Table of Contents

Table of Contents........................................................................................1 Unilever Pakistan Ltd:.................................................................................2 Meeting consumer needs............................................................................4 Brand benefits............................................................................................4 PU P!"# $ P %&C%PL#"..............................................................................4 !B'#CT%(#".................................................................................................) "T *T#+%#"................................................................................................) B *&,"......................................................................................................M* .#T%&+ M%/ 4Ps....................................................................................#0 "UCC#"" 1*CT! ................................................................................2 "3!T *nal4sis..........................................................................................15 #1# Matri6.................................................................................................11 %1# Matri6..................................................................................................12 %ndustr4 Classification:..............................................................................12 C!&CLU"%!&............................................................................................14 #C!MM#&,*T%!&"................................................................................1)

INTRODUCTION OF UNILEVER PAKISTAN Ltd.

Unilever is one of the world's leading suppliers of fast moving consumer goods across Foods and Home and Personal Care categories. Unilever's portfolio includes some of the world's best known and most loved brands. Unilever Pakistan Ltd: Unilever Pakistan !".#$ Unilever e%uit&' is the largest F(C) compan& in Pakistan* as well as one of the largest multinationals operating in the countr&. Unilever Pakistan Ltd.* a subsidiar& of the Unilever )roup is operating in Pakistan since +,#-. .he Compan&/s main business lines are 0oaps and 1etergents* Personal Products* Cooking 2ils and Fats* Packed .eas* and 3ce Creams. Unilever has a long list of brands such as 0urf* 4im* 5in* Lifebuo&* 0unlight* Lu6* 5e6ona* 0unsilk* Close7Up* 8lue78and* 1alda* Planta* Lipton/s 9ellow Label* .aa:a and 5ichbru* 8rook 8ond/s 0upreme and ;en&a (i6ture etc. which are common household names in Pakistan. .he Compan&/s factor& at 5ahim 9ar ;han was one of the first industrial units to be constructed after the creation of Pakistan. <s the consumer base e6panded over the &ears and the Compan& entered into new product lines like Personal Products and (argarine* it invested further in the installation of modern manufacturing facilities including a factor& at ;arachi. .oda&* the Compan& is using latest state7of7the7art technolog& for producing high %ualit& products. 3n +,,=* the Compan& established a new factor& near Lahore to manufacture the >all/s range of ice creams* which have become popular within a short time. 3n +,,?* the present group @ Unilever U; ac%uired the Polka )roup that produced ice creams. 3n +,,,* Pakistan industrial promoters Private' Limited* owners of APolka/ brands of 3ce Cream were merged with Lever. 3n order to leverage the s&nergies of Unilever/s international brand strength* market edge and corporate image* Lever 8rothers Pakistan Ltd. changed its name to Unilever Pakistan Ltd.* in <ugust B""B.

Background of Unilever Pakistan Ltd Co.

C Unilever Pakistan Ltd.* a subsidiar& of the Unilever )roup is operating in Pakistansince +,#-. C .he Compan&/s main business lines are 0oaps and 1etergents* Personal Products* Cooking 2ils and Fats* Packed .eas* and 3ce Creams. C Unilever has a long list of brands such as 0urf* 4im* 5in* Lifebuo&* 0unlight* Lu6* 5e6ona* 0unsilk* Close7Up* 8lue78and* 1alda* Planta* Lipton/s 9ellow Label* .aa:a and 5ichbru* 8rook 8ond/s 0upreme and ;en&a (i6ture etc

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O ! Vision
D.ouching Hearts* Changing Lives.E

O ! "ission

D(ission 3s .o <dd 4italit& .o Life. >e (eet Fver&da& Geeds For Gutrition* H&giene and Personal Care >ith 8rands .hat Help People Feel )ood* Look )ood and )et (ore 2ut 2f Life.E Adding Vitality to life: +=" million times a da&* in +=" countries* people use our products at ke& moments of their da&. 3n the future* our brands will do even more to add vitalit& to life. 2ur vitalit& mission will focus our brands on meeting consumer needs arising from the biggest issues around the world toda& @ ageing populations* urbanisation* changing diets and lifest&les.

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Meeting consumer needs

>e recognise that the world in which we operate is changing. Consumers are increasingl& bringing their views as citi:ens into their bu&ing decisions* demanding more from the companies behind the brands. .he& want companies and brands the& trust.

