BSB20128-7: Economics and Marketing: Marketing
Pre-Seen Case Study
Business School
Session 2011/12
For AUGUST 2012 RESIT
Postgraduate Business Programmes
BSB20128-7
Economics and Marketing
Pre-seen Case Study
for the Marketing Class Test
AUGUST 2012 RESIT
Case Study:
Unilever
Examiners:
F Moran
Hand out date:
July 2012
Class Test:
wc 13 August 2012
Please collect your Marketing Feedback Comments Sheet
for the Class Test that you sat either in January or May
2012 from the Business School Reception.
BS20128-M: Economics an Marketing - Preseen Case Study for Marketing: UNILEVER
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Marketing Assessment: (66.7%)
The assessment for this module is a critical evaluation of
marketing management issues of a pre-seen case study in the
form of a two-hour class test.
Marketing - Learning Outcomes:
The class test is designed to assess students’:
1. systematic understanding of the core concepts of marketing
and their critical awareness of factors which give rise to the
need for a more strategic approach to marketing
management;
2. ability to critically evaluate the organisation’s marketing
management issues in relation to their business
environment and to apply marketing management concepts
(tools and techniques) towards developing and formulating
in-depth analysis of situations that will generate effective
marketing decisions and strategies;
3. ability to assess a range of contemporary developments in
marketing and to apply marketing ideas (including ethical
and e-commerce) for a variety of circumstances;
The class test will assess the students’ ability to critically
analyse and marketing management issues and apply
appropriate marketing theory.
Assessment Guidelines:
Your written answers must be compiled in a suitable format that
must incorporate the following:
•
•
•
A clear and concise outline of the practical marketing
management issues;
Use of appropriate terminology that will indicate a thorough
understanding of marketing management concepts;
Suitable application of theory and concepts used to support
arguments put forward that will indicate competence in the
marketing management issues discussed;
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•
•
Evidence to suggest a more in-depth understanding of the
marketing concepts being reviewed and their practical
applications;
Written content and structure that will demonstrate practical
benefits being derived from the module, reading lists and
research required for the module.
Assessment Guidelines:
Level M modules require that work carried out will incorporate most
of the following features:
Fail:
•
•
•
•
•
•
The answer/s will lack the structure, content and use of
appropriate terminology that would be expected from a student
able to conduct a disciplined analysis of marketing management
issues; or make appropriate conclusions following a critical
evaluation of a range of theoretical strategic options.
The answer/s will not demonstrate ability for independent
thought and is therefore unlikely to contain a recognisable
critique of concepts although it may “list” some theories/concepts
that might, or might not, apply.
The answer/s will not balance academic theory and the practical
application of such to a well-described marketing issue.
The answers will provide little, if any, evidence of the student
having "read around" the subject matter. As such the answer/s
will contain few, if any, theoretical underpinnings.
The answer/s may be inconsistent in approach as well as content
- sometimes minor areas, or inappropriate theories, might be
discussed at length while relevant or seminal theories are
omitted all together. Indeed it may not be clear exactly which
theoretical area or practical problem the student is critically
analysing in the case study.
Any conclusions to resolve the practical marketing problem
discussed will probably not result from a disciplined analysis of
the marketing problem or a critical evaluation of a range of
theoretical strategic options available to the organisation given
the prevailing market environment.
Pass:
•
Sufficient issues are addressed in order to distinguish between
the rote learning student and those students with the ability to
generate a required level of independent thought processes but
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•
•
•
•
which is inadequate to achieve a distinction due to inconsistency
or due to insufficient understanding.
Use of structure and terminology that shows an ability to
undertake disciplined analysis of the issues presented.
Content and structure that indicates an ability to analyse,
evaluate and make logical recommendations regarding the
marketing issues that encompass both practical examples and
theoretical elements.
Evidence that the theories behind the practical application of
marketing management concepts are clearly understood but with
certain aspects of the analysis being covered more extensively
than others that indicates a less insightful critique of particular
concepts.
A good grasp of the requirements necessary to conduct an
analysis of practical marketing management issues; an ability to
critique marketing management strategy from the case study;
and to make clear and practical recommendations to resolve the
issues faced.
Merit:
Apart from the attributes of a PASS paper, these papers will need to
encompass the following:
• Evidence of critical analysis and evaluation of a wide range of
issues and strategies to demonstrate extensive reading, and
application of theoretical concepts.
• Clear understanding of the theory related to marketing
management, with a consistent level of analysis and critique
applied throughout
• A balanced overview of the chosen topic, incorporating practical
application of marketing theory resulting in well thought out and
clearly articulated recommendations.
Distinction:
Apart from the attributes of a MERIT paper, these papers will need
to encompass the following:
•
Content that distinguishes it as being well rounded in both
structure and content with practical and theoretical aspects of
the answer/s being more balanced and with recommendations
put forward based on sound theory that shows theoretical
evidence.
