Marketing Management

EXECUTIVE SUMMARY

Unilever is a British–Dutch multinational consumer goods company. Its

products include foods, beverages, cleaning agents and personal care product. It is the world's

third-largest consumer goods company measured by 2011 revenues (after Procter & Gamble

and Nestle) and the world's largest maker of ice cream. .

Unilever is currently one of the most successful consumer goods companies in the world

and they have set their ambitious targets for growth, in traditional and new markets and

channels, to keep it that way. The global presence of Unilever contributes to its major success

and competitive edge. The corporation sells products in over 150 countries and has annual

sales of approximately $ 46 billion [£31,5bn]. Unilever controls subsidiaries in more than 90

countries and employs 295,000 (in 2000) people. Unilever is one of the world’s top three food

firms after Nestle and Kraft and the world’s second largest packaged consumer goods company

–behind Procter & Gamble.

As one of the most successful consumer goods companies ever, millions of families choose

Unilever brands to feel good, look good and get more out of life. With a huge range of food,

personal care and home care goods sold across the globe, consumers can choose a staggering

330,000 Unilever products. Unilever’s mission is We work to create a better future every day.

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. We will inspire people to take small everyday actions that

can add up to a big difference for the world. We will develop new ways of doing business that

will allow us to double the size of our company while reducing our environmental impact.

PART 1: THE GENERAL OVERVIEW OF UNILEVER

1.1 UNILEVER CORPORATION

Foundation history

Unilever was officially established in 1930, through the merger of Lever Brothers, a British

soap manufacturer and Margarine Unie, a Dutch margarine manufacturer. It has since become

one of the largest direct investors in the United States. Unilever is unique in that it has

maintained a dual ownership structure since its inception, governed by an equalization

agreement. Although the company has two legal entities as its parents, one Dutch (Unilever NV),

and one British (Unilever plc), it has only one board of directors4 and reports one set of financial

statements.

Business field

Its products include foods, beverages, cleaning agents and personal care products. Unilever

considers itself the second largest consumer goods firm in the world with over 400 brands,

amongst the largest selling of which are Dove, Flora/Becel, Heartbrand, Hellmann's,

Knorr, Lipton, Lux/Radox, Omo/Surf, Rexona, Sunsilk…

Vision & Mission

We work to create a better future every day. 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. We will

inspire people to take small everyday actions that can add up to a big difference for the world.

We will develop new ways of doing business that will allow us to double the size of our

company while reducing our environmental impact.

Business achievements

Unilever is currently one of the most successful consumer goods companies in the world

and they have set their ambitious targets for growth, in traditional and new markets and channels,

to keep it that way. The global presence of Unilever contributes to its major success and

competitive edge. The corporation sells products in over 150 countries and has annual sales of

approximately $ 46 billion [£31,5bn]. Unilever controls subsidiaries in more than 90 countries

and employs 295,000 (in 2000) people. Unilever is one of the world’s top three food firms after

Nestle and Kraft and the world’s second largest packaged consumer goods company –behind

Procter & Gamble.

1.2 UNILEVER SUBSIDIARY IN VIETNAM

The formation of UNI VN

Having started its business in Vietnam since 1995, Unilever, one of the world’s leading

consumer goods manufacturers specializing in food, home & personal care products, operating in

over 150 countries, has invested more than USD 300 millions in Vietnam, with a modern

manufacturing site in Cu Chi Industrial Zone. Through an extensive local network of 150

distributors and 200.000 retailers, Unilever Vietnam directly employs more than 1.500 people

and creates nearly 10,000 indirect jobs who work in its third parties, suppliers and

distributors.Today, many of Unilever’s brands such as OMO, P/S, Clear, Pond’s, Knorr,

Lifebuoy, Sunsilk, VIM, Lipton, Sunlight, VISO, Rexona… have become household names in

every Vietnamese family thanks to Unilever’s great efforts since its establishment in Vietnam.

Every day, over 30 million consumers use our products nationwide, contributing to improve the

living condition, health and hygiene of every Vietnamese.

With average double-digit annual growth over the last 16 years, Unilever Vietnam has

actually become one of the most successful foreign investors in Vietnam.  In April 2010,

Unilever Vietnam was honored by the President of the State with the 1st Labor Medal for its

excellent business performance and meaningful contribution to the socio-economic development

of Vietnam.

