As per case study, Unilever is one of the world’s largest consumer product companies and the world market leader in the ice cream sector. Its ice cream has been sold in over 40 countries. Unilever operates in Europe, North America, Africa, and Middle East, Asia Pacific, and Latin America. It includes brands such as Dove, Magnum, Lipton, etc. Unilever has been a decentralized organization, and their operations between its companies were having a common set of management principles, a share desire to succeed on local markets, and a shared corporate culture. However because they head offices found difficulties to develop and implement new ideas, Unilever started shifting towards centralization; it has re-engineered its operations into foods and home & Personal care. According to Nial FitzGerald, Unilever’s co-chairman, Unilever see their future in a portfolio of strong brands with international and local scale. They are determined to deliver a step change in Unilever’s to improve its operating performance
Question 1: Consolidated option of ice cream brands
There are different options for the consolidations of ice cream brands, such as single platform, in-home and out-of-home sector, and stand alone brands.
Standalone is a sector that contains a single brand, which help’s company’s customers to know a specific location that they can go to buy a specific product.
The advantages that Standalone sector can have are the following: Using the Standalone Sector it gives to the company a competitive advantage, since the firm can specialized on only one sector. A company can easily select its segment, to compete in the market. Since it is only one brand, company can expand to more that one segment and gain more customers. Where on the opposite case, that a company has several brand, it cannot enlarge to more than one segment since it will cost a lot of money and it will confuse its customers. Using Standalone can also help a firm to save money, since it will only need to have one kind of advertisement and promote the product in different events such as sports.
The disadvantages that Standalone sector can have are the following: It might be difficult to be accepted as a new brand on a global industry, because different countries have different cultures. In some countries they might not trust easily new brands, and as result the invest will failed Even though, by using Standalone, a company can expand in a lot of segments, it might not be able to satisfy all customer needs. An example of this could be that a customer would like to have an Ice-cream from another Brand, and our brand will have only ice-cream from Company’s brand.
In-home in ice cream sector, represents the one third of the market; and it includes premium ice cream, multipacks, and standard bulk ice cream that can be purchased and stored for later use at home. This kind of ice-cream can be found in super-markets, and grocery stores.
One the other hand, out-of-home in the ice cream sector, represents the two thirds of the market. Out-of-home sector has to deal with ice-cream that is bought for immediate use. Ice cream in this sector can be found in kiosks and stores to beach vendors and tourist sides. This sector is more seasonal than in-home sector.
These two sectors are more or less similar in world market, but their importance is different from country to country. According to country’s cultures, climates, and economies the importance varies.
The advantages that in-home sector can have are the following: It can be found on places such as Super-Markets where client use a lot to buy their physical needs.
Disadvantages of the in-home sector could be the following:
There is not a lot of choices in taste, since most of the packages contain either two or three tastes per package Difficult to promote it, since it is difficult to find attractive package. The advantages of out-of-home sector are the following:...