final mm project(abubakar)

8/10/2019 Final Mm Project(Abubakar)

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UNILEVER PAKISTAN LIMITED

MARKETING MANAGEMENT 2010

ACKNOWLEDGMENT

I bow my head in gratitude to Almighty Allah, who blessed me with the ability and energy to

complete this work

I wish to express my deep sense of gratitude to my great and honorable teacher Mr. Awais

Afzal for his friendly behavior and his keen interest. His kind advises and guidance helped me

throughout the progress of this report. I would like to thank all persons for their contribution

and coordination in completion of this work. They provided very beneficial information, which

increased my knowledge.


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DEDICATION

We want to dedicate over statistical project under the subject ORGANIZATIONAL BEHAVUIR to

our beloved teacher name as Miss Faiza Khan. As they gave us such an opportunity to

continuous our education after intermediate so got admission in Gujranwala Institute of Future

Technology for doing Bachelor in Business Administration. Its one of our fourth semesters

subjects so that they can improve our understanding about potential organizational behavior.


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EXECTIVE SUMMARY

We have been informed by our Principles of Marketing's teacher named as Mr. Awais Afzalthat

we have make an assignment that is a project. As we are aware of that we were assigned a

project regarding our course. This included of selection of an organization and implication and

analysis of different marketing situations and ending up at conclusions. If we figure out the

contents and the track we followed during the project that would be as following. Initially we

selected an organization and highlighted its history and the brand we selected. Then we did pest

analysis that is a sort of environmental scanning. Then we forward moved forward to an

intractable task of analyzing how large the market is for the product. The situation the product

is facing is it growing shrinking or static. What amount of share does this product have in

market? Then further we evaluated the factors influencing the level of product. Then we cameacross the competitor analysis and focused on the competitor serving the market. Then SWOT

analysis. In order to highlight the strength weakness, opportunities, and threats. Then we

analyzed the buyer behavior and different factors regarding it. We determined the marketing

goals to be met. Then there was a review of market segment strategy differentiation and

positioning. Then we moved forward to a product pricing distributive communicative strategy.

To focus on every stage of product life cycle analyzed what situations it faces in the market. We

have started from very first chapter that is introduction, it's contain are easy to find as it is easy

available on company website like History of company, Branches of company and third one is

Reason for selection of this topic and organization. As last is our perception what we have to

include in our project and how much excess we have to the firm. Secondary data is theinformation already present in different sources related to our topic it may be one internet,

magazine, Yellow page, and Business release, it easy to collect. Third chapter is the primary

data, primary data is the data collected at first hand. It's a little bit difficult task to make

personal visit to company. As it include preparing a questionnaire and interviewing one of

company's managers. Ask things that are not available on secondary sources. As our task is

segmentation so most of data is not available so we have put lot of effort to done this portion.

For this task we have to manage a proper contact with a company which is most difficult one,

its a proper channel to visit such a multinational organization. Fourth chapter is the SWOT

analysis of Unilever. That contains strength, weakness, opportunity and Threats as it's necessary

to proper check of such events to explore in the market. Fifth chapter is recommendation to

company as up till now we have known each and other stop of company for segmentation. Nowwe have to suggest to a company how they can better organize their function. How they can

increase their market share and get more customer value. Last chapter is the conclusion what

we get by doing all this.


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INTRODUCTION

No matter who you are, or where in the world you are, the chances are that our products are a

familiar part of your daily routine. Every day, around the world, people reach for Unilever

products.

Unilever Today

William Lever (its originator) commences business in England as a

grocer. He established Lever Brothers in 1827 in England Sunlight was

the first product of Lever Brothers, which makes the beginning of the

marketing of branded products at the same time Margarine Uni was

established in Nether Land by Simon Van Berg and Anton. These two

companies in term of:

1. Buying raw material

2.

Selling finished goods

Consequently both the companies losing out money in term of profit. These problems led to

think of the mergers in 1930. These two companies merged together and renamed the business

as Unilever PLC / the word UNI is taken from margarine Uni and Lever is taken from Lever

Brothers. Its head quarter was established in England and Rotter Dam.

