Assignment Question

select a brand from the fast moving consumer goods category. While this brand can be from the UK, those from international firms can also be selected, as long as information on their sustainability practices is available in English. • A brief background and explanation regarding the brand’s nature and the rationale of its strategic positioning should be provided as an appendix. You can also present brief information about the FMCG sector, the nature of its offerings, existing competitors, the competitive advantage of the brand, etc. You should select brands with available public information (e.g., websites, reports). • In some areas you may need to use your own judgement as to what the brand has done as specific information might be unavailable to you. If you need to make assumptions, then make this clear and justify the assumption in your answer. It’s important to understand that you are unlikely to find all the information about your chosen branding published sources. Some of it is going to be by personal experience. If the material comes from published sources, then reference it but if most comes from your own research then indicate this in your answer. Any data that is used must be referenced. Feel free to search and use other sources of information (i.e., journal articles ,websites, and reports) to strengthen your answer Please answer all questions in the essay 1. Discuss the UN sustainable development goals (SDGs) related to your brand. Critically analyses how your brand addresses specific SDGs and evaluate its success. (25 marks) 2. Analyses the stakeholders of your chosen brand. Discuss potential conflicts among stakeholder interests and propose how the brand can improve its stakeholder relationships this context. (25 marks) 3. Analyses your chosen brand’s sustainability marketing practices. For example, these can relate to their sustainable pricing, innovation, logistics, communication, or message strategies. Critically evaluate your brand’s sustainability performance, discuss problem sand opportunities, and suggest possible improvements. Your analysis shall be based on appropriate concepts and frameworks covered in the module. (50 marks)

 Answer

Introduction

Fast-moving consumer goods (FMCG) play a pivotal role in our daily lives, encompassing a wide range of products such as food, beverages, personal care, and household items (Kotler et al., 2018). In this essay, we will delve into the sustainability initiatives of Unilever, a multinational FMCG giant with a significant presence in the United Kingdom and worldwide (Unilever, 2023). Unilever’s commitment to sustainability is deeply rooted in its corporate culture and business strategy, making it a noteworthy case study for examining how a large corporation can align with the United Nations Sustainable Development Goals (SDGs), manage stakeholder relationships, and implement sustainability marketing practices.

Background of Unilever

Unilever is a British-Dutch consumer goods company founded in 1930, resulting from the merger of Margarine Unie and Lever Brothers. The company operates in nearly 190 countries and boasts a diverse portfolio of well-known brands, including Dove, Ben & Jerry’s, Lipton, and Hellmann’s (Unilever, 2023). Unilever’s strategic positioning is characterized by its commitment to the “Sustainable Living Plan,” which outlines its goals to improve health and well-being, reduce environmental impact, and enhance livelihoods for millions of people (Unilever, 2023).

Nature of the FMCG Sector

The FMCG sector revolves around the production and distribution of products that have a short shelf life and are frequently consumed (Kotler et al., 2018). These products are essential in our daily lives, ranging from packaged foods to personal care items. The sector is highly competitive, with consumers often making quick purchase decisions based on factors like price, quality, and brand reputation (Kotler et al., 2018). Sustainability has become a key differentiator in this industry, influencing consumer choices and brand loyalty.

Competitive Advantage of Unilever

Unilever’s competitive advantage lies in its commitment to sustainability and social responsibility (Unilever, 2023). The company has made significant strides in reducing its environmental footprint, promoting diversity and inclusion, and sourcing raw materials sustainably (Unilever, 2023). This proactive approach has resonated with consumers and investors alike, strengthening its brand image and market position.

UN Sustainable Development Goals (SDGs)

The United Nations has established 17 Sustainable Development Goals to address global challenges and promote a more sustainable future. Unilever has actively aligned its sustainability efforts with several of these goals:

Goal 2: Zero Hunger

Unilever contributes to achieving this goal by promoting sustainable agriculture and food security (Unilever, 2023). The company invests in initiatives that empower smallholder farmers, improve food production, and reduce food waste (Unilever, 2023). Brands like Knorr and Hellmann’s actively support sustainable sourcing and responsible consumption.

Goal 3: Good Health and Well-being

Through its various brands, Unilever focuses on enhancing the health and well-being of consumers (Unilever, 2023). Products like Dove promote self-esteem and body positivity, while partnerships with organizations like the World Health Organization (WHO) aim to improve hygiene and sanitation, particularly in developing regions (Unilever, 2023).