Unilever Vietnam has always taken great efforts not only to succeed its business, but also

to become a good corporate citizen toward the society, community and environment. Many

social and community programs implemented by Unilever Vietnam and its brands such as “P/S

Protects Vietnamese smile”, “Hand-washing with soap for a healthier Vietnam”, “OMO White

Shirts for disadvantaged pupils”, “Micro financing for poor women”... have become typical

examples of an effective public - private partnership that contributes to improve Vietnamese

lives. In 5 year period from 2005 – 2011 alone, Unilever Vietnam, through its Unilever Vietnam

Foundation, has invested more than VND 360 billions in socio-community programs under the

strategic partnerships with relevant government agencies which focus on 4 main areas: Health

and Hygiene with Ministry of Health; Education and Children development with Ministry of

Education & Training; Women Empowerment with Vietnam’s Women Union; Sustainable Tea

Development with Ministry of Agriculture & Rural Development. Many prestigious awards have

been presented to Unilever Vietnam by the Government for its outstanding contribution to social,

community development and environmental protection cause.   

1.3 COMFORT BRAND – ONE OF THE MOST SUCCESSFUL PRODUCT

The Market Leader since its launch in Vietnam in 1999, Comfort has been acquiring the

love and loyalty of many consumers who really care for their loved one even in the smallest

things they do. Comfort not only delivers exceptional softness to clothes, but it also offers a

variety of well-loved fragrances some of which are Lily, Huong Ban Mai, rose scent etc.

Comfort Angels Fragrance Angels are the icons for Comfort's long-lasting fragrances. Today.

Interesting facts:

Comfort, which has been ranked the number 1 fabric conditioner in Vietnam with more

than 55% of market share since 1999, lets people “Do the little extra thing for the one you love”

Fabric Conditioners not only "soften" they have a number of other consumer benefits. For

example did you know that Fabric Conditioners can help to prevent fibrillation and matting of

natural fibres which leads to a less open fabric structure and does not allow effective flow of air /

perspiration

In November 2005, thousands of fragrance angels dolls have been given as a unique and

lovable souvenirs to consumers of Comfort.       

PART 2: THE SWOT ANALYSIS

2.1 EXTERNAL ENVIRONMENT ANALYSIS

Macro-environment factors

2.1.1 Demographic-economic factors

The first macro-environmental force that marketers monitor is population because people

make up markets. Marketers are keenly interested in the size and growth rate of population in

different cities, regions, and nations; age distribution and ethnic mix; educational levels;

household patterns; and regional characteristics and movements.

Demographic factors

Unilever has carefully conducted research and analysis of the company's business

environment in Vietnam as a basis for devising their marketing strategies.

The first force needs to be monitored is the population, because people makes up markets.

Demographic consists of a set of factors such as: size, structure, growth rate and distribution.

The basic elements of the population environment that marketer must know are: the market

size, population growth rate, age structure of population, family size ......

- Vietnam is the 2nd largest population in Southeast Asia and thirteenth largest one in the

world.

- Large-scale, rapid development speed.

According to the General Statistics Office, Vietnam’s population in total was 87.84 million

people in 2011, include: male population 43.47 million, reach for 49.5% of the total national

population, female population 44.37 million, reach for 50.5%.

- Population density: Vietnam population is unevenly distributed throughout the

countries… The number of people living in urban areas is 25,37 millions people and makes up

30% of the total population. Hanoi and Hochiminh is two largest cities with approximately 7

millions inhabitants in each. Those living in rural makes up 70% of the whole population.

- Young population:

According to the General Statistics Office: Labor force aged 15 and the older in 2011 of the

country is 51.39 million

This is the source to supply human resources and customers to businesses

- Income and standard of living are increasingly improving. Therefore it bring the large

market potential for firms to do business.

Economic factors

Economic environment plays an important role in the movement and development of the

market. Therefore, economic factors affecting consumption, purchasing power and marketing

activities of businesses in general and Unilever in particular. Vietnam is a market offering

ground floor and growing opportunities for both local and foreign companies. Vietnam’s

economic growth rate has been among the highest in the world in recent years, expanding

annually at 5-8.5 percent, while industrial production has been growing at around 14-15 percent

per year. The growing economy will result in people’s increasing consumption demand;

therefore, facilitate Unilever’s operation to become stronger in the Vietnamese market.

