stratagic managment project of saad ali

7/27/2019 stratagic managment project of saad ali

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Background of Unilever Pakistan Ltd Co.

Unilever Pakistan Ltd., a subsidiary of the Unilever Group is operating in

Pakistan since 1948. he !o"pany#s "ain business lines are $oaps and

%etergents, Personal Products, !ooking &ils and 'ats, Packed eas, and (ce

!rea"s.Unilever has a long list of brands such as $urf, )i", *in, Lifebuoy,

$unlight, Lu+, *e+ona, $unsilk, !loseUp, -lue-and, %alda, Planta, Lipton#s

ello/ Label, aa0a and *ichbru, -rook -ond#s $upre"e and enya 2i+ture etc.

/hich are co""on household na"es in Pakistan.

he !o"pany#s factory at *ahi" ar han /as one of the first industrial units to

be constructed after the creation of Pakistan. 3s the consu"er base e+panded

over the years and the !o"pany entered into ne/ product lines like Personal

Products and 2argarine, it invested further in the installation of "odern

"anufacturing facilities including a factory at arachi. oday, the !o"pany is

using latest stateoftheart technology for producing high uality products.

(n 1995, the !o"pany established a ne/ factory near Lahore to "anufacture the

6all#s range of ice crea"s,/hich have beco"e popular /ithin a short ti"e. (n

1997, the present group Unilever U acuired the Polka Group that produced

ice crea"s. (n 1999, Pakistan industrial pro"oters Private: Li"ited, o/ners of

;Polka# brands of (ce !rea" /as "erged /ith Lever.

(n order to leverage the synergies of Unilever#s international brand strength,

"arket edge and corporate i"age, Lever -rothers Pakistan Ltd. changed its

na"e to Unilever Pakistan Ltd., in 3ugust


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Vision Statement:

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

Mission Statement:

6e are ai"ed to be leading products co"pany in Pakistan, a

"ultinational /ith deep roots in the country.

6e /ill attract and develop highly talented people, /ho are e+cited,

e"po/ered and co""itted to deliver doubledigit gro/th.

6e are co"itted to serve the everyday needs of all consu"ers

every/here for foods, hygiene and beauty through branded products

and services that deliver the best uality and value.

6e strive to re"ain an ever si"ple and enterprising business.

6e /ill use our superior consu"er understanding to produce

breakthrough innovations in brands and channels.

hrough "anaging a responsive supply chain, /e /ill "a+i"ise value

fro" $uppliers to !usto"ers.

6e /ant to be e+e"plary through our co""it"ent to -usiness >thics,

$afety, ?ealth, >nviron"ent and involve"ent in the !o""unity.

.

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Introduction - Unilever Pakistan

(ncorporated in 1948, /e, Unilever Pakistan Li"ited, are one of the "ost

pro"inent "ultinationals in the country today. 6e are proud of being a part of

Pakistan#s history, contributing to/ards the gro/th and prosperity of the nation,

providing 15= "illion people /ith a better future, a better to"orro/. &ur passion

for understanding people@s concerns and desires, our ability to create products

that fulfill those needs and our skills in getting those products to "arket drives

our gro/ing success and has "ade us one of the /orld#s leading consu"er

goods co"panies.

he present co"pany has co"e about through the original Lever -rothers

"erging /ith Lipton 1988:, -rooke -ond 199A:, Polka (ce !rea" 1998:,

presently /e are operationally "erged /ith -est 'oods since


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Personal Wash (PW)

Toilet Soaps Lie!"o#Lie!"o# $ol% ( 'ariants)

L" (in 'ariants)

Reona (in * 'ariants)

+ree,e

S"nli-ht +ar

La"n%r# Care: S"r Eel

S"nli-ht /ashin- po/%er

$unlight barWheel /ashin- po/%er

?ouse ?old !aringB )i" dish /ash bar 0i so"rers

Ma-i !ar

Personal pro%"ts:

Hair Care S"nsil2 Shapoo (in 3 'ariants)

Lie!"o# Shapoo

$kin care 'air C Lovely skin crea"Pon%s

4ental are Close "p toothpaste (* 'ariants)

Pepso%ent

. SPREA4 & COO56N$ PRO47CTS CATE$OR8

Coo2in- pro%"ts:

Ne/ 4al%a

4al%a Coo2in- Oil

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4al%a S"nlo/er Oil

Planta Coo2in- Oil

Crisp 9N 4r#

4al%a La;a/a!

