unilever presentaion
TRANSCRIPT
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Unilever
Presented to:
Mr. Yousuf Sharjeel
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Unilever
Presented By:
M. Owais Khalid
Saud Baloch
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UNILEVEROVERVIEW
SWOT ANALYSIS
KEY COMPETITOR
PRODUCTS AND SERVICES OF
COMPETITORS
COMPETITIVE ANALYSIS PRODUCTS AND SERVICES
STRATEGIES
CONCLUSION AND RECOMMENDATION
Topics Will Be Covered
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Created in 1930 as result of a merger
Key player in the food and household productsindustry
Maintains dual headquarter/dual chairpersonapproach
Launched Path to Growth strategy (2000) to revivethe company
Historically grew through acquisitions Every dayaround 160 million people in150 countries will buya Unilever brand.
Unilever Overview
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13 of our brands achieve annual sales of E1 billion ormore. Our top 25 brands account for over 70%of sales.
Dressings E14,232 7. growth 6%
Turnover (millions) Underlying sales growth Icecream and beverages E7,694 5. growth 9%
Operating profit (millions)E7,167
Turnover (millions)E40,523
We have operations in around 100 countries and ourproducts are on sale in about 50 more.
Employees (year end) 174,000
Purchase of goods and services (millions) E29,346
Unilever Overview
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All 22,000 products in our food and beverageportfolio.
Lifebuoys rural hand washing campaign in Indiahas reached 120 million people over 20022008
Our Signal/Pepsodent/Close Up toothpaste brandshave reached more than 44 million children withschool-based oral hygiene programmes over19962008
Achieved a 19%* reduction in our accidentfrequency rate from 20072008
Deliver 15 million school meals to 80,000 childrenin 2008 via our partnership with the United Nations
World Food Programme.
Unilever Overview
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160 million times a day someone buys a Unileverbrand
13 brands with sales of E1 billion or more per year
15 billion invested in advertising and promotion
E927 million invested in R&D Hand washing Day on 15 October 2008. We
worked closely with NGOs, governments and othercompanies to launch the day in 75 countriesaround the world.
Unilever is one of the worlds largest buyers of palm oil. We purchase 1.5 million tonnes a year foruse in products.
We own over 2 million point-of sale ice cream
freezer cabinets worldwide.
Unilever Overview
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Delivered 16 million meals to 76 000 childrenin 2008.
Lifebuoy aims to take its hand washingmessage to 1 billion people by 2012.
Unilever will purchase all palm oil fromcertified sustainable sources by 2015.
Over 19952008, achieved a 68%*reductionin total waste per tonne of production.
Ranked 9th out of 21 in 2008. Sales from developing markets reached 47%
in 2008
Unilever Overview
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By end 2008, around 10 500 people involved and 40 000tree seedlings raised.
Unilever has contributed around Rs. 78 (Mn) to earthquakerelief including:
Rs. 35.5(Mn) to president relief fund
Rs.3.5(Mn) to TCF for long term reconstruction and Re-buildings for the affected areas
4(Mn) of employee contributions to president relief fund
3(Mn) worth of contributions from our overseas Unilever
colleagues from Sri lanka, Turkey, Indonesia & etc In addition the company has donated 5(Mn) worth of goods
for immediate relief including tents, blankets, Tea & Soap.
Unilever Overview
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Mission
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Mission Statement
Unilever's mission is to add Vitality to
life. We meet everyday needs for
nutrition, hygiene and personal care
with brands that help people feel
good, look good and get more out of life.
