Unilever Indonesia Essay

5337 Words Sep 18th, 2012 22 Pages
Business Model of Unilever Indonesia
The story how the FMCG champion maintain its pole position while at the same time strugling with business issue in competitive industry
Akhmad Rakhmattullah Sofyandi Sedar (29111144) Lecturer: Harimukti Wandebori Class 45C Master of Business Administration ITB April 18th 2012

TABLE OF CONTENTS I. PREFACE 1.1 Background 1.2 Company Profile 1.3 Internal & External Analysis 1.4 Porter’s Five Forces 1.5 Business Strategy II. BUSINESS MODEL ANALYSIS 2.1 Business Model Elements 2.1.1 Customer Value Propositions 2.1.2 Marketing STP 2.1.2 Profit Formula 2.1.3 Key Resources 2.1.4 Key Processes 2.2 Value Chain Analysis 2.3 Generating Alternative Strategies Using TOWS Matrix 2.4 Recommended Strategies III.
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• High dependance of consumer on some consumer goods brands. This is reflected on consumer loyalty on some brands consumer goods products such as Pepsodent and Sariwangi. • Market potential is quite large; approximately 250 million people live in Indonesia. These people are attractive target market for consumer goods product. • High satisfaction of consumers, proved by Indonesia Customer Satisfaction Award (ICSA) 2010 and Indonesia Most Trusted Company Award 2010, both from SWA Sembada Magazine. Threat • Rising price of important commodities like palm oil, coconut-sugar, and petroleum based commodities as an impact of increase on oil price, chemical material, and other material. • Instability of Rupiah value against foreign exchange. • Bad infrastructure for public road, made it expensive to distribute products. • Threat from energy supplies since inconsistent gas supply from Pertamina • Threat from lower price subtitute products, from competitors’ products and also from Chinese knock-off.

Business Model of Unilever Indonesia

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Competitor Analysis
Direct Competiors
• Lowest budget on advertising, Rp. 44 billion (2007) • Budget price product • Follower strategy, targeting market leader

Wings Group Procter & Gamble KAO
Competitive Profile Matrix
Critical Succes Factor Weight Rating Advertising Product Quality Price Competitivenes Management Financial Position Customer Loyalty Global Expansion Market

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