Creative Change and Innovation Assignment Sample
Introduction
Fast moving consumer goods are products that are being sold at quick speed with relatively low cost to the end users so that the company can enjoy a high profit margin. It includes all non-durable household goods that are offered by the company such as beverages, cosmetics, toiletries, packaged foods and other consumable items (Sari et. al. 2021). This report will cover details related to changes in consumer demand that affect creativity and main drivers in satisfying the market. Various components of change are important in strategy plans and the way companies embrace technology advancement to grow and expand business.
Overview of the FMCG company
Unilever plc is British Multinational consumer goods company that started its operation on 2 September 1939 to offer a range of products and services. Such as food, ice cream, supplements, wellbeing vitamins, tea and coffee that contributed in attracting a large number of customers within the organisation. Currently, the company owns around 400 brands and has a turnover of 51 billion Euros. Furthermore, the firm is organised into three main divisions such as home care, food and refreshment and beauty and personal care (The world’s 40 largest fast moving consumer goods companies, 2021).
Figure 1: Unilever plc
(Source: The world’s 40 largest fast moving consumer goods companies, 2021)
Analysis of Consumer Demand
Consumer Demand can be defined as an economic measure that helps to understand what all things are being demanded by a group of people to satisfy their wants in an effective way. In short, it contributes to understanding the willingness of an individual to buy a specific quantity of products and services at a specific point to meet its requirement (Salsabila et. al. 2021).
The way changes in consumer demand have affected creativity of business
In the current scenario, the demand of customers keeps on changing as per the situation or circumstances that has influenced Unilever to introduce more creative and innovative ideas to grow and succeed. Company has been innovative and creative for 100 years, from re-inventing soap to pioneering sustainable living (Tiwari and Pandey, 2022). So, that more innovation can be brought to society, the planet and products to meet the wants of customers beyond their expectations. Likewise, with the pandemic situation, the company has decided to introduce organic food products in its range so that healthier and tasty food could be offered to customers (Consumer demand, 2020). This attracted all the people that want to have organic and healthier food in their diet to stay safe and secure.
Figure 2: Consumer demand
(Source: Consumer demand, 2020)
Covid-19, has also raised awareness among people to stay safe, secure and maintain hygiene to protect themselves from a number of diseases. That is, companies have introduced Nature Protect that is developed by keeping in mind every surface and touch point where there is a chance of germs It is based from plant based extract that is neem that could help individuals in maintaining Hygiene requirement within the home (Hindustan Unilever Limited unleashes the superpower of nature through its new home care brand, Nature Protect!, 2020). Hence, it can be stated that change in consumer demand acts as an opportunity for firms to introduce new products that could be used to attract and retain more customers in the firm.
Moreover, with the change in customer demand, companies have also started making use of new technology to connect and offer products at the doorstep of customers. This has contributed in providing ease and convenience to customers to easily purchase their respective products while staying safe and secure at home (Ramawati, 2018). Companies are thinking of more creative and better ideas that could be used to build and retain strong relationships with the maximum number of customers living within the society.
Main drivers in satisfying the market
There are mainly five drivers that contribute to Unilever satisfying the demand of the market in the most desirable manner are fair price, understanding the taste of customers, taking their feedback and introducing innovative products (Suhartini and Pertiwi, 2021). All these are explained in detail as follows:
Fair price: Unilever is a company that offers products at reasonable prices to end users that helps in attracting middle and upper class people to be part of the firm. Price Skimming and competitive price strategy used by firm has also helped in growth and sustainability of business in external environment (Price Skimming Definition, 2022).
Understanding of market condition: Company also made efforts to conduct research related to market condition, what all tastes and preferences are of customers. Thus, Unilever planned to introduce new products such as organic food range, Nature Protect and many other products to meet market needs (Bäck et. al. 2018).
Taking their feedback: Thirdly, the efforts has been laid by company to take feedback of customers to know whether they actually like the products or services, any issue that they might have face while making purchasing. This has created a feeling of belongingness among customers that Unilever thinks about its wants and requirements on a priority basis (5 Places to Source Great Customer Feedback, 2022).
Highly dedicated employees and advanced technology: Unilever is a huge enterprise having more than 149000 employees that are dedicatedly and determinedly working for achievement of company goals. Furthermore, it has also utilised advanced digital technology that has helped in understanding the customers and providing necessary products to them.
Various components of change in an important area of the strategic plan
There are six components of change that are important in the context of a strategic plan: the objective of the company, risk assessment and management, communication, planning, managing resistance and continuous improvement. Such as:
- Objective: The first element of change is setting an objective as to why change is important for the company such as in the context of Unilever, change is significant as it helps in meeting the requirement of customers. Company has set an objective to be the most sustainable, innovative product that has helped in earning a high profit margin and sales volume.
- Risk assessment and management: The change process involves a certain amount of risk that the company must assess and manage to effectively implement the change. Likewise, companies implementing changes in Digital transformation have to analyse financial, human and other types of risk (Goranda al.2021). This has helped in identifying the risk and finding methods to overcome the same in the desired manner.
