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Post Covid-19:A new
opportunity?
Situation ANALYSIS
2/7/2021 2
• Unilever made flat
underlying sales of
+2.8% in emerging
market whereas -1.8%
in south Asia making
mixed impact.
• Turnover of 0.2%
increased with positive
impact of 0.65%
• Volume growth of 0.2%
with price reduction of
0.2%
Deodorant and oral care product
increased in western countries
where decreased in south Asia.
• Unilever earned: 1.73
billion USD.
• With sales of 1729.18
million USD.
Unilever incorporation has
about 10000 employees
with
222 subsidiaries.
Unilever maintained stable
stock market position
compared to most of the
other FMCG companies,
due to strong marketing
and brand value
Situation ANALYSIS
2/7/2021 3
.
.
Consumer behavior may change
towards cautious spending to save
money.
Post covid-19
Era
Consumers will become more
online dependent,
Economy will suffer major impact.
Stocks will tumble,
Purchasing power of consumers
will be depleted
Less production with controlled
border will limit supply chain
effectiveness.
Internal Factor
2/7/2021 4
Unilever held strong
stock market value
compared to other
competitors.
Consumers are
expected to spend more
on basic items like
groceries as opposed to
beauty products.
High level of stress
caused by the
uncertainity and volatility
impacting personal and
family life.
FACTOR 1 FACTOR 1 FACTOR 3
Consumers will be
cautious in spending to
save money for security.
FACTOR 4 FACTOR 5
UNILEVER BD has very
strong market value
compared to others.
External Factor
2/7/2021 5
Demand pattern
changing: Leaning
more towards
hygiene product
then beauty product
Consumers getting
more and more
comfortable with online
shopping. Raw Material sourcing
will be difficult due to
international trade
movement restriction..
Inflation rate may
increase in post covid-19
leading to price increase
resulting in reduction of
purchasing power of
consumers.
FACTOR 1 FACTOR 2 FACTOR 3
.
FACTOR 4 FACTOR 5
Hygiene products
demand will
increase in future
Issue IDENTIFICATION
2/7/2021 6
TECHNOLOG
Y
SUPPLY
CHAIN
HUMAN
RESOURCE
SALES
1.Global distribution is disrupted due to border restrictions, long
waiting times for additional HSE checks, and production reduction.
2.Modifying/using some existing raw materials into production of
more demanding products.
.
High level of stress caused by uncertainty and its impact on
personal and family well-being. Training and counselling
instituted.
Consumers will avoid busy stores to avoid large human
gathering reverting to online shopping.
Advent of online marketing requires new innovative and
resilient business model to maintain growth.
Issue IDENTIFICATION
2/7/2021 7
FINANCE 1.Sluggishness of world economy. Falling of stock price and
interest rate.
2.Change in consumer purchasing trait
ISSUE TYPE IMPACT URGENCY PRIORITY
Disruption of global
distribution
threat Supply chain
breakdown
As soon as
possible
Top
Need for innovative
resilient market
opportunity Lack of
adaptability
Within 6 months 2nd
Leaning to online
shopping to avoid busy
retail store
opportunity Reduction of
sales with loss of
market share.
As soon as
possible
3rd
Falling of world economy. threat Revenue loss 4th
Change in purchasing
habit
opportunity Loss of market
share
5th
Issue Prioritization
In pre covid-19 era, there were
no worries about RAW material
sourcing due to open world
economy and timely shipping.
Choice of suppliers was also
high, making supply less
stressed.
PROBLEM IDENTIFICATION
2/7/2021 9
On the other hand ,after
covid-19,due to trade flow
restrictions, raw material
sourcing becoming difficult,
forcing producers searching
for alternative suppliers.
Disruption in raw material
supply can cause devastating
effect on the production.
After Covid-19
Before Covid-19
ACTION WITH IMPACT
2/7/2021 10
1.The increased supply chain
monitoring will allow
UNILEVER to cope up with the
change in customer trait.
IMPACT
2.Will help Unilever to detect
any kind of early disruption in
raw material supply to mitigate
accordingly.
3.By installing a resilient
operating model. So that
UNILEVER will be able to
adjust to the market demand.
Increasing Supply Chain Monitoring
Should Make the supply chain as
resilient as possible, Like making one
sourcing for personal hygiene &
beauty products as much as possible,
Monitor and evaluate to implement
necessary changes to supply chain
for continued operation.