For more than 70 years Unilever has been providing consumers with quality products and services.

Unilever has a portfolio of global, regional and local brands. Some, such as Dove, Hellmanns, Lipton, Lux,

Magnum, and Vaseline, are popular around the world. Others are the first choice for consumers in

particular countries.

Unilever products are at home everywhere: favorites with consumers throughout the world,

from the emerging markets of Asia and Latin America to the developed economies of Western

Europe and North America.

Unilever meets the needs of consumers around the world, in both new and established markets.

Consumers vary from country to country in their preferences and habits and Unilever adapt many of its

brands to suit local tastes. For example, among Unilevers many teas, it produces around 20 separate

brands of black tea specifically tailored for consumption in over 20 different countries and Unilever is

constantly sharpening the flavors to suit all its local markets.

Unilevers research and development teams help to anticipate and meet consumer needs.

Unilevers research and development expertise allows to anticipate the evolving needs of

consumers and to create the innovations to meet them. Internet technology is improving the

way Unilever share best practice and innovation around the world.


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Unilever Pakistan Limited is largest fast moving consumer Products Company in Pakistan.

Unilever Pakistan Limited is a part of Unilever- a global company. Unilever Pakistan Limited is

producing more than 50 brands in Pakistan.

Company Information

Unilever Pakistan limited is a wholly owned subsidiary of Unilever

Overseas Holding, UK, Unilever PLC (A company incorporated in

the United Kingdom.)

The Company is incorporated in Pakistan and listed on the Karachi, Lahore, and Islamabad Stock

Exchanges. It manufactures and Markets foods, beverages, detergents & personal Products.

Brooke Bond Pakistan Limited was incorporated in 1948. Companys 40% shares are held by Unilever,21% by financial institutions, 24% by individuals, and 10% by insurance companies. The company is

quoted on Karachi and Lahore Stock Exchange market. The company is manually engaged in the

blending, packaging and marketing of tea. It also has a small business in the sale of packing apices. The

company employs around 850 persons. And has three manufacturing locations situated in Karachi and

Khanewal. It also has three regional sales offices. The head office of the company is located in Karachi.

BOARD OF DIRECTORS

Ms. Musharaf Hai ( Chairman & Chief Executive)

Mr. Soomro Mohammad Ibrahim

Mr. Mohammad Abid Javeed

Mr. Perwaiz Hasan Khan

Mr. Fatehali W. Vellani

Mr. Syed Baber Ali

Mr. Omar H Karim

Mr. Irtiza Husain

Mr. Robert Zoon


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CEO INTRODUCTION:

As one of the worlds leading consumer goods companies, it is through our brands that

Unilever has the biggest potential to make a difference.

Our mission

Unilever's mission is to meet the everyday needs of people all

around the world for nutrition, hygiene and personal care. We do

this with products that help people feel good, look good and get

more out of life. Every day around 160 million people in 150

countries will buy a Unilever brand. Unsurprisingly, therefore, the

social and environmental impacts which we have on the world

around us come largely from our brands. We are increasingly

embedding sustainability thinking into the day-to-day activities of our brand management and

R&D teams. We have done this through a simple tool called Brand Imprint.

Our Vision

Unilever products touch the lives of over 2 billion people every day whether that's through

feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and

clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

Brand imprint

Brand Imprint forces management to think carefully about both the resources they use (such as

water, packaging, energy and raw materials) and the social and economic impacts that our

brands have in the countries where they are sold. For example, it encourages managers selling

soap to consider the positive effects which they can have on public health through improved

hygiene. For those marketing tea, it prompts them to think about where they source their

ingredients and how they can get value from communicating this to consumers.

Our achievements

We are making progress. Around half the tea used in Lipton Yellow Label and PG Tips tea bags

in Western Europe is now sourced from Rainforest Alliance Certified farms. In an effort to halt

deforestation we have committed to draw all of our palm oil from sustainable sources by 2015.