Goal 5: Gender Equality

Unilever is committed to gender equality within its workforce and supply chain (Unilever, 2023). The company has set ambitious targets to increase the representation of women in leadership positions and empower women in the agricultural sector (Unilever, 2023). Dove’s “Real Beauty” campaigns exemplify this commitment by challenging beauty stereotypes and promoting self-confidence among women (Unilever, 2023).

Goal 12: Responsible Consumption and Production

Unilever’s Sustainable Living Plan places a strong emphasis on responsible consumption and production (Unilever, 2023). The company has made significant progress in reducing its environmental impact, including efforts to reduce water and energy consumption, minimize waste, and transition to renewable energy sources (Unilever, 2023).

Goal 13: Climate Action

Unilever is actively addressing climate change by committing to net-zero emissions across its value chain by 2039 (Unilever, 2023). The company is investing in renewable energy, sustainable packaging, and low-carbon transportation, while also advocating for climate policies and partnerships with organizations like the Climate Group (Unilever, 2023).

Goal 17: Partnerships for the Goals

Unilever recognizes the importance of partnerships in achieving the SDGs (Unilever, 2023). The company collaborates with governments, NGOs, and other businesses to drive sustainability initiatives (Unilever, 2023). For example, its partnership with the World Food Programme supports nutrition and livelihood programs in vulnerable communities (Unilever, 2023).

Evaluation of Unilever’s SDG Efforts

Unilever’s commitment to the SDGs is commendable, and the company has made significant progress in addressing these goals. However, some critical evaluation points should be considered:

Successes

1. Reduced Environmental Impact: Unilever has made substantial reductions in its environmental footprint, with notable achievements in water and waste reduction (Unilever, 2023).
2. Empowering Women: Unilever’s initiatives to empower women in its workforce and supply chain align with SDG 5 (Gender Equality) (Unilever, 2023). The company has made progress in increasing the representation of women in leadership roles (Unilever, 2023).
3. Partnerships: Unilever’s collaborations with various organizations demonstrate its commitment to SDG 17 (Partnerships for the Goals) (Unilever, 2023). These partnerships have allowed the company to leverage its resources and expertise for maximum impact (Unilever, 2023).

Challenges

1. Supply Chain Transparency: While Unilever has made strides in sustainable sourcing, there is room for improvement in supply chain transparency. Ensuring the traceability of raw materials and addressing potential human rights issues remains a challenge.
2. Climate Targets: Achieving net-zero emissions by 2039 is an ambitious goal, and Unilever faces challenges in transitioning its entire value chain to renewable energy sources and reducing emissions in manufacturing and distribution.
3. Consumer Awareness: Despite its sustainability efforts, consumer awareness of Unilever’s commitment to the SDGs and its individual brands’ sustainability initiatives could be improved. Better communication and marketing strategies are needed to convey these messages effectively.

Stakeholder Analysis

Unilever’s stakeholders include customers, employees, investors, suppliers, communities, and advocacy groups. Managing stakeholder interests can be complex, as their priorities may sometimes conflict. Here is an analysis of potential conflicts and suggestions for improving stakeholder relationships:

Customers

Conflict: Customers may prioritize affordability over sustainability, leading to conflicts when Unilever raises prices to cover sustainability costs.

Improvement: Unilever can implement transparent pricing strategies and offer incentives for sustainable choices, ensuring that affordability remains a priority.

Employees

Conflict: Employees may demand higher wages and better working conditions, potentially increasing production costs.

Improvement: Unilever should invest in fair labor practices, provide opportunities for skill development, and engage in open communication with employees to address concerns.

Investors

Conflict: Some investors may prioritize short-term profits over long-term sustainability investments.

Improvement: Unilever should continue to demonstrate the financial benefits of its sustainability efforts and engage with socially responsible investors.

Suppliers

Conflict: Suppliers may resist sustainability requirements that increase their costs.

Improvement: Unilever can work collaboratively with suppliers to help them transition to sustainable practices, providing guidance and incentives.

Communities

Conflict: Communities may oppose Unilever’s operations if they perceive negative environmental or social impacts.

Improvement: Unilever should engage with local communities, conduct environmental impact assessments, and invest in community development initiatives.

Advocacy Groups

Conflict: Advocacy groups may pressure Unilever to adopt more aggressive sustainability measures.

