QUESTION NO-1a

UNILEVER
BCG MATRIX

1. STARS:
-ICE CREAM
Unilever personal care segment is stars because its market share is growing every year and mentioned
division generate highest chunk of revenue for the company. In terms of geographical segment Asia
segment is producing highest revenue around 40% of company total revenue. Asia geographical
division also comes into the fold of stars.
Unilever has the first mover advantage in the capital-intensive ice-cream segment. With around 65%
market share, it is the only major operator in the industry. The company is in the process of increasing
production capacity and strengthening its distribution channel.

2. QUESTION MARK:
-FROZEN FOODs
Unilever food segment fall into the category of question mark. Food segment market share of Unilever is
declining every year, despite of high industry sales growth rate. Unilever must focus on this segment to
turn this division into star because the industry has the potential to grow in terms of sales. Company ought
to invest more on product development to beat its competitor and increase its market share in food
industry. 

According to matrix, UNILEVER’s frozen foods like Knorr and some products of household care
business units like Dove are question marks as they are operating in a growing market without high
market share, thus holding the sales growth of the company’s 400 leading brands by 0.6%. Therefore, it
can be noticed that not the whole divisions are underperforming, as a result UNILEVER needs to invest
more in these business units to keep up with the fast-growing market because they are already successful
but need better performance.

Brands such as Knorr and Lipton in food and Dove in the household product sector are among the core
brands that raise concern for UNILEVER. As part of its path to growth strategy UNILEVER must build
on these businesses to improve performance as the market share must grow if they are to become stars
otherwise they may face alternative solutions that could include the sale of the business, which should be
the last alternative because of the growing divisions inside the business. UNILEVER might be better off
investing more cash in frozen foods and household care; since the market is growing it may gain more
share and dominance

3. CASH COW:
-HPC (High Performance Computing)
Home care and refreshment segments of Unilever can be labelled as Cash cows because both have high
market share in low growth industry. Both industries have witnesses decline in sales. Such segments are
crucial for the company and plays a vital role in the sustenance of company. In terms of geographical
segment America segment comes into the category of cash cows around 33% of company revenue is
generated by America segment each year.

The HPC segment continues to drive the top-line and profitability growth and is the key focus of the
company’s growth strategy. Among the key brands in the HPC business Lux, Surf and Sunsilk continue
to be the star performers with market leadership positions.
4. DOG:
-BEVERAGES (Tea)
The mature tea segment continues to follow a declining trend as UNILEVER faces stiff competition in
the tea market. ULEVER continues to lose sales volume to Tapal in organized sector and to small local
brands in rural areas that are using cheap smuggled tea.

The companys strategy is to defend losing market share as nogrowth is expected in beverages segment

In the backdrop of losing market share, the contribution of teabusiness to total turnover has declined over 
the years (34% inCY09). Going forward, the tea segment is expected to remain under pressure. It is
forecasted a flat outlook for the segment with decline in turnover of 5-6% each year.