A Brief analysis of Matrix that provide an information about Unilever in their respective industry

1. Presented By
RAJA SAQIB NAVEED

2. INTRODUCTION
•Lever brothers is established by William H. Lever in 1890
•Key player in food & household product industry
•It is one of the largest consumer goods companies in the
world
•Its brands are on sale in 190 countries
•Unilever Pakistan formerly Lever Brothers established in
Pakistan in 1958
•Largest FMCG company now operating at different
locations in Pakistan

3. MISSION STATEMENT
• Unilever'smissionistoaddVitalitytolifeWe
meet everyday needs for nutrition,
hygiene and personal care with brands
that help people feel good, look good
and get more out of life
VISION STATEMENT
To make sustainable living commonplace.
We believe this is the best long-term way
for our business to grow.

4. MATRIX
INPUT STAGE:
Internal analysis
External analysis
CPM
MATCHING STAGE
BCG matrix
SPACE matrix
IE Matrix / EFE Matrix
SWOT
DECISION STAGE:
QSPM

5. INPUT STAGE
INTERNAL STRENGTHS:
 Largest Producer
o Unilever Pakistan Limited is the largest producer of
consumer products in Pakistan and has strong
brands in every field such as Close Up, Dalda,
Surf, Lifebuoy, Lux,etc.
 Advance technology
o Unilever Pakistan Limited is the only company
in Pakistan which has its own corner research
department
 Supply Chain Management
o It has the largest and efficient distribution network
then any its competition
 Financial Backing
o The company is very strong financially
 Experience Top Management
o Unilever Pakistan Limited enjoys the services of
highly professional management in the area of
sales, marketing, technical and production
INTERNAL WEAKNESSES
 Tall OrganizationStructure
o Due to tall structure it is difficult to handle the organization
easily.
 High Operating Expenses
o No doubt its sales are large but in same time its operating
expenses are huge.
 High Cost ofProduction
o As in the production unilever keeps its environment very neat
and clean, and produce high quality products so cost of
production is very high. Increased
• import duties are also adding to the prices of the products
 Long term strategies
o Unilever Pakistan Limited go for long term strategies for all their
product
• categories which prove to be a weakness with change in the
circumstances and taste, trends of people
 Emphasize on only few products
o Emphasizing only few products while ignoring others which
could give them potential market shares e.g. beverages
section

6. INPUT STAGE
External opportunities:
Hygiene Consciousness
People are becoming more conscious about
their health and are becoming more
conscious aboutbrands.Asunilever hasgood
positioningin consumer’smindso it can increase
their market share to launch products in hygienic
category.
Increasing Population
As population is increasing it may lead to create
valuable opportunity to enhance the growth of
unilever.
Innovation (R&D)
Innovation in unilever may create opportunity to
more penetrate in the market
EXTERNAL THREATS:
 Product smuggling
o unilever Pakistan Limited has not been able to place any check
on its smuggling
• shampoos into Pakistan e.g. Indonesian Sunsilk is made
according to the demographic of Indonesia, when it will be
used in Pakistan it will damage the hair of people,which
detoriate the brand image and decreases the local sales of
Unilever PAKISTAN.
 Increase demand for Antibacterial Soaps
o Demand for antibacterial soaps is increasing while unilever
has not yet been introduced any antibacterial soap,it may
switch the brand loyals of Unilever
 Counterfeit Products
o There may be imitation of products in Pakistan which may
damage the goodwill of Unilever Pakistan ltd.
 International Trends
o People of Pakistan preferto purchase foreign products, it may
be prove to be a threat forunilever
 Local Competition
o Number of local companies producing detergents at low price.

8. MATCHING STAGE

9. BCGMATRIX

10. Highgrowthrate&highmarketshare
Lux
Sunsilk
Wall’s
Fair&lovely
Rafhan
Energile
High growth rate & low market share
Clear shampoo
Rin
Comfort
Low growthrate&highmarketshare
Surfexcel
Ponds
Lipton
Closeup
Blueband
Lifebuoy soap
Rexona
Low growth rate & low market share
Wheel
Supreme tea
Lifebuoy shampoo
BCG

