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Introduction of unilever:

Unilever is one of worlds largest and leading multinational companies; Unilever commended
their business activities on a larger scale by setting up their first factory in Netherlands, in the
year of 1890. Operating in Pakistan for over the last four decades the company is trying to
significantly contribute towards the augmentation of the standard of living by bringing work
class high quality products at the door step of their customers. The usage of unilever products by
over 90% of the people Pakistan stands a testimony to their successful operation. Their array of
products show that they household care, fabric cleaning, skin cleaning, oral care, hair care,
personal grooming, and tea based beverage products under worldwide famous brand names
Wheel, LUX, Lifebuoy, Fair and Lovely, ponds, Close-up, Sun silk, Lipton, Lipton Taza,
Pepsodent, All clear, Vim, Surf Excel, and Rexona.

Unilever Pakistan (70.4% unilever equity) is the largest FMCG Company in Pakistan, as well as
one of the largest multinationals operations in the country. Unilever Pakistan Ltd, a subsidiary of
the unilever Group is operation in Pakistan since 1948. The companys main business lines are
soap and detergents, personal products, cooking oils and fats, packed Teas, and ice cream.

In 1995, the company established a new factory Lahore to manufacture the Walls rang of ice
creams, which have become popular within a short time. In 1996, the present group-unilever UK
acquired the polka group that produce ice creams. In 1999 Pakistan industrial promoters (private)
Limited, owners of polka brands of ice cream wear merged with lever.

Mission of unilever:
Mission is to add vitality to life. We 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 of unilever:
Touching Hearts, Changing Lives.

Strategy a long-term financial target:


To realize our vision we have invested in a long term strategy of categories and brands that
deliver growth to the benefit of all stakeholders. At the heart of Unilevers strategy is a
concentration of resources on area where we have leading category and brand position and which
offer excellent opportunities for profitable growth, especially in personal care, developing the
business organically, but acquisitions and disposals can also play a role in accelerating the
portfolio development. To execute this strategy we have reorganized the business to simplify t he
organization and management structure and to improve capabilities in marketing, customer
management, and research and development. The result is better allocation of resourcing faster
design-marketing and a lower cost level. This transformation, known as the unilever program ,
allows as averaging our scale both globally and locally.

Unilevers long-term ambition is to be in the top third of our peer group in term of total
shareholder return. We except underlying sales growth of 3_5% per annum and an operating
margin in excess of 15% by 2010 after a normal level of restructuring charges of 0.5 to 1 percent
of turnover. Return on invested capital is targeted to increase over the 2004 base of 11%. Over
the period 2005-2010. We aim to deliver unguarded free cash flow of 25-30 billion. It should be
noted that pervious and planned disposals and the additional restructuring plans will have
reduced ungeared free cash flow by about 2.5 billion over this period. While enhancing the
ongoing cash generating capacity of the business.

Marketing strategy:
Unilever's strategy is to focus research and development and marketing on leading brands, that
is, those that are most in demand from consumers. They make the well advertisements and chose
proper media to get positioning in their consumers minds they make the promotional activities
like incentives to their consumers & distribution strategy, brand activation activities they
recently did work on their new product Clear for men. They hired Shahid Khan Afridi
celebrity as their brand ambassador to introduce Clear for men. They conducted activities in
colleges and universities to aware and trial the new product Clear for men to their target
consumers. Their new promotional strategies have to give Scholarship in college or universities
women for their product Fair and Lovely. Unilever give their consumers to more incentives in
the form of scholarship, lucky draw gifts etc. Surf Excel was also a marketing success with the
brand going with the flare DAAGH TOH ACHAI HOTAI HEIN

Competitive Strategy:

Unilever competitive strategies are very intelligent. They fully consider their competitors what
they are doing? What will be their next strategies? What is going in market? What their
customers needs and wants? They spend more on research & development, advertisement,
promotional activities, and brand activation activities as compared to their competitors.

List of Brands in Pakistan:

Blue Band
Supreme Tea
Clear Shampoo
Close Up
Fair & Lovely
Lifebuoy soap & shampoo
Lux
Surf Excel
Wheel
Lipton Tea
Sunsilk
Knorr Soup / Noodles
Pond's
Unilever Pakistan-porters 5 forces analysis:
Unilever has very strong competition not only in Pakistan but also with other strong
multinational companies like P&G, Kraft and Nestle. Porters 5 forces
m o d e l i s o n e o f t h e m o s t r e c o g n i z e d f r a m e w o r k s f o r t h e analysis of competitive
environment of an organization. Porters five forces model which determine the competitive
intensity and therefore attractiveness of the market where Unilever is operating .
This model describes the attributes of an attractive industry and thus suggests when
opportunities will be greater, and threats less, in these of industries. This model is based on five
important elements of an organization and uses both internal as well as external competences
and threats faced by an organization. These five elements are as below:

Competitive rivalry
Bargaining power of supplier
Buying power of buyer
Threat of substitution
Threat of new entrants

Competitive rivalry:
In consumer products business Unilever has a large number of competitors and these
competitors are in reality very strong. They range from small local corner shop retailer
to b i g g i a n t s l i k e P & G , K r a f t a n d N e s t l e .
T h e s e c o m p e t i t o r s a l m o s t p r o v i d e e q u a l l y attractive products and services and
sometimes better. These competitors have the power to attract and influence the customers by
more attractive substitute, prices and marketing techniques.

Bargaining power of supplier:


Unilever has a policy of local buying and local manufacturing. Which provides itself an edge to
brake power of its suppliers and make them weaker to negotiate at its own terms. Most of time
Unilever has blanket agreements with its suppliers to provide for a certain period of time at a
certain rate. This strategy help to prevent suppliers from switching to other competitors and
charge higher rates. Also Unilever treat its suppliers fairly so as to create more loyalty among
them like customers.

Bargaining power of buyers:

Unilevers buyers are scattered all around the world and they are in billions. In true sense they
are not so powerful to pull prices down. But on the other hand it is easier for the customers to
switch to a competitor. So Unilever has to be very precautious in deciding about prices and keep
the customers satisfied.

Threat of Substitution:

Continuous research and development in the consumer and household products has brought
about a revolution in the consumer market and today customers like to try something new and
better. This trend has reduced the customer loyalty and product lifecycle. Unilever is under
continuous threat of substitute products and its competitors are already spending huge sums on
R&D and new product development. Unilever has to be very adoptive and closer to its customers
so as to get what exactly its customers want.

Threat of New Entrants:

As Unilever operates in different geographical markets so threat of new entrants varies in


different markets. In well developed countries where big players like Unilever have a very strong
hold and brand image, it is very hard for a new entrant to enter the market because of higher cost
to set up a business. On the other hand in less developed markets, it is easier to enter as legal
requirements and capital needed is not as much as in a developed market. Unilever has its
presence almost in every market either through its subsidiaries, branches or franchises. But its
brand image is a strong barrier in the way of new entrants.

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