Unilever strategic marketing final project

[STRATEGIC MARKETING] UNILEVER PROJECT REPORT
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A PROJECT OF STRATEGIC
MARKETING ON
“UNILEVER PAKISTAN INC.”

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PRESENTED TO:
SIR ABDUL QAYYUM QURESHI
PRESENTED BY:
Mr Muhammad Tayyab 111405
Mr Bilal Ahmad 103145
Mr Farooq Haider 103119
Mr Muhammd Irfan 103125
Mr Shahid Aziz 111125

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Contents
ACKNOWLEDGEMENT........................................................................................5
PREFACE ............................................................................................................5
Introduction:......................................................................................................7
History ...............................................................................................................8
Merger With Brooke Bond..............................................................................9
Acquisition......................................................................................................9
Product Mix ....................................................................................................9
Surf Excel........................................................................................................10
Fair & Lovely Skin Cream and Lotion.........................................................11
Blue Band.......................................................................................................11
Pearl Dust.......................................................................................................12
Taaza ..............................................................................................................12
Vision Of Lever Brothers Pakistan Limited ....................................................13
Mission .........................................................................................................13
Organization Philosophy..................................................................................14
People...........................................................................................................14
Customers.....................................................................................................14
Suppliers.......................................................................................................14
Integrity........................................................................................................14
Environment responsibility...........................................................................14
Profit.............................................................................................................15
Organization Key Value.................................................................................15
Critical Success Factor...................................................................................15
Concern For Different Stakeholders..............................................................15
Form And Sources Of Competitive Advantages.............................................15
Objectives of Lever Brothers Pakistan Limited..............................................16
These main targets and objectives are:.........................................................17
Strategic Management At Lever Brothers Pakistan Limited .............................18

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Corporate Level Strategy ..............................................................................18
Business Level Strategy.................................................................................19
Operational Level Strategy............................................................................20
Organizational Structure and Management:....................................................20
Five Porter forces, which determines an organization’s structure: ..................22
Threat of New Entrants.................................................................................23
Threat Of Substitutes....................................................................................23
Buyer Power .................................................................................................23
Supplier Power .............................................................................................23
Competitive Rivalry.......................................................................................23
Market Segmentation......................................................................................24
Target Market..................................................................................................24
Product Positioning:.........................................................................................24
Marketing Tools...............................................................................................24
Product.........................................................................................................24
Price..............................................................................................................25
Place .............................................................................................................25
Promotion.....................................................................................................26
Manufacturing Globally ...................................................................................26
Major Selling Products and their market share................................................27
Global Competition..........................................................................................27
Sales Revenue & Value of Stocks .....................................................................28
Value of Stocks: ............................................................................................28
SWOT ANALYSIS...............................................................................................28
STRENGTH ....................................................................................................29
WEAKNESSES ................................................................................................29
OPPORTUNITIES............................................................................................29
THREATS .......................................................................................................30
Conclusion and Recommendation ...................................................................30

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Reference .....................................................................................................30
ACKNOWLEDGEMENT
We would like to pay our praises and humblest thanks to AL-MIGHTY
ALLAH, the most Merciful and Beneficiate of all, who bestowed us with the
ability to complete this project. It gives us immense pleasure and honor to
extend our thanks to our kind & cooperative. Sir Abdul Qayyum Qureshi from
Faculty of Institute of Management Sciences, Lahore for his valuable advices
and suggestions throughout our semester, in order to perform well & up to
mark..
Finally, we pay regards of gratitude to our parents, as they and their prayers for
Our success are always been a pillar of strength for us in our life.
PREFACE
Quality without creativity is meaningless. As changes grow ever more
unpredictable creativity is rapidly becoming recognized a core management
skill.
Today’s business environment demands that manager’s posses a wide range of
knowledge skills and competencies, as well as sound understanding of
management process and function. Managers need to be able to make best use
of their time, talent and of other people to work with and through others to
achieve corporate objectives. They also need to demonstrate their ability not
merely to solve problems, but to transform them and design ways through them.
This report concerns needs and changing needs and their satisfaction level,
which are the important function in every organization.

