Professional Documents
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Dhaifina Idznitia
UNILEVER ANALYSIS
Nurul Fithri Sylvani
Amasel A. Swasono
Isradila
Lui Anbar Rhainata
COMPANY PROFILE
PT Unilever Indonesia Tbk is one of Indonesia’s leading Fast
Moving Consumer Goods (FMCG) companies. The Company’s
portfolio of Home and Personal Care as well as Foods and
Refreshment products is distinguished by many of the world’s best
known and most trusted brands, including Wall’s, Lifebouy,
Vaseline, Pepsodent, Lux, Pond’s, Sunlight, Rinso, Blue Band,
Royco, Dove, Rexona, Clear and others.
Line of Business: Manufacturing, marketing and distribution of
consumer goods including soaps, detergents, margarine, dairy
based foods, ice cream, cosmetic products, tea based beverages
and fruit juice
Ownership: Foreign Direct Investment
Date of Establishment: 5 December 1933
Stock Exchange Registration: 11 January 1982
Stock code: UNVR
UNILEVER’S VISION
ELEMENT
To earn the love and respect of Indonesia by touching the lives of every
Indonesian every day .
Focus :
The vision of Unilever is specific directed to Indonesian. It can be seen clearly
that the objective focuses on providing good products for Indonesian.
Flexible :
It can adapt with the things happen everyday
Executable :
The statement of Unilever’s vision is realistic by looking at the words “by
touching the lives of every Indonesian every day.
Easy to communicate :
It is simple vision statement and easy to understand because it stated clearly
that the focus is for Indonesian.
MISSION ELEMENT
PRODUCT
S
CUSTOM
MARKET
ERS
TECHNOL
EMPLOYEE
OGY
MISSION
ELEMENT
SURVIVAL
PUBLIC
GROWTH
IMAGE
PROFIT
SELF PHILOSOPH
CONCEPT Y
UNILEVER’S MISSION
ANALYSIS:
We work to create a better future every day
Mission element:
Philosophy: The mission above is about philosophy. Unilever wants
tell consumer that their product is good. With the philosophy, they try
to sell good products that can affect to the customers future.
Public Image: The mission is not only telling about their philosophy
but also public image. Because they want to have their customers’
trust that they can give good product to the customers.
We help people feel good, look good and get more out of life with
brands and services that are good for them and good for others.
Mission Element :
Customer: Focus the business on satisfying customer needs instead
of spotlighting your product or service, The Unilever focus on brands
and services that are good for their customer, to make them look
good and feel good. That’s what the customer need.
Employee: The Unilever mission statement motivate their employee’s
significant work to serve better and how the mission contributes to
people’s lives.
Technology: The Unilever’s mission is produce brands and services
that are good for their customer and good for others. In fact,
producing good brands and services must use a great technology.
So, in their mission they success to describe that they use great
technology to produce their brands and services.
Public image: Companies also need develop their image. I think the
Unilever success to deliver their image to the consumer because they
We will inspire people to take small every day actions that can add
up to a big difference
In unilever mission point 3, they explain their customer, which is
Indonesian people in all of aspect.
Mission element:
Public image: in their mission they success to build an image to their
customer that they can inspire people to take small action that can
make a big different change for the world.
Overall 14 14
DESCRIPTION
Exit barrier are factors which make it difficult for a
business to contemplate leaving a particular industry or
market. As already mentioned, Unilever is one of the
leading companies in food business. It already competes
with other food giants (Nestlé, Kraft Foods or Mars
Foods). Due to positions of the mentioned companies, it
would be difficult for leaving the market because they
already have high in assets specialization, High in cost to
exit.
AVAILABILITY OF
SUBSTITUTES
Current Future
Availability of close 2 3
substitutes
User’s switching cost 3 3
Substitute producer’s
profitability & 2 3
aggressiveness
Substitute price / 3 4
value
Overall 10 13
DESCRIPTION
In case of Unilever foods, one of the possible substitutes
would be a homemade product. The customers might
use alternates due to various reason, such as the cost of
preparing a homemade pasta sauce will be lower than
actually buying a bertolli pasta sauce. Recently, there is
an increasing trend of eating out. Using service can also
be considered to be substitute to purchasing food. But
the restaurants and caterers can also providing
customers with Unilevers product. In doing so, Unilever
benefits from people’s using services.
It can be thus concluded that the threat of subtitutes to
unilever foods is not high due to the potition of unilever
as the leading compaies in food business.
