BUS7B28 Creative Change and Innovation Assignment Sample
Overview of the FMCG Company (Unilever)
Unilever is considered to be a company of consumer goods and the headquarters are situated in the United Kingdom. With the help of the subsidiaries, the company is considered to be manufacturing and selling products of personal care and beauty, refreshments and food, along with a range of products for home care. Unilever is also considered to be owning around 400 brands in around 200 nations. Some of the brands are also considered to be inclusive of popular names such as Lipton, Dove, Hellmann’s Vaseline, Seventh Generation, Ben & Jerry’s, etc. For competing in the highly competitive market of consumer goods on a global basis, Unilever has been structuring its business model around being popular, along with high-quality brands trusted by the consumers (Sinulingga 2019).
Analysis on Consumer Demand
Unilever Plc seemed to have joined other companies of consumer goods in achieving benefits from boom in sales of everything from the ice cream to the cleaning products as shoppers seem to be emerging warily from lockdowns. Unlike more reasonable alternatives, brands from mid to high-end are in considered to be in requirement of endorsement and credibility and the Anson Zhao from Unilever seems to be explaining that they are significant in the determination of success in the highly competitive market of China.
Knowing the ways in which the consumer demand works is considered to be important for the interpretation of the trends of the market, development of the business models along with the creation of the marketing strategies (Tien 2019). The consumer demand is considered to be an economic measure of the desire of the group for the availability based on service and product. It is considered to be representing the habits of purchasing of the customers along with helping in determining the trends of purchasing of certain populations. The theory of demand is considered to be a set of ideas and principles, which seeks in tying the demands of the customers to the prices of the services and goods on the market. Theory demand is considered to be helping in addressing the ways in which the price, quantity and the impact of supply on the purchasing habits and the consumer demand as well. Moreover, the specific theory is considered to be the basis of the economic principles of the luxury purchasing and the demand curve as well.
The most crucial trend that have been observed is that the consumers of China are becoming more sophisticated in their respective attitudes towards beauty that is considered to be directly reflected within the fact that they happen to be looking beyond the brand on an increasing basis along with the efficacy of the product to the ingredients as well as want to have knowledge regarding the ability of a product for the achievement of an efficacy while others might not. Some of the top anchors that seem to be livestreaming are currently considered to be enhancing the endorsement of the brand along with the making the focal point on the specific ingredients in a product that can really help the customers in solving their issues (Anitah et.al., 2019). Moreover, the increase in the popularity of the medical beauty has also been making customers pay more attention to the efficacy along with the ingredients of the product beyond the area of the medical beauty. As per the specific trend, the government has also been enacting the new laws that covers the industry of beauty hoping that there are further regulations within the market. Firstly, believing the government is not in favour of the specific trends as they might help in feeling that it is a sign that the customers are taking the place of sophistications and it will also help in allowing both the manufacturers and brands that seem to be trying for the development of the quality products for standing out more. For avoiding the brands that are considered to be making claims exaggeratedly to the customers, the government has been helping in the introduction of the increased strict laws for countering the specific phenomena.
Understanding the consumer behaviour is considered to be crucial for navigating the trends of the market, along with the development of the business models as well as the creation of the strategies of marketing. Moreover, the having knowledge regarding the impacts that specific factors have on the demand of the consumer helps the investors, economists and financial planners help in making predictions regarding the stock market as well as the larger economy. There is availability of five elements, which are considered to be the significant determinants of understanding the consumer demands (Chandra et.al., 2022). Price is considered to be the specific value that is attributed to a service and goods as well. As per the theory, the amount of the demand seems to be falling when there is rise in the prices. Income of the purchaser also seems to be relating to the status of the social economy, and its helps in representing the amount of money in possession of customer at the disposal to purchase the items. With the rise in the income, the power of purchasing also seems to be getting increased, and the demand quality as well. Moreover, the price of the basic goods seems to be having the potential for changing the real income of the buyer. The marginal utility is considered to be the specific concept that seems to be slowing the increase down.