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Introduction:
Unilever is one of the world’s largest and leading multinational companies; Unilever
commenced their business activities on a larger scale by setting up their first factory in
Netherlands, in the year of 1890. Operating in Pakistan for over the last four decades the
company is trying to significantly contribute towards the augmentation of the standard of
living by bringing world class high quality products at the door step of their customers. The
usage of Unilever products by over 90% of the people in Pakistan stands a testimony to their
successful operation. . Their array of products show that they produce household care, fabric
cleaning, skin cleansing, skin care, oral care, hair care, personal grooming, and tea based
beverage products under worldwide famous brand names Wheel, LUX, Lifebuoy, Fair &
Lovely, Pond's, Close Up, Sunsilk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf
Excel, and Rexona.

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History
Lever Brothers Pakistan Limited is a multinational organization. Unilever PLC London is its
parent company. Unilever is a European based company with headquarters in London, and
their shares are quoted at the stock exchange of several European countries. They deal in all
kinds of products from animal foodstuff to foods and detergents plus other personal and
consumer products. Unilever has its subsidiaries in over 80 countries of the world, to which it
spreads its vast knowledge and resources.
William Lever (its originator) commences business in England as a grocer. He established
Lever Brothers in 1827 in England Sunlight was the first product of Lever Brothers, which
makes the beginning of the marketing of branded products at the same time Margarine Uni
was established in Nether Land by Simon Van Berg and Anton Jurgens. These two
companies in term of:
Buying raw material
Selling finished goods
Consequently both the companies loosing out money in term of profit. These problems led to
think of the mergers in 1930. These two companies merged together and renamed the
business as Unilever PLC / the word UNI is taken from margarine Uni and Lever is taken
from Lever Brothers. Its head quarter was established in England and Rotter Dam.
Unilever has 500 operating companies in 80 countries. It has 0.3 million employees and
turnover of sales in 23000 million pounds. The global business proportion is 60% in Europe
20% in North America and 20% in rest of the world. An identified board of directors control
the activities of subsidiary companies throughout the world. Lever Brothers Pakistan Limited
started its operations in 1948. A merger of Sadiq Vegetable Oils and Allied Industries existed
in Rahim Yar Khan was taken place with Lever Brothers and HVM company based at
Karachi. As a result of merger Lever Brothers Pakistan Limited was incorporated as an
independent Unilever operating company in 1955. The company is quoted on the Karachi,
Lahore and Islamabad Stock Exchanges. Lever Brothers Pakistan Limited has around 1900
employees in Pakistan.

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Lever Brothers Pakistan Limited played a dynamic role in boosting consumer products
market. It stand at a unique position due to its honesty and integrity. Lever Brothers Pakistan
Limited’s main divisions of business are:
Merger With Brooke Bond
Brooke Bond Pakistan Limited was incorporated in 1948. Company’s 40% shares are held by
Unilever, 21% by financial institutions, 24% by individuals, and 10% by insurance
companies. The company is quoted on Karachi and Lahore Stock Exchange market. The
company is manually engaged in the blending, packaging and marketing of tea. It also has a
small business in the sale of packing apices. And has three manufacturing locations situated
in Karachi and Khanewal. It also have three regional sales offices. The head office of the
company is located in Karachi.
After the amalgamation of Lever and Brooke Bond, Unilever will have a majority
shareholding in the combined company and it will provide a comparable level of technical,
management and financial resources. The proposed merger will benefit the consumer in term
of price and quality.
Acquisition
Lever Brothers Pakistan Limited acquire the shares of Pakistan Industrial Promoters Limited,
Mehran International Limited and Ambrosia International Limited, which is known as Polka
Group of Ice Cream Companies.
Product Mix
At present Lever Brothers Pakistan Limited is engaged in marketing of diversified varieties
and classes of products and playing a dynamic role in boosting consumer product market. It
stand at a unique position due to its honesty and integrity. Lever Brothers Pakistan Limited
has both product length and depth i.e. it has by length a largest of product lines available and
under each product line there are lots of variants like different weights, 100mg, 500mg,
1000mg, sache pack, family pack or in case of ice creams different brands have lots of flavor
available which determines its product depth. So different no of product lines are called
product length and no of products in each product line are called depth of product line. Lever
Brothers Pakistan Limited’s main product groups are listed below:

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Home And Personal Care
Personal Wash (PW)
Toilet Soaps
Lifebuoy (Carbolic Soap)
Lifebuoy Plus
Lifebuoy Gold
Lux (in 4 varieties)
Rexona (in 2 varieties)
Liril
Hamman
Fair & Lovely Soap
Fabrics And Home Care
Fabric Wash
Surf Excel
Power Surf
Sunlight Washing Powder
Soap Wheel
Home Care
Vim Dish Washer / Scourers
Vim NSD Bard (in 2 varieties)
Vim Powder Poly Bag

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Personal Product
Hair Care
Sunsilk Shampoo (in 7 varieties)
Harmony Soap
Lifebuoy Shampoo
Skin Care
Fair & Lovely Skin Cream and Lotion
Dental Care
Close-up Tooth Paste
Pepsodent
Oil And Dairy Based Foods
Banaspati
Dalda
Cooking Oil
Dalda Cooking Oil(Soya Bean)
Dalda Sunflower Oil
Planta
Margarine
Blue Band
Industrial Fats
A whole range of product for bakery and oils for the industry.
Beverages
Leaf Teas

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Yellow Label
Yellow Label – Danedar
Richbru
Top Star
Taaza Leaf
Supreme
Brooke Bond
Dust Teas
Pearl Dust
Ruby Dust
Laojee
Mixture Tea
Taaza
Ice Cream
Cornetto (in 3 varieties)
Feast (in2 varieties)
Feast Stickless
Top Ten
Star Cup (in 4 varieties)
Sundae ( 2 variant)
Chocu Bar
Minimill

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Sola
Jet Spot
Ice Lolly
Wall’s Kulfi
Panda
Pop Corn
g Three
Vision Of Lever Brothers Pakistan Limited
The vision of Lever Brothers Pakistan Limited is driven by is the commitment to excel and
we are here to sell aspiration not brand. So, the core vision is integrating and that is to excel
in every field whatever Lever Brothers do to provide customer delight and value. The Lever
Brothers have been able to follow the track set by their vision and to achieve the standards set
by their customers.
Mission
“We meet everyday needs for nutrition, hygiene and personal care with brands that help
people feel good, look good and get more out of life”.
"Lever brothers will be the foremost consumer product company in Pakistan with care, skin,
ice cream and spread. Already positioned in tea, hair, dental and household care, substantially
profitable position in cooking oils and fats our strengths come from our people and from
combining the best of our international as well as Pakistan origin. Our commitment is to
continuously care for the need of our customers, consumers, employees, suppliers, share
holders and the community in which we live."
As one of Unilever's leading brands, it has always been Wall's mission to add vitality to your
life - while being responsible about good nutrition

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Organization Philosophy
People
Peoples are key to strengths of Lever Brothers Pakistan Limited. The development of their
potential is core to Lever Brothers Pakistan Limited business.
So they provide extensive attention to developing human resources.
Customers
Lever Brothers Pakistan Limited is the customers focus organization. They do delight
customers with their products and service. Their brands always deliver the high quality as
they premise. Lever Brothers Pakistan Limited pays extra attention to the complaints of
consumers. e.g. if the consumer complaints that detergent harmed any cloth or skin they send
the sample for lab test a team analyzes that customer complaint is right or not and then they
send the detailed response to customer along with gift of their products. With a questionnaire
for suggestion for further improvement on the top of which is written “WE CARE ABOUT
YOU”.
Suppliers
Suppliers are considered the partners of Lever Brothers Pakistan Limited and Lever Brothers
Pakistan Limited maintain mutually beneficial relationship with them.
Integrity
Lever Brothers Pakistan Limited never compromise on integrity management adhere to high
standards in all they do.
Environment responsibility
Management adhere to all national and Unilever standards to ensure health, safety and
protection of the environment in which they live and work.

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Profit
It is considered to be the ultimate measure of Lever Brothers Pakistan Limited’s performance
and it is required to maintain and grow their business.
Organization Key Value
It defines that what do they want. They people of organization to be good at or how do they
want them to behave and this very clearly stated in mission statement as always stay
responsive to change, go for innovation, employee commitment to organizational objectives
and mission and creating value for customers. So, if we check the mission statement through
this aspect then we can easily state that they have clearly stated what should be the
organizational key values and how to reinforce them.
Critical Success Factor
The central issue of this factor is that what do they have to be good at to succeed in this
market or industry. The mission statement outlines this as “adopting a broad view of our
market, by seeking the new opportunities in the core categories and by staying closer to all
consumers than competitors and understanding their evolving needs and focusing on constant
delivery of superior value for our brands through innovation”.
So far them critical success factor is consumer connectivity and commitment to excel and to
provide superior value to customers and products of superior quality and value.
Concern For Different Stakeholders
Mission statement describes that what are the obligations to different stakeholders i.e.
stockholders, employees, suppliers, customers and community at large. Lever Brothers
Pakistan Limited’s mission statement contains concerns about all stakeholders. First be
foremost consumers and then other stakeholders and describes it as: “Through its
commitment to high level of core and safety for its employees, its consumers and
environment. Lever Brothers Pakistan Limited will be exemplary and will participate in the
dissemination of such practices in Pakistan”.
Form And Sources Of Competitive Advantages

