THUY LOI UNIVERSITY
INSTITUTE OF ECONOMICS & MANAGEMENT
GROUP REPORT
Topic: International Business Strategy of Unilever
Instructor Nguyen Phuong Linh
Major English for Electronic Commerce
Class 64TMDT.03
Group 10
Members Nguyen Thi Huyen Trang 2254054592
Quach Uyen Uyen 2254054600
Nguyen Thi Van 2254054602
Tran Thi Hong Van 2254054603
Hanoi, 2024
TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................2
CHAPTER 1: OVERVIEW OF UNILEVER..............................................................................3
1. Company background..........................................................................................................3
2. Key business sectors............................................................................................................3
3. Global presence and market share.......................................................................................3
4. Importance of international markets to Unilever's growth...................................................3
CHAPTER 2: UNILEVER’S SWOT MODEL ANALYSIS......................................................3
1. Strengths...............................................................................................................................3
2. Weaknesses..........................................................................................................................4
3. Opportunities........................................................................................................................4
4. Threats..................................................................................................................................4
CHAPTER 3: ANALYSIS OF UNILEVER’S INTERNATIONAL BUSINESS
STRATEGIES.............................................................................................................................4
1. International Strategy...........................................................................................................4
2. Multinational Strategy..........................................................................................................5
3. Transnational Strategy.........................................................................................................5
CHATER 4: UNILEVER’S INTERNATIONAL BUSINESS STRATEGIES IN VIETNAM..7
1. Product Strategy...................................................................................................................7
2. Price Strategy.......................................................................................................................7
3. Place Strategy.......................................................................................................................8
4. Promotion Strategy..............................................................................................................8
CONCLUSION............................................................................................................................9
REFERENCES..........................................................................................................................10
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INTRODUCTION
In recent years, competition between goods has been fierce, especially products
originating from multinational companies that are currently present and dominating the world.
Unilever is also one of the big players in the consumer market, annually providing a large
amount of essential goods for the daily life of consumers worldwide such as: P/S toothpaste,
Sunsilk shampoo, Omo washing powder, Clear, ...
However, companies constantly having to operate in a fiercely competitive environment.
Competitors often continuously introduce policies to attract customers to their side, products
are becoming more and more diverse, consumers are faced with many different choices in
terms of types and brands of goods. At the same time, customer needs are also increasingly
diverse. The requirement is that the products of companies must satisfy the maximum needs
and interests of customers. The question is what companies must do to survive and conquer
their position in the current competitive environment. If they want to succeed, businesses
cannot work on inspiration and are indifferent to the needs of customers and competitors but
must build a competitive strategy to conquer the market share suitable for each stage of
development. Therefore, companies must clearly define their strengths and weaknesses to
determine their competitive position and be ready to find the gaps of competitors to attack.
That is the work to establish a competitive strategy plan in the market of companies. With the
desire to learn more about the market share competition strategy and apply the above theory
into practice through Unilever Company in Vietnam, our group decided to choose the topic
"International Business Strategy of Unilever”.
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CHAPTER 1: OVERVIEW OF UNILEVER
1. Company background
Unilever is a world-leading multinational company specializing in providing fast-
moving consumer goods, founded in 1930 from the merger of two companies, Lever Brothers
of England and Margarine Unie of the Netherlands.
At the time of the company's establishment, the founders at that time set out Unilever's
mission as "To add vitality to life". The meaning of this mission is that Unilever wants to
bring a better life to everyone through its products.
Unilever's vision will be different in each country, but it is built on the common vision
of Unilever globally. Regarding Unilever's global vision, it is "making sustainable living
popular" or more specifically, it is the parallel development between business and social
activities to minimize harm to the environment. In particular, Unilever's vision in Vietnam is
to make the lives of Vietnamese people better.
2. Key business sectors
Unilever has five main business segments: Beauty & Wellbeing; Personal Care; Home
Care; Nutrition; and Ice Cream.
3. Global presence and market share
Unilever products are present in 190 countries with 3.4 billion people using the products
every day.
4. Importance of international markets to Unilever's growth
International markets are crucial to Unilever’s growth by offering revenue
diversification, access to emerging markets, and opportunities for innovation. They also help
the company mitigate risks and enhance its global brand presence.
CHAPTER 2: UNILEVER’S SWOT MODEL ANALYSIS
1. Strengths
- Unilever is a strong brand: Unilever is one of the corporations that owns many famous
brands worldwide including: Dove, Knorr, Lipton…
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- Unilever has a flexible product pricing strategy: Unilever has the ability to price its
products flexibly, from low-cost products to high-end products, meeting the needs of many
customers.
- Unilever has a wide distribution network: Unilever has a wide distribution network across
the globe, from small convenience stores to large supermarkets.
2. Weaknesses
- Unilever depends on retailers: Relying on retailers can make it more difficult for Unilever
to control the price and quality of its products.
