Comprehensive Analysis: Innovation Strategies and Unilever Report

This report provides a comprehensive analysis of Unilever's innovation strategies. It begins with an introduction to Unilever, followed by definitions of innovation and a comparison between invention and innovation. The report then highlights the importance of innovation at Unilever with specific examples, such as the 'Clean Clothes, Less Water' project and the 'Digital Transformation Factory.' It explores Unilever's vision, leadership, organizational culture, and teamwork. The report also offers recommendations to promote a thriving environment for innovation and explains the 4Ps of innovation and innovation funnels. Finally, it introduces Unilever's frugal innovation approach, detailing its roles and benefits. The report emphasizes Unilever's commitment to sustainable growth and its use of technology to enhance efficiency and product quality. The company's leadership, including Graeme Pitkethly and Alan Jope, is highlighted for their contributions to innovation and employee development. The report concludes with recommendations for further improvements in policies and technological advancements to support employees and strengthen the company's culture of innovation.

I. PERFACE
To survive and thrive in today's competitive and thriving technology, companies must constantly innovate
to make a difference. And one of the companies at the forefront of that innovation is Unilever.
This report will help everyone see how Unilever innovates in business, working environment, and
production.
The report will begin with information about Unielver. Next are the definitions of innovation. The
difference between invention and innovation will be analyzed in part IV. The importance of innovation
with Unilever will be clearly analyzed in part V with specific examples. Part VI is vision, leadership,
organizational culture and teamwork in unilever. The following will be recommendations to promote
Unilever to develop and renew the working environment and culture. Part VIII will explain 4P's of
innovation and innovation funnels. And part IX is going to introduce the frugal innovation of unilever.
Finally, there are the roles and benefits that the frugal innovation brings to Unilever.
II. COMPANY INTRODUCTION
Picture 1: Logo of Unilever by CafeBiz
Unilever is a multinational company founded on September 2nd 1929 with the combination of Lever
Brothers (the soap maker in the UK) and Margarine Unie (a Dutch food butter manufacturer). Currently,
Unilever has two headquarters in the UK city of London and the Dutch city of Rotterdam.
Unilever is a world-famous brand in the field of manufacturing fast-moving consumer products,
including personal and home hygiene products, food, tea and tea drinks, and products sold in more than
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190 countries. Unilever's food, home and personal care brand is trusted by consumers around the world -
the average consumer buys 170 billion packages of Unilever products each year.
Unilever's typical brands are widely consumed and accepted worldwide such as Lipton, Knorr, Cornetto,
Omo, Lux, Vim, Lifebuoy, Dove, Close-Up, Sunsilk, Clear, Pond's, Hazeline, Vaseline, etcs. With sales of
over millions of dollars per brand, it is proving that Unilever is one of the most successful companies in
the world in the consumer healthcare business.
III. INNOVATION AND SOURCES OF INNOVATION
Innovation is the process of taking an idea from a concept and turning it into a new or improved product,
service or process that creates value for the end user. (Ian Graham)
An innovation is the implementation of a new or significantly improved product (good or service), or
process, a new marketing method, or a new organisational method in business practices, workplace
organisation or external relations. (Albert Meige, 2009)
Innovation is the development and application of ideas that improve the way things are done or what can
be achieved. Innovation may result in new products or services, new or improved business processes,
changes in the way your products are marketed or the introduction of new technology. (Small Business)
Innovation can be an introduction or development of a new product, process, technology, service or
improving/redesigning the existing ones that provide solutions to the current market requirements. All the
processes that help in the generation of the new idea and translating it into the products demanded by the
customers are covered under innovation. (Surbhi S, 2017)
IV. THE DIFFERENCE BETWEEN INVENTION AND INNOVATION
Differences Invention Innovation
Mean Invention is the creation of new
products, processes, and technologies
not previously known to exist.
Innovation is the transformation of
creative ideas into useful application
by combining resources in new ways
to provide value to society through
improved products, technology or
services.
The invention is related to the
creation of new products.
Innovation means adding value or
making a change in the existing
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product.
Concept Come up with a new idea and how it
works in theory.
Innovation will implement a new idea
in reality.
Skills required Invention requires science skills Innovation requires marketing,
technical, and strategic skills.