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Mission statement of Lever Brothers Pakistan Limited completely describes the form and
sources of competitive advantage as:
“Competitive advantage will be developed by driving down relentlessly on relative cost
positions and outpacing competitor’s in operational efficiency improvements and through
building strong network of distributors and by developing a strategically focused organization
and by motivating its personnel to use its full potential of creativity and commitment and by
maintaining the higher standards of operational control”.
They are going for unique combination of cost reduction and superior value to customers so
they entirely provide the form and source of competitive advantage that what they wanted to
achieve and how they will achieve it.
Objectives of Lever Brothers Pakistan Limited
1. Their main objective is to have a double-digit growth and resultant cash flows will
be utilized in improving the product quality and contents to enhance the value
to customer and final users.
2. Lever Brothers Pakistan Limited has an objective to have a responsive supply chain
and technological based processes.
3. They want to have consumer connectivity, i.e. they want to know what they eat,
drink, how they spend their lives, what are their preferences. So in this way
they wan to be very close to customer, to know their real insight and desires so
they can develop new strategy for product design and can implement their
strategy in better manner i.e. avoidance of hit and trial approach and hitting the
right target with right strategy at right time in right and accurate manner.
4. They want to be cost efficient i.e. they want to reduce in their cost of production,
cost of transportation, distribution and packaging cost and finally reducing all
the human cost to offer a competitive price to customer maintain the high
standards of quality.
5. To have a partnership with their suppliers to enable them to provide high quality
low cost material.
6.Have entered and will be aggressively developing new markets.

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7.Be exciting to their customers with stream of innovative products.
8.To be no in all their existing markets.
These main targets and objectives are:
1.Profits
2.Consumerism
3.Welfare of consumer
The first objective of Lever Brothers Pakistan Limited is to earn maximum profit but keeping
in view the customer demands as well company deals in those products which are profitable.
If there are any indication that any item is not good from profit point of view, it will try to
find out the reasons. Will soon what steps should be taken to overcome these reasons.
Company will introduce different marketing strategies if there are problems in marketing.
Here I would like to code two very famous examples, 1st
of Sunlight soap and Sunlight
washing powder of Lever Brothers Pakistan Limited.
Lever Brothers Pakistan Limited initially developed a sense of consumer to use washing
powder other than washing soap, consumer switched s a result towards Sunlight washing
powder, i.e. popular segment of washing powder and than the market share for Sunlight soap
declined with passage of time, now the consumer who realized the convenience of washing
powder started using it, but at the same time, as a result marketing strategy of Lever Brothers
Pakistan Limited awareness of people, people switched to surf and wheel i.e. premium
segment detergents. Finally due to the decrease in the market shares and sales volume of
Sunlight soap and was light powder Lever Brothers Pakistan Limited management finally
decided to stop the production of this very product i.e. it is now obsolete.
Second example is related to the change of brand name of Surf to Surf Excel. The reason
behind was introduction of competitor’s brands like Arial by P&G which had brightness
features, which caused the people to switch from Surf to Arial, Lever Brothers Pakistan
Limited realized the fact due to disturbance in sale volume of Surf and introduced new brand
name “Surf Excel” with extra brightness power.

