Custom «Unilever» Sample Essay
The CEO of Unilever, Paul Polman laid out various goals for the organization (Boyle, 2013). The company seeks to increase both the market share of its products and its sales. In the process, it intends to double its 2009 size to €80 billion by 2020 (Boyle, 2013). The organization also has a goal of cutting its costs by abandoning unnecessary tiers of management and excessive bureaucracy. The firm is to invest in new projects that could potentially bring a revenue of about €50 million in sales (Boyle, 2013). The organization has a goal of replicating its successful sales and market share in Brazil for India and Indonesia markets as well. It wants to ensure that its products are always in the stores’ shelves. Furthermore, it sets to take Unilever’s personal care products upscale so as to generate profit margins of 8% higher than the mainstream products. Finally, Unilever attempts to manufacture the next-generation products to enable it better to serve both the top end and the mass end market segments.
The organization has put in place steps that would enable it to achieve its goals (Boyle, 2013). The company has cut down its costs by reducing excess layers of management. In an attempt to lessen excessive bureaucracy, the company reduced 20,000 kinds of financial reports by 90% (Boyle, 2013). It had vast projects, but it reduced them to manageable few. As a result, the organization successfully cut more than €1 billion in costs yearly. Secondly, Unilever focused on fewer big ideas which could potentially bring a revenue of about €50 million in sales (Boyle, 2013). For instance, it acquired TRESemmé, a shampoo, at $3.7 billion. Upon launching, it made sales of €150 million in the first year. Thirdly, the company sought to increase the sales and the market share of its products such as TRESemmé shampoo. It employed a marketing plan which included big retailers, fashion bloggers, distribution of free samples, Facebook, a winning market share mentality in the employees to promote the products. The market share of the product went from zero market shares surpassing those of competitors in hypermarkets and drugstores. The market share, the size of the company, and income have increased. The use of similar techniques would achieve the same results in India and Indonesia. Fourthly, the company ensures that its products are always in the stores’ shelves. Consequently, the approach influences retailers to allow the brands of Unilever additional shelf space than competitors ones (Boyle, 2013). Fifthly, it deployed 80 percent of its product development staff to the field to work closely with the suppliers (Boyle, 2013). It was intended to take the firm’s personal-care products upscale. The strategy has been successful because the suppliers contribute to seven of every ten new ideas. Finally, the company sought to serve both high end and mass end markets. It invested €500 million in the next-generation products such as personalized skin-care treatments for the high-end market. The firm offered differentiated products. For example, sachets of Fair & Lovely cream to the mass end market were developed. Both cases led to an increase of revenue.
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Unilever has been successful due to multiple reasons (Boyle, 2013). It trades for prominent placement with goods discounted. Additionally, its sales representatives visit the stores each week to ensure that its stock is available. Moreover, it gets its products into stores much faster than ever before. Consequently, the retailers have prioritized the products of Unilever, and place them on the front lines of the shelves. The organization has also invested broadly in the emerging markets, whose economies are expanding. In addition, it utilizes the local knowledge acquired over years of operation in these states to lure shoppers to its brands. It does few projects that are big, and are likely to attract the international appeal (Boyle, 2013). The market share of the company improved partly because the employees worked with a sense of winning the market share. The company abandoned excess layers of management and red tape as well. In relation to this, it has deployed most of its product development personnel to the field to work together with the suppliers (Boyle, 2013). It targets big retailers, fashion bloggers, Facebook, and distribution of free samples when launching its products. Another reason for success is its investment in the next-generation products such as personalized skin-care treatments. Finally, differentiating its products into the top end and mass end reflects its success.
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