Our Lifebuoy brand has reached 120 million people in India with its education programmed

about the importance of washing hands with soap.


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OUR HISTORY

Unilever's corporate mission to add vitality to life shows how clearly the business

understands 21st century-consumers and their lives. But the spirit of this mission forms a thread

that runs throughout our history.

Helping people get more out of life

In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down

his ideas for Sunlight Soap his revolutionary new product that helped

popularise cleanliness and hygiene in Victorian England. It was 'to

make cleanliness commonplace; to lessen work for women; to foster

health and contribute to personal attractiveness, that life may be more

enjoyable and rewarding for the people who use our products'.

This was long before the phrase 'Corporate Mission' had been invented, but these ideas havestayed at the heart of our business even if their language - and the notion of only women doing

housework has become outdated.

In a history that now crosses three centuries, Unilever's success has been influenced by the

major events of the day economic boom, depression, world wars, changing consumer lifestyles

and advances in technology. And throughout we've created products that help people get more

out of life cutting the time spent on household chores, improving nutrition, enabling people to

enjoy food and take care of their homes, their clothes and themselves.

Balancing profit with responsible corporate behavior

In the late 19th century the businesses that would later become Unilever were among the most

philanthropic of their time. They set up projects to improve the lot of their workers and created

products with a positive social impact, making hygiene and personal care commonplace and

improving nutrition through adding vitamins to foods that were already daily staples.

Today, Unilever still believes that success means acting with 'the highest standards of corporate

behavior towards our employees, consumers and the societies and world in which we live'. Over

the years we've launched or participated in an ever-growing range of initiatives to source

sustainable supplies of raw materials, protect environments, support local communities and

much more.

Through this timeline you'll see how our brand portfolio has evolved. At the beginning of the

21st century, our Path to Growth strategy focused us on global high-potential brands and our

Vitality mission is taking us into a new phase of development. More than ever, our brands are

helping people 'feel good, look good and get more out of life' a sentiment close to Lord

Leverhulme's heart over a hundred years ago.


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ABOUT UNILEVER

Unilever is one of the world's leading consumer goods companies with a strong portfolio of

trusted foods, home and personal care brands. 13 of our brands achieve annual sales of 1

billion or more Axe/Lynx, Blue Band, Dove, Flora/Becel, Heartbrand ice creams, Hellmann's,

Knorr, Lipton, Lux, Omo, Rexona, Sunsilk and Surf. Our top 25 brands account for over 70% ofsales.

We have operations in around 100 countries and our products are on sale in about 50 more.

With consumers, customers, suppliers and shareholders on every continent, we describe

ourselves as a 'multi-local multinational'. An important part of the local communities in which

we operate, we bring our international expertise to the service of people everywhere.

The Americas

Operating profit (millions): 2945

Turnover (millions): 13199

Purchases of goods and services (millions): 9

391

Employees (year end): 42 000

Manufacturing sites: 71

Western Europe


Turnover (millions): 12853 Purchases of goods and services (millions):

8510



Asia, Africa, Central & Eastern Europe


Turnover (millions): 14471 Purchases of goods and services (millions):

11445




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THE BOSTONE CONSULTING GROUP APPROACH

Using the Boston Consulting Group (BCG) Approach a company classifies all its SUBs according

to the growth-share matrix.

BCGA STRATEGIC BUSINESS UNIT is a significant organization segment that is analyzed to

develop organizational strategy aimed at generating future business or revenue. Exactly what

constitutes an SBU varies from organization to organization in larger organizations; a SBU could

be a company division, a single product or a complete product line.

BCGmatrix has two dimensions market share and market growth .the basic idea behind it is: if a

product has biggest market share, or if the products market grows faster, it is better of the

company.

The four segment of BCG matrix:

STAR,high growth and high market share.

CASH COW, low growth and high market share

DOG,low growth and low market share

QUESTION MARKhigh growth and low market share.

