GROWTH STRATEGY OF UNILEVER IN EMERGING MARKETS

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I. INTRODUCTION 2

II. BASIC CONCEPTS OF GROWTH STRATEGY 3

III. GENERAL INFORMATION OF UNILEVER 4

IV. PROSPECTS OF EMERGING MARKETS FOR FAST MOVING CONSUMER GOODS INDUSTRY 6

V. ANALYSIS OF GROWTH STRATEGIES OF UNILEVER IN EMERGING MARKETS 9

VI. STRATEGY RECOMMENDATIONS AND CONCLUDING REMARKS 12

REFERENCES 13

GROWTH STRATEGY OF UNILEVER IN EMERGING MARKETS

I. INTRODUCTION

Unilever has been known as one of the world’s leading fast-moving consumer goods companies for many years. The company provides the consumers with various products from personal care, food, refreshment to home care. It owns some of the best-known and best loved brands, ranging from long established names like Sunlight, Dove, Lipton and Knorr to new innovations such as Pureit, a unique in-home water purifier. Unilever’s products are currently being sold in more than 190 countries and on any given day, there are about 2 billion consumers using them.

Like other big FMCG companies, in the past, the majority of Unilever’s turnover came from the developed countries such as US, United Kingdom, Japan and Eastern Europe. In contrast, emerging markets used to account for a small portion of the total revenues. However, this situation has been changing in recent years. Due to serious influences of the world economic crisis in 2008, many developed countries have shown a rapid decline in aggregate demand in general and in consumption spending in particular. As a result, Unilever’s revenues from the mature markets have decreased significantly. Meanwhile, the emerging markets, especially China, India, Turkey and Indonesia have displayed a positive growth in consumer spending over year. By 2013, the sales of Unilever form emerging markets grew by 8.7% and accounted for 57% of its business. Developed markets reported negative underlying sales growth for the year of 1.3%, with Europe down 1.1% and North America 1.5%. Based on predictions of the world’s growth in GDP and consumer spending along with the trend analysis in the consumer goods industry made by the world’s leading research and analysis organizations, emerging markets are expected to be become strategic markets for FMCG companies. Because of having many-year experience in emerging markets, Unilever has early implemented the growth strategies to capture market share. In the scope of my report, I will focus on analyzing how Unilever’s growth strategies operate to help it gain strong footprint in these markets and propose some recommendations for its further growth in the future.

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