CHAPTER 1

INTRODUCTION
1.1 Background of the study
A project is a one time set of activities that is a temporary endeavor to achieve
specific objective. It has a different set of starting and ending point and has a life
cycle. It is a plan investment undertaken to deliver a unique product or service as
output. Broadly project can be classified into business or developmental project
(Social Awareness). Project integrates human and nonhuman resources and has a
specific group of beneficiaries. All projects operate within the constraints of time and
cost. Engineering oriented construction of building, dams, airports, highways, bridges,
special economic zone (SEZ) and other development projects like Eco-friendly
vehicle.

1.1.1 Project Management

The project management approach is relatively modern. It is characterized by new
methods on restructuring management and adapting special management technique
with the purpose of obtaining better control and use of existing source. Seventy years
ago project management was confined only to the department and defense contractors
and construction companies. Today, the concept behind project management is being
applied in such diverse industries and organizations as defense, construction,
pharmaceuticals, chemical, banking, hospital, advertising, law, state and local
governments and united nation (UN).
Project management is a strategy as well as methodology of management. It is a
management specialization in its own right. It is a challenge. If defines in advance the
who, what, when, where, and how before the project begins. This is planning. It
assembles project team for the project structure. It allocates resources for various
activities. This is organizing. It tracks and monitors performance to get feedback to
asses how well the project objective have been achieved. This is controlling. It
manages and motivates people when the objectives are achieved.

Thus the project management is the task of getting the project activities done on the
time, within budget, and according to specification by a project team in a dynamic
environment.

1.1.2 Historical Overview of Projects Management With reference to

Nepal
The project model for managing development in the modern sense appeared with the
centralized planning model of the Soviet Union in 1930s. Many developing countries
adopted centralized planning model after the Second World War. USA adopted this
model in 1960 for Manhattan project. The increased Inflow of foreign assistance from
development to developing countries during the cold war years in 1950s and 1960s
gave further impetus to the project model. Much of the foreign aid to developing
countries was project based. Projects became the primary means of translating
development plans into action.
During 1970s the projects management model adopted by the developing countries to
implement complex development projects. The project model had replaced the
bureaucratic management model for implementing the development programs in
different countries. In Nepal, it was introduced only after democratic revolution of
1950 and was initiated with a grant assistance of US $100,000. After 1955, after the
membership of UNO different countries started to provide the fund to support the
development programs of Nepal. The country which contributing in the developing
programs of Nepal was USA, Japan, Germany, Canada, Australia, Denmark etc. Nowa-days different international financial institutions are providing funds for the
development of infrastructure of the country. There are different types of projects
running in the country which are as follow:
1. Project by HMG
2. Project by Private Sector
3. project with Joint Venture Partnership
We have already completed the 10th development programs. To support the different
programs run by the government there are number of projects in execution. Some of
the projects are working in the field of social service, others are engaged in

manufacturing concerns and some others are contributing in business sectors too.
Some of the important projects in Nepal are:
1. Nuwakot-Rusuwa rural development program

1956

2. Sagarmatha rural development program

1976

3. Mahakali rural development program

1979

4. Rapti rural development program

1980

5. Dhading rural development program

1984

6. Palpa rural development program

1988

7. Gulmi and Argakhachi rural development program

1988

The projects are supporting the government programs and achieving the expected
results form its successful executuin.

1.1.3 Types of Projects

Projects can be classified according to various factors:
1.

2.

3.

4.

Sponsorship

Customer

Organization

Contractor

Government

INGO

Donor

Nature of Projects

Individuals Project

Staff Project

Special Project

Complex Project

Orientation of Projects

Product Oriented

Service Oriented

Speed of Projects

Normal Projects

5.

Crash Projects

Disaster Projects

Size of Projects

6.

Mega Project

Major Project

Medium Project

Micro Project

Technique of Projects

7.

Labour Intensive

Capital Intensive

Funding Source of Projects

Indigenous

Foreign

Joint Venture Project

Bilateral Project

Multilateral Project

1.1.4 Joint Venture Projects

Any project undertaken to product goods and services through collaboration of
foreign and local investors are called joint venture projects. The ownership is
proportionately shared in an agree ratio. The joint venture project is associated with
transfers of technology, capital or managerial skills. Due to globalization and
advancement in information technology, joint venture business agreement is
becoming very popular throughout the world. For example:

Nepal Lever Limited

Everest Bank Limited

Hero Honda Limited

Maruti-Suzuki Limited

Dabur Nepal Limited

Wai Wai noodles Limited

Surya Tobacco limited

Features
4

Multi ownership status

Economic development objective

Profit oriented

Equal chance of risk and return

Help to industrial growth

Advantage

Low labour cost

Transfer of capital technology

Employment opportunity

Possibility of market expansion

List of Joint Venture Projects

Table1.1 Nepal has the following joint venture projects
Status
Operating
Under Construction
Licensed
Approved
Total
Source: FNCCI

