UNIVERSITY OF ZIMBABWE

FACULTY OF COMMERCE
UZ-TRAINING AND DEVELOPMENT UNIT

EXECUTIVE CERTIFICATE IN STRATEGIC PUBLIC RELATIONS AND

BUSINESS PROMOTION STRATEGIES

A SWOT Analysis of Unilever Zimbabwe’s Public Relations and Business

Promotion Strategies and the Recommendations.

Submitted In Partial Fulfillment of the Executive Certificate in Strategic Public

Relations and Business Promotion

By Lazarus Sauti

Supervisor: Mrs. Mrs. D. Zengeni

May 2016
A SWOT Analysis of Unilever Zimbabwe’s Public Relations and Business
Promotion Strategies and the Recommendations.
EXECUTIVE SUMMARY

Unilever Zimbabwe, a subsidiary of Unilever South East Africa, is one of the leading consumer
goods businesses in the country. The organisation manufactures as well as sells consumer goods
and its purpose is to set the highest standards of organisational behaviour including everyone
they work with. Further, Unilever Zimbabwe’s product takes in:

 Food brand.

 Home care brands.

 Personal care brands.

 Nutrition.

 Health, hygiene and beauty.

The organisation emphasise in creating a better future each day by fulfilling the consumer need
on the daily basis. Unilever Zimbabwe cares about its consumers by facilitating them to provide
healthy diets so that people will be healthier for the long time. This is in sync with the
organisation’s vision which is to galvanise its consumers to take a small part in daily action so
that will add a big difference for the world. Unilever Zimbabwe is consistently moving with the
lifestyle of its consumers. The organisation is intensifying new ways to improve its business. The
organisation believes in the quality of its brand and consistently moves with the diversity and
other technological changes in order to improve not only its business, but the quality of its
products.
ACKNOWLEDGEMENTS

I would like to acknowledge the contributions made to the outcome of this project by my
supervisor, Mrs. Dorothy Zengeni. She made the necessary comments that proved critical to the
quality of this work. Simple words of appreciation and thankfulness are not adequate to express
my sincere gratitude to her.
TABLE OF CONTENTS

Executive Summary 1

Acknowledgments 1

Introduction 1

Background 2

Vision 2

Mission 2

Core Values 2

SWOT Analysis 3-5

Recommended strategic direction 6

Conclusion 7

References 8
1.1 INTRODUCTION

A SWOT Analysis of Unilever Zimbabwe highlights business strengths that ensure long-term
success. Further, it identifies the relevant strengths and weaknesses (internal strategic factors)
and the opportunities and threats (external strategic factors). Unilever Zimbabwe’s SWOT
analysis also shows significant opportunities that the organisation can use for further local,
regional as well as international growth and expansion. Without doubt, Unilever Zimbabwe’s
business is in a strong position to withstand the threats in its external environment. However, the
organisation must consider all of the factors outlined in this SWOT Analysis and business
promotion strategies to direct its operations.

1.2 BACKGROUND OF THE ORGANISATION

Unilever Zimbabwe, a subsidiary of Unilever South East Africa, is a household name virtually
for every Zimbabwean national. Being a multi-national, no other company has achieved this
level of success. It is regarded as one of the most reputed multi-cultural companies of the world.
With its history of over 70 years globally, Unilever Zimbabwe has predominantly served the
Zimbabwean market since 1943 and is one of the few multi-national companies that never left
the country, but continued in both good and crisis times, to contribute positively both to
economic growth as well as employment creation. Unilever Zimbabwe’s array of products show
that the organisation produce household care, fabric cleaning, skin cleansing, skin care, oral care,
hair care, personal grooming, and tea based beverage products under worldwide famous brand
names such as LUX, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, All Clear, Vim, Surf
Excel and Rexona. The manufacturing also company employs nearly 700 people.

1.3 VISION

 To make sustainable living commonplace. We believe this is the best long-term way for
our business to grow.
1.4 MISSION

 To add vitality to life. We meet everyday needs for nutrition, hygiene and personal care
with brands that help people feel good, look good and get more out of life.

1.5 CORE VALUES

 Honesty.

 Integrity.

 Openness.

 Respect.

