“150 million times a day, someone somewhere chooses a Unilever

product”

Who are Unilever

Origins of Unilever Operational style Strategic style Examples of strategic

style Competitive environment Current strategies

Simon Clift Marketing lessons

learnt Future prospects

Overview

The origins of Unilever

Unilever is an Anglo-Dutch multinational corporation that owns consumer products in;

Food and BeveragesCleaning agentsPersonal care

Created in 1930 from a merger between the British soap maker Lever Brothers and Margarine Unie

As palm oil was a major raw material for both soaps and margarines

Mergers and acquisitions – grew through repeated mergers of companies who usually retained their names and brands. This encourage strong belief and initiative to de-centralise control

Operational Style

•Top 25 brands = almost 75% of Unilever’s sales*.

* As at end 2009

Big global brands

Strategic Focus

• Deep roots in local cultures and markets around the world give a strong

relationship with consumers and are the foundation for future growth.

Focus on wealth of knowledge and international expertise to the service

of local consumers – a truly multi-local multinational.

• Exceptional standards of performance and productivity, to working

together effectively, and to a willingness to embrace new ideas and learn

continuously.

• To succeed also requires, the highest standards of corporate behaviour

towards everyone we work with, the communities we touch, and the

environment on which we have an impact.

Corporate purpose

• Their strategic focus is to win share and grow volume in every category and

country.

Unilever’s growth priorities

Winning with brands and innovation

● Deliver superior products, design, branding and marketing

● Bigger, better, faster innovations

● Appeal to more consumers across needs and price points

Winning in the marketplace● Lead market development

● Win with winning customers

● Be an execution powerhouse

Winning through continuous improvement

● Lean, responsive and consumer-led value chain

● Drive return on brand support

● Agile, cost-competitive organisation

Winning with people

● Organisation and diverse talent pipeline ready to match our growth ambitions

● Performance culture which respects our values

● Leverage our operating framework for competitive advantage

Strategic Style

Research and Innovation Localisation Diversification into a broad category Multiple segment specialisation - developing

products to target every segment. Serving multiple markets whilst differentiating products in a way that meets needs of each segment

Developing in emerging markets

Current Strategies

Downsizing brand portfolio –stream line the business portfolio to reflect vitality concept

1,500 – 400 master brands Also, acquisition of high profile food brands

Brand positioning

“The Beauty Soap of Film Stars”

Icon Brand

Unilever Brands

. Research and Innovation Different needs for different hair types

Concentrating on emerging markets Understanding different consumer needs Offering products at different price points

Unilever Brands

Localisation Building businesses organically The world's biggest ice cream company Ben & Jerry's

•Of the 6.8 billion people in the world today, 5.9 billion live in developing and emerging markets – countries such as

Brazil, India and Indonesia where Unilever has deep roots and a wide presence. We already reach many more consumers than our competitors in these markets.

The D&E opportunity

% 2004 Sales

% 2009 Sales

North America

23%

Western Europe

38%

D&E 36%

Other developed

3%

North America

16%

Western Europe

30%

D&E 50%

Other developed

4%

Developing and Emerging Market Opportunity

Bottom of the Pyramid

Multi-trillion dollar opportunity

Billions of people out of poverty in the next 10 years

Developing and Emerging Market Opportunity

Competitive environment

Key Competitors Proctor and Gamble Nestle Colegate-palmolive Supermarket private lables

The management of the smaller brands slowed down its growth.

Whilst their competitors concentrated on global development and economies of scale.

Unilever’s Growth Matrix

Simon Clift

First chief marketing officer for Unilever“Unilever was effectively a holding company . That led to a

very complex brand portfolio, with thousands of formulations, positionings, and ways of developing

advertising.”

(Marketing Week)

Centralised marketing culture Concentrates on building the brands New Unilever brand identity

Marketing Lessons learnt

1. Be forward thinking and with constant innovation – looking beyond organisation’s walls.

2. Defend its territory through growth and diversification

3. Bigger is not always better.

companies need to contract and recognise its weaknesses.

Future Prospects

How will Vitality be brought amongst all their brands?

How will they overcome two contradicting values?