Unilever Business Study Report

Introduction

Unilever is one of the leading FMCG manufacturers and exporters in the world. Originated by the merger between Margarine Unie (Totterdam) and Lever Brothers (London) in 1930, this business giant enjoys a commendable presence in all the major economies of the world, from Europe to America, and Asia to Africa. In this business study report, we are going to analyze Unilever business operations worldwide and evaluate how their long term business viability may be affected by the sustainability practice their adopted in their business operations. In short, the report discusses the micro and macro business environment of Unilever in which it operates and the way its sustainability practices is impacting its business operations.

 

Part 1

  1. Name and location of the business, the type of business

The business chosen is Unilever, a company originated in Netherlands (Holland), in 1930 (Unilever official website, 2014)

The business has two Headquarters:

  • Unilever NV , DK Rotterdam, Netherlands
  • Unilever PLC, Blackfriars, London

Unilever is a FMCG (Fast Moving Consumer Goods) manufacturer and exporter.

  1. What does the business produces or sells?

Unilever holds more than 400 brands (Unilever official website, 2014), under three core product categories, which are:

  • Food & Beverages
  • Non- Food: Home Care
  • Non-Food: Personal Care

The food category includes margarine and related spreads, tea, noodles and culinary products.

The Homecare category includes detergents, toiletry, air fresheners and related items.

The Personal Care category includes diapers, tampons, hair care, skin care, deodorants, and oral hygiene.

 

  • 33 % = Food (Except Beverages)
  • 30 % = Personal Care
  • 19 % = Ice cream & beverages
  • 18 % = Home Care

 

Source: Unilever 2010 Annual Report & Accounts, p.38

  1. Who the main customers are?

The major customers are the general public, who need consumer goods. This is further divided into various customer segments on the basis of gender, age, and socio economic class.

Other customers are public and private businesses which make bulk purchases (Ben, 2009).

  1. Where most of the customers are located?

Unilever sells/exports to the following regions:

  • Europe
  • North America
  • Africa & Middle East Turkey
  • Asia & Pacific
  • Latin America

Source: Structural and Demographic Business Statistics (SDBS), OECD, March 2010

 

  1. e) Who the main competitors are?

Unilever has two biggest competitors. (Paul, 2010)

  1. Nestle
  2. Kraft Food Inc.
  3. Procter & Gamble

These competitors are also operating in Asia Pacific, Europe and North America.

  1. Where the competitors are located?

 

  1. Nestle: It is a Swiss multinational food and beverage manufacturer, established in 1905. Its headquarter is in Vevey, Switzerland.
  2. Kraft Food: It is an American grocery manufacturing and processing business, founded in 1903. Its headquarter is in Chicago, Illinois, United States.
  3. Procter & Gamble: It is American multinational manufacturing consumer goods, founded in 1837. Its headquarter is in Ohio, United States.

 

  1. The (approximate) market share of key competitors

On the basis of turnover in different regions in 2014, it has been estimated that Unilever is the 3rd largest after Nestle and Kraft (Paul, 2010).

The market share can be analyzed in terms of ranking: (Paul, 2010)

  1. In Europe & Asia Pacific, Unilever has the highest market share i.e. 45% & 49% respectively.
  2. In Latin America, Unilever has the 2nd largest share i.e. 32%, after Nestle.
  3. In North America, Unilever has the 4th largest share i.e. 20%, after Nestle, Kraft & P&G.
  4. In Africa & Middle East Asia, Unilever has the 3rd largest share i.e. 12%, after Nestle & P&G.