ICOMBEST 2021

International Conference on Management, Business, and Technology

“Post-Pandemic Economic Recovery: Business, Management and Technology”
Management Study Program, Faculty of Economics and Business, University of Jember, Indonesia

The Impact of Consumer Behaviour Megashift on

Unilever’s Product Strategy during COVID-19
Crisis
Annissa Nur Imani Fithry1*, Muhammad Irhas Zulfani Putra Hariyanto2, Elok
Sri Utami3
1
Faculty of Economics and Business, University of Jember, Jember, Indonesia
2
Faculty of Economics and Business, University of Jember, Jember, Indonesia
3
Faculty of Economics and Business, University of Jember, Jember, Indonesia
*
Corresponding author. Email: [email protected]

ABSTRACT
The Covid-19 pandemic has made many changes. The changes that rapidly occur, resulting in the consumer's
behaviour change in obtaining goods and services. Unilever is a global consumer goods corporation that
manufactures everyday items such as soap and food. It is one of the oldest multinational corporations, with
products sold in over 190 countries. During the Covid-19 outbreak, demand for products and services has
plummeted, and Unilever has reacted strongly to the problem. This study aims to explore how Covid-19 affected
Unilever and how Unilever improved the company's welfare. The research method used is descriptive. Data were
collected from news articles, websites, and other reviews. To summarize the facts, Unilever is mostly unaffected
by the Covid-19 epidemic because most of its products are considered needs and are widely recognized.

Keywords: Consumer Behaviour, Unilever, Product Strategy, Covid-19, Impact

1. INTRODUCTION
1.1. Literature Review
It is well known that during the start of 2020, the
The International Monetary Fund (IMF)
world is facing a new pandemic called 2019-nCov
anticipated 4.9 percent global growth in 2020, 1.9
infection. According to World Health Organization
percent lower than the World Economic Outlook
(WHO), this case began on December 31, 2019, in
(WEO). The unexpected covid-19 and total national
Wuhan City, Hubei Province, China. This COVID-19
lockdowns by some nations affected the decline.
pandemic continues to grow and progress quickly and
Furthermore, China's second-largest production
has spread beyond the Wuhan area and other countries.
business, often the primary source of supplies,
Unilever is the world's largest manufacturer of fast-
reported a 6.8 percent decrease in the first quarter of
moving consumer products. Every day, two billion
2020 due to closed borders. These lockdown tactics
people use the goods as Unilever provides their
have also resulted in teleworking and telecommuting,
consumers with the chance to create a better future.
which have disrupted businesses and limited demand
Unilever's mission as a food and consumer goods
and supply.
manufacturer (FCMG) is to assist every life on Earth
in making sustainable living a norm. What impacted the economy's demand and supply
because some items had less need and required less
Unilever is regarded as a high-ranking FMCG
supply. However, while the costs stayed constant, the
firm, with over 400 brands and many product sectors
earnings decreased. When the market falls, the fees
worldwide. The firm was formed in 1930 and has since
involved will make consumers and investors
become one of the world's oldest manufacturers of
disinterested in participating. Furthermore, some
consumer products. Margarine Uni and Lever
businesses must make incorrect decisions by lowering
Brothers, a British soap manufacturer, joined
staff numbers to save costs and protect their firm from
Unilever, a worldwide corporation that produces many
loss. The epidemic also impacted public health and the
everyday goods. The firm has developed food and
international community, impacting economic
drinks, beauty and personal care, home care, cleaning
development policies, commerce, travel, and health.
agents, personal care, refreshments, and other product
names.

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 International Conference on Management, Business, and Technology 2021
“Post-Pandemic Economic Recovery: Business, Management and Technology”

