Unilever Business Analysis and Strategies

The report begins by stating that competition within the business environment is influencing every organization. Macro and micro analyses are used to identify both internal and external factors affecting business operations. Unilever was briefly analyzed as an example of a business affected by these factors. The report then discusses various strategies that can be adopted by companies like Unilever to improve their operations.

Principles of Marketing Management

Table of Contents
Executive Summary .............................................................................................................................3
INTRODUCTION................................................................................................................................4
Task 1 ...................................................................................................................................................4
Background of the venture ..............................................................................................................4
Task 2 : Macro analysis .......................................................................................................................4
PESTLE Analysis for the Unilever .................................................................................................4
Task 3 : Micro Analysis .......................................................................................................................5
TASK 4 : Competitive Analysis...........................................................................................................6
TASK 5 : SWOT Analysis....................................................................................................................8
TASK 6 : Strategic priorities and recommendations for Unilever........................................................9
CONCLUSION..................................................................................................................................10
REFERENCES ..................................................................................................................................11
Books and Journals .......................................................................................................................11

Executive Summary
This report includes the marketing principles and tools that the various organisation
adopt and practice in order to effectively promote their products and services in the
marketplace. The Unilever company has been taken into consideration in the
following report which is further analysed by using various techniques such as Micro
and macro analysis as well as SWOT analysis.

INTRODUCTION
To satisfy the needs to achieve the organisation goals and objectives each and every business
or firm utilizes various marketing tools and practices such as Promotion, planning, execution of the
concept, distribution of goods and services etc. There are various theories and principles of
marketing which are adopted by an organisation in order to gain competitive advantages in the
market(Armstrong and et.al,2014). The report is in context to Unilever, a transnational goods'
organisation based in UK. The project includes detailed analysis of the factors affecting the
Unilever to identify the strength, weaknesses and opportunities in the market. The report will also
include the future business strategies the organisation can adopt in order to achieve success.
Task 1
Background of the venture
The Unilever was established its business as a soap-maker company known as the Lever
Brothers. The company got a huge success by introducing the sunlight soap in the year 1890. The
company focused on manufacturing the products instead of just selling them to the customers. In the
year 1930 the Unilever started promoting their products in the Latin America which contributed in
the growth and development of the company. By the year 1940 the Unilever started expanding into
new areas of business such as Chemical manufacturing and food products. Later the company
identified they can not achieve or gain popularity only by expanding and resizing their organisation,
they understood the need of marketing strategies for attaining the desired success. The Unilever
now collaborated with the Lipton and Pepsodent to expand their operations(Lilien,Rangaswamy and
Bruyn,2013). The company started focusing on innovation by offering variety of products to its
customers. This resulted in the increase of demand and sales of the organisation. The Unilever
incredibly achieved a huge growth in the market and became the most consumed product brand for
food, personal care, home-care in the world.
Task 2 : Macro analysis
PESTLE Analysis for the Unilever
The various external factors that affect the Unilever can be identified by using the Pestle analysis
which is as mentioned below -
 Political factors : American and European Laws – The Unilever is subjected to the legal
restrictions and regulations imposed by the European commission as well as the Drug and
Food administration in the US(Smith,2014). These laws need to be followed b the company
or they can face legal issues such as criminal, civil and risk penalties. This can be very
critical for the owner or top level management as they can be imprisoned for not following
the regulations. The Unilever needs to work according to the various laws and regulations
imposed in different countries in which they are operating their business activities.
 Economic factors: Competition is ready – The economic conditions of various areas are
different, the condition of the economy decides the power of purchasing among the people.
The people are demanding products with cheap prices in such areas, The consumers are
affecting the Unilever directly by increasing or decreasing the demand of the products. The
Uni-lever's profits and cash flows are getting negatively influenced by the customers
changing demand. The Company has expanded its business various markets and areas that
helps it to manage the profit and loss by selling products.
 Social factors – The Unilever has not only considered the sales and profit earning targets by

its business activities as a main objective(Alserhan2015). The brand also focuses on
developing a strong and positive image of the company in the market and among the
customers. The Social factors like customer satisfaction, brand image, customer well-being
plays an important role in the success of each and every organisation or business. The
Unilever effectively tries to make its customers happy and satisfied with the products. The
company uses effective and customer friendly marketing strategies to attract the customers
and offer them quality products as well as services in order to build a positive and strong
brand image in the market.
 Technological factors - The Unilever focuses on the technological development and growth
in order meet the changing business environment. The people are getting familiar with the
internet of things and many other various technical elements. The Unilever identifies the
needs of the customers and ease of operations like selling or buying of products, therefore
they continuously innovate and bring new technologies in their business operations for
increasing the efficiency and effectiveness in the business.
 Legal Factors – The Unilever is subjected to various regulations and laws due to its
consumer products and services. These legal factors are very much important for each and
every organisation. The Unilever is effectively managing the legal factors and elements that
is influencing the business operations(Sheth and Sisodia,2015).
 Environmental Factors – The Unilever promote the renewable and sustainable resources.
The products of the company can be utilised by people in every area with safety. The
resources and material used for the products of the company are very eco-friendly , and does
not harm the environment or society.
Illustration 1: PESTLE Analysis

