Unilever Pakistan is one of the largest consumer goods companies in Pakistan with many popular household brands. It has strong internal strengths like its large production scale, advanced technology, supply chain management, and financial backing. However, it also faces some internal weaknesses such as a tall organizational structure and high operating expenses. Externally, opportunities exist from trends like increasing hygiene consciousness and population growth. But threats include smuggling, increased competition, and changing international trends. Unilever will focus on strategies to leverage its strengths and opportunities like market development, product diversification, and innovation.

1. Strategic
Management
Report
UNILEVER PAKISTAN
SUBMITTED BY:
ANAMSHAHID

2. 1
Introduction
BACKGROUND:
Incorporated in1948, we,UnileverPakistanLimited,are one of the most prominentmultinationalsin
the country today.
Unileverhasa longlistof brands suchas Surf,Vim, Rin,Lifebuoy,Sunlight,Lux, Rexona,Sunsilk,Close-
Up, Blue-Band,Dalda,Planta,Lipton’sYellow Label, andBrook Bond’sSupreme etc.whichare common
house holdnamesinPakistan. The Company’sfactoryatRahimYar Khanwas one of the firstindustrial
unitsto be constructedafterthe creationof Pakistan.Asthe consumerbase expanded overthe years
and the CompanyenteredintonewproductlineslikePersonal ProductsandMargarine,itinvested
furtherinthe installationof modern manufacturingfacilitiesincludingafactoryat Karachi.Today,the
Company issuinglateststate-of-the-arttechnologyforproducinghighquality products.In 1995, the
CompanyestablishedanewfactorynearLahore to manufacture the Wall’srange of ice creams, which
have become popularwithinashorttime.In1996, the presentgroup – Unileveracquiredthe Polka
Group that produced ice creams.In1999, Pakistanindustrial promoters(Private)Limited,ownersof
‘Polka’brandsof Ice Cream wasmergedwith Lever.In orderto leverage the synergiesof Unilever’s
international brand strength,marketedge andcorporate image,LeverBrothersPakistanLtd.changedits
name to UnileverPakistanLtd.,inAugust2002

3. 2
OUTLINE
INPUT STAGE:
Internal analysis
External analysis
MATCHING STAGE
TOWS matrix
BCGmatrix
SPACEmatrix
IE Matrix
GRAND matrix
DECISION STAGE:
QSPM

4. 3
Vision statement
We help people meet needs for nutrition, hygiene and wellbeing, with brands
that help people look good, feel good and get more out of life.
CRITICAL ANALYSIS OF VISION
The vision that is mentioned on their website predominantly seems to be fulfilling
the requirement of mission rather than vision if taken in literal sense, but if taken
subjectively it does address the vision statement. After a careful and thorough
study of Unilever and especially whatever is mentioned on their website we
would like to proposethe following vision and Mission Statements.
PROPOSED VISION STATEMENT
Lead the FMCG MARKET by achieving significant growth objectives by
developing new ways of doing business while decoupling growth from
environmental impact for the wellbeing of humans in general and thus
by directing them towards a healthy, hygienic lifestyle.
Our Mission
Vitality is at the heart of everything we do. It's in our brands, our people and our
approach to business.
PROPOSED MISSION STATEMENT
Our Philosophysetsoutouraspirationsinrunningourbusiness.It'sunderpinnedbyourcode of
businessPrincipleswhichdescribesthe operational standardsthateveryone atUnileverfollows,
wherevertheyare inthe world.The code alsosupportsour approachto governance, corporate
responsibilityanddefinesourstate of existence whichtohelppeople aroundthe worldmeeteveryday
needsfornutrition,hygiene andwellbeing,withbrandsthathelppeople lookgood,feelgoodandget
more out of life and thisrequiresrequires"the higheststandardsof corporate behaviortowards
everyone we workwith,the communitieswe touch,andthe environmentonwhichwe have animpact."