POWER OF BUYER
Current Future
Number important buyers Few 5 5 Many
Buyer switching cost Low 1 1 High
Current Future
Overall Industry 102 110
Assessment
CONCLUSION
In the future the attractiveness of this industry can be
stable or even stronger. The product life cycle withstand
because people use their products in their daily life
INTERNAL Unilever SWOT,
IFE and Value
ASSESSMENT Chain Analysis
SWOT ANALYSIS
STRENGTH
1.Contribution of home and personal care to net sales is 72.9%
2.Marketing and selling expenses increased by 12.5% to Rp6.6 trillion
3.Strong portfolio of brands and diversified product range
4.Contribution to Total Turnover is 27% in 2013
5.Holding 15% shares of total in Indonesian Stock Exchange
6.Cash position in 2013 increased by 13.7% or Rp31.5 billion
7.Unilever operates in nearly 190 countries around the world and
hence, has a global footprint combined with top of the mind brand
recall among consumers worldwide.
8.Unilever has a distinct competitive advantage over its nearest
competitor, Proctor and Gamble because of its flexible pricing and
expertise in distribution channels that manage to reach the nook and
the corner of the globe.
WEAKNESS :
1.Finance income decreased by 61.5% to Rp14.5 billion
2.Sales growth for the year was 12.7%, lower than previous
year growth of 16.3%
3.The Company’s collection period weakened from 30 days
in 2012 to 33 days in 2013
4.No direct connecting with customer
5.Excellent in R&D lead to high in price
6.Employ 6,719 employees in 2013
7.The biggest weakness that Unilever faces is that it operates
in an uber competitive market where the other global giants
like P&G and Nestle in addition to a host of local players
challenge its dominance at every turn and raise the stakes
in the Trillion Dollar FMCG (Fast Moving Consumer Goods)
space.
Threats :
Opportunities :
1.Substitute products in the
1.The diversity of market
Unilever’s competitor is
low 2.The company sells its
products through a network
2.Unilever Indonesia goes of about 370 independent
into 2014 on the back of distributors covering
market share gains and outlets throughout
robust growth in almost Indonesia
all categories
3.In the second half of the
3.Keeping with product year, the Indonesian macro
innovation based on economy experienced
consumer expectation another test with high
4.The high customer inflation (post fuel subsidy
satisfaction can be seen cut), increased interest rate
from the title of prime and weakening of the
index of consumer Rupiah
satisfaction. 4.Government laws and
5.Since 1982, PT. regulation quite
Unilever Indonesia, Tbk challenging
has been listed on the 5.Many smuggling of
Indonesia Stock
INTERNAL FACTOR
EVALUATION
Weigh Ratin Weighted
Strengths
t g Score
Contribution of home and personal care
1. 0.12 4 0.48
to net sales is 72.9%
Marketing and selling expenses
2. 0.08 2 0.16
increased by 12.5% to Rp6.6 trillion
Strong portfolio of brands and
3. 0.09 3 0.27
diversified product range
Contribution to Total Turnover is 27% in
4. 2013 0.08 3 0.24
Procurement
•Unilever works with the agriculture industry to get the raw
materials
Technology Development
They spent a lot of capital on Research and Development to reduce
environmental impact.
Human Resources Development
Because they are in manufacturing industry, they rely on machine
and their employees. That’s why they have so many employees and
take care of their employees.
Firm Infrastructure
The good management of Unilever planning and financing also add
values for their customers and stakeholders.
EXTERNAL Unilever EFE &
ASSESSMENT CPM Analysis
EXTERNAL FACTOR EVALUATION FOR UNILEVER
ACTION Analysis
LONG-TERM OBJECTIVES
Sourcing 100 percent of agricultural raw materials sustainably by 2015,
including 100 percent sustainable palm oil. Unilever buys 3 percent of
the world's annual supply of palm oil.
Change the hygiene habits of 1 billion people in Asia, Africa and Latin
America to help reduce diarrhea -- the word's second biggest cause of
infant mortality. Unilever will push sales of its Lifebuoy soap brand and
teach consumers when to wash their hands to achieve this aim.
Make drinking water safer in developing countries by extending sales of
its Pureit home water purifier.
Improve standards of living by working with agencies such as Oxfam
and the Rainforest Alliance to link 500,000 smallholders and small-scale
distributors to the Unilever supply chain.
