VIETNAM MARITIME UNIVERSITY

INTERNATIONAL SCHOOL OF EDUCATION

GROUP ASSIGNMENT
TOPIC: UNILEVER

COURSE: INTERNATIONAL BUSINESS 1

INSTRUCTOR: MSc. BUI THI THUY LINH

ĐÀO THANH XUÂN STUDENT ID: 80472

NGUYỄN NGỌC TRÂM STUDENT ID: 80052
ĐẶNG KIM NGỌC LAN STUDENT ID: 78555
GINIBO AGHOGHO MERIT STUDENT ID: 81725

Haiphong, 7/2021
 I. INTRODUCTION OF UNILEVER

Unilever became based on September 2, 1929, with the aid of using the
merger of Dutch margarine maker Margarine Unie and British cleaning soap
maker Lever Brothers. During the second one 1/2 of the 20th century, the
business enterprise an increasing number of various from being an
insignificant producer of oil merchandise and the business enterprise extended
its operations worldwide. Unilever is a British and Dutch multinational
business enterprise specializing withinside the manufacturing of client items
consisting of cosmetics, cleansing chemicals, toothpaste, shampoo, food....
The business enterprise has the very best price seven in Europe. Unilever is
one of the oldest multinational corporations. Its merchandise are to be had in
approximately a hundred ninety countries, and extra than 90% of the business
enterprise's income are via distributors. About 42% of the world's client items
are Unilever merchandise. The business enterprise generated sales of US
$forty seven billion in 2005, and posted a internet earnings of $4.3 billion.
This business enterprise owns many large-scale corporations generating client
items, food, laundry merchandise, cosmetics of the world. Unilever employs
approximately 180,000 human beings and had income of almost forty billion
euros or extra than sixty two billion euros in 2005.

 Main service

Unilever is organized into four main divisions: Personal care (manufacturing

and selling skin care and hair care products, deodorants and oral care
products); Food (manufacturing and selling soups, bouillons, sauces, snacks,
mayonnaise, salad dressings, margarines and spreads); Beverages
(manufacture and sale of ice cream, tea beverages, weight management
products and nutrition-enhanced staples sold in developing markets); and
Home Care (manufacturing and selling home care products including
powders, liquids and capsules, bar soaps and other cleaning products). For the
financial year ended 31 December 2013, Unilever had total sales of 49,797
billion euros, of which 36% came from Personal Care, 27% from Food, 19%
from Beverage and 18% from Care squirrel at home. Unilever invested a total
of 1.04 billion euros in research and development in 2013. Main products
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available in Vietnam: Lipton tea; Omo, Viso, Comfort, Surf washing powder;
Lifebuoy, Hazeline, Dove shower gel; Clear shampoo, Sunsilk, P/S
toothpaste, Closeup; Pond's cosmetics.

 Unilever's office

In 2011, Unilever Group opened its headquarters building in Zurich,

Switzerland. With its innovative design, this is considered one of the most
inspiring offices in the world. This building is built on a 2,300 square
meter site. Here, the company's employees are made. Working in a
colorful environment. Connect Zones for collaboration and teamwork.
Vitality Zones are for social activities and re-work, Quiet Zones are areas
for employees to relax. Bright colors and bold design lines bring strong,
vivid inspiration to the workers.

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  Organizational structure:

UNILEVER
Functional management team

Business line Market Global business Functional parts

unit development service
organization

Ireland Taking care of customer

Healthcare product development
Korea Global Leadership
Deodorant products Finance
Neverlands Team
Teeth care Human Resources
Italia Area leadership
Soap, body cream team Information technology
US
Laundry products Global ownership Market research
process
Home care products Relations with the
government
Cleaning products
Provide products
Kitchen tools
Public Relations

 Business result

For the financial year ended 31 December 2013, Unilever had total sales of
49,797 billion euros, of which 36% came from Personal Care, 27% from
Food, 19% from Beverage and 18% from Care squirrel at home. Unilever
invested a total of 1.04 billion euros in research and development in 2013.

Unilever achieved sales of 51.98 billion euros in the 2019 financial year, with
an annual profit of 5.63 billion euros. The total balance sheet is 64.81 billion
euros, with an equity ratio of 20.36%. At year-end, the price-to-earnings ratio
was 23.80 and the dividend yield was 3.16%. Unilever employed 153,000

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 people at the end of 2019 and reported staffing costs of €6 billion. Revenue
per employee is 339,739 euros.

The events of 2020 have challenged the world in ways few could have
foreseen. The world needs businesses like Unilever more than ever. Unilever
has responded with speed and agility to protect lives and livelihoods and grow
its business. Promote a progressive agenda on issues such as climate, social
inequality and the future of work. And serve consumers through purposeful
brands that are more relevant than ever.

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Revenue 46.467 51.324 49.797 48.436 53.272 52.713 53.715 50.982 51.980 50.724

Net Income 4.252 4.480 4.842 5.171 4.909 5.184 6.053 9.389 5.625 5.581

Assets 29.583 30.351 28.131 28.385 32.279 35.873 37.108 39.684 64.806 67.659

172,00 173,00 169,00 158,00

Employees 171,000 174,000 169,000 165,000 153,000 155,000
0 0 0 0

[1]

II. STRATEGY ANALYSIS

1. Competitive strategy

Unilever uses broad differentiation as its generic strategy for competitive

advantage. The main focus of this strategy is its emphasis on features or
characteristics that make the company’s products stand out against
competitors. For example, Unilever produces personal care products like

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Dove Cream Bars to satisfy consumers’ need for soaps that are not harsh or
drying. Despite their relatively high selling prices, such Unilever products are
competitive because they stand out from a majority of soaps that focus more
on cleaning than moisturizing. In this strategy, the company attracts
customers to specially designed products. Thus, such a generic strategy aligns
with Unilever’s vision statement and mission statement, which aim to support
global sustainability and to increase vitality in consumers’ lives, respectively.
In Vietnam, with the goal of reaching the vast majority of Vietnamese
consumers and capturing as much of the market share of personal and home
care products as possible, Unilever Vietnam has implemented lots of different
flexible competitive strategies to grow more and more in the market. But it
can be seen that, in parallel with the corporate-level Sustainable Development
strategy, most of Unilever's brands are trying to orientate to develop the Blue
Ocean strategy, both to reduce production costs and create differentiate
products and bring benefits and efficiency to the community and living
environment of Vietnamese people across the country.
Table 1. Competitive strategy of products
Product line Brands Featured Competitive
classification strategy
Food line for Knorr Previously, the Vietnamese Blue ocean
processing women's condiment portfolio Strategy
and eating consisted of basic products
and units such as salt, sugar,
pepper, soup powder and
monosodium glutamate. This
is an opportunity for a
healthier and tastier
alternative. In 2001, Unilever
launched Knorr Seasoning
with the positioning: Tastier,
more nutritious. In 2009,
Knorr developed Shiitake and
Seaweed products, bringing a
fresh and sweet taste
specifically to vegetable
dishes. At the end of 2010,
Knorr Tenderloin, Tub and
Marrow was introduced to the
market, bringing the perfect
combination of 3 premium
ingredients to ensure the
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 delicious taste of dishes.
Lipton Lipton is one of the most Blue ocean
influential beverage brands in Strategy
the global tea market,
including tea bags and
healthy beverage alternatives
to carbonated water. Lipton
gold is everywhere with
traditional campaigns that
represent what Lipton is
about - bright, full of life, and
friendly to nature.
Line of LUX LUX is not simply a line of Differentiati
hygiene and fragrant shower gel, LUX is on strategy
personal care an irresistible Perfume that and focus
products you can immerse yourself in
every time you shower. LUX
is made up of the unique, the
crystallization of iridescent
art on every drop of product
and the many ingredients that
pamper the skin. All were
created with the hope of
exceeding the expectations of
Vietnamese women. “Just a
little LUX, the delicate and
noble experience touches
your skin every time you
shower. That is a special
feeling that only exists in the
world of LUX.”
Lifebouy Lifebouy - The world's No. 1 Blue ocean
antibacterial brand The need Strategy
for hygiene and health is a
fundamental desire of every
person - regardless of age or
economic status. Lifebuoy
understands this need and
remains committed to
bringing hygiene and health
around the world. Lifebuoy
has an inspiring vision for a
healthier society and
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 ultimately more importantly
this is the driving force
behind the brand. To realize
this vision, Lifebuoy is
always innovating and
providing accessible health
and hygiene products to a
wide range of consumers.
Lifebouy's environmental
protection campaigns in
Vietnam: In 2009, the fund of
1,000,000 bars of soap was
mobilized "For a healthier
Vietnam". As of 2013,
Lifebuoy has donated more
than 5 million bars of soap in
health and hygiene
improvement programs and
disease prevention activities.
Lifebuoy has supported the
Ministry of Health against the
flu pandemic and hand, foot
and mouth disease by
spreading the habit of
washing hands with soap to
fight germs.
Sunsilk Sunsilk - There is nothing Differentiati
better than when every day is on strategy
a beautiful hair day With the and focus
combination of the world's
leading hair care experts and
the strength of products to
help smooth hair all day long,
Sunsilk brings to every girl
Vietnam has silky soft hair
and accompanies the girls on
the journey of discovering
new things to have great
experiences in life.

