Professional Documents
Culture Documents
Company Analysis PT Unilever
Company Analysis PT Unilever
1
CHAPTER ONE
INTRODUCTION
1.1 Background
Globalization is a worldwide trend of the world economy becoming
borderless and interconnected companies are no longer limited by the boundaries
of their countries and can conduct business anywhere in the world. Globalization
means that companies are more likely to compete everywhere. Many companies
today sell their products anywhere, source their raw materials or conduct research
and development (R&D), and manufacture anywhere.
Globalization is probably the main reason why we should study
international business. As has been rampant lately, many companies are starting to
explore their business in the international world, as has been done by PT.
Unilever. PT. Unilever Indonesia Tbk. is a multinational company that markets
consumer goods in various countries to meet the daily needs of nutrition, health
and personal care with products that make users feel good, look good and enjoy
life more.
In the face of competition between companies, PT. Unilever Indonesia Tbk
has prepared strategies and tactics in the face of competition between companies.
Given the many competitors who take part in the international world, it is very
necessary to have a very precise strategy from a company that is able to raise its
name in the minds of consumers in various countries. In this case, we will analyze
several important points from PT. Unilever about the strategies used in winning
the competition.
2
1.3 Purpose of Writing
1. To know the history and expansion and development of PT. Unilever.
2. To understand and study the vision, mission and goals of PT. Unilever.
3. To find out the products and brands that are the mainstay of the output of PT.
Unilever.
4. To analyze the type of company from PT. Unilever in the competition between
international companies.
5. To find out the implementation of the competitive strategy used by PT.
Unilever.
3
CHAPTER II
DISCUSSION
4
The company registered 15% of its shares on the Jakarta Stock Exchange
and Surabaya Stock Exchange after obtaining approval from the Chairman of the
Capital Market Implementing Agency (Bapepam) No. SI-009/PM/E/1981 on
November 16, 1981.
At the company's Annual General Meeting on June 24, 2003, the
shareholders agreed to a share split, reducing the par value of the shares from Rp
100 per share to Rp 10 per share. This change was made before a notary with deed
No. 46 made by notary Singgih Susilo, S.H. dated July 10, 2003 and approved by
the Minister of Justice and Human Rights of the Republic of Indonesia with the
decision no. C-17533 HT.01.04-TH.2003.
The Company is engaged in the production of soap, detergent, margarine,
vegetable oil and foods made from milk, ice cream, food and beverages from tea
and cosmetic products. As approved at the Company's Annual General Meeting on
June 13, 2000, as stated in notarial deed No. 82 made by notary Singgih Susilo,
S.H. dated June 14, 2000, the company also acts as a major distributor and
provides marketing research services. This deed was approved by the Minister of
Law and Legislation (formerly the Minister of Justice) of the Republic of
Indonesia with Decree No. C-18482HT.01.04-TH.2000.
2.1.2 Expansion of PT. Unilever Indonesia
5
At the company's Extraordinary General Meeting on December 8, 2003,
the company received approval from its minority shareholders to acquire shares of
PT Knorr Indonesia (PT KI) from Unilever Overseas Holdings Limited (a related
party). This acquisition took effect on the date of signing of the share purchase
agreement between the company and Unilever Overseas Holdings Limited on
January 21, 2004. On July 30, 2004, the company was merged with PT KI. The
merger is carried out using the same method as the pooling of interest method.
The company is a company that accepts the merger and after the merger PT KI is
no longer a separate legal entity. This merger is in accordance with the approval of
the Investment Coordinating Board (BKPM) in its letter No. 740/III/PMA/2004
dated 9 July 2004.
Development Chronology
1936 Production of margarine and oil by van den Bergh Factory NV - Angke,
Jakarta
1967 Control of business returns to Unilever under the Foreign Investment Law
6
1988 Moving Bath Soap Factory from Colibri to Rungkut, Surabaya
The vision that is owned by a company is an ideal about future conditions that
are desired to be realized by all company personnel, starting from the highest level
to the lowest level, even the servants. Mission is a written description of the vision
so that the vision becomes easy to understand or clear for all company staff.
Vision
Unilever's vision is "To become the first choice of consumer, customer and
community"
a) Mission
Unilever's mission is:
• To be first and best in class in meeting consumer needs and aspirations
• To be the main partner for customers, consumers and communities.
7
• Eliminate non-value added activities from all processes.
• To be the company of choice for high performing people.
• Aims to increase profitable growth targets and provide above-average rewards
for employees and shareholders.
• Received honor because of high integrity, care for the community and the
environment.
We have always believed in the power of our brand in improving the quality of
people's lives and in doing the right thing. As our business grows, so does our
responsibility. We recognize global challenges such as climate change that
concern us all. Considering the wider impact of our actions is always embedded in
our values and is a fundamental part of who we are.
8
regulations also support our approach to government and corporate responsibility.
Work with others
We want to work with resource providers who share our values and standards of
work. The rules on business partners, in line with our rules of business principles,
consist of ten principles covering business integrity and responsibilities related to
employees, consumers and the environment.
9
become a "trend setter" in the industry. Many companies are successful because
they have a brand reputation, so they can open distribution in other cities and even
other countries by attracting targeted customers through the strengths of their
brand. A brand that has achieved high equity is a valuable asset for the company.
For this reason, maintaining and increasing brand equity is not an easy job,
because what is being faced is customer expectations. Consumers will feel
“familiar” with the brand name that first entered the market, even though the
brands that entered later performed better. This will lead to greater loyalty to the
first brand and manufacturer.
Customer loyalty is the key to success not only in the short term but a
sustainable competitive advantage. For example, the Lux brand beauty soap,
which is the first beauty soap to enter the market in Indonesia. Lux brand beauty
soap expands its range of bath soap products, which are not only bath soaps in the
form of solid bars but also liquid bath soaps.
10
the hearts of the Indonesian people, Unilever makes products that match
Indonesian tastes, such as Bango soy sauce. Soy sauce is a food made from
soybeans. You could say soy sauce is a typical food from Indonesia.
For this reason, Unilever makes bango soy sauce products for consumption
by the Indonesian people. Although bango soy sauce is not an original product
made by Unilever, the name Unilever is more famous because bango soy sauce is
now a product developed by Unilever. Moreover, the advertisements displayed in
the media about bango soy sauce products reflect the country of Indonesia. With
models originating from Indonesia, this will further build Unilever's image in the
eyes of consumers in Indonesia. Consumers will have a desire to buy bango soy
sauce products because they are impressed to see the advertisements that are
displayed. Although consumers only try to buy the brand, at least the product is
very well known by the public.
There are several surefire ways that this company does in order to stay
competitive in the midst of a tight market especially from their competitors,
11
Unilever's main competitors are Prector & Gamble and Kraft Foods which had
sales in approximately 140-150 different countries in 2003 and Nestle, including
Unilever's main rival, has market penetration in almost every country in the world
(proof that Unilever is a global company). Other competitors: PT Wings, PT Kao,
PT Mandom, PT Johnson & Johnson. In addition, Unilever must have the ability
to anticipate trends and consumer needs and then fulfill their needs in various
ways that are acceptable to the public, including marketing strategies;
a) Product Differentiation
By keeping prices low and shelves well stocked using its legendary stock
replenishment system, Wal-Mart is becoming the retail business leader in the
12
United States. Wal-Mart's milli system sends orders for new merchandise directly
to suppliers when customers pay for their purchases at the cashier. Point-of-sale
terminals record the item code of each item that passes through the checkout and
send the purchase transaction directly to Wal-Mart's central computer. Computers
collect orders from all wai-mart stores and send them to suppliers. Suppliers can
also access wal-mart sales and inventory data using web technology. This system
is able to enable wal-mart to keep costs low while adjusting its inventory to meet
customer demands.
c) Product Segmentation
Unilever creates its own brand for each product, thus dividing the market
for its soap products into 3 brands, namely Lux (for women's beauty with all the
benefits of Lux soap), Lifebuoy (Family-health) and Dove (true beauty because
beauty knows no age). , race and other limitations as well as highlighting the
peculiarities of its formula which until now has not been imitated by any soap
producer), or how Sosro divides its consumers based on the types of bottled tea
products Sosro (general), Estea (likes more volume/content) and Fruit tea ( young
people/especially schoolchildren who like fruit-flavored teas & tend to like sweet
tastes). Unilever not only responds to the needs of its market but also ensures that
its competitors think twice before entering the competitive arena.
Sales and sales promotion approaches will be effective and efficient if they are
designed by applying a regionalization pattern or applied in certain regions or
regions. Unilever has implemented a regionalization pattern because Unilever
already has factories or branch companies in each country. This is done so that
each country can buy products that are in accordance with the wishes and habits
of consuming products that are very closely related to the taste of their country.
Unilever products use a customer information system that is different from the
others, products enter the market by promoting their goods by going directly to
the community with real quality evidence, for example by holding competitions
for the public to compare Unilever products with products. -Other competitors'
products.
13
b) Strengthening Familiarity with Customers and Suppliers
• Personal Selling → direct interaction with one or more potential buyers to make
presentations, answer questions, and receive messages
• Direct Marketing → the use of mail, telephone, facsimile, e-mail, and other non-
personal contact tools to communicate directly with or obtain an immediate
response from specific customers and prospects.
However, with the increasing times, increasingly fierce market competition, the
development of various types of new media and increasingly sophisticated
consumers, the Promotion Strategy is formulated as:
• Advertising
14
• Packaging. Point Of Purchase
• Personal Selling
• Public relations
• Brand Publicity
• Corporate Advertising
• The Internet
• Direct Marketing
• Customer Service
• Word Of Mouth
Human resource management activities revolve around the procurement, use and
maintenance of human resources. In order for the three main activities to run
smoothly, it is necessary to prepare a reliable system. The procurement stage
includes HR planning, recruitment, selection and orientation. The use stage needs
to pay attention to the compatibility between the capabilities of human resources
and what are their duties and responsibilities. It is also necessary to pay attention
to matters regarding the opportunity to receive training and education,
supervision, performance appraisal, compensation and guarantees for protection
and occupational health. Finally, at the human resource maintenance stage, the
goal is how to make employees feel satisfied at work.