2008Number
340
45
152
205
742

2009 Number
395
33
119
200
747

Table1.2 Top Twenty Joint Venture Projects in Nepal

Name

Product

Authorized

Country

Capital(Nrs

Collabora
tion

1. Manipal Education & medical Education

. Million)
3325

India

F/T/M

group
2. Surya Tobacco
3. Bhrikuti Pils & Paper
4. Bashu Linga Sugar & General
5. Nepal Orind Magnesite
6. Gorkhaliu Rubber
7. Buddha Air
8. Shree Ram Sugar
9. Jyoti Spinning
10. Hotel Yak & Yati
11. Mount Everest Brewery
12. Neoluxe Ltd
13. Soaltee Hotel
14. Unilever Nepal Limited
15. Nepal Metal Company

2100
1097
902
827
675
350
559
461
455
452
415
350
346
323

India/UK
Bermuda
India
India
China
USA
Bermuda
Philippines
UK
Philippines
India
India/USA
India
Hongkong/I

F/T/M
F
F
F
F/T
F
F
F/T
F/M
F/T/M
F/T
M
F/T/M
F/T

ndia
India
Denmark
N. Newland
Bermuda
Norway
(Source: FNCCI-2009)

F
F/T/M
T
F
F/T

Cigarette
Paper
Sugar
DBM/Bricks
Tire/Tube
Air Service
Sugar
Yarn
Hotel
Beer
D.L.Boatd
Hotel
Soap/Paste
Zinc/Lead

16. Annapurna Textile

Textile
17. Gorkha Brewery
Beer
18. Hansraj Hulaschand Jute Mill
Jute
19. Hulas Steel
GCI Sheet
20. Nepali Hydro & Electric
Transformer
F = Financial; T = Technical; M = Management

276
258
248
239
234

1.1.5 Introduction of Unilever limited

Unilever was founded in 1930 following a business merger between margarine Unie
of the Netherlands and lever brother Ltd. of the UK. To avoid punitive taxation levies
and the disruption to the business that would result from dividing integrated national
companies into their component parts, both companies pooled their interests through a
business merger as opposed to a legal merger. Two controlling companies were set up,
one English (Unilever Ltd now Unilever PCL) and the other Dutch (Unilever N.V.)

To allow both companies to operate as a single legal entity not withstanding their
independent legal structures, a series of agreements was put in place: mutual sharing
of brands and technology; equalization of dividend; mutual guarantee of borrowings;
identical Boards of Directors and equal treatment for shareholders in the event of
dissolution.
Through this timeline we can how the Unilevers brand portfolio has evolved. At the
beginning of the 21st century, their path to Growth strategy focused them on global
high-potential brands and their vitality mission is taking them into a new phase of
development. More than ever, their brands are helping people feel good, look good
and get more out of life a sentiment close to Lord Leverhulmes heart over a
hundred years ago.

Table 1.3 timeline

19th century Although Unilever wasnt formed until 1930, the companies that joined
forces to create the business we know today were already well
established before the start of the 20th century.
1900s

Unilevers founding companies produced product made of oils and

fats, principally soap and margarine. At the beginning of the 20 th
century their

1910s

expansion nearly outstrips the supply of raw materials.

Tough economic conditions and the First World War make trading
difficult or everyone, so many businesses from trade associations to
protect their shared interests.

1920s

With business expanding fast, companies set up negotiations intending

to stop others producing the same types of products. But instead they
agree to merge and so Unilever is created.

1930s

Unilevers first decade is no easy ride: it starts with the Great

Depression and ends with the Second World War. But while the
business rationalizes operations, it also continues to diversify.

1940s

Unilevers operations around the world begin to fragment, but the

business continues to expand further into the foods market and increase
investment in research and development.

1950s

Business booms as new technology and the European Economic

Community lead to rising standards of living in the west, while new
markets open up in emerging economies around the globe.

1960s

As the world economy expands, so does Unilever and it sets about

developing new products, entering new markets and running a highly
ambitious acquisition programme.

1970s

Hard economic conditions and high inflation make the `70s a tough
time for everyone, but things are particularly difficult in the Fast
Moving Consuming Goods (FMCG) sector as the big retailers start to
flex their muscles.

1980s

Unilever is now one of the worlds biggest companies, but takes the
decision to focus its portfolio, and rationalize its businesses to focus on
core products and brands.

1990s

The business expands into Central and Eastern Europe and further
sharpens its focus on fewer product categories, leading to the sale or
withdrawal of two-third of its brands.

The 21st
century

The decade starts with the launch of path to growth, a five year
strategic
plan, and in 2004 further sharpens its focus on the needs of 21 st
century
Consumers with its vitality mission.

1.7 Background of Hindustan Lever Limited (HLL) of India

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of sunlight
soap bars, embossed with the words Made in England by Lever Brothers. With it
began an era of marketing branded fast moving consumer goods (FMCG). Soon after
followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and famous Dalda brand came to the market in1937.