Analysis of Technological Advancement & Change Management
Unilever has been developing the new ground-breaking technology for recycling the sachets. As per the circular economy in action, the sachets shall be turned into plastic along with channelling back to the supply chain. Currently, only around 14% of the plastic packaging is recycled on a global basis. However, Unilever has been pledging to make 100% of the packaging recyclable, compostable as well as reusable by the year 2025. Billions of sachets are sold each year, specifically in the development and the emerging markets. Sachets are considered to be extremely efficient for the resources along with allowing the low-income consumers for purchasing small amounts of products, which would otherwise be reasonable to them. However, without a viable solution of recycling, packaging of the sachets might end up in the landfilling as well as litter (Fithry et.al., 2021). As a segment of the Sustainable Living Plan, Unilever has long been making commitments to finding an alternative to throwing the sachets away. The technology of CreaSolv process has been taken into adaptation from a specific method in use for the separation of the retardants of the brominated flame from the waste equipment that are both electronic and electrical polymers. During the specific procedure, the plastic is considered to be recovered from the specific sachet, along with the plastic then used for the creation of new sachets for the products of the Unilever involved in the creation of an entire circular approach of the economy.
The company’s 174,000 worldwide workers are dedicated to providing excellent service while producing an annual revenue of EUR 50 billion that is both sustainable and profitable. Business transactions are conducted around the clock, seven days a week using SAP’s core business solutions, which are utilised by more than 50,000 workers. Every year, more than four billion transactions are executed as a consequence of their efforts. As a consequence, the organisation is able to perform more efficiently and consistently than it was before. In order to do this, SAP software is key to Unilever’s value creation process. In recognition of the scope and capabilities of the Uni- lever global value chain, Gartner has positioned the chain as the leader in consumer items and the fourth most valuable chain overall, according to the company (Gartner Inc., 2014).
Unilever’s Business Strategy consists of the following components: This is the most ambitious aim that the Compass has set for itself.
Achieving this growth while simultaneously decreasing its environmental effect and improving its positive social impact is the goal of the Unilever “Compass,” according to the corporation (see figure 3).
Additionally, Unilever is engaging in a range of other actions in order to attain the goals set out by its strategy, in addition to just delivering new items to the market.
As a critical component of the strategy, one of the most important components of the ambitious road map is the expansion and fortification of an existing solid foundation in developing markets, which is one of the most important components of the ambitious road map. Because Unilever’s products are sold in more than 190 countries, as well as because the company has more than 50 years of experience in countries such as Brazil, China, India, and Indonesia, and because emerging markets account for 57 percent of total sales in these countries, this is made possible by a number of factors.
It is anticipated that the company’s growth would result in a more competitive cost structure, while at the same time reducing the company’s environmental effect. It is expected that the global supply chain will continue to be the primary driver of cost reduction and margin improvement in the future. To accomplish this, cost reduction will be implemented with discipline, and digital capabilities for insights will be used to plan and carry out wise judgments.
More cost savings will be realised in the future as a result of the sustained support of continuous improvement as a result of this initiative.
Impact of Change and suggestions for the future- Conclusions and Recommendations
Throughout the last few years, Uni- lever has focused on organisational transformation and simplification as part of its overall effort to achieve its business aim. This has included the consolidation of business divisions, as well as the introduction of global operations and services across the organisation. Unilever has consolidated more than two hundred local ERP systems into the current four regional SAP system landscapes over a period of approximately seven years, resulting in the current four regional SAP system landscapes. Unilever has consolidated more than two hundred local ERP systems into the current four regional SAP system landscapes (see figure 2). As a consequence of the consolidation, this corporate transformation has been achievable. Furthermore, in order to accelerate the pace of invention, the four regional ecosystems are controlled as a single global platform rather than as distinct businesses, which allows for greater collaboration. The use of an industrialised “create once, deploy everywhere” method leads in more productive global innovation that is both more scalable and quicker to implement. – Rapid integration may be shown, for example, by the integration of big acquisitions within six months after the acquisition’s completion. Similar to this, the global ERP platform is being leveraged to increase the pace at which consumer-driven product innovation may be introduced to the market. The quick adoption of business solutions to support the finance strategy of enhanced engagement with the firm in order to promote performance management and business growth, which is another case in point, is still another example to consider. These business solutions, which made use of modern in-memory technology (HANA) and were produced in four months all over the globe to service the EUR 50 billion organisation, were developed in four months for the organisation.
