SlideShare a Scribd company logo
HISTORY
• Lever brothers is founded by
WILLIAM HESKETH LEVER in 1890
• Key player in food & household
product industry
• Historically grew through acquisitions
INTRODUCTION
LEVER BROTHERS, THE OLD NAME OF UNILEVER
CHANGED INTO UNILEVER AFTER THE MERGER OF
LEVER BROTHERS & MARGARINE UNIE IN 1930
UNILEVER IS A MULTI NATIONAL COMPANY
IT IS ONE OF THE LARGEST CONSUMER GOODS
COMPANIES IN THE WORLD
ITS BRANDS ARE ON SALE IN 151 COUNTRIES
UNILEVER STAFF
TODAY UNILEVER EMPLOYEES 179,000 PEOPLE IN
150 COUNTRIES WORLDWIDE
TODAY UNILEVER EMPLOYEES IN PAKISTAN
ARE1677.
VISION STATEMENT
“We help people around the world to
meet everyday needs for nutrition,
hygiene and well being, with brands
that help people look good, feel good
and get more out of life”
MISSION STATEMENT

“Vitality is at the heart of everything
we do. It’s in our brand, our people
and our approach to business”
OBJECTIVES
• To be honest transparent and ethical
• To win hearts and minds of consumers
• To deliver what we promise
• To become empowered leaders
• To believe in trust, truth and team work
• To care and actively contribute the
community
LOGO

This is the logo of “UNILEVER”
SLOGAN
“FEEL GOOD, LOOK GOOD
AND GET MORE OUT OF
LIFE…”
CEO UNILEVER

“PAUL POLMAN”
CEO OF UNILEVER (FROM OCT. 08)
UNILEVER
PAKISTAN(1948)
4 WHOLLY OWNED AND 6 3RD PARTY
MANUFACTURING SITES
FIRST SITE IN PAKISTAN WAS IN RAHIM YAR KHAN
LARGEST FMCG COMPANY NOW OPERATING AT
SIX LOCATIONS IN PAKISTAN
CEO UNILEVER PAKISTAN

MR.EHSAN A.MALIK
CEO IN PAKISTAN
GENERAL INFORMATION
NO. OF EMPLOYEES 1677
SHARES 13,293,869
SHARE HOLDERS 4171
REVENUE 59.7 BILLIONS (2012)
FOOD BRANDS
•
•
•
•
•
•

Badami
• Pearl dust
Blue band
Brooke bond supreme • Rafhan
• Wall’s
Energile
Knorr
lipton
•
•
•
•
•
•
•

PERSONAL CARE
BRANDS
Clear shampoo
Close up
Dove
Fair & lovely
Lifebuoy shampoo
Lifebuoy soap
Lux

•
•
•
•

Pond’s
Rexona
Sunsilk
Vaseline
HOME CARE BRANDS
•
•
•
•
•

Comfort
Rin
Sunlight
Surf excel
vim
PESTEL ANALYSIS
POLITICAL FACTORS
• Smuggling of black tea under afghan
transit trade agreement
• Increased tax and import duties (33.7%)
• No steps being taken to discourage
counterfeiting
ECONOMIC FACTORS
• UPL uses palm oil as a major input, but
price fluctuations
• Energy crises is effecting the ice-cream
segment
• High inflation rate
SOCIAL CULTURAL
FACTORS
• Growing urbanization
• Higher number of youngster
• Rising income
These factors led to change consumer life
style
• Total population 173.51 million
• 110.46 million rural areas
• 63.05 million urban areas
TECHNOLOGICAL
FACTORS
• Spent 891 million Euros on R & D in pak
• UPL uses internet to train its employees
• Energy crises
LEGAL FACTORS
• Changing legislation
• Minimum wages of unskilled workers
increased from 6000 to 7000 rs in 2010
• As per law after 9 months temporary
workers should me made permanent
STRENGTH’S
• Customer loyalty
• High dividend payout
• International brand strength
• Market share of 41%
• Oldest MNC of Asia
• Strong financial position
• Vast distribution network
• Large range of brands
• Well established brand name
• Latest state of art and technologies
• Established raabta consumer care line
WEAKNESSES
• Costly products
• Discrimination among employees
• Weak web presence
• Only 1500 employees are on their payroll
• Many protests by labor unions
• Using nameless factories in Karachi
• Had to sale dalda
opportunities
• Could develop new product
• Local competitors have poor products
• Unrelated diversification
• Around 40% smuggled tea can be catered
• Urban areas are only familiar with shampoo
• End user respond to new ideas
• Strategic acquisitions can help to expand
further
• Huge potential in rural areas
• Young generation is becoming beauty
concious
• New soaps can be introduced in winter
• Forward integration can be done
• Pakistan is 3rd largest importer of tea, huge
potential in tea farming
THREATS
• Legislation could impact
• Retention of key staff critical
• Major competitor
• Competitor aggressive marketing
• Security conditions
• Energy shortage
• High taxation
• Price war
PORTERS 5 FORCES
BARGAINING POWER OF
BUYERS
UPL has to be precautious on deciding
about prices and satisfying customers to
avoid of switching customers
COMPETITIVE RIVALARY
• Large num of competitors P & G
• Substitute products and low prices of
competitors
• UPL have capacity of mass production
THREAT OF SUBSTITUTE
• Should focus on R & D to avoid substitute
products
• Substitutes has reduced brand loyalty
THREAT OF NEW ENTRANT
• In pak less legal requirements and capital
is required
• ULP’s brand image is a strong barrier
SUPPLIERS BARGAINING
POWER
• ULP has policy of local buying and local
manufacturing
• Blanket agreements with suppliers
• Built strong relations with supplier by
treating them fairly
BCG MATRIX
BCG MATRIX
STARS PRODUCTS OF ULP
High growth rate & high market share