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•
•
•
Strong evidence of having read extensively around the chosen
topic with extensive application of the theories to support the
recommendations proposed.
Consistency in the arguments used to evaluate and critically
analyse the marketing strategies and theories reviewed as well
as in the utilisation of basic analytical tools.
Use of a wider range of theoretical concepts than that of a PASS
paper, but which clearly and methodically stays focused on the
issues at hand.
Source: Adapted from T Hilton, 2007
Regulations on Resits:
You MUST attempt the first sit of all your assessments. If you do
not do so you will not be allowed a resit in the module. If the
module is core on the award you will therefore fail the award.
In essence, students who fail to submit any assessment for a
module will be given a Grade Point N (Fail due to nonsubmission) for that module and they will not be allowed a
further attempt at that module. This regulation applies to all
undergraduate and postgraduate awards and all levels.
This change now means that students will only be allowed to
attempt referrals once and only IF they have made an attempt
at the assessment(s) on the first occasion unless a claim for
Extenuating Circumstances has been successful.
The regulation change has been incorporated into the University’s
published academic regulations available on the website at the
following links.
Postgraduate awards:
http://www.staffs.ac.uk/assets/postgrad_regs_tcm44-26797.pdf
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Academic Dishonesty and Plagiarism:
Contrary to popular student belief getting caught and being
punished for committing plagiarism is not a rare occurrence. The
Business School typically uncovers and reports for disciplinary
action between 10 and 25 postgraduate students each year for
plagiarism.
It is strongly recommended that you read the full document on
plagiarism rules at:
http://www.staffs.ac.uk/images/academic_dishonesty_tcm6812681.pdf
What happens if you get caught?
Examination Boards may punish offending students in a number of
ways. Typically, punishments range from reducing grades, making
students re-sit modules, through to failing students on a module
or an entire award.
The University regards this form of cheating as a serious
offence. Please consider yourself warned.
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Marketing Class Test Feedback Comments
Pre-seen Case Study: UNILEVER
Student Registration No.:
Examiners: F Moran
Date of Class Test: AUGUST 2012
Key: 5=Outstanding, 4=Good, 3=Satisfactory, 2=Weak and 1=Very Weak
Module Specific Marking Criteria
1 2 3 4 5
Comments
Demonstration of knowledge, understanding and application of
relevant theory – use of theory and frameworks to support answers
Section A (40%)
Section B (30% + 30%)
Demonstrate systematic understanding of the core concepts of
marketing and their critical awareness of factors which give rise to the
need for a more strategic approach to marketing management;
Demonstrate ability to critically evaluate the organisation’s marketing
management issues in relation to their business environment and to
apply marketing management concepts (tools and techniques)
towards developing and formulating in-depth analysis of situations that
will generate effective marketing decisions and strategies;
Ability to assess a range of contemporary developments in marketing
and to apply marketing ideas (including ethical and e-commerce) for a
variety of circumstances;
Draw appropriate recommendations to marketing-based issues in a
creative manner that incorporates theoretical and practical aspects that
indicate a holistic appreciation of the topic.
Presentation: produce a succinct critique of academic literatures;
structure; terminology and breadth of readings
Please see problems with your written answer/s on the next page
Areas of Strength:
Areas where improvements can be made:
Provisional Grade for the
Marketing assessment:
Distinction
(70% + above)
Merit
(60 - 69%)
Pass
(50-59%)
Fail
(1-49%)
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Problems in the student’s written answers
1. Answer planning and technique
1.1 Misunderstood the question/s requirements
1.2 Failure to answer the question/s asked
1.3 Overly descriptive answers
1.4 Lacks depth/superficial
1.5.Lack of contextualisation
1.6 Irrelevant text
1.7 Lacks explanation (inadequate development)
1.8 Repeating case material
1.9 Incomplete answer/s
2. Use of the literature
2.1 Insufficient evidence of reading
2.2 Poorly integrated or applied quotations, diagrams or
models
2.3 Unacceptably vague description of theory
2.4 Incorrect theory used
2.5 Poor application of theory
2.6 Theory dump
3. Clarity of answers
3.1 Lack of Coherence - Unacceptably vague answers
3.2 Poor overall quality of your written English
4. Reasoning skills
4.1 Recommendations or statements with inadequate or nonexistent supporting evidence
4.2 Recommendations or statements with irrelevant
‘supporting’ evidence (lack of justification)
4.3 Statements contradicted by the offered ‘evidence’
4.4 Failure to discuss problems
4.5 inadequate critical evaluation/analysis
Source: Adapted from John Ramsay (2006), Staffordshire University.
oPlease come and see me to discuss the feedback and your poor performance.