Unilever Products B.C.G Matrix

STAR

SURF EXCEL

QUESTION MARK

SUN LIGHT WSHING POWDER

CASH COW

POWER SURF

DOG

SOAP WHEEL


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PEST ANALYSIS OF UNILEVER

PEST analysis is used to assess that what environmental factors affecting different organization

and which of them are more important and how they affect the organization. It is indicator of

political, economical, social and technological influences on organization.

Political & Legal Factors

As far as the Lever Brothers Pakistan Limited concerns according to them that political

instability have do affect but not particularly Lever Brothers Pakistan Limited same as it affects

any other organization around and specially they are in consumer products business whichnever make them out of business.

In case of legal factors, any trade policy or import duties are not affecting particularly Lever

Brothers Pakistan Limited. In Pakistan right now following liberalization policy under SAP by IMF

made which they have to waive off all restrictions and moreover due to huge investment by

Lever Brothers Pakistan Limited no government can afford to create hurdles in the way of an

organization like Lever Brothers Pakistan Limited.

And they dont have to go for only lobbying or what so ever as not action of Pakistan

government has affected them adversely as such.

Economical Factors

Economical factors affect Lever Brothers Pakistan Limited in the same way as it affect any other

organization like current economic situation in Pakistan and inflation has reduced consumers


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disposable income too, which in turn has reduced the purchasing power of consumer but affect

is same for every organization and according to them Lever Brothers Pakistan Limited have edge

that they have targeted all possible segments through their vast product category i.e. the width

and length too so one way or other they find way to cover it up.

Socio-Cultural Factors

In socio-cultural factors, factors like lifestyle changes and level of education affects an

organization. In case of change in lifestyle, the world has converted into global town now and

people have readily access to every sort of information and they are becoming more quality

conscious. Now more concerned towards environmental issues now and demand more social

responsibility on the part of organizations now. To cope up with all these factors now Lever

Brothers Pakistan Limited which always maintained the quality standards needs to work

towards other social factors like social responsibility and environmental concerns like P&G did in

its Arial campaign and image of a society responsible organization.

Technological Factors

In technological factors comes R&D first and foremost that how much an organization spending

in terms of product improvement or development of new products or improvement in

production process or in the raw material etc. and what is the trend in the industry as Pakistan

is not that big and not very much innovation seeking as the other developed countries. Yet they

keep on finding new ways of doing things and new things as well they continuously launched

variants in brands etc. and moreover in the market like Pakistan in product categories of

consumer products rates of obsolescence is not very high rather very slow so no great

pressure to launch new products,.


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OUR BRAND IN SOCIETY

By addressing social and sustainability issues, our brands can make a real difference and create

growth opportunities for our business.

Our approach

Anticipating that this would become a big trend, the Unilever Executive decided in 2005 that

social, economic and environmental factors should be integrated more deeply into the

development and innovation plans of our brands.

To help evaluate the risks and opportunities presented by this agenda, we developed an

approach called Brand Imprint. This provides our brand teams with a 360 scan of the social,

economic and environmental impact that their brand has on the world.

For each brand a multidisciplinary team conducts a detailed assessment, looking first at the

direct and indirect impacts of our products, or their 'imprint', across the value chain. The team

then gathers insights about the external influences on the brand's future growth, drawing from

consumer and stakeholder research.


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Our Brand Imprint process

The first brands to conduct a Brand Imprint were Dove and Lipton in 2006.

Our major brands and categories have now completed a Brand Imprint. This has resulted in

important commitments and inspired new ideas for addressing social and environmental issues.

For example, the process helped Lifebuoy and Signal/Pepsodent/Close Up develops their social

missions.

Our laundry brands have recently launched a new consumer-facing sustainability initiative - the

Cleaner Planet Plan. The initiative aims to:

Reduce the environmental footprint of our laundry brands

Design products that help our consumers to reduce their environmental impacts

Help and motivate people to adopt laundry habits that reduce their environmental

impacts.

The experience we gained through the Brand Imprint process helped us develop the next stage

of our approach. In 2008 we finalized a Vitality Framework to help us deliver our Vitality Mission

in a systematic and measurable way.

