Business Report: Unilever and Tesco Distribution Issue

Business Report
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Table of Contents
Introduction......................................................................................................................................3
Problem Identification.....................................................................................................................3
Analysis............................................................................................................................................4
Conclusion.......................................................................................................................................5
Solution............................................................................................................................................5
Strength, weaknesses and implication of solution...........................................................................6
References........................................................................................................................................8
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Introduction
Customer relationship management is that function of management which is concerned with
combining practises and strategies that can increase customer satisfaction and assist in customer
retention for the company (Raab, Ajami and Goddard, 2016). For the purpose of this activity, the
person chosen is a customer relationship manager (CRM) under marketing department in
Unilever and is most concerned with keeping customers happy and satisfied. Company’s
products reach final retail consumers through wholesaler and retailer supply chain but it also
trades its products on retail supermarket like Tesco. It takes it as a business to business customer
transaction for the company. This report takes on chronology of issues and their solution
between the business taking place between two giant multinational companies.
Problem Identification
CRM works under marketing department but is closely associated with sales department of
Unilever as well. Tesco and Unilever are in the process of renewing their agreement of Tesco
being its supplier. From quite a few while it has been observed that sales of products of Unilever
are stagnant and sometimes decreases in Tesco stores all over London. This has made Tesco
wanted to not renew contract at same earlier agreed monthly purchase units while Unilever
believes this is a temporary issue and their demand will surge again therefore, they are not
agreeing with less sales unit.
Symptoms – Underlying symptom for this issue is decrease in demand of Unilever products in
comparison to the demand earlier i.e. decrease in retail demand is hampering the relationship
between business to business (Bhat and Darzi, 2016). Another symptom is that two companies
are having negative trusts for each other. It can lead to fall out, which is not in favour of anyone.
Manifestation – This issue of decrease in demand is being manifested in sales reports as
well as customer feedbacks. Also, Tesco not agreeing to take bets on recovery of demand of
Unilever products suggests that company is having some issue with satisfying and winning trusts
of its customers and business associates.
Wider consequences – Huge demand for its various products is one of the main reasons for
its sustainable growth and success. Unilever enjoys loyal customer support which not only uses
its products loyally but also acts a promotional agent by spreading positive word of mouth.
Falling demand might be indicating need of some deeper study of the issue, for it is directly
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