Learnings from Unilever Indonesia

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.