- Unilever products are easily imitated: Unilever products are often easily imitated by
competitors, especially in new markets. This can have a negative impact on Unilever's sales
and the company's brand value.
3. Opportunities
- Globalized market: Currently, Unilever is present in more than 190 countries and is still
looking for new opportunities to expand its market.
- The market trend towards healthy and sustainable products: Consumers are becoming
more conscious than ever about their health, as well as the trend of healthy. This opportunity
allows Unilever to tap into this emerging market segment, especially the market for health-
conscious consumers and green products.
4. Threats
- Unilever faces a fierce competitive market: Unilever faces major competitors such as
Nestle or P&G. This makes Unilever constantly have to race to conquer the world market.
- Unilever is affected by the global economic crisis: The ongoing global economic crisis is
getting worse with the COVID-19 pandemic, which has severely impacted many companies,
including large corporations like Unilever.
CHAPTER 3: ANALYSIS OF UNILEVER’S INTERNATIONAL BUSINESS
STRATEGIES
1. International Strategy
International strategy is a competitive strategy aimed at increasing profits by
transferring and exploiting the superior products and skills of the enterprise in foreign markets.
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1.1. Expanding its business network and reaching customers around the world
Not stopping at expanding the domestic market, Unilever also made many acquisitions,
including: Lipton (1971), Brooke Bond (1984), ChesebroughPonds (1987),...
Growing strongly, Unilever continues to expand its product areas to items such as tea,
ice cream, shampoo, toothpaste, soft drinks, cooking spices, frozen products, cosmetics,
household cleaning products, etc.
1.2. Developing healthy and sustainable products
Unilever has always focused on developing healthy and sustainable products to meet
customer needs. These products are designed to minimize negative impacts on the
environment and human health.
1.3. Exploiting emerging markets
Unilever managers integrate and coordinate the company's strategic moves across the
globe and expand into most, if not all, countries where there is significant buyer demand. It
places a significant strategic emphasis on building global brands and actively pursues
opportunities to transfer ideas, new products and capabilities from one country to another.
1.4. Invest in research and development to improve technology and new products
Unilever invests heavily in research and development to improve technology and new
products. This helps Unilever to always provide new and improved products to suit the needs
of customers in the international market. R&D also helps Unilever to reduce production costs
and increase the efficiency of the company's operations.
2. Multinational Strategy
Multinational strategy is a competitive strategy aimed at increasing the value of the
product (thereby increasing profits) of the enterprise by adapting the product to each foreign
market.
Local customization: Each subsidiary in each market will be responsible for the
production, marketing, sales and distribution of products in that market. This strategy allows
managers to launch products and marketing strategies that are suitable for local tastes and
preferences; adjust sales and distribution strategies to suit the retail system in each market.
Operational efficiency: With this strategy, Unilever wanted to cut operating costs,
increase growth speed, and promote the brand's products worldwide.
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3. Transnational Strategy
Transnational strategy is a competitive strategy aimed at increasing profits through
cutting costs globally, while increasing value by adapting the product to each market.
1. Research and Development
Unilever invests heavily in research and development to improve technology and new
products. Unilever optimizes production processes to minimize costs and increase the
company's operational efficiency. To differentiate products to meet local needs, Unilever has
monitored consumer preferences, trends, and needs through the establishment and
development of People Data Centers around the world.
2. Logistics and Supply Chain Operations
A global hub located in Singapore manages strategic sourcing for Unilever's operations
in Asia, Africa, Central and Eastern Europe including supplier selection and contracting, and
country offices are responsible for the execution of purchasing activities.
Unilever has computerized all of its delivery operations. With the successful application
of the VMI and e-Order models for key accounts, it has significantly reduced the inventory of
its partners, helping to solve the current inventory problem of wholesalers.
In most markets, Unilever has chosen to outsource its distribution and logistics systems
by cooperating with corporations and third-party companies.
3. Marketing Activities
Marketing mix 4Ps:
- Product: Unilever focuses on discovering new customer expectations and targeting each
individual in the market to conduct research and develop suitable products. The company also
creates new products and improves existing products to meet the needs of customers globally.
For example, Omo always improves packaging such as: 90g, 400g, 800gm, 1.5kg,... to suit the
needs and economy of consumers. Unilever is also the first brand to launch small shampoo
packages for poor customers. With the diversity in product packaging (such as bottles, jars;
large and small bags...) with different sizes, Unilever partly solves the pressure of cost
reduction.
- Price: Unilever's pricing strategy is penetration (high quality, low price). Unilever
implements preferential pricing policies such as direct discounts, gifts in many forms, lucky
draw promotions or scratch-offs with many valuable gifts. In addition, Unilever also aims to
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reduce production costs to bring products at the lowest prices. By relying on local small
businesses to find local raw materials to replace some imported types.
