Professional Documents
Culture Documents
Final Project Report
Final Project Report
Project Report
Company Name
Unilever Pakistan
Submitted To
Bilal Hussain(034)
Rameez Tariq(130)
M. Adnan Fraz(080)
Tashfeen Ahmed(175)
Muhammad Naeem(097)
Dated:04 January,2010
Table of Contents
i. Executive Summary 3
ix. Conclusion 19
xi. References 21
xii. Appendixes 22
Executive Summary
Unilever Pakistan’s two food products are selected for project which are:
Introduction
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas
for Sunlight Soap – his revolutionary new product that helped popularise
cleanliness and hygiene in Victorian England. It was 'to make cleanliness
commonplace; to lessen work for women; to foster health and contribute to
personal attractiveness, that life may be more enjoyable and rewarding for the
people who use our products'.
In a history that now crosses three centuries, Unilever's success has been
influenced by the major events of the day – economic boom, depression, world
wars, changing consumer lifestyles and advances in technology. And throughout
we've created products that help people get more out of life – cutting the time
spent on household chores, improving nutrition, enabling people to enjoy food and
take care of their homes, their clothes and themselves.
Today, Unilever still believes that success means acting with 'the highest standards
of corporate behaviour towards our employees, consumers and the societies and
world in which we live'. Over the years we've launched or participated in an ever-
growing range of initiatives to source sustainable supplies of raw materials, protect
environments, support local communities and much more.
Through this timeline you'll see how our brand portfolio has evolved. At the
beginning of the 21st century, our Path to Growth strategy focused us on global
high-potential brands and our Vitality mission is taking us into a new phase of
development. More than ever, our brands are helping people 'feel good, look good
and get more out of life' – a sentiment close to Lord Leverhulme's heart over a
hundred years ago.
19th century:Although Unilever wasn't 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.
21th 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 21st century-
consumers with its Vitality mission.
Lever Brothers Pakistan Limited was established inPakistan in 1948. The town
of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory.
Unilever Pakistan is the largest FMCG company in Pakistan, as well as one of the
largest multinationals operating in the country. Now operating six factories at
different locations around the country. The Unilever's Head Office was shifted
to Karachi from the Rahim Yar Khan site in the mid 60's.
Lipton Tea
Lipton was created at the end of the 19th century by Sir Thomas
Lipton in Glasgow, Scotland. His enterprise soon flourished and he established a
chain of grocers, first across Glasgow, the rest of Scotland, until finally he had
stores throughout Britain.
Under the slogan "direct from the tea gardens to the tea pot", this entrepreneurial
businessman wanted to make tea a popular and approachable drink for everyone –
with a high quality but reasonably priced product.
In 1929, the Lipton grocery retail business was one of the companies that merged
with Home and Colonial Stores to form a food group with over 3,000 stores. The
group traded as Home and Colonial Stores until 1961 when it took the name of
Allied Stores.
Lipton's became a supermarket chain focused on small towns, before Allied's 1982
acquisition by Argyll Group: the supermarket business was rebranded as Presto
during the 1980s.
Meanwhile, the Lipton tea business was acquired by consumer goods
company Unilever in a number of separate transactions, starting with the purchase
of the US and Canadian Lipton business in 1938 and completed in 1972 when
Unilever bought the remainder of the global Lipton business.
In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton
Partnership, for the marketing of ready to drink (bottled and canned) teas in North
Due to the 2008 Chinese milk scandal, food giant Unilever started recalling its
Lipton milk tea powder in both Hong Kong and Macau on 30 September 2008.
The tea powder which used Chinese milk powder as its raw ingredient was
recalled after the company's internal checks found traces of melamine in the
powder.
Lipton's main pillar brands are Lipton Yellow Label and Lipton Iced Tea. Other
product lines exist as well, like the Lipton pyramid range in Europe and North
America, and Lipton Milk Tea in East Asia. In 2008 the brand launched Lipton
Linea in Western Europe, a green tea variety with a higher level of catechins,
which the company claims can help one lose weight.
Supreme Tea
Brooke Bond Supreme is part of life for the Pakistani consumer, bringing families
closer together with its rich taste and traditions
The success of Brooke Bond Supreme is based on this very insight, since tea is a part of
the social fabric of Pakistanis. Brooke Bond Supreme was launched in Pakistan in 1984.
There are many different types of tea in the world, including black, green, oolong,
white and yellow tea. In Pakistan, mainly black and green tea is consumed.
Unilever is the world’s leading tea leaf company (3 times the size of its nearest
competitor).
Supreme is Pakistan’s largest brand of tea, with over 30 million cups consumed
daily and is made primarily from the world’s finest Kenyan teas.
Supreme’s strong, rich taste and colour is ideally suited to the Pakistani palate,
which is why it is Pakistan’s favourite cup of tea.
Unilever Company
Net profit in 2008 Euro 5285 millions
$ 8323 million
Colgate Company
Price Strategy
Unilever is charging comparatively high prices for Lipton Yellow Label tea
because of its well built reputation and quality product. They have major share in
the market and they are at top although they are facing competition but due to their
name in market they are earning higher profits.
Price Analysis
Distribution Strategies
They have distribution offices in different cities from where product is distributed
to whole sellers. They have divided areas into regions and then made distribution
channels according to the demand of different regions and in this way their
distribution network is working successfully allover the Pakistan. Following is the
detail of distribution channel.
Distribution Channels
• Head quarter in Karachi
• It has 650 distribution offices all over Pakistan.
• 3 manufacturing Units in Khi, Khaniwal & Raheem Yaar Khan.
• 7 distribution channels in Lahore alone.
• 25 outlets in various places of Lahore.
• .
Promotion Strategies
They are promoting there product by using different sources like:
• Caps
• Cups
• Basant festival
• Vans
• Printed Helmet
• Discounts
• Gifts
So in this way they are promoting there product.
Advertising Strategies
Various advertisement means are used by company to advertise their product and
they are given below:
• Print Media
• TV Satellite
• Billboards
• Banners
They are using news papers for advertisements along with television other s are
billboards and banners. So these are means of advertisement which are used by
company to advertise their product.
Product Strategy
The company has positioned its product in the minds of the consumer as:
• Health caring.
• Adventurous.
• Alert.
• Active.
• Young.
• Vibrant
The company also made changes in the design and packing of its product to attract
customers and to retain existing customers.
The company is trying to retain its customer along with getting new customers so
they are also engage in the activity of personal selling. Many times there sale
representatives are selling the product in different bazaars and hotels etc in order
to analyze market situations and people’s behaviors regarding their product.
Pricing Strategy
Lipton is charging high prices while their competitors low prices. There is market
segment that is price conscious so Lipton should have stable prices.
Promotion Strategy
They can have a scheme of lucky draw that will increase sales and retention of the
customer. They should go institutes and give them samples. They can offer
discount that purchase bulk quantity like hotels.
Advertising Strategy
They can give electronic billboards to retailers that will motivate them and it is
also source of advertising, budget for this purpose should be increase
Conclusion:
Lipton is one of the strongest world tea brands. Lipton strategies are working very
well to capture market share. Lipton current strategy are no doubt working very
well but slight changes can make Lipton Pakistan best tea brand.
• Lipton should also focus on price strategy to capture the lower segments of
the market.
References:
www.unilever.com
www.lipton.com.pk
www.wikipedia.com/unilever
www.answershare.com
Appendices:
Company profile
Annual Reports