Moreover, Vietnam has joined WTO; this is a good chance for many enterprises to compete in a

good and fair condition. There is no afraid that foreign companies will be less favored.

Economic structure:

The economies are more and more developing. The structure of industry are changing in the

development trends of trade and services and narrowing agricultural sector. Perceiving those

things help the company make the products in accordance with market demand, consistent with

the development orientation of the business.

Economic growth rate:

Economic growth rate of Vietnam in recent years continuously ranks high position in the

region, but have not been really sustainable. The economy is quite sensitive to the negative

effects from the outside such as recession global economic lasted from 2007 to now, the inflation

rate, inflation in the last three years in the two-digit approximation have made some business full

of hardship due to rising input costs, people tighten spending, Unilever itself has faced certain

difficulties.

Per capita income:

In recent years, Vietnam has made significant achievements in economic development,

improving people's lives. However, the majority of Vietnamese people are still in middle and

low income level compared to others countries in the region such as Singapore, Thailand,

Philippines, Malaysia, Indonesia etc. Therefore when forming business strategy Unilever can

meet some certain difficulties such as determining which kind of product will be provided to suit

the pockets of the Vietnamese people. The company will solve simultaneously two problems at

one time. It was both adapting their products to local, and producing cheap products on the

market. At the same time, company has to be profitable. This is a really hard problem with

company. However, according to the company’s evaluation, although Vietnamese are low-

income, Vietnamese are crowded and consumption the product of the company is very high. So "

drop by drop, the sea is drained " the company can still conduct business activities in Vietnam

and profit by making products of the company in accordance with the consumer's ability to pay.

Structural changes in the population's spending:

Thanks to economic development, the majority of the population lives improved

significantly. If in the early 90s of the last century when Unilever initially penetrate the

Vietnamese market, the company focuses on the development of the mass market segment and

meet the essential needs of the people with moderate prices, but now the company has started to

develop more high-quality product line parallel with maintaining the influence of governing in

the existing market segments.

Infrastructure of the economy:

The first is the transportation system, communications in large cities, especially in Hanoi

and Ho Chi Minh City have been adequate investment, first par with one of the countries in the

region. Inter-provincial transportation network, districts, communes are renovated and upgraded.

So companies can expand product distribution network into the hands of consumers not only in

big cities but also in rural and remote areas. Internet are unversalized fast. Telecommunications

and postal services reduced significantly compared to before. It allows companies to apply

modern technology in the production process as well as business management process  to reduce

costs and improve operational efficiency.

2.1.2 Technological factors

The technological environment is perhaps the most dramatic force now shaping our

destiny. Technology has released such wonders as penicillin, organ transplants, notebook

computers and the Internet. It has also released such horrors as nuclear missiles, chemical

weapons and assault rifles, and such mixed blessings as cars, televisions and credit cards. Our

attitude towards technology depends on whether we are more impressed with its wonders or its

blunders.

The technological environment is changing rapidly. Marketers should watch the

following trends in technology. Internet has been strongly developed in Vietnam since last

decade. People in Vietnam now easily grab a chance to use internet almost everywhere. Internet

becomes a useful tool for not only users but many administrators, companies to expand their

business. There are many online companies which work so effectively and attract many

customers only by the internet. They find it more easily to provide their services just by one click

and customers also find it clear to search information about what they’re looking for. Thanks to

internet development, Vietnamese people have a chance to update and catch up with the

technology all over the world. Vietnamese government pays more attentions on technology

transfer since our infrastructures are still weak and lack. Government already see the important

of applying newest technologies on manufacturing, therefore, they pay more attention and focus

more on research and development fields. Government also requires enterprises concentrate on

this field and invest more capital on it. In recent years, we not only show interest in technology

transfer but also try to catch up with technology situation in worldwide.

Unilever has launched the biggest technological innovation that the spreads market has seen

for more than 60 years with tastier, healthier products.

Innovative technology

Using proprietary technology developed by Unilever R&D in Vlaardingen, Netherlands,

called Cool Blending technology, the secret to this breakthrough lies in the way we can deal with

hard fats – essential ingredients that add structure to margarine.

