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 Lever
Brothers Pakistan Limited. Applied on “Sunsilk”.

In making this term report, we collected the

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

Apart from it I take the opportunity to

acknowledge the real efforts of:
Mr. Reza A. Syed, for guiding us,
Ms. Ayesha Khan (Assistant Product Manager of
Sunsilk) and Mr. Khurram (Product Manager) without
whose support this report wouldn’t have been
possible.

As a final word, my sincere dedication is to the

other students of “BAHRIA INSTITUTE”, they are the
future managers in every field of life, they have my
good wishes for their future success in management.
 TABLE OF CONTENTS

CONTENTS PAGE #

Lever Brothers Pakistan Limited. 03

Company Objectives. 04

Sunsilk Mission Statement. 05

Product 06

Price 10

Promotion 12

Distribution 15

S.W.O.T Analysis 16

Recommendations 18
LEVER BROTHERS PAKISTAN LIMITED

LBPL, 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.

LBPL 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.

Lever Brothers 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.

Lever Brothers is committed to investment and modern

production facilities thereby contributing to economic growth
and employment opportunities.
 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.
 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”

 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, LBPL 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
care institutes, the need of a shampoo for oily hair was
observed and they launched a new variant of Sunsilk having
citrus extracts.

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.

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 range consists of:

♦ Yellow Sunsilk with Bio Proteins from Vegetable Extracts:

Normal hair needs wholesome nourishment. New
Sunsilk with Bio Protein extracted from Vegetable
milk has nutrients that deeply penetrate each hair
strand, to nourish it leaving hair strong and
beautiful.

♦ Black Sunsilk with Melanin from Plant Extracts:

Dull hair needs a rich black shine. New sunsilk with
Melanin extracted from plants serves this purpose
very effectively. It helps in the growth and
retention of the black color of hair, giving it a rich
black shine.
.

♦ Green Sunsilk with Fruitamins Vitamins from fruit

Extracts:
Thin and limp hair needs extra body and volume.
New sunsilk with Fruitamins has natural extracts
from fruit that contains Vitamins. These vitamins
help in giving extra body, shine and amazing
manageability to the thinning and lifeless hair.

♦ Pink Sunsilk with essential Oils from Flower Extracts:

Dry hair needs wholesome conditioning, extra
shine and styleability. New Sunsilk with essential
oils makes the dry hair full of life. Its especial
 ingredients moisturize each hair right to its tips
leaving it shiny and beautiful.

♦ Orange Sunsilk with active nutrients from Citrus Extracts:

The advanced formula of orange Sunsilk is the
result of the latest research. This shampoo is
especially designed for oily hair type that looks flat
and greasy due to the excess of moisture. New
sunsilk with active ingredients from citrus extracts
cleans the excess oil off hair while its nutrients
deeply penetrate each hair strand to nourish it.

Customer Review of Product Usage

36.36%
30.30%

12.12% 12.12%
9.09%

Green Black Orange Yellow Pink

Pricing Objectives:
Lever 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.
After the initial price is determined, Lever 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, Lever differentiates its products and
also sells them in different price ranges to cover at least a
large portion of the market. Also this makes Lever 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. 95

6ml Sachet Rs.3
 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.
 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. Levers seeing this trend
changed its advertising strategy for Sunsilk so that Sunsilk
advertisements also promoted the shampoo’s functional
benefits.

Thus Lever 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.

Lever 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
recognised 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:
Lever 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
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”

Lever 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.

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 Lever greater
control. Lever’s statements were verified by our consumer
survey, which revealed that the retailers were very satisfied
with Lever’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

 Lever Brothers Pakistan Limited is one of the largest

organizations in Pakistan.
 Company has advanced technology and well skilled
professionals.
 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
 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 Lever Brothers
can make huge gains.
 Shampoo plus conditioner and anti-dandruff shampoos
are another area where lever 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

 Lever, 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 this
market. The success of Levers 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.

 Lever 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.

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

Sunsilk shampoo in order to capture the lower income
segment.

 Lever should enter into WEB Marketing.

 The Legacy Soccer Foundation sponsored mainly by

Levers, should be emulated by Levers Pakistan in the
area of cricket since it is the most popular sport in
Pakistan.
 Levers could also provide consumers with a hot line
number where they can call in to complain or to ask
specific questions about Lever’s products. These hot
line numbers can also advise consumers about their
hair type and other hair related queries. Such a
strategy would highlight Levers 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.