The Brand Imprint process provides the building blocks for brand teams to understand andassess how sustainability issues impact and is impacted by our products. The Vitality Framework

and metrics help integrate sustainability considerations into the everyday business processes of

our categories and brands. This helps us drive a common, aligned plan across our brands.

Together, these tools help us integrate social and environmental sustainability into the heart of

our business strategy.


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OUR SELECTED PRODUCT

As Unileveris producing many products. So we have selected one of a product SURF EXCLE.

Surf Excel was introduced in 1959

SURF EXCEL

Dominating the washing powders markets in Pakistan for four decades; Surf has continued tochange according to consumer needs. Being a pioneer, Surf had to work hard to gain acceptance

in the early days. To educate housewives about its use, house to house demonstration were

organized in Lahore and Karachi. Free sample and coupons were also distributed to recruit

consumer. There has been no looking back since the brand has undergone numerous product

quality improvements to offer best cleaning results. Over the year, there has been a shift from

cartons to poly as and emergence of low unit price packs.

S U R F E X C E L

Surf Excel who brought with himself complete cleaning and care was launched 8 years back in1995. Surf Excel is a laundry detergent that has a different kind of consumer perception as

compared to the competing ones. From the day it was launched, has been met with a persistent

success and growth.

Lever Brothers Pakistan limited started Surf Excel with 6 different sizes i.e. what they call SKUs

(Stock Keeping Unit).

Surf Excel is an elegant product. Just as other products launched by LBPL are renowned for

various purposes (e.g. Lifebuoy relates to health, Liril relates to freshness, Lux relates to beauty,

Wheel relates to economical washing and cleanliness) Surf Excel is reknown due to its ability of

stain removing, bright washing and color guard.


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P R O D U C T I D E A

The idea arose in the mind of management when they saw that the customer wants a premium

quality washing powder with something extra in it. That something to know about was a

challenge for LBPL, which they accepted and came up with such a product, which was not even

visualized by anyone i.e. Surf Excel.

In 1995 when its launch was under the product development stage another study was going on

inside the LBPL so as to merge the existing brands of Super Active Surf and Ultra Surf which were

loosing the market at that time in one single brand or to merge them into Excel. Although it

seems to be a very big gamble on the part of the project team but the risk was taken. Both the

brands were merged with the formula of Surf Excel. It was launched and fortunately met withsuccess because it got some extra strength in the shape of two more formulas of the previous

Surfs. it is meant to be made for the upper and middle class people but as we said it has 6 SKUs

and of different prices startingfrom Rs. 5 to maximum Rs. 125. So the detergent won the heart

of people in every social class and is now in front of you.


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MARKET SHARE

In Market Surf Excel 50 grams has huge market share with respect to other Sashes. While

demand of 500 grams is very low.50 grams is facilitating the class B and Lower B and 500 grams

are facilitating the Class A and Class B+.

L A U N D R Y M A R K E T

In Pakistan laundry market consists of two segments:

Detergent Market.

Soap Market.

The total of laundry market consists of 500000 tones among which soap market has a share of

400000 tones and only 100000 tones of share is of detergent market. The graph of detergent

market also shows the same:

20% share is of detergent market and among that branded products has a share of 91% and

unbranded has a share of 9%. Among the branded products economical detergents has 39%

overall share is distributed as WHEEL has a share of 21% and the competitors i.e. Bonus Power

has 12% and BONUS Tri Star has a share of 6% rest of the share is with of Top Gain segment i.e.

with Surf Excel, Aerial, Express. So WHEEL is the market leader among all branded washingproducts of its category i.e. SENSIBLE CHOICE SEGMENT which are targeted towards lower end

of the consumers. Top Gain segment has a share of 52% among which Surf Excel has 23%

market share, Ariel with 19% and Express with only 10%. So Surf Excel is the overall market

leader in the Top Gain segment.

20%

80%

PAKISTAN LAUNDARY MARKET

SOAP

DETERGENT


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MISSION STATEMENT

DIRT IS GOOD

Let your kids do what they want.