Less saturated fat

The Cool Blending technology crystallises hard (or saturated) fats in a unique way, creating

better crystal structures than with conventional technology. This allows us to reduce the amount

of saturated fat that we use in the product significantly, whilst the margarine making process

becomes a very simple blending operation of healthy oils, a dairy phase and only a very small

amount of crystallised vegetable fat. In fact, we are able to produce margarines of superior

quality – in terms of taste and texture – with up to 80% less saturated fat than butter.

Reduced environmental impact

Oils and fats are the biggest contributor to greenhouse gas emissions in the manufacture of

spreads and through this method we will reduce the amount of fat we need to use in margarine

production by almost a quarter. By using fewer ingredients, we make a much smaller agricultural

impact and in turn reduce our carbon footprint.

Re-launch of Flora/Becel

As the benefits of this technology fit well with the positioning of Unilever’s Heart Health

brands such as Flora/Becel, the launch of the new recipe has been timed to coincide with the re-

launch of Flora spreads which will be rolled-out across Europe during 2012.

A platform for future innovations

The Cool Blending technology was tested on a new production line in Poland and what

started as a small-scale trial is set to have a big impact. It will both improve the nutritional

credentials of our Heart Health spreads and also create a platform for future innovations across

all brands.

Investment in production facilities

With the planned transition of 125,000 tonnes of margarine to our new Cool blending–

fuelled recipe, we’re investing €35 million to transform six production lines at three European

factories: Purfleet in the UK, Pratau in Germany and Katowice in Poland.

2.1.3 Political-legal factors

Marketing decisions are strongly affected by developments in the political environment. The

political environment consists of laws, government agencies and pressure groups that influence

and limit various organisations and individuals in a given society.

Vietnam is a country with political stability, where there are also many incentives for

foreign investment enterprises. Besides, in recent years, Vietnam’s economy has benefited from

its government ‘s opened-door policy. With a stable political environment and its economic

potential, Vietnam is an attractive destination foreign investors. Especially, the Vietnamese

government has been endeavoring to create a favorable investment environment by continuing to

complete Vietnam’s legal system and introducing important incentives for foreign investors.

Thanks to the preferences, Unilever will definitely grab the opportunity of rapid development in

Vietnam. Besides, Unilever also supports the sustainable economic development of Vietnam and

helps to improve of living standard as well as the condition of the poor. Encouraging the

integration of Vietnam in the world economy by bringing it into the world trading system, and

supporting the process of economic and social reforms.

It is the policy of the Unilever Group to strictly comply with all laws and regulations

relevant to our activities. They participate in discussions on food legislation and regulations

between international organizations, government representatives, industry, the scientific world

and consumer associations. Unilever also applies this policy to environment related matters. In

order to complement that plan, they cooperate with legislators through local industry associations

in order to promote laws and regulations in the field of environment which are reasonable,

rational, realistic, applicable and enforceable. They oppose unjustified bans and any other

discriminatory measures. Unilever favors the harmonization of food regulations in order to

remove existing trade barriers and to avoid the creation of new ones. This applies also to

environmental issues. We favor the exchange of information, of experience and of knowledge

between the various interested parties. Thanks to all these synergies, Unilever can contribute to

valuable discussions and be recognized as an active partner in helping authorities to formulate

comprehensive strategies in the field of the environment.

2.1.4 Social-cultural

Vietnam is a very populous country, placed 13th in top most populous countries in the world

and 3rd place in Southeast Asia areas. Vietnamese growth rate is quite fast, approximately 1

million people per year. Population structure is young with age group from 0-14 account

for 27%, age group from 15-59 is 64% and age group above 60 is only 9% (according to the data

of 2005). Young population becomes one of the most important advantages for Vietnam to

attract many multination companies as Unilever. Since Unilevers’ products including many

products for children care (such as milk, powder milk, cereal, yoghurt, etc.), Vietnam is a very

potential market for Unilever to further explore and develop in the future. Young population is

also the great source for workforce which attracts many foreign investors coming to Vietnam.

