UNILEVER PHILIPPINES INC.

LOCATION OF THE COMPANY

1351 United Nations Ave., Manila
Cs-588-8800 / 09178339579
Cas.philippines@unilever.com

VISION

Every day, our products touch the lives of over 160 million people – whether that's
through feeling great because they've got shiny hair and a brilliant smile, keeping their homes
fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for the company – where we
want to go and how we are going to get there:
 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 and good for others.
 We will inspire people to take small everyday actions that can add up to a big difference
for the world.
 We will develop new ways of doing business that will allow us to double the size of our
company while reducing our environmental impact.

Small actions, big difference

We’ve always believed in the power of our brands to improve the quality of people’s
lives and in doing the right thing. But today, with the scale of the challenges the world faces, it’s
easy to believe that our individual actions are too small to make a difference.

Because of the sheer range of our portfolio, our global reach and scale, we can give
people the confidence that their small actions, together with those of millions of others who
buy our brands every day, can make a big difference.

For example, together we are already saving over 3 million lives by encouraging hand
hygiene, improving the oral health of tens of millions of people by creating a toothbrush that
costs only 10 Rupees, and supporting millions of farmers and their families by purchasing tea
from sustainably approved sources.
 Our small actions really do add up to creating a better future every day.

A better future for the planet

As our business grows, so do our responsibilities. We recognize that global challenges

such as climate change concern us all. Considering the wider impact of our actions is embedded
in our values and is a fundamental part of who we are.

This is reflected in our vision of growing our business without compromising our
commitment to reduce our environmental impact. And this goes right across all that we do,
from sustainable sourcing of our materials at one end to sustainable living for consumers at the
other.
We know our consumers expect it. The future of our planet demands it.

Purpose & principles

Our corporate purpose states that to succeed requires "the highest standards of
corporate behavior towards everyone we work with, the communities we touch, and the
environment on which we have an impact."

Passion for excellence

We commit to exceptional standards of performance and productivity. We share a

passion for excellence.

Teamwork

Teamwork is the heart of our relationship. WE are all talented individuals who achieve
more by working together.

Respect for each other

Respect for each other is a deeply held value. We encourage openness while upholding
the dignity, worth and self-esteem of every individual.

Continuous learning

Continuous learning is a battle cry. We seek and provide opportunities to learn, develop
and grow to become the best that we can be.
Working with others

We want to work with suppliers who have values similar to our own and work to the
same standards we do. Our Business partner code, aligned to our own Code of business
principles, comprises ten principles covering business integrity and responsibilities relating to
employees, consumers and the environment.

Integrity

Integrity is the cornerstone of our business. We conduct our internal and external affairs
within a strict code of business principles and fairness.

Balanced life

We live a balanced life. Our work allows us to have the time, energy and resources to
pursue a joyful and fulfilling life our family, friends and co-workers.
Social responsibility
We have a social responsibility to the Filipino society. We ensure the safety of our
workers and partners. We care for the environment and develop the communities we live in.

Values

As a multi-local multinational we aim to play our part in addressing global

environmental and social concerns through local actions and in partnership with local
governments and organizations.

Science & technology

Innovation enables us to meet people's needs and aspirations in ways that engage and
appeal.

People

The Unilever community is shaped and led by its people, who operate creatively within a
framework of shared values and business goals.

Continuous development

Consumer research plays a vital role in our brands' development. We're constantly
developing new products and developing tried and tested brands to meet changing tastes,
lifestyles and expectations. And our strong roots in local markets also mean we can respond to
consumers at a local level. 
 By helping improve people's diets and daily lives, we can help them keep healthier for
longer, look good and give their children the best start in life. 

We also believe that the very business of conducting business in a responsible way has a
positive social impact. We create and share wealth, invest in local economies and develop
people's skills – both inside our organization and in the communities around us. 

Today Unilever employs 163 000 people, sells products in 170 countries worldwide, and
supports the jobs of many thousands of distributors, contractors and suppliers. 

STRATEGY

Internal Environment

Strength
 Recognized as a global company
 Strong brand portfolio
 Strong relationship with retailers
 Economies of scale

Weaknesses
 Dual Leadership
 Not connecting with customers
 Inefficient management of brands
 Reduces spending for R & D
 Inability to maximize acquisition

Innovation in Unilever

Innovation is the engine of Unilever’s growth; the lifeblood of our

business. Our future depends on our ability to bring bigger & better
innovations to market more quickly than our competitors.

Our leadership
Chief Research & Development Officer, Professor Geneviève Berger and
President Global Foods, Home and Personal Care, Michael Polk, outline
how our R&D teams create unique products with proven benefits for
consumers around the world.
 Research & development in Unilever
Research & development plays a key role in delivering proprietary
breakthrough innovations. At Unilever, R&D is treated as an investment
aligned closely with our overall business strategy.