Send me an email to set the appointment. F.M.Moran@staffs.ac.uk
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Unilever is one of the world’s leading suppliers of fast moving consumer
goods (FMCG) with strong operations in more than 100 countries and
sales in 180. Consumers buy 170bn Unilever packs around the world
every year, and their products are used over two billion times a day.
Unilever’s portfolio includes some of the world’s best known and most
loved brands including twelve €1 billion (£860 million) brands, and
global leadership in many categories in which they operate. The portfolio
features iconic brands such as: Knorr, Hellmann’s, Lipton, Dove,
Vaseline, Persil, Cif, Marmite and Pot Noodle.
Unilever has around 167,000 employees in over 100 countries, and
generated annual sales of €44.3 billion (£38.5 billion) in 2010. Unilever
is Food Industry Leader in the Dow Jones Sustainability World Indexes
for the 13th year running. Unilever is included in the FTSE4Good Index
Series and attained a top environmental score of 5, leading to inclusion
in the FTSE4Good Environmental Leaders Europe 40 Index. Unilever is
also ranked 7th in the Global 100 Most Sustainable Corporations in the
World, a list compiled by Corporate Knights Magazine. They achieved
Platinum Plus standard in the UK’s Business in the Community Corporate
Responsibility Index 2009, and was named Company of the Year in
2010. (www.unilever.com)
Advertising and Marketing
Advertising helps inform people about the benefits of Unilever products
and innovations. It is also a way for Unilever to engage with consumers
on issues that matter to them. Unilever is committed to responsible
marketing and have four clearly defined principles that guide their
communications:
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•
•
•
•
They are committed to building trust through responsible
practices and through transparent communication – both directly
to consumers and indirectly through other key stakeholders and
thought-leaders.
It is Unilever’s responsibility to ensure that its products are safe
and that it provides clear information on their use and any risks
that are associated with their use.
Unilever fully supports a consumer's right to know what is in their
products and will be transparent in terms of ingredients, nutrition
values and the health and beauty properties of their products.
Unilever will use a combination of channels, which includes
product labels, websites, Care-line phone numbers and/or
consumer leaflets to communicate openly with their consumers.
(www.unilever.com)
Unilever cites improved marketing efficiency for
profit bump
Unilever claims that a “brand first” approach to business and more
efficient use of its €3 billion (£2.6 billion) marketing budget helped it
post a better than expected 7.1% sales increase for the second quarter.
The Flora, Dove, Lynx and Ben & Jerry’s owner says sales for the three
months to 30 June grew to €11.9 billion (£10.4 billion), its best
quarterly performance since 2008. For the first half, sales grew to €22.8
billion (£19.8 billion), up 5.7% on the same period last year.
Operating profit increased 8% to €3.3 billion (£2.9 billion). Growth was
driven by gains in emerging markets such as India and Mexico,
offsetting weaker growth in “challenging” developed markets in North
America and Western Europe. It also cited “a good balance” between
price increases and volume growth. The volume of products sold
increased 2.2% in the second quarter, while prices grew by 3.5% to
offset higher commodity costs. More efficient deployment of its €3 billion
(£2.6 billion) advertising and promotions budget also helped improve
performance, the company adds although it cut spend by 1.5%
compared to the same period a year ago, when the spend was
“exceptionally high”.
Paul Polman, Unilever CEO told analysts on a conference call: “Our
profile of growth reflects the strategic choices we are making to
concentrate spending behind brands that have the most strategic
potential for growth. “Remaining more competitive is the right thing to
do and we have put our brands first without compromise. We now have
a much more robust business and can match the competition without
undermining our brands.”
He adds that its decision to restructure its business into four category
based divisions “takes the organisation to the next level” by simplifying
its ’go to market’ structure, while “driving faster and better innovation
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and better organising around the consumer”. By developing a beauty
strategy within its personal care division, he adds, Unilever can compete
better with rivals such as L’Oreal, which are already organised in the
same way. He adds that the restructure will become one of the
companies “defining moments”. (Baker, 2011)
Responsible marketing
As a leading global consumer goods company, Unilever promotes the
benefits of their products using many different channels of brand
communication. Advertising can be a powerful force for behaviour
change. Advertising helps inform people about the benefits of their
products and innovations. It is also a way for Unilever to engage with
consumers on issues that matter to them. For example, Dove's
Campaign for Real Beauty challenges current stereotypes about beauty.
At the same time, they recognise the influence of marketing and
advertising on consumers and take their responsibilities seriously. This
means ensuring that all claims they make have a sound scientific basis
and that all such communication passes the baseline test of being 'legal,
decent and honest', (www.unilever.com)
Unilever restructures to speed up innovation
Unilever has restructured its business categories to accelerate how
quickly it rolls out new products in emerging markets.
