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Q1. Company Profile, History and Challenges

1.1 Introduction

The Fast moving consumer goods (FMCG) industry is one of the established and also the competitive industries in the world. From a small Dutch margarine manufacturing company to a large scale corporate giant, Unilever has established itself as a market leader across dozens of categories. Again they are the global market leader in food categories in which they operate (like savoury, tea, Ice cream) and also in skin care and deodorants. (Its pre-packaged products are definitely a household name such as Continental, Rexona, Sunsilk, Dove, Lipton, Flora, Lynx etc).Unilever markets and sells its products in 150 countries and has an annual turnover of about 40 billion pounds(2005) by controlling its subsidiaries in 100 countries and employing about 206,000 people worldwide (www.unilever.com).With an armada of brands in its pocket Unilever definitely meets its mission statement "To add Vitality to life and Meeting the everyday needs of people everywhere" (www.corporatewatch.org.uk)

1.2 Brief History

The time was early 1900, 1930 to be precise, when the British soap maker lever brothers merged with a Dutch margarine company called Margarine Unie. William Hesketh Lever was the founder of Lever brothers while Margarine Unie had grown through mergers with other regional margarine companies in the early 1920's.In 1990's it entered the European market by concentrating on fewer core brands. (http://hbswk.hbs.edu). The beginning of the 21st century saw the company coining a major initiative plan which aims at sharpening the core products and increase the sales via definite marketing channels and in focus brand recognition. (http://en.allexperts.com)

1.3 Market and Operational Challenges

The Paradox lies in Unilever's vast presence world wide, is the low visibility of its products. Though it has strong base in the developing countries like India, Ghana, Sri Lanka, Brazil and Turkey, it faces tremendous...