Sprea%s:

-lue -and

*. +E0ERA$ES

Lipton -rands -rooke -ond -rands

Leaf eas8ello/ La!el S"pree

8ello/ La!el


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WALLS POLKACornetto (* 'ariants) Pop Cone

=east (* 'ariants) Cho +ar

Top Ten 6e Crea Sti2

Star C"p (3 'ariants) Pan%a ( 'ariants)

Callipo >etspot Oran-e

+i- Split 5in- 5"la?+i- Slie

+i- =r"iti 5in- 5"la C"ps

Ma Ra!o Hal Litre(11 'ariants)

Ma 5"li Litre Pa2(1'ariants)

+l"e +err# 1@ Litre Pa2(13 'ariants)


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6e are going to conduct our proDect in three stagesB

!"#$% &%'()* &W+% analysis

#)&%) analysis

>'> 2atri+

('> 2atri+

!P2 "atri+

23!?(EG $3G>

&6$ "atri+ -!G "atri+

$P3!> "atri+

G*3E% "atri+

%>!($(&E $3G>B F$P2

*eco""endation and conclusion

*eco""endation and suggestion

-


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(EPU $3G>

SWOT ANALSIS O! T"# CO$PAN

STRENTHS

Eu"ber of Products

3dvance technology

$upply !hain 2anage"ent

'inancial -acking

>+perience op 2anage"ent

OPP#%TUNITI#S

?ygiene !onsciousness

(ncreasing Population

(nnovation *C%:

Product %iversification

>+plore Ee/ 2arkets

W#A&N#SS#S

all &rgani0ation $tructure

?igh &perating >+penses

?igh !ost of Production

Long ter" strategies

&nly fe/ products

T"%#ATS

Product s"uggling

(ncrease de"and for

3ntibacterial $oaps !ounterfeit Products

(nternational rends

Local !o"petition

6NTERPRETAT6ON:

STREN$HTS

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unilever #akistan imited is the largest producer of consumer products in

#akistan and has strong brands in every field such as /lose $p, 0alda, &urf,

ifebuoy, u, etc unilever #akistan imited is the only company in #akistan which has its own

corner research department

!t has the largest and efficient distribution network then any its competition

%he company is very strong financially

unilever #akistan imited enoys the services of highly professional management

in the area of sales, marketing, technical and production

WEA5NESS

0ue to tall structure it is difficult to handle the organisation easily

"o doubt its sales are large but in same time its operating epenses are huge

's in the production unilever keeps its environment very neat and clean, and

produce high uality products so cost of production is very high !ncreased importduties are also adding to the prices of the products

unilever #akistan imited go for long term strategies for all their product

categories which prove to be a weakness with change in the circumstances andtaste, trends of people

)mphasiing only few products while ignoring others which could give them

potential market shares eg beverages section

OPPERT7N6T6ES

#eople are becoming more conscious about their health and are becoming more

conscious about brands 's unilever has good positioning in consumers mind so

it can increase their market share to launch products in hygienic category 's population is increasing it may lead to create valuable opportunity to enhance

the growth of unilever

!nnovation in unilever may create opportunity to more penetrate in the market

%hey have capital to invest they can eplore new product categories eg in food

and beverages they can develop new products like 7afhan has launched custard,

elly, kheer mi, rasmalai mi, etc %hese products can prove a 8cash cows9 ascustomer in #akistan always welcome food items especially they will welcome

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due to brand image of ;lue ;and and 0alda ghee in food category and due to

ipton and &upreme in beverages category

$nilever #akistan has opportunity to develop new markets by identifying theneeds of customers

THREATS

unilever #akistan imited has not been able to place any check on its smuggling

shampoos into #akistan eg !ndonesian &unsilk is made according to the

demographic of !ndonesia, when it will be used in #akistan it will damage the hair

of people, which deteriorate the brand image Which create problem on local sales

of #akistan 0emand for antibacterial soaps like safeguard is increasing while unilever has not

yet been produced any antibacterial soaps, it may switch the brand loyal ofunilever

%heir may be imitation of products in #akistan which may damage the goodwill

of unilever #akistan lmtd #eople of #akistan prefer to purchase the products of foreign companies, it may

be prove to be a threat for unilever #akistan lmtd number of local companies producing detergents and market them at very low

prices which is a threat to unilever #akistan lmtd

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PEST ANALYSIS

P>$ analysis is used to assess that /hat environ"ental factors affectingdifferent organi0ation and /hich of the" are "ore i"portant and ho/ they affectthe organi0ation. (t is indicator of political, econo"ical, social and technologicalinfluences on organi0ation.

Political & Legal Factors

3s far as the Lever -rothers Pakistan Li"ited concerns according to the"that political instability have do affect but not particularly Lever -rothersPakistan Li"ited sa"e as it affects any other organi0ation around andspecially they are in consu"er products business /hich never "ake the" outof business.

(n case of legal factors, any trade policy or i"port duties is not affectingparticularly Lever -rothers Pakistan Li"ited. (n Pakistan right no/ follo/ingliberali0ation policy under $3P by (2' "ade /hich they have to /aive off allrestrictions and "oreover due to huge invest"ent by Lever -rothers PakistanLi"ited no govern"ent can afford to create hurdles in the /ay of an organi0ationlike Lever -rothers Pakistan Li"ited.

3nd they don#t have to go for only lobbying or /hat so ever as not action of

Pakistan govern"ent has affected the" adversely as such.

