Marketing Communication in Unilever - Report Example

Marketing integrated marketing communication Table of Contents Executive Summary 3 Introduction 4 The Company 4 Company Growth 5 Products and Brands 8 Unilever’s Sustainability Plan 9 Marketing Communication in Unilever 15 Conclusion 17 References 18 Executive Summary Unilever is the world’s most renowned FMCG brands with top of the line products like Dove, Lux, Knorr soups and many others. It has a worldwide presence in every country with products being sold everywhere. Despite being such a famous company, Unilever faced problems in growth in terms of sustainability and sales. The company showed negative sales in the 3rd quarter of 2013 and questions were raised about its sustainability as a brand. The project starts with a brief introduction of Unilever right from its products to its history. After the discussion we have looked into the major issues faced by Unilever in terms of their growth. Once having discussed that, we have seen into the measures taken by Unilever to overcome their weakness and regain their sustainability. The conclusion is a brief overview of the project. Introduction Among the famous multinational companies in the world, Unilever is one of the oldest one. The company has a huge product line starting from personal care, foods, and beverages to cleaning agents. In the list of consumer goods Company, Unilever stands in the third position according to 2012’s revenue report. The first two positions are occupied by Procter & Gamble and Nestle. The Company Unilever was founded by the merger of two companies in 1929. One was a Dutch company who produced margarine named Margarine Unie and the other was the Lever Brothers who were British soap makers. This merger became a big success and soon speeded in rest of the world. Mainly in the 20th century the company for the first time expanded its business worldwide. In the whole history of Unilever, numerous numbers of acquisitions the company has made. Some of them are in 1971 with Lipton; in 1984 with Brook Born; in 1987 with Chesebrough-Ponds; in 2000 with Best Foods, on the same year with Ben 7 Jerry and in 2010 with Alberto-Culver (Unilever.com, n.d.). Unilever is a dual listed company. The first company is named as Unilever N.V. which is situated in Rotterdam and the other is named as Unilever as Unilever PLC which is based in London. These two companies operate as a single business unit and even they have the same directors. In the New York Stock Exchange both the companies are listed in the second position. Company Growth Starting from 1929 Unilever faced success. In 1930 they expanded the business to Latin America and Africa. Though in 1945, the company faced a tough time performing business in America. But in other areas of the world, different acquisition brings big success to the company. In them one is buying Breyers from Philip Morris makes the company the largest manufacturing house of ice cream in the United States. In 1997 the company sold one of its special divisions, which was in chemical sector, to ICI in £4.9 billion. In 2000 the remarkable step taken by the company was acquisition with Bestfoods. This increased the scale of food products of the company in America as Knorr, Hellmann’s includes with the brand name of Unilever. In 2001 the company was split in two divisions. Among them one division was for Food Products and the other was for Personal Care and Home Product. The success of 2002 to 2007 was also very significant in the success story of the company. In this time period the company sold its specialty oil division to IOI in €218.5 million and employed an international NGO name Rainforest Alliance to look after the company’s tea estate in Eastern Africa. It helps in increasing different tea types like Lipton Yellow Lables, PG tips tea bags etc. In 2011 Unilever has come to an agreement to sell the Sanex brand for €672 million to Colgate-Palmolive and are going to acquire the laundry detergent of Colgate-Palmolive. In very recent news it has been announced that Unilever is going to acquire a major stake in the China based company which deals with water purification. Below a graphical report is being shown for the increase of the growth of the company. Products and Brands Though this company owns 400 brands but only 14 brands they focus mainly. Mainly Unilever is organized in four main, those are-Home Care, Personal Care, Food and Refreshment (beverages and ice cream). Unilever for his product related research and development has its units in Netherland, India, China and United States (Unilever.com, n.d.). The main products of Unilever are shown through pictures below. Recently it was reported that Unilever had suffered a loss in terms of sales in the developed economies in Europe and also in the developing nations. They reported underlying sales of 3.2 percent in the third quarter compared to 5 percent in the earlier two quarters (Sharman, 2013). Based on these results it is clearly evident that Unilever is facing sustainable issues. In order to cope with this issue, Paul Polman the person whol leads Persil, PG Tips and Flora commented that the decision being made in case of Europe and the policies being laid down where outdated compared to the progressive era (Saunders, 2011 and Chan, 2012). Unilever’s Sustainability Plan As stated by Design for Sustainability, "Sustainable enhancement and outline is not so much about new advances, however about reconsidering how to meet the requirement for development while in the meantime diminishing negative ecological and social effects " (Mohrman & Shani, 2011). The Design for Sustainability idea diagrams procedures for making sustainable changes (social, investment, and ecological) to items by applying components of lifecycle considering." Life cycle speculation includes the thought of an items life from assembling to death alongside the three mainstays of sustainability; individuals, benefit & planet (Baker, 2012). Unilever touched base at their current practice through a life-cycle approach; they take a gander at exercises upstream and downstream with a specific end goal to transform the best conceivable answer for their brands, their shoppers and the worlds residents. In this manner they took it upon themselves to structure and consolidate sustainable practices for each touch purpose of their items from making a sustainable farming system to the cleanser directions that utilize less water. Through their life-cycle approach Unilever made three key sustainability projects including crude material inflow (vegetables and fish) and clean water, which affects each phase of Unilevers brands from the production line to the home. Since Unilever is a worldwide organization they have taken it upon themselves to work with governments and nearby associations in every region to help detail best practices for each one target market. They comprehend that their prescriptions and practices for a tomato rancher in California wont help a tomato agriculturist in Brazil. Unilevers essential centre is on individuals since that they offer items in something like 150 regions. If the normal shopper has the learning of Unilevers deliberations for sustainable items then their benefit and picture will stay on an unfaltering climbing way to solid brand faithfulness. It takes Unilever more than simply taking the activity to transform sustainable items all the way. It requires their representatives and accomplices around the globe to convey and impart their information about Unilevers strategies for making sustainable life. Expressions of mouth can just go in this way, particularly for an organization like Unilever, which has a huge number of brands under its umbrella (Vizard, 2013). Unilever has utilized advertising keen by showcasing their organizations objective alongside while promoting items. There have been late advancements in the Unilevers sustainability plans. Unilever is drawing up an arrangement of "sustainability desire" for each of its brands to help drive social change on a worldwide scale, the organizations boss sustainability Officer Gail Klintworth has uncovered. Unilever, which makes and offers items under more than 400 brand names around the world, is determined to quickening the mix of sustainability into its brand portfolio. As stated by Klintworth, this wont just help with brand positioning yet could possibly trigger a development in which brands consume the mallet for social change. Despite the fact that not many brands have a full fledged social mission, she anticipates that Unilever brands will distinguish how they might be helping the sustainable living arrange through cement movements (Baker, 2012). Illustrations of this incorporate Magnum dessert, which is sourcing its cocoa through the Rainforest Alliance certificate, Knorr driving sustainable horticulture through its Sustainability Partnership programme, and Domestos giving essential sanitation through its Toilet Academy and activities like World Toilet Day. To help accomplish purchase in and mix of sustainability standards crosswise over its item portfolio, Unilever is utilizing an engraving modelling framework which gives a 360-degree perspective of the social, natural and monetary effects of each one brand. According to Klintworth, they are currently applying the approach to help brands make a sustainable business commitment in accordance with a part of their positioning. "We need to verify that our Unilever Sustainable Living arrangement has an enduring impact on business change." She included that the organization was presently earnestly moving from gazing toward dominatingly toward dodging natural "negatives" to empowering positive social effect. "To comprehend our full effect on natures domain, we needed to measure the larger ecological effects of our item portfolio over the lifecycle." This incorporates numerous steps, from how we source our crude materials to how our buyers utilize our items and arrange bundling. By critical, we mean effects most important to our business and to social order," she demonstrated. Unilever has since created measurements for the accompanying necessity sway zones: nursery gas outflows which blanket the full lifecycle; water utilized by buyers within nations where water shortage is an expanding issue; waste which blankets item remains and bundling that goes to landfill. In November 2010, under the initiative of its new CEO Paul Polman, Unilever started a bold 10-year arrangement to twofold its incomes, slice its natural affect significantly and enhance the lives of one billion individuals around the globe. In the years paving the way to this publication, the organization initially settled a vital vision that might implant sustainability altogether inside its brands DNA through its Brand Imprint Initiative. The organization spelled out its objectives openly in its Sustainable Living Plan yet recognized it had no reasonable guide for how it might accomplish them. From the earliest starting point, notwithstanding, Unilevers corporate authority distinguished that all brands under the Unilever umbrella are essential to the organizations new methodology to source more sustainable crude materials; diminish waste, water and vitality utilization; and definitively enhance the lives of its clients around the globe. Unilevers advancement, two years after its affirmation, demonstrates that brands could be the impetus behind a multinational organizations offered to enhance the lives of individuals, recuperate the planet and help benefits. Whats more inside this system has had a key part in captivating the organizations representatives also. In a late telephone meeting, Unilevers SVP Global Marketing, Marc Mathieu, clarified that the arrangements comes about so far have enlivened a more excellent feeling of resourcefulness, imagination and strengthening inside the organizations workforce. In the wake of declaring the Sustainable Living Plan and its objectives, Unilever confronted overwhelming tests throughout the activitys first a few months. To begin with, the organization needed to recognize buyer practices that the brands required to change, and afterward focus the best and sustainable alternatives the organization needed those same customers to grasp. To that end, a cross-practical group created what it depicted as five levers that can change shopper practices in ways that might both construct brand unwaveringness and enhance those same items impacts on the planet. To begin with, these progressions must be comprehended and clear so individuals might recognize what to do. Next, these steps not just must be simple so buyers might take after the easy way out, additionally attractive. It was additionally discriminating that these new practices were rewarding to the point that at last they might get to be propensities Unilevers purchasers might grasp. Unilevers test begins with the enormous volume of its items sold every day. In excess of two billion times every day, individuals devour Unilever items in very nearly every country on earth. If shoppers buy them at "enormous box" saves in well off countries or purchase little sums in sachets at stands in poorer nations, the organizations aggregate natural and social effects are gigantic. At the same time Unilevers brand portfolio additionally offers chances for a deeper, more genuine and constructive effect on both individuals and the planet. Cases inside the organization now flourish, including instructing clients about moral elements; confirming agriculturists so they develop sustainable products; and showing health propensities that Unilever demands will be able to rescue a huge number of lives in the long run. Let us say for example, Lipton has taken a forceful way on the moral accreditation of the homesteads from which the organization gets tea. Indeed before the Sustainable Living Plan started, Lipton sourced all tea for its Yellow Label tea sold in Western Europe from Rainforest Alliance-confirmed ranches. Liptons principle objective is to have all teabags gain that certificate by 2015; presently the measure of the organizations tea bought from such homesteads remains at 28 %. To achieve that objective, Lipton gives preparing to ranchers on better rural practices so they can twofold or triple their yields, which profits their families and obviously, Lipton. Toward the conclusion of 2011, Lipton had prepared over 300,000 smallholder ranchers, an amazing logistical accomplishment acknowledging a number of them develop tea on under two hectares. As stated by Mathieu, the scale of Liptons certificate project will have an expansive influence all around the tea business – demonstrating that a brand can change a whole area. Programs particular to different markets in which Unilever works have likewise had any kind of effect in individuals lives around the world. The dissemination of high temperature maintenance cookers, which the curry powder brand Rajah led in South Africa, made 650 occupations and tripled the offer of one of the organizations product offerings. One of Unilevers most seasoned cleanser brands, Sunlight, underpinned a sun powered water radiator establishment program that profited 6,000 homes. Over the Indian Ocean, in India, the capacity to purchase single sachets of items has since a long time ago supported numerous brands bargains while permitting poorer customers a competitive alternative to purchase items including cleanser and cleansers. Yet huge numbers of them had wound up in landfills, so the organization started a pilot extend that could transform those void sachets into fuel. Two years in, Unilevers Sustainable Living Plan exhibits how a multinational organization can influence its brands and their associations with buyers to impart sustainable considering, create healthier propensities and enhance the lives of individuals who work every day to develop the fixings that end up in Unilever items. Mathieu clarified that sustainability is currently at the bleeding edge of the organizations system as additional purchasers comprehend that Unilevers brands might be bravo and additionally the planet. Inside the organization, production network experts, advertisers and innovative work staff now consider sustainability and social effect as they keep on innovating, re-evaluate sourcing systems and figure out how their items can produce a wide social effect. The force of brands, coordinated with another duty to