Abstract

The case “Unilever in Africa: Targeting the Bottom of the Pyramid”, talks about the efforts of multinational consumer goods company Unilever PLC (Unilever) to expand and strengthen its market position in the African continent. The case starts out with the history of Unilever and details the company’s initial entry into Africa through various subsidiaries. One of the key subsidiaries was ‘United Africa Company’ (UAC) — through which it sold a wide range of products — which turned out to be highly profitable for the company. After the company divested UAC, it continued its operations through its other subsidiaries and its focus shifted to selling its core products — foods, home care and personal care products — to customers at the Bottom of the Pyramid (BOP) in Sub-Saharan Africa. The case then provides information about Unilever’s strategies to make its products affordable and to ensure their wide distribution. It also delves into Unilever’s future expansion plans through the introduction of products designed for Africans and the augmentation of its manufacturing capability.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Appreciate the business potential at the ‘Bottom of the Pyramid’
• Recognize the capacity for growth in developing nations for multinational companies
• Assess the need for developing innovative products for ‘Bottom of the Pyramid’
• Appreciate the real issues and challenges that businesses face in Africa and explore ways through which they could factor in these while working out strategies

Keywords

Unilever, Bottom of the Pyramid, Multinational, Innovation, Distribution Systems, Africa, Developing Countries, Affordable, Branding, Market Research, Brand Ambassadors, Customer Segmentation, Entry Strategy, Pricing, Marketing Strategy