Second, the culture in Vietnam found that Vietnamese companies are receptive to what is

new and innovative perspective, attitude greet new ones as long as the new ones fitway of life,

their way of thinking. They prefer consumers new products, new is always better with more

quality is improved, even when they are not aware of a certain product, issues to promote the

company's products also do not see too many difficult, because the Vietnamese people are

curious, the company conducting the promotion, advertising just stimulate their curiosity is a

product that will be successful. In addition, the company also found that Vietnam is very diverse

preferences, consistent with the range of the company's extensive product, the Vietnamese do not

like completely separate one color, such as Chinese favorite color red is the color of happiness,

the Vietnamese are generally varied without the elimination of something related to art, except in

cases related to their habits and customs. On the other hand, the company also plans the company

will find out and understand more about these issues than when companies hire people to work in

Vietnam and joint ventures with Vietnamese partners Vietnamese Nam.Tai the divided into

groups of social capital is not by Vietnam is a poor country and take the path of socialism, so the

problem for the company is to serve a large number of consumers, rather than any group people.

Micro-environment factors

2.1.5 Customers

At any point in time, the firm may deal with one or more customer markets: for example, as

a consumer packaged goods manufacturer, Unilever has to communicate brand benefits to

consumers as well as maintaining a dialogue with retailers that stock and resell its branded

products.

Most of Unilever's brands have become household names in Vietnam. Everyday, more than

5 million of our products reach Vietnamese households. That says a lot about brands like PS,

Clear, Knor, Omo, Lifebuoy, Sunsilk etc. and the presence of these brands in the daily life of

Vietnamese people.

Moreover, Vietnam is a consumer market of huge potential in the same league as several

other markets in Asia, like China, Indonesia etc. Vietnam’s consumer market has, and continues

to benefit from steady economic growth in the past 15 years that has resulted in increased income

for consumers, improved infrastructure, increasingly modernized distribution network, fast

changes in lifestyle and widespread urbanization.

This is also a market with a very young population. All in all, this is a market with great

potential, which will become increasingly competitive. Companies with strong brands that

continuously delight the consumer will have the advantage. It is a very big advantage for

Unilever to develop here.

2.1.6 Competitors

The marketing concept states that, to be successful, a company must provide greater

customer value and satisfaction than its competitors do. Thus, marketers must do more than

simply adapt to the needs of target consumers. They must also gain strategic advantage by

positioning their offerings strongly against competitors’ offerings in the minds of consumers.

In detergents industry, Comfort has become the pride of Unilever, maintaining its

1st position in Vietnam with more than 55% of market share since 1999. However, as soon a s

Comfo r t made i t s appearance known in the market, it has also begun its struggle against

other competitors. The strongest one of all is Downy, the product of Proctor &Gamble group.

Downy was launched right after Comfort was introduced to the market. It can be said that the

number of campaigns and commercials ads poured into the two products from two sides

have been equally effective and attracted attention. That might partly explain the market share

between of the two has been in a tight match. Firstly, the two products are produced by two both

well-known companies, which can somewhat assure their look in customers’ view. Then, the

quality could also buy consumers with their position as worldwide brands plus the diversification

of the product lines gives customers numerous choices to choose. Also, advertisements of

Downy and Comfort have been skillfully customized to attract attention and create certain values

to customers.

From the introduction stage up to now, customers have been exposed to a handful

of advertisements of both companies. When Comfort launches Comfort with lasting-fragrance,

Downy immediately offers this kind as well. Comfort creates a beautiful image of a little angel

protecting the fragrance of clothes to illustrate its Comfort Fragrance-Angel. Downy competes

with Downy Incense Flowers, creating a demonstration through a flower field always presented

in clothes. Comfort introduces Comfort new version; Downy also has Downy new

version; Comfort comes up with Comfort anti-mosquitoes, Downy provides Downy anti bacteria.

Both of them make campaigns to market for their product. About the price, Downy’s price is

higher than Comfort’s one in general. In pack-shape, price for a pack of Downy is 2000VND,

whilst a pack of Comfort costs 1500VND.

In recent months, the battle has become fierce when Unilever has launched a promotion

using two eye-catching characters Andy and Lili and seem to gain attraction from consumers.

From this commercial, Unilever gain the higher revenue. While Unilever invest so much on this

commercial, P&G is still quite silent. Whether P&G is planning a state-of-the-art Downy ever

with outstanding functions and best-ever components; or nurturing a win-away strategy? Time

will give the answer and the rivalry between the two promises to be a prolonging harsh and

unforgiving one.