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Economical Factors

>cono"ical factors affect Lever -rothers Pakistan Li"ited in the sa"e /ay as itaffect any other organi0ation like current econo"ic situation in Pakistan andinflation has reduced consu"er#s disposable inco"e too, /hich in turn hasreduced the purchasing po/er of consu"er but affect is sa"e for everyorgani0ation and according to the" Lever -rothers Pakistan Li"ited have edgethat they have targeted all possible seg"ents through their vast product categoryi.e. the /idth and length too. $o one /ay or other they find /ay to cover it up.

!apital 2arkets

(n other econo"ic factors like interest ratesH and inflationH has affected the

borro/ing ability of organi0ation but Lever -rothers Pakistan Li"ited stayedunaffected as a co"pany having business in billions and /hen in need offinancing no single bank can fulfill the need, they have to "ake a consortiu" tofinance Lever -rothers Pakistan Li"ited and /ith very good credit standing andvery lo/ risk definitely they get the lo/est or Dustified interest rate as /ell.

Socio-Cultural Factors

(n sociocultural factors, factors like lifestyle changes and level of educationaffects an organi0ation. (n case of change in lifestyle, the /orld has convertedinto global to/n no/ and people have readily access to every sort of infor"ation

and they are beco"ing "ore uality conscious. Eo/ "ore concerned to/ardsenviron"ental issues no/ and de"and "ore social responsibility on the part oforgani0ations no/. o cope up /ith all these factors no/ Lever -rothers PakistanLi"ited /hich al/ays "aintained the uality standards needs to /ork to/ardsother social factors like social responsibility and environ"ental concerns likePCG did in its 3rial ca"paign and i"age of a society responsible organi0ation.

Technological Factors

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(n technological factors co"es *C% first and fore"ost that ho/ "uch anorgani0ation spending in ter"s of product i"prove"ent or develop"ent of ne/

products or i"prove"ent in production process or in the ra/ "aterial etc. and/hat is the trend in the industry as Pakistan is not that big and not very "uch innovation seeking as the other developed countries. et they keep on findingne/ /ays of doing things and ne/ things as /ell they continuously launchedvariants in brands etc. and "oreover in the "arket like Pakistan in productcategories of consu"er products rates of obsolescenceH is not very high rathervery slo/ so no great pressure to launch ne/ products,.

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#!# $AT%I'

Key External Factors Wei!t "atin Wei!te# Score

O$$ort%nities

?ygiene !onsciousness =.< 4 =.8

(ncreasing Population =.15 I =.45

(nnovation *C%: =.1= < =.+plore Ee/ 2arkets =.=5 4 =.+perience op 2anage"ent =.< I =.7

Wea*ness

all &rgani0ation $tructure =.1 < =.+penses =.=5 < =.1

?igh !ost of Production =.=5 < =.1

Long ter" strategies =.1 < =.3(&E

FU>$(&E 23*B&il products of unilever co"e in this region /hich has lo/ "arket share

but yet co"peting in high gro/th industry. cash need is high and cash generation

1.

2:

=edium :

ow ?2:

Hoe & Personal are

6e CreaOil Pro%"ts

47STR8

LES

ROETH

TE (B)

4eter-ents


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is lo/. its up to the organisation /hether to strengthen this $-U by an intensivestrategy or to sell the".

$3*B(cecrea" of unilever Pakistan co"es in this region as it sho/s best long

run opportunities for gro/th and profitability. it has high "arket gro/th as /ell ashigh "arket share. (ntensive and integration strategies are suitable for this $-U.

!3$? !&6$B%etergents co"es in this $-U.they create cash in e+cess of their needs,

they should be "anaged to "aintain their long position. Product develop"entand diversification are suitable strategies.

%&G$BEo $-U of unilever co"es in this region.

INT#%NAL-#'T#%NAL $AT%%I'

%


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SPAC# $AT%I'

Financial Strent!

1. Eet revenue


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SPAC# $AT%I'

22

A ais* 25 > B?:5C D 25

E ais* 3> B?1C D 2

Conservative FS Aggressive

CA IS

Defensive ES Competitive


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(%AN) ST%AT#( $AT%I'

23

7'#!0

='7F)%

(7+W% and G*3E% "atri+ analysis,

Unilever is placed in aggressive uadrant and it can follo/ any of the

strategies e.g. "arket penetration, for/ard integration, back/ard

integration etc.

3ccording to the analysis in F$P2, /e /ould like Unilever to pursue

!ost *eduction strategy /hich is a "arket develop"ent strategy.

3lthough the current business strategy of Unilever is Product

%evelop"ent as they are bringing different product like Green ea in

the "arket. hey are also "odifying their products for e.g. Lipton in

ne/ round tea bags and Lu+ by adding a different ingredient.

$o"e reco""endations are follo/ings:

*educe packaging e+penses

*educe international purchases of ra/ "aterial cost as Unilever

purchases 9= ra/ "aterial fro" international suppliers.

*educe retailer#s co""ission cost

*educe transportation cost

*educe inventoryholding cost

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Recomendation and suggestion

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stratagic managment project of saad ali

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