Line of Omo Viet gives every family Differentiati

laundry absolute peace of mind to on strategy
products for freely explore and stain, all and focus
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 clothes and stubborn stains. Every child
household has a right In an In-depth
items Child Development Study,
1,500 mothers shared their
hopes and anxieties for their
children, of which 63% said
they did not want to. My child
lost in childhood. This truth is
the inspiration for Unilever to
create the campaign "Every
child has rights", focusing on
providing children with the
freedom to experience, learn
and grow. Green Planet Plan
The green planet plan is a
focus of the OMO brand to
minimize the impact on the
environment through the
reduction of packaging waste,
optimal washing ability in hot
conditions. low temperature,
helping to save energy and
"lighten" the monthly
electricity bill

2. Organizational strategy

There are four types of organizational strategies pursued by companies:

Defenders, Prospectors, Analyzers and Reactors. Unilever are a company that
uses the “Prospectors” organization type. Prospectors are organizations which
almost continually search for market opportunities, and they regularly
experiment with potential responses to emerging environmental trends.

3. Unilever's business strategy:

Outstanding capabilities of the company:

- Is a multinational company and operates in many fields, mainly trading and

producing and consuming cosmetic and food products.

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 - Entering the Vietnamese market and operating as a foreign direct
investment company, the company has clearly defined itself as a manufacturer
and consumer of personal and household care products. Vietnam head.

- The company has superior competitiveness compared to other competitors

in the production of personal and home care products in Vietnam because:

• The company itself is the holder of the above source technologies world
scope for the production of these products.

• Labor and material costs are very cheap in Vietnam.

 The company can manufacture and produce personal and household

care products family with good quality at low cost, serving the
majority of Vietnamese people. Thus, it can be seen that the company
lays the basis for profit by reducing production costs for 1 unit of
product and adapting market its products to the market in which it does
business.

Diagram 1 : Unilever's product line around the world

( Source: https://hbr.edu.vn/marketing/chien-luoc-kinh-doanh-hieu-qua-cua-
unilever.html)

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3.1: Analysis of the macro environment:

Natural environment:

- Vietnam is located in a relatively favorable position in the region, has a long

coastline, has many large seaports that are convenient for exporting goods
when Unilever Vietnam begins to focus on exports in the future. near future.

- The hot and humid tropical climate is not suitable for some products
originating from the parent company in Europe.

b, Political-legal factors:

- Politics: Vietnam is a country with very high political stability, people have
good awareness and views about foreign direct investment and respect these
companies, so the construction and into a long-term business strategy in
Vietnam is completely grounded.

