilever h as a p or tf ol io o f b ra nd s t ha t a re p op ul ar a cr os s t he globe - as well as regional products and local varieties of famous-name goods. This diversity comes from two of our key strengths; (1) Strong roots in local markets and first-hand knowledge of the local culture. (2)World-class b us in es s e xp er ti se a pp li ed i nt er na ti on al ly t o s er ve c o n s u m e r s e v e r y w h er er e . T h e b r a nd n d s f a l l a l m os os t entirely into three categories: Food & Beverages, Home and Personal Care. Food & Beverages: •
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A d e s o r A d e z — soya-based drinks A l s a — desserts and syrups A m o r a — French mayonnaise and dressings A n n a p u r n a — salt and wheat flour (India) B e c e l — also known as Flora/Promise ; healthaware: margarine, spreads, cooking oil,
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Du Darfst (Germany) E l m l e a — Pourable cream available in different varieties (UK) F a n a c o a — Mayonnaise, mustard, ketchup (Argentina) F i n d u s — frozen foods (Italy, UK, Scandinavia) F l o r a — margarine, light butter, jams
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M c C o l l i n s — tea (Peru) Mrs. Filbert's — ma rgarin e (USA) P a d d l e p o p — Icecream (Australia) P f a n n i — Bavarian pota to mix es Peperami PG Tips — t ea (UK) P h a s e — cooking oil P l a n t a — margarine P o p s i c l e — Frozen treats P o t N o o d l e —
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milk, fermented milk Ben and Jerry's — i ce cream B e s t F o o d s — mayonnaise, sandwich spreads, peanut butter and salad dressings B e r t o l l i — pasta sauces (ambient/chill ed & frozen) and margarine BiFi sausage-based snacks (Germany) B l u e B a n d — family-aware: margarine, bread, cream alternatives Bovril — beef extract Breyers — i ce cream Brooke Bond — t ea B r u — i n s t a n t coffee (India) Brummel & B r o w n — margarine B u s h e l l s — tea (Australia,
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F r u c o — ketchup, mayonnaise and condiments Fudgsicle G a l l o — o l i v e oil H e a r t b r a n d — ice cream (umbrella logo) H e l l m a n n ' s — mayonnaise I Can't Believe It's N o t B u t t e r — — margarine spread Imperial M a r g a r i n e — margarine J i f L e m o n & Lime Juice Kecap Bango — s o y a s a u c e in Indonesia K i s s a n — Ketchups Squashes and Jams (India and Pakistan) K l o n d i k e — Ice cream sandwiches Knorr (KnorrSuiza in Argentina) — sauces, stock cubes, ready-
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cup noodles P r o m i s e — Becel/Flora Ragú — pa sta sauces R a m a — margarine R o y a l — pastas (Philippines) R o y c o — stock cubes, non-MSG stock (only in Indonesia) Red Ros e Tea — t ea (Canada) S a n a — Margarine (Turkey) Saga — t ea (Poland) S a r i w a n g i — tea (Indonesia) Scottish B l e n d — tea S k i p p y — peanut butter S l i m · F a s t — diet products Sunlight Soap (Africa) Surf (Ireland, UK) Stork margarine Streets (ice cream)
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New Zealand) C a l v é — sauces, ketchup, mustard, mayonnaise, peanut butter Capitan F i n d u s — children's frozen food C o n i m e x — Asian spices (Netherlands) C o l m a n ' s — mustard C o n t i n e n t a l — side dishes
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Country Crock — ma rgarin e
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meals, meal kits, readysoups, frozen food range Lady's Choice — mayonnaise, peanut butter and sandwich spreads (Philippines) L a n - C h o o — tea (Australia/Ne w Zealand) Lao Cai Seasoning L i p t o n — t ea Lipton Ice Tea — rea dy-to drink tea (partnership with P e p s i C o) Lizano Sauce (Salsa Lizano) - Costa Rican condiment Lyons' - tea (Ireland) M a i l l e — French mustard M a i z e n a — corn starch M a z o l a — edible oils M a r m i t e —
Home and personal care brands:
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(Australia/Ne w Zealand) Turun sinappi — mu star d (Finland/Swed en) Unilever Foodsolutions — professional markets (food service) U n o x — soups, smoked sausages V a q u e i r o — cooking margarine, cooking oil Wa l l ' s i c e cream Wish-Bone salad dressing