5. 4
INTERNAL STRENGTHS:
 LargestProducer
o UnileverPakistanLimitedisthe largestproducerof consumerproductsinPakistanand
has strongbrands ineveryfieldsuchasClose Up,Dalda,Surf,Lifebuoy,Lux,etc.
 Advance technology
o UnileverPakistanLimitedisthe onlycompanyinPakistanwhichhasitsowncorner
researchdepartment
 Supply ChainManagement
o It has the largestandefficientdistributionnetworkthenanyitscompetition
 Financial Backing
o The company isverystrongfinancially
 Experience TopManagement
o UnileverPakistanLimitedenjoysthe servicesof highlyprofessional managementinthe
area of sales,marketing,technical andproduction
INTERNAL WEAKNESSES
 Tall OrganizationStructure
o Due to tall structure it isdifficulttohandle the organization easily.
 HighOperatingExpenses
o No doubtitssalesare large but insame time itsoperatingexpensesare huge.
 HighCost of Production
o As inthe productionunileverkeepsitsenvironmentveryneatandclean,and
produce highqualityproductssocost of productionisveryhigh.Increased
importduties are alsoaddingto the pricesof the products
 Long termstrategies
o UnileverPakistanLimitedgoforlongtermstrategiesforall theirproduct
categorieswhichprove tobe a weaknesswithchange inthe circumstancesand
taste,trendsof people
 Emphasize ononlyfewproducts
o Emphasizingonlyfew productswhile ignoringotherswhichcouldgive them
potential marketsharese.g.beveragessection

6. 5
IFE MATRIX
Key Internal Strengths weight rating Weighted
score
Largestproducer 0.1 4 0.4
Advance Technology 0.05 4 0.2
SupplyChainManagement 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
HighOperatingExpenses 0.05 2 0.1
HighCost of Production 0.05 2 0.1
Long termstrategies 0.1 2 0.2
Emphasize ononlyfewproducts 0.1 1 0.1
TOTAL 1.00 2.85
EXTERNAL AUDIT
External opportunities:
 Hygiene Consciousness
o People are becomingmore consciousabouttheirhealthandare becomingmore
conscious aboutbrands.Asunileverhasgoodpositioninginconsumer’smindso
itcan increase theirmarketshare tolaunchproductsinhygieniccategory.
 IncreasingPopulation
o As populationisincreasingitmayleadtocreat valuable opportunitytoenhance
the growthof unilever.
 Innovation(R&D)
o Innovationinunilevermaycreatopportunitytomore penetrate inthe market

7. 6
 ProductDiversification
o Theyhave capital to investtheycanexplore new productcategoriese.g.infood
and beveragestheycandevelopnew productslikeRafhanhaslaunchedcustard,
jelly,kheermix,rasmalai mix,etc.These productscanprove a“cash cows”as
customerinPakistanalwayswelcome fooditemsespeciallytheywill welcome
due to brand image of Blue Bandand Daldaghee infoodcategory anddue to
Liptonand Supreme inbeveragescategory.
 Explore NewMarkets
o UnileverPakistanhasopportunitytodevelopnew marketsbyidentifyingthe
needsof customers
EXTERNAL THREATS:
 Productsmuggling
o unileverPakistanLimitedhasnotbeenable toplace anycheck onits smuggling
shampoosintoPakistane.g.IndonesianSunsilkismade accordingtothe
demographicof Indonesia,whenitwillbe usedinPakistanitwill damage the
hair of people,whichdetoriatethe brandimage anddecreasesthe local salesof
UnileverPAKISTAN.
 Increase demandforAntibacterialSoaps
o Demandforantibacterial soapsisincreasing whileunileverhasnotyetbeen
introducedanyantibacterial soap,itmayswitchthe brandloyalsof Unilever
 CounterfeitProducts
o There may be imitationof productsinPakistanwhichmaydamage the goodwill
of UnileverPakistanltd.
 International Trends
o People of Pakistanprefertopurchase foreignproducts,itmaybe prove to be a
threatfor unilever
 Local Competition
o Numberof local companiesproducingdetergentsatlow price.