Walls
Lux
Surf excel
Fair and lovely
CASH COWS
Low growth rate & high market share

•
•
•
•

Sunsilk
Ponds
Lipton
Blue band
DOGS
Low growth rate & low market share

• Rexona
• Lifebuoy shampoo
QUESTION MARKS
High growth rate & low market share

• Lifebuoy soap
• Clear shampoo
BRAND LIFE CYCLE
INTRODUCTION
• Domex
GROWTH
• Lux
• Sunsilk
• Clear shampoo
MATURITY
• Surf excel
• Ponds
• Lipton
DECLINE
• rexona
VALUE CHAIN ANALYSIS

Focusing on cost leadership
in shampoo markets
Firms infrastructure
• Knowledgeable experts
• Effective management information system
• Marketing research department shares
consumer research data
Human resource management
• Skilled, qualified and expert management
• Formal and informal network
communications
• Training programs and seminars
Technological development

• R&D brought improvement in shampoos
procurement
• Outsource raw material
 Europe, America, far east and local
availability
• Automatic replenishment systems
• Packaging material from packages limited
Lahore
operations
• Have got economies of scale to reduce
unit cost
• Production process of sunsilk and lifebuoy
is reliable
distribution
• Shipped to 6 depots via truck
• Transportation cost is beard by whole
sellers
Relationship and marketing
• Incase of lifebuoy focus only on males and
ignore female
• Incase of shampoo main focus is on
females
• No strategy to make good relationships
with retailers
• One thing they lag’s in is centralized long
term strategies
STRATEGIES
MARKET PENTRATION
•
•
•
•

Clear shampoo
Badami
Vim
Walls

Bill boards, launching new advertisements
• Surf excel
ad campaign (daag to achay hote hain)
• Lifebuoy
Hand washing campaign
MARKET DEVELOPMENT
• Vaseline
Old product but working on its
development
• Sunsilk
Exploit the religious Semitism of Muslim
women (hijabi women's)
PRODUCT DEVELOPMENT
• Domex
launched against harpic
• Fair menz
A new product for men fairness
FORWARD AND BACKWARD
INTEGRATION
ULP has never indulged in backward and
forward integration
HORIZONTAL INTEGRATION
• Polka (1998)
• Knorr (2000)
• Lipton (1988)
• Brokebond (1997)
• Glaxose-D (1999)
DEFENSIVE STRATEGY
• Increase scale of economy to reduce unit
cost
RETRECHMENT STRATEGY
• In 2007 292 contract employees were fired
CONTINUES IMPROVEMENT
• 41% reduction in CO2
• 65% reduction in water use
• 73% reduction in total waste
STRATEGIC TYPE
• Unilever is a prospector with fairly broad
product line and focuses on
 Innovation
 Market opportunities
Determining the sustainability

• There is a huge chance of imitability in
FMCG’s
THE END…!!
ANY DOUBTS
OR QUESTIONS???
THANK YOU!!!

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