Case Study : Unilever Sustainable Living Plan

1. 1111200032 Zidan Abdullah Zidan MBA MMU Cyberjaya
1111200077 Fariba Maroofee BMM7034 Class
1111200128 Muhammad Alshahrani 1st Group
1111200141 Uun Ainurrofiq Oct 2011
1111200166 Julius Tanantaputra

2. Case Synopsis
Unilever's corporate is one example of best-practice companies that have
moved past the tacit attention firms paid to “green marketing” in 1990s and
on to an emerging global movement of sustainability
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

3. Case Analysis
Analysis of FMCG Market and Decision on Unilever Sustainability Plan
(Porter 5 Forces Model)
Analysis of Market Segments
Competitive and Company Analysis
Modes of Entry
Decision
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

4. The Porter’s 5 Forces Model
1. Entry and Exit Barriers
• Entry Barriers :
– Huge investment in technology, materials, R&D
– Difficulty in finding investor/shareholder
– Establish a good network for distribution
• Exit Barrier :
– Huge amount of investment that already spent
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

5. The Porter’s 5 Forces Model
2. Bargaining Power of Suppliers
• Main suppliers : farmer, agricultural workers
Sustainability program  strong relationship  low bargain power
3. Bargaining Power of Buyers
• Buyers : retailer, convenient store, supermarket, small shop
Less differentiated products, price competes  big buyers make own
label brand  moderate to strong bargain power
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

6. The Porter’s 5 Forces Model
4. Threat of Substitutes
FMCG company usually makes many forms of a product
kinds that can be substituted for one and another
Exampe :
• tea bag – tea syrup – tea powder
• liquid soap – bar soap
 Threat of substitutes is not going to be a real threat
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

7. The Porter’s 5 Forces Model
5. Intensity of Rivalry
Now :
 Participant rate in sustainability is low
Future :
 Predicted to be tough and fierce rivalry.
Companies are increasingly seeing the importance of
sustainability and moving towards implementing a
sustainability strategy.
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

8. Attractive Aspects
• The potential growth is still high
• Bargaining power of supplier relatively low
• Entry barriers for the sustainability market are high
Unattractive Aspects
• FMCG market is in a fierce rivalry competition
• Bargaining power of buyers is strong
• Participant rate of sustainability issue predicted to be
high in the future
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

9. Analysis of Market Segments
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

10. Product Categories
BMM7034 Case Study| MBA MMU Cyberjaya Oct 2011 | Group 1

11. Competitive and Company Analysis
Involvement in Sustainability Program
Unilever has topped rankings of the
companies most committed to
sustainability, in a poll carried out by
consultants SustainAbility and
researchers GlobeScan.
The poll asked 559 qualified
sustainability experts from business,
government, non-profits and
academia to name large companies
that are committed to sustainable
development.
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

12. Unilever Sustainable Living Plan
BMM7034 Case Study| MBA MMU Cyberjaya Oct 2011 | Group 1

13. Competitors
BMM7034 Case Study| MBA MMU Cyberjaya Oct 2011 | Group 1

14. Modes of Entry
Joint Venture
Direct Investment
Licensing
Exporting
Internet
BMM7034 Case Study ”Unilever Sustainable Living Plan”| MBA MMU Cyberjaya | Oct 2011 | Group 1

15. Thank You...
...welcome to Q&A Session

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17. P&G Leading Brand
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20. P&G 2020 ENVIRONMENTAL SUSTAINABILITY GOALS
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