sustainability, demonstrates that benefits and look after the planet dont need to be fundamentally different from others. Marketing Communication in Unilever Unilever is driving towards territorial merging of systems, processes and association to backing the operation of the new Unilever plan of action. In Europe, they have kept on advancing the task to actualize the single European Enterprise system (Conrad & Thompson, 2013). The year 2005 was very awarding as executions were performed in France, Germany, the Netherlands and Russia. They have likewise conveyed a further nine nations onto the European customer relationship management system, covering essential help from the sales force and tele-business for Food solutions. An artwork administration system initiated arrangement in HPC and Food solutions; this system is presently utilized by 2200 clients crosswise over Europe. With expanding reliance upon local requisitions, flexibility and recuperation get significantly more basic. In relief they had built and dispatched an extra world class information focus to guarantee full European reinforcement and recuperation ability. In Latin America, they made noteworthy advancement towards the objective to work as one business. This was completed by July 2006, conveying a solitary system, process and data system for all working organizations in Latin America. In North America, Unilever arrived at a territorial concurrence with Dell Computer Corp. to give and oversee PC supplies and help, including an engineering overhaul. Another territorial production network arranging result was created and actualized in the HPC business; Foods had gone live by the end of the first quarter of 2006 (Oreilly, 2013). In Asia Africa, the primary focus was to extend the entrance of the territorial standard provision portfolio. By the year end they had actualized the interest and supply system arranging instrument in thirteen nations and the Unilever standard information warehouse in fourteen nations, and twelve nations were utilizing the territorial ecommerce centre point. In India, a system to oversee valuing / advancements into their dealers, with a competence for e-Claims settlement and administration toward oneself was effectively taken off to 1500 stockists. This had to be completed at every one of the 6000 stockists by Report of the Directors Unilever Annual Report and Accounts 2005 13 March 2006. They had finished the execution of a SAP based system, which streamlines and harmonises processes across countries like Arabia, Israel and Turkey. This project was completed in extremely challenging conditions. An effort to standardise operational IT processes and techniques internationally began in 2005 and was conveyed on arrangement. They had set world-class targets for this programme and the executions in 2005 won the best extend of the year in the 2005 ITsmf honours. To back the improvement motivation, the inward administration system had a critical overhaul and has been sent to 16 000 clients around the world. Unilever endeavour to guarantee the items are protected and viable. Unilever are focused on making their items open and reasonable, and to advertising and conveying their profits in a proper responsible manner. Conclusion Having discussed the whole project we saw that even a company as big as Unilever can face serious problems of sustainability and loss of sales. In such a situation they came up with exclusive strategies to further market their product in order to boost their sales. They have a high brand image which has helped them to rule the market in the FMCG department. We saw their unique methods to regain their sustainability and how the company has continuously tried to grow in each and every sectors of its market. References Baker, R. (2012). Unilever: sustainability marketing is biggest challenge | news | marketing week. Retrieved from: http://www.marketingweek.co.uk/news/unilever-sustainability-marketing-is-biggest-challenge/4001322.article Chan, S. (2012). Unilever chief warns europe faces decade-long slump - telegraph. Retrieved from: http://www.telegraph.co.uk/finance/financialcrisis/9740115/Unilever-chief-warns-Europe-faces-decade-long-slump.html Conrad, C. & Thompson, M. E. (2013). The new brand spirit. Farnham: Gower Publishing Limited. Mohrman, S. A. & Shani, A. B. (2011). Organizing for sustainability. Bingley: Emerald Group Pub. Oreilly, L. (2013). Unilever offers marketing weight to help digital start-ups go global | news | marketing week. Retrieved from: http://www.marketingweek.co.uk/news/unilever-offers-marketing-weight-to-help-digital-start-ups-go-global/4008805.article Saunders, A. (2011). The mt interview: paul polman of unilever - management today. Retrieved from: http://www.managementtoday.co.uk/features/1055793/ Sharman, A. (2013). Unilever sales problems mount - ft.com. Retrieved from: http://www.ft.com/cms/s/0/bc9e7a68-3c73-11e3-86ef-00144feab7de.html#axzz2voyuBoJ4 Unilever.com. (n.d.). Our history | about us | unilever global. Retrieved from: http://www.unilever.com/aboutus/ourhistory/ Unilever.com. (n.d.). View brands | brands in action | unilever global. Retrieved from: http://www.unilever.com/brands-in-action/view-brands.aspx Vizard, S. (2013). Unilever’s marc mathieu: “the unilever brand is a trustmark for sustainability” | news | marketing week. Retrieved from: http://www.marketingweek.co.uk/news/unilevers-marc-mathieu-the-unilever-brand-is-a-trustmark-for-sustainability/4008621.article Read More