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INSTITUTE OF BUSINESS AND

TECHNOLOGY (BIZTEK)

REPORT ON SUNSILK

SUBMITTED BY:

UMAIR SULTAN BB-1410


SHAZAD KHAN BB-1495
NAMEER KHAN BB-1414

SUBMITTED TO:

MISS DURIA HASSAN

10-4-2008

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ACKNOWLEDGMENT

My first and foremost humble and gratitude to


“ALLAH” the Almighty for giving me the valor to
remain dedicated to make this term report.

This underlying term report is based on the


analysis of different marketing functions of Unilever
Brothers Pakistan Limited. Applied on “Sunsilk”.

In making this term report, we collected the


whole data from publications, internet and various
international business magazines.

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TABLE OF CONTENTS

CONTENTS PAGE #

1. Unilever Brothers Pakistan Limited.


03

2. Company Objectives. 04

3. Sunsilk Mission Statement.


05

4. Product 06

5. Price 11

6. Promotion 12

7. Distribution
15

8. S.W.O.T Analysis
16

9. Recommendations 19

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UNILEVER PAKISTAN LIMITED

Unilever Pakistan limited formerly “lever brother


Pakistan”, the largest consumer goods producing company in
Pakistan, was incorporated here in 1948 and started building
their factory at Rahim Yar Khan. This factory was inaugurated
formally in 1951 by the then Governor General of Pakistan.
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 Rahimyar Khan site in the mid 60's.

UPL moved into the personal care product business in


1981. It has gained a major market share due to the
introduction of quality brands like Sunsilk, Lifebuoy, Lux
and Fair & Lovely.

Unilever was the recipient of Management Association


of Pakistan (MAP) and Karachi Stock Exchange awards in
recognition of its performance. For the purpose of MAP
award, it was judged the best among the companies that
have performed well in the areas of Financial Discipline,
Management practices such as Risk Management, Corporate
Governance, Social Responsibility and Research &
Development.

Unilever is committed to investment and modern


production facilities thereby contributing to economic growth
and employment opportunities.

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In June 2007, Unilever Overseas Holding Limited, a
wholly-owned subsidiary of Unilever PLC, UK, the ultimate
parent company, purchased all the shares held by the Punjab
government.

COMPANY OBJECTIVES

Neither our own nor our major competitors’ objectives


are simple or obvious. There are many choices between
short term and long-term profit, between growth and cash
flow, between growth in assets and growth in earnings,
between proportions of earnings paid to share holders as
dividends or reinvested.

It is reasonable to assume that these different


objectives of different competitors predetermine some of
their strategies and tactical behavior.

• Assess the concept of product acceptability, credibility


and perceived benefits.

• Examine consumer’s assessment of the product, in terms


of product performance and related benefits.

• Explore consumers’ reaction towards packaging.

• Understand consumers’ perception of quality


advertisement in terms of its impact.

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MISSION STATEMENT

The New Sunsilk Shampoo aims at fulfilling the needs of


its target market by offering a high quality, assessment of
the concept in terms of its acceptability, credibility and
perceived benefits, that it offers a healthy choice shampoo
alternative to the targeted consumer. The theme of the
product shall be anchored around the motto:

“Softness, shine and manageability of Hair”

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INTRODUCTION OF THE PRODUCT

Product History:
Sunsilk was introduced in 1989 in Pakistan with three
variants related to hair types. Endorsement of a hair stylist
was the first step in building the image of the brand as a hair
care expert.

With the competition from local and multinational


companies due to rationalization of excise duties, Sunsilk has
not been able to gain the desired share in the market. To
strengthen the brand, UPL decided to re-launch Sunsilk with
a premium range consisting of four variants in January 2000.
In 2001, due to the constant research of their affiliated hair

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care institutes, the need of a shampoo for oily hair was
observed and they launched a new variant of Sunsilk having
citrus extracts. All Sunsilk variants have been formulated
especially keeping in view the Pakistani consumer hair
composition and hair care needs so as to provide the
consumer with a complete range for all hair types.

Target Market:
Their main target market is females between the age
group 16-40 belonging to the two upper income classes. But
in their promotional activities, they cover the whole market
irrespective of these classes.

Competitors’ Review:
The major competitor of Sunsilk in the rural areas is Bio
Amla while in the urban areas; Sunsilk faces cutthroat
competition with P&G.

The main advantage of Bio Amla is its Herbal


composition and low price, which attract the rural market,
but in terms of quality, they are far behind Sunsilk.

In urban areas, Sunsilk is acting as a market challenger


against P&G. Sunsilk has got the advantage of keeping their
prices lower than P&G shampoos but P&G has captured a
bigger share of the market due to its intense promotional
activities.