Brand benefits
>e see growing consumer need for:

a health& lifest&le more variet&* %ualit&* taste and enHo&ment time* as an increasingl& precious commodit&

Helping people to feel good* look good and get more out of life will enable us to meet these needs and e6pand our business. >e are also open and transparent in the information we provide on our products* as well as all advertising and marketing material @ and an& claims we make are supported b& scientific evidence. 3n other words* if we sa& our products will add vitalit& to life* we mean it.

PURPOSE & PR !C PLES

Al#ays #o!$ing #it% integ!ity Conducting our operations with integrit& and with respect for the man& people* organisations and environments our business touches has alwa&s been at the heart of our corporate responsibilit&. Positi&e i'(a)t >e aim to make a positive impact in man& wa&s: through our brands* our commercial operations and relationships* through voluntar& contributions* and through the various other wa&s in which we engage with societ&. Contin o s )o''it'ent >e're also committed to continuousl& improving the wa& we manage our environmental impacts and are working towards our longer7term goal of developing a sustainable business. Setting o t o ! as(i!ations 2ur corporate purpose sets out our aspirations in running our business. 3t's underpinned b& our code of business Principles which describes the operational standards that ever&one at Unilever follows* wherever the& are in the world. .he code also supports our approach to governance and corporate responsibilit&. 14

*o!$ing #it% ot%e!s >e want to work with suppliers who have values similar to our own and work to the same standards we do. 2ur 8usiness partner code* aligned to our own Code of business principles* comprises ten principles covering business integrit& and responsibilities relating to emplo&ees* consumers and the environment.

OB"EC# $ES
To( P!io!ity + F lfil'ent of ) sto'e!,s needs: DUnilever aims to continuousl& improve the environmental performance of their process and their brands to achieve sustainable profitable growth as their consumer e6pects them to fulfil their needs with brands that have low environmental impact.E .o be honest* transparent and ethical in our dealings at all times. .o win the hearts and minds of consumers. .o deliver what the& promise. .o become empowered leaders who are inspired b& new challenges and have a bias for action. .o believe in trust* truth and outstanding teamwork. .he& value a creative and fun environment. .he& care about and activel& contribute to the communit& in which the& live.

S#R%#E& ES
P!od )t De&elo('ent Unilever continuousl& work on improving product %ualities and features to capture the market. 3t anal&:es the demand to check whether the product is profitable or not so that if the product is not it should be discontinued. 3t keeps an e&e on the competitor/s products in order to become the market leader of certain product. Co!(o!ate St!ategies Leader in the consumer goods market. (anaging govt relations to influence dut& on imports of raw materials and countering smuggling of competitors goods - 'an Reso !)e St!ategies (anaging emplo&ee recruitment and placement to put the right person for the right Hob. 5eplacement Planning. Fmplo&ee rotation in the department. Fmplo&ee training. 5emuneration surve& for salar& adHustments of emplo&ees.

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Finan)e St!ategies (aintain compan& finance operations with in the resources. (aintain working capital keeping stock debtors low. <dhere strictl& to the 3C<P accounting practices and laws. .a6 management to gain legitimate advantages lessening the burden. Fnsure internal control through internal audit. 3ntroduction of 3. and implementation. Fnsure sales revenue generation meet targets. (aintenance of purchasing function

"e!ge!s . A)/ itions Lever has successfull& completed an ac%uisition of Pakistan 3ndustrial promotional pvt' limited* manufacturers of polka in +,,,. .he compan& completed an merger with 8rooke 8ond 88' Pakistan last &ear* where each 88 shareholder received one lever share for ever& #.I 88 shares ..he merger has resulted in consolidation of distribution channels* thus* reducing operating costs for the compan&. P!o(osed St!ategies: +. UG3LF4F5 can capture untapped rural markets and markets of developing nations b& using its state of the art facilities J technolog&. 3nternational brand strength is plus point which will be proved helpful while positioning. B. UG3LF4F5/s Commitment to business ethics* safet&* health* environment and communit& can be proved helpful in order to satisf& h&giene conscious customers. UG3LF4F5 should focus more on %ualit& of goods. I. Unrelated diversification is a risk& decision to be taken. Lo&al customer is the maHor power to cope up with after effects of this decision. #. Customers in rural areas and in developing countries usuall& have low income level. UG3LF4F5 should reduce its costs in order to capture that uncovered markets effectivel&. =. UG3LF4F5 can use its international brand strength and wide network of retail outlets in order to compete with organi:ed and unorgani:ed pla&ers of market. ?. 0trategic alliance is showing the weakness of UG3LF4F5 in particularl& manufacturing area which the competitors do not hold. UG3LF4F5 should its production capacit& in order to compete in market and to reduce competitor/s threat. !. 3f UG3LF4F5 can obtain cheaper raw material* it can reduce cost of goods manufactured.

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BR%!'S
Food b!ands 0!oo$e 0ond A1 8lue 8and Flora Lipton Pearl 1ust 0upreme >alls

-o'e )a!e b!ands Comfort 5in 0urf F6cel Pe!sonal )a!e b!ands Clear Closeup Fair J Lovel& Lifebuo& 0hampoo Lifebuo& 0oap Lu6 Ponds 5e6ona 0unsilk

N t!ition -ealt%2 %ygiene . bea ty Unile&e! Foodsol tions Raabta Cons 'e! Ca!eline

M%R(E# !& M ) *Ps

PRODUCT: 14

5egional 8rand .eams at 8angkok meets and decides where to launch which product. .he feasibilit& report is prepared and market insights are discovered. (arket insights should match Local 3nsights. 3n the report even the people/s actions while washing are also observed and presented in the report. .his enables to present a full fledge information about the attributes* cultural values* and motions of a particular communit&* region* or a nation* ma& it be washing pattern* economic condition* or spending pattern. PRICE: 0urf F6cel is available in different si:es and %uantities in the market for different prices. 3ts competitors in its upper7class segments are <riel which is a product of PJ) and 8rite .otal which is a product of Colgate7Palmolive Laksons group'. 3ts market7oriented statement is D1aagh GH3 to seekhna GH3E. .he compan& has offered +kg of 0urf e6cel in the market for +B" rupees. 8esides that it is also available in the market in sachets pricing from =7+" rupees and in K kg for about !" rupees. 3t is a %ualit& oriented product providing value to their customers. 3t is priced for ever& consumer according to his or her financial status. 3n B""= Unilever adopted one of the price7adHustment strategies which was discount J allowance pricing as the& offered +kg of 0urf F6cel for +"= rupees. .hrough this strateg& promotional pricing strateg& also came in progress as their product was promoted through it and the sales increased rapidl&. 8ut as its competitors also reacted for this change through customi:ing their offerings and price cuts 0urf F6cel was finall& focused towards price increases. 8esides that 0urf F6cel pricing strateg& have also been to provide value and recentl& the compan& improvised their strateg& as the& focused toward more promotion through campaigns. 8eside that the compan& has also implemented product line pricing strateg& as their offerings are in different %uantities along with different prices in the market for 0urf F6cel. 0everal offers have also been introduced b& <riel and 8rite in the market using Promotional* discount* and ps&chological pricing strategies and for that 0urf F6cel have also responded efficientl& through its strategies. DISTRI0UTION PRICIN3 STRATE34: Unilever distributor ). L L(. Unilever 3(. >here* ).M )eneral .rade general stores* ;ir&ana stores* (edical and )enaral stores' L(.M Local (odern .rade 0uper stores such as <gha:* Gaheed* 17(art' 3(.M 3nternational (odern .rade departmental storesLH&per (arket such as (akro'. PRO"OTIONS: 0ales Force in 0urf F6cel is divided into I t&pes: )eneral .rade general stores* ;ir&ana stores* (edical and )enaral stores'* Local modern trade super stores such as <gha:* Gaheed* 17(art'* and 3nternational (odern trade Large houses such as (akro'. (erchandising 1rives: 3t depends on the Channel the team is choosing to communicate it/s through annual pricing plan