In product some elements are involved which are Variety, Quality, Size, Features Brand Name,

Packaging and Services.

Varity

Surf Excel is at present situation available in two varities

1. Surf Excel

2. Surf Excel Matic

Quality

Surf Excel quality is very popular among the peoples as Dominating the washing powders

markets in Pakistan for four decades; Surf has continued to change according to consumer

needs. Since the brand has undergone numerous product quality improvements to offer best

cleaning results.


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Brand Name

Surf Excel is not only the product for washing the cloths but also it has created the relationship

with customers as making grounds to promote their kids.

Surf Excel is the brand that is targeting the peoples through believes and values. Therefore they

define their product on the basis of some relating activities.

As regarding the image there is message for the peoples to avoid on the occasions to restrict

when kids are in situation of doing something extra ordinary.

Parents should encourage them.

Size

Surf Excel is available in different quantities which are as

follows

25g, 50sg, 115g, 500g, 1kg and 2kg.

List prices of surf excel

Quantity Price in rupees

25 grams 5

50 grams 10

115 grams 20

500 grams 115

1 000 grams 210

2000 grams 405


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PRODUCT LIFE CYCLE

A new product progresses through a sequence of stages from introduction to growth, maturity,

and decline. This sequence is known as the product life cycleand is associated with changes in

the marketing situation, thus impacting the marketing strategy and the marketing mix.

The product revenue and profits can be plotted as a function of the life-cycle stages as shown in

the graph below:

Product life cycle diagram

Introduction Stage

In the introduction stage, the firm seeks to build product awareness and develop a market forthe product.

Growth Stage

In the growth stage, the firm seeks to build brand preference and increase market share.

Maturity Stage

At maturity, the strong growth in sales diminishes. Competition may appear with similar

products. The primary objective at this point is to defend market share while maximizing profit.

Decline Stage

As sales decline, the firm has several options:


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Product life cycle of surf excel

Surf Excel:

Surf Excel is a product of Unilever which is at growth stage as it has large market because

Product

Itsquality is maintained and additional features and support services are added.

Pricing

Its price maintained as the firm enjoys increasing demand with little competition.

Distribution

Its channels are added as demand increases and customers accept the product.

Promotion

Itsaimed at a broader audience


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COMPETITOR ANALYSIS

ARIEL

History

When we talk about P & G then question arises what stands for

it, basically it standsfor Proctor & Gamble. Basically it came into

existence in 1837 in queen city of west.

William Procter quickly established himself as a candle maker.

James Gamble apprenticed himself to a soap maker. Soon they

started to work combine in 1837, a bold new enterprise was born:

Procter & Gamble. On April 12, 1837, William Procter and James

Gamble start making and selling their soap and candles. On

August 22, they formalize their business relationship by pledging

$3,596.47 apiece. The formal partnership agreement is signed on October 31, 1837.

They are also in the process to facilitate on the base of providing washing powder

Customer Benefit

Ariel is associating the brand with customer on the bases to give them superior quality and

makes the ground for customer to provide a theme which cause to have happiness

TARGET MARKET OF ARIEL

Ariel has adopted the strategy of market aggregation. ARIEL target market includes Middle

Class, Upper Middle Class and Upper Classes of the population of Pakistan. The Ladies of

Pakistan who are very conscious about their family.

MARKETING POSITIONING

Ariel is considered to be a trusted and premium brand of Pakistan. Procter and Gamble is

positioning their product in the best of their customer satisfaction. As charging money they are

positioning their product as best use as well as providing quality in response.

They are focusing on the quality and they are also in a motive to facilitate the customer as

providing a whole range which they can.


