Professional Documents
Culture Documents
The Company’s factory at Rahim Yar Khan was one of the first industrial units to
be constructed after the creation of Pakistan. As the consumer base expanded
over the years and the Company entered into new product lines like Personal
Products and Margarine, it invested further in the installation of modern
manufacturing facilities including a factory at Karachi. Today, the Company is
using latest state-of-the-art technology for producing high quality products.
In 1995, the Company established a new factory near Lahore to manufacture the
Wall’s range of ice creams, which have become popular within a short time. In
1996, the present group – Unilever UK acquired the Polka Group that produced
ice creams. In 1999, Pakistan industrial promoters (Private) Limited, owners of
‘Polka’ brands of Ice Cream was merged with Lever.
1
Mission Statement:
Vision Statement:
2
3
Introduction - Unilever Pakistan
Incorporated in 1948, we, Unilever Pakistan Limited, are one of the most
prominent multinationals in the country today. We are proud of being a part of
Pakistan’s history, contributing towards the growth and prosperity of the nation,
providing 150 million people with a better future, a better tomorrow. Our passion
for understanding people's concerns and desires, our ability to create products
that fulfill those needs and our skills in getting those products to market drives
our growing success - and has made us one of the world’s leading consumer
goods companies.
The present company has come about through the original Lever Brothers
merging with Lipton (1988), Brooke Bond (1997), Polka Ice Cream (1998),
presently we are operationally merged with Best Foods since 2001. 1982 saw the
introduction of personal products and 1994 the setting up of the Wall’s ice-cream
business, which was a green field exercise.
4
Objectives
To be honest, transparent and ethical in our dealings at all times. Our vision,
mission, values and code of Business Principles are the principal beliefs of our
Company. They must be known, owned and lived by all. We are ambassadors of
Unilever Pakistan both inside and outside of the work place. We take pride in
always speaking positively of our Company. We take care of our personal image,
work environment and assets. We respect individual differences and provide
equal opportunity regardless of gender, ethnic or social background. We are all
professionals; we will treat each other and our external contacts with respect,
regardless of grade or job title.
To win the hearts and minds of consumers. The consumer is the heart and
soul of our business. We obsessively search for new ideas by tuning into what
they feel, what they want and, what they need. Wherever you are, anyone you
meet, is a potential Unilever consumer. Treat them with respect. We ensure
superior quality products and services aiming for zero complaints. Everyone is
empowered to stop poor quality reaching the consumer. Never lose a consumer.
Own the problem, with them back and ensure they feel positively treated.
5
To deliver what they promise. We are responsible for communicating business
objectives to our employees. We all must be clear about business priorities.
Never be afraid to ask. We respect time, we do what we say, and we finish what
we start enthusiastically to achieve growth.
They care about and actively contribute to the community in which they
live. We are good corporate citizens - we care for the environment. We do not
waste resources and materials. We help communities through active involvement
in projects that improve quality of life. Think safety first. We are responsible for
creating a safe, secure and accident free workplace for ourselves and others. We
are aware of all emergency procedures and report safety risks immediately.
6
STRATEGIES
Product Development
Corporate Strategies
Leader in the consumer goods market.
Managing govt relations to influence duty on imports of raw materials and
countering smuggling of competitors goods
7
FINANCE STRATEGIES
8
SWOT ANALYSIS OF THE COMPANY
OPPORTUNITY ANALYSIS
P&G have a lot of opportunities to develop. It has 4 strong points to develop such
as
Dedicated and talented human resources.
Reputation for honesty that won the trust and respect of the suppliers and
customer.
Prudent and conservative management.
Substantial marketing
Legal, Political, And Regularly Factors have a big impact on policies marketing
strategies of P&G. P&G is a global company spread over 24 countries, therefore
tax, import, export policies of each govt. of each country is very different. In each
country P&G have own policies to match with legal of the host countries. This is a
threat for P&G.
OPPURTUNITIES
9
THREATS
Social and cultural factors are both opportunities and threats for P&G. As we
know P&G has a lot of brands, they expertise in both consumer and industrial
sector so they need a huge of employee. How to find brand manager in each
country who can exploit utility of labour force in each country where the company
has a brand? P&G has got that goal. Now P&G is the best place for worker
employee enjoyed working for P&G and it’s an opportunity for them.