Task 3 : Micro Analysis
There are various internal factors or elements of an organisation that have major impact on
the business operations within the Unilever. These factors are described using Porter's five forces
theory as below -
 Employees – The workforce of an organisation plays an important role in the success of the
business and effective working of a firm. The Human resources are need to effectively
managed and utilised in order to maintain a smooth flow of the business operations. The
Unilever has a huge organisational structure that can be handled by a strong and effective
workforce. The Employee's performance have a major impact on the overall productivity of
the company(Kotler and Armstrong,2013).
 Investors – The organisations needs funds and investors at the start-up or expansion of the
business. These funds are provided by various investors and shareholders. These investors
play a major role in the financial elements of an organisation such the Unilever for their
huge projects and expansion.
 Suppliers and Distribution channels – The Distribution channels or the suppliers of the
material are very essential to be effectively managed by a company. These suppliers are
important to the business in order to provide necessary material and goods in the
manufacturing process. The Distribution channels are also significant in order distribute the
products in the market so that it can be supplied to the retailers and reach to the customers.
Therefore, it has a huge impact on every organisation or business in production and
distribution of products or services.
 Competitors – The another factor which is affecting the working or operations of a business
organisation is the competition. The competitors of an organisation also influence the
operational, marketing, production and other departments of an organisation. The companies
develop and implements various business plans or strategies to compete in the market.
Ill
ustration 2: Micro analysis
(Source :Porter's five forces, 2017)

 Customers and Media – The customers demand also has a huge impact on a business or
organisation. The customers can increase or decrease the demand of the products and
services, if the customers are accepting the products or demanding the goods the
organisation needs to increase the supply. This leads to a positive impact on the business
whereas if the demand decreases, it will negatively affect the business. The Media also
affect a business organisation by negatively or positively promoting the business through
various media channels. It also affects the brand image of an organisation.
TASK 4 : Competitive Analysis and theories
The Unilever being a leading brand in the selling of customer goods and products within the
industry. The Brand faces a lot of competition in the market and needs to make different strategies
and plans in order to sustain to brand position(Kiel,2014). The two of the closet competitors of the
Unilever are the Cadbury and Avon Products. These brands highly growing and developing their
business operations in order to overcome the Unilever's brand position. The Organisation needs to
analyse and identify the elements or factors that are affecting the brand position as compared to its
competitors. These analyses can be done by various tools and approaches which are described
below -
 Strategic Group – The Unilever, Cadbury and Avon Products shares the same strategic
structure or combination of plans. All the three organisations uses similar marketing
strategies in order to popularity and attract customers. In order to compete with the
competitors the Unilever is developing innovative and creative marketing strategies to
promote the products and services of the organisation. The Cadbury also have strong
marketing strategies such as effective advertisement that helps it to attract customers
whereas Avon products believes in physical appearance in the market, by establishing
various branches or stores in order to reach closer to the customers. The Unilever holds
various brands and products which differentiate it with the competitors. The brand holds the
position of the world's most customer goods company and it tries effectively to hold that
position by providing quality product at a low price which helps to achieve the customer
satisfaction and increases the profitability of the firm(Larson and Kulchitsky,2015).
 Perceptual Mapping

The Perceptual Mapping is a diagrammatic approach used by the marketers in order to visually
demonstrate the perception of the people or potential customers within a marketplace. The Position
of a company's or brand's product line, product is visualised with regards to their
competitors(Nicholson and Oliphant,2014). The above Perception map states the position of various
organisation operating within a business marketplace. The G states for the Unilever which lies
between the segment of High price and low price. F represents Avon Products which lies between
low price and low quality segments. The E represents Cadbury which determines that the company
has high price and high quality. The Products of Unilever have low prices and offers high quality of
products, the Avon Products offers products at low prices but the quality is also comparatively low
and the products offered by the Cadbury are high in quality and prices as well. This helps to identify
that the Unilever is successful in managing the price and quality of their products which have a high
impact on the sales of the company and increase the profitability of the firm as compared to the
other two organisations or brands.
TASK 5 : SWOT Analysis
In organisation is to be focus on the each and every activity in organisation. It helps to focus on
different kinds of internal as well as external activity in organisation. Unilever is a one of the top-est
company in retail sector and produce food, beverages and personal care products in market. It is
help to focus on different kinds of internal activity in organisation. In this way, the company is
focus on swot analyses in organisation. In this way, SWOT analyse is focus on different factor is
organisation. In SWOT analyses is focus on four factors in organisation are as follows :-