11. SWOTANALYSIS

12. s
Strong companyimage, Strong brandportfolio,
Quantity &variety, Effective & attractivepackaging,
Highqualitymanpower, Innovativeaspects, Corporate
behavior, Health&personalcareproducts
Highprices of products, Substitutesproducts, Lackof
controlinthemarket, Dualleadership, Decrease in
revenues, Reducedspending forresearch&development
New markets, Increase the volume of
production, Low incomeconsumers, Help
in improving people diet & daily lives
• Competitors(P&G, J&Jetc.), Political effects,
Legislative effect, Environmental effect,
Economiccrises, Increase in production & labor
cost

13. IFE / EFE MATRIX
IFE
Key Internal Strengths weight rating Weighted
score
Largest producer 0.1 4 0.4
Advance Technology 0.05 4 0.2
Supply ChainManagement 0.05 3 0.15
Financial Backing 0.2 4 0.8
Experience TopManagement 0.2 3 0.6
Key internal Weaknesses
Tall OrganizationStructure 0.1 2 0.2
High Operating Expenses 0.05 2 0.1
High Cost of Production 0.05 2 0.1
Long termstrategies 0.1 2 0.2
Emphasize on only few products 0.1 1 0.1
TOTAL 1.00 2.85
EFE
KEY EXTERNAL
OPPORTUNITIES
WEIGHT RATING WEIGHTED
AVEARGE
Hygiene Consciousness 0.2 4 0.8
Increasing Population 0.15 3 0.45
Innovation (R&D) 0.10 2 0.2
Product Diversification 0.10 4 0.4
Explore New Markets 0.05 4 0.2
KEY EXTERNAL THREATS
Product smuggling 0.15 1 0.15
Increase demand forAntibacterial Soaps 0.05 3 0.15
Counterfeit Products 0.10 3 0.3
International Trends 0.05 3 0.15
Local Competition 0.05 4 0.2
TOTAL 1.00 3.10

14. SPACE MATRIX

15. FINANCIAL POSITION RATINGS
 10% increase in net income +5
 Net sales were 15.7% +4
 ROA is declined to 24% +1
 ROI has declined +2
 Total asset turnover is 2times +3
AVERAGE +3
INDUSTRY POSITION RATINGS
 Consumption Oriented Culture. +4
 Rapid increase in raw material
cost.
+2
 Growth potential in rural and
developing countries market
+5
Profit potential is reducing due to
intense competition especially from
un-organized players
+2
AVERAGE +3.25
ENVIRONMENTAL STABILITY RATINGS
 Demand in the retail industry is price elastic -3
 Smuggled products and local competition. -3
 Legal, political and regulatory factors of -2
host country
 High rate of inflation effects demand. -3
 Law and Order Situation -2
AVERAGE -2.6
COMPETITIVE ADVANTAGE RATINGS
 Committed to business ethics, safety, health,
environment and community
-1
 Customer loyalty. -1
 Market share of 41%. -2
 Control over supplies and distribution -4
 Latest state of the art facilities and technology. -1
AVERAGE -1.8

17. DECISION STAGE:

18. INTEGRATI
ON
MARKET
DEVELOPMENT
KEY FACTORS WEIG
HT
AS TAS AS TAS
STRENGTHS
Largest producer 0.1 2 0.20 3 0.30
Advance Technology 0.05 3 0.15 3 0.15
Supply Chain
Management
0.05 2 0.10 3 0.15
Financial Backing 0.2 3 0.60 4 0.80
Experience Top
Management
0.2 - - 3 0.60
WEAKNESSES
Tall Organization
Structure
0.1 3 0.30 2 0.20
High Operating Expenses 0.05 2 0.10 3 0.15
High Cost of Production 0.05 - 2 0.10
Long termstrategies 0.1 3 0.30 2 0.15
Emphasize on only few
products
0.1 2 0.20 - -
OPPORTUNITIES
Hygiene
Consciousness
0.2 - - 2 0.20
Increasing Population 0.15 2 0.30 2 0.40
Innovation (R&D) 0.10 3 0.30 2 0.20
Product Diversification 0.10 4 0.40 1 0.05
Explore New Markets 0.05 - - 3 0.30
THREATS
Product smuggling 0.15 1 0.15 1 0.15
Increase demand for
Antibacterial Soaps
0.05 1 0.05 - -
Counterfeit Products 0.10 3 0.30 2 0.10
International Trends 0.05 4 0.20 - -
Local Competition 0.05 4 0.20 2 0.4
TOTAL 5.8 7.8
QSPM

19. THANKYOU