Unilever also intends to improve the nutritional quality of its food
products -- with cuts in salt, saturated fats, sugar and calories -- and
link more than 500,000 smallholder farmers and small scale distributors
in developing countries to its supply chain
Earlier this year, Unilever announced a plan to use 100 percent
sustainably sourced paper for packaging by 2020, and the company has
ranked at the top of its sector for sustainability in separate rankings
developed by Two Tomorrows and Climate Counts.
DEFINITION OF STRATEGIES
Definition
1. A method or plan chosen to bring about a desired future, such
as achievement of a goal or solution to a problem.
2. The art and science of planning and marshaling resources for
their most efficient and effective use. The term is derived from the
Greek word for generalship or leading an army.
CONCEPT OF STRATEGIES
Strategy as action, inclusive of objective setting.
With this concept, three types of actions involved in strategy:
a) Determination of long term goals and objectives
b) Adoption of courses of action
c) Allocation of resources
Strategy as action, exclusive of objective setting.
It states that strategy is a way in which the firm, reacting to its
environment, deploys its principal resources and marshals its
efforts in pursuit of its purpose. The people who believe this
version of the definition call strategy a unified, comprehensive and
integrated plan relating to the strategic advantages of the firm to
the challenges of the environment.
VARIOUS STRATEGIES THAT
HAS BEEN IMPLEMENTED
1. Winning with brand and innovation is about development on new
product, such as hair product, male grooming product, home and
personal product and also food and beverages.
2. Winning with market place. Unilever Indonesia promoting their
goods by selling directly to the public with evidence of quality in
real condition. Besides that, Unilever Indonesia also boost the
volume growth in the islands outside Java.
3. Winning with continous improvement. Unilever Indonesia supports
the plan Program Master Plan for the Acceleration and Expansion
of Indonesian Economic Development (MP3I) with pioneering
oleochemichal plant in Seimangkei, North Sumatra. The project
will run in the period 2013-2014, with an investment of Rp 1.45
trillion.
4. Winning with people. Unilever focuses in perfecting management
trainee program (MT) is strong because Employees (people) is the
most important element in business continuity Unilever.
VERTICAL INTEGRATION
Backward Integration Forward Integration
WO Strategy
Weakness : No direct connecting with customer
Opportunity : Unilever Indonesia goes into 2014 on the back of
market share gains and robust growth in almost all categories
Strategy :
1. Increase the marketing to get close with the customer in
introducing the products
2. Improve the customer care service to know customers’ needs and
wants
ST Strategy
Strength : Contribution of home and personal care to net
sales is 72.9%
Threat : Substitute products in the market
Strategy : Improve R & D to take competitive advantage
according to product diversification
WT Strategy
Weakness : Sales growth for the year was 12.7%, lower
than previous year growth of 16.3%
Threat : The company sells its products through a network
of about 370 independent distributors covering outlets
throughout Indonesia
Strategy : Pursue vertical integration by owning subsidiary
that engage in distribution, export, and import.
SPACE MATRIX PT. UNILEVER
INDONESIA, Tbk.
FINANCIAL STRENGTH RATING AVERAGE
Net profit (net income) increased by 12.7% to 5
30,757,435 million dollars
Net cash flow from operating activities in 2013 was 4
Rp6,241,679million, up from Rp5,191,646 million
years ago.
Working Capital which began to decline from year to 2
year
EPS increased from 546 to 634 at December 31, 2013 5
TOTAL 16 4
INDUSTRY POSITION RATING AVERAGE
Community needs and high dependence on consumer 4
goods
Increased sales of consumer goods in Indonesia is 4
rated third, after China and India
Market growth products daily necessities pretty good 4
Household goods industry and consumer goods is one 5
industry will still prevail in times of crisis
17 4,25
STABILITY POSITION RATING AVERAGE
Macroeconomic stability was maintained as indicated -2
by the decline in interest rates and inflation (although
there will be a bit of turmoil)
The issue of the use of formaldehyde in several -4
industries including consumer goods in industry
The decline in average income community (the -3
possibility of a global crisis)
-9 -3
COMPETITIVE POSITION RATING AVERAGE
Funds huge ad campaign -1
Awards for the products of Unilever and ICA -2
(Indonesian CSR Award) which indicates consumer
satisfaction
Strong Distribution Network -2
Branding -2
TOTAL -7 -1,75
CONCLUSION
FP Average is 4,00
IP Average is 4,25
SP Average is -3,00
CP Average is -1,75
Directional Vector Coordinates:
x-axis (CP + IP) : -1,75 + (+4,25) = +2,50
y-axis (SP + FP) : -3,00 + (+4,00) = +1,00
Koordinat xy
{(2,50 ),( 1,00)}
FP
CONSERVATIVE AGGRESIVE
MATRI
1
CP IP
1 2
X
DEFENSIVE COMPETITIVE
SP
Based on the Strategic Position and Action
Evaluation (SPACE) Matrix it can be concluded that PT.