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Company also takes into consideration the welfare of the consumer. It takes into mind the
taste and habits of the customer. They pay much attention on the customers’ complaints. It
also works for the welfare and interest of Pakistan, as it is an environment friendly
organization.
Strategic Management At Lever Brothers
Pakistan Limited
Now we will proceed with strategies being pursued by the Lever Brothers Pakistan Limited at
different organizational level. First we will discuss the corporate level strategy.
Corporate Level Strategy
At corporate Lever Brothers Pakistan Limited is pursuing the strategy of vertical
diversification i.e. driving away from the previously adopted strategy of vertical integration
i.e. now they don’t want to perform more than one step of the processes involved in
converting raw materials into a product delivered and ready for consumption. Lever Brothers
Pakistan Limited’s operations are so complexed and involves 200 brands in Pakistan so now
they wanted to reduce the operational complexity and going for strategic alliances with their
suppliers, instead of producing themselves and going into complex operations now they want
their suppliers to produce for them.
The outsourcing the production so that they don’t have to invest heavily in the production and
to reduce the capacity problems, they now going for the third party contracting to produce
themselves and now they want them to be restricted to marketing and distribution of
products.
Diversification strategy is being pursued by the Lever Brothers Pakistan Limited but they
mainly go for related diversification as against unrelated diversification for conglomerates,
they are diversified into number of businesses as mentioned earlier but they are all related to
consumer products. Through vertical diversification they will be able to eliminate the
operational complexity and costs of buying and selling i.e. the transactional costs. Now they
mainly wanted to step away from operations and want to focus more on customers.

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As means of diversification which are being utilized by the Lever Brothers Pakistan Limited
as all the time, been acquisition, neither joint ventures i.e. strategic alliances nor the internal
development. Here we can take the example of the acquisition of Brooke Bond and Polka for
example which have Brother acquired through a hostile takeover. And to step away from
operational complexities now they go for subcontracting with the suppliers and want them to
produce for Lever Brothers Pakistan Limited as in case of oil and ghee and soap and with the
passage of time will also be implemented in other categories as well.
Business Level Strategy
At business level Lever Brothers Pakistan Limited is adopting a very unique and interesting
set of strategies. First and foremost strategy they want to follow is the cost leadership. They
wanted to control cost as much as possible and want to reduce cost by every mean.
First cost efficiency is achieved through outsourcing operations and stop producing
themselves and go for cost efficient subcontracting.
Second they want to achieve cost efficiency through responsive and cost efficient supply
chain, want to be in touch with suppliers all the time and for that they have connected
themselves with the suppliers and to their suppliers as well to minimize cost related to
forecasting now they want better forecasting through computer networks so to get the real
time information about the inventory, stock, demand and supply. They are now reducing the
inventory as well as average carrying the inventory of only 3 days and getting closer to the
concept of just in time except for those products for which they have to brought in raw
materials from far flung areas like tea and moreover routings of logistics as well like air
routing or ship routing to curtail the costs other than cost efficiency, they have adopted the
strategy of consumer connectivity i.e. want to stay closer to consumers rather to operations
and want to focus all alternations to consumers through more research and customer profiles
and demographics and wants to explore new customers and usage of products.
To get customer connectivity they do the market research to check the trends of their
customers. The do pre-launch, post-launch research, e.g. their did before and after lunching
while antidandruff Sunsilk. The response was quite encouraging. Hence basically customer
and market research and customer feedback, free samples distribution before and after
launching new product / brand/ variant is aiming their basic strategy to implement and
achieve the customer connectivity and to fulfill their customer demand.

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Here Lever Brothers Pakistan Limited has used the strategy of product development i.e. by
modifying and improving their Sunsilk it into Sunsilk antidandruff (white), they have
increased their sales. They are applying “Market and Development Strategy” as well in which
by introducing present product (Sunsilk) into a new demographic area i.e. dandruff conscious
market segment with the launch of only new variant i.e. Sunsilk antidandruff white. They
have added conditioner in it as initially the conditioner was missing in all shampoos of
Sunsilk. While it is available in competing brands of P&G.
Other than these two strategies another very important strategy is being followed by tge
Lever Brothers Pakistan Limited i.e. focusing on core brands or want to have a very focused
on brand portfolio in which they wanted to get rid of the slow moving brands like in Surf
you will get number of further variants like Surf Ultra, Surf Micro, Power Surf etc. and in
Sunsilk number of variants, Black, Green, Pink, etc. to name a few and how they have
curtailed all these slow moving brands like focusing attention to Surf Excel only and in case
of Sunsilk Black and White (antidandruff) and discarding slow moving items like Sunsilk
Pink and Green etc.
So, to avoid cannibalization effect now instead of number of brands to flood in the market
only few better and improved brands, cash generating and more focused towards customers.
Operational Level Strategy
At operational level, Lever Brothers Pakistan Limited has always adopted the strategy of
TQM only never went for CPR i.e. they have not come up with a new brand in last few years.
Only the improvements or new variants in existing brands or using the same old brand name
to introduce a new product like Lifebuoy Shampoo or Fair & Lovely Soap. So it can easily be
said that they believe more in adopting changes rather generative ones or go for single loop
learning only because according to them its very very expensive to introduce a new brand
name.
Organizational Structure and Management:
Lever Brothers Pakistan Limited restructure the organization after the merger with Brooke
Bond Pakistan Limited. The chairman is the executive officer of Lever Brothers Pakistan
Limited. He leads the seven members management committee, which is the top of decision
making. The management is responsible for corporate strategy of Lever Brothers Pakistan