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Price Comparison with different brands

Brand Name Quantity Price in rupees

Surf Excel 1000 grams 210

Ariel 1000 grams 210

Brite 1000 grams 170

Express Power 1000 grams 125

Bonus 1000 grams 60


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SWOT ANALYSIS

SWOT analysis is done to know what the strength is and weaknesses of the brand are and what

are the opportunities and threats that company has to face from the environment. So here we

go:

Strengths

Enjoying economies of scale

Good will in the market

Strong financial position

Surf has become the generic name in detergents

Have Strong distribution channel in Pakistan

Abundant financial resourcesWell-known brand name

Well brand image

Committed employees


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Weakness

Low market share in N.W.F.P.

Loss of market share to ARIEL.

High rates of skin care products.

Huge inventory stock of raw material & finished goods.

Opportunities

Rapid market growth

Changing customers needs & wants as life style change

To create relation with society on the social marketing basisPakistan peoples moves from soap to detergent

Market opportunity for Surf Excel to penetrate in the new segments and

market discussion coming in after few pages.

Threats

There is very tough competition in detergents marketsLow profit margins

Smuggled brands of CHINA

New competition in the market

Increases in taxes

Increases in prices due to fuel prices

Apart from all this one major advantage they have is their own forecasting software named

ABACUS, which is used for Variance Reporting, Forecasting, Drill down Analysis and Graphing. It

helps in maintaining financial data consistency across the company. This is an added strength ofLBPL which none of its competitors have in any of the competing segment.


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FIVE FORCES MODEL

Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the

power of suppliers, the threat of substitutes, and competitive

Pressure of Buyers

When there are a lot of sellers lying in the market then buyer has power to influence.

Pressure of Suppliers

One supplier for a company can exploit the company. Therefore Surf Excel has 3 Suppliers for the

purpose to bargain with them effectively.

Threats of Substitutes

In the detergent market people have choices as they can take Surf Excel and Ariel alternatively.

Threats of new Entrance

New coming brands of China and other smuggled brands are huge threat for Surf Excel.

Threat of rivalry Competition

We have already discussed the threat of competitors in the detergent industry.


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VALUE CHAIN ANALYSIS

Lever Brothers Pakistan Limited is basically focusing on cost leadership in branded shampoos market. For

their raw material procurement they have opted outsourcing strategy. Many contents of shampoos are

procured from Europe, America, Far East and some of raw material is locally available it increases the

lead-time. Lever Brothers Pakistan Limited handles this situation with near to JIT system i.e. called

Automatic Replenishment System. Through this system the suppliers of raw material are well connected

through computer terminal, the detail and current level of all raw materials, inventory level is reflected

on supplier terminal and on specific interval they ship the raw material automatically which reduces time

for repeated requisition.

After releasing the material from customs the ingredients are shipped to Rahim Yar Khan Plant. These

ingredients are processed (both local and imported) in the machinery specifically designed for this

purpose. Normally for sache packs 8 lanes are processed at a time in one lot.

8 lanes = 8 reels

1 r eel = 1 ton or 1000 kg of shampoo in quantity

Its cutting and packaging is completed as final step. Packaging material is typically not available around

factory area. Lever Brothers Pakistan Limited has to purchase all packaging material from Packages

Limited Lahore.

Hence both primary and secondary packaging material comes from Packages Limited Lahore. Primary

packaging material includes bottles and sache packaging while that of secondary material includes the

cartons. After packaging of shampoo bottles and sache passes through distributor to retailer.

Outbound logistics start from here on demand of 6 depots of Lever Brothers Pakistan Limited, the lot is

packed and delivered to the wholesaler.

Now we will discuss that how each individual activity of value chain (both primary and supporting

activity contributes towards the maximization of profits to deliver value to final customer.


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BUYER BEHAVIOR

Research suggests that customers go through a five-stage decision-making process in any

purchase. This is summarized in the diagram below:

This model is important for anyone making marketing decisions. It forces the marketer to

consider the whole buying process rather than just the purchase decision


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MARKET ATTRACTIVENESS

This analysis is based on how every person who purchases Surf Excel give precedence to which

attribute and the result is somewhat like this:

FEATURES

CUSTOMERS

UPPER CLASS MIDDLE CLASS LOWER CLASS

PRICE 2 5 9

QUALITY 10 9 5

STAIN REