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Unilever

Unilever SWOT Analysis
BusinessManagementMarketingSWOT & PESTLE Writing

SWOT Analysis of Unilever That Make Sustainable Living

by Shamsul

SWOT Analysis of Unilever

 
Unilever is one of the best multinational consumer goods companies and operates in more than 190 countries around the globe. This company is the manifestation of quality and excellence. Its track record in fast-moving consumer goods is exceptional, and it generates revenue in nearly every country of the world. The company’s biggest strength is its global presence with different mindsets according to the country’s culture. Unilever has successfully managed its business during recessionary situations. However, they cannot ignore growing threats in the international markets. Emerging local players are one of the biggest threats for Unilever. Here, we will utilize SWOT Matrix to identify the company’s business scenarios. We will conduct a SWOT analysis of Unilever. It is based on its strengths, weaknesses, opportunities, and threats. Here we go,
  
Company Name: Unilever
 
Founders: Antonius Johannes, Jurgens, Samuel van den Bergh, Georg Schicht
 
Founded: Sep 2, 1929, United Kingdom
   
 
Headquarters: London, United Kingdom
 
Parent Company: Unilever Plc
 
CEO: Alan Jope (Jan 1, 2019-)
 
Type: Consumer goods
   
 
Sector: FMCG
 
Tagline: Feel good, look good, and get more out of life.
 
Unique Selling Proposition: Good brand recall value and sustainable practices
 
Customers: Upper, middle, and lower class people
 
Target Consumers: Individuals and households
   
 
Number of Employees: 149000
 
Revenue: 52.44 billion EUR (2021)
 
Net Income: 6.621 billion EUR (2021)
  
Strengths of Unilever | SWOT Analysis of Unilever
 
  • The company’s strong presence around the world is one of its major strengths. Its extensive global reach and footprint allow them to generate massive revenue. That’s why its brand recall value and image are very powerful in local and international markets.
 
  • Unilever has a broad product portfolio with quality. Its diversified product range makes it highly impactful and unique. So, it has positioned itself in the competitive market excellently. Their offers are according to the preferences of consumers.
 
  • Its R&D sector has contributed a lot to its overall success. Just because of research and development, the company is producing innovative and high quality products at cheaper costs. That’s why it is a game-changer in every country.
 
  • The company has a competitive edge over competitors because of its flexible pricing strategy and expertise in various sectors like manufacturing, distribution, and selling. Due to these effective policies, the company is present in every corner of the world.
 
  • Unilever has several manufacturing plants in more than 270 different locations of the world. They are taking advantage of this thing and manufacturing products seamlessly.
 
  • The biggest strength of Unilever is that they combine global ideas with local execution. They utilize “Glocal” strategies to win the hearts and minds of customers. That’s why customers love to buy and consume its products. Such loyalty from fans makes the company successful in the competitive market.
 
 
   
 
Weaknesses of Unilever | SWOT Analysis of Unilever
 
  • The fast-moving consumer goods sector is uber-competitive. The company’s biggest rival is P&G, with a diversified product portfolio. Nestle is another big trouble for the company. They are eating each other’s market share to take the lead in the market in terms of revenue and profits. On the other hand, the presence of local players in the market also weakens the business performance of Unilever.
 
  • Unilever’s products can be replaced with alternates in emerging markets such as Asia and Africa. The foothold of domestic players is huge in these regions and it shows the weakness of Unilever.
 
 
Opportunities for Unilever | SWOT Analysis of Unilever
 
  • In the emerging markets, people want to adopt a western lifestyle, and it opens several doors of opportunities for Unilever. It is happening due to globalization and global media. Moreover, Unilever can target those customers who are really inspired by the western lifestyle by offering products according to their tastes and preference.
 
  • Countries like India, Pakistan, China, and so on have so much potential for the company for its growth and expansion. The company can generate trillions of dollars from these emerging markets. They can capture a strong customer base from these markets. It is one of the biggest opportunities for the company.
 
  • Unilever can target health-conscious consumers by offering good quality products. Because they can manufacture special products for health-conscious consumers to win their hearts.
 
  • Unilever’s response towards the environment, sustainability, and social responsibility is significant. Surely, they are adopting ethical ways to produce goods. In this way, the company can get the attention of people also who prefer responsibly made products.
 
 
Threats to Unilever | SWOT Analysis of Unilever
 
  • The current economic recession has created a big dent in the growth of many FMCG companies. Unilever is also facing the perks of economic recession. If it goes long, it can threaten the company’s overall profitability. Every company is trying to provide better quality at lower prices to retain consumers. Such activities are not good for the company.
 