Look good, feel good and get more out of life
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Achievements
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Achievements
ISO Certification KSE Top
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Achievements
Asian CSR AwardHealth and
Safety Award
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Achievements
TPM Award
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BRANDS
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Brands
22,000 products in our food and beverage portfolio
13 brands with sales of E1 billion or more per year
PERSONAL WASH
TOILET SOAPS
Lifebuoy (3 varieties)
Lifebuoy Gold (2 varieties) Lux (8 varieties)
Breeze
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FABRIC AND HOME CARE
FABRIC WASH
SurfExcel
Power Surf
Sunlight Washing Powder Wheel
HOME CARE
Vim Dish Washer/Scourers
Vim Bar
Vim Powder
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PERSONAL Care
HAIR CARE
Sunsilk Shampoo (4 varieties)
Lifebuoy Shampoo
Harmony Soap
SKIN CARE
Fair & Lovely skin cream and lotion
Ponds skin cream Ponds talc
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DENTAL CARE
Close-up Tooth paste
Pepsodent Tooth Paste
TEA
Yellow Label
Yellow label Danedar
Richbru
Top Star Taaza Leaf
Supreme
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ICE CREAM
Cornetto(3varieties), Feast(2 varieties)
Feast Stickless, Top Ten,Star Cup(4
varieties),Callipo Split Fruiti, Peddle Pop (3varieties),3-D, Solo(3 varieties),Polka Cup
Panda, family Packs
Magnum
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Our foods brands include:
Knorr
Bertolli PG Tips
Magnum
Liptons
Hellmans
Colemans
Foods
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Our home and personal care brands include:
Dove
Cif Persil
Domestos
Sunsilk
Comfort
Lux
Home and Personal Care
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Our home and personal care brands
include:
Signal Vaseline
Comfort
Radiant
Home and Personal Care
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Competitor Comparison
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PRODUCTS OF NESTLE
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Top Competitors Key Measures:
UL
UL KFT PG
Valuation
Price/Earnings 12.86 22.01 16.75
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Per Share Data
UL KFT PG
Last Dividend 68.98 91.80 43.36
Book Value 5.03 15.02 20.84
Revenue 40.52 B 42.2 B 83.5 B
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Profitability
EBIDTA 8.46 B 4.83 B 20.71 B
Operating Margin 14.55% 11.94% 22.13%
Profit Margin 12.42% 6.87% 14.46%
Gross Profit Margin 49.06% 33.25% 51.27%
UL KFT ------ PG
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57%
43%
Foods Division
Home and Personal Care
Revenues: Product Segmentation
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Quick Ratio 12.42 6.87 14.46
Current Ratio 0.83 1.03 0.69
LT Debt to Equity Ratio 62.72 83.73 32.45
ROE 31.67 7.93 17.34
ROA 10.49 5.69 10.61ROIC (Return on Invested Capital) 17.20 8.22 12.51
UL KFT --------- PG
F
inancial Strength
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Competitive ProfileMatrix (CPM)
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Competitive Profile Matrix (CPM)
The competitive profile matrix identifies a firms
major competitors and its particular strength
and weaknesses.
Steps in CPM;Success Factors
Weight (0.00 to 1.00)
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Steps in CPM
Rates (1 to 4);
4= Major strength
3= Minor strength
2= Minor weakness
1= Major weakness
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Competitive Profile Matrix
(unilever)
Unilever P&G KraftSuccess Factors Weight Rating Score Rating Score Rating Score
Quality 0.13 4 0.52 3 0.39 3 0.39
Financial Position 0.15 4 0.60 3 0.45 4 0.60
Market Share 0.16 3 0.48 3 0.48 3 0.48
Technology/innov
ation
0.12 3 0.36 4 0.48 3 0.36
Global Market 0.10 3 0.30 4 0.40 3 0.30
Price
Competitiveness
0.10 2 0.20 3 0.30 4 0.40
R&D 0.14 4 0.56 3 0.42 3 0.42
Customer Loyalty 0.10 3 0.30 3 0.30 2 0.20
Total 1.00 3.32 3.22 3.15
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Largest organizations
Advanced technology
well skilled professionals Good distribution network all over world
Unilever provided creative strategies
Strong marketing and good image creation
Wide distribution channels in both national andinternal markets
Decentralized decision-making
Strengths
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Strengths
High market share
Strong management teams
Efficient HRM department
Strong reputation
Global innovation centers
Understanding local culture
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WeaknessesWeaknesses
Competitors offered better alternative product
Dual co-chair approach and dual companystructure create problems
Lack of high volume brands
Slow sales growth compared with thecompetitors.