Improvement: Unilever should maintain open dialogue with advocacy groups, address their concerns, and collaborate on initiatives that align with its sustainability goals.

Sustainability Marketing Practices

Unilever employs various sustainability marketing practices across its brands:

Sustainable Pricing

Unilever has introduced sustainable pricing models for some products, such as Fair Trade-certified goods. These pricing strategies support SDG 12 (Responsible Consumption and Production) by promoting ethical consumer choices.

Innovation

The company invests in product innovation to reduce environmental impact. For instance, its “Love Beauty and Planet” brand focuses on eco-friendly packaging and sustainable ingredients, contributing to SDG 12 (Responsible Consumption and Production).

Logistics

Unilever has made strides in improving its supply chain logistics to reduce emissions and waste, aligning with SDG 13 (Climate Action) and SDG 12 (Responsible Consumption and Production).

Communication

Unilever communicates its sustainability initiatives through marketing campaigns, highlighting its commitment to the SDGs. However, there is room for improvement in conveying the impact of these initiatives to consumers.

Critical Evaluation and Recommendations

Unilever’s sustainability efforts are laudable, but there are areas for improvement:

1. Supply Chain Transparency: Unilever should enhance supply chain transparency to address potential human rights issues and ensure the traceability of raw materials.
2. Climate Targets: Achieving net-zero emissions by 2039 is ambitious. Unilever should accelerate efforts to transition to renewable energy sources and reduce emissions in manufacturing and distribution.
3. Consumer Awareness: The company should invest in more effective communication and marketing strategies to raise consumer awareness of its sustainability initiatives and their alignment with the SDGs.
4. Stakeholder Engagement: Unilever should continue to engage with stakeholders, addressing conflicts and collaborating on sustainability initiatives that benefit all parties.

In conclusion, Unilever’s commitment to sustainability and alignment with the UN SDGs make it a noteworthy example in the FMCG sector. While the company has made significant progress, there are challenges to overcome, and ongoing efforts are needed to achieve its sustainability goals and foster positive stakeholder relationships.

References

Kotler, P., Armstrong, G., Harris, L., & Piercy, N. (2018). Principles of Marketing (8th ed.). Pearson.

Unilever. (2023). Sustainability Report 2023. Unilever. Retrieved from [URL]

FREQUENT ASK QUESTION (FAQ)

Q1: What is Unilever’s strategic positioning in the FMCG sector?

A1: Unilever’s strategic positioning in the FMCG sector is characterized by its commitment to sustainability through the “Sustainable Living Plan.” This plan outlines the company’s goals to improve health and well-being, reduce environmental impact, and enhance livelihoods for millions of people. Unilever’s competitive advantage lies in its proactive approach to sustainability and social responsibility, which has strengthened its brand image and market position.

Q2: How does Unilever contribute to the United Nations Sustainable Development Goals (SDGs)?

A2: Unilever actively aligns its sustainability efforts with several SDGs. For example, it promotes sustainable agriculture and food security (SDG 2), enhances health and well-being through its products (SDG 3), champions gender equality within its workforce and supply chain (SDG 5), and focuses on responsible consumption and production (SDG 12). The company is also committed to climate action (SDG 13) and engages in partnerships for the goals (SDG 17).

Q3: What are the key success factors in Unilever’s sustainability efforts?

A3: Unilever’s success in sustainability efforts can be attributed to its reduced environmental impact, empowerment of women in its workforce and supply chain, and collaborative partnerships with various organizations. These factors align with specific SDGs and demonstrate the company’s commitment to achieving sustainable development goals.

Q4: What are some challenges Unilever faces in its sustainability journey?

A4: Unilever faces challenges such as enhancing supply chain transparency, meeting ambitious climate targets (e.g., achieving net-zero emissions by 2039), raising consumer awareness of its sustainability initiatives, and managing stakeholder conflicts and priorities. Addressing these challenges is crucial for further advancing its sustainability goals.

Q5: How does Unilever manage stakeholder relationships in the context of sustainability?

A5: Unilever manages stakeholder relationships by engaging with customers, employees, investors, suppliers, communities, and advocacy groups. It strives to address conflicts and collaborate on sustainability initiatives that benefit all parties. Transparent pricing strategies, fair labor practices, and open dialogue with stakeholders are some of the approaches Unilever employs to maintain positive relationships.