. Have to monitor and track raw
material supply with utter
importance, as raw material supply
will be hampered.
Have alternative raw material
supplier
The economy of Bangladesh
was rising, so does the
purchasing power of
consumers. Which make FMCG
company like Unilever, which
have already gained a huge
market share, a growth
machine.
PROBLEM IDENTIFICATION
2/7/2021 11
At the advent of covid-
19,whole worlds economic
situation detoriated, people
losing their buying power,
which affect directly FMCG
org like Unilever.
Maintaining market share is
key problem.
After Covid-19
Before Covid-19
ACTION-PLAN WITH IMPACT
2/7/2021 12
1.By doing so,Unilever will able
to maintain its strong stock
market and market leader
position.
2.Financial analysis adjustment
will help Unilever to prioritize
future plan or even cancel
them.
IMPACT
Making some financial adjustment
Be always alert for any sudden
change in demand of some
product,for tackling this situation,
make the production line as resilient
as posssible
Scrutinize any future investment
plan thoroughly.
Put emphasis on all type of forcast.
Sustainability has been a
global topic in last decade in
response to earth’s resource
depletion day by day. But the
lack of public awareness to
this effect has left a void in our
day to day life.
PROBLEM IDENTIFICATION
2/7/2021 13
The arrival of covid-19 is like a
bolt from the blue. People
now started to realize that
sustainability is the future,
Every corner of Bangladesh
has to go under the umbrella
of Unilever’s marketing.
After Covid-19
Before Covid-19
ACTION WITH IMPACT
2/7/2021 14
1.Effective sustainable planning
will help Unilever attain
business goals meeting the
demand of all types of
consumers.
2.By implementing a well
thought strategy Unilever will
acquire a strong workforce at
the rural level.
IMPACT
Effective Sustainabilty goal implication throughout the consumer tier
Make collaboration with other relevant
organizations to achieve this goal
more efficiently.
Allocate macro and micro
marketing budget for utilizing
strong brand value to reach out to
urban and rural consumers.
Locally trained manpower should
be deployed to educate the
people of remote areas about
product quality and benefits for
sustainability . .
3. The implementation of this plan
will enable Unilever to monitor lower
tier people’s need and make
necessary adjustments to the
production line to meet that demand.
References
https://www.unilever.com.bd/sustainable-living/
https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-
consumer-behavior-is-changing-amid-covid-19
https://www.packagingstrategies.com/articles/95442-how-covid-19-is-affecting-fast-moving-consumer-
goods-businesses
Rubayed razib (buet) corrected_2020_ulip_2020

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Rubayed razib (buet) corrected_2020_ulip_2020

  • 2. Situation ANALYSIS 2/7/2021 2 • Unilever made flat underlying sales of +2.8% in emerging market whereas -1.8% in south Asia making mixed impact. • Turnover of 0.2% increased with positive impact of 0.65% • Volume growth of 0.2% with price reduction of 0.2% Deodorant and oral care product increased in western countries where decreased in south Asia. • Unilever earned: 1.73 billion USD. • With sales of 1729.18 million USD. Unilever incorporation has about 10000 employees with 222 subsidiaries. Unilever maintained stable stock market position compared to most of the other FMCG companies, due to strong marketing and brand value
  • 3. Situation ANALYSIS 2/7/2021 3 . . Consumer behavior may change towards cautious spending to save money. Post covid-19 Era Consumers will become more online dependent, Economy will suffer major impact. Stocks will tumble, Purchasing power of consumers will be depleted Less production with controlled border will limit supply chain effectiveness.
  • 4. Internal Factor 2/7/2021 4 Unilever held strong stock market value compared to other competitors. Consumers are expected to spend more on basic items like groceries as opposed to beauty products. High level of stress caused by the uncertainity and volatility impacting personal and family life. FACTOR 1 FACTOR 1 FACTOR 3 Consumers will be cautious in spending to save money for security. FACTOR 4 FACTOR 5 UNILEVER BD has very strong market value compared to others.