Our lives have been altered as a result of the Covid- In anticipating changes in shopping patterns that
19 epidemic. Businesses and overseas marketplaces are all online, Unilever Indonesia has created various
will never be the same again. It has an impact on the innovations in the digital field such as Unilever Home
economy in terms of the 36 items' demand and supply. Delivery, a more substantial presence in the e-
Furthermore, when the pandemic's peak passes and its commerce channel, services to answer consumer
long-term influence on human behavior become needs at the professional level through Unilever
evident, additional consumer requirements changes Professional, and the launch of the Sahabat Warung
are unavoidable. As a result, Unilever should be application. Stalls to help stall merchant partners to
prepared to take several actions to address the current stay healthy, safe, and able to continue selling[2].
situation. This study aims to look at the influence of
the coronavirus pandemic on Unilever and customer 1.4. Hypotheses/Research Questions
behavior while purchasing Unilever goods.
Covid-19 is affecting the economy in terms of
1.2. Research Objective product supply and demand. Companies and overseas
markets will never be the same as before. Therefore,
There were four significant changes in consumer Unilever will also be affected by the impact of the
behavior during the COVID-19 pandemic. The first COVID-19 pandemic.
change is a stay-at-home lifestyle. Since the
emergence of the COVID-19 pandemic one year ago, 2. METHODOLOGY
a new lifestyle has emerged in society. This new
lifestyle brings a positive impact, namely the closer The research conducted aims to analyze consumer
ties between family members and establishing a sense behavior on Unilever corporation during the Covid-19
of togetherness. pandemic. The methodology will define the
qualitative, quantitative, data collection method,
According to Maslow's hierarchy of needs research process, and data analysis. The qualitative
pyramid, the second change, returning to the bottom of method approach is to analyze and identify behaviors
the pyramid, is the second transition. Consumer needs that can change the company's economic activity. Data
migrate from the "top of the pyramid" to the "bottom collection is the procedure of gathering information on
of the pyramid." Consumer demands change away a specific topic from targeted variables and sources.
from self-actualization and toward physiological We gathered data from online resources such as the
necessities like food and health. According to Internet website and reused previously collected data.
Youswohady, a trend will emerge due to the public's
need for health and safety, including health and life The data for quantitative methods are collected
insurance [1]. from surveys by another article. The survey form will
consist of multiple-choice the frequency and
Going virtual is the third change. People are percentage of respondents' experience, usage, and
avoiding physical interaction due to the COVID-19 purchase behavior of Unilever products.
epidemic and shifting their activities to virtual or
online. As a result, internet purchasing becomes a
3. RESULTS
viable option for meeting demands. Consumer
purchases change from want-to-need, a phenomenon At the beginning of the Covid-19 case
Yuswohady refers to as "online shop deepening." announcement, consumers started to panic buying.
The fourth change is the formation of an empathic This activity happens when fear and panic influence
society. The emphatic community is because, during behavior leading people to buy more things than
the pandemic, many disasters have occurred. People usual—defined as a herd behavior that occurs when
help each other when their friends are in trouble, consumers buy a considerable amount of products in
recession, death – due to COVID-19 and lay-offs. This anticipation. Factors causing panic purchasing
activity creates a sense of community empathy. behavior include product shortage of products and
uncertainty about the situation, and media exposure or
1.3. Conceptual Framework rumors. A study stated that during the covid-19
pandemic, consumers' decisions to buy products were
Unilever Indonesia observes and responds to significantly influenced by their perception about
considerable growth in demand for cleanliness and increasing goods [3].
healthy goods. Unilever Indonesia introduced items The pandemic has also pushed people to think
with smaller container sizes and lower pricing in about all the expenses they make. Based on the data
anticipation of a decline in customer purchasing power conducted, it is known that consumers in any country,
[2]. especially Indonesia choose to buy goods with cheaper
brands for their consumption. Consumer purchases
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 International Conference on Management, Business, and Technology 2021
“Post-Pandemic Economic Recovery: Business, Management and Technology”