- Place: Unilever focuses on expanding its distribution system to reach more customers. Most
of Unilever's products are sold by large supermarkets as well as small retailers such as
7eleven, Coles. Some other products are sold through direct marketing where agents introduce
and describe the benefits, uses of the product and the daily impact of the product. In addition,
Unilever is now also taking advantage of online distribution channels such as e-commerce
sites, omnichannel multi-channel sales models to meet customers' online shopping needs.
- Promotion: Unilever is one of the companies that spend the most on marketing activities
with marketing costs of about 8 billion €/year. As the use of digital media and e-commerce
increases rapidly, Unilever is using digital marketing integrated with e-commerce to boost
sales. The company also creates local advertising campaigns to increase interaction and
connection with local customers, while enhancing its brand recognition in the market. Instead
of advertising on media channels, Unilever has promoted its brand and products through
activities such as: humanitarian commitments, mainly focusing on the fields of health,
education, poverty reduction and natural disaster prevention (such as in Vietnam the program
"P/S protects Vietnamese smiles", the program "Lifeboy" to prevent leprosy or the program
"Vim" forum on family hygiene, epidemic prevention, etc.). These activities help Unilever
bring its brand and products closer to consumers and create sympathy with them.
CHATER 4: UNILEVER’S INTERNATIONAL BUSINESS STRATEGIES IN
VIETNAM
1. Product Strategy
Unilever focuses on developing high quality products and meeting customer needs. They
have invested heavily in research and product development to create new products and
improve the quality of existing products.
In recent years, Unilever has developed new products such as Signal toothpaste and
Lifebuoy shower gel to meet customer needs. They have also improved the quality of existing
products such as OMO washing powder to enhance washing efficiency and minimize
environmental impact.
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2. Price Strategy
Unilever applies a competitive pricing strategy to attract customers and enhance
competitiveness in the market. They regularly offer promotions and discounts to increase
customer reach and generate interest in their products.
For example, on the e-commerce website Tiki, the selling price of Unilever's OMO 3kg
product usually ranges from 139,000 VND to 155,000 VND, depending on existing
promotions and discounts. The selling price of Dove Shower Gel 1L on the e-commerce
website Lazada ranges from 130,000 VND to 150,000 VND, equivalent to the selling price of
similar products of other brands on the market. Besides, Unilever always ensures that the price
of their products still ensures quality and value for customers.
3. Place Strategy
Unilever Vietnam currently has about 350 distributors and more than 150,000 wholesale
and retail stores of the company's products nationwide. In addition, Unilever also focuses on
investing in new distribution channels such as sales online and mobile applications to enhance
customer accessibility.
Currently, Unilever has cooperated with distribution partners such as Lotte Mart, Big C
and [Link] to bring its products to customers in urban areas. At the same time, Unilever
has also created a separate online sales website, along with mobile applications such as
Shopee and Lazada to enhance customer accessibility. These numbers show that the
company's products are flooding the Vietnamese market.
4. Promotion Strategy
Unilever focuses on building brands and creating relationships with customers through
multi-channel advertising campaigns. They use media channels such as television,
newspapers, social networks and events to promote their products. Unilever regularly creates
creative and impressive advertising campaigns to attract customers' attention. This helps
increase awareness of Unilever's brand and products in the Vietnamese market.
Unilever also focuses on creating advertising campaigns that suit the tastes and needs of
Vietnamese consumers. They often use famous figures, singers, actors or Vietnamese artists to
promote products. This helps create closeness and friendliness with Vietnamese customers.
Unilever also creates advertising campaigns that focus on ethical and environmental
values to create empathy and respect from customers. For example, Sunlight's "Clean and
Beautiful Vietnam" campaign aims to increase awareness of environmental protection and
sustainable development issues.
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CONCLUSION
After more than 90 years of operation, like many other multinational companies to
penetrate, develop products, develop their markets, Unilever has built and changed
international business strategies to suit the market level through each stage revolving around
the issue of localization and cost. That is an inevitable rule in the process of formation,
operation and development of a company. Through studying Unilever's international business
strategy, we can see an overview of the issues surrounding a multinational corporation along
with certain successes. Sufficient success is the steppingstone for Unilever to strengthen and
develop its brand to become a "giant" in the consumer goods market, continuing to develop
with the goal of sustainability, safety with the environment, creating and bringing good
benefits to human life.
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REFERENCES
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[Link]
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THƯƠNG MẠI KHOA KINH TẾ VÀ KINH DOANH - Studocu. [online] Available at:
[Link]
luoc-kinh-doanh-quoc-te-cua-unilever/78618385 [Accessed 16 Oct. 2024].
3. CHIẾN LƯỢC KINH DOANH CỦA UNILEVER - TẬP ĐOÀN ĐA QUỐC GIA HÀNG
TIÊU DÙNG. (2020). CHIẾN LƯỢC KINH DOANH CỦA UNILEVER - TẬP ĐOÀN ĐA
QUỐC GIA HÀNG TIÊU DÙNG. [online] Available at: [Link]
doanh-hieu-qua-cua-unilever.
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