The personal care division which houses Unilever’s skincare, deodorants,
hair and oral care brands such as Lynx and Dove will be led by current
president of the Americas region Dave Lewis. The FMCG company has
also promoted Harish Manwani the current president of its Asia, Africa
and CEE region to chief operating officer to drive speed-to-market and
further simplification and efficiency measures. He will take responsibility
for all markets.
Paul Polman, Unilever CEO, says: “Unilever now has over half its
turnover in the emerging markets, where, over the last 10 years, growth
has been close to double digits. We have an opportunity to better
support this footprint of the business, to keep our strong momentum,
with a more globally aligned country and category organisation. Over
the past few years we have seen a significant step-up in our innovation
success rate and our speed to roll them out across markets. The new
structure will further accelerate this.” Unilever hopes to have the new
structures will fully operational before the year-end (Baker, 2011)
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Personal Care brands
Unilever personal care brands, including Axe, Dove, Lux, Pond's, Rexona
and Sunsilk, are recognised and respected around the world. They help
consumers to look good and feel good – and in turn get more out of life.
Axe (LYNX brand in the UK) : Helping males keep a step
ahead in the mating game.
With its coolly seductive fragrances and packaging, the brand has
established itself as the world's top male grooming brand by coming up
with a constant stream of new ideas to keep guys a step ahead in the
mating game. Each year, for example, Unilever launch a new deodorant
fragrance.
Adventurous & unconventional
Unilever has also taken the brand into a number of new areas, including
shower and hair gels. Their award-winning ads and marketing are
equally adventurous. In Colombia, for instance, a female Axe Patrol
visits bars and clubs, frisking guys and applying body spray.
Unconventional media channels are also being used. First launched in
France in 1983, Axe is now giving guys the edge in the mating game in
more than 60 countries. It holds the number one position in several
European and Latin American markets, plus has an increasingly powerful
presence in Asia and the US, where it was launched in 2003. Axe is the
world's most popular male grooming brand. It has excellent track record
of advertising awards, including 10 Cannes Lions. Axe is also the
established leaders in Europe and Latin America, developing strong
positions in new markets, especially in the US and Latin America. It is
sold as Lynx in the UK, Ireland and Australia.
Brylcreem: Cutting edge or classic?
Brylcreem was a sensation when it was launched in 1928, giving a
generation of men the freedom to style their hair with confidence. Those
classic Brylcreem looks are still hugely popular – but the Brylcreem of
today gives men hundreds of choices when it comes to styling their hair.
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Its gels, waxes, creams, clays and the original paste – all formulated to
include the latest in styling quality and power – give hair strength,
substance and texture. All that needs to be added, is flair.
England cricket star Kevin Pietersen is the latest in a line of confident
men who have held the title of Brylcreem Boy. The Test, One Day
International and Twenty20 legend has inspired some of our newest
packaging – a cricket theme that makes its products easy to apply and
looks great on the bathroom shelf. Kevin follows sporting icons like
soccer star David Beckham and cricketer Denis Compton in the role,
which dates back to the original Brylcreem Boys – the Royal Air Force
pilots of the Second World War, whose gallantry and dash made them
heroes to a whole nation.
Brylcreem products are sold in North America, Europe and India.
Dove: Celebrating beauty's diversity
Dove provides a wide range of cleansing and personal care products that
make a genuine difference to the condition and feel of your skin and
hair. Now the world's top cleansing brand, Dove started its life in 1957
as a beauty soap bar that was clinically proven to be milder for dry,
sensitive skin than other leading soaps: half of women have dry skin.
Bringing out real inner beauty
This promise remains at the heart of the brand and has been extended
to a number of other products, supported by the industry's longestrunning medical programme. Since the 1980s, for example, we've
launched a moisturising body-wash, deodorants, body lotions, facial
cleansers and shampoos and conditioners, giving you a comprehensive
range of solutions to bring out your true inner beauty.
Real results for real women
Unilever commitment to delivering real results is mirrored in their
advertisements. Their current campaign has been featured on over 25
major TV channels and in more than 800 articles in opinion leading
newspapers from El Pais to Le Parisien, from The Sun to The Times, as
well as in popular women's magazines. Unilever ground-breaking
campaign for their new Dove Firming lotion, which features women of all
shapes and sizes, is the latest example and underlines their commitment
to breaking down stereotypes and enabling customers to celebrate their
beauty.
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Taking action
Over the last few years, Dove has focused on delivering products that
inspire women to enjoy their own beauty and individuality. As part of
their Campaign for Real Beauty, the Dove Self-Esteem Fund (DSEF)
demonstrates their commitment to the brand's mission 'to make more
women feel beautiful everyday, by widening today's view of beauty and
by inspiring women to take great care of themselves.' The DSEF aims to
educate and inspire young girls through a series of tools and workshops
which ultimately protects and nurtures
Fissan: Protecting baby's skin
Fissan began with the famous 'Pasta di Fissan'. The original formula was
developed in 1924 to deal with irritation in the nappy area. It met with
huge success in Italy and has since expanded to become a trusted ally
to parents who wish to protect babies' and infants' skin and hair.