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Limited and for initiating policies and overall planning as well as their general management
duties. Management committee members are each responsible for specific function.
Reporting to the management committee members are departmental heads who are
responsible for advising the management committee for planning and implementation of
policies for ensuring that targets are reached. The committee includes:
Mr. Lain Strachan Sangster (Chairman & Chief Executive)
Mr. Mashkoor Alam (Vice Chairman)
Mr. Mujib-ur-Rehman (Technical & Logistics Director)
Mr. Perwaiz Hassan Khan (Director Personnel)
Mr. J. A. Lee (Director Sales)
Mr. A. D. Bandaranayake (Director Commercial)
Mr. N. I. Khockhar (Business Unit manager ODF)
Mr. Clive David Welland (Director Food Business)
Board Of Directors
The board of directors control the whole operation of the organization it includes the
following personalities:
Mr. Lain Strachan Sangster
Mr. Syed Babar Ali
Mr. Fateh Ali W. Vellani
Mr. Mujib-ur-Rehman
Mr. Perwaiz Hassan Khan
Mr. J. A. Lee

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Mr. Clive David Welland
Mr. Dr. A. D. Bandaranayake
Mr. S. N. Patel
Mr. M. Asadullah Sheikh
Mr. Abdul GhaniBachani
Mr. Azim Azmat Osman
As we can notice that the management of the company is composed of a mix of international
and Pakistanis business professionalists. The management of the company includes Syed
Babar Ali as director, who is also involved in many other organizations i.e. Packages and
other industries. It includes in its board meetings one member from each province i.e. Punjab,
Sindh, NWFP and Baluchistan. The top management of the company is fully professional
specially marketing department which is headed by Mr. Jeff Lee who have world wide
experience in this field.
Hierarchy
Branch structure
All over Pakistan 6 branches of Lever Brothers Pakistan Limited are working. Its head office
is located in Karachi at Avari Towers. The chairman and management committee as well as
the most of the department heads have their offices there.
Five Porter forces, which determines an organization’s
structure:
1.Threat of new entrants
2.Threat of substitutes
3.Buyer power

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4.Supplier power
5.Competitive rivalry.
Threat of New Entrants
This potential threat always exist in every organization. But an organization like Lever
Brothers Pakistan Limited this threat is very minimum because you need a giant to compete
with another giant like Lever Brothers Pakistan Limited and in a relatively small market like
Pakistan, they are enjoying the highest market shares in most of their product categories like
ghee, oil, soaps, spread, fabric care, etc. so, they face no threat of any new entrant.
Threat Of Substitutes
Same as in the case of new entrant no as such threat they are facing.
Buyer Power
To determine buyer power one condition is always necessary i.e. the buyers are few so they
exert power over an organization. But this condition is not present in case of Lever Brothers
Pakistan Limited, they have very diversified product categories and within each category they
have brands targeted at almost each and every segment of the market so they don’t face the
buyers power as such but still “customer is king” and they do have to pay a lot of attention to
buyers being a consumer product company.
Supplier Power
Suppliers don’t exert any power over Lever Brothers Pakistan Limited rather Lever Brothers
Pakistan Limited provides buyer’s power in this case, no body would like to loose a buyer
like Lever Brothers Pakistan Limited so, they don’t face any significant supplier power.
Competitive Rivalry
Competition is intense but not cut throat competition and all of them avoid frontal assault or
direct attack. So, situation of healthy competition exist. Competitive rivalry would be
discussed more in detail in the section “competitor analysis”.