2.1 STRENGTH, WEAKNESS, OPPORTUNITIES AND THREATS (SWOT)

Harrison (2010) defines SWOT Analysis as an examination of an organisation’s internal

strengths and weaknesses, its opportunities for growth and improvement, and the threats the
external environment presents to its survival. It is the most renowned tool for audit and analysis
of the overall strategic position of the business and its environment.

SWOT Analysis is done as part of the overall corporate planning process in which financial and
operational goals are set for the upcoming year and strategies are created to accomplish these
goals. Its key purpose is to identify the strategies that will create a firm specific business model
that will best align an organisation’s resources and capabilities to the requirements of the
environment in which the firm operates.

Accordingly, SWOT Analysis is significant in helping the organisation to use its resources
efficiently (Harrison, 2010). Every organisation has a finite supply of manpower, production
capacity and capital. Evaluating the company’s strengths, therefore, helps it determine how to
allocate these resources in a manner that will result in the highest possible potential for revenue
growth and profitability (http://www.managementstudyguide.com/swot-analysis.htm). The
management team examines where the company can compete most effectively.
Further, SWOT Analysis is important in business performance as it lays the foundation for
evaluating the internal potential as well as limitations and the probable/likely opportunities and
threats from the external environment (http://www.managementstudyguide.com/swot-
analysis.htm). It views all positive and negative factors inside and outside the organisation that
affect the success. A consistent study of the environment in which the firm operates helps in
forecasting/predicting the changing trends and also helps in including them in the decision-
making process of the organisation.

2.1.1 PUBLIC RELATION AND BUSINESS PROMOTION SWOT ANALYSIS FOR

UNILEVER ZIMBABWE

A SWOT analysis of Unilever Zimbabwe depicts the conditions of the business, as well as its
external environment.

2.1.1.1 Strengths

The following strengths are significant in Unilever Zimbabwe’s consumer goods business:

 Good reputation. The organisation’s perceived good reputation as a global company

having strong brand portfolio, and successful in maintain strong relationship with
retailers is one of its major strengths.

 Strong brands. Unilever Zimbabwe has some of the strongest brands in the consumer
goods industry. This strength enables the company to penetrate markets and effectively
compete against other firms.

 Broad product mix. The broad product mix shows the extent of Unilever Zimbabwe’s
business growth. The company, for instance, has increased its product portfolio through
years of mergers and acquisitions, leading to organisational growth, as well as
corresponding increases in revenues.

 Economies of scale. Without doubt, economies of scale support production efficiency

necessary for competitive pricing strategies.
  Strong global market presence. Through years of international expansion, the company
has also increased its market presence, which is a strength that reinforces brand
popularity.

2.1.1.2 Weaknesses

Despite its strong market position, Unilever Zimbabwe has weaknesses that limit its potential
growth. The organisation must, therefore, address the following weaknesses:

 Imitable products. One of the organisation’s weaknesses is the imitable nature of its
products. For example, even though the company heavily invests in its product
development processes, other firms can imitate Dove and Rexona products.

 Weak distribution channels. Due to the current economic environment in the country,
Unilever Zimbabwe is facing weak distribution channels which cause low customer
retention.

 Limited business diversification. In spite of its broad product mix, Unilever Zimbabwe is
weak because of limited diversification in businesses outside the consumer goods
industry.

 Dependence on retailers. Unilever lacks direct and strong influence on consumers,

considering that retailers are the ones who directly affect buyers.

 High cost structure. The organisation’s high cost structure affects due to the import of
raw materials and advance technology.

Significantly, the above weaknesses emphasise the importance of diversification, innovation, and
enhanced marketing efforts.

2.1.1.3 Opportunities

The following opportunities are significant in Unilever Zimbabwe’s external environment:

  Business diversification. The company has opportunities to diversify by entering
businesses outside the consumer goods industry. Diversification reduces market-based
risks and improves business resilience.

 Product innovation for health. Product innovation can increase Unilever Zimbabwe’s
product attractiveness by addressing the needs of increasingly health-conscious
consumers.

 Business enhancement for environmental conservation. Unilever Zimbabwe has an

opportunity to make its business more sustainable and environmentally friendly to attract
and retain environmentally conscious consumers.

 Market development. Additionally, market development can grow Unilever Zimbabwe’s

business by increasing revenues from the sale of its current products in new market
segments.

 Unilever Zimbabwe has an advantage of changing its market segment by taking into
consideration the specific health conscious group and young generation who can easily
manage to buy the products.

2.1.1.4 Threats

A variety of external factors can limit Unilever Zimbabwe’s business performance. This SWOT
Analysis model, thus, considers these external factors as threats that the company must
strategically tackle. Consequently, the following are the threats relevant to Unilever Zimbabwe’s
consumer goods business:

 Tough competitive rivalry. Unilever Zimbabwe faces tough competition, which is a threat
based on the strengths of other firms in the industry. Competitors threaten to reduce the
company’s market share as well as corresponding financial performance.

 Product imitation. Product imitation is also a major threat against Unilever. For example,
local firms can develop products highly similar to Unilever’s.
  Increasing popularity of retailers’ house brands. Retailers impose a threat by selling their
own brands. These brands are known as house brands, store brands or generic brands.

3.1 RECOMMENDED STRATEGIC DIRECTION

This SWOT Analysis of Unilever Zimbabwe highlights a number of internal and external
strategic factors that managers must include in strategy development. The weaknesses of limited
business diversification and imitable nature of products are significant because they influence
business stability and performance. In this regard, a recommendation is to diversify Unilever
Zimbabwe’s business through acquisition of related firms not in the consumer goods industry.
Diversification is a safety net against downturns in a single industry. A conservative reason to
diversify is to avoid major repercussions when an industry or sector suffers a downturn. Another
reason to diversify is that under-served locations or customers have available revenue for
somebody in your industry to take advantage of. 

Further, Unilever Zimbabwe needs to consider product innovation as an opportunity to boost

business performance. Product innovation is as central to the success of most companies. New
products promote company growth, generate increased sales and profits, and are a crucial
component in business planning. New product development is essentially an interdisciplinary
activity requiring input from top management, scientific, technical, marketing, finance, sales and
other personnel. Successful product innovation depends on a variety of factors which include the
nature and quality of information acquired or known during the new product process, the
proficiency of process activities, characteristics of the marketplace, the compatibility of the
resource base of the firm with new product project requirements, the level and complexity of the
technology used, organisational structures of the firm, as well as the innovativeness of the
product itself (Cooper 1984, Crawford 1980).

It is also recommended that the company must use its strengths, such as economies of scale, for
product innovation to address competition and the threat of imitation. To deal with imitations,
Unilever should stay close to its customers. They will be able to tell the organisation what they
will need next, or at least identify the problem they would like the company to solve. It is always
easier to solve for an existing market need than it is to think of another new idea out of whole
cloth. 

Unilever Zimbabwe should also expand its target market towards the rural people. The
organisation should also conduct different promotional activities in rural fairs and socially
responsible promotional activities to attract rural consumers and social awareness.

4.1 CONCLUSION

It is apparent that Unilever Zimbabwe must use its strengths, such as economies of scale, for
product innovation to address competition and the threat of imitation. The Public Relations (PR)
department, together with the marketing and promotion department, therefore, needs to urge
management to diversify Unilever Zimbabwe’s business through acquisition of related firms not
in the consumer goods industry. These departments should also encourage management to
seriously consider product innovation as an opportunity to boost business performance.
5.1 REFERENCES

Crawford, C.M. (1980). Defining the charter for product innovation. Sloan Management
Review, 22, 1, Fall, 3–12.

Cooper, R.G. (1984). New product strategies: what distinguishes the top performers? Journal of
Product Innovation Management, 1, 3, 151–164.

Harrison, J. P. (2010). Essentials of Strategic Planning in Healthcare. Chicago: Health

Administration Press.

Kirkpatrick, S. (2016). Build a Better Vision Statement: Extending Research with Practical

Advice. Rowman & Littlefield.

Leigh, D. and Pershing, A. J. (2006). SWOT analysis. The Handbook of Human Performance

Technology, 1089-1108.

Unilever – Investor Relations – Annual Reports and Accounts Overview

Valentin, E. K. (2001). SWOT analysis from a resource-based view. Journal of Marketing

Theory and Practice, 54-69.

www.managementstudyguide.com/swot-analysis.htm

www.unilever.com