· web view2015. 8. 6. · introduction part: p. erformance: unilever. is a multi-national...

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Introduction part: Performance: Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the world’s consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs nearly 180,000 people and had worldwide revenue of almost €40 billion in 2005. Unilever is a dual-listed company consisting of UnileverNV in Rotterdam, Netherlands and Unilever PLC in London, England. This arrangement is similar to that of Reed Elsevier and that of Royal Dutch Shell prior to their unified structure. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Patrick Cescau is Group Chief Executive, who will retire at the end of 2008. Mr Paul Polman will succeed Patrick Cescau as Group Chief Executive. The company is widely listed on the world’s stock exchanges. Background of The Unilever company: Unilever began with British soap-maker company named Lever Brothers. Their revolutionary action in business was by introducing the Sunlight Soap in 1890s. That idea was from William Hesketh Lever, founder of Lever Brothers. This idea helped the Lever Brothers become the first company that help popularise cleanliness in Victorian England. Moreover, the product rapidly emulated globally after that it was a success in UK and made Lever Brothers obtained more business worldwide. One of the reasons of this success was the strategy from William that not only prioritize on selling the products but also focus on manufacturing them. On the other side, in 1872 Jurgens and Van den Bergh created a company that produces margarine. Since there were many competitors in the margarine industry in Dutch, in 1920s, Jurgen and Van de Berth decided to strengthen their company by joining another margarine manufacturer in Bohemia. In 1927, there were three companies including Jurgen and Van de Berth company which formed 1

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Page 1:   · Web view2015. 8. 6. · Introduction part: P. erformance: Unilever. is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the world’s consumer

Introduction part:Performance:Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the world’s consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs nearly 180,000 people and had worldwide revenue of almost €40 billion in 2005.

Unilever is a dual-listed company consisting of UnileverNV in Rotterdam, Netherlands and Unilever PLC in London, England. This arrangement is similar to that of Reed Elsevier and that of Royal Dutch Shell prior to their unified structure. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Patrick Cescau is Group Chief Executive, who will retire at the end of 2008. Mr Paul Polman will succeed Patrick Cescau as Group Chief Executive. The company is widely listed on the world’s stock exchanges.

Background of The Unilever company:Unilever began with British soap-maker company named Lever Brothers. Their revolutionary action in business was by introducing the Sunlight Soap in 1890s. That idea was from William Hesketh Lever, founder of Lever Brothers. This idea helped the Lever Brothers become the first company that help popularise cleanliness in Victorian England. Moreover, the product rapidly emulated globally after that it was a success in UK and made Lever Brothers obtained more business worldwide. One of the reasons of this success was the strategy from William that not only prioritize on selling the products but also focus on manufacturing them. On the other side, in 1872 Jurgens and Van den Bergh created a company that produces margarine. Since there were many competitors in the margarine industry in Dutch, in 1920s, Jurgen and Van de Berth decided to strengthen their company by joining another margarine manufacturer in Bohemia. In 1927, there were three companies including Jurgen and Van de Berth company which formed Margarine Unie located in Holl In 1930, the Lever Bros merged with the Margarine Unie and even though, an international merge was an unusual move at that time,  both of the two companies have the same vision that by doing this merge with strong global networks would create new opportunities. Finally, the name of "Unilever" was created by the merge of the companies. Not too long after Unilever was formed, they got a big problem which was that their raw material companies were reduced from 30% to 40% in the first year. As that problem started to attack, Unilever had to react quickly by building up an efficient system of control. In September of 1930, Unilever established the 'Special Committee' that was designed to stabilize British and Dutch operate and concern as an internal cabinet for the organization. Since William Lever's death in 1925, it was Frances D'Arcy Cooper who replaced him to become the chairmen of Lever Brothers. Cooper made several benefits for Unilever, one of his revolutionary action was that he led the various companies that included Unilever into one Anglo-Dutch

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companies. According to The Netherlands official UK site, "Anglo-Dutch Companies is the British and the Dutch historically joined forces to form some of the strongest companies in the world, and until now their position is still strong". In 1937, when the correlation between the profit-earning capabilities of the British and Dutch companies found itself overturned, it was Cooper that came to solve the problem by convincing the board of the necessity for restructuring.In the 1930s, Unilever continued to grow their business when they promoted their products in America Latin. To keep it growing, Unilever adapted a new strategy in 1940s by widening their business areas and create new areas such as particular food and chemical manufactures. Furthermore, Unilever recognized that there were something more important than widening their areas, it was the relationship between marketing and research that they must focus on. Therefore, Unilever expanded their operation by making association by two important actuations in US, those are Thomas J. Lipton company, manufacture of tea, and the Pepsodent brand of toothpaste in 1944. In 1957 Unilever continued their actions by associating with U.K. frozen food maker birds eye, and in 1961 with U.S. Ice cream novelty maker Good Humor.In the 1980s Unilever made a revolutionary restructuring by selling most of its subsidiary business to concentrate the company's core business. Eventually, foods, toiletries, detergents and special chemicals were the Unilever's core business. This restructuring also helped Unilever to make a collaboration with Chesebrought-Pond's in U.S. in 1986. That collaboration made a big impact to Unilever, their profit margin increased. Furthermore, Unilever bought Chesebrought-Pond in 1987.Nowadays, Unilever become the world's most consumed product brand in home care, personal care and food. In 2002, Unilever had a worldwide revenue around €48,760 million. Unilever has two main parenting companies, they are Unilever NV in Rotterdam and Netherland and Unilever PLC in London, UK. However, Unilever still has two major competitors named Nestlé and Procter & Gamble. Unilever has several worldwide products in foods such as Lipton, Knorr, Blue Band, Ben and Jerry, Walls, and Brooke bond. In home care, they have Surf, Sun, Radiant, Domestos and Skip. In personal care, they have Ponds, Vaseline, Rexona, Lux, Dove, Lifebuoy, Pepsodent, Sunsilk and Axe/Lyn Unilever is the company with the world's largest buyer of palm oil. They turn the palm oil material to their products like detergents, cosmetics, bio-fuel and soaps. Their actions by cutting down the palm oil of the most area in Kalimantan was slowly destroying habitat of Orang-utan, an endangered species which lived almost everywhere in the rainforest of Kalimantan. This action resulted in the extinction of the Orang-utan species in Kalimantan. An expected of two million acres of the rainforests in Kalimantan have been cut down annually. This action is also damaging Indonesia's rainforest, eventually leading to a severe climate change. Unilever created their products to help people in doing their daily life, but in fact they are also destroying other endangered lives. In 2008, Unilever was criticised by Greenpeace UK because of these acn November 2009, Unilever announced to cancelled and stop buying palm oil from Indonesian company, PT Smart for environmental reason. In April 2010, Unilever had secured GreenPalm certificates. GreenPalm endorsed By RSPO (Roundtable on Sustainable Palm Oil), Organization formed by several stakeholders in the palm oil industry, to protect the environmental impact of palm oil and endorse sustainable agriculture. These certificates have function to cover the supplies of its European, Australian and New Zealand businesses.Unilever's Mercury WasteIn 1983, Chesebrough Ponds Ltd, one of U.S. company