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Market Segmentation
Unilever Pakistan Ltd. segments their market according to geographical areas. The
population of the country is segmented into three parts which are urban, sub urban and rural
area consumers.
• Urban Richz
• Urban and Sub Urban Middle Class
• Rural Poor
Target Market
A research carried out by Unilever Pakistan reveals that urban rich people are more likely to
buy imported and expensive products. Moreover rural poor people tend to buy cheap products
even without evaluating its quality. However urban and sub urban upper middle and middle
class people tend to buy affordable and quality products.
Product Positioning:
Unilever Pakistan Ltd obtained a good position in the buyers’ mind through better product
attributes, price and quality, offering the product in a different way than the competitors do.
The company offers improved quality of products in the industry at an affordable price with
high branding, which ultimately helps to position the product in the buyers’ mind as the best
quality detergent.
Marketing Tools
Product
Though manufactured in Pakistan for the local market by Unilever Pakistan Ltd, as an
international brand, it maintains an international quality for the product. Formula given by
Research and Development departments in foreign countries
SURF EXCEL
Advance

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Tropical
Small & mighty
Automatic
Blue detergent
Quick wash
Price
Though Unilever Pakistan gives its Surf Excel customers a lot in terms of the product itself, it
cannot provide a better pricing. This is due to some constraints in the detergent industry.
Detergent is a product with a vulnerable demand in Pakistan. A change in price has a high
risk of creating price war among the rivals which will eventually cause a loss of profit. Its
prices are almost equal to its competitor. Company carries out research on competitors’ price
and brand loyalty when it feels extreme necessaity of chaging price. The brand loyalty test is
an exploratory research which is known as Brand Health Check-Up (BHCU).
2kg 1kg 500g 100g 60g 25g
Rs405 Rs210 Rs115 Rs20 Rs10 Rs05
Place
Unilever Pakistan Ltd. has a huge distribution channel for Surf Excel all over the country as
its sales reach more than 10 million bags/pieces a year. The company has six huge
warehouses, one in each division of Pakistan.
The company does not use its own fleet of transport for distributing its product. However, it
has outsourced its distribution process to various third party distributors, exclusively
dedicated to Unilever Pakistan Ltd. These distributors then supply the product all over
Pakistan to a huge number of retailers. Even though Surf Excel targets the urban and sub
urban middle and upper middle class people they are distributing their products all over
Pakistan because of a recent increase in demand of its product to all segments of the
population.

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Promotion
Unilever Pakistan undertakes huge promotional activities to promote Surf Excel which has
topped the detergent industry of Pakistan. It spends almost 20% to 25% of its Net Proceeds
from Sales (NPC) of Surf Excel for promotional activities for Surf Excel.
Unilever Pakistan Ltd spends a huge amount of money for promoting Surf Excel through TV
commercials, newspaper advertisements and billboards. Moreover it also undertakes small
promotional campaigns at different schools, colleges, universities and recreational parks with
winners of its different Contests. Till now promotional activities of Surf Excel has always
been successful which has made it a household common name and helped it reach almost one
billion taka sale value in the year 2004.
Surf Excel has been widely advertised in Pakistan ever since the brand was introduced. Surf
Excel remains the leading detergent brand in Pakistan, representing the clean and stylish class
of Pakistan. Things started with a TV show called Lux Style Ki Duniya where Surf Excel is
also promoted but at a low rate.
Manufacturing Globally
Unilever now owns more than 400 brands, many of them local that can only be found in
certain countries. Unilever markets its products to 150 countries. Unilever has a portfolio of
brands that are popular across the globe - as well as regional products and local varieties of
famous-name goods. This diversity comes from two of their key strengths:
 Strong roots in local markets and first-hand knowledge of the local culture.
 World-class business expertise applied internationally to serve consumers
everywhere.
The brands fall almost entirely into three categories:
 Food & Beverages,
 Home
 Personal Care