The science behind success

The common thread running through all our R&D activities is a direct
connection between science, technology and consumer needs.

Areas of innovation
Unilever is recognised as a world leader in R&D, both in terms of
innovation (new products and mixes) and renovation (refreshing existing
products).

How we work
We employ more than 6000 R&D professionals in six global research
centres, 13 global product development centres and regional development
& country implementation centres.

Responsible innovation
We believe our products make a real contribution to an individual’s
wellbeing and that of their community, while having the least possible
adverse effect on the environment at every stage in the product lifecycle.

Areas of Innovation

Unilever is recognised as a world leader in R&D, both in terms of innovation (new products and
mixes) and renovation (refreshing existing products).
A strong R&D reputation

We typically file between 250 and 350 new patent applications a year and our portfolio
contains more than 20 000 patents and patent applications. By focusing our efforts in global
and regional centers, with small implementation teams in the countries and factories, we make
the best use of resources and bring bigger innovations to market more swiftly than ever before.
Food & nutrition
By providing foods that taste great and are good for you, our aim is to become the
world’s leading food and nutrition business. To achieve that, we are continuously improving the
nutritional profile of our product range and giving consumers a wider choice of tastier,
healthier, more natural options as well as functional foods with additional health benefits.

For example…
 Promise Active Super Shots provide natural plant sterols that are clinically proven to
help actively remove cholesterol as part of a low fat diet
 Hellmann’s Extra Light uses citrus fiber to create a very low fat mayonnaise that still
tastes great
 Knorr Stockpot revolutionizes bouillon with a new jelly format that provides a more
authentic, a closer-to-fresh bouillon that smells delicious, melts naturally into the food,
develops a great aroma and tastes genuine and delicious
 Breakthrough technology that uses Ice Structuring Proteins (ISP) in ice cream enables us
to deliver healthier options and better quality
 Catechin-rich tea helps people improve their body shape

Hygiene, health & beauty
The desire to be clean and healthy, and to look good is universal. Our home and
personal care brands have promoted hygiene, health and beauty since the late 19th century
and continue to play a vital role in millions of homes around the world today.

For example
 The Vaseline Skin Fund gives one million people better access to information about
managing skin complaints
 Our Oral Care teams run promotional and education programmes in partnership with
the FDI World Dental Federation
 Sunlight hand dishwashing liquid uses an ultra-concentrated formula that requires less
water in production and less packaging
 All Rexona, Axe and Dove brands incorporate a lightweight packaging design

Community Building
Where we love is home, home that our feet may leave, but not our hearts. —OLIVER
WENDELL HOLMES, SR.

Selecta Village
 
In 2005, Unilever RFM Ice Cream began work on the Selecta (Gawad Kalinga) Village for
residents of San Andres community in Cainta. Employees of the ice cream business gamely
volunteered and participated in the various builds organised throughout the year.
 The entire management team of Unilever also had the opportunity tobuild in the Selecta
Village. The whole day activity included house painting, ornamental enhancement and sharing
of GK experiences with the residents of the village. The outreach encouraged Unilever
managers and volunteers not only to be immersed on what is happening beyond their offices
but, more importantly, to enable for them to do something for their neighbours to help them
get more out of life.

External Environment

Opportunities
 Changing consumer preferences
 Increasing need for healthy products

Threats
 Decrease in revenues
 Strong competition
 Increasing store brands
 Tougher business climate
 Exchange rates

STRATEGIC DECISIONS AND OBJEVTIVES

PRODUCTS

Food brands
Unilever is one of the world's leading food companies. Our passion for understanding
what people want and need from their food - and what they love about it - makes our brands a
popular choice.

Best Foods
Savour the richness of ordinary family moments with Best Foods.

Knorr
A woman’s secret weapon.

Lady's Choice
Choose Real Food. Choose Lady’s Choice.

Lipton
Making a big splash in the global beverages market.
 Selecta
The Philippines’ number one ice cream brand.

Home care brands

In many parts of the world we lead the home care market, with brands such as Omo,
Surf, Comfort and Cif. It's more than just hygiene – with homes and clothes that are clean and
cared for, we help you get more out of life.

Comfort
The best care for your clothes, yourself and your family.

Domex
The sheer power of Domex bleach gives you the confidence you need

Surf
Surf is on a mission to make everything it touches brighter.
Personal care brands Our personal care brands, including Axe, Dove,
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
Helping males keep a step ahead in the mating game.

Clear
Nourishes the scalp from within to prevent dandruff from coming back.

Close Up
The Closer, The Better
 Cream Silk
As the Philippines' most trusted conditioner brand, Cream Silk inspires.

Dove
Celebrating beauty's diversity.

