The Effect of Product Diversification on Sales Performance: in The Case of Unilever

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Addis Ababa University


Product diversification is among the important company strategy that has powerful effect on sales performance. The objective of this study is to analyse the effect of product diversification on sales performance in the case of Unilever. The sample populations of the study were cosmetic beauty and personal care retailer shops in Addis Ababa. Quantitative research approach and non-probability convenience sampling had been adopted in selecting a sample size of 127. Data were collected using structured questionnaire and analysed using SPSS 20 and descriptive research design was used. The results of the study revealed that product diversification have a relationship with sales performance of beauty and personal care retailers. Therefore, It is essential for Unilever to pay more attention in increasing their product diversification practice specifically should pay more attention to the activities and means of product attributes since the study results showed a weakness on some of contributors of product attributes (Quality), in influencing the sales performance of both the retailers and the company as a whole. Finally the researcher is recommended to Unilever is that the strategic impact of product diversification is best observed when they are designed or built in strategic plan for all stakeholders in the business area, coordinated with other marketing tools and integrated with the business strategy.



Product Diversification, Breadth of diversification, Depth of diversification,