27
Major Selling Products and their market share
One of the largest consumer goods firms in the world, Unilever produces numerous brand
name foods, personal care items, and home care products.
About 54 percent of revenues are generated in the foods sector, which includes such brands
as Knorr soup mixes, bouillons, and seasonings; Amora, Calvé, Hellmann's, and Wish-Bone
dressings; Bertolli olive oil and other Italian foodstuffs; Rama, Blue Band, and Country
Crock margarines; Becel and Flora heart-healthy foods; Heartbrand, Ben & Jerry's, and
Breyers ice cream; Lipton tea; and Slim-Fast weight-management products.
Approximately 28 percent of sales come from the personal care area. Brands include the Lux
female beauty line, Dove and Lifebuoy soap, Pond's skin care products, Rexona deodorants,
Suave and Sunsilk hair care items, Signal and Close Up oral care products, and the Axe male
grooming line, as well as such miscellaneous brands as Q-Tips and Vaseline
Unilever's third major sector is that of home care products, which is responsible for about 18
percent of turnover; brands include Omo, Skip, Wisk, Surf, and All laundry detergents,
Comfort and Snuggle fabric conditioners and softeners, Sunlight dish detergents, and Cif and
Domestos household cleaners. Unilever maintains more than 300 production facilities around
the world and has operations in more than 100 countries. About 34 percent of revenues
originate in Western Europe, 22 percent in North America, 18 percent in the Asia-Pacific
region, 13 percent in Latin America, 9 percent in Africa, the Middle East, and Turkey, and 4
percent in central Europe/Russia.
Global Competition
Top Unilever Competitors:
Company Location
Proctor & Gamble Cincinnati,OH
Kraft Foods Northfield, IL
Nestle Vevey, Switzerland

28
Sales Revenue & Value of Stocks
Unilever’s mission is to add vitality to life. It is estimated that people around the world in 150
countries uses Unilever products 150 times a day. The 2006 sales revenue was 39.6 billion
pounds. Which came from the Americas 13.8 billion (36%), from Europe 15.0 (38%) billion
and from Asia/Africa 10.9 billion pounds (27%). Unilever has approximately 206,000
employees working all over the world.
By 2010, Unilever plans to improve its financial standard by:
 Ungearearing free cash flow in the period 2005-2010 of €25-30 billion
 improvement in Return on Invested Capital
 Underlying sales growth of 3-5% p.a.
 Operating margin of over 15% by 2010 after normal restructuring
 Improving capital and tax efficiency
Value of Stocks:
Unilever PLC ordinary shares are listed on the London Stock Exchange and as American
Depositary Receipts in New York. Each ADR represents 1 underlying ordinary PLC share.
There are 1 714 727 700 NV ordinary shares in issue, each with a nominal value of €0.16.
There are 1 310 156 361 PLC ordinary shares in issue, each with a nominal value of 31/9
pence. The equalization agreement between NV and PLC is such that each NV ordinary share
has the same rights and benefits as each PLC ordinary share (Unilever NV ordinary shares
are listed on the stock exchanges in Amsterdam and as New York shares on the New York
Stock Exchange).
SWOT ANALYSIS
SWOT analysis is done to know what the strength and weaknesses of the brand are and what
are the opportunities and threats that company has to face from the environment.

29
STRENGTH
 Unilever is a big multinational company.
 Sound and experienced management.
 Excellent marketing department assisted by a highly regarded marketing research
unit.
 R&D and financial support from parent company i.e. lever brothers.
 Management of product is familiar with the psychographics and demographic of the
consumers.
 Strong brand image and brand awareness.
 Market leader as it has a 43% share.
 Large sales force.
 Strong and healthy relationships with distributors and retailers.
WEAKNESSES
 Low market share in N.W.F.P.
 Loss of market share to some of its own products, i.e. Rexona against LUX.
OPPORTUNITIES
 High rate of population growth.
 Rising literacy.

30
 Market opportunity to penetrate in the new segments and market by the style and
hygiene consciousness of the people.
THREATS
 Possible increase of market share of P&G and Nestle
 Rising inflation, which reduces personal disposable income of consumers?
 Profit margin is exposed to rupee devaluation.
Conclusion and Recommendation
Unilever Pakistan take best part in social activities for welfare programme
They are market leader to give more value to their customers
Their strong positioning strategy to attract more customers in the FMCG market
In emerging market they have more customers then competitor.
They take training program about awareness of brand and also activities in urban and
rural areas to promote product.
They take spot sale in rural as promotion sales.
They have market opportunities to penetrate in the new segments and market by the
style and hygiene.
Reference
www.unileverpakistan.com
www.unilever.com
www.slideshare.com
www.google.com
www.vickipedia.com/uniliver
www.financialanalysis.com/uniliver
Thank you!

Unilever strategic marketing final project

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Unilever strategic marketing final project