- Communication: Unilever has planned an appropriate communication method that could be used to influence employees to adapt to change so that it can stay ahead in the retail sector of the United Kingdom (Change Management & the importance of Communication, 2021). In its plan, it has mentioned to promote open and fair communication between the individual that has contributed in maintaining transparency and coordination among team members.
- Plan: The third element of change important to a strategic plan is a plan in which the company sets a proposed timeline in which the task must be completed so that there is less chance of mistake. Unilever, to bring digital transformation or introduce new products, has invested in training and development of employees (Suhartini and Pertiwi, 2021). So that they could have sufficient knowledge and confidence related to the way tasks must be completed in the desired manner.
- Manage resistance: It is also important as resistance from employees, management or any other result complicates in implementing change and achieving company goals (Steuernagel, 2020). Managers of companies focus on identifying the type of resistance and overcome it through different solutions such as reward, promotion and many more.
- Continuous improvement: Unilever has focused on continuously improving its product and services by adapting it with changing customer’s preferences, technology and many more. This has helped in increasing the overall profit margin and brand image of the enterprise in an external environment.
Analysis of Technological Advancement & Change Management
Company has embraced technology advancement in areas of change management and has created a full-fledged end to end digital transformation programmed that has contributed to accelerating the company journey. It has set up a digital council that has a cross functional team of leaders that are responsible for planning the ways in which digital media could be utilised to connect with customers (Tiwari and Pandey, 2022). The company thinks that with the world changing at a furious pace, it also has to continue changing to remain fit for the future. Unilever has always emphasised on leveraging its knowledge and local understanding of effectively serving a range of customers in the best possible manner.
Unilever, through creating and embracing a culture of diversity, inclusiveness and equality, is able to influence employees to openly and freely share their respective opinions. That could be used by firms for attracting a wider range of customers in the best possible manner. Apart from this, with covid-19 and other environmental issues, companies have pursued supply chain sustainability in respect to block chain (Salsabila et. al. 2021). As in the recent scenario, there is a lot of pollution and wastage being emitted by the company through pursuing its operation in the retail sector of the United Kingdom. It has planned to make use of Palm oil technology in which fruits could be derived from fruits and used in thousands of non-food consumer products. Such as, shampoos and soap.
Most of the oil plantations of the firm are being located at Leuser rainforest in Aceh province of Indonesia that has resulted in poor production standards and accelerated deforestation. Firm through implementing sustainable sourcing and digital programs at Unilever, is able to promote its growth and development worldwide. Company has planned to create sustainable forest footprints by making use of Green Tokens block chain technology (Unilever pursues supply chain sustainability with blockchain, 2022). This has led to promoting transparency and traceability of the palm oil supply chain. In addition to this, the firm has also made use of other technologies such as AI and satellite imaging to monitor land conversion as well as deforestation.
The above image depicts information related to benefits that the company enjoyed through making use of Block chain in its supply chain. Previously, the firm had a long and complex supply chain that resulted in transforming the products of the company as it moved. The block chain based supply chain has contributed to effective tracing and applying chain of custody (Bäck et. al. 2018). This has helped the company in maintaining records and track facts related to raw material that must be used in production of products and services.
Furthermore, with the impact of the pandemic, it has decided to implement digital transformation for bringing change in enterprises to cope with the situation and enjoy high profits in future scenarios. It has motivated employees by providing them training related to the way digital technology would be used by them to connect with customers. This has helped in enhancing their confidence level to make optimum use of their current skills, capabilities as well as knowledge to make use of digital media. It has also contributed in maintaining a record of all changes that the company is planning to make, overall progress made and the areas that must be improved.
With covid-19, companies have rapid acceptance to digital technology, and use of social media such as Facebook, Instagram and Twitter. Unilever has also made use of technology to enhance the experience of employees and effectively manage change within the organisation. It has hired and recruited specialised, trained and experienced IT people that can effectively take steps to promote use of digital technology employees to promote the products and services to customers (Unilever invests in digital factories to harness supply chains, 2019). This has helped in making best use of available technology and offering services to people as per their respective requirements. Unilever has prepared people for the future through providing necessary information about the benefits of change and the way the company could do the same.
Likewise, the firm has made use of data streaming from sensor-equipped machines that has contributed in effectively creating digital models. This has helped in tracking the condition and testing operations so that alternative methods could be planned to achieve the set objectives. It has also improved technology used in production so that less amount of wastage can be thrown into the external environment for the health and wellbeing of animal, humans living in society (Steuernagel, 2020). Hence, continuous monitoring and control has helped Unilever in ensuring effective embracing of technology in the change management process and enhancing overall profitability of the firm.
Impact of Change and suggestions for the future- Conclusions and Recommendations
Impact of change
Unilever develops and expands the business by launching new product ranges which include hygienic and organic products in the process. These product ranges help in increasing the network of the customers. Company launched a product named natural protect in the covid-19 to attract new customers and maintain the permanent one in the process to achieve the objective (Evans, 2020). Unilever management took the right decision at the right time that created a higher growth in the brand image with the business activities prevailing in the society.