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product surf e6cel'. .he& ma& ask the retailer to have at least =" pieces of surf in their shelves along with P20 (aterials posters* banners* shelves* etc' 2utdoor (edia <genc& is appointed for the advertising campaigns via billboard and signboards. .hese 2(< classif& different regions under 0trata* ranging from + to ?.0trata + includes cities like ;arachi and Lahore* 0trata B includes cities with comparativel& less densit& and so on. .he& ma& select sites as per the following e6ample: 0trata + would have ?"$ advertising sites. 0trata B would have B"$ advertising sites. 0trata I would have B"$ advertising sites. 0trata # nil 0trata = nil 0trata ? nil PLACE: (ind 0hare is the (edia 8u&ing House for Unilever in Pakistan. .he airtime is purchased depending on the relative price and numbers of spots the brand is getting. .hese spots must be enough so that 5ecall value is created within the customer/s mind. Fre%uenc& of target market is also anal&:ed. 3n Flectronic media* especiall& .elevision P.4 and <.4 have the biggest countr&wide viewership. >hereas in Private 0ector Hum tv currentl& is the biggest .v production and broadcasting house. .he selection of Print and Flectronic (edia depends again on the nature of product and the marketing strategies. .he 5atio is divided for print and electronic (edia in the beginning of the campaign. (oreover retailing consumer products is Unilever/s bread and butter. .he compan& has the biggest retail reach in the countr& with the compan& servicing =""*""" outlets* of which =" per cent are covered direct b& the compan&/s distributors and the balance through wholesalers. For compan& the main business is done b& )eneral .rade as compared to 3(. or L(.* therefore different incentives and preferences are given to general retailers* wholesalers and distributors.

(E+ SUCCESS ,%C#OR

Res(onsible Ca!e Caring for each other* our factor& and the environment O(e!ational Effe)ti&eness Producing the right goods* at the right time* with the right %ualit& at the right cost *in t%!o g% Peo(le 2ur success will onl& be achieved through highl& motivated and effective people Inno&ation . Ca(ability De&elo('ent 5ight first time innovation is essential to ensure the future of our business C sto'e! and S ((lie! "anage'ent 0atisf&ing our customers through effective management of the total suppl& chain

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Enabling Syste's and P!o)esses F6cellence in our 3. s&stems and skills are ke& to t7e success of our factor4

S-O# %nal.sis
St!engt%s: Customer/s Lo&alt&. Latest state of the art facilities and technolog& for producing high %ualit& products. 3nternational brand strength. Committed to business ethics* safet&* health* environment and communit&. UG3LF4F5/s ke& competitive advantage over other market participants is the retail reach of the compan&. UG3LF4F5 services =""*""" outlets with =" $ through direct distribution and remaining via wholesalers. UG3LF4F5 is enHo&ing market edge of #+$ in F(C) industr&. UG3LF4F5 is at number one in ice cream segment and having +#$ market share all over the globe. *ea$nesses: .he biggest challenge in safeguarding market position is to become cost leader. 2perational comple6it& due to a large number of products in portfolio and due to diverse work force. 0trategic alliance with other small mills for manufacturing purpose is the weakness as well as a threat for UG3LF4F5. <lthough UG3LF4F5 claims that it is a part of its cost reduction strateg& but it can not hide the realit& that it shows weakness of UG3LF4F5. O((o!t nities: (arkets of developing countries can be proved a profitable segment because people are consumption oriented rather than saving or investment oriented. UG3LF4F5 can gear up its market share in the untapped rural market. 1iversification in unrelated business.

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 5apid increase in world population. >orld population is set to grow b& -""m in B"+" and almost all increase will be in developing countries. T%!eats: F(C) market is highl& responsive to economic conditions* inflation and social disruptions resulting in variations in sales revenues and demand for the compan&. P J ) is the maHor competitor and threat for UG3LF4F5. 2ther organi:ed pla&ers are Gestle and 5 J 8. UG3LF4F5 is facing intense competition from unorgani:ed pla&ers i.e. cheaper smuggled products and Chinese products. <ccording to industr& source* #"$ of tea consumed locall& and a large portion of HPC products are smuggled into the countr&. Legal* political and regulator& factors of host countr&. For e6ample* supportive )overnment policies for attracting F13* +$ ta6 rate on corporate profit and inabilit& of Pakistan )overnment to control smuggled products etc. <lthough UG3LF4F5 has a first mover advantage in ice cream segment but Fngro has announced to enter in ice cream segment and is considering a big rival post C9B"+". 5apid increase in raw material cost and suppl& disruptions from suppliers of raw material. .he unprecedented surge in palm oil* tallow prices and other materials has resulted in declining margins. )oing forward* high raw material costs are a ke& risk to UG3LF4F5/s profitabilit&.

