Unilever Indonesia

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Business Model of Unilever Indonesia
The story how the FMCG champion maintain its pole position while at the same time strugling with business issue in competitive industry Akhmad Rakhmattullah Sofyandi Sedar (29111144) Lecturer: Harimukti Wandebori Class 45C Master of Business Administration ITB April 18th 2012

TABLE OF CONTENTS I. PREFACE 1.1 Background 1.2 Company Profile 1.3 Internal & External Analysis 1.4 Porter’s Five Forces 1.5 Business Strategy II. BUSINESS MODEL ANALYSIS 2.1 Business Model Elements 2.1.1 Customer Value Propositions 2.1.2 Marketing STP 2.1.2 Profit Formula 2.1.3 Key Resources 2.1.4 Key Processes 2.2 Value Chain Analysis 2.3 Generating Alternative Strategies Using TOWS Matrix 2.4 Recommended Strategies III. CONCLUSION AND ADVICE 3.1 Conclusion 3.2 Advice 3.3 Lessons Learned BIBLIOGRAPHY EXHIBIT 14 14 15 7 8 8 8 8 9 10 11 12 1 2 3 5 6

Business Model of Unilever Indonesia

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A R Sofyandi S 29111144 MBA-ITB Batch 45C April 18th 2012

Business Model of Unilever Indonesia
The story how the FMCG champion maintain its pole position while at the same time strugling with business issue in competitive industry I. PREFACE 1.1 Background
The Fast Moving Consumer Goods (FMCG) environment is rapidly changing. The increasing popularity of line extensions seems to depend on advantages inherent in brand Unilever Logo leveraging. FMCG manufacturers go into R&D in order to come up with the product that best satisfy consumers because customers become more critical about attaching themselves to a particular brand. They will also like to buy less expensive product due to current economic tide. Meanwhile, environmental and sustainability issue become more concern for consumer and stakeholder. This is the most challenging time for company in FMCG industry like Unilever Indonesia. Unilever is a british-dutch multinational consumer goods company. It is the most leading brand in Indonesia for FMCG sector with 40 brands, while globally it hold more than 400 brands. In Indonesia, Unilever brands such as Sariwangi Tea, Kecap Bango, Buavita Juice, and Clear Shampoo always become the market share leader of its segment. Thus, the company brands always have top of mind review from their consumer. In Indonesia, Unilever exists from 78 years ago since 5 December 1933. In the end of 2010, Unilever already have high net sales about Rp. 19.7 trillion and net income Rp. 3.4 trillion (see Exhibit 3 for Unilever’s financial performance). The company is one of the largest non-state owned enterprises companies in Indonesia. Unilever has 4796 employees scattered around this country. The company also has 385 distributors and 8 owned factories. Managing and running a successful business can be a amusing and challenging, there are many lessons that can be learnt by studying successful business models such as Unilever’s business strategy.

Business Model of Unilever Indonesia

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40 Brands Rp. 3,387 Billion Net income

8 Factories

Unilever Indonesia
385 Disributors

78 years in Indonesia

4,796 employees

Company prospectus and Unilever’s brands

1.2

Company Profile

PT Unilever Indonesia Tbk is one of Indonesia’s leading FMCG companies. The Company’s portfolio of Home & Personal Care, as well as Foods & Ice Cream products is distinguished by many of the world’s best known and most trusted brands, including Wall’s, Lifebuoy, Vaseline, Pepsodent, Lux, Pond’s, Sunlight, Rinso, Blue Band, Royco, Dove, Rexona, Clear, and others. The company ownership is foreign direct investment with 85 percent shares owned by Unilever Indonesia Holding B.V. Vision “To be the first choice for consumers, customers, and communities” Mision • • • • Value • • • Customer, consumer, and community focus Teamwork Integrity • • • Making things happen Sharing of joy Excellence “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...
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