8. 7
EFE MATRIX
KEY EXTERNAL OPPORTUNITIES WEIGHT RATING WEIGHTED
AVEARGE
Hygiene Consciousness 0.2 4 0.8
IncreasingPopulation 0.15 3 0.45
Innovation(R&D) 0.10 2 0.2
ProductDiversification 0.10 4 0.4
Explore New Markets 0.05 4 0.2
KEY EXTERNAL THREATS
Productsmuggling 0.15 1 0.15
Increase demandforAntibacterialSoaps 0.05 3 0.15
CounterfeitProducts 0.10 3 0.3
International Trends 0.05 3 0.15
Local Competition 0.05 4 0.2
TOTAL 1.00 3.10

9. 8
PORTERS 5 FORCES ANALYSIS
LOW THREAT OF OF ENTRY:
• Time and cost of entry
• Specializedtechnology
• Economiesof scale
• Large industrysize
• Brand strength
HIGH THREAT OF SUBSTITUTE PRODUCTS:
• Low switchingcost
• Low alternatives price
• Substitutesquality
LOW BARGAINING POWEROF SUPPLIERS
• Large numberof suppliers
• Highcompetitionamongsuppliers
LOW BARGAINING POWER OF BUYERS
• Large numberof buyers
• Brand identity
HIGH COMPETITIVE RIVALRY
• Numberandsize of competitors
• Requiredstrongdistributionnetwork
• Customersare loyal inexistingbrands

10. 9
PEST ANALYSIS
POLITICAL
 UNILEVER issubjectto lawsand regulationsbothlocallyandglobally
 Volatile of emergingmarket
 Involvementof governmentandregulatoryauthorities
Economic
 Economicrecessionaffectscustomersbehavior
 Reducedpurchasingpower
Socio cultural
 Sociallyresponsible company
 Consciousabouthealthandsafetyof itsemployeesandcustomer
Technology
 Developmentof Ebusiness
 HIGH LEVEL OF AUTOMATION
Unilevers competitors
Proctor & gamble:
P&G commenced operations in Pakistan in 1991. Headquartered in Karachi, our goal
was to become the finest global consumer goods company operating locally in Pakistan
Procter & Gamble Co., also known as P&G, is an American multinational consumer
goods company headquartered in downtown Cincinnati, Ohio, United States, founded
by WilliamProcter and James Gamble, both from the United Kingdom. Its products
include cleaning agents, and personal care products. Prior to the sale of Pringles to the
Kellogg Company, its product line also included foods and beverages
NESTLE
Nestlé inPakistanisoperatingsince 1988 undera jointventure withMilkPakltdandtookover
managementin1992.
Nestlé Pakistantodayisthe leading Food&BeveragesCompanyinPakistanwithkeyfocuson Nutrition,
Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the
consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health & Wellness

11. 10
CPM MATRIX
UNILVER NESTLE P&G
WEIGHT RATING W.SCORE RATING W.SCORE RATING W.SCORE
QUALITY PRODUCT 0.2 3 0.6 2.5 0.5 3.5 0.7
ATTRACTIVEPRICES 0.2 4 0.8 4 0.8 3 0.6
BRANDEQUITY 0.1 3 0.3 4 0.4 3.5 0.35
DISTRIBUTION CHANNEL 0.1 4 0.4 4 0.4 4 0.4
INNOVATION ANDR&D 0.2 2 0.4 4 0.8 3 0.6
EMERGING MARKET
PENETRATION
0.2 4 0.8 3.5 0.7 3 0.6
TOTAL 1.00 3.3 3.6 3.25