15
employs 3,000 workers directly, this does not include indirect workers. The total
workforce absorbed is 25,000 people. If it is assumed that one person has four
family members, the company will bear the fate of around 100,000 people.
16
and reduce risk.
b) Information Technology Strategy
Many strategies are used by companies, especially in the field of information
technology to improve company efficiency. PT. Unilever operates Integrated
Marketing Communication (IMC). This strategy is the company's effort to
integrate and coordinate all communication channels to deliver its message in a
clear, consistent and powerful way about its product organizations.
IMC (according to the book Advertising Management; chapter 3) is a concept of
marketing communications planning that introduces the added value of a
comprehensive plan that evaluates the strategic roles of various communication
disciplines—e.g. general advertising, direct response, sales promotion, and PR—
and combines these disciplines. this discipline to provide clarity, consistency and
maximum communication impact.
In simple terms, IMC can be defined as "The process of managing customer
relationships that drives brand value." Specifically, IMC can be defined as “a
process that has the cross-functional function of creating and maintaining
profitable relationships with customers and other stakeholders by strategically
controlling and influencing all messages sent to these groups and driving a
purposeful dialogue to them.”
Integrated Marketing Communication (IMC) is one of the processes available to
build customer relationships. What distinguishes IMC from other customer-centric
processes is that the basis of the process is communication, which is at the heart of
all relationships, and is also a circular process.
As mentioned above, the basic concept of IMC is communication. With this
communication, IMC strives to maximize positive messages and minimize
negative messages from a brand, with the aim of creating and sustaining brand
relationships. To build long-term relationships, IMC is also used to build and
strengthen the brand. A positive brand relationship will also generate profits and
increase shareholder value for the company.
17
CHAPTER III
CLOSING
3.1 Conclusion
a) PT Unilever is a multinational company that produces consumer goods
headquartered in Rotterdam, the Netherlands. The company was founded in 1930.
PT Unilever Indonesia Tbk (the company) was founded on December 5, 1933 as
Zeepfabrieken N.V. Lever with deed No. 33 created by Mr. A.H. van Ophuijsen,
notary in Batavia. The company employs 206,000 workers. Manufactures food,
beverage, cleaners and personal consumers.
b) Unilever's vision is “To become the first choice of consumer, customer and
community”
Unilever's mission is:
• To be first and best in class in meeting consumer needs and aspirations
• To be the main partner for customers, consumers and communities.
• Eliminate non-value added activities from all processes.
• To be the company of choice for high performing people.
• Aims to increase profitable growth targets and provide above-average rewards
for employees and shareholders.
• Received honor because of high integrity, care for the community and the
environment.
c) PT. Unilever is a company that produces food, beverages, cleaners and personal
consumers. Such as some Unilever products: Surf, Rinso, Buavita, Sunsilk, Taro,
Pepsodent, Molto, Lifebuoy, Clear, Close Up, Citra, Ax, Royco, Kecap Bango,
etc.
For Unilever, a brand is no longer just a name, but has become a determining
factor in competing. If the company is able to attract target customers through the
strengths of their brand, then the company will easily take a great position in
international business. A brand that has achieved high equity is a valuable asset
for the company.
d) PT Unilever is a multinational company that produces consumer goods
18
headquartered in Rotterdam, the Netherlands. PT. Unilever is a company that
produces products tailored to local tastes.
e) The strategy used by PT Unilever is a general approach (method) carried out by
an organization or company to achieve and obtain goals. While tactics are specific
ways to implement the chosen strategy.
The competitive strategy used by PT. Unilever are as follows:
• Product differentiation
• Low Price Leadership
• Market segmentation
• Focus on market opportunities
• Strengthening relationships with customers and suppliers
• Sales or promotion strategy
• Human resource strategy
• Operations strategy
• Information Technology Strategy
19
pilots from competing companies.
Always pay attention to the safety and feasibility of products that will be
given/distributed to consumers, either through various forms of setting world
industrial and commercial standards or often called ISO (International
Organization for Standardization).
BIBLIOGRAPHY
https://www.academia.edu/9186790/
Competing_In_Global_Marketplace_Bersaing_Di_Pasar_Global_
http://antoghdoank.mhs.narotama.ac.id/2014/06/14/manajemen-strategi-
corporate/unilever
http://swa.co.id/business-strategy/management/empat-strategi-business-
excellence-unilever
https://siskarachman.wordpress.com/category/persaingan-bisnis-internasional-
dan-nasional
http://id.wikipedia.org/wiki/Unileverl
20