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Ala laundry detergent (ArgentinaBrazil) Andrelon Aviance Axe deodorant,sh ower gel,bodyspra y (Lynx in the UK, Ireland and Australia) Ayush (India) Baba (East Europe) Brilhante laundry detergent (Brazil) Brut cologne Caress soap C i f cleaning Clear - antidandruff shampoo (Philippines, Vietnam, Indonesia, Pakistan, Poland, Hungary) Close-Up Toothpaste
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Dove - skin, hair, and deodorant Fair & Lovely skin care product (available in India and Malaysia) Finesse shampoo and conditioner (sold in 2006 to Lornamead Brands, Inc.) Gessy (Brazil) Glorix (Nederland) Good Morning (Soap Egypt) Impulse deodorant Lever 2000 Lifebuoy (Malaysia,Singa pore, Vietnam, Bangladesh, India, Pakistan, Indonesia) Linic - dandruff shampoo Lynx deodorant, men's Lyso Form home care (Italy) Lux - women's soap, shower gel, and lotions
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Pond's Q-Tips Rexona deodora nt Rinso Robijn softener Salon Selectiv es shampoo and conditio n e r (Sold in 2007 to River West Brands, Inc.) Sedal (known in Brazil as Seda) shampoo and conditio n e r Signal (dental care) S R -Dental Skip laundry detergen t Snuggle
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Sunsilk (Sedal in Latin America, Seda in Brazil) shampoo and conditioner Sure Omo laundry detergent Surf laundry detergent Swan (defunct) Thermasilk - shampoo and conditioner Timotei shampoo and conditioner Vaseline body lotion, shower gel, deodorant (Vasenol in Portugal, Brazil, Italy and Spain) Vibrance shampoo and
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Comfort Cream Silk conditioner (Philippines, Brazil, Kenya) Degree
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Domestos (Poland, Czech Republic, Hungary, Spain, Germany, Italy, Israel, France, Turkey)
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(Caress in the US) Minerva laundry and dishwasher detergents (Brazil) Mist (Soap Egypt) Pears Transparent Soap Pepsodent dental
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(Fofo in Brazil) fabric softner Suave Sun dishwas h e r Sunil
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conditioner Vi m (Banglades h, India, Pakistan) Vinólia soap (Brazil) Wisk laundry detergent Xedex Zhonghua Toothpaste
Persil (IE/UK/FR/NZ) [ 3 ]
2.4:Major Selling Products: O n e o f t h e l a rg r g e s t c o ns n s u me m e r g o o d s f i r m s i n t h e w o r l d, d, Unilever produces numerous brand name foods, personal care items, and home care products.
About 54 percent of revenues are generated in the foods sector, which includes such brands as Knorr s o u p m i x e s , b o u i l lo l o n s , a n d s e a s o n i n g s ; A mo mo ra , C a l vé vé , H e l l m a nn n n ' s, s, an d W i s hh - Bo Bo n e d r e s s in i n g s; s; B er e r t o l l i o li l i ve v e o i l a n d o t h er e r I t a l i a n f o o ds d s t u ff ff s; R a m a, a , B l u e B a n d , a n d C o u nt n t r y C r o ck c k m a rg r g a r in in e s ; B e c e l a n d F l o r a h e a r tt - h ea e a l th t h y f o od o d s ; H e ar ar tb r an d, Ben & Jerry's, and Breyers ice cream; Lipton tea; and Slim-Fast weight-management products.
Approximately 28 percent of sales come from the personal care area. Brands include the Lux female beauty line, Dove and Lifebuoy soap, Pond's skin c a re re p r o od d u cctt s , R e x on o n a d e od o d o rraa nt n t s , S u a ve ve a n d Sunsilk hair care items, Signal and Close Up oral c a r e p r o d u c t s , a n d t h e A x e m a l e g r o o m i n g l i n e, e, a s w e l l a s s u c h m i s c e l l an a n e ou o u s b r an an d s a s Q -Ti p s a n d Vaseline
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Unilever's third major sector is that of home care products, which is responsible for about 18 percent of turnover; brands include Omo, Skip, Wisk, Surf, a n d A l l l a un u n d r y d e t e rg r g e n t s , C o mf m f o r t a n d S n ug u g g le le f ab ri c c on di ti on er s a nd s of te ne rs , S un li gh t d is h detergents, and Cif and Domestos household cleaners. Unilever maintains more than 300 p ro du ct io n f ac il it ie s a ro un d t he w or ld a nd h as o p e r a t i on o n s i n m o r e t h an a n 1 0 0 c o un un tr i es . A bo u t 3 4 percent of revenues originate in Western Europe, 22 p e r ce c e n t i n N o r th t h A m e r i c a , 1 8 p e r ce ce n t i n t h e A s i a P ac a c i f ic i c r e g i o n , 1 3 p er e r c e n t i n L a t i n A me me ri ca , 9 p e r c e n t i n A f r i c a , t h e M i d d l e E a s t , a n d T u r k e y, y, a n d [4] 4 percent in central Europe/Russia.