12. 11
TOWS MATRIX
strengths weaknesses
Largestproducer Tall OrganizationStructure
Advance Technology HighOperatingExpenses
SupplyChainManagement HighCost of Production
Financial Backing Long termstrategies
Experience TopManagement Emphasize ononlyfew products
Opportunities SO Strategies WO strategies
Hygiene Consciousness  Create awareness among
customersabout hygiene.
 Accommodate rural demand
by yoursupplynetwork
 Launch new products for
lowerclass
 Accommodate local demand
by jointventures
 cater new marketsandnew
segments
IncreasingPopulation
Innovation(R&D)
ProductDiversification
Explore NewMarkets
Threats ST Strategies WT Strategies
Productsmuggling
 Control Cost
 Reduce highoperating
expense andcostof
production forstrongposition
againstcompetitors
Increase demandforAntibacterial
Soaps
CounterfeitProducts
International Trends
Local Competition

13. 12
BCG MATRIX
 LUX
 FAIR& LOVELY
 SUNSILK
 RAFHAN
 WALLS
 SUPREME
 KNORR
 LIFEBUOY
 SURFEXCEL
 CLOSEUP
 LIPTON
 BLUE BAND
 PONDS
 COMFORT
 CLEAR
MARKET SHARE
MARKETGROWTH

14. 13
Question mark:
Supreme of unilever come in this region which has low market share
but yet competing in high growth industry.Cash need is high and cash
generation is low. its up to the organization whether to strengthen this
brand by an intensive strategy or to sell them.
STAR:
Brands come in this region shows best long run opportunities for
growth and profitability.it has high market growth as well as high
market share. Intensive and integration strategies are suitable for this
brands
CASH COWS:
They create cash in excess of their needs, they should be managed to
maintain their long position. Product development and diversification
are suitable strategies.
DOG:
Organization should decide whether to divest these brands or liquidate.

15. 14
IE Matrix
IFE total weighted score
STRATEGIES APPLIED:
Grow and build
 Integration strategies
 Market penetration
 Market development
 Product development
I II
Unilever
III
IV V VI
VII VIII IX
EFEtotalweightedscore
4.0 3.0 2.0 1.0
1.0
2.0
3.0

16. 15
SPACE MATRIX:
FINANCIAL POSITION RATINGS
 10% increase in net income
 Net sales were 15.7%
 ROA is declined to 24%
 ROI has declined
 Total asset turnover is 2times
+5
+4
+1
+2
+3
AVERAGE +3
INDUSTRY POSITION RATING
 Consumption Oriented Culture.
 Rapid increase in raw material cost.
 Growth potential in rural and
developing countries market.
 Profit potential is reducing due to
intense competition especially from un-
organized players.
+4
+2
+5
+2
AVERAGE +3.25

17. 16
ENVIRONMENTAL STABILITY RATING
 Demand in the retail industry is price
elastic.
 Smuggled products and local
competition.
 Legal, political and regulatory factors of
host country
 High rate of inflation effects demand.
 Law and Order Situation
-3
-3
-2
-3
-2
AVERAGE -2.6
COMPETITIVE ADVANTAGE RATING
 Committed to business ethics, safety,
health, environment and community.
 Customer loyalty.
 Market share of 41%.
 Control over supplies and distribution.
 Latest state of the art facilities and
technology.
-1
-1
-2
-4
-1
AVERAGE -1.8

18. 17
SPACE MATRIX:
X axis: IP+CA=3.25-1.8=1.5
Y axis: FS+ES=3-2.6=0.4
FP
(1.5, 0.4)
CP IS
ES
AGGRESSIVE STRATEGY
Integration strategy,Market development,Product development

19. 18
Grand strategy
Rapid Market Growth
II I
UNILEVER
WeakCompetitivePosition StrongCompetitivePosition
III IV
Slow Market Growth
STRATEGIES FOR QUADRANT I:
 MARKET DEVELOPMENT
 MARKET PENETRATION
 PRODUCT DEVELOPMENT
 INTEGRATION STRATEGIES
 RELATED DIVERSIFICATIO

