UNILEVER FEATURE

FEATUR

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U N I L E V E R Z I M B A B W E

O ne is a lonely number, unless you’re Unilever, which has always prided itself on being a more customer-focused

organisation than its competitors and was one of the first companies in Zimbabwe to market to consumers directly.

It produces some of the country’s best-known home and personal care products – Lifebuoy soap and Omo Washing Powder, to name just two – and was founded in 1946 by Unilever PLC.

Inspirational Zimbabwean businesswoman Nancy Guzha spearheads the company and is, rightly, very proud of the firm’s recent – and past – successes.

“When Unilever entered the Zimbabwean market in the 1940’s, we were one of the first companies to approach consumers directly,” Guzha told South Africa Magazine. “We sent representatives out to people’s homes with product samples and we were able to encourage the people of Rhodesia – as it was then known – to change their shopping

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Zimbabwe’s economy is slowly coming out of the wilderness, which is great news for firms like Unilever Zimbabwe who “toughed it out” during economic decline and hyperinflation.

By Jane Bordenave

habits by building familiarity with our brands. We were also one of the pioneering companies in a racially divided country to market across the racial divide and reach out to both black and white consumers.”

The strategy worked and was also one of the first examples of marketing seen in the country.

“Unilever Zimbabwe is now known as something of a ‘marketing guru’,” Guzha added. “Through the years, we have made a name for ourselves as something of a training ground in terms of marketing, but it can all be traced back to those early days of door-to-door techniques. It was by allowing consumers to really engage with our brands that we were able to grow into a successful business.”

By the mid 1990s, she said, Unilever Zimbabwe had reached the pinnacle of its success so far - with record turnover and employment figures.

Yet, before the end of the decade, its fortunes had changed dramatically due to the economic meltdown in Zimbabwe. In 1998, the Zimbabwean economy began to contract, resulting in negative growth from 1999 onwards. With the resulting decline in consumer spending, Unilever saw sales drop and was forced to close its factory.

But, it never left Zimbabwe. “Even when we were operating at a loss,

we never closed,” Guzha said. “Our view of Zimbabwe has always been that we are here for the long-term, that one day the economy would recover – and that day is now here. Thanks to the high levels of education in the country and the generally high levels of per capita income, this country will always be a very good market for our products. This is why, even when inflation hit 6 million percent, we stayed put.”

This decision paid off. In February 2009, Zimbabwe moved to a multi-currency system, and the economy began to stabilise. The crisis had taken its toll, however. “As with all enterprises in the country, we really

Unilever Zimbabwe FEATURE

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struggled at first as we had lost a lot of money,” explained Guzha.

Being part of a global organisation allowed the business to recover quickly. “We received a great deal of help from Unilever sister companies – namely Kenya and South Africa, mainly in the form of guarantees, which allowed us to recapitalise our business.”

It was this pan-African network in particular that supported Unilever Zimbabwe through the difficult times. Despite mothballing its own factory due to prohibitive operating costs, the company was able to restructure its supply chain. It began importing ready-made products from Unilever South Africa and Unilever Kenya. Not only did this allow it to continue operating, it enabled Unilever Zimbabwe to regain consumer confidence and brand recognition.

“It was a brilliant, if risky, move,” Guzha said. “I was not in this position at the time, but the leadership who were here made all the right moves, which are now starting to pay off.”

In 2010, Unilever Zimbabwe re-opened its factory and begun producing its own products once again – a magnificent turnaround. “Our plant is running, although it is operating at very low capacity,” Guzha



said. “Our strategy is to steadily invest for the future. We are investing back into our company, but we are doing so cautiously. The cost of restarting a factory that has been idle for several years to full working order is not an amount we are able to spend all in one go. Nevertheless, roughly 50 percent of our current turnover is derived from locally made products, with the other 50 percent is from sales of products imported from South Africa and Kenya.”