Low cash flow
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WeaknessesWeaknesses
Focus on short term strategy
High cost of restructuring Hard to manage and control company
structure
High cost limit promotions in company
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Opportunities
Rural areas are a large prospective market
Employing external job applicants
Gain high market share Introducing new distribution channel
Advertising through e-commerce
Promote its products in new geographic areas
Customer base is increasing with effective marketing
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Opportunities
Take advantage of the changes of technology
Increase cash flow
Gain scale of economies
Decrease its labor cost
Maintaining good relationship
Population expanding at a rapid rate
Current capacity utilization is 80%
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THREATS
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Threats
Product innovation is ineffective
The high competition for market share
increases rapidly
Changes of peoples lifestyle
Political and Economic factors
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Threats
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Threats
Increasing social awareness in society
Unfavorable conditions
Companys image destroyed
Acquisition decision
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ThreatsThreats
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Strategies & Recommendations
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Reported a net loss of $318M
In 2004, underlying sales grew by
only .4%, leading brands by .9% Issued 1st ever profit warning
ahead 3% decline
Lagging behind competitors interms of marketing andinnovation
No. Unileverwas getting there, but getting there too late
Is it working?
Failure to increase advertisingand marketing efforts
Still lack focus and effectivestrategy execution
The company remained toolocal
Unilever plans to discontinuethe Path to Growth Strategy
So whats next?
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Successfully modifyunsuccessful brands
Leading brands increasedsales from 75% to 93%
12 brands with sales of1B+
Consistent growth in
Home & Personal Care Improved overall quality
and growth profile ofFood portfolio
Yes
Global procurement
programs have delivered
2.4B, excess of 1.6B target
Improved capital efficiency Successful integration of
Best foods acquisition
Operating assets have
improved by 9%,
exceeding 6% target
Is it working?
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Competing with the Giants
Giants dominate all
categories
Giants are growing
Giants operate globally
Marketing is a luxury
Misbelief that Marketing
needs big budgets
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It is going to get tough, so we will need to beequally tough in response
Strategies forcompetitors to the employee
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Path to Growth Strategies2001
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Why Path to Growth Strategy
Years of slow performance
Lack of sound corporate strategy
Low-volume brands Small global presence compared to competition
Mediocre performance in emerging markets
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Objectives of Path to Growth
Expectations
Achieve double-digit EPSgrowth
Secure a better competitive
position in global food and
household
Build brand value to gain
pricing power
Top-line sales growth of5-6% annually
Increase operating profit
margins 11% to over
16%
Strategic Targets
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Strategic Issue
What adjustments, both internally and
externally, should
Unilever make to rebuild astrong and focused competitive strategy?
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1. Reorganize and Unilevers organizational
structure.
2. Implement Unilever Believer product and
brand extensions.
Recommendation 1
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Recommendation 1
Strategy Justification
Reduced
effectiveness and
slowed the decision
making process.
Unilever maintained two
business entities, dualchairperson approach
Board and businessresponsibilities conflicted
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One Unilever
An initiative to create an overall umbrella brand
across all Unilevers brands that will eventually
consolidate various businesses under one name
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Recommendation 2
Strategy Justification
Consumers demand high quality products that both are
convenient and delicious Consumers look for new ways to use products
More females are working full time jobs
Large population of single-parent households
Increase consumer focus on health and nutrition
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Recommendation 3
Environmental issues are becoming increasingly
important
Failure to address these issues can damage brand
reputation
LCA is a useful tool to measure, understand and
communicate environmental performance
innovation process, product design
communication with external stakeholders
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