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26 <strong>Unilever</strong> <strong>Annual</strong> Review 1998 Business Overview<br />

Research and development expenditure £ million<br />

543<br />

94<br />

585<br />

95<br />

600<br />

96<br />

546<br />

97<br />

556<br />

98<br />

Technology & Innovation<br />

The key priority <strong>of</strong> our research and development facility is to add<br />

value to our business. It aims to do this by anticipating and <strong>meeting</strong><br />

consumer <strong>needs</strong>, and doing so more successfully than our competitors.<br />

Our research and development teams are based in six state-<strong>of</strong>-the-art<br />

laboratories, complemented by a network <strong>of</strong> 71 innovation centres. In<br />

1998, their work paved the way for the successful launch <strong>of</strong> many new<br />

and improved products. Our innovative ice cream snack, Winner Taco,<br />

uses ingenious – and patented – manufacturing processes. It was<br />

developed through cross-border team-work and supported by<br />

<strong>Unilever</strong>’s Italian ice cream innovation centre and our United<br />

Kingdom research laboratory. In the United States, our Chicago<br />

innovation centre played an important role in the development <strong>of</strong><br />

ThermaSilk, our new hair care range for enhancing heat-dried hair.<br />

Technology and innovation is boosting the quality and cost<br />

effectiveness <strong>of</strong> <strong>Unilever</strong>’s manufacturing and supply chain. For<br />

example, improvements to our washing powder manufacturing<br />

processes in Brazil have allowed a 50% cut in capital and raw material<br />

costs. This technology has allowed us to launch a new competitivelypriced<br />

brand called Ala. We are also using technology to better meet<br />

changing consumer <strong>needs</strong>: in South East Asia and India, for example,<br />

we have developed smaller sizes <strong>of</strong> our products. This is allowing<br />

consumers to enjoy the same high quality branded products at a price<br />

they can more easily afford.<br />

One <strong>of</strong> <strong>Unilever</strong>’s major strengths is its proven ability to turn<br />

international resources to local advantage. To this end, we have rolled<br />

out a new Company-wide research and development management<br />

system called Innovation Process Management. This introduces a<br />

common language for all our consumer goods businesses,<br />

incorporating the same processes, definitions, s<strong>of</strong>tware and disciplines.<br />

This allows regional managers to complement their local<br />

understanding with cutting edge information and insights from<br />

“<strong>Unilever</strong>’s global network <strong>of</strong> research laboratories and<br />

innovation centres works closely with the business to<br />

develop products that meet the <strong>needs</strong> and aspirations<br />

<strong>of</strong> our consumers...”<br />

Our new any-time ice cream snack Winner Taco has been successfully<br />

rolled out throughout Western Europe. Patents protect the product’s<br />

ground-breaking manufacturing processes, which include using infra-red<br />

heaters to s<strong>of</strong>ten and fold the wafers.

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