COMPETITIVE FACTORS
Competition between companies is a big threat for any company including P&G.
as we know, P&G has produced lot of products in different segments such as
performance segment, price segments, mildness segments which other
companies producing similarly.
P& G manufactured 90 consumer and industrial products in the United States
and sold the leading brands in 14 of the 24 consumer’s product categories in
which the company competed. it is very clear that competitive factors are big
threats for P&G.
10
TECHNOLOGICAL FACTORS.
11
EFE MATRIX
Threats
Product smuggling 0.15 1 0.15
Increase demand for Antibacterial Soaps 0.05 3 0.15
Counterfeit Products 0.10 3 0.3
International Trends 0.05 3 0.15
Local Competition 0.05 4 0.2
Total 1.00 3.10
12
STRENGTHS
WEAKNESSES
13
IFE MATRIX
Weakness
Tall Organization Structure 0.1 2 0.2
High Operating Expenses 0.05 2 0.1
High Cost of Production 0.05 2 0.1
Increasing Number of Small Competitors 0.1 2 0.2
Unbranded Products 0.1 1 0.1
Total 1.00 2.85
14
TOWS ANALYSIS
Strength-S Weaknesses-W
Number of Products Tall Organization
Structure
THE Advance Technology
Supply Chain
High Operating Expenses
High Cost of Production
TOWS Management
Financial Backing Increasing Number of
MATRIX Experience Top
Small Competitors
Unbranded Products
Management
15
SPACE MATRIX
Financial Strength
Net revenue 2.5
Net income 2.5
Total 5.0
Average 2.5
Industry Strength
Competition due to substitute products 4.0
Customer Loyalty 2.0
Total 6.0
Average 3
Competitive Advantage
Environmental Stability:
Less developed countries facing high inflation -2.0
Total -2.0
Average -1.0
16
SPACE MATRIX
Y a x is : 2 .5-0+.5() = 2 .5
X a x is : 3 -1
+ ) (= 2
CA IS
D efen si v e ES C o m p etiti v e
17
BCG MATRIX
?
High +20
Medium 0
Detergents
Low -20
18
GRAND STRATEGY MATRIX
QSPM
RAPID
MARKET
GROWTH
Quadrant II Quadrant I
UNILEVER
WEAK
COMPETITIVE STRONG
POSTION COMPETITIVE
POSITION
SLOW
MARKET
GROWTH
2. Market penetration
3. Product development
4. Forward integration
5. Backward integration
6. Horizontal integration
7. Concentric diversification
19
Integration Intensive
Key Factor Weight AS TAS AS TAS
Opportunities:
Threats:
Integration Intensive
Key Factor Weight AS TAS AS TAS
20
Strengths:
Weaknesses:
21
Task environment
Barriers To Entry:
Before offering any new product, Unilever check the competitors as to what they
are doing in the market and they also check with the consumers; whether they
like the competitor’s product or not, have the product being a success or a
failure. If it was successful, then Unilever should try to introduce and launch a
similar product in the market, but if it was a failure, then they should try to enter
into new markets and segments.
The product has already been launched by the competitor; in this case the
strategies used by the marketing department will be different. In this case,
Unilever will check the response of the competitor’s products, whether thay have
been successful in the market or not, and what was the response of the
consumers, etc. For example, Tapal recently offered Tapal Green Tea, by seeing
the market’s response as well as the consumer’s response, Unilever also
launched Green Tea, while maintaining a good quality tea.
Company’s own Innovation; in this case, if Unilever wants to launch some new
product in the market, and is the first to offer, then they arrange some focus
groups to get the reaction of the customers, and also introduce the product in
samples, again to get the response of the consumers in large numbers in the
market.