  • There is no doubt about it that Unilever is still way beyond its competitors like P&G and Nestle. The increasing awareness is creating a bad impact on the business performance of FMCG companies. Criticism from people over its policies and practices are also creating a bad image of the company. The company needs to follow effective strategies and practices to stay competitive in the market.
 
  • The constant threat from local players is another big trouble for the company. They are providing better quality at lower prices. They are disturbing the revenue stream of the company in many ways. Local players don’t need to pay international tariffs and taxes as compared to Unilever, so their products are much cheaper.
 
  • The entry of several Asian multinational organizations in the FMCG sector has also put the business performance of Unilever into trouble. Certainly, these emerging companies are one of the company’s significant threats and affect its international foothold. They are dominating in different western markets, which is not a good sign for the company.
 
 
Summary | SWOT Analysis of Unilever
 
The company has been in the FMCG sector for many decades. However, it is doing well in several countries, but it is facing severe competition from competitors like Nestle and P&G. Thus, the company should target emerging markets like India and China that can give Unilever much needed boost. We are pretty sure that it will make a strong comeback.
 
 
 
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  Unilever PESTLE  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTLE Analysis of Unilever | Largest Consumer Goods Corporations in the World
 
 by Shamsul   
 
 
 
 
 
 
PESTLE Analysis of Unilever
 
 
Unilever is a leading British consumer goods company with a strong presence in 190 countries. There is no doubt about it that it is one of the largest consumer goods corporations in the world. Many brands are under Unilever, such as Dove, Sunsilk, Magnum, etc. Being a multinational organization, it has strong connections with other companies and service providers that run its operations and distribution network. They must follow the rules of the country in which it operates to minimize the risk of lawsuits. They should develop new products to attract new customers. In short, they need to work on a winning business strategy. This PESTLE analysis of Unilever will help the company to set its position in the competitive market. PESTLE stands for political, economic, social, technological, legal, and environmental factors.
 
 
Political Factors | PESTLE Analysis of Unilever
 
American and EU Laws:
 
Factors like American and European Union laws have the greatest impact on the business performance and working of the company. They have to abide by their trading rules and regulations for seamlessly running a business. If they don’t follow these guidelines, the company can face legal issues. They could face fines and bans. Moreover, the company is highly exposed to regional or local laws as well. They are responsible for the distribution of the company’s products. On the other hand, factors like trade, imports, and exports laws could also hinder the performance of the company.
 
 
Economic Factors | PESTLE Analysis of Unilever
 
Competition:
 
The overall situation of the economy of the country predicts the buying power of customers. If the economy is not good, then people don’t buy expensive products. Such scenarios decide the future of the company in the country. Nowadays, customers love buying cheaper but quality-based products. There are so many companies that provide such products at lower costs. So, the competition is very stiff in some markets like the EU, America, and Asia.
   
 
Moreover, the company’s overall manufacturing power and distribution directly impact the products. It can create a harmful impact on the profitability of the company. If the company suffers in any market, the other one will grow. In short, Unilever is at the risk of consumer crazes and inflation rates.
 
 
Social Factors | PESTLE Analysis of Unilever
 
Focus on Brand Image:
 
Like so many FMCG brands, the company has built a strategy to emphasize developing a powerful image. They pay huge attention to environmental and social factors because they directly impact people. That’s why most of its products are for well-being and personal care. They desire to assist people in looking and feeling well. Moreover, they want to change the lifestyle of people with products. Dove, Sunsilk, and many other products are the proof of this thing. For proof, you can see its tagline.
 
 
Technological Factors | PESTLE Analysis of Unilever
 
Automation is Key:
 
Since its inception, the company has been producing innovative and high quality products. They also use various online platforms for selling these products. Moreover, the company has built a strong digital marketing strategy and selling method. They believe that automation is the only way to get success. They use innovative ways to produce products. The Unilever company distributes products across the globe quickly. If something bad happens in this segment, they may face poor profit margins and negative cash flow. This wouldn’t be good for its brand image and profitability.
   
 
 
Legal Factors | PESTLE Analysis of Unilever
 
Never-Ending:
 
Unilever has more than 400 brands under its portfolio. The brands range from health, personal care, well-being, food, etc. The company is highly exposed to various legalities and laws. The company must follow copyright and intellectual property rights. They should keep taxes, interest rates, employee safety, and health laws in mind, both regional and international.
 