However, at this point, it appears that Comfort is gaining the upper hand over

Downy. The positioning of Comfort in Vietnam and its biggest competitor, Downy, can be

illustrated through the following map

The major rival in the market is identified as Downy from P&G Company. That

might partly explain the market share between of the two has been in a tight match

Other than Downy, Essence, Vel, and Softlan are considered as Comfort’s secondary

competitors in the Vietnamese market.

2.1.7 Distributors

In 1995, Unilever entered to Vietnam and decided to create a marketing and distribution

system nationwide, covering more than 100,000 locations. Unilever has taken the concept of

online retail sales and used sales staff each retail store. These employees have the tasks of

offering new orders, delivering and crediting for orders next.

The retail display cabinets annual and maximum use of space in their stores and eye-

catching products. In addition, the company also helps its distribution arrange loans to buy

vehicles, training, management and sales organization.

Until the end of 2002 the company currently has about 350 distributors and more than

150,000 retail stores and wholesale products companies across the country. A staggering figure

and means that the company's products flooded the Vietnamese market from remote regions to

the busiest places in urban Vietnam.

The development of the distribution system of Unilever.

Unit: Number of agents

Year

Distribution

channels

1996 1997 1998 1999 2000 2001 2002

Large distributors 57 125 198 250 293 336 350

Wholesale dealers 1.500 3.300 5.050 6.400 7.200 7.900 9.300

Reseller 30.000 50.000 64.000 83.000 96.000 120.000 135.000

With two goals set by the company for its distribution system is always available and

always present, the company's distribution system to this time has achieved the second target.

The success in the implementation of the company's distribution system in Vietnam market have

to talk about the dynamics of the Vietnamese employees for the company, however, could not

mention the financial situation in the economic business of the company is to use the dealer of

Vietnamese business partners of the company perfectly without encountering any problems

regarding personnel and strengthen the distribution system coordination. Any of a marketing

policy relating to the distribution system set out by the company are implimented by the agents

of the company on a national scale smoothly and perfectly.

2.1.8 Suppliers

Suppliers are an important link in the company’s overall customer value delivery

system. They provide the resources needed by the company to produce its goods and services.

Supplier developments can seriously affect marketing. Marketing managers must watch supply

availability – supply shortages or delays, labour strikes and other events can cost sales in the

short run and damage customer satisfaction in the long run. Marketing managers also monitor

the price trends of their key inputs. Rising supply costs may force price increases that can harm

the company’s sales volume. Increasingly, today’s marketers are treating their suppliers as

partners in creating and delivering customer value.

Vinachem (Vietnam National Chemical Group) became the strategic supplier and a part

of global supplying chain of Unilever, apart from the current long-lasting cooperation

partnership between Unilever and Vinachem's subsidiaries. Unilever Vietnam and Vinachem will

work on construction of new base chemicals plants and development of the petrochemical

industry. To cut reliance on imports, Unilever will cooperate with Vinachem and its affiliates to

develop and turn out materials including lab, sodium sulphate, soda ash light, sorbitol and

zeolite. They shall establish manufacturing and supplying plants subject to competitive terms and

actual demand in the future.

Besides the need for procuring key materials to replace imports, Unilever will explore

opportunities for Vinachem to export these materials to other Unilever Group’s companies in

ASEAN, Asia and to Unilever globally. The export will depend on competitive terms, actual

demand and quality requirements of those companies.

Unilever and Vinachem will consider their cooperation expansion to cover other key

materials based on the successful sourcing/supplying of the aforesaid initial materials when

opportunities arise.

As a result, key raw materials will be produced and sourced within Vietnam to help the

country reduce reliance on imports, increase exports, and enhance cost competitiveness of both

parties. In details, Unilever would support and cooperate with Vinachem in producing and

supplying main raw materials in Vietnam, therefore helping lower the dependence on imported

materials, improving the production conditions, enforcing exports.

2.2 INTERNAL ENVIRONMENT ANALYSIS

2.2.1 Managerial model

Framework of an organization refers to the method that people and works are arranged to

support it in reaching the targets and implementing its tasks. The framework of Unilever is the

combination of leaders including executive directors, non-executive directors, senior officials

and staff who all form unity of orders and actions. The Executive directors are those members of

the Unilever executive (UEX), including the group chief executive, who are also directors of

Unilever. Some of them are not Vietnamese.