This also helps in creating customers who have high income in the society. This comes under luxury products in the society. Unilever also gained new heights by the increase of sales of the products through digital platforms across the globe. Digital transformation of the company helps in reaching large groups of the society at the same period of time (Ramlawati, 2018). Digital transformation of the company helps in maintaining order details and accounts transactions in the process.
Conclusion
From the above report it can be concluded that Unilever management is flexible which leads in fighting with dynamic situations in the environment. Manager of the company always has a growth mind-set by making higher sales in the market through making use of digital technology and block chain in supply chain management. Furthermore, the company deals fairly with the customers and makes the necessary returns of the products that help in competing with other companies of the same industry in the market. Hence, Unilever by introducing new products is able to induce new and existing customers in the enterprise for its overall development.
Recommendation
- From the view point, it can be stated that a company needs to launch products that are especially for every age group in the market. This will result in gaining family customers in the process. Health is very precious so price doesn’t matter when it comes to quality. And this is a luxurious product too. Highly income grouped people should be satisfied with the quality of the product. In the future the company needs to diversify its product ranges with sustainable growth (Cameron and Green, 2019).
- Company can expand its business offshore by developing new manufacturing technology and units which helps in establishing high standards according to export quality in the process. This export of products will lead to global expansion of the business activities in the market (Thakur and Mangla, 2019). This also increases the quality in the local market that will provide an advantage in the competitive market.
References
Cameron, E. and Green, M., (2019). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Evans, T.R., (2020). Improving evidence quality for organisational change management through open science. Journal of organizational change management.
Goranda, I.R., Nurhayati, P. and Simanjuntak, M., (2021). Analysis of Consumer Satisfaction and Loyalty Factors with CRM Approach in Agribusiness E-commerce Company. Journal of Consumer Sciences, 6(2), pp.111-128
Ramlawati, R., (2018). Total Quality Management as the Key of the Company to Gain the Comrtitiveness, Performance Achievement and Consumer Satisfaction. International Review of Management and Marketing, 8(4), pp.60-69.
Salsabila, N.W.R.S.N., Kadek, N.M.S.S., Pradnyana, C.D.P.P.K. and Oka, N.K.N.W., (2021). Determinants of Company Value in the Indonesia Stock Exchange-Listed Consumer Good Industry.
Sari, W., Waruwu, D. and Purba, E., (2021). Does CEO’s Financial Decision Able To Improve Firm Value Of Consumer Good Industry. Jurnal Reviu Akuntansi dan Keuangan, 11(2), pp.447-466.
Steuernagel, A., (2020). Creating Digital Growth at International Consumer Goods Companies. In Führen und Managen in der digitalen Transformation (pp. 361-387). Springer Gabler, Wiesbaden.
Suhartini, C.A.A. and Pertiwi, I.F.P., (2021). The Effect of Corporate Social Responsibility on Consumer Purchase Decisions with Corporate Image and Brand Image as Intervening. Journal of Business and Management Review, 2(5), pp.336-348..
Thakur, V. and Mangla, S.K., (2019). Change management for sustainability: Evaluating the role of human, operational and technological factors in leading Indian firms in home appliances sector. Journal of cleaner production, 213, pp.847-862.
Tiwari, A. and Pandey, A., (2022). Chapter-2 Impact of Innovation on Customer Satisfaction, Brand Image and Consumer Buying Behaviour. COMMERCEAND, 53, p.23.
The world’s 40 largest fast moving consumer goods companies, 2021. [Online]. Available Through:<https://www.consultancy.uk/news/26874/the-worlds-40-largest-fast-moving-consumer-goods-companies>.
Consumer demand, 2020. [Online]. Available Through:< https://www.economicsonline.co.uk/competitive_markets/consumer_demand.html/>.
Hindustan Unilever Limited unleashes the superpower of nature through its new homecare brand, Nature Protect!, 2020, [Online]. Available Through:< https://hotnewsexpress.com/2020/11/05/hindustan-unilever-limited-unleashes-the-superpower-of-nature-through-its-new-homecare-brand-nature-protect/>.
Price Skimming Definition, 2022, [Online]. Available Through:< wallstreetmojo.com/price-skimming/>.
5 Places to Source Great Customer Feedback, 2022, [Online]. Available Through:< https://www.callcentrehelper.com/places-source-feedback-136293.htm>.
Change Management & the importance of Communication, 2021, [Online]. Available Through:<https://www.linkedin.com/pulse/change-management-importance-communication-lena-dumont?trk=articles_directory>.
Top of Form
Bottom of Form
Unilever invests in digital factories to harness supply chains, 2019. [Online]. Available Through:
<https://www.cosmeticsdesign-europe.com/Article/2019/07/23/Unilever-invests-in-digital-factories-to-harness-supply-chains>.
Unilever pursues supply chain sustainability with blockchain, 2022, [Online]. Available Through:<https://www.techtarget.com/searchsap/news/252515342/Unilever-pursues-supply-chain-sustainability-with-blockchain>.
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