In 1931, Unilever ser up its first Indian subsidiary, Hindustan Vanaspati

Manufacturing Company, followed by Lever Brothers India Limited (1933) and
United Traders Limited (1935). These three companies merged to form HLL in
November 1956; HLL offered 10% of its equity to the Indian public, being first
among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the
company. The rest of the shareholding is distributed among about 380,000 individual
shareholders and financial institutions.
The erstwhile Brooke Bonds presence in India dates to 1900, the company had
launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited
formed. Brooke Bond joined the Unilever fold in 1984 through an international
acquisition. The Liptons links with India were forged in 1898. Unilever acquired
Lipton in 1972 and in 1977 Lipton tea (India) Limited was incorporated. Ponds
(India) Limited has been in India since 1947. it joined the Unilever fold through an
international acquisition if Chesebrough Ponds USA in 1986. Since the very early
years, HLL has vigorously responded to the stimulus of economic growth. The growth
process has been accompanied by judicious diversification, always in line with Indian
opinion and aspirations.
The liberalization of the Indian economy, started in 1991, clearly marked an inflexion
in HLLs and the groups growth curve. Removal of the regulatory framework allowed
the company to explore every single product and opportunity segment, without any
constraint on production capacity.
Simultaneously, deregulation permitted alliances, acquisitions and merges. In one of
the most visible and talked about events of Indias corporate history, the erstwhile
Tata oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In
1995, HLL and yet another Tata company , Lakme limited, formed a 50:50 joint
venture, Lakme lever limited, to market leading cosmetics and other appropriate
products of both the companies. Subsequently in 1998, Lakme Limited sold its brands
to HLL and divested its 50% stake in joint venture to the company.
HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in
1994. Kimberly-Clark Lever Limited which markets Huggies Diapers and Kortex
9

sanitary pads. HLL has setup a subsidiary in Nepal, Nepal Lever Limited (NLL),
presently known as the Unilever Nepal Limited and its factory represent the largest
manufacturing investment in the Himalayan kingdom. The NLL factory manufactures
HLLs products like soaps, Detergents and personal products both for the domestics
market and exports to India.
The 1990s also witnessed a string of crucial merges, acquisition and alliances on the
foods and beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari
general foods, with significant interest in coffee. In 1993 it acquired the kissan
business from the UB group and the Dollops Ice-cream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation
companies of Unilever, were merged with Brooke Bond India and Lipton India
Limited (BBILIL), enabling greater focus and ensuring greater focus and ensuring
synergy in the traditional beverages Business. 1994 witnessed BBLIL launching the
walls range of frozen desserts. By the end of the years, the company entered into a
strategic alliance with the Kwality Ice-cream group families and in 1995 the milk
food 100% Ice-cream marketing and distribution rights two were acquired.
Finally, BBLIL merged with HLL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of ponds (India) Limited (PIL) with HLL in
1998. The two companies had significant overlaps in personal products, Specialty
chemicals and exports businesses, besides a common distribution system since 1993
for personal products. The two also had a common management pool had a
technology base. The amalgamation was done to ensure for the group, benefits from
scale economies both in domestic and export markets and enable it to fund
investments required for aggressively building new categories.
In January 2000, in a historic step, the government decided to award 74% equity in
modern foods to HLL, thereby beginning the divestment of government equity in
public sector undertakings (PSU) to private sector partners. HLLs entry into bread is
a strategic extension of the companys wheat business. In 2002, HLL acquired the
governments remaining stake in Modern Foods.

10

In 2003, HLL acquired the cooked shrimp and pasteurized crabmeat business of the
amalgam group of companies, a leader in value added marine products exports.
Now, the Hindustan Lever Limited (HLL), is Indias largest fast moving consumer
goods company, touching the lives of two out of three Indians with over twenty
distinct categories in home and personal care products and foods and beverages. They
endow the company with a scale of combine volumes about 4 millions tones and sales
of RS. 10000 crores. HLL is also one of the countrys largest exporters; it has been
recognized as a golden superstar trading house by the government of India.
The mission that inspires HLLs 36,000 employees, including over 1,350 managers is
to add vitality to life. HLL meets everyday needs of nutrition, hygiene, and personal
care with brands that help people feel good, look good and get more out of life. It is a
mission HLL shares with its parent company, Unilever, which holds 51.55% of the
equity. The rest of the shareholding is distributed among 380,000 individuals
shareholders and financial institutions.
HLLs brands like lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brook Bond, Kissan, Knorr Annapurna,
Kwality Walls are household names across the country and span many categories
soaps, detergents, personals products, tea, coffee, branded stamps, ice cream and
culinary products. They are manufactured in close to 80 factories. The operations
involve over 2000 suppliers and associates. The Hindustan Levers distribution
network, comprising about 7000 redistribution stockiest directly covers the entire
urban population, and about 250million consumers. HLL has traditionally been a
company, which incorporates latest technology in all of its operations. The Hindustan
Lever Research Centre (HLRC) was setup in 1958, and now has facilities in Mumbai
and Bangalore. HLRC and the global Technology Centers in India have over 200
highly qualified scientists and technologists, many with post-doctoral experience
acquired in the US and Europe.