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Packaging:
The packaging design for the New Sunsilk range is
extremely exciting and has been developed by Brown Inc.
UK. The packaging makes the brand look expert and modern.
This packaging makes the brand look more contemporary
and hi-tech. It ensures more emphasis on the variants that
have already been a part of the product but never been
communicated to the customer that well. This new
packaging has clearly identified that there is a separate
product for each hair type.

Currently, the main range consists of:

• SunSilk Softening Anti-Dandruff Shampoo:

SunSilk Softening Anti-Dandruff Shampoo is a


unique pearlized formulation with Chamomile &
Vitanol to drive out dandruff and nourish your hair
back to its natural beauty.

• SunSilk Black Shine Shampoo:

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SunSilk Black Shine Shampoo with Henna & Cocoa
naturally blackens and smoothens your hair, so it
reflects shine all day everyday.

• SunSilk Long & Strong Shampoo:

SunSilk Long & Strong Shampoo with ginseng -


protein nourishes and strengthens your hair. By
reinforcing the whole strand, your hair will grow
beautifully strong and long.

• SunSilk Soft Touch Shampoo:

SunSilk Soft Touch will do just that, With rich


almond oil & cream nutrients, it nourishes deep
inside each hair strand to bring out softness you
can really feel. Soft hair loves to be touch.

• SunSilk Damage Repair Shampoo:

SunSilk Damage Repair Shampoo with Olive Oil


Serum helps rebuild your hair's natural cellular
structure and seals it with a natural conditioning
blanket. So your hair's all ready for the next big
style.

Customer Review of Product Usage:

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36.36%
30.30%

12.12% 12.12%
9.09%

Green Black Orange white Pink

Pricing Objectives:
Unilever claims to practice value-based pricing in which
the customers’ perception of the product’s price provides a
starting point for developing the marketing mix of the
product. The research department determines this price
usually by using focus groups. The price of RS 3 for Sunsilk
shampoo sachets shows how the price also reflects a
concern to make the purchase more convenient, since the
rupee is denomated in this value.

The primary importance of this value-based pricing is


that the product demand will be much higher if its price is in
line with the customer’s perception of its value. One crucial
concern for value-based pricing is strict management of cost
in order to be able to make a profit at the value-based price.

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After the initial price is determined, Unilever then uses target
costing in order to achieve the required profits. With the
marketing plan now being termed as ‘Annual Contract’ the
importance of meeting the profit margin requirements has
increased. Target costing thus provides an essential tool to
manage cost effectively.

The characteristic of monopolistic


competition typifying the market sets the
threshold for pricing. This market
consists of many buyers and
sellers trading over a range of
prices. The key element is
differentiation, which allows the
seller to gain market share in
contrast to competitors. Given
this market condition, Unilever
differentiates its products and
also sells them in different price
ranges to cover at least a large
portion of the market. Also this makes Unilever more
sensitive to price changes of competitors’ products.

Last year P&G revised their prices which has increased


the prices of their shampoos considerably but Sunsilk has
maintained its prices and their prices are much lower than
P&Gs’, which is a major blow to P&G because being a poor
country people go for products which are within the range of
Rs.100.

200ml bottle Rs.120


6ml Sachet Rs.3

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Promotion objectives:

 Build top of the line consumers’ awareness.


 Creating a personality of the brand.

Besides having these general objectives, the advertising


objectives are set avoiding to the advertising strategy for
each product, e.g. Sunsilk advertising objectives since it was
being re-launched were:

 To increase the usage.


 Conditioning benefits.
 Makes the hair appear clean and shiny.
 Imparts a feeling of freshness-due to fragrance.

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 Easy to manage, silky, soft hair.
 Unique shampoo for every hair type.
 Effectively communicate brand promise.

Advertisement objectives:
The advertisement of a product should follow the smile
approach that is:

S - Simple
M - Memorable
I - Interesting with relevant information
L - Linked to the brand
E - Emotionally involved and liked.

The advertisement should be in line with the past ad (if


any). The ad should have a good advertising idea.

 Advertising should meet the brief


 Message clearly communicated
 Advertising should fit the brands personality
 An add is usually changed after 18 months
 TARP(Target Audience Rating Points)

Advertising strategy:
A product’s particular advertising strategy also depends
on the level of competition involved with each product. For
example shampoo ads previously used to provide emotional
benefits but when P&G entered the shampoo market with it’s
shampoo Pantene, it revamped the whole situation, Pantene
ads promoted the shampoo’s functional benefits, which
greatly appealed the consumers. Unilever s seeing this trend
changed its advertising strategy for Sunsilk so that Sunsilk
advertisements also promoted the shampoo’s functional
benefits.

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Thus Unilever evaluates the product’s present position
in the market, the promotion objectives it wants to achieve
and the level of competition involved while setting the
advertising strategy for a product.

Elida Hair Institute does a lot of research and they


come up with innovation in the product. Elida provides
credibility that Sunsilk is not locally made but it is based on a
lot of research by internationally accredited institutions.