Fissan's range includes shampoo, bath products, moisturisers and
suncreams that protect against the effects of the sun, cold and wind, as
well as giving cleansing and protection to the skin and hair. Parents have
trusted Fissan for generations because of our commitment to safe,
dermatologically-tested treatments, which build on the natural defences
of their children's skin. Now Fissan makes ranges suited to newborns,
babies, and growing children. Bath products, shampoos, moisturisers,
gentle cleansers, nasal sprays, and of course a full range of products for
baby - all with the same mildness for sensitive skin.
Lifebuoy: Accessible hardworking soaps and liquid gels.
Lifebuoy is one of Unilever's oldest brands, a brand that was truly
'global' before the term 'global brand' was invented. Lifebuoy Royal
Disinfectant Soap was launched in 1894 as an affordable new product in
the UK, to support people in their quest for better personal hygiene.
Soon after launch, Lifebuoy soap travelled across the world, reaching
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countries such as India, where even today it is still the market leading
brand.
Consistent in Lifebuoy's 110+ year history has been its championing of
health through hygiene. The brand's core promise of protection and a
commitment to support life through unbeatable protection is at the heart
of the brand name itself – Lifebuoy, the guarantee of protection when
you are threatened. For example, a 1930's campaign in the US was
titled 'Clean hands help guard health', encouraging the use of Lifebuoy
soap to kill the germs on hands that can cause health issues. A similar
campaign continues today, with Lifebuoy hygiene education programmes
ongoing in countries including India, Bangladesh, Pakistan, Sri Lanka,
Indonesia and Vietnam.
Global Handwashing Day
To promote understanding of the importance of handwashing, Lifebuoy
launched the first ever Global Handwashing Day in 2008, together with
the United Nations and other partners. Lifebuoy brand teams in 23
countries helped raise awareness about how handwashing with soap can
prevent disease.
Pond's: Helping to keep the skin looking and feeling
naturally beautiful.
In 1955 Pond's Extract Company merged with Chesebrough
Manufacturing and in 1987 Unilever purchased Chesebrough-Pond's. By
this time the Pond's brand had built up a powerful international
presence. By the 1990s the face care market was responding to the
introduction of products delivering unmet needs. Pond's was at the
forefront of colour management developments in Asia and pioneered the
use of AHAs for anti-ageing in the US. Cutting-edge innovation and an
understanding of women's individual needs and priorities have
maintained Pond's strong position in a dynamic global arena. From one
man in a tiny home-made laboratory, to today's state-of-the-art R&D
facilities led from Bangkok, Mumbai, New York and Tokyo, the Pond's
promise has remained the same across 58 countries: to deliver products
that make a real difference to women's skin and the way they live their
lives.
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Radox: Radox bath and shower range.
Radox in first brand extension under Unilever ownership
Unilever UK is launching a new line for its recently acquired home and personal
care brand, Radox, backed by a £2 million marketing spend.
The new line, Radox Spa, is a range of indulgent "spa inspired" products, which
will be supported by a £2m marketing push, with a focus on digital activity. The
activity launched this October, 2011 is the first from Unilever since it bought
the brand in December 2010 as part of its £1bn cash acquisition of Sara Lee's
European personal care and laundry business. It includes Radox Spa "pop up"
stands at train stations and shopping centres across the UK, offering consumers
a professional massage, with targeted outdoor activity planned for mid-October.
Radox Spa: new range from Unilever
The digital element of the campaign features a "virtual Radox spa" created on
Facebook, in which consumers can take an online consultation to find out which
product is best suited for them and download "ambient music tracks" to help
them relax. Cassie Shuttlewood, brand manager for Radox Spa, said: "The
Radox Spa range has been developed to bring all the relaxation benefits of the
spa experience into peoples' homes."We have developed a programme of
innovative digital and experiential marketing activity to really bring the new
range to life; through sound, sight and experience, and we look forward to
inviting consumers all around the UK to step into a Radox Spa." (EleftheriouSmith, 2011)
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Unilever’s other personal care brands:
Lux: Lux offers a range of highly appealing beauty products at a
price customers can afford.
Rexona: Rexona gives the confidence to handle whatever the
day has in store.
.
Signal: Protecting and enhancing oral health 24 hours a
day
Simple: We believe in goodness.
St Ives: St. Ives: Harnessing ingredients from nature to
give customers fresher, more beautiful skin.
Sunsilk: provides real solutions to women's everyday
hair needs everywhere.
TRESemmé: Used by professionals
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Vaseline: To help you enjoy great, healthy skin everyday.