Because of this, the advantages of significant prior investments in the ERP platform’s critical capabilities will be realised as a consequence of these increased expenses. As data volumes expand as a result of business expansion, as well as data created by social media, mobile devices, and smart gadgets, new in-memory technologies will be able to meet the need for processing that will arise. Unilever was encouraged to establish and begin implementing a SAP HANA strategy as a result of this decision, which the business is now doing. As a result of this journey, real-time systems will be able to offer their users with a greater degree of agility and responsiveness than they now do.
Conclusions and Recommendations
With the help of the subsidiaries, the company is considered to be manufacturing and selling products of personal care and beauty, refreshments and food, along with a range of products for home care. Unilever is also considered to be owning around 400 brands in around 200 nations. Knowing the ways in which the consumer demand works is considered to be important for the interpretation of the trends of the market, development of the business models along with the creation of the marketing strategies. The consumer demand is considered to be an economic measure of the desire of the group for the availability based on service and product. As per the specific trend, the government has also been enacting the new laws that covers the industry of beauty hoping that there are further regulations within the market. Firstly, believing the government is not in favour of the specific trends as they might help in feeling that it is a sign that the customers are taking the place of sophistications and it will also help in allowing both the manufacturers and brands that seem to be trying for the development of the quality products for standing out more.
Reference
Anitah, J.N., 2019. Industry 4.0 Technologies and Operational Performance of Fast Moving Consumer Goods Manufacturers in Kenya: a Case Study of Unilever Kenya and L’oreal East Africa (Doctoral dissertation, University of Nairobi).
Anitah, J.N., Nyamwange, S.O., Magutu, P.O., Chirchir, M. and Mose, J.M., 2019. Industry 4.0 technologies and operational performance of Unilever Kenya and L’ Oreal East Africa. Noble International Journal of Business and Management Research, 3(10), pp.125-134.
Chandra, R. and Jatmika, S., 2022, March. Unilever Unilever Surabaya Corporate Social Responsibility (Csr) Policy in Maintaining Environmental Sustainability in Surabaya in 2014-2020. In International Conference on Public Organization (ICONPO 2021) (pp. 444-452). Atlantis Press.
Dubey, A., 2022. Understanding the consumer: A comparison of buying behaviour among consumers of Hindustan Unilever and Patanjali products. Applied Marketing Analytics, 7(3), pp.276-287.
Fithry, A.N.I., Hariyanto, M.I.Z.P. and Utami, E.S., 2021. The Impact of Consumer Behaviour Megashift on Unilever’s Product Strategy During COVID-19 Crisis. UNEJ e-Proceeding, pp.61-65.
Karki, S., 2021. Supply Chain Management of Unilever Nepal.
Sinulingga, R.A., 2019. Risk Management System in PT. Unilever Indonesia, Tbk. TIJAB (The International Journal of Applied Business), 3(1), pp.38-58.
Sinulingga, R.A., Sistem Manajemen Resiko pada PT. Unilever Indonesia, Tbk Risk Management System of PT. Unilever Indonesia, Tbk.
Tien, N.H., 2019. Comparative Analysis of Multidomestic Strategy of P&G and Unilever Corporation. International Journal of Foreign Trade and International Business, 1(1), pp.5-8.
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