Introduction

BACKGROUND:

Incorporated in 1948, we, Unilever Pakistan Limited, are one of the most prominent multinationals in
the country today.

Unilever has a long list of brands such as Surf, Vim, Rin, Lifebuoy, Sunlight, Lux, Rexona, Sunsilk, Close-
Up, Blue-Band, Dalda, Planta, Lipton’s Yellow Label, and Brook Bond’s Supreme etc. which are common
house hold names in Pakistan. The Company’s factory at Rahim Yar Khan was one of the first industrial
units to be constructed after the creation of Pakistan. As the consumer base expanded over the years
and the Company entered into new product lines like Personal Products and Margarine, it invested
further in the installation of modern manufacturing facilities including a factory at Karachi. Today, the
Company issuing latest state-of-the-art technology for producing high quality products. In 1995, the
Company established a new factory near Lahore to manufacture the Wall’s range of ice creams, which
have become popular within a short time. In1996, the present group – Unilever acquired the Polka
Group that produced ice creams. In 1999, Pakistan industrial promoters (Private) Limited, owners of
‘Polka’ brands of Ice Cream was merged with Lever. In order to leverage the synergies of Unilever’s
international brand strength, market edge and corporate image, Lever Brothers Pakistan Ltd. changed its
name to Unilever Pakistan Ltd., in August 2002

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 OUTLINE
INPUT STAGE:
Internal analysis

External analysis

MATCHING STAGE
TOWS matrix

BCG matrix

SPACE matrix

IE Matrix

GRAND matrix

DECISION STAGE:
QSPM

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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 propose the 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 Philosophy sets out our aspirations in running our business. It's underpinned by our code of
business Principles which describes the operational standards that everyone at Unilever follows,
wherever they are in the world. The code also supports our approach to governance, corporate
responsibility and defines our state of existence which to help people around the world meet everyday
needs for nutrition, hygiene and wellbeing, with brands that help people look good, feel good and get
more out of life and this requires requires "the highest standards of corporate behavior towards
everyone we work with, the communities we touch, and the environment on which we have an impact."

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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 Organization Structure
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 of Production

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

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 IFE MATRIX
Key Internal Strengths weight rating Weighted
score
Largest producer 0.1 4 0.4

Advance Technology 0.05 4 0.2

Supply Chain Management 0.05 3 0.15

Financial Backing 0.2 4 0.8

Experience Top Management 0.2 3 0.6

Key internal Weaknesses

Tall Organization Structure 0.1 2 0.2

High Operating Expenses 0.05 2 0.1

High Cost of Production 0.05 2 0.1

Long term strategies 0.1 2 0.2

Emphasize on only few products 0.1 1 0.1

TOTAL 1.00 2.85

EXTERNAL AUDIT
External opportunities:
 Hygiene Consciousness
o People are becoming more conscious about their health and are becoming more
conscious about brands. As unilever has good positioning in consumer’s mind so
itcan increase their market share to launch products in hygienic category.
 Increasing Population
o As population is increasing it may lead to creat valuable opportunity to enhance
the growth of unilever.
 Innovation (R&D)
o Innovation in unilever may creat opportunity to more penetrate in the market

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  Product Diversification
o They have capital to invest they can explore new product categories e.g. in food
and beverages they can develop new products like Rafhan has launched custard,
jelly, kheer mix, rasmalai mix, etc.These products can prove a “cash cows” as
customer in Pakistan always welcome food items especially they will welcome
due to brand image of Blue Band and Dalda ghee in food category and due to
Lipton and Supreme in beverages category.

 Explore New Markets

o Unilever Pakistan has opportunity to develop new markets by identifying the
needsof customers

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 sale s 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 prefer to purchase foreign products, it may be prove to be a
threat for unilever
 Local Competition
o Number of local companies producing detergents at low price.