VO5: Style and care for the hair
Growth Strategy - Recent Acquisitions
Unilever to acquire 82% of leading Russian beauty company
Concern Kalina (14, October 2011)
Unilever, one of the world’s leading consumer goods companies and
Concern Kalina, the leading Russian beauty company, announced that
Unilever has agreed to acquire 82% of Concern Kalina. The transaction,
which is pending required regulatory approvals, values the equity of the
total business at RUB 21.5 billion (€ 500 million). Successful brands
enhance presence in attractive emerging market, strengthen Personal
Care portfolio and create leading position in skin care in Russia.
Concern Kalina is Russia’s largest local personal care player with leading
positions in skin and hair care and an expected 2011 turnover of around
RUB 13 billion (€ 303 million). Concern Kalina is headquartered in
Ekaterinburg, where its manufacturing facility is situated. The company
has a strong, extensive distribution network and sells its products
primarily in Russia, Ukraine and Kazakhstan. Paul Polman, CEO of
Unilever said: "We are delighted to be acquiring Concern Kalina. This will
transform Unilever’s personal care business in Russia, giving us leading
positions in skin care and hair care, as well as establishing a presence in
oral care. It will also strengthen and re-balance Unilever’s portfolio and
competitive position in Russia, an emerging market with considerable
potential and one of our priority countries."
The transaction fulfils a number of key criteria for Unilever. It:
•
•
enhances Unilever’s presence in an attractive, high-growth market
with a differentiated portfolio which has grown at above market
rates in competitive categories;
adds to Unilever’s portfolio successful, authentic Russian brands in
skin care, hair care and oral care like Pure Line, Black Pearl, Silky
Hands, 100 Recipes of Beauty and Forest Balm, complementing
Unilever’s own brands such as Dove, Sunsilk, Timotei and Clear;
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•
provides Unilever with the opportunity to use its technology to
take these brands to a new level.
Polman continued, "Personal Care is a strategic category for Unilever
and growing rapidly. Ten years ago it represented 20% of Group
turnover; strong organic growth has driven it to now reach over 30%,
with strong positions in many of the emerging markets. "Organic growth
remains the cornerstone of our ambition to double the size of Unilever
whilst reducing our overall environmental impact. Acquisitions such as
Concern Kalina supplement organic growth and add powerful new brands
to our portfolio."
Timur Goryaev, Chairman of Concern Kalina said: "The agreement
reached with Unilever will enable the brands we have built into some of
Russia’s best loved and most recognised since we started in 1996 to be
taken to new heights.” Alexander Petrov, CEO of Concern Kalina, added
“The coming together of our company with one of the most successful
and best-known global companies represents a tremendous vote of
confidence in the strength of our brands, the people who have built
them and the potential of the Russian market. The combination with
Unilever will also provide our employees with opportunities in one of the
best companies in the world."
Subject to obtaining the required regulatory approvals, the acquisition is
expected to complete by the end of 2011. On completion Unilever
intends to launch a Mandatory Tender Offer to acquire the remaining
shares that are not part of the initial agreement, at such time and on
terms mandated by Russian law.
Concern Kalina
Today, Concern Kalina is one of the leading Russian personal care
manufacturers offering a wide spread of products to its consumers in
Russia and the CIS. Concern Kalina works to build the leading brands in
Beauty sectors of the market. Key pillars to success of the corporate
strategy have been consumer-centric marketing; focus on fastestgrowing products and growth across key categories and geographies.
Concern Kalina develops strong brands in the key segments of Russian
personal care market. The leading brands of the company are Black
Pearl, Clean Line, 100 Recipes of Beauty and Silky Hands in skin care,
and 32 and Forest Balsam in oral care (www.unilever.com)
Charlie Mills at Credit Suisse said, “The deal makes little difference to
Unilever's earnings or growth rates but looks a very tidy bridgehead into
one of the BRIC economies where thus far the group has little presence.
The portfolio is lower end, but Unilever now has the distribution platform
for its own personal care brands”. Espirito Santo also liked the deal,
saying that “This is exactly what you want Unilever to do with cash flow.
This is the third personal care deal like this Alberto Culver and Sara
Lee's brands. It underlines the strategy is sensible bolt-on, not major,
acquisitions. Also anything that continues to add further weight to the
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business in personal care and away from food is also a major positive.
Unilever is also a major beneficiary of recent raw material price falls”.
(www.guardian.com)
Unilever chief executive Paul Polman said, “This deal will transform
Unilever's personal care business in Russia, giving us leading positions in
skin care and hair care, as well as establishing a presence in oral care. It
will also strengthen and re-balance Unilever's portfolio and competitive
position in Russia, an emerging market with considerable potential and
one of our priority countries”. It will add what Unilever calls "authentic
Russian" brands such as Black Pearl, Pure Line and Silky Hands to its
existing product ranges including Dove, Sunsilk and Timotei.