E,E Matri/
Key E5te!nal Fa)to!s OPPORTUNITIES (arket of developing countries due to more tendenc& towards consumption 5apid increase in world/s population. Unrelated diversification. 5ural area. H&giene Consciousness T-REATS Competition from organi:ed pla&ers* P J ) 3nflation 5ate 0muggled products and local competition. Legal* political and regulator& factors of host countr&. 5apid increase in raw material cost. *eig%t Ratings *eig%ted S)o!e ".?" ".#= ".+" ".B" ".B" ".?" ".+? ".+# ".+" ".#"

+. B. I. #. =. +. B. I. #. =.

".+= ".+= ".+" "."= ".+" ".+= ".""."! "."= ".+"

# I + # B # B B B #

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Total *eig%ted S)o!e Ratings: + @ Poor B @ 8elow <verage

167

869:

I @ <bove <verage # @ 0uperior

.otal weighted score of FFF matri6 of UG3LF4F5 B.,=' shows strong response of compan& towards e6ternal factors.

,E Matri/
Key Inte!nal Fa)to!s +. B. I. #. =. ?. +. B. I. STREN3T-S Customer/s Lo&alt&. (icro level retail outlets Latest state of the art facilities and technolog&. 3nternational brand strength. (arket share of #+$ Committed to business ethics* safet&* health* environment and communit&. *EAKNESSES 0trategic <lliance Costl& Products. 2perational Comple6it&. Total *eig%ted S)o!e *eig%t ".+= ".+" ".+" "."".+B ".+" ".+= ".+= "."= 167 Ratings # # # I I I + B + *eig%ted S)o!e ".?" ".#" ".#" ".B# ".I? ".I" ".+= ".I" "."= 86;7

.he score 86;7 shows that compan& has solid internal position* its strengths are overcoming the weaknesses. Ratings: + @ (aHor >eakness B @ (inor >eakness I @ (inor 0trength # @ (aHor 0trength

ndustr. Classification0
Ind st!y .ea Ind st!y Classifi)ation Indi)ato!s 3ndustr& growth lagging )1P growth. (ature Low profit margins )rowth 5educed sales volumes ".=kg per capita &earl& consumption 1ouble digit revenue growth

3ce cream

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Large Cape6 and advertising spend 0oap (ature ULF4F5 )rowth compan& within mature industr& Lu6 sales doubled in I &ears High profit margins 1etergent )rowth 3ntroduction of li%uid hand wash ++$ rise in 0urfs market share Low penetration* ="$ population uses laundr& soap 0hampoo )rowth 1ouble digit turnover growth Lowest penetration in <sia. Clear 0hampoo highest growth in comparable regions

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CO!CLUS O!
Uni7lever has a well managed process and the& are giving good training and development facilities and incentives as compare to the other companies. Unilever culture is about empowering emplo&ees* both to contribute to their business obHectives and to achieve their own personal and career goals. .he& also keep an e&e on the future* with Aleadership behaviors Ainitiative aiming to identif& the ne6t generation of leaders. H5's overall function is to devise and implement strategies and policies to ensure that the& have the right people with the right skills. >ithin that* there are numerous options for emplo&ees. For e6ample* it could be covering culture change* leadership development* strategic talent management* coaching and skills development or alignment of reward with performance.

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RECOMME!'%# O!S
*88ro8riate strateg4 for U&%L#(# is Market 'evelo1ment. U&%L#(# s7ould remain in t7e 8resent business and s7ould introduce 8resent 8roducts in ne9 geogra87ical area. 1ollo9ing are necessar4 factors t7at must be 8resent 97ile c7oosing market develo8ment strateg4: U&%L#(# U&%L#(# 7as its o9n strong distribution c7annel. is ver4 successful at 97at it does.

Unta88ed rural market and market of develo8ing countries e6ist for U&%L#(# to cover. U&%L#(# is a strong M&# in Pakistan. %t 7as abundant resources bot7 financial and 7uman: so it can easil4 e68and geogra87icall4. ;ere 9e are not concerned about e68ansion of o8erating activities to ne9 geogra87ical area. 3e are 8articularl4 concerned about ca8turing unta88ed market. %t is u8 to U&%L#(# 97et7er it is decided to start o8erating in ne9 areas too or <ust introduce 8roducts b4 using its strong c7annel of distribution. U&%L#(# is o8erating globall4. %t means t7at 1MC+ is suc7 an industr4 97ic7 can be gro9n globall4.

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