 
Environmental Factors | PESTLE Analysis of Unilever
 
Heavy Emphasis on Sustainability:
 
The company is investing in renewable energy sources and sustainability programs. Indeed. they manufacture products that are safe for customers. They are using eco-friendly materials and packaging in some of their products. So, the brand’s overall perception is quite friendly to the environment.
 
 
Conclusion:
 
Unilever is a leading name in the consumer goods sector with an amazing product portfolio and a strong global presence. The company’s overall image is highly positive in the eyes of customers. They are helping customers live better lives. But, customers need high quality products at lower prices, and Unilever’s competitors are taking advantage of this thing. Moreover, the company is heavily investing in sustainability which is a better sign of its progress.
   
 
 
 
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  Marketing Strategy of Unilever  
 
 
BusinessManagementMarketingWriting
 
Business & Marketing Strategy of Unilever
 
 by Shamsul   
 
 
 
 
 
 
Marketing Strategy and Marketing Mix of Unilever (4Ps)
 
 
Unilever is one of the leading fast moving consumer goods (FMCG) companies. This British company is headquartered in London. Currently, more than 400 brands are working under the name of the company in the world. It has a solid presence in 190 countries with a strong recall value. Read the Marketing Strategy of Unilever in detail.
 
Unilever’s marketing strategy and marketing mix is based on four important Ps: Product, Price, Place, and Promotion. These factors cover the marketing mix and strategy of the company. They help in building future strategies for the company. So, the importance of these four factors is huge. They play a huge role in the success of Unilever. They can position themselves in the competitive market to achieve business goals. Here is the complete marketing strategy and marketing mix of Unilever.
 
 
Product Strategy of Unilever:
 
The company has 4 strong brands: water purifier, food, personal care, and refreshment. They all are the company’s most-selling brands and help it generate significant revenues. Currently, nearly 400 brands are working under Unilever. It shows the power of the company in the fast moving consumer goods sector. On the other hand, some of its brands like Sunsilk, Omo, Surf, Knorr, Lipton, Magnum, and so on are best-selling.
   
 
Foods:
 
Most of the company’s revenue comes from food brands. The bestselling brand in the food sector of Unilever is Knorr, Rama, and Hellmann. They help to generate major revenues for the company.
 
Home Care:
 
It is another major category of Unilever that has strong recall value. Surf and Omo are two major in-home care brands that generate huge profits for Unilever.
 
Refreshment:
 
It is also a huge revenue contributor for the company with a big turnover. Brands like Magnum, Lipton, and Heartbrand are some popular ones in this segment. Also, the company is introducing innovation in these brands by offering different varieties and flavors.
   
 
Personal Care:
 
When it comes to the most-selling category of Unilever, personal care comes at the prominent spot. It holds a huge turnover with plenty of offerings like Sunsilk, Dove, Axe, Rexona, and so on. To be honest, the personal care category of Unilever is really broad.
 
 
Price Strategy of Unilever:
 
In order to understand the price strategy in the marketing strategy and marketing mix of Unilever, you need to understand the competitiveness of the market. The FMCG sector is really busy with so many giants like P&G and Nestle. The company sets pricing according to the offerings and pricing of competitors. Some of its products are very expensive but they are designed for premium customers. Most of the products are very affordable, which is why customers love purchasing its products. On the other hand, the company has countless products and services. They target every segment and fulfill their demands. So, pricing plays a crucial role in the marketing mix of Unilever.
 
 
Place Strategy of Unilever:
 
The company has a presence in approximately 190 countries in the world. They have a strong network of distributors and retailers in the world. So, Unilever takes advantage of this network to deliver its products in every nook of the world. Plus, they have several manufacturing plants in various locations of the world. It helps the company to distribute its products without paying too much. As a result, they provide affordable products to customers. They also have an excellent network of distributors along with direct outlets. The company has 45 carrying and forwarding agents in India along with 4000 stockists.
 
 
Promotion Strategy of Unilever:
 
When it comes to spending on marketing, Unilever is one of the largest spenders. They spend approximately 8 billion EUROS every year on marketing. They exploit digital and ecommerce platforms to sell their products. Uniliver uses the latest technologies to drive sales. They are also conducting digital campaigns to increase brand awareness. Many celebrities and famous personalities are brand ambassadors of Unilever. They promote the company’s products and offerings. Also, the company utilizes print media, TVCs, radio, hoardings, and other platforms to advertise products. This kind of strategy has helped the company to boost its annual revenue and net profits. Plus, its global presence is increasing day by day. As a result, it is still competitive in the FMCG sector.
   
 
 
 
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Do you want more advice? Do you have good practices to share? Express yourself in the comments.
 
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