(www.guardian.com)
Other Acquisition of Personal Care brands –
Alberto Culver Company
Unilever confirms Alberto Culver shareholder approval to acquire
company for £23 billion (17 December 2010). Unilever confirmed that
Alberto Culver Company shareholders have voted in favour of the
proposed £23 billion Unilever acquisition, which was announced on
September 27, 2010. The proposed acquisition includes brands such as
TRESemmé, Alberto VO5, Nexxus, St. Ives and Simple. These will
complement Unilever’s existing portfolio of iconic brands such as Dove,
Clear and Sunsilk in hair care and Pond’s and Vaseline in skin care.
Alberto Culver Company
Alberto Culver Company manufactures, distributes and markets leading
beauty care and other personal care brands including TRESemmé,
Alberto VO5, Nexxus, St. Ives, Simple and Noxzema in the United States
and internationally. It is also the second largest producer in the U.S. of
products for the ethnic hair care market with leading brands including
Motions and Soft & Beautiful. For more information visit:
www.alberto.com
http://www.unilever.com/mediacentre/pressreleases/2010/UnileverconfirmsAlb
ertoCulvershareholderapprovaltoacquirecompanyfor37billion.aspx
Unilever launches Facebook rewards programme
Unilever is launching a consumer engagement programme that uses
Facebook to encourage consumers to interact with 11 of its biggest
brands, including PG Tips, Persil and Magnum.
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The Unilever VIP application invites consumers to give the company
feedback on brand initiatives such as advertising campaigns and
promotions, branding and packaging. In return, members will also be
offered rewards and incentives such as access to new products, moneyoff coupons for their Unilever brands and invites to VIP events. Unilever
will use the feedback from consumers to inform its future decision
making. Consumers can join the Unilever VIP to give feedback on the
latest TV ad for Surf or new packaging for Carte D’Or ice cream.
Rachel Bristow, Unilever UK media director says: “Unilever VIP is being
piloted to help us get even closer to our consumers in the UK. To meet
our challenging growth ambitions for the company, it’s imperative that
we understand and engage with consumers in a new, interactive and
relevant way. The Facebook page includes surveys, prizes available and
a scoreboard of members that have collected the most points by
participating (Baker, 2011)
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Appendix 1: Recent media articles
Unilever and Sainsbury's predict sustainable lifestyles by
2020
Unilever and Sainsbury's have launched a joint report that predicts the
consumer goods industry will have sustainable products and services by 2020.
Consumer Futures 2020: Sainsbury's and Unilever team up
The Consumer Futures 2020 report, published today (10 October), has
been created in conjunction with Forum for the Future, a non-profit
global organisation that works with businesses and governments. It aims
to act as a "practical tool" to help retailers, brands and manufacturers in
the global consumer goods industry "plan for the future".
The creation of the report is the result of an 18-month long partnership
between Unilever and Sainsbury's, which builds on Forum for the
Future’s 2007 Retail Futures report. The report explores four scenarios,
labeled "My way", "Sell it to me", "From me to you", and "I'm in your
hands", to explain the possible ways for sustainable consumer
consumption to become mainstream by 2020.
Justin King, chief executive of Sainsbury's, said: "Sustainability will
continue to rise higher up the agenda over the coming years, so it is key
that brands work to ensure they can respond to consumer demand.
Being a sustainable company is not about box ticking, it's about futureproofing your business and building trust and brand loyalty that will last
for years to come."
Unilever and Sainsbury's are two of more that 170 brands to have
backed the Government's "responsibility deal", which intends to improve
public health through a series of measures such as reducing the amount
of salt in food and ramping up activity to promote responsible drinking.
Both King and Amanda Sourry, Unilever's chairman UK and Ireland, are
due to speak at a joint launch for the report this week. Sourry noted:
"The old model of ever greater consumption, with growth at any price, is
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broken. Companies that succeed in the future will be those that reduce
their environmental impact, whilst increasing their social and economic
impacts." (Eleftheriou-Smith, 2011)
Interest rate in male beauty brands rises
15 September 2011 | By MaryLou Costa
Brands that invest in grooming products exclusively for the
men’s market stand to increase spending levels in this underdeveloped but fast-growing sector, according to research seen
by Marketing Week.
Cult ITV2 programme The Only Way Is Essex has not only put fake tan
and big hair on the grooming agenda for women, but it has brought
men’s beauty routines into the spotlight as well. Its male stars are no
strangers to fake tan, a wax or even a manicure. Research exclusive to
Marketing Week shows that men having a ’beauty regime’ is becoming
the norm, as an increasing number use more products and treatments to
keep them looking good.
In the survey of 1,000 UK men aged between 18 and 64, conducted by
SPA Future Thinking, 53% say grooming is expected of them.