1..1.7 Unilever Nepal limited

11

Unilever Nepal limited is an 80% subsidiary of Hindustan Lever Ltd (HLL) and was
established in the year 1992. As a result by the eleventh annual general meeting of the
company dated 2061.8.28 (13th December, 2004), the office of the registrar of
company/HMG has, vide their letter dated 2061.10.28 (10th February, 2009), approved
the change in the name of the company from Nepal Lever limited into Unilever Nepal
limited. The 13 year old multinational represents the largest manufacturing investment
in the Himalayan kingdom with an authorized capital of 346 million rupees. The NLL
factory located at Basamadi VDC, 5 - Hetauda, manufactures HLLs products like
soaps, detergents and personal products both for the domestic market and exports to
India.
Table 1.4 Share ownership structure of Unilever Nepal Limited
Promoters
General Public

85%
15%
No of general share holder around 2500

Figure 1.1 Share Ownership Breakdown Structure of Unilever Nepal Limited

12

It is clear from the above data that Nepal Lever Limited hasnt issued many shares to
the general public. 85% of their capital has been financed by the promoters and only
15% by the general public.

1.1.8 Products and Services

Unilever Nepal Limited manufactures products under three different categories. They
are as follows:
1. Toilet soap
2. Laundry soap & Detergent powder
3. Tooth paste
4. Shampoo
5. Fairness Creams & others
1. Toilet Soap

Different variants of Lux such as Lux orchid, Lux Almond Delight etc.

Different variants of Liril such as icy cool mint and Liril orange splash

Life-Buoy active

life-Buoy Gold

2. Laundry Soap & Detergent Powders

13

Vim-dish wash bar

Wheel Active-detergent powder

Wheel Ok-detergent soap

Surf Excel

Surf laundry Soap

3. Tooth Paste

Close-up

Pepsodent

4. Shampoo

Clinic plus

Sunsilk

Dove

5. Fairness Creams & others

A number of variants of fair & lovely such as oil control, anti marks
etc.

Dove replenish body moisturizers

These investments in brand building helped the company in maintaining its

leadership position in all key categories-with market shares touching highest ever
levels-toothpaste at 60%, toilet soap 55%, detergent powders 80%, fairness
creams 45% & shampoo 35%.

1.1.9 Mission of Unilever

The purpose of Unilever Nepal is to meet the everyday needs of people everywhere-to
anticipate the aspirations of their consumers and customers and to expand creatively
and competitively with branded products and services which raise the quality of life.
Their deep roots in local cultures and markets are the unparalleled inheritance and the
foundation for their future growth. They are working to bring the wealth of
knowledge and international expertise to the service of local customers.

14

Their long term success requires a total commitment to exceptional standards of

performance and productivity, to working together effectively and to willingness to
embrace new ideas and learn continuously.
They believe that to succeed requires the highest standards of corporate behavior
towards the employee, consumers and the societies and world in which we live.
This is Unilever Nepals road to sustainable, profitable growth for their business and
long term value for their shareholders and employees.

1.2 Objective of the Study

The basic objective of the study is to focus on various as aspects of marketing strategy
of Unilever Nepals products. The other objective of the project is to acquire
knowledge about marketing strategy by means of interaction, observation and work
experience. The main objective of the study is to gain a practical knowledge about
project in Nepal and to fulfill the requirement of Tribhuvan University. Other
objectives are as follow:

To gather some useful information about the performance of Unilever Nepal

Limited which is one of the biggest joint venture projects of Nepal

To give recommendation and suggestion for further improvement

To gain a practical knowledge about the project and its operations.

Organization selection
As per my teacher guideline and partial fulfillment for project management, I have to
do a case study of project implementation in Nepal. For this purpose I selected
Unilever Nepal Limited which changes the scenario of marketing in Nepal in fast
moving consumer goods (FMCG).

1.3 Importance of the Study

Practical knowledge is very important aspect of every life. A simple study on a simple
topic covers a larger public; therefore this marketing strategy segment of a joint
venture project is very important because even a person without any knowledge of a

15

project can understand the terms and tools used in this study. The following are the
few points which will throw light on the importance of this study.

This field work report is prepared for the partial fulfillment of the degree of
bachelor of business studies.

This report may be useful to those willing to know something about the
nature, operations and performance of one of the biggest joint venture
projects in the country.

This field work report may be useful for library purpose and can be a good
source of information for other students.

This report will be guideline to those students who will be preparing small
project report.

This report may be also be useful for Unilever Nepal Limited to make
necessary steps for further improvement.

Besides concentrating on marketing strategy only this gives an overview of

the whole company so it might attract more readers.

1.4 Limitation of Study

Following are few limitation of this study:

Only the data of Unilever Nepal Limited from fiscal year 2001-2009 is taken.

The study is mainly concentrated on marketing strategy.

Short term study.

The study is based on secondary data sources.

It is a study of objective.