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bought an area near Kodaikanal. They relocated their thermometer-making factory that had been in Watertown, suburb of New York to this area. In 1987, Unilever bought Ponds and the thermometer-making factory in Kodaikanal and became the biggest facility in the world. Then, Hindustan Lever Limited (HLL), the subsidiary of Unilever which operates and located in India, took charge of the factory.Early 2001, there were 7,4 tonnes of mercury-contaminated wastes around Kodaikanal in Tamil Nadu found. Kodaikanal has beautiful lakes, perennially cool weather and rich forests which is why it became the most popular tourist destination in South India. After investigating the source of those mercury it was found to be from Hindustan Lever Limited factory. Mercury is a toxic metal that can harm human's liver and brain.  Once mercury come into the environment, it will be changed during natural method into a structure that works its way quickly through the food chain where it can contemplate to hazardously high levels. Mercury is the basic material to create thermometers.In March 2001, four hundred people from Factory workers' unions and local communities protested and complained about the unsafe waste disposal methods from Hindustan Lever Limited factory. They gave an ultimatum of either closing the factory or remove it from Kodaikanal areas. They also said since the mercury disposal happen in this area, it was destroying the Shola ecosystem of Western Ghats. After that incident, Unilever decided to postpone their thermometer production in Hindustan Lever Limited factory near Kodaikanal until they find a solution to the problem. However on June 21 2001, the Government of India ordered HLL to close the factory and ship the rest of the mercury waste to the U.S.Unilever Use Child Labour in IndiaIn India, Hindustan Lever Limited (HLL) has employed for expected number of 25,000 children, mostly girls in cotton seed production. They worked usually between ten and thirteen hours per day and they only got 40 Eurocents per day. Sometime, they are exposed to toxic pesticides during their work. The reason company prefer employed child than the adult was to save money in waging the labour. Usually, a child only receives 55% less than a man and 30 % less than a woman. One of their labour was Narasamma, 12 years old. She was a migrant who worked in cotton seed field for the last three years. She worked more than 12 hours per day with only two breaks. During work, she was regularly sprayed by pesticides and got ill after. However, she only earned Rs. 800 a month.In early 2003, many countries in Europe such as Germany, Netherlands and Ireland started do the campaign to stop Child labour. This campaign started from Germany, then to Netherlands and the campaign finished in Ireland. The main message from those campaigns was that school is the best place for children, so stop child labour. In may 2003, Unilever announced that they would solve the child labour problem in India. Unilever told Hindustan Lever Limited to start rejecting the use of child labourUnilever is one of most influential companies in the world by providing products that help people in their daily life and also supporting global economic growth. They improve their strategy to create products time by time until they meet customer requirements. That is why most of their product trustable and convenient to be used. Some survey showed that every houses in the world at least has one of Unilever product. This is showed that Unilever is very influential in human social life. Perhaps giving value to the brand is the best action that Unilever had done. However, Unilever made some environmental and social issues in their history. Many had protested what Unilever had done in the moment. In fact, Unilever is one of the companies which have been responsible for their actions. Unilever reacted quickly by fixing the problem.Unilever owns both of the toiletries companies Dove and

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Lynx. Soon after the release of Dove’s Real Beauty campaign in 2004 it was compared to Lynx’s style of advertising which gained Unilever scrutiny over its hypocritical and opposing ideas to advertising.

Dove: Dove describes itself as a company dedicated to "help ... women develop a positive relationship with the way they look – helping them raise their self-esteem and realize their full potential". (Dove, "Our Vision") Dove employs the use of advertising for their own products to display their messages of positive self-esteem. In September 2004 Dove created a Real Beauty campaign, focusing predominately on women of all shapes and colour. Later in 2007 this campaign furthered itself to include women of all ages. This campaign consisted mostly of advertisements, shown on television and popularised by the internet. Dove fell under scrutiny from the general public as they felt the Dove advertisements described the opinion that cellulite was still unsightly, and that women's aging process was something to be ashamed of.Lynx/Axe: Axe, Known as Lynx in the United Kingdom, the Republic of Ireland, Australia and New Zealand, is a toiletries brand marketed towards young men between the age of 16 and 24. It is marketed using double entendre and tongue in cheek humor, which 'suggests the men using it instantly become more attractive, with beautiful women falling at their feet.' (Poulter, 2011). Unlike Dove’s long running beauty campaign Lynx advertising often creates mini series’ of advertisements based around a singular product rather than communicating an overarching idea. This advertising campaign thrives on controversy. Using images which the company knows will receive complaints about garners the brand more free publicity and notoriety. A wide variety of these ads have been banned in countries around the world. In 2012 Lynx's 'Clean Balls' ad was banned. This ad designed for television, which gained popularity on the internet, shows an attractive young woman cleaning various sport balls. In 2011 in the UK Lynx's shower gel campaign was banned. The poster for Lynx shower gel showed a woman in a bikini under a shower at a beach, with the headline: "The cleaner you are the dirtier you get." The same year Lynx's Full control advertising campaign was banned. It related nervous sweating to premature ejaculation. In 2014 Lynx was forced to drop itAmerican Super Bowl ad for its 'Dry' Product.Unilever has been criticised for causing defore Unilever was targeted in 2008 by Greenpeace UK,which criticised the company for bufrom suppliers that are damaging Indonesia's rainforestsBy 2008, Indonesia was losing 2% of its remaining rainforest each year, having the fastest deforestation rate of any country. The United Nations Environmenta stated that palm oil plantations are the leading cause of deforestation in IndonesiaFurthermore, Indonesia was the third largest emitter of greenhouse gases largely due to the destruction of rainforests in for the palm oil industry, which contributed to 4% of global green house gas emissions.According to Gr, palm oil expansion was taking place with little oversight from central or local government as procedures for environmental impact assessment, land-use planning and ensuring a proper process for development of concessions were neglected.Plantations that were off-limits, by law, for palm oil plantations were being established as well as the illegal use