2.5: Market share and competition: To p U n i l e v e r C o m p e t i t o r s :
Company Proctor & Gamble Kraft Foods Nestle
Location Cincinnati,OH Northfield, IL Ve v e y , S w i t z e r l a n d
Competitor Comparison Unilever C/G Foods
P & G Kraft Nestle To p S e g m e n t Consumer Food Food Care Dove Ti d e Mac & KitKat Top Brand Cheese CEO A . B u r g m a n s A . G . L e f l e y R . D e r o m e d i P. L e t m a t h e Stock per $66.03 $53.76 $30.70 $66.90 share Growth 15.55% 9.25% 8.2% 11 . 2 3 % Revenues $42.942m $28.2BL $31,010m $69.BL Revenue -11. 93% 19% 4.3% -1.93% Growth International 100+ 42 150+ 86 Business 3 5 5 6 Segments Employees 234000 11 0 0 0 0 10600 253000 (source: Hoovers business Intelligence guide)
2.6: SW OT Analysis:
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T h e o ve v e r al a l l e v aall ua u a t io i o n o f a c o mp m p aan n y ’s ’ s s tr t r en e n gt g t h s, s, weaknesses, opportunities, and threats is called SWOT a n a l y s i s . I n g e n er er a l , a b u s in e s s u n i t h a s t o m o ni t o r k e y m ac ro e n v i r o n me me nt f o rc es ( d e m o g r ap ap hi c- ec on om i c, t e c h n o l o g i c al a l , p o l it i t i c a l - l e g a l , a n d s o c i a l - c u l t ur ur a l ) a n d s ig i g ni n i fi f i c an an t m i c ro r o e nv n v i ro ro nm e n t a ct c t or or s ( c u st s t o m e rs rs , c o m p e t i t o r s , d i s t r i b ut u t o r s , s up u p p l i e r s ) t ha h a t a ff f f e c t i ts ts ability to earn profits. The business unit should set up a m a r k e t in i n g i n te t e l li l i ge g e nc n c e s y s t e m t o t r ac a c k t en en d s a n d important developments. For each trend or development, management needs to identify the associated opportunities and threats.
S.W.O.T
Strength Weakness Recognized as a Dual leadership g l o b a l c o m p a n y. y. N ot c on ne ct in g w it h Strong brand customer portfolio. Inefficient S t r o n g r e la l a t io io n sh ip management of brands with retailers I n a b i l i t y t o m a xi xi mi z e E c o n o m i es es o f s c a l e . acquisition Opportunities Threats Changing consumer Decrease in revenue preferences String competition Increasing need for To u g h e r business healthy products climate Exchange rates •
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3. Conclusion:
Our report only focuses on the UNILEVER plc. Our group did not able to actually go into the company. company. Therefore a large large part of the texts was extracted from web pages. For every text we copied, we have mentioned mentioned the exact references. references. By our analysis analysis we have found that, UNILEVER is globally successful company. One of the reasons for their success was however; they create brands for specific countries countries and regions. Products for example, found in south Americas will not be found in south Asian countries. Since difference in culture exists worldwide, the creation and supply of brands have to be taken seriou seriously sly.. UNILEV UNILEVER ER Bangla Banglades desh h is the market market leader leader in home home and person personal al care products. products. The UNILEVER UNILEVER products are able to gain customer customer satisfacti satisfaction on and trust. Their production and distribution is expanding rapidly.
References: 1. About Unilever.(n.d.) Unilever.(n.d.) Retrieved November 25, 2008, from
http://www.euronext.com/facts.htm 2. Green, P.S. (1996, February 15). ``Unilever Agrees to Buy Helen
Curtis”. New York Times, p.7. Retrived November 25, 2008,from ProQuest Historical Newspapers The New York Times (1851-2003) database. 3. Unilever Unilever.(20 .(2003).R 03).Retriv etrived ed November November 25, 2008, from from htttp://www.wikypedia.com.htm 4. Unilever at a glance: (2005-2007). (2005-2007). Retrieved November 25, 2008,
from http://www.unilever.com.htm 5. Competitor’s Competitor’s list for Unilever: (2006). Hoovers business Intelligence
guide. Retrieved November 25, 2008, from http://www.hoovers.com/unilever.htm 6. Jones.D.(2007, March 7). Unilever sees food sales growth
accelerating. Reporters notebook. Retrieved November 26, 2008, from http://www.Reuters.com/art http://www.Reuters.com/article/food.htm icle/food.htm