22
Potential or Imminent New Entrants:
In the Tea Industry, a new entrant coming in is Tetley, which is introduced by the
Lexon Group of Companies. Lexon Group is quite a big group, and cannot be
avoided at present. At the moment, Tetley has only been launched in Karachi,
and their advertising is low in frequency as well, maybe due to less resources
and also due to the fact that it has just entered the market, and is thus in the
introductory stage in the product life cycle. Its growth opportunity is very large as
it is backed by a big group, and thus it’s presence in the market should not be
avoided.
In the Ice Cream industry, a new entrant has just emerged, called HICO.
Although it’s small in size, and has only been launched in Lahore at the moment,
but it can be very tough and again its growth opportunity is very large as well.
Although HICO has not advertised as yet, but it is receiving a very good
response from the consumers.
The new entrants have focused on major cities of the country, i.e. focusing city
wise and in urban areas of Pakistan first. At the moment, they have very limited
strategies and low advertisements due to limited resources and links as they are
still in the introductory stage in the PLC. But they may have more potential in
growing due to the strong backing of Lexon Group for Tetley. These both haven’t
done or applied any aggressive strategies as yet but it still cannot be avoided.
In the future, HICO might, for example, introduce new flavours, might offer lower
priced ice creams, etc. What Unilever failed to achieve successfully, HICO might
try to avail and focus on that opportunity and might become successful at it.
23
Bargaining Power of Customers
Customers:
Most of their customers are from lower class, middle class and high class in both
rural and urban areas of the country. They try to focus everyone and try to cater
to everyone’s needs and wants. The rural areas are larger in size and number,
and there are about 65% of the people living in major cities of Pakistan.
No bargaining power is given to the consumers, as the products are retail priced
based. Three factors are very important in setting the price of the product:
customers, competitors and profit. They first check with consumers what they
perceive the price to be, then they see the competitors - how they have priced
the product and then they see how much profit they will be making at that certain
price.
24
Threats of substitute product & services
They both may have competition against each other, but the profits and revenues
generated will be for the benefit of the company, i.e. in both the cases the
company’s revenue will increase, and only problem for the respected brand
managers of the products. Larger sales volume of one brand will balance the
lower sales volume of the other brand.
Among the ice cream segment, Wall’s substitutes in the market may be Kulfi,
either in a cup, stick or in a wrapping paper, offered in many Sweet Shops as
well as Ice Cream Carts (Mithai Shops located throughout the major cities and
Pakistan as well as rural areas).
Among the detergent’s segment, many rural and urban women at homes use
normal and locally made washing soaps to wash off their clothings. Many rural
women do not use washing powders as detergents due to the high price of
washing powder.
Among the toothpaste segment, many people use Miswaak to keep their teeth
clean and fresh throughout the day. Or they may even use tooth powder such as
Dentonic rather than using toothpaste.
25
Penetration:
These substitutes are already in the market and have made their mark as good
substitutes to the products of Unilever, and they have a good position at the
moment in the current market, and thus have already penetrated.
26
EVALUATING THE BUSINESS STRAGEY
Performance Test:
Unilever main competitor is P& G its financial position is good, the market
position is average and technological performance is also average.
Consistency Test
a. Buyer power and trends in demand for product is expected to change in five
years, although Unilever strategy is consistent, but it may need some changes.
c. Likely Entrants would also increase but Unilever believes it cannot affect
their market share as they have a strong position in mind of consumers.
27
Internal Resources & Capabilities
Unilever Human resource department make sure that they hire the right person
for the right job at the right time. It hires qualified people and are giving training
and does career development for employees.
Unilever has to keep pace with the changes in technology and therefore are on a
road of continuous improvement.
Unilever is a well reputation the market, having offices internationally and
occupying a strong position in the minds of consumers.
Competitive Advantage
Economic Advantage: P&G make sure that its products are available at all
outlets. It is also occupies a major market share.
Disadvantage: P&G has a weak cost structure and not occupies a strong image
like Unilever.
28
Conclusion & Recommendation
After the analysis of the IEFM and EFEM, we see that the company is
above average. With respect to SPACE and GRAND matrix analysis,
Unilever is placed in aggressive quadrant and it can follow any of the
strategies e.g. market penetration, forward integration, backward
integration etc.
29
Time Frame:
Responsibility
30