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of fire to clear forest areas was commonplaceUnilever, as a founding member (RSPO), responded by publicising its

. Vision, Mission & Goals

VisionUnilever products touch the lives of over 2 billion people every day – whether that’s through feeling great because they’ve got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

The fits pillars of Uniliver vision set out the long term direction for the company – where its want to go and how it is going to get there:

It work to create a better future every day

It help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

It will inspire people to take small everyday actions that can add up to a big difference for the world.

It will develop new ways of doing business with the aim of doubling the size of its company while reducing its environmental impact.

Uniliver has always believed in the power of its brands to improve the quality of people’s lives and in doing the right thing. As its business grows, so do its responsibilities. Uniliver recognize that global challenges such as climate change concern us all. Considering the wider impact of its actions is embedded in its values and is a fundamental part of who it is.

Mission

Uniliver mission is to add Vitality to life. It meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.

Uniliver see growing consumer need for:

a healthy lifestyle

more variety, quality, taste and enjoyment

time, as an increasingly precious commodity

Helping people to feel good, look good and get more out of life will enable us to meet these needs and expand its business.

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Unilever is in a unique position to understand the interrelationships between nutrition, hygiene and personal care. Uniliver can do this thanks to its strong science capability and its locally rooted consumer insight. It is by bringing all this together that Uniliver can strive to contribute to quality of life and wellbeing – adding vitality to life.

Goals

Unilever Unveils 50 Sustainability Goals

50 specific goals that include social and health-related targets under the Unilever Sustainable Living Plan released today. It expanded on a commitment made last year to double sales while reducing overall environmental impact.

The new plan gets far more specific. And progress on this “social mission” is now part of every Unilever initiative launch plan alongside sales and profit targets, Mr. Lewis said, president of Uniliver America.

Unilever isn’t the only company to recently step up environmental goals, but its targets are more ambitious than many, maybe even most. Procter & Gamble Co. also announced bigger sustainability goals for 2020 in September, targeting, among other things, a 20% reduction in packaging per consumer use, but Unilever’s goal is for an absolute

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Financial InformationView Ratios

Fiscal year is January-December. All values EUR millions. 2010 2011 2012

 Sales/Revenue 44.26B 46.47B 51.32B

 Cost of Goods Sold (COGS) incl. D&A 23.23B 28.12B 30.7B

COGS excluding D&A 22.24B 27.09B 29.5B

Depreciation & Amortization Expense 993M 1.03B 1.2B

Depreciation 819M 838M 986M

Amortization of Intangibles 174M 191M 213M

 Gross Income 21.03B 18.35B 20.62B

2010 2011 2012

 SG&A Expense 14.41B 11.45B 13.45B

Research & Development 928M 1.01B 1B

Other SG&A 13.49B 10.44B 12.45B

Other Operating Expense (281M) 0 0

Unusual Expense 1.35B 1.07B 19M

EBIT after Unusual Expense (1.35B) (1.07B) (19M)

Non Operating Income/Expense 878M 738M (332M)

Non-Operating Interest Income 77M 92M 136M

Equity in Affiliates (Pretax) - - -

 Interest Expense 485M 531M 524M

Gross Interest Expense 485M 531M 524M

Interest Capitalized 0 0 0

 Pretax Income 6.02B 6.13B 6.43B

Income Tax 1.53B 1.62B 1.7B

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2010 2011 2012

Income Tax - Current Domestic 1.39B 1.48B 1.99B

Income Tax - Current Foreign 0 - 0

Income Tax - Deferred Domestic 143M 144M (297M)

Income Tax - Deferred Foreign 0 - 0

Income Tax Credits 0 - 0

Equity in Affiliates 111M 113M 105M

Other After Tax Income (Expense) 0 0 -

Consolidated Net Income 4.6B 4.62B 4.84B

Minority Interest Expense 354M 371M 468M

 Net Income 4.24B 4.25B 4.37B

Extraordinaries & Discontinued Operations 0 0 0

Extra Items & Gain/Loss Sale Of Assets 0 0 0

Cumulative Effect - Accounting Chg - - -

Discontinued Operations 0 0 0

Net Income After Extraordinaries 4.24B 4.25B 4.37B

Preferred Dividends 0 0 0

Net Income Available to Common 4.24B 4.25B 4.37B

 EPS (Basic) 1.51 1.51 1.54

Basic Shares Outstanding 2.81B 2.82B 2.83B

 EPS (Diluted) 1.46 1.46 1.50

Diluted Shares Outstanding

Mr. Harish Marwari

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Mr. Harish Marwani - Chairman

Mr. Harish Marwani (60) assumed charge as the Non-Executive Chairman of the Company with effect from 1st July, 2005.

chairman

Mr. Manwani joined the Company in 1976. He joined the Board of the Company in 1995 as a Director responsible for the Personal Products business. In addition, he held regional responsibility as the Category Leader for Personal Products for the then Central Asia & Middle East (CAME) Group.In 2000, Mr. Manwani moved to UK as Senior Vice President for the Global Hair Care and Oral Care Categories and in early 2001, he was appointed as President - Home & Personal Care (HPC), Latin America Business Group. He has also served as the Chairman of Unilever’s Latin America Advisory Council. In 2004, he was appointed President and CEO of the HPC North America Business Group and in April 2005 was elevated to the Unilever Executive as the President - Asia & Africa and the region was later extended to include Central and Eastern Europe. Mr. Manwani was appointed Chief Operating Officer of Unilever in June 2011 and subsequently retired from Unilever as the COO on December 31, 2014.In 2008, Mr. Manwani received the CNBC Asia Business Leader of the Year Award and as a part of the Singapore National Day Awards 2012, Mr. Manwani was conferred the Public Service Medal (Friends of Singapore) by the SingapoGovernment.Mr. Manwani is an Honours Graduate from the Mumbai University and holds a Master Degree in Management Studies. He has also attended the Advanced Management Programme (AMP) at Harvard Business School.Mr. Manwani is a member of the Nomination and Remuneration Committee of the Company.

Mr. Pradeep Banerjee

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Mr Pradeep Banerjee - Executive Director, Supply Chain

Mr. Pradeep Banerjee (55) joined the Company as a Management Trainee in 1980.

Executive Director, Supply Chain

Mr. Pradeep Banerjee (55) joined the Company as a Management Trainee in 1980. He has held a series of assignments in Supply Chain, Research & Development and Categories. Mr. Banerjee became the Vice President - Technical (Home & Personal Care) in 2003 and later moved to UK in 2005 as Vice President - Global Supply Chain for Personal Care Category. He served as the Vice President for Global Procurement in Singapore.Mr. Banerjee was appointed as Executive Director - Supply Chain of the Company in March 2010. He holds a Bachelor degree in Engineering (Chemical) from IIT Delhi.

 

Mr. Aditya Narayan

Mr. Aditya Narayan - Independent Director

Mr. Aditya Narayan (62) began his career as a Management Trainee with ICI India Limited (now Akzo Nobel India Limited) in 1973.

Independent Director

Mr. Aditya Narayan (62) began his career as a Management Trainee with ICI India Limited (now Akzo Nobel India Limited) in 1973. He grew through diverse functions and businesses including a role as a Corporate Planning Manager at ICI Group HQ in London. He served as the Managing Director of ICI India during 1996 - 2003 and then as its Non-Executive Chairman over 2003 - 2010. He also served as the President and CEO of BHP Billiton India during 2005 - 2009.Mr. Narayan is a B. Tech. from IIT Kanpur and also has formal qualifications in Law. He was a Fellow in Interdisciplinary Sciences

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at the University of Rochester, USA. He was a Commonwealth Scholar at the Manchester Business School in 1991 and a Fellow at the Aspen Institute, Colorado, USA in 1998.Mr. Narayan joined the Board of the Company as an Independent Director in 2001. He is the Chairman of the Audit Committee and a Member of the Nomination and Remuneration Committee and Corporate Social Responsibility Committee of the Company.

Mr. S. Ramadorai

Mr. S. Ramadorai - Independent Director

Mr. S. Ramadorai (69) has been in public service since February 2011, currently acting as Chairman of National Skill Development Agency (NSDA) in the rank of a Cabinet Minister.

Independent Director

Mr. S. Ramadorai (69) has been in public service since February 2011, currently acting as Chairman of National Skill Development Agency (NSDA) in the rank of a Cabinet Minister. The NSDA is a newly formed autonomous body which will coordinate and harmonise the skill development efforts of the Government and the private sector to achieve the skilling targets of the nation. He is also Chairman of the National Skill

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Development Corporation (NSDC), a Public Private Partnership arm of the Government of India for creating large, for-profit vocational institutions. Mr. Ramadorai continues as the Vice Chairman of Tata Consultancy Services Limited.In recognition of Mr. Ramadorai’s commitment and dedication to the IT industry he was awarded the Padma Bhushan, India’s third highest civilian honour, in January 2006. In April 2009, he was awarded the CBE (Commander of the Order of the British Empire) by Her Majesty Queen Elizabeth II for his contribution to the Indo - British economic relations.Mr. Ramadorai’s academic credentials include a Bachelor degree in Physics from Delhi University, a Bachelor of Engineering, degree in Electronics and Telecommunications from Indian Institute of Science, Bengaluru and a Master degree in Computer Science from the University of California, USA. Mr. Ramadorai attended the MIT Sloan School of Management’s highly acclaimed Senior Executive Development Programme .

Mr. O. P. Bhatt

 

Mr. O. P. Bhatt - Independent Director

Mr. O. P. Bhatt (63) is the former Chairman of SBI (State Bank of India). In the 36 years that Mr. Bhatt served at SBI, he worked on several important national and international assignments.

Independent Director

Mr. O. P. Bhatt (63) is the former Chairman of SBI (State Bank of India). In the 36 years that Mr. Bhatt served at SBI, he worked on several important national and international assignments. Mr. Bhatt led SBI through challenging times by capitalising on the bank’s strengths. As Chairman of SBI, he was heading the largest financial group in India, comprising, in addition to SBI, seven associate banks, five international banking subsidiaries and nine financial services companies in India. Under his leadership, SBI rose on the Global List rankings of Fortune 500. Mr. Bhatt was nominated ‘Banker of the

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Year’ by Business Standard and CNN – IBN Indian of the Year for Business in 2007. Mr. Bhatt was Chairman of the Indian Banks’ Association. He has Mr. Bhatt was Chairman of the Indian Banks’ Association. He has also been a part of India’s eco-diplomacy as member of the Indo - US, Indo - Russia and Indo-French CEOs Forum. Presently, he is the Governor on the Board of Centre for Creative Leadership, USA.Mr. Bhatt holds a Graduate degree in Physics and a Post Graduate degree in English literature (Gold Medal).Mr. Bhatt was appointed as an Independent Director on the Board of the Company in December 2011. He is a Member of the Audit Committee and Nomination and Remuneration Committee of the Company. He is the Chairman of the Stakeholders’ Relationship Committee and Corporate Social Responsibility Committee of the Company.  

Dr. Sanjiv Misra

Dr. Sanjiv Misra - Independent Director

Dr. Sanjiv Misra (66) is a retired Indian Administrative Services (IAS) officer and a former member of the 13th Finance Commission, a constitutional position with the rank of a Minister of State.

.

Independent Director

Dr. Sanjiv Misra (66) is a retired Indian Administrative Services (IAS) officer and a former member of the 13th Finance Commission, a constitutional position with the rank of a Minister of State. Prior to joining the Finance Commission, Dr. Misra has served in a wide range of key positions in the Federal and State Governments, including as Managing Director of the Gujarat Industrial Development Corporation and stints at senior levels in the Government of India in the Cabinet Office, the Ministry of Petroleum, the Ministry of Health & Family Welfare and the Ministry of Finance. He served as a Secretary in the Ministry of Finance till his superannuation.Dr. Misra has represented India in various international conferences, seminars and negotiations. Till recently, Dr. Misra was a Member of the Advisory Council of the Asian Development Bank Institute,

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Tokyo. He was also a member of the Committee on Fiscal Consolidation (Kelkar Committee) set up by the Finance Minister in August 2012 to chart out a road map for fiscal consolidation for the Indian economy.Dr. Misra graduated in Economics from St. Stephen’s College, Delhi. He has a Master’s degree in Economics from the Delhi School of Economics, a Master’s degree in Public Administration from John F Kennedy School of Government, Harvard University, USA and a Ph. D. from the Jawaharlal Nehru University, New Delhi. In recognition of exceptional academic strengths and leadership qualities, Dr. Misra was designated as Lucius N Littauer Fellow of 1987 at Harvard University.

Ms. Kalpana Morparia

Ms. Kalpana Morparia - Independent Director

Ms. Kalpana Morparia (65) is Chief Executive Officer of J.P. Morgan, India. Ms. Kalpana leads each of the firm's lines of business – Corporate & Investment Banking and Asset Management.

Independent Director

Ms. Kalpana Morparia (65) is Chief Executive Officer of J.P. Morgan, India. Ms. Kalpana leads each of the firm's lines of business – Corporate & Investment Banking and Asset Management. She also has responsibility for Service Groups operating in India, including Global Research, Finance, Technology and Operations. Internationally, Ms. Kalpana is a member of J.P. Morgan’s Asia Pacific Management Committee.Prior to joining J.P. Morgan India, Ms. Kalpana served as Vice Chair on the Boards of ICICI Group Companies. She was a Joint Managing Director of ICICI Group from 2001 to 2007.  She had been with the ICICI Group since 1975.A graduate in law from Bombay University, Ms. Kalpana has served on several committees constituted by the Government of India.  She has also been recognized by several International & National media for her role as one of the leading women professionals. Ms. Kalpana serves as an Independent director on the Boards of Dr. Reddy’s Lab. Ltd., Bennett, Coleman &

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Co. Ltd, Philip Morris International Inc., CMC Limited and Non-Executive Director on JPMorgan Asset Management India Private

Mr. Sanjiv Mehta

Mr. Sanjiv Mehta - CEO and Managing Director

Mr. Sanjiv Mehta (53) joined the Board of the Company in October 2013. He is also the Executive Vice President for Unilever in South Asia and a member of Unilever’s Global Market Executive.

CEO and Managing Director

Mr. Mehta joined Unilever in October 1992. He has led several Unilever businesses across South Asia, South East Asia and Middle East. He was appointed Chairman and Managing Director of Unilever Bangladesh in 2002. In 2007, he was appointed as Chairman and CEO of Unilever Philippines. In 2008, he took up responsibility as the Chairman of Unilever North Africa and Middle East (NAME), leading a multi country organisation spanning 20 countries in the region.During his tenure as the head of various Unilever Companies, the business achieved significant success accelerating both growth and profitability. Importantly, he has been instrumental in building leadership talent and substantially strengthening organisational capabilities.Before joining Unilever, Mr. Mehta worked for Union Carbide India. He is a Commerce graduate and a Chartered Accountant. He has also completed Advanced Management Program from Harvard Business School.He is a Member of the Nomination and Remuneration Committee, Stakeholders’ Relationship Committee and Corporate Social Responsibility Committee of the Company.

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Sangita Reddy

Sangita Reddy

For over 20 years, Ms. Sangita Reddy has been a pioneer in multiple segments of the healthcare sector. Ms. Reddy is Executive Director, Operations, Apollo Hospitals Group, the largest hospital network in Asia with over 9000 beds across 44 locations, and over 18 million patients from 55 countries.In addition, Ms. Reddy is managing director of Apollo Hospitals, Hyderabad, Asia’s first Health City to introduce a multidimensional, holistic healthcare system that is seen as a revolutionary model in healthcare delivery.Ms. Reddy is also managing director of Apollo Health Street. Under her stewardship, Apollo has become a leading offshore services firm, providing consultancy to some of the largest US payers and providers. As founding president of Apollo Philanthropy, Ms. Reddy has also championed a series of charitable initiatives: Save A Child’s Heart(SACH) to help children from economically-underprivileged sections of society.Ms. Reddy also led the largest Third Party Administrator in the Indian market that services

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over 7 million members through its network of 27,000 hospitals. Ms. Reddy is a member of the Rockefeller Working Group and works with the Private Healthcare Development Council. Ms. Reddy is also director of AHIL, PCR Investments Limited, Apollo.

Mark W.Hinkley

Mark W. Hinkley (Chair)

Mark Hinkley served as Executive Vice President of OdysseyRe until his retirement in 2007Previously he had major responsibilities with Transamerica (later TIG), Skandia America, Trenwick America, and GeneralRe, including senior management roles in corporate marketing, communications, and business development, and specializing in reinsurance products. He was Director of Treaty Operations for Skandia America and Director and Co-founder of Trenwick Group, Limited.He currently serves as President of the Board of Music for People, a non-profit musical training organization. He is also a member of the Advisory Board of Outward Bound. He has also been Chairman of the Finance Committee, Clearpool, Inc (Urban Charter Schools and Camp), and President of the Angus Robinson Jr. Memorial Foundation (scholarships).He is a graduate of Yale University and Kent School, and served as a submarine officer

in the U.S. Navy. He has a daughter and a son, and resides in Charlest:

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CHALLENGE BRINGS REWARDThe scope and variety of our marketing activity is huge. Working on great categories and brands in a competitive environment that change all the time, the pursuit of market share and volume growth is a challenging and rewarding role.EXPERT KNOWLEDGEMarketing at Unilever Bangladesh offers many opportunities. To engage closely with consumers understanding their preferences and needs. To operate at a global, regional and local level across a broad range of products. To experience world-class professional development and acquire leading edge skills. To lead assignments that builds business and brand equity.BRAND BUILDINGHere we translate the global visions on a brand (includes brand communications, innovation and renovation) into a local market context, plan practical activity and make sure those plans are executed flawlessly. Through leading Bangladesh’s operations, this team’s job is to deliver market share and revenue.THE DESTINATIONUnilever is a destination for outstanding marketers and we attract the very best. In an organization that values creativity, plays to individual's strengths and allows people to be themselves, our aim is to maintain highly-skilled teams with a wealth of experience. With a portfolio of leading brands in Bangladesh, we offer exceptional career opportunities for marketers.

Unilever CompetitorsOne is a lonely number, unless you're Unilever. A top maker of packaged consumer goods worldwide, Unilever products are sold in more than 190 countries throughout Africa, Asia, Latin America, the Middle East, North America, and Western Europe. The company's offerings span several categories, including savory, dressings, and spreads; ice cream and beverages; personal care; and home care. Unilever's portfolio boasts a dozen brands that each ring up more than €1 billion annually. Best sellers include Hellmann's (mayonnaise), Knorr (soups), Lipton (tea), Dove and Lux (soaps), and Sunsilk (hair care). Unilever is the operating arm of Netherlands-basedUnilever N.V. and UK-based Unilever PLC.

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Product and service

This software is used for tracking of product which are produced at Factory. Each product have a unique barcode generated by the software and stamped on the packet. This code is read by a barcode reader and uploaded in a web server. The product further scanned by the Barcode reader when it is delivered to a particular Depot. Further Data is uploaded into web server and the software generates required MIS Reports for Management to make decision.About Unilever Bangladesh:Over the the last four decades, Unilever Bangladesh has been constantly bringing new and world-class products for the Bangladeshi people. Over 90% of the country’s households use one or more of Unilever's products.

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Unilever Company ProfileOne is a lonely number, unless you're Unilever. A top maker of packaged consumer goods worldwide, Unilever products are sold in more than 190 countries throughout Africa, Asia, Latin America, the Middle East, North America, and Western Europe. The company's offerings span several categories, including savory, dressings, and spreads; ice cream and beverages; personal care; and home care. Unilever's portfolio boasts a dozen brands that each ring up more than €1 billion annually. Best sellers include Hellmann's (mayonnaise), Knorr (soups), Lipton (tea), Dove and Lux (soaps), and Sunsilk (hair care). Unilever is the operating arm of Netherlands-based Unilever N.V. and UK-based Unilever PLC

Origin of report

Since practical orientation is an integral part of the BBA program, I tried to expose real life performance of Uniliver by preparing this report.

To prepare this report I have come across with different information of the Uniliver.

From the collected information I understand the company’s activities in the market as Uniliverll as in their internal preparation for marketing and others activities.

I expect that this report will fulfill the requirement of BBA program and provide a clear idea about the Uniliver activities and other multi-national company’s effort in the Bangladesh.

Thus, Uniliver can get deep understand of actual situation of MN’s company’s activities by analyzing their exposed strategy .

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ObjectiveThis Study is intended to analyze marketing strategies used by Unilever Bangladesh Ltd and globe.

The main purpose of the study is to find what strategies the company uses to market its products and brands worldwide; the positive and negative aspects of those strategies.

The report further analyzes the position of Unilever Bangladesh Ltd and globe in the several industries in comparison to its competitors.

Specific objective:To know about Uniliver and Uniliver Bangladesh.

To develop SOWT analysis of Uniliver Bangladesh.

To know about Uniliver’s strategy regarding product, price,place and promotion.

To identify the segmentation,targeting and positioning strategy used by Uniliver Bangladesh.

To develop some recoendation for further improvement in Marketing strategy of Uniliver Bangladesh.

Methodology of this report

For accessibility and availability of information I have chosen to work on the Marketing strategies of Unilever Bangladesh Ltd and globe. As the company operates in the market with a huge number of products in different industries, I have decided to focus on one of their world wide successful strategy on providing data. Most of the information used in this report is from secondary sources. The main source of information was the Uniliver’s website. In addition information will be collected from focus group discussion,depth interview and survey.

Primary Sources:

Face to face conversation with the Uniliver’s people

Customer opinion collection through survey.

Collection of data related with Customer satisfaction through survey.

Miscellaneous Book Reading.

Secondary Sources:

Annual Reports of Uniliver

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Various types of Website

Different research report.

Different Newspapers, Articles, Journals and Publication.

Sample Size:

I have collected data from 5 upper level employee through depth interview and 100 Customer for survey.

Sampling Technique:

In case of survey simple random sampling was used .

In case of depth interview snowball sampling was used.

Data analysis:

I used Microsoft excel to analyze the collected data and get the proper meaning.I used also graph,picture to show and analyze the data.

For accessibility and availability of information I have chosen to work on the strategies of Unilever Bangladesh Ltd and globe. As the company operates in the market with a huge number of products in different industries, I have decided to focus on one of their world wide successful strategy on providing data. Most of the information used in this report is from secondary sitces. The main sitsce of information was the Uniliverbsite. In addition information was also collected from focus group discussion.

1.4 Limitation

To conduct this study sheer experiences are needed. But I have lack of those.

As like-

The Data was not available about company.

Without practical work experience it was difficult to do work.

Confidential information are not exposed in Bangladesh.

It was difficult to gather sufficient information due to limitation of time.

It was also difficult to obtain proper information from respondents because of their busy schedule.

Lack of Money

After all within time limited it is not possible learn and understand all the activities of MN’s company like Uniliver.

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2.2.2 Key Dates:

1872: Two Dutch firms, Jurgens and Van den Bergh, begin commercial production of margarine.1885: William Hesketh Lever establishes soap factory in Warrington, marking the

beginnings of Lever Brothers.

1908: Jurgens and Van den Bergh pool their interests.

1914: Lever begins producing margarine at the request of the British government.1927: Jurgens and Van den Bergh create dual-structured Margarine Union Limited and Margarine Unie N.V.

1929: Margarine Union/Margarine Unie merges with Lever Brothers to create Unilever, with dual Anglo-Dutch structure.

1930: Special committee is established as a board of directors over the British and Dutch Unilever holding companies.

1937: Reorganization equalizes the assets of the Dutch and the British groups of Unilever; Thomas J. Lipton Company, U.S. manufacturer of tea, is acquired.1944: The U.S. toothpaste brand Pepsodent is acquired.

1957: Company acquires U.K. frozen foods maker Birds Eye.

1961:U.S. ice cream novelty maker Good Humor is acquired.

1984: Buying spree begins that will last until 1988 and result in about 80 companies being acquired; Brooke Bond, the leading European tea company, is acquired through hostile takeover.

1986: Company acquires Chesebrough-Pond’s, its largest purchase to date.

1989: The acquisition of three companies, including Fabergé Inc., makes the company a major player in the world perfume and cosmetics industry.

1994: The launch of a new laundry detergent in Europe turns into a public relations disaster when tests reveal that it can damage clothes under certain conditions.1996: Fundamental management reorganization is launched, including the replacing of the special committee with a seven-member executive committee.

1997: Specialty chemicals operations are sold to Imperial Chemical Industries PLC for about US$8 billion.

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  Food and beverages Ades or Adez — soya-based drinks Alsa — desserts and syrups Amora — French mayonnaise and dressings Amino — dehydrated soup (Poland) Annapurna — salt and wheat flits (India) Bakers Joy – Non stick baking spray Becel — also known as Flora/Promise;

health-aware: margarine, spreads, cooking oil, milk, fermented milk

Ben & Jerry’s — ice cream Best Foods — mayonnaise, sandwich

spreads, peanut butter and salad dressings Bertolli — pasta sauces (ambient/chilled &

frozen) and margarine BiFi — sausage-based snacks (Germany) Blue Band — family-aware: margarine,

bread, cream alternatives Bovril — beef extract Breyers — ice cream Brooke Bond — tea Bru — instant coffee (India) Brummel & Brown — margarine Bushells — tea (Australia, New Zealand) Calvé — sauces, ketchup, mustard,

mayonnaise, peanut butter Chicken Tonight – Unilivert sauces range Choysa – Tea, marketed mainly in Australia

and New Zealand Conimex — Asian spices (Netherlands) Colman’s — mustard,condiments, packet

sauces & OK Fruity Sauce Continental — side dishes Country Crock — margarine Delma — margarine (Poland) Du Darfst (Germany) Elmlea — Pitsable artificial cream available

in different varieties (UK) Fanacoa — Mayonnaise, mustard, ketchup

(Argentina) Findus — frozen foods (Italy, UK,

Scandinavia) Flora — margarine, light butter, jams Fruco — ketchup, mayonnaise and

condiments Fudgsicle

Lady’s Choice — mayonnaise, peanut butter and sandwich spreads (Philippines, Malaysia)

Lan-Choo — tea (Australia/New Zealand) Lao Cai Seasoning Lipton — tea Lipton Ice Tea — ready-to-drink tea

(partnership with PepsiCo) Lizano Sauce (Salsa Lizano) — Costa Rican

condiment Lyons’ — tea (Ireland) Maille — French mustard Maizena — corn starch Marmite — yeast extract spread (except in

Australia and New Zealand, called Its Mate) McCollins — tea (Peru) Mrs Dash – Seasonings range Molly McButter Mrs. Filbert’s — margarine (USA) Paddle pop — Ice cream (Australia,

Indonesia, Malaysia [incorporated with Wall’s])

Pfanni — Bavarian potato mixes

Peperami — Sausage snacks PG Tips — tea (UK) Phase — cooking oil Planta — margarine Popsicle — Frozen treats Pot Noodle — cup noodles Promise — Becel/Flora Ragú — pasta sauces Rama — margarine Royal — pastas (Philippines) Royco — stock cubes, non-MSG stock (only

in Indonesia) Red Rose Tea — tea (Canada) Sana — Margarine (Turkey) Saga — tea (Poland) Sariwangi — tea (Indonesia) Scottish Blend — tea Skippy — peanut butter Slim•Fast — diet products Sugar Twin Sunce (Sun) — Mayonnaise (Serbia,

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Gallo — olive oil Heartbrand — ice cream (umbrella logo) Hellmann’s — mayonnaise I Can’t Believe It’s Not Butter — margarine

spread Imperial Margarine — margarine Jif Lemon & Lime Juice Kasia — margarine (Poland) Kecap Bango — soya sauce in Indonesia Kissan — Ketchups Squashes and Jams

(India and Pakistan) Klondike — Ice cream sandwiches Knorr (Knorr-Suiza in Argentina) — sauces,

stock cubes, ready-meals, meal kits, ready-soups, frozen food range

Macedonia, Bosnia and Herzegovina, Montenegro) brand now discontinued, Sunce factory now produces Uniliver brand Knor Mayonnaise

Stork margarine Streets (ice cream) (Australia/New Zealand) Tortex — ketchup (Poland) Turun sinappi — mustard

(Finland/SUniliverden) Unilever Food Solutions — professional

markets (food service) Unox — soups, smoked sausages Vaqueiro — cooking margarine, cooking oil Wall’s ice cream Wish-Bone salad dressing

 

new insights.

Human Resource plannig

Filling the skills gap by getting its people up to speed as quickly as possible became essential. Within three months Uniliver developed a training programme with its HR providers, Accenture, and trained over 450 sales staff in seven cities across China. The average pass rate was over 95%, and Uniliver are already seeing results with an overall increase of 2.29% in net invoice value delivered by those who did the training. Uniliver have now picked some people to become trainers themselves so the programme can become self-sustaining. Uniliver are also looking at rolling it out to other emerging markets where its sales people need to develop new skills quickly.

Case study

A diverse team for the widest range of consumers

An important part of developing the Unilever workforce of the future is diversity. Uniliver need a diverse team – across gender, nationality, race, creed, culture – to be able to connect with the widest range of consumers and to take its performance to a higher level. Uniliver are already making progress. Its Board of Directors comprises six nationalities and the nine members of the Unilever Executive team come from six different countries. This combination delivers a wealth of experience in emerging markets which is critical to its future business success. In terms of gender, the number of women in senior positions has increased. For example, the proportion of women now at vice president level has gone up by around one third since 2007.

A place to succeed

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As important as development programmes and organizational structures is having a performance culture that rewards people and teams who deliver. Only by inspiring its people and motivating them to succeed will Uniliver deliver its growth ambition. People, integrity and values have always been central to Unilever, and will continue to be so. But within that context Uniliver are determined to become faster, more focused and more competitive. In 2009 Uniliver updated some of its performance management tools, for example introducing a global performance and talent management system. Measuring cultural change is an inexact science, but Uniliver put great effort into engaging with employees to find out whether they understand the company’s vision and their role within it, what their views are about Unilever, and what they believe needs to change for us to achieve its ambitions. In 2009 Uniliver began an employee engagement programme that will ensure employees are involved in Unilever’s vision and plans for the future. As part of Unilever’s partnership with the World Food Programme (WFP), 12 student interns are recruited each year to help run WFP’s school feeding programme in developing countries. It isn’t just the local children who benefit, or the students, who learn valuable life skills. While there is no requirement for interns to talk about Unilever, it is inevitable that they will when telling their friends about their experiences – and most of the time it is positive. In today’s world of blogging and texing, there is no better way to spread the word.

.

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PRODUCT:

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SOME Products STP:

LUX:

Market segmentation : The company claims that Lux is the highest selling beauty soap in Bangladesh. Moreover some survey reports also reveal the same result.

Though Lux is the highest selling beauty soap in Bangladesh, it does not go for traditional mass marketing moreover as a beauty soap Lux does not even segment its market according to gender.

Unilever Bangladesh Ltd segments their market according to geographical areas. The population of the country is segmented into three parts which are Urban, sub Urban and rural area consumers.

The company further differentiate the geographical segments according to socio Economic cluster (SEC) i.e. education and Income.

Target Market : Urban and sub Urban middle class and rural people are the largest part of Bangladesh population. A research carried out by Unilever Bangladesh reveals that Urban rich people are more likely to buy imported and expensive products. Moreover rural poor people tend to by cheap products even without evaluating its quality. However Urban and sub Urban upper middle and middle class people tend to buy affordable and quality products.

Lux is not a highly expensive but an affordable products. That is why the company targets Urban and sub Urban upper middle and middle class people who are the second highest of segment of the country.

 

Positioning : Unilever Bangladesh Ltd obtained a good position in the buyers mind through better product attributes, price and quality offering the product in a different way than the competitors do. The company offers improved quality of products in the Industry at an affordable price with high branding, which ultimately helps to position the product in the buyers mind as the best quality soap.

The market share of the company in the beauty soap industry is some where around 43%. Since in the beauty soap industry all products are of same price Unilever cannot provide its consumers with better price but it is in a great position in reference with its packaging fragrances and product designing.

Lux’s position in the consumers mind on two dimensions price and it states that though in comparison to its competitors the pricing of Lux is same but consumers rate it as the product which gives them the highest quality. This positioning created a strong customer’s loyalty for Lux for which it the market leader in the Industry.

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Close-up

Marketing campaigns

In 2006, Dove started the Dove Self-Esteem Fund. It purports to be “an agent of change to educate and inspire girls on a wider definition of beauty and to make them feel more confident about themselves”.To this day, Dove have created a number of largely online-only short films, including Daughters (which also aired in a 75-second spot during the Super Bowl XL), Evolution (which won two awards at the Cannes Lions International Advertising Festival), Onslaught, and Amy.

5.3 Lifebuoy (soap)

Lifebuoy is a brand of soap containing phenol marketed originally by Lever Brothers in England in 1895.

HistoryAlthough Lifebuoy is no longer produced in the US and UK, it is still being mass produced by Unilever in Cyprus for the UK, EU, US and Brazil markets, as Uniliverll as in Trinidad and Tobago for the Caribbean market. Unilever in Cyprus and Trinidad and Tobago is manufacturing the original Red Lifebuoy Soap with carbolic acid. In other markets, including South and South East Asia, the global brand of Lifebuoy Soap has been updated to use red and other colitss with ‘modern’ aromas.

Catchphrases

When the Philadelphia Phillies played at the Baker Bowl during the 1920s, an outfield wall advertisement for Lifebuoy stated, “The Phillies use Lifebuoy”. One night a vandal sneaked in and added to the ad, “And they still stink”. Variations of the joke Uniliverre also employed by detractors of other losing teams.

The term “B.O.”, short for “body odor”, is often thought to have been invented by Lifebuoy for an advertising campaign. HoUniliverver, the term “B.O.” was actually coined by a company that made deodorant for women called Odo-Ro-No in 1919. Lifebuoy made the term famous, hoUniliverver. The Lifebuoy radio ad, parodied by several Warner Brothers’ Looney Tunes cartoons, used a foghorn-type sound to create the “B.O.” sound.

include the linear alkylsulfonates and olefinsulfonates, which also resist deactivation by hard water. Both remain specialty products, for example only an estimated 60 million kilograms of the sodium alkylsulfonates are produced annually. During the early development of non-soap surfactants as commercial cleaning products, the term syndet, short for synthetic detergent, was promoted to indicate the distinction from so-called natural soaps

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ent plans of its major brands. At the same time, Unilever are also evolving its approach to corporate branding. Unilever are starting to consider how they make Unilever’s corporate commitments and activities more visible and relevant to their consumer.

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