20. 19
QUANTITIVE STRATEGIC PLANNING MATRIX
INTEGRATION MARKET
DEVELOPMENT
KEY FACTORS WEIGHT AS TAS AS TAS
STRENGTHS
Largestproducer 0.1 2 0.20 3 0.30
Advance Technology 0.05 3 0.15 3 0.15
SupplyChainManagement 0.05 2 0.10 3 0.15
Financial Backing 0.2 3 0.60 4 0.80
Experience TopManagement 0.2 - - 3 0.60
WEAKNESSES
Tall OrganizationStructure 0.1 3 0.30 2 0.20
HighOperatingExpenses 0.05 2 0.10 3 0.15
HighCost of Production 0.05 - 2 0.10
Long termstrategies 0.1 3 0.30 2 0.15
Emphasize ononlyfewproducts 0.1 2 0.20 - -
OPPORTUNITIES
Hygiene Consciousness 0.2 - - 2 0.20
IncreasingPopulation 0.15 2 0.30 2 0.40
Innovation(R&D) 0.10 3 0.30 2 0.20
ProductDiversification 0.10 4 0.40 1 0.05
Explore NewMarkets 0.05 - - 3 0.30
THREATS
Productsmuggling 0.15 1 0.15 1 0.15
Increase demandforAntibacterialSoaps 0.05 1 0.05 - -
CounterfeitProducts 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

21. 20
IMPLEMENTATION
Appropriate strategy for UNILEVER is Market Development
UNILEVER should remain in the present business and should introduce present products in new
geographical area.Following are necessary factors that must be present while choosing market
development strategy:
 UNILEVER has its own strong distribution channel.
 UNILEVER is very successful at what it does.
 Untapped rural market and market of developing countries exist for UNILEVER to cover.
 UNILEVER is a strong MNE in Pakistan. It has abundant resources both financial and
human, so it can easily expand geographically. Here we are not concerned about
expansion of operating activities to new geographical area. We are particularly
concerned about capturing untapped market. It is up to UNILEVER whether it is decided
to start operating in new areas too or just introduce products by using its strong channel
of distribution.
 UNILEVER is operating globally. It means that FMCG is such an industry which can be
grown globally
OBJECTIVES:
Unilever is already doing well so we need to focus on the following areas.
 Sustain the brand image.
 Launch affective and aggressive market campaign.
 Ensure tough competition to competitor’s strategies
 To enter in lower middle class by marketing their products with low price.

22. 21
EVALUATION
Reviewing Bases of Strategy
How have competitors reacted to our strategies?
How have competitors' strategies changed?
Have major competitor's strengths and weaknesses changed?
Why are competitors making certain strategic changes?
Why are some competitor's strategies more successful than others?
How satisfied are our competitors with their present market positions and profitability?
How far can our major competitors be pushed before retaliating?
How could we more effectively cooperate with our competitors?
Reviewing SWOT
Are our internal strengths still strengths?
Have we added other internal strengths? If so, what are they?
Are our internal weaknesses still weaknesses.
Do we now have other internal weaknesses? If so, what are they?
Are our external opportunities still opportunities?
Are there now other external opportunities? If so, what are they?
Are our external threats still threats?
Are there now other external threats? If so, what are they?
Are we vulnerable to a hostile takeover?
Measuring Organizational Performance
Some key financial ratios that are particularly useful as criteria for strategy evaluation
are as follows.
Return on investment (RIO)
Return on equity (ROE)
Profit margin
Market share
Sales growth
Asset growth

23. 22
In terms of Strategy :
Is the strategy internally consistent?
Is the strategy consistent with the environment?
Is the strategy appropriate in view of available resources?
Does the strategy involve an acceptable degree of risk?
Does the strategy have an appropriate time framework?
Is the strategy workable?