The invention occurs when a new
idea strikes a scientist.
Innovation arises when a need realized
for a new product or improvisation in
the existing product.
The invention is concerned with a
single product or process.
Focuses on the combination of various
products, services and processes.
Implementation
department
The R & D department. Spread across the organization.
V. THE IMPORTANCE OF INNOVATION FOR UNILEVER
The following two Unilever innovation examples will clearly analyze the importance of innovation for
the company.
1. Project 'Clean clothes, less water'
Picture 2: Surf Excel Quick Wash by Unilever, 2017
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The source of this innovation is being studied in 2017 to help Indians save water and still wash their
clothes. In India, Unilever's Surf Excel laundry detergent is mainly used for hand washing. When
washing clothes by hand, it usually takes more time and water to wash off the bubbles than washing by
machine. Unilever could then add some anti-foaming ingredients to make the foam cleaner faster, but
according to a company survey, consumers prefer to have foam when washed because it is a sign that
clothes are being cleaned.
So Unilever started research to find the right ingredient that does not prevent foaming during washing but
will reduce foam faster during rinsing. After a period of research and testing, Surf Excel Quick Wash
launches with good foaming function when washing and faster foam reduction when draining - saving 2
buckets of water on average per wash.
Unilever introduced Surf Excel Quick Wash with an advertising campaign to promote the message that
consumers can wash clothes cleaner and still save water.
Surf Excel Quick Wash is always in the top 3 best-selling detergents in India and for 2 consecutive years
2019, 2020 Surf Excel Quick Wash is the best-selling detergent in this billion-dollar country.
Since the launch of Surf Excel Quick Wash, the revenue of Unilever's detergent portfolio in the Indian
market has increased significantly, helping the company's brand value soar in recent years.
2. Project ‘Digital Transformation Factory’
Picture 3: Digital Transformation by Natasha Spencer
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One of Unilever's most dramatic innovations in manufacturing is that in 2019 the company will combine
with Microsoft - the world's No. 1 technology company, and the Marsden Group - Technology Innovation
Company, to make war Digital transformation strategy at factories to exploit supply chains and cut costs.
The digital factory will operate with data including production cycle times, engine speeds, temperatures,
and other manufacturing variables that are collected in the cloud through analysis. This process is
achieved through advanced analysis and machine learning to be able to monitor the physical settings in
production machines.
Incorporating technology into manufacturing, Unilever can influence operations by predicting results and
improving efficiency levels to optimize output. In addition, the company will also have a better
understanding of how to use the correct ingredients to help reduce the quantity of products that do not
meet quality standards. In particular, Unilever can monitor product quality by hand-held devices and
share data with colleagues in other Unilever factories around the world.
By adopting a digital approach to manufacturing, Unilever has saved nearly $ 3 million and helped
increase productivity by 2% by the end of 2020. And by the end of 2020 Unilever has nearly 100
factories out of The company's 300 global factories access digital technology into production.
VI. VISION, LEADERSHIP, ORGANIZATIONAL CULTURE AND TEAMWORK IN
UNILEVER
1. Vision
Unilever has a vision for a better future with the best health and beauty products for billions of consumers
around the world.
Innovation plays an important role in sustainable growth, so Unilever always researches and develops
groundbreaking ideas with a long-term vision that help the company stay ahead in the development of
home care, personal care products .
2. Leadership
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Picture 4: Graeme Pitkethly by Unilever
To help the company innovate and promote development, it is indispensable for the leaders who are
talented and outstanding in Unilever's innovation that are Mr. Graeme Pitkethly - CFO of Unilever. Since
being appointed as CFO of Unilever in 2016, he has helped the company to manage budget and cost more
effectively with changes in budgeting tools and inventory management. Specifically in 2018, Mr. Graeme
Pitkethly has officially implemented the Inventory management system into the production and
management of goods, helping Unilever control the quantity of goods in stock and counterfeiting the cost
of maintaining the product. It can be said that with innovations in financial planning, always learning and
changing the most suitable accounting tools for the company of Mr.Graeme Pitkethly not only help
Unilever save a lot of money but also help for employees who are more motivated to work, no more
stress and fatigue like when using financial statements, manual tools.
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Picture 5: Alan Jope by Unilever
A talented leader, with many other new innovations of Unilever, is Mr. Alan Jope - CEO of Unilever. As
a graduate in marketing, Mr. Alan Jope always has outstanding ideas to promote products and corporate
brands. He excelled at leading Unilever's business in developed and emerging markets. He is also the
concept and co-developer of the Unilever Sustainable Living Plan (USLP) campaign - always changing
the company's products to be environmentally friendly. Mr. Alan Jope is rated by the staff as a dynamic,
friendly leader who always knows how to inspire employees to work as efficiently as possible.
In addition, Unilever started the 'Unilever Future Leaders' program for potential new or graduating
students wishing to become future leaders with positive contributions to the community and society,
through many interesting and challenging experiences: real life experiences in rural areas, job rotation
between departments in departments and international work rotation.
3. Organizational culture and Teamwork
Unilever always creates a friendly, open, and empathetic environment among employees. The company
also focuses on creating a working environment with equal and sincere treatment among employees in the
company, regardless of rank or position. This is where employees feel trusted and shared. That way, the
new employees can fully promote their creativity and stick with the company for a long time.
Every year, Unilever always organizes creative competitions for all employees of the company to have
the opportunity to contribute ideas and ideas for the company's business development projects. To
stimulate creativity and inspiration to work for employees, the company always gives great prizes to
excellent individuals and teams.
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In addition to focusing on infrastructure, equipment to help employees work efficiently such as
multimedia meeting rooms, modern electronic library systems, and laptops. Unilever also creates a
relaxing space to help employees not feel constrained with outdoor working rooms or gyms, mini cinema,
dining room and beauty salon for employees to feel comfortable when working tired.
VII. RECOMMENDATIONS FOR THE COMPANY TO PROMOTE AND DEVELOP AN
ENVIRONMENT AND CULTURE OF INNOVATION
One recommendation for unilever is to improve its policies to accommodate the diversity of the
company's business lines. At the same time, Unilever is able to implement more technological
innovations to support employees in all areas through advanced tools for market research, customer
relations and internal communications. These improvements will help the company strengthen its
organizational culture of performance.
To help the company thrive with breakthrough innovations, in addition to getting employees' ideas,
Unilever should open an online site that takes in ideas from all over the world and can get the latest
creative ideas.
Unilever should also apply the Split-week model to departments to accommodate the 4-day-a-week work
regime the company is testing. Specifically, it will divide working from home two to three days a week
and working from home two to three days a week. For example, the marketing department works at the
company on Mondays and Wednesdays, the R&D department works on Tuesdays and Thursdays. This
hybrid model allows the company to stay in touch with employees, manage easily with the team, and
allows for timely face-to-face meetings. At the same time, when dividing the days, it is easy for
departments to use the large meeting rooms.
VIII. EXPLAIN 4Ps OF INNOVATION AND INNOVATION FUNNELS
1. Explain 4Ps of innovation
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Picture 6: The 4P’s of innovation by Smruthi Krishnan
Although with the advent of technology, the innovation market has reached its saturation point, there is
always scope for something new and better to emerge. All companies need is a little push and the right
strategy to plan their growth. As companies battle research and development, they also need to focus on
key points of innovation, including 4P's: Process, Product, Paradigm and Position.
Process innovation refers to innovations that help companies streamline processes towards customers to
ensure long-term success of their business. Process consists of the following four elements: process
delivery, process flow, process management, and technology. The new process will be designed based on
market related changes and market technology. A process change can be difficult but will bring high
returns once it starts.
Product innovation refers to changes in products or services that the startup or organization must provide.
Innovating a product may involve changing the design of an existing product or changing an entire
product or service. It matters because it helps create new space in a market that appears to be saturated.
Companies need to identify these gaps and find new spaces to target customers to meet demand with a
fresh approach.
Paradigm innovation is the change in the underlying mental models which frame what the organisation
dóe or alternatively how the company frames what it does. Or the way we think about what our
organization does and who we do it for. The paradigm is sometimes called ‘the business model’.
Position innovation: market segment in which a product or service is being targeted. Repositioning may
lead to a new market segment with a product that has not been previously thought of, or an entirely new
product leading to a new market segment. It's a way of finding out where and who might be interested in
the product or service, who hasn't used it before.
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(Smruthi Krishnan, 2021)
2. Innovation funnels
The innovation funnel is a mechanism that means a continuous stream of innovative ideas and prototypes
can be screened for viability. Often also called a “funnel management process”, it’s a popular approach
used by many companies to decide what ideas are realistic and which aren’t. (Barie Dowsett, 2020)
Here are the periods where Unilever is applying innovation funnel to the research and development of
Omo Matic Comfort detergents:
• Stage 1: Opportunity assessment
Based on data analysis of consumer surveys on detergents in the market, Unilever has seen an extremely
good opportunity for the 2 in 1 detergent line - both clean while maintaining flavor fragrant as long as
using fabric softener.
• Stage 2: Insights-based ideation
There are only ordinary laundry detergent and fabric softeners on the market, so it takes consumers a lot
of time to wash their clothes and leave them fragrant for longer. With the strategy of producing safe
products to meet all customers' needs, Unilever has started researching 2 in 1 Omo Matic Comfort
laundry detergent line with the combination of Omo detergent - to blow everything away stains, fabric
softener Comfort - long lasting fragrance.
• Stage 3: Conceptualisation
During this period Unielver began to release products for testing. The Omo Matic Comfort mini laundry
powder bags will be included with the company's other home care products and also have fake designs
located at Unilever's stores in malls and retail stores.
• Stage 4: Evaluation and benchmarking
After completing the pilot phase, Unilever began analyzing consumer opinions for this new idea. Based
on the positive feedback and reviews from customers, Unilever knows that the product opportunities are
enormous. So the company began to delve more into different fragrances for this product line.
• Stage 5: Plough on or cut it loose?
Unilever assessed that Omo Matic Comfort will have a lot of growth opportunities in the market so the
company decided to invest in product manufacturing and put into its home care product portfolio with
production costs, marketing expenses and other costs.
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• Stage 6: Launch
After a period of researching and testing the product, Omo Matic Comfort washing powder is finally
released to the market with the market's appreciation for its creativity. And after 1 year of launch, Omo
Matic Comfort is the best-selling detergent line of the Omo brand.
IX. THE FRUGAL INNOVATION IN UNILEVER
As a process, frugal innovation discovers new business models, reconfigures value chains, and redesigns
products to serve users who face extreme affordability constraints, in a scalable and sustainable manner.
It involves either overcoming or tapping institutional voids and resource constraints to create more
inclusive markets (YasserBhatti, 2011).
It can be said that Unilever has been one of the leading companies in frugal innovation over the years
with successful projects in the Unilever Sustainable Living Plan (USLP). Specifically, Unilever has
helped more than 1 billion people improve their health, hygiene and nutrition with innovations in
hygiene, beauty and food products. And the company also reduces the impact of production on the
environment such as reducing CO2 emissions, gradually changing packaging with paper bags, black
plastic that is most easily peeled and processed. Ultimately, enhancing livelihoods helps millions of
people improve their livelihoods as the company grows businesses with more opportunities for women,
inclusive, and fair businesses in the workspace.
Here are the outstanding frugal innovation in the Unilever Sustainable Living Plan (USLP):
★ Simple biodegradable wipes
Picture 7: Simple biodegradable wipes by Maddie Maynard
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The only difference between the original Kind to Skin wiper when it is finished tossed it will not stick to
the landfill but fly around, and the new version of Biodegradable is made from wood pulp and vegetable
fiber natural and takes only 42 days to decompose in the compost condition. According to Unilever,
compost time is less for melon peel, grapefruit peel and oak leaves.
(Maddie Maynard, 2020)
★ Ben & Jerry’s
Picture 8: Ben & Jerry’s by Maddie Maynard
From the use of Fairtrade ingredients to flavors specifically used to help with social and environmental
issues, Ben & Jerry's has been known to be incredibly clean and safe. Now this is extended to the
packaging of the product. In January 2019, Unilever removed the thin plastic layer inside the box and
replaced it completely with paper and a moisture-proof layer made from plant-based materials. This helps
the company reduce nearly 40 tons of plastic released into the environment each year.
(Maddie Maynard, 2020)
X. THE ROLE OF FRUGAL INNOVATION IN UNILEVER
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