- About the law: Although the law of Vietnam still has many troubles and
inadequacies causing many difficulties for the company, but the company
finds that the investment of the company's entry into Vietnam is welcomed by
local officials, and in accordance with the foreign investment law here, plus
the company will have a better understanding of the investment law as well as
the business environment in Vietnam.

c, Economic environment:

 Advantage:
- The policy of Vietnamese ministries and sectors is to jointly build
Vietnam's economy in the trend of industrialization and modernization; in
which priority is to attract foreign investment, especially from
transnational companies. and multinationals like Unilever to increase
budgets.

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- The domestic market (wholesale, retail, goods movement...) has developed
much more. And the infrastructure in big cities, especially Ho Chi Minh City,
has been greatly invested.

 Disadvantage:
- The low economic growth rate of Vietnam shows that the product
consumption capacity is not high.
- Bringing the Internet into business is not possible for Unilever, although
the company has repeatedly mentioned this goal as a successful way to
reach customers and promote products in industrialized countries..
d, Science and technology:

Technology is an extremely important factor for a company's competitive

advantage, it is a key driver in globalization. When companies select and
apply modern techniques in marketing activities. They realize that operating
costs will be reduced and efficiency increased. The most commonly used
programs in design are Adobe Illustrator, Photoshop, Acrobat. Final Cut Pro
software is used in digital video editing and Eovia Corp's carrara is used for
3-D image processing, animation and performance.

3.2 : Unilever's direct manufacturing strategy:

- The company has more than 100 enterprises providing materials and
packaging, transferring technology, moving to the form of cooperation in
production and processing and most recently the form of cooperation in the
future. in the long-term strategic cooperation agreement signed between
Unilever Vietnam and Vietnam Chemical Corporation (Vinachem) 2009.

- On average, every day, about 35 million Unilever products are delivered

to and used by consumers nationwide

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 - Products must change constantly to attract more customers, meet the
increasingly diverse needs and potential needs of customers

4. Unilever's new strategies in recent years, under the impact of covid-19:

With the current economic situation being greatly affected by the current
Covid-19 pandemic, changing a new business strategy will help Unilever a
lot. Unilever changes the priorities of its business strategies based on the
conditions of the consumer goods market. The overall combination of
competitive strategy and intensive growth strategies ensures Unilever's
continued success in its global operations.

Diagram 2 : Porter’s Five Forces Model

( Source: http://team2yoaddiction.blogspot.com/p/business-strategy.html?
m=1)

- Unilever's overarching business strategy (based on Michael Porter's

model) builds competitive advantage by satisfying specific consumer
needs and preferences. In Porter's model, general strategies are used to

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 ensure the competitiveness of the organization, which is necessary for the
growth and resilience of the business.
- Using a business strategy (Porter model) that directly addresses market
needs, Unilever maintains a competitive edge in the global consumer
goods industry. Such a competitive advantage also helps Unilever adopt
intensive growth strategies tailored to business needs, thereby supporting
growth.
- In addition, Unilever also offers many effective new strategies and brand
development:

Market penetration strategy In this business strategy, the company

increases sales volume to improve revenue
and business growth respectively. The
strategic objective associated with this
business strategy is to grow the business
through aggressive marketing of Unilever
products in the global consumer goods
market.
Customer-centric business strategy Unilever changes the priorities of its
business strategies based on the conditions
of the consumer goods market. The
holistic combination of competitive
strategy and intensive growth strategies
ensures Unilever's continued success in its
global operations.
Secondary intensive strategy Product development acts as a secondary
intensive strategy that Unilever uses to
grow its business. The company adopts
this business strategy by introducing new

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 products that meet the needs of consumers.
Diversification (Strategy to support) Unilever uses diversification as an
intensive growth support strategy. This
business strategy focuses on establishing
new businesses to grow the company.
Online business strategy This intensive strategy leads to the
strategic goal of growing the company
through continuous product innovation.
Such innovation improves product mix in
Unilever's marketing mix, giving the
consumer industry a competitive
advantage.

III. CONCLUSION

Sum up interesting things you have learnt through this research.

Summarize important lessons you learnt through this topic.

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Page 15
 REFERENCE

[1] "Unilever Dividende | KGV | Bilanz | Umsatz |

Gewinn". boerse.de (in German). Retrieved 28 December 2020.

[APA citation style]

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