  • 5. External Factor 2/7/2021 5 Demand pattern changing: Leaning more towards hygiene product then beauty product Consumers getting more and more comfortable with online shopping. Raw Material sourcing will be difficult due to international trade movement restriction.. Inflation rate may increase in post covid-19 leading to price increase resulting in reduction of purchasing power of consumers. FACTOR 1 FACTOR 2 FACTOR 3 . FACTOR 4 FACTOR 5 Hygiene products demand will increase in future
  • 6. Issue IDENTIFICATION 2/7/2021 6 TECHNOLOG Y SUPPLY CHAIN HUMAN RESOURCE SALES 1.Global distribution is disrupted due to border restrictions, long waiting times for additional HSE checks, and production reduction. 2.Modifying/using some existing raw materials into production of more demanding products. . High level of stress caused by uncertainty and its impact on personal and family well-being. Training and counselling instituted. Consumers will avoid busy stores to avoid large human gathering reverting to online shopping. Advent of online marketing requires new innovative and resilient business model to maintain growth.
  • 7. Issue IDENTIFICATION 2/7/2021 7 FINANCE 1.Sluggishness of world economy. Falling of stock price and interest rate. 2.Change in consumer purchasing trait
  • 8. ISSUE TYPE IMPACT URGENCY PRIORITY Disruption of global distribution threat Supply chain breakdown As soon as possible Top Need for innovative resilient market opportunity Lack of adaptability Within 6 months 2nd Leaning to online shopping to avoid busy retail store opportunity Reduction of sales with loss of market share. As soon as possible 3rd Falling of world economy. threat Revenue loss 4th Change in purchasing habit opportunity Loss of market share 5th Issue Prioritization
  • 9. In pre covid-19 era, there were no worries about RAW material sourcing due to open world economy and timely shipping. Choice of suppliers was also high, making supply less stressed. PROBLEM IDENTIFICATION 2/7/2021 9 On the other hand ,after covid-19,due to trade flow restrictions, raw material sourcing becoming difficult, forcing producers searching for alternative suppliers. Disruption in raw material supply can cause devastating effect on the production. After Covid-19 Before Covid-19
  • 10. ACTION WITH IMPACT 2/7/2021 10 1.The increased supply chain monitoring will allow UNILEVER to cope up with the change in customer trait. IMPACT 2.Will help Unilever to detect any kind of early disruption in raw material supply to mitigate accordingly. 3.By installing a resilient operating model. So that UNILEVER will be able to adjust to the market demand. Increasing Supply Chain Monitoring Should Make the supply chain as resilient as possible, Like making one sourcing for personal hygiene & beauty products as much as possible, Monitor and evaluate to implement necessary changes to supply chain for continued operation. . Have to monitor and track raw material supply with utter importance, as raw material supply will be hampered. Have alternative raw material supplier
  • 11. The economy of Bangladesh was rising, so does the purchasing power of consumers. Which make FMCG company like Unilever, which have already gained a huge market share, a growth machine. PROBLEM IDENTIFICATION 2/7/2021 11 At the advent of covid- 19,whole worlds economic situation detoriated, people losing their buying power, which affect directly FMCG org like Unilever. Maintaining market share is key problem. After Covid-19 Before Covid-19
  • 12. ACTION-PLAN WITH IMPACT 2/7/2021 12 1.By doing so,Unilever will able to maintain its strong stock market and market leader position. 2.Financial analysis adjustment will help Unilever to prioritize future plan or even cancel them. IMPACT Making some financial adjustment Be always alert for any sudden change in demand of some product,for tackling this situation, make the production line as resilient as posssible Scrutinize any future investment plan thoroughly. Put emphasis on all type of forcast.
  • 13. Sustainability has been a global topic in last decade in response to earth’s resource depletion day by day. But the lack of public awareness to this effect has left a void in our day to day life. PROBLEM IDENTIFICATION 2/7/2021 13 The arrival of covid-19 is like a bolt from the blue. People now started to realize that sustainability is the future, Every corner of Bangladesh has to go under the umbrella of Unilever’s marketing. After Covid-19 Before Covid-19
  • 14. ACTION WITH IMPACT 2/7/2021 14 1.Effective sustainable planning will help Unilever attain business goals meeting the demand of all types of consumers. 2.By implementing a well thought strategy Unilever will acquire a strong workforce at the rural level. IMPACT Effective Sustainabilty goal implication throughout the consumer tier Make collaboration with other relevant organizations to achieve this goal more efficiently. Allocate macro and micro marketing budget for utilizing strong brand value to reach out to urban and rural consumers. Locally trained manpower should be deployed to educate the people of remote areas about product quality and benefits for sustainability . . 3. The implementation of this plan will enable Unilever to monitor lower tier people’s need and make necessary adjustments to the production line to meet that demand.