1.5 Research Methodology

In simple words Research methodology is the way of carrying research to derive
information about something. It deals with the situation and interpretation of the data
in meaningful form and help to offer ideas for further investigation and research. Our
creativity leads us to make our identity. Research methodology evaluates the
performance of the students. Research methodology deals with collecting, presenting,
and analyzing data. The nature and source of the data and method analysis used in the
study are described below:

16

1.5.1 Research Design

Research design is the first step of the present case study. The research design of the
present case study is diagnostic, comparative, and graphic study approach. This
design is less descriptive but more prescriptive because the historical secondary data
have been mainly employed for analysis. For the practical purpose, frequent visits to
the company office and been made to collect the in-depth information about
organization. All the information collected during the visits is considered as primary
data and the secondary data includes the office records, bulletins, annual report of the
company, review materials collected from the companys website and our campus
library etc. Such data and information have been processed through various processes
like editions, tabulations, calculations, and results have been interpreted in the from of
ratio and percentage for clear vision.
1.5.2 Source of Data
Generally, there are two sources of data, primary data and secondary data.
Primary source of data
The first hand data are the primary source of data. Primary source of data are
generally collected by direct interview, observations, questionnaires and through
internships or working experience.
Secondary source of data
Secondary data are mostly in practice. Secondary data are those data, which are
derived from online and already printed sources such as internet, brochure, annual
reports, journals, magazines, official records, publications and pamphlets etc.
1.5.3 Data collection methods used
The data collection methods used for this fieldwork report writing are as follows:
Primary data collection method
The primary data are personally collected through questionnaires, direct observation
and interviews. The information provided by the people of the project was very much
informative and the practical experience information that I derived form my visits has
been the primary data.

17

Secondary data collection method

The secondary data used in this study has been mostly derived from companys
brochures, internet resources and annual reports. Information derived from journals
and magazines ate regarded as the external sources of secondary data.
1.5.4 Data processing techniques
Data processing techniques include
Classification and tabulation of data
After collecting the data, they ate classified and arranged in tables with columns and
rows. They are presented I vary systematic and very sequential procedure which has
made the study quit easy and convenient.
Presentation of Data
In order to present the data clearly, various diagrams such as pie chart and bar
diagrams, tend line have been used. This has made the study very easily
understandable.
1.5.5 Tools used for analysis of data
Different modern marketing tools such as 4Ps of Marketing Mix, Distribution
model, PESTL model and SWOT analysis to access environmental scan of
economy.
1.6 Study plan:- Following chapters are including in this study:Chapter-1:-Introduction
Chapter-2:-Data presentation and analysis
Chapter-3:-Summary, conclusion and recommendation

18

Chapter 2
DATA PRESENTATION AND ANALYSIS
2.1 Company core values
Unilever aims to meet the everyday needs of Nepali household everywhere, to
anticipate the aspiration of consumers and to respond creatively and competitively
with branded products and services to raise their quality of life.
Unilever deep roots in local cultures and markets around the world are our parallel
inheritance and the foundation of our future growth. We will bring our wealth of
knowledge and international expertise to the service of local consumers - a truly
multi-local multinational.
Our long term success requires a total commitment to exceptional standards of
performance and productivity, to working together effectively and a willingness to
embrace new ideas and learn continuously.
We believe that to succeed requires the highest standards of corporate behavior
towards our employees, consumers and the societies and the world in which we live.
This is Unilever's road to sustainable, profitable and growth for our business and long
term value creation for our shareholders and employees.

2.2 Marketing mix

Marketing mix represents total marketing program of the firm. It involves strategic
decision in regard to Product, Price, Place and Promotion. The components of this
mix are interrelated among and dynamic in nature. The associated strategies keep
changing with changes in market condition and environment.

19

2.2.1 4Ps of Marketing Mix

Product:
Unilever has well segmented its products with differentiated product positioning
strategy targeted toward different class people.
The products are:
Close Up
Being as change oriented as its target market, close up continually renews the oral
care experience by introducing new flavors every now and then. The new Close up
offers four exciting flavors including an all new Eucalyptus Buzz. Other variants are
Menthol Chill, Icy Cool and Red Hot.
Pepsodent
This toothbrush was launched in 1997 to compliment the use of the toothpaste. The
discomfort and related problems associated with food residue stuck in between our
teeth, especially when they are in hard to reach places cannot be over-emphasized.
Pepsodent Perfect toothbrushes were therefore introduced to take care of this need.
Pepsodent toothbrushes with its zigzag bristles made a great impact in addressing
such consumer need.
Pepsodent Perfect toothbrushes have zigzagged bristles that reach in-between the
teeth guaranteeing thorough cleaning.
Enabling you to taste life to the full
Liril
Liril expressions have always set trends whether it is a bathing beauty in a waterfall or
"Oof Yu Maa!" The energy and excitement levels associated with the brand have to be
experienced to be believed with changing times.
Kotex