Unilever Indonesia, Tbk. located in Aggressive directional
vector of Profiles.
Strategies that can be taken :
* Integration Strategies (forward, backward, and
horizontal integration)
* Intensive Strategies (market penetration, market
development, and product development)
* Diversification strategy or combination
BCG MATRIX
P T. U N I L E V E R I N D O N E S I A , T B K .
PT. UNILEVER INDONESIA, Tbk. Has 2 division, which is
home & personal care and food & ice cream.
Home & personal care has the biggest contribution up to
78% of the total revenue and 22% of growth rate.
Food & ice cream contibution to 22% of total revenue and
19% of growth rate.
MARKET GROWTH MARKET SHARE
FOOD
&
ICE CREAM
IE MATRIX PT. UNILEVER
INDONESIA, Tbk.
THE IFE TOTAL WEIGHTED SCORES
Strong Average Weak
4.0 3.0 to 4.0 3.0 2.0 to 2.99 2. 1.00 to 1.99 1.0
0
High
3.0 to I II III
THE EFE
TOTAL 4.0 3.
WEIGHTED 0
SCORES Medium IV V VI
2.0 to
2.99 2.
0
COMPETITIVE
ADVANTAGE
SALES GROWTH /
HIGHER MARKET
EXPLANATION
The generic strategies as developed by Porte (1980;
1985) for achieving a competitive advantage position by
an organization are: product differentiation and cost
leadership. Product differentiation being the most
commonly used one of these two strategic typologies.
A differentiation strategy involves the firm creating a
product/service, which is considered unique in some
aspect that the customer values because the customer’s
needs are satisfied. On the other hand, cost leadership
strategy emphasizes low cost relative to that of the
competitors.
UNILEVER GENERIC
STRATEGY
We can conclude from our research study, it can be
established that that manufacturing organizations/
Unilever Company must pay greater attention to the
products the manufacture in terms of quality design,
innovations and unique features. It is safe to suggest that
executive management needs to make sure that they
provide adequate satisfaction to their customers. Which
means that management should put additional emphasis
and pay more attention to product differentiation as it is
an important instrument for achieving competitive
advantage which leads to greater organizational
performance which translates to higher profits.
STRATEGY REVIEW,
EVALUATION, AND
CONTROL
PT. UNILEVER INDONESIA
REVISED EFE MATRIX
SOURCE : HTTP://WWW.4-TRADERS.COM/UNILEVER-
6290/FINANCIALS/
STRATEGY EVALUATION ASSESSMENT
MATRIX
MAMA LIME
SUNLIGHT
LOW QUALITY
PERSONAL CARE
POND’S
HIGH QUALITY
KIEHL’S
THE BODY SHOP
POND’S THE FACE SHOP
GARNIER
NIVEA REVLON MAYBELLINE
ACNES
CITRA
THE FUK
LOW QUALITY
FOOD & DRINK
WALL’S
GOOD TASTE
HAAGEN DASCH
WALLS DAIRY QUEEN
BASKIN ROBBINS
CAMPINA
DIAMOND
ES LILIN
ES KADO
ES DUNG2
BAD TASTE
FINANCE
CAPITAL
Net Working Capital
500
0
-500 2009 2010 2011 2012 2013
-1000
-1500
-2000
-2500
-3000
10000
5000
0
2009 2010 2011 2012 2013
Objectives:
a. Perfecting a formulation so that it is
aesthetically pleasing and stable when stored;
b. developing packaging that suits the product
format,
c. delights the consumer and minimizes
environmental impact; and
d. ensuring the product is ready for large scale
factory production
R&D
Unilever's Reaction
Unilever didn’t accept the claims about the mercury
scandal that it affected the environment and
workers health greatly
Supply Chain
Human Resource
Finance
Information Technology
Customer Development
UNILEVER CORE MISSION