Unilever(UK)(UL)2024-09-25 20:09Company and Industry Key Points 1. Holistic Product Superiority and Performance Improvement: * Unilever emphasizes holistic product superiority, moving beyond functional aspects to include factors like desirability and overall value proposition. * The company has implemented a proprietary methodology to measure 21 demand drivers across six Ps (proposition, product, packaging, promotion, price, and place) to improve competitiveness. * This approach has led to improved sales and performance, particularly in Europe, where the company has seen remarkable volume growth in the second quarter. 2. Organizational Culture and Leadership: * Unilever has experienced a cultural shift, moving from denial and mediocrity to a more fact-based, results-oriented approach. * The appointment of Hein as CEO and the departure of several non-executive directors have contributed to this change. * The company is committed to making radical decisions for long-term performance improvement, including workforce reductions and strategic portfolio changes. 3. Market Share and Competitiveness: * Unilever has shifted its focus from sales-weighted market share to turnover-weighted share, aiming for a more accurate measure of competitiveness. * The company acknowledges that it is not yet where it wants to be in terms of market share and is committed to improving its position. * The company is investing in brand equity and innovation to drive growth and competitiveness. 4. Emerging Markets and Growth: * Unilever remains confident in its position in emerging markets, particularly India, where the company has seen significant growth and is committed to defending its market share. * The company is focused on modernizing its portfolio and leveraging its digital capabilities to drive growth in these markets. 5. Sustainability and Regulatory Compliance: * Unilever is a leader in sustainability and has focused its efforts on four key areas: climate, nature, plastics, and livelihoods. * The company is committed to achieving time-bound targets and welcomes regulations that promote a level-playing field. * The company is investing in R&D to address challenges related to single-use plastic sachets and other sustainability issues. 6. Strategic Portfolio Changes: * Unilever has separated its ice cream business, recognizing that it is a clear outlier in the company's portfolio. * The company is committed to maintaining its Nutrition business, which is an integral part of its strategy. 7. Challenges and Opportunities: * Unilever faces challenges in markets like Indonesia and China, where it is experiencing issues related to channel price conflict and geopolitical tensions. * The company is committed to addressing these issues and focusing on long-term growth and profitability.