20

With our new Kotex Style, a film cover pad that gives you ultimate dryness and
added comfort, you are protected, so you can stay cool, in and stylish!
Breeze
Breeze has been enriched with 19 special scent oils, which ensure that one smells
good for a long time through the day. Introduced in variants like Scent Magic, Scent
Magic Lime, and Scent Magic Sandal, Breeze strives towards fulfilling the company's
mission of being inventive in creating value.
Lifebuoy
For generations natural herbal ingredients like Neem has been revered for its
antiseptic qualities. Lifebuoy Neem soap has brought in the do-good qualities of
Neem to the promise of protection from germs offered by Lifebuoy soap.
Home care range:
Surf Excel
An honest, no-nonsense brand, Surf cleans thoroughly and proves that you don't have
to spend lots of money on premium brands to get really great results.
Wheel
Wheel is synonymous with cleanliness and convenience. Over the years, Wheel has
continually updated its formulation and form to suit modern washing needs and is
today the most popular laundry brand in Bangladesh. All formats of Wheel are
available in various pack sizes, to suit the requirements of consumers from all income
groups. Wheel is available in both Soap and Non-Soap Detergent format.
Vim
Everyone knows real life is dirty. And there's no point in pretending dirt is easily
taken care of, or can somehow disappear as if by magic it has to be cleaned
thoroughly. Vim is the only everyday cleaner that deals with even the toughest dirt.

21

Vim has been expert at cleaning for decades. Vim is all about thorough efficient
cleaning without damaging surfaces.
Pricing
Martin Bell has said Price is dangerous and explosive marketing force. It must be
used with caution. The damage done by improper pricing may completely destroy the
effectiveness of the rest of a well conceived marketing strategy as a marketing
weapon; pricing is a big gun. Price is a key element in the marketing mix because
it relates directly to the generation of revenue.
Unilever has been mostly using Price skimming and Competitive pricing strategy to
entertain its targeted group of customers.
Place (distribution)
Distribution is the means for getting the products to the target market.
Distribution channel:
Distribution channel consists of set of people and firms involved in the transfer of title
to the product as the products move from producer to ultimate consumers or business
users.

Distribution network of Unilever

22

Unilever as producer

Distributor

Wholesalers

Retailers

Consumers

Promotion:
Unilever has been using extensive modern ideas for promoting their products.
Advertising is key to promote the products. With the proper investment in advertising
Unilever has its own brand image. Mostly seen advertising activities of Unilever are
TV commercials, Press ads, Bill Boards, Event sponsorship, Social activities etc.
Environmental Scanning:
The main reason behind investment in Environmental scanning is to access
Opportunities and Threats. ES helps out to identify strengths and weakness of the
organization.

2.3 SWOT analysis:

This analysis involves scan of internal as well as external environment where the
organization operates its business. SWOT stands for Strengths, Weakness,
Opportunity and Threats. Strengths and weakness are for internal analysis, whereas
Opportunity and Threats for external factors analysis.
Strengths: Strengths of Unilever are

Multinational image

23

Brand image

Wide segmentation for products.

Technological efficiencies

One of the largest joint venture projects in Nepal

It has been already in business or more than a decade now

The company continued its strong focus on serving the domestic market and
this is reflected in the domestic business growth of 17.1%

The company nurtured last year innovation as well as launched and relaunched a number of new products in the course of the year.

Apart from investing heavily in media company also organizes events such as
Sunsilk Fashion week, Close Sassy Zone, the top ten college women award
etc.

The company continued to invest heavily in improving outdoor and in-shop

visibility of its brands ranging from billboards to brand image windows.

It provides direct employment to 135 Nepalese citizens and generates indirect

employment for over 20 times that number through their network of suppliers,
distributors and ancillaries.

The company is already one of the largest corporate taxpayer to HMG/N. to

the poor-focused on the girl child.

Despite being a commercial organization the company has been serving the
society in many ways.

Weakness:

The company mainly concentrates on making the Nepali version of the Indian
products.

It hires more workers from India reducing the local employment.

Through the packaging of the product is similar to the products manufactured

by Hindustan Lever the quality of the products is not up to the mark.

Although the products are manufactured in Nepal prices are still above
expectations.

Opportunities:

24

Maximum use of geographical reach.

Possibility of maximizing return through investment in productive sector.

Maoist-government talks will definitely give more opportunities and peace.

Nepals entry into WTO is expected to bring in new foreign investment in the
economy, thus bringing a possibility of economic boom.

Efficient utilization of local raw material and man power to reduce operating
costs.

Threats:

Aggressive and competitive market.

Weak economy with increasing social insecurity and political instability.

Increase in robbery, loot and thefts.

Civilized and quality conscious consumers.

Demanding employees and staffs.

2.4 PESTL Model:

PESTL Model is a research of unique marketing strategy which generates idea about
different sectors it gives knowledge about physical environment of demand and
supply of market, Individuals or firm. Political, Environment, Social, Technological
and Legal studies come around this Model of study. These topics play a vital role in
the marketing strategy of Unilever Nepal Ltd. Thus these topics are explained below.
Political
The political environment consists of laws, government agencies and pressure groups
that influence and limit various organization and individual in a given society. The
political environment needs to be supportive for the company to prosper .In every
business, political situation plays a vital role. In this way, Unilever Nepal Ltd also
faces the some Kind of problems due to the political situation. In the context of Nepal
the political situation is not stable, which changes the rules, policy, strategies and so
on..which makes the organization to change accordingly which is a difficult task.
Recently the government has introduced certain barriers to this industry .The
government has banned advertisement through electronic media, which had been a
disadvantage to the organization .In this competitive world, a product is sold more

25

due to advertisement but having some barriers from the political field there will be
more expenses trying to adapt with the new marketing strategies to reach the
costumers.
Environmental
It consists of the forces both internal and external that directly or indirectly effect the
organization as a whole .The environment offers both opportunities and threats, so it
is essential for an organization to keep tract of the developments in the environment.
The deteriorating condition of the natural environment is one of the major issues
facing business today. Air and water pollution have reached dangerous levels. There is
great concern about industrial chemicals creating a hole in the ozone layer that will
produce a green house effect namely a dangerous warming of the earth. .The same
is the case with water pollution that is killing aquatic life and posing threats with
regard to water-related health hazards.