 Strength :- In this factor company is focus on positive factors in organisation. In this
context, present report is based on only those factor that provide strength in organisation. In
this way, it is a deep and portfolio brand in organisation. It is help to increase customer and
change consumer preference in organisation. With the help of research and development of
the company has mange fund and provide innovate market in organisation. Innovation is a
strength of the company. With the help of innovation increases customer in market.
 Weakness :- The biggest weakness that Unilever faces is that it operates in an uber
competitive market where the other global giants like P&G and Nestle in addition to a host
of local players challenge. It is give impact on the performance in organisation. This is give
negative impact on organisation performance in retail market. In this organisation the other
weakness is the product can easily replace in market. It is give negative impact on the
performance in organisation. All such factor is to be incubated in weakness ion organisation.
 Opportunities :- In this factor company is focus on global media is created opportunities in
organisation. It is focus on different kinds of factors in organisation. In this way, emerging
market is used western life style in organisation. Apart from that, “Newly Affluent Trillion
Dollar Consumers” in China and India means that it has a golden opportunity to leverage
this huge and growing consumer in market. It is help create a new opportunity, with the
help of all these opportunities the company is to be focus on different sector and increase
new market in organisation. All such factor is to be inculcated in opportunities in market.
Illustration 3: SWOT analysis

 Threats :- In this factor ongoing global economic cries is give negative impact on the
performance in organisation. It is reduced the profit rate in organisation. With the shrinking
of disposable income of consumer , they are buying less in that part of market. It will give
negative impact on profit in organisation. All such factor is to be included in threats factor.
In this context, reduce customer, profit, growth, income level of the consumer etc. all such
factor is to be inculcated in threats(Paswan and Subramanian,2015).
There is all about the SWOT analyse of the company, it is give some positive as well as
negative impact on performance in retail market. The company is analysed all such factor in every
year, it provides new statement of the organisation in market.
TASK 6 : Strategic priorities and recommendations for Unilever.
Every organisation needs a continues development plans and strategies for sustaining
its position in the marketplace and gain competitive advantages. The Unilever's strategies
are based on the changing business environment but they need to improve and adopt
specific changes within their organisation to meet the demand of the changing environment
and other factors affecting thee business operations in today's world. The various strategies
that needs to be implemented by Unilever to sustain their market position in the coming
future are as mentioned below -
 Innovation – The Company needs to focus on the innovation element within their
organisation and operations. The competitors are increasing in within marketplace
and brining various creative ideas or innovations that can be a threat to Unilever. The
brand should introduce new or creative goods to attract the customers.
 Enhanced Marketing plans – Unilever should also focus on its marketing
strategies, there are number of marketing tools now available within the market the
company needs to identify the new and effective tool to promote their products in the
market. There are new tools such as online marketing, social media marketing etc.
 Technological development - Another important strategy for the Unilever is the
technological development which refers to automation and optimisation of the
business activities(Eastman and et.al, 2016).
CONCLUSION
The report states that the competition within the business environment is influencing
each and every organisation. The Macro and micro analysis helps to identify the internal as
well as external factors affecting the business organisation. The Unilever has been analysed
briefly in this report to determine the various factors affecting its business operations.
Furthermore, the report also includes various strategies that needs to be adopted by the
company.

REFERENCES
Books and Journals
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Lilien, G.L., Rangaswamy, A. and De Bruyn, A., 2013. Principles of marketing engineering.
DecisionPro.
Lilien, G.L., Rangaswamy, A. and De Bruyn, A., 2017. Principles of Marketing Engineering and
Analytics. DecisionPro.
Smith, M.C., 2014. Principles of pharmaceutical marketing. Routledge.
Alserhan, B.A., 2015. The principles of Islamic marketing. Ashgate Publishing, Ltd..
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the future.
Routledge.
Kotler, P. and Armstrong, G., 2013. Principles of Marketing (16th Global Edition)
Kiel, I.H., 2014. Entrepreneurial marketing.
Eastman, M., Beaver, J., Garrett, A., Huggins, C., Krei, J., Ott, C. and Zimmerer, N., 2016. THE
BRAND PROJECT: INNOVATIVE STUDENT RESEARCH IN A PRINCIPLES OF
MARKETING CLASSROOM. THE ASSOCIATION OF COLLEGIATE MARKETING
EDUCATORS, p.74.
Paswan, A.K. and Subramanian, A., 2015. A Contingency Perspective of Student Performance in
the Principles of Marketing Classes. In Proceedings of the 1999 Academy of Marketing
Science (AMS) Annual Conference (pp. 301-305). Springer, Cham.
Nicholson, C.Y. and Oliphant, B.J., 2014. Using project-based experiential learning groups in the
principles of marketing course. Developments in Business Simulation and Experiential
Learning, 29.
Larson, P.D. and Kulchitsky, J.D., 2015. Perspectives on Marketing Vis-À-Vis SCM.
In Proceedings of the 2008 Academy of Marketing Science (AMS) Annual Conference (pp.
304-308). Springer, Cham.
Online
Porter's five forces, 2017 [Online]. Available through:<https://marketrealist.com/2016/02/porters-5-
forces-ksu-position-in-the-us-freight-rail-industry>