began to shift from "wants" to products that are account for 78.50 percent of the total, while the
"needs." The highest demand is generally in daily remaining categories account for 21.5 percent.
products, groceries, and health products such as
Based on the data collected from The Impacts of
vitamins and herbal supplements. So, we can conclude
Covid-19 on Unilever article by Journal of The
that COVID-19 has made consumer shopping patterns
Community Development in Asia, most of the
online wider [3].
respondents were familiar with the Unilever brand.
Unilever, the London-based consumer products They have used, experienced the products as they are
giant, is not benefiting overall from the coronavirus readily available in their surrounding areas. It
crisis even though many of its soap and hand-washing confirms their awareness of the brand.
brands are seeing increased demand, but significant
Furthermore, Table 2 indicates that people aged
reduction in out-of-home food consumption of ice
20-30 prefer to use Unilever's beauty and personal care
cream and restaurant products [4].
items in their daily lives. It also shows that 118 of the
Table 1. Respondents’ Demographic Profile 130 respondents utilized beauty and personal care
products, 80 purchased home items, 31 purchased
Percentage
Response Frequency water purifiers, and 78 used meals and drinks. We may
(%)
Gender also deduce that the majority of respondents (86%) are
Female 76 58,46 aware of Unilever goods. It confirms their familiarity
Male 51 39,23 with the brand. Unilever goods were evaluated as good
Prefer Not to Say 3 2,31 by 66 percent of respondents, underlining the high
Age quality of Unilever products.
15 – 19 years old 18 13,8
20 – 30 years old 102 78.5 Moreover, we can observe from Table 2 that most
31 – 50 years old 7 5,4 respondents (90 respondents) acquired their daily
51 years old and above 3 2,3 products in local physical stores. During the pandemic,
Ethnicity 26.9 percent of respondents purchased their essentials
Malaysian 70 53,8 from online retailers, 69.2 percent from traditional
Indian 35 26,9
Indonesian 25 19,2 stores, and the remaining 3.8 percent from others.
Employment Status Several 67 respondents thought that Unilever is
Government Sector 7 5,4 unaffected by Covid-19 individuals who continue to
Private Sector 12 9,2 buy Unilever products. The remaining 63, on the other
Self-employed 7 5,4 hand, believed differently, resulting in a loss of market
Unemployed 2 1,5 share because Unilever's average yield did not contain
Source: The Impacts of Covid-19 on Unilever, Journal of The
Community Development in Asia
ingredients capable of preventing the spread of the
coronavirus.
According to Table 1, the majority of responders Table 2 also reveals that most respondents (43.8
were Malaysian female students aged 20 to 30. 76 of percent) spent 0$-30$ on household products, 36.9
the 130 responders are female, 51 are male, and three percent spent 31$-60$, 14.6 percent spent 61$-100$,
do not disclose their gender. Female and male and 4.6 spent 101$ or more. It also shows that adults
involvement rates are 58.46 and 39.23 percent, (42 percent) are the most likely to consume Unilever
respectively. goods, followed by teens (34 percent), elderly persons
The majority of responders are between the ages of (12.4 percent), and children (10.8 percent). Finally,
20 and 30. (78.5 percent). There are 18 responders 99.2 percent of respondents believed that purchasing
between the ages of 15 and 19. (13.8 percent). With a Unilever products is simple. It denotes the ease with
total of 7.7 percent, other respondents are between the which Unilever items are available on the market.
ages of 31 and 50 years old, with 7 and 3 respondents. Through Unilever, customers may meet their daily
nutrition, grooming, and personal care needs to feel
According to ethnicity, 70 percent of respondents healthier and look better. Unilever goods have been
are Malaysians, 35 percent are Indians, and 25 percent verified as safe for everyday use.
are Indonesians. It indicates that Malaysia has 53.80
percent of the responses, India has 35 percent, and
Indonesia has 25 percent.
Moreover, 102 of the 130 respondents are students,
12 are worked in the private sector, seven are engaged
in the government sector, seven are self-employed,
and two are unemployed. It implies that students

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 International Conference on Management, Business, and Technology 2021
“Post-Pandemic Economic Recovery: Business, Management and Technology”