Social
It consists of institutions and other forces that effect societys basic values, perception
preferences and behaviors. So organizations need to find ways to win consumers
confidence so as to prosper .The society that people grow up in shapes their basic
beliefs, values and norms.
Technological
It consists of the forces that new technologies creating new product and market
opportunities .The most dramatic force shaping peoples lives in technology .Ones
attitude towards technology depends on whether one is more enthralled with its
wonders or its horrors. The marketer must watch the following trends in technology:

Accelerating pace of technological change

Unlimited innovational opportunities

Varying R&D budgets

Legal
It consists of the restraining forces posed by the government. Government poses
threat to a company through its trade policy etc.

26

2.5 Regulatory Aspects:

In every country there exist legal rules and regulations an industry has to abide by.
Some of the regulatory aspects that the noodles industry needs to follow are listed
below.
Indirect tax of 10% (VAT)
The company has to sale their products through VAT bills where the company has to
pay 10% extra from the total amount of the bills. But this later is transferred to the
distributors and finally to the consumers.
The factory should be located outside the valley
Since the population has been increasing inside the valley it has become harder for the
government to provide facilities like water, electricity sanitation and so on which are
the basic needs for a human beings. As per the rules of the government big industries
are to be established outside the valley. The other major reason for this is that the
people outside the valley could also be employed in these factories.

The factory should be environmentally friendly

In the past trends, it was observed that industries evolved even though it harmed the
environment, but as for now government and consumers are aware of the fact about
the responsibility that the company should take. The government has certain rules
about dumping the waste that the factory produces. These wastes should not harm the
environment either.
Other Market Issues
By market issue we understand the various factors that are prevailing in the market
and those factors that directly affect the sales of the product. The issues will be
discussed below:
Advertisement
Advertisement plays a major role in promoting a product. People of this generation
are exposed to various media everyday. Thus we see various manufacturers spending
heavily in promoting their products .But not all manufacturers spend particularly on
advertisement .Some probably dont do it because they still follow traditional method

27

of producing and distributing their goods while some may not be advertising as a
result of huge budget it requires.
Innovative product
All the companies have tried its best to become innovative and come out with new
taste. However, the success rate of these has been negligible .This has been on either
to disturb .The competitor brand or to genuinely provide a new taste to the people.
One thing can be noticed distinctly, all the new innovative products that have been
launched by the companies recently have not been successful.
2.5 Financial view
Nepal lever has provided the following offers to the wholesalers for marketing
stratesies.in which the sales level is increased compairing to Dabur Nepal. In
Nepal Nepal lever is good in condition in profit planning. The following table
shows its condition:-

Quantity

Nepal Lever

100 gm

Offer
25% extra quantity

Sales price
20

Sales quantity
3000

200 gm

25% extra quantity

40

500

500 gm

Pepsodent

95

200

(2009 Annual report)

In two previous years the sales and turnover increased by
1.Volume
Current rear Previous Year
28

Grogth(%)

Domestic
Export
Total

17746.41
4877.6
22624.11

14647.00
3886.6
18533.6

21.16
25.51
22.07
( In Rs Lakhs)

12653.01
2595.99
15259.01

10199.71
2247.56
112447.27

24
15
22.5

2 Turnover
Domestic
Export
Total

Chapter 3
Summary, Conclusion and Recommendation
3.1 Summary
Unilever Nepal Limited, one of the largest joint venture projects in Nepal has already
served the Nepalese market for more than 12 years .As

an 80% subsidiary of

Hindustan Lever Ltd(HLL) the company was established in the year 1992 and is the
largest manufacturing investment in the Himalayan kingdom with an authorized
capital of 346 million rupees. The main objective of the company was to manufacture
the products of HLL in the domestic market. The company mainly concentrates its
activities in the production of daily consumable goods under three different categories

