Historically, Unilever pursued product development and branding strategies. Their goal was to better harvard business school essay examples the company’s fixed investments in brands, new product and development and manufacturing capability across multiple, even global, markets, while not sacrificing the local responsiveness that they deemed to a core Unilever strength. Unilever’s enormous diversity of products had historically served people’s everyday needs, and in 1997 could be broken down in three categories: foods, detergents, and personal care products.
The company manufactured over a thousand brands. The biggest portion of turnover included margarine. Unilever was the world’s largest margarine manufacturer. Unilever’s European efforts in developing novel spread products were great.
In exhibits 4, 5, and 6, showed likely success. They used their strategy of using local research and development to go along with their global strategies. The result was not only local brands but also managers who had considerable freedom in selecting which product lines to pursue and what targets to set. There seemed to be conflicting evidence, in exhibit 6, about weather globally or regionally managed foods company would be more successful than a local organized one. Local organized companies know what the local customers want and global managers see the bigger picture.
It is extremely important in business that the customer is always right. A team had then developed and launched the product in Germany, using that country as a test market. Krona was a success in Germany. Within its first year on the market, Krona had exceeding sales. Now, however, after two successful years in the German market, Krona had still not been launched in other European countries because of disappointing test results in those venues.