Meanwhile, 34% say having a beauty routine would improve their love
lives and 25% agree it would enhance their careers. SPA Future Thinking
research director Will Ullstein says this is good news for marketers in the
industry: “The survey shows there is a latent demand for products and
new ways for men to be marketed to.
“Men want to shop and do take pride in their appearance. Manufacturers
and retailers should meet that need. Some are doing a great job but
others need to raise their game.”
Adidas, Gillette and Hugo Boss are the most recognised men’s grooming
brands, with a respective awareness of 93%, 85% and 83%. But while
these are the most well-known brands, they are not the most used.
Adidas falls to third place in terms of brands used most often, coming
behind Lynx (26%) and Gillette (18%). Hugo Boss and Boots own-brand
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products make up the bottom of the top 10 most used brands, at just
2% each. “The likes of Adidas and Hugo Boss aren’t known for beauty
products specifically, while Lynx is out and out male and has fantastic
advertising campaigns,” reasons Ullstein.
The most popular products men use are shampoo, body spray, shower
gel and fragrances, with more than two-thirds of those surveyed using
these regularly. Meanwhile, half of those surveyed say they have used
hand cream, 42% moisturiser, a third have tried lip balm and 23% hair
spray. More than 40% use some kind of skin care product and of these,
27% claim they actually have a skincare regime.
Younger men spend more per month than their older counterparts, with
18to 34-year-olds parting with £14.60, compared with £10.50 for 55to
64-year-olds.
“This doesn’t surprise me because older men are perhaps more settled
in their relationships and in the tried and tested products they use in
their repertoire,” comments Ullstein.
That shopping behaviour includes the fact that 63% of men admit they
buy their grooming products at the supermarket, but 47% say they
would be interested in a dedicated “manshop” an outlet selling only male
grooming products. If, as the survey suggests, 86% of men buy their
grooming products at the same time as grocery shopping, it may
indicate that the manshop idea might be best executed within a
supermarket environment. And with just 44% of men acknowledging
that they have a skincare regime, it could be the development of
supermarket ranges that firmly places male beauty brands into the
mainstream.
http://www.marketingweek.co.uk/trends/interest-rate-in-male-beauty-brandsrises/3030118.article
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References:
Unilever’s website: www.unilever.com
Baker, R. (2011), Unilever cites improved marketing efficiency for profit bump,
http://www.marketingweek.co.uk/sectors/fmcg/unilever-cites-improvedmarketing-efficiency-for-profit-bump/3029021.article - accessed 21 October
2011
Baker, R. (2011), Unilever restructures to speed up innovation,
http://www.marketingweek.co.uk/sectors/food-and-drink/unilever-restructuresto-speed-up-innovation/3027825.article - accessed 21 October 2011
Baker, R. (2011), Unilever launches Facebook rewards programme
http://www.marketingweek.co.uk/sectors/fmcg/unilever-launches-facebookrewards-programme/3029528.article - accessed 21 October 2011
Eleftheriou-Smith, L.M. (2011), Unilever and Sainsbury's predict sustainable
lifestyles by 2020,
http://www.marketingmagazine.co.uk/news/1097791/Unilever-Sainsburyspredict-sustainable-lifestyles-2020/ - accessed 21 October 2011
http://www.marketingmagazine.co.uk/news/1099920/Radox-first-brandextension-Unilever-ownership/?DCMP=ILC-SEARCH – accessed 21 October
2011
http://www.unilever.com/brands/personalcarebrands/axe/?WT.LHNAV=Axe –
accessed 21 October 2011
Eleftheriou-Smith, L.M., (2011), Radox first brand extension
http://www.marketingmagazine.co.uk/news/1099920/Radox-first-brandextension-Unilever-ownership/?DCMP=ILC-SEARCH – accessed 21 October
2011
Staff (2011),
http://www.guardian.co.uk/business/marketforceslive/2011/oct/14/ftse-higherunilever-russia?INTCMP=SRCH – accessed 21 October 2011
Staff (2011),
http://www.guardian.co.uk/business/marketforceslive/2011/oct/14/unileverboosts-russian-presence?INTCMP=SRCH – accessed 21 October 2011
http://www.unilever.com/mediacentre/pressreleases/2010/UnileverconfirmsAlb
ertoCulvershareholderapprovaltoacquirecompanyfor37billion.aspx - accessed 21
October 2011
http://www.unilever.com/brands/personalcarebrands/Brylcreem/?WT.LHNAV=B
rylcreem – accessed 21 October 2011
http://www.unilever.com/mediacentre/pressreleases/2011/Unilevertoacquire82
ofleadingRussianbeautycompanyKalina.aspx - accessed on 21 October 2011
http://www.unilever.com/brands/personalcarebrands/?WT.GNAV=Personal_car
e_brands – accessed on 21 October 2011
http://www.marketingweek.co.uk/trends/interest-rate-in-male-beauty-brandsrises/3030118.article - accessed on 21 October 2011
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