Organizational Structure Diagram in VN

From 2010 till now, Unilever VN has more than 1500 staff and it indirectly created jobs for

over 7000 people. The company always considers developing human resource as breakthrough

for sustainable growth. Each year, Unilever recruits from 20 to 25 future leaders for the position

in fields of marketing and business (sales), finance and accounting, supply chain, production and

personnel ...Up to now, about 211 students are recruited and trained.

Unilever VN has built up a native professional staff and regularly attach special importance

to training programs. The company always pays attention to the interests of employees and is

willing to support the staff in their work.

Unilerver Vietnam’s sound policies which pay attention to the human resource has built up a

good working environment and professional and responsible staff who all work for the common

mission of the organization.

2.2.2 Working conditions

Creating a comfortable workplace for all employees, reflecting the company’s

mission “adding vitality to life”.

The office is like a “second home” for all employees with completed & convenient facilities

& function rooms such as: gym, beauty salon, canteen & cafeteria. After work, employees can do

exercise, treat themselves and relax here to feel good and have more vitality, thus they can

growth the business together and get more out of life. 

Providing a modern office with all the highest standards of a “Green” working

environment.

The building satisfies all the highest requirements for a modern and environment-friendly

workplace: efficient light with less wattage, natural light utilization, energy-saving air-

conditioner system, equipping the energy-saving protecting glass, CO2 censor etc… 

Enhancing interaction with customers and consumers.

There are areas specifically designed for consumer and customer interactivity enhancement:

hair care salon, skin care salon, demo & show kitchen and laundry area. All these areas are

opened to consumers and customers to enjoy the innovation of Unilever products under the

instruction of professional experts.

Creating a modern & high-tech working environment.

The Office of Unilever Vietnam has been constructed and well equipped with modern &

high-tech office facilities, meeting Unilever Global standards. 

2.2.3 Striking features

Comfort

Comfort was the first Unilever fabric softener to be launched in the UK in 1969. Today

Comfort is a global brand, operating in Europe, Asia, Latin America and the Middle East.

1984 saw the launch of the first concentrated fabric softener for Comfort, which was three

times more concentrated than regular fabric conditioner.

In the 1990s, the Comfort brand went through a number of changes: a new logo and more

modern packaging in 1992 and the first fully biodegradable formulation in 1993. In 1998,

Comfort replaced cartons with more environmentally-friendly and lightweight crushable bottles,

introduced their first hypoallergenic fabric conditioner and launched tumble dryer sheets.

Caring for your clothes is important as it allows you look good and feel good.Understanding

this, in 1999 Market Leader of Unilever Viet Nam launched Comfort withthe aim of making

customers feel cared for everyday by bringing softness and long-lasting freshness to their

clothes. Immediately, Comfort has long been winning the loveand loyalty of consumers with

more than 55% market share and become the number onefabric conditioner in Vietnam.

With the desire to meet the changing needs of consumers, Comfort keeps innovating and

introducing new products to the market.

Not only offering softness and long-lasting freshness, Comfort also offers extra benefits.

- Comfort White which is the only fabrics conditioner endorsed by the Dermatology

Institute of Vietnam that is safe for sensitive skin, is the best choice to protect your skin and

make clothes very soft, which is very suitable for baby’s clothes.

- Comfort Active Confident with tea tree oil extract protects your clothes from malodour

and keeps you feeling fresh and active the whole day long.

- The latest innovation is Comfort Thom Lau Huong Ban Mai (Blue Concentrate) with

fragrance capsules (Hat luu huong) which protects the perfume and only releases it during wear.

This innovation again reinforces the long-lasting benefit of Comfort Blue Concentrate in the

fabric conditioner market.

PART 3: SWOT EVALUATION

In recent years, the competition among consumption markets between Vietnam and

foreign countries became so fierce, especially products originating from multi-national

companies which are currently present and dominant Vietnam market. Unilever -Vietnam is

one of the giants on the market of products and services, it has provided a large number of

essential goods for daily consumption of Vietnam such as toothpaste, P/S, shampoo Sunsilk,

Omo washing powder, etc. ... every year. This is not only a threat to domestic producers but

also an example for them to learn about business marketing experience of a large multinational

company with world-class like it.