Pond's
Helping to keep your skin looking and feeling naturally beautiful.

Rexona
Rexona gives you the confidence because you know your deodorant won't let
you down.

Sunsilk
Sunsilk provides real solutions to women's everyday.

Vaseline lotion
Vaseline wants everybody to be able to enjoy great, healthy skin everyday.  

Vaseline Healthy Glow Shampoo

TACTICS

Health & personal care

 First launched in France in 1983, our leading male grooming brand, Axe, now gives guys
the edge in the mating game in over 60 countries
 Our oral care brands Mentadent, Peposodent and Signal have teamed up with the
world's largest dental federation, the FDI, which represents over 750 000 dentists
around the world
 Lux became the first mass-marketed soap when it launched in 1924. Today it achieves
annual global sales of over €1 billion
  Domestos is a best-selling brand in nine of the 35 countries in which it's sold 
 Recent breakthroughs at Rexona include Rexona Crystal, a deodorant that eliminates
unsightly white deposits on dark garments
 Our Small & Mighty concentrated liquid fits into a smaller bottle, requiring half the
packaging, water and lorries to transport it, making it kinder on the environment
 Hindustan Unilever in India has launched a hand-wash product, Surf Excel Quick Wash,
with a low foaming formulation, reducing the amount of water needed for rinsing by up
to two buckets per wash.

Foods
 Knorr is our biggest food brand with a strong presence in over 80 countries and a
product range including soups, sauces, bouillons, noodles and complete meals 
 Lipton's tea-based drinks include the international Lipton Iced Tea range, the Lipton
range in North America and Lipton Yellow Label, the world's favourite tea brand
 Becel/Flora pro.activ products have been recognised as the most significant
advancement in the dietary management of cholesterol in 40 years
 In the mid-1990s we led the industry with our programme to eliminate almost all trans
fat from our margarine 
 We're the world's largest ice cream manufacturer, thanks to the success of our
Heartbrand which includes Magnum, Cornetto, Carte d'Or and Solero, and Ben & Jerry's
and Breyers in the US.

In many respects, we think of Unilever as a community, rather than an organization. This

community is shaped and led by its people, who operate creatively within a framework of
shared values and business goals.

Unilever Vitality Village

A hundred houses for a hundred families. That is what Unilever
Philippines commits to the residents of Baseco when it sealed its time
capsule during the ground breaking rites of its Vitality Village at the Baseco
Compound in Port Area, Manila. Together with the City of Manila and
Gawad Kalinga, Unilever shares the project’s mission by building the
nation through creating peaceful and productive communities.
 
The site will be the first of its kind as it will have a community complex
composed of a daycare center, youth and sports area and a plaza which
will help develop the community further. Funding for the village will come
from contributions by Unilever employees, former employees and their
spouses and will be matched by the company. The build will start with
twenty-two (22) commercial and residential units and thirty-eight (38)
standard row housing units totaling sixty (60). Completion of the project is
expected in two years.

Strategy Justification
Unilever maintained two business entities, dual chairperson approach
Unilever Group owns Unilever Plc and Unilever NV
List stock separately and share board of directors
Management typically wear two/three hats
Board and business responsibilities conflicted
Company remained two local and fragmented
Recognize the need to streamline leadership and management structure
Reduced effectiveness and slowed the decision making process

Deliverables
Provides a greater clarity of leadership, responsibility, and accountability
Allows Unilever to focus on the needs of their customers and consumers thus reigniting growth
and increasing sales potential
Provides the ability to leverage scale of operations
Create a strategic platform for brand management
Delivers innovative products that capitalizes on changing consumer preferences
Allows Unilever to focus on the needs of their customers and consumers thus reigniting
growth and increasing sales potential
Provides a strong competitive platform against major competitors and private label brands

Environmental sustainability
All of these CSR programs are made more meaningful with the participation of Unilever
employees. Through our in-house volunteer group InLUV (Integrated League of Unilever
Volunteers), employees are able to givetheir time, effort, and resources to make our vitality
mission truly come alive.

Managing our environmental impacts

Our Business Partner Code ensures that our suppliers meet our expectations on
environmental and social impacts.
We encourage consumers to be environmentally-aware when using our products, while also
reformulating our products to reduce their environmental impact during use.

Clean Water Sustainability

Unilever Philippines commitment to a cleaner, greener river starts within our plant.

Solid Waste Management

Our factory in Paco, Manila adheres to environmentally compliant and ISO certified
processes to ensure that no harmful wastes come out of Unilever’s plants.

Vaseline is the only shampoo brand in the Philippine hair care market that offers Amino
Collagen Plus.
1. Reorganize and streamline Unilever’s organizational structure.
2. Implement “Unilever Believer” product and brand extensions.