Unilever & Procter and Gamble

Unilever [pic] The company was formed by a merger of Dutch Margarine Union and British soap-makers Lever Brothers in 1929. Unilever was one of the world’s first genuine multinationals with operating companies in more than 40 countries. The company produces and distributes a vast number of well known brands in the areas of nutrition, hygiene and personal care that are used by consumers all over the world. The history of Unilever dates back to 1885, William Lever established a soap manufacturing company in the UK with his brothers and named the company Lever Brothers in 1885.

William Hesketh Lever was born at Bolton; Lancashire in 1852 was the son of grocer. Together with James Lever, William Lever opened soap factory at Warrington, England, in 1885. Their products, Sunlight, the world’s first packaged soap, were very successful. The soup they made in ready moulded tablet. Previously laundry soap was marketed in bars and grocers cut off pieces and sold them by weight. Until 1919 Lever was wholly own a controlled by the founder. By 1919, as a result of ingle minded expansionist, commercial policies, his firm accounted for 60 percent of soap production in Britain.

Two butter makers, Jurgen and Van den Berghs formed Margarine Union in 1927. The Dutch Margarine Union merged with Lever Brothers of United Kingdom in 1929 to form Unilever. During the 1930s, the structure and management do Unilever has been describe as a professional largely non-family managed hierarchy. Unilever has been present in the North Africa and Middle East region since 1933. For tax, purpose, two separate entities were established, one in London and another in Rotterdam. Historically, Unilever has grown to be a very multilocal company. However, while the company used to work with regional supply chains on regional brands.

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Unilever started to globalize their brands in the early and mid 1990s. Mergers & Acquisitions and Divestments of Unilever ? With effect from 1 January 2008, Unilever entered into an expanded international partnership with PepsiCo for the marketing and distribution of ready-to-drink tea products under the Lipton brand. ? 2nd April 2008, acquisition of Inmarko, the leading Russian ice cream company. ? 4 December 2008, a 50:50 joint venture between two Singapore-based companies, Wilmar International Limited and Olam International Limited for sale of our edible oil business. 24 February 2009, Unilever agreed to acquire the iconic Romanian ice cream brand Napoca, as part of our expansion into the country’s ice cream market. ? 4 April 2009, acquisition of the global TIGI professional hair product business and its Advanced Education Academies. ? 3 July 2009, acquisition of the sauces business of Baltimor Holding ZAO, the leading ketchup business in Russia. ? 18 January 2010, Unilever signed a definitive agreement to sell their Shedd’s Country Crock-branded chilled side-dish business in the US to Hormel Foods Corporation. 19 August 2010, Unilever signed an asset purchase agreement with Norwegian dairy group TINE, to acquire the activities of Diplom-Is ice cream operations in Denmark. ? 24 September 2010, Unilever announced an agreement to sell Unilever’s consumer tomato products business in Brazil to foods company Cargill for approximately €260 million. ? 28 September 2010, Unilever and EVGA announced that they would acquire EVGA’s ice cream brands and distribution network, enriching their ice cream portfolio in Greece. 6 December 2010, Unilever completed the acquisition of the Sara Lee Personal Care and European Laundry business for €1. 2 billion. ? 10/05/2011, Unilever acquired the Alberto Culver Company. Proctor & Gamble [pic] Since 1837, P&G has built a rich heritage of touching consumers’ lives with brands that make life a little better every day. In 1887, P&G institutes a pioneering profit-sharing program that gives employees an ownership stake in the Company. This significant innovation helps employees connect their vital roles with the Company’s success.

In 1924, P&G becomes the first company to conduct deliberate, data-based market research with consumers. This forward-thinking approach enables them to improve consumer understanding, anticipate consumer needs and respond with products that improve their everyday life. In 1941, P&G becomes one of the first companies to formally respond to consumer correspondence by establishing the Consumer Relations department. The addition of toll-free phone numbers in 1973 and e-mail in the 1980s further enhance consumers’ ability to contact and keep the consumer at the heart of all they do.

In 1955, Crest is co-developed with Indiana University. This collaboration delivers a product that is a breakthrough in the use of fluoride to protect against tooth decay, the second-most prevalent disease at the time. In 2002, P&G develops Naturella feminine pads specifically to meet the needs of low-income women in Latin America. Based on deep consumer understanding, Naturella responds to consumers’ desire for freshness with chamomile, a unique ingredient never before used in feminine care products. In 2005, High Frequency Stores common in developing markets emerge as their largest customer channel.

Consisting of nearly 20 million stores across the world, HFS represents a particular opportunity in fast-growing, low-income markets. Through HFS, we connect to consumers with affordable products and packaging specially designed for their needs. Mergers & Acquisitions and Divestments of P&G ? Procter & Gamble (P&G) agreed to sell "iconic snack brand" Pringles to Diamond Foods in a deal worth $2. 3bn (? 1. 4bn). Pringles, the world's largest potato crisp brand, will triple Diamond's existing snack business. ? Divested its Western European tissue/towel business to SCA, a global consumer goods and paper company.

The deal involves the sale of manufacturing assets, P&G's Tempo brand in Europe and Hong Kong, and the licensing of Charmin & Bounty trademarks in Europe. ? Divested its slow-growing Folgers coffee business as a sacrifice to its long-term growth goals. ? In 2005, P acquired the largest acquisition in its history by purchasing Gillete brand for $57 billion. This deal not only included Gillete razors but also Duracell batteries and Braun and Oral-B brand dental products. This deal gave P even more control over shelf-space in retailers all over the world. Current Global Position

Let us see where the two companies stand in the World’s Most Admired Companies from the data collected by Fortune: | | | | | | | | | Strategic Problems today & Recommendations

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