It can be said that Unilever has a thoughtful and creative marketing strategy which makes

it well-known to attract the most customers for the company's products. The company takes the

advantage of their inherent strengths as well as promoting the opportunities from the market to

bring huge revenue every year for the company. SWOT analysis below will show all about the

strengths, weaknesses, opportunities as well as threats Unilever gets.

3.1 STRENGTHS

• Unilever Vietnam has the support from global Unilever; therefore it has strong financial

background. The visit of Mr. Paul Polman, CEO of Global Unilever, on 10 th April 2009, again

confirmed the potential of the Vietnamese market which is growing very fast, as well as the

important role of Vietnam in the group of new markets and developing countries of the

Unilever Group.

• An effective policy of attracting potentials: The strategy of the company is that

"Development through people”. Through their career days for students who are about to

graduate of the prestigious universities, the company will find out potential candidate and train

them to become Administrators who set the light for the company's human resources. In

addition, the company also gives high salary, benefits, and courses in Vietnam and also abroad

for staff to enhance their qualification.

• Unilever Vietnam has been adequately invested and focused on Research and

technological development. In particular, R & D works very effectively in the preservation of

traditional products such as shampoo Gleditsia, salt toothpaste. Besides, R&D shows its

effectiveness in the modern products such as Comfort or Omo… Modern technology inherited

from the global Unilever is applied quickly and effectively. Unilever VN makes customers

surprised many times with their new technology. Recently, we see new Comfort which has

essential oil with the advertisement of Comfee family. And how about Omo? The whirlwind-

power Omo is the newest kind.

• The price is relatively acceptable, while the quality is as high as imported goods. The

target customers of Unilever are ranged from children to adults, from low class to high class.

Therefore, the price is set up quite suitable for everyone.

• The staff of Unilever VN not only focuses on the mission of the company but also pays

much attention to the relationship with the public. Besides, the staff has high ability to adapt to

quick changes in the production line as well as market.

3.2 WEAKNESSES

The key positions in the company are held by foreigners. The CEO of Unilever Vietnam

is Ralph Kugler. This may lead to the differences in the perception between CEO and

Vietnamese employees; which is the causes of conflicts.

• There are some technologies which are not applied in Vietnam due to high cost, such as

the input for perfumes… Moreover, the company does not fully take advantage of abundant

and skilled labor resources in Vietnam.

• Because Unilever is the company which originated from Europe, some policies of it

may be not really suitable with Asian culture.

3.3 OPPORTUNITIES

• The policy of Vietnam is to build Vietnam's economy oriented industrialization,

modernization. Therefore VN government always gives priority to attracting foreign

investment, especially from transnational and multinational companies such as Unilever to

increase the budget.

• Domestic markets (wholesale, retail, goods circulation ...) have dramatically developed.

Also infrastructure in major cities, especially Ho Chi Minh City and HN have been

appropriately invested to reach to the level of other countries in the region.

• Vietnam is a country which is freely religious, so the distribution and advertising of

products is not limited. In addition, Vietnam has a young population structure and extended

family models (including grandparents, uncle, etc ...), which creates many opportunities for

Unilever because they are all the target customers of the company.

• Vietnam is located in a relatively favorable position in the region with a long coastline,

many major ports, giving a chance to export goods when Unilever begins to focus on exporting

in the near future. And, Unilever comes to Vietnam when the consumption market here is new,

so it has more favorable conditions to do business.

3.4 THREATS

• Unilever has very strong competitors like P&G, Nestle. These competitors always try to

give tough time to Unilever, make it difficult for Unilever to enter Vietnam market.

• Commercial Code also creates many disadvantages for foreign investors, especially

tariff policies and high tariffs levied on imported inputs which needed for Unilever’s products

such as some kinds of input for perfumes.

• In the context of present consumption markets, there is also greater and greater demand,

many new companies start to enter market and compete with Unilever. As we can see from the

fact that Unilever has to put more and more names in its competitors list.

From SWOT analysis, some suggestions are mentioned to help Unilever Vietnam

continue to be the best consumption brand for Vietnamese customers.

PART 4: CONCLUSION AND RECOMMENDATION