Group-8

P&G and Unilever

Prabhakar Barua-151238
Ravindra Mahecha-151242
Vishnu Dharmaseelan-151259
Kevin Simon-141228
Himanshu Shekhar-151324
 Globalization drivers adopted by P&G/Unilever
Market Drivers
Convergence of lifestyles & taste
Increased travel creating global consumer
Growth of global and regional channels
Establishment of world brands
Push to develop global advertising
Shortening product life cycle
Government Drivers
Reduction of tariff barriers
Creation of trading blocs
Decline in role of government
Reduction in non-tariff barriers
Shift in open market economies
Cost/Economic drivers
Continuing push for economies of scale.
Accelerating technological innovation
Advances in transportation
Increasing cost of product development
Competitive Drivers
Increase in level of world trade
Increase in foreign acquires of corporation
Companies becoming globally centered
Increased formation of global strategic
alliances
Globalization of financial markets
 Unilever Strategy
Refocusing on Main 200 Brands
Dropping 1000 poor performing brands
Decentralization for Market Reach
Merge brands if necessary

P&G Strategy
Expanding brand and product range by
acquisition
Heavy advertising if necessary
Challenges faced by Unilever in
Australia and South Africa
Unilever has to face the challenge of scaling
down operations for reducing environmental
impact in the value chain.
Unilever wanted to make good progress with
reducing water use, waste and greenhouse
gas emissions in factories.
Unilever did tons of market research and
interacted with consumers on a daily basis and
every brand manager had access to a lot of
information but it was not centralized. And
where there was data, there was no actionable
insights to sift out data.
Challenges faced by P&G in
Australia and South Africa
P&G has to constantly worry about competition
especially from Unilever. Unilever is a competition
in several product lines and the brands are
constantly at loggerheads, a reason which affects
the profitability of both brands.
Many retail brands have started with their own
brands and are planning their own private labels
for detergents, personal care products and others
which is eating the market share of P&G.
P&G has to face the threat of reducing
revenues and the consistent increase in
costs.
Recommendation
They should use the latest value chain up gradation
techniques so that they can improve the efficiency
and the overall cost in their supply chain.
They should adopt latest green technologies in
their production system such that they can reduce
carbon footprint and can lead a more sustainable
levels of production and therefore earn the
reputation of being a ecofriendly company.
Unilever should create a centralized data repository
so that all the relevant customer data is in one
place and they can generate relevant customer
insights.
Recommendation
In order to handle the competition from
other FMCG behemoths they have to
aggressively market their products in the
market and should attack segments where
there has been less penetration and exploit
them.
In order to handle the issue of the threats
coming from private labels, they must have
aggressive marketing and IMC strategies
aimed at the private labels without naming
any private labels.
Thank You