The steady recovery of the Zimbabwean economy is once again making it an attractive destination for foreign investors. However, Guzha believes that Unilever’s steadfast commitment to Zimbabwe has helped maintain its success in the country. “In the 2009/2010 financial year, our business grew by over 100 percent. Of course, the recovery of the economy played a significant part in this and GDP is also growing at around eight percent in 2011, but the importance of us not leaving Zimbabwe should not be underestimated.

“No matter what happened in the economy, consumers continued to buy our brands such as OMO detergents,Sunlight washing-up liquid and Stork margarine. We are seeing ever increasing demand and now that our factory has come back online, our products are becoming more widely available locally. We remained in the country and maintained brand recognition amongst consumers and we are now reaping the benefits of that decision. Anyone knows if you go through a hard time with someone, your relationship always strengthens. Our brands are that partner to Zimbabwean consumers and customers – we have an infinitely stronger relationship.”

Mrs Nancy Guzha, Managing Director at the re-launch of Lifebuoy

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Having winning brands also helped. “Consumers continued to be loyal to our brands even when they were not widely available simply because Unilever brands make people’s lives better. Our vision as Unilever is that we work to create a better future everyday which, simply put, means our brands help people to look better, feel better and enjoy life more everyday. To do this, we have to understand our consumers intimately and we are relentless in maintaining a close and mutually beneficial relationship with our customers.”

Unilever is as committed to recruiting local talent and training the local workforce as it is to doing business in Zimbabwe. Guzha, herself was in fact recruited abroad. “At 18, after I finished my A-Levels in Zimbabwe, I moved to the UK for five years. There I studied a BTEC in Agriculture followed a BSc (Hons) in Agricultural Economics and Management at the University of Reading. In my final year of studies, I was recruited by Unilever Zimbabwe at one of the roadshows that they hold in order to try and encourage African talent to return home as business leaders.”

Once she returned home, she entered into a graduate training programme, before joining the company’s marketing department and working her way up.

Guzha is not unusual in this respect, though. Unilever is committed to discovering native African talent and preventing ‘brain drain’, including bringing people back from abroad.

And training is not just for people entering managerial programmes.

“We believe in the need to invest in and train every single person working for us. This is because, while a person may be doing a lower ranking job today, in six months or a year, they may be eligible for promotion. Unilever is a unique employer in that we recognise and nurture both performance necessary to deliver today and potential critical to keep delivering in the future– and we invest in both. So we offer both general and career-path specific training.”

As far as the future is concerned, the main focus is growth and recovery. Strengthening of the Zimbabwean economy is expected to continue, and Guzha expects to see Unilever Zimbabwe mirror its fortunes, but to continue growing ahead of both GDP and competition. “We have a well educated populace and a lot of natural resources and mineral wealth that are not yet being fully exploited, both of which will help Zimbabwe grow as a country. With regards to our growth as Unilever, it is unlikely to continue at 100 percent, however we do expect it to be upwards of 70 percent – not just because of recovery of the economy, but also because we intend to continue being better and faster at recognising and exploiting opportunities in the marketplace.

“It is our commitment to Zimbabwean consumers and customers that has seen us through even the toughest times and it is a commitment that will continue well into the future.”

There is much written in the press about Zimbabwe. Now is a time for optimism and positives. Life there is changing. It is stabilising economically, has ditched its currency in favour of a more stable multi-currency system, and survived the worst period of hyperinflation in modern history. It is now a “hot pick” for savvy investors. END



ABOUT UNILEVER160 million times a day, someone somewhere chooses a Unilever product. It is a world-leading brand, a top maker of packaged consumer goods, and its products are sold in about 180 countries throughout Africa, Asia, the Americas, and Europe. The company’s offerings span several categories, including dressings and spreads; ice cream and beverages; personal care; and home care. Unilever’s vast portfolio boasts a dozen brands that each ring up billions of dollars annually. Best sellers include Hellmann’s mayonnaise, Knorr soups, Lipton tea, Dove and Lux soaps, and Sunsilk hair care.

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