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 EFE MATRIX
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 for Antibacterial 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

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 PORTERS 5 FORCES ANALYSIS

LOW THREAT OF OF ENTRY:

• Time and cost of entry

• Specialized technology

• Economies of scale

• Large industry size

• Brand strength

HIGH THREAT OF SUBSTITUTE PRODUCTS:

• Low switching cost

• Low alternatives price

• Substitutes quality

LOW BARGAINING POWER OF SUPPLIERS

• Large number of suppliers

• High competition among suppliers

LOW BARGAINING POWER OF BUYERS

• Large number of buyers

• Brand identity

HIGH COMPETITIVE RIVALRY

• Number and size of competitors

• Required strong distribution network

• Customers are loyal in existing brands

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 PEST ANALYSIS
POLITICAL

 UNILEVER is subject to laws and regulations both locally and globally

 Volatile of emerging market
 Involvement of government and regulatory authorities

Economic

 Economic recession affects customers behavior

 Reduced purchasing power

Socio cultural

 Socially responsible company

 Conscious about health and safety of its employees and customer

Technology
 Development of E business
 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 William Procter 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 in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over
management in 1992.

Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on 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

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 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
ATTRACTIVE PRICES 0.2 4 0.8 4 0.8 3 0.6
BRAND EQUITY 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 AND R&D 0.2 2 0.4 4 0.8 3 0.6
EMERGING MARKET 0.2 4 0.8 3.5 0.7 3 0.6
PENETRATION

TOTAL 1.00 3.3 3.6 3.25

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TOWS MATRIX
Opportunities
Hygiene Consciousness
Increasing Population
Innovation (R&D)
Product Diversification
Explore New Markets
Threats
Product smuggling
Increase demand for Antibacterial
Soaps
Counterfeit Products
International Trends
Local Competition
strengths
Largest producer
Advance Technology
Supply Chain Management
Financial Backing
Experience Top Management
SO Strategies
 Create awareness among
customers about hygiene.
 Accommodate rural demand
by your supply network
 Launch new products for
lower class
ST Strategies
 Control Cost
weaknesses
Tall Organization Structure
High Operating Expenses
High Cost of Production
Long term strategies
Emphasize on only few products
WO strategies
 Accommodate local demand
by joint ventures
 cater new markets and new
segments
WT Strategies
 Reduce high operating
expense and cost of
production for strong position
against competitors
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 BCG MATRIX

 SUPREME
 LUX
 FAIR & LOVELY
 SUNSILK
 RAFHAN
 WALLS
MARKET GROWTH

 COMFORT
 KNORR  CLEAR
 LIFEBUOY
 SURFEXCEL
 CLOSEUP
 LIPTON
 BLUE BAND
 PONDS
MARKET SHARE

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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.

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 IE Matrix

IFE total weighted score

4.0 3.0 2.0 1.0

I II III
Unilever
EFE total weighted score

3.0
IV V VI

2.0
VII VIII IX

1.0

STRATEGIES APPLIED:
Grow and build
 Integration strategies
 Market penetration
 Market development
 Product development

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 SPACE MATRIX:
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 RATING

 Consumption Oriented Culture. +4
 Rapid increase in raw material cost. +2
 Growth potential in rural and +5
developing countries market.
 Profit potential is reducing due to +2
intense competition especially from un-
organized players.
AVERAGE +3.25

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COMPETITIVE ADVANTAGE RATING
 Committed to business ethics, safety, -1
health, environment and community.
 Customer loyalty. -1
 Market share of 41%. -2
 Control over supplies and distribution. -4
 Latest state of the art facilities and -1
technology.
AVERAGE -1.8

ENVIRONMENTAL STABILITY RATING

 Demand in the retail industry is price -3
elastic.
 Smuggled products and local -3
competition.
 Legal, political and regulatory factors of -2
host country
 High rate of inflation effects demand. -3
 Law and Order Situation -2
AVERAGE -2.6

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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

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 Grand strategy
Rapid Market Growth

II I

UNILEVER

Weak Competitive Position Strong Competitive Position

III IV

Slow Market Growth

STRATEGIES FOR QUADRANT I:

 MARKET DEVELOPMENT
 MARKET PENETRATION
 PRODUCT DEVELOPMENT
 INTEGRATION STRATEGIES
 RELATED DIVERSIFICATIO

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 QUANTITIVE STRATEGIC PLANNING MATRIX
INTEGRATION MARKET
DEVELOPMENT
KEY FACTORS WEIGHT 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 term strategies 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

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 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.

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 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

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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?

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