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Learnings from Unilever Indonesia

December 18, 2007

I recently read an article about the success of Unilever Indonesia, one of Asia’s top consumer goods companies. Please find below a summary of the key learning:

Distribution network strength – covering more than 600,000 outlets, their distribution network is a key competitive strength and a barrier for entry.

Growth in modern trade– accelerated growth in the modern trade sector provides opportunities for competitor entry.

Affordability – small pack sizes ensure the brand is affordable to all segments of the population.

With crisis comes opportunity– the 1997-98 financial crisis forced the company to reevaluate their strategy. These strategic changes are currently driving sales growth.

Low labour cost provides opportunity– the company is currently exporting products to South East Asia and Australia.

Micromarketing approach– consumers are segmented by geography and need state. Different climate and environment, result in different need state.

Quality assurance– the company does not outsource manufacturing and has better control over quality.

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