29

namely toothpaste, toilet soaps, laundry soap and detergent powders, fairness creams
and shampoos. The huge investments in brand building has helped the company in
maintaining

its leadership position in all key categories-with market shares

80%,fairness creams at 45% and shampoos at 35%.The companys factory at Hetauda

has completed 4.0 Million man hours without any lost time accident. This excellent
safety record is a reflection of the factorys managerial focus on safety. Several
workshops of a safety conscious culture and to bring which served to improve the
safety consciousness of employees
The company strives to be a trusted corporate citizen maintaining high standards of
corporate governance and fulfilling its responsibilities to the societies and
communities in which it operates. It provides direct employment to over 135 Nepalese
citizens and generates indirect employment for over 20 times that number through
their network of suppliers, distributors and ancillaries. The company is already one of
the largest corporate taxpayer to HMG/N.
The company has always accorded a very high priority to improving the skills and
capabilities of its employees and considers employee training and development as a
key corner stone for superior performance. Employees at all levels received training
through classroom instruction, coaching and functional visits to other companies to
benchmark and learn from their best practices and personnel.
This study is undertaken to analyze and exhibit the performance of Unilever Nepal
Ltd in regards to its profit earnings and dividend distribution which has contributed to
the financial system of the nation. Over the years the company has always been able
to generate high profits. Despite of the countrys poor economic and political
conditions the companys profit has increased year after year .This company sets an
example for other companies and investors and it proves that there are still plenty of
opportunities left in Nepalese market.

3.2 Conclusion
The Unilever is one of the most successful joint venture projects in Nepal. It is
already one of the largest corporate taxpayer to HMG/N. It is the leading
manufacturer of soaps, toothpaste, shampoos and fairness creams in the country. It is

30

the most fast growing and profit making company. Having served for more 12 years
the company has earned the reputation of being reliable, punctual, profitable efficient
and successful project organization in the economic as well as social sector of the
country.
From the study the following conclusions can be produces.

The company has been serving the domestic market for more than a decade.

It is one of the largest joint-venture projects in Nepal with a authorized capital

of more than Nrs.346 Million.

The main products of the company are toothpaste, toilet soaps, laundry soap
and detergent powder, shampoos and fairness creams.

The huge investments in brand building has helped the company in

maintaining its leadership position in all key at 60%, toilet soaps 55%,
detergent powders 80%, fairness creams at 45%,and shampoos at 35%.

The companys factory at Hetauda has completed 4.0Million man-hours

without any lost time.

The company provides direct employment to over 135 Nepalese citizens and
generates indirect employment for ever 20 times that number through the
network of suppliers, distributors and ancillaries.

The company is already on of the largest corporate taxpayer to HMG/N.

The companys local turnover has increased through the years 00/01 to 04/05
and exports are also quite satisfactory.

The company has registered increasing trends in the earnings .In the fiscal
year 2000/2001 the companys net profit was 68 Million and this has reach
189.1 Million in the year 2008/2009.

The divided paid by the company has increased along with the increase in Net
profit .In the fiscal year 2000/2001 the dividend paid to shareholders
amounted Nrs.50.6Million which has increased to 368.4Milion in 2007/2008.

After going through the study we can come to the conclusion that Unilever Nepal
Limited has been performing in satisfactory manner. Over the period of more than
a decade the company had to face many challenges such as political instability,
economic slow down and Maoist problem, even then the companys profit has

31

increased year after year. This clearly shows that the company has been
performing in a satisfactory manner and I wish for the best.

Recommendation
Having served for more than a decade, The Unilever Nepal Ltd has proved to be a
milestone in the history of projects in Nepal .It holds a reputable status and is
better placed in the commercial business in Nepal as compared to similar joint
venture counterparts. Although the company has been successful over the years I
would like to make few recommendations which I suppose will help the company
to bring more success in the days to come.

The companys share capital has remained constant at 92.1Million.It seems

that company should increase its capital by more share offerings to the
general public.

The company should pay more attention to improve the quality of the
products and reduced the costs.

In addition to cash dividend the company should also provide stock

divided.

It should create roam to provide more employment opportunities by

expanding its activities.

The security situation in the country continues to be cause for concern .On
28th August 2004 armed persons attacked the factory and detonated three
powerful bombs, causing extensive damage to buildings and machinery.
Therefore, the company needs to improve its security system.

The company should to improve identify new products and categories in

which it can delight the consumers through relevant innovations and
supply of high quality products.

The company should work more for Corporate Social Responsibility(CSR)

32

Bibliography & References

Annual Report, Fiscal Year 2008-2009, Unilever Nepal Limited, Kathmandu,
Nepal
Agrawal, Govinda Ram(2009),Dynamics of Business Environment in Nepal,
Kathmandu, M.K. Publishers.
Agrawal, Govinda Ram (2009), Project Management in Nepal, New Edition,
M.K. Publishers, Kathmandu.
Bajracharya, B.C.( 2053), Business Statistics and Mathematics, Kathmandu:
M.K. Publishers and Distributors.
Joshi P. R. ( 2001), Research Methodology, Kathmandu: Buddha Academic
Enterprise , 1st Edition,.
Meredith J. R and Mantel Samuel J (2000), Project Management: A managerial
Approach, New York: John Wiley.
Pant, Prem Raj (1998), Fieldwork Assignment and Report Writing, Kathmandu:
Veena Academic Enterprise Pvt. Ltd.
Ghattas, R.G. & Sandra L. McKee(2001) Practical Project Management.
Delhi:Pearson.
Project Management Institute (1997), Principles of Project Management, USA:
Project Management Institute.
Lawrence, J. Gilman (2009), Principle of Managerial Finance, 10th Edition,
Singapore: Anderson Wesley Longman.

33

34