Table 2. Consumer Behaviour of Unilever Products Table 3. The sample sales data from PT Unilever
Indonesia
Perc.
Response Freq.
% Segment Information
Are you familiar with the brand (In Millions of 2020 2019
Unilever? Rupiah)
Yes 130 100
Net Sales 42.972.474 42.922.563
No - -
What products from Unilever that you are aware of? Gross Profit 22.456.990 22.028.693
(Multiple Choice) Segment Result 11.729.556 12.153.766
Beauty and Personal Care 118 38,44 Gross Profit Margin 52,3% 51,3%
Household Items 80 26,06 Source: Financial Report PT Unilever Indonesia [5]
Water Purifier 31 10,1
Food and Refreshments 78 25,4 4. CONCLUSION
Are you aware that you use products from Unilever
every day? During the Covid-19 pandemic in 2020, just like
Yes 86 66,2
No 25 19,2
other industries, Unilever Indonesia started 2020 with
Maybe 19 14,6 optimism and recorded good demand in January and
How would you rate the quality of Unilever February. President Joko Widodo, on the other hand,
products? declared the first verified case of the virus in Indonesia
Excellent 50 38,5 in March. It was quickly followed by a significant drop
Good 66 50,8 in consumption and investment, resulting in a -5.3
Average 10 7,7 percent drop in GDP in the second quarter. In the third
Bad - -
I do not know 4 3,1
quarter, the impact of the pandemic on Indonesian
How do you purchase your necessities during the society became increasingly apparent, with rising
Pandemic? unemployment and declining consumer confidence.
Online Shopping 35 26,9 However, in the third quarter, GDP increased slightly
Physical Store 90 69,2 to -3.5% over the same period a year earlier. In the
Other 5 3,8 fourth quarter, GDP strengthened again to -2.2%,
Do you think Covid-19 has affected Unilever? driven by positive news about vaccine development
Yes 63 48,5
and intensification of subsidy distribution in
No 67 51,5
How much money do you usually spend on households’ Indonesia. Consumer confidence improved in the
items per month? fourth quarter in the range of 85 to 96, from 79, but
0$ - 30$ 57 43,8 remained weak compared to the average level above
31$ - 60$ 48 36,9 100.
61$ - 100$ 19 14,6
101$ and above 6 4,6 To summarize the facts, Unilever is mostly
Which age group uses Unilever products the most? unaffected by the Covid-19 epidemic because most of
(Multiple Choice) its products are considered needs and are widely
Children 29 10,8 recognized. While other firms face a significant
Teenagers 85 43,0 reversal due to the epidemic, Unilever has a diverse
Adults 107 42,8
product portfolio with global usage flexibility in its
Senior Citizens 31 12,4
Is it easy to purchase Unilever products?
brand income, making it feasible to handle the
Yes 129 99,2 problem. However, certain goods may benefit food,
No 1 0,8 and companies must strengthen their tactics to avoid
Source: The Impacts of Covid-19 on Unilever, Journal of brand sales losses.
The Community Development in Asia
Consumers' behaviors during the COVID-19
As we can see from the data sample of sales data pandemic will most likely continue to be used even
from PT Unilever Indonesia below, during pandemic after the pandemic ends. It will change the future of
covid-19 2020, the Company managed to book Rp43 the industry and become a new challenge for business
trillion in net sales, an increase of 0.1% over the same opportunities. And the company needs to understand
period last year. These sales were derived from two the latest trends made by consumers. According to
business segments, Home and Personal Care and global data, some of the leading recent trends that have
Foods and Refreshment, which amounted to Rp30 emerged after the COVID-19 pandemic include the
trillion and Rp13 trillion, respectively [5]. shift to massive use of e-commerce, increased
shopping at one-stop-shop retailers, and accelerated
buying of local product offerings.

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“Post-Pandemic Economic Recovery: Business, Management and Technology”

Unilever also offers a wide range of sanitary goods AUTHORS’ CONTRIBUTIONS

that have been minimally influenced or are unaffected
by the national epidemic. In a couple of months, the All authors contributed to the making of this
virus is changing the consumer products industry in article. Muhammad Irhas contributing to making
real-time, accelerating long-term systemic trends. abstract, generating data for the article introduction
paragraph, arrange the results, and being in charge of
The world is evolving and moving toward more the editing. Annissa contributed to analyzing the data,
meaningful and sustainable modes of consumption, organize the results, and concluding. Mrs. Elok Sri
where people are taking on greater responsibility to be Utami is helping us to supervise our article so the
healthy and clean. It demonstrates their commitment output can be perfect. All authors read and approved
to sustaining a living society. Despite the worldwide the final article manuscript.
epidemic, Unilever has achieved and improved the
livelihoods of millions of people. However, Unilever ACKNOWLEDGMENTS
must continue investing in advertising through product
packagings, such as Dove, Clear, and Sunsilk on We would like to thank Dr. Isti Fadah, M.Si., for
television, radio, and print media. Unilever's social her comments and suggestion regarding our analysis
media presence is limited to its official website, about consumer behavior mega shifts on Unilever's
Facebook, Instagram, and Twitter. A SWOT analysis product during the Covid-19 pandemic and her support
is intended to assist a firm in gaining a comprehensive and encouragement for us to finally made this article.
knowledge of all aspects involved in making a
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