Unilever believes that messages about product


delivered by credible sources can be very persuasive. Hence
Nabila who is an hair care expert endorses Sunsilk and more
value is added to the brand. Consumers relate to products
itself, they can relate to a human being who consumers
believe is an expert so if Nabila is an expert so is Sunsilk.
Nabila a recognized and highly qualified hair stylist is used
by Sunsilk in its ads because they want to bring out an
expert’s image.

Sunsilk has come up with a new promotional campaign


GOOD HAIR DAYS in six major cities in collaboration with
famous hair stylists of the country.

Advertising Evaluation:
Unilever also carriers out on extensive evaluation
process. Target audience rating points are used to evaluate a
product. Households are monitored in various cites to get
consumers response and feedback.

R-Lintas carriers out in own evaluation proceeds for its


advertisement. Weekly figures are presented by research
department. Regarding sales which have been carried out by

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extensive surveys. Products manager themselves have to
visit the

Consumers’ View of Sunsilk Advertisements

54.55%

33.33%

12.12%

Attractive Average Cheap

Distribution Objective:
“To reach as many towns and villages as we can”

Unilever has 150 distributors whose function is to sell to


wholesalers directly. There are different distributors for
different areas. They are carefully selected and their
performance is constantly evaluated.

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They appear extremely satisfied with their channel
systems and have a good rapport with them. We feel that
this is essential since these are not too many levels, thereby
preventing channel complexity and allowing Unilever greater
control. Unilever’s statements were verified by our consumer
survey, which revealed that the retailers were very satisfied
with Unilever’s distribution system, which allowed well-
stocked shelves. This is an added advantage, since the
consumers undergo habitual buying behavior.

Sunsilk has a very good distribution network all over


the country. They have struggled hard to adopt such
channels that guarantee the perfect results regarding the
placement of their product.

These distributors are given clear instructions regarding


the selection of the retailer and to make sure that the
retailer;

 Knows about the significant characteristics of the product.


 Places the product along with its major competitors like
P&G.
 Displays the sachets distinctly.

They give off and on offers as trade promotion


incentives to their distributors. The distributors contribute to
the promotion of Sunsilk by word of mouth.

STRENGTHS

 Unilever Brothers Pakistan Limited is one of the largest


organizations in Pakistan.
 Company has advanced technology and well skilled
professionals.

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 The New Sunsilk Shampoo is a high quality product in
terms of hair protection.
 The target market is educated, professionals and
belongs to premium and middle class.
 Company totally owned, systematic distribution
network, transparent communication system.
 Participative management style
 Very good distribution network all over Pakistan, in all
major and small cities.

WEAKNESSES

 Competitor has strong promotional activities.


 Imported brands also available in the market.
 Customers are offered better alternatives by the
competition.

OPPORTUNITIES

 Population expanding at a rapid rate.


 Consumers are becoming more quality conscious

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 Current capacity utilization is 80%, which can be further
broadened with the increase in demand.
 Customer base is increasing with effective marketing.
 Baby shampoo is another area where Unilever Brothers
can make huge gains.
 Shampoo plus conditioner and anti-dandruff shampoos
are another area where Unilever brothers can earn
huge profits.
 Rural areas are a large prospective market where they
can introduce Sunsilk.

THREATS

 Political and Economic factors.


 Partial Government policies.
 High rate of competition.
 Local and Foreign competition.
 Smuggling via Afghan Trade Transit is one of the big
hurdles faced by Sunsilk.
 Supplies from Indonesia and Thailand is another
important issue.

RECOMMENDATIONS

 Unilever, Pakistan realizes the huge potential of the


rural markets, i.e. 72% of the total population, but has
not yet developed a successful strategy to penetrate

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this market. The success of Unilevers Hindustan should
be emulated, which has successfully captured the rural
market by two key strategies; firstly, by developing a
strong distribution infrastructure and secondly, by
adapting the packaging and pricing to this market.

 Unilever should increase the buying of raw materials


from local markets so that it does not have to suffer
excessively from devaluation and continuous increase
in tariff rates. This would also negate the adverse affect
on sales volume due to smuggled foreign product.

 Unilever should introduce a smaller (100 ml) pack of


Sunsilk shampoo in order to capture the lower income
segment.

 Unilever should enter into WEB Marketing.

 The Legacy Soccer Foundation sponsored mainly by


Unilevers, should be emulated by Unilevers Pakistan in
the area of cricket since it is the most popular sport in
Pakistan.

 Unilevers could also provide consumers with a hot line


number where they can call in to complain or to ask
specific questions about Unilver’s products. These hot
line numbers can also advise consumers about their
hair type and other hair related queries. Such a
strategy would highlight Unilevers concern for the
public as well as helping it to gain market share.

 They should increase the frequency of their


advertisements on electronic and print media.

 They should introduce 2 in 1 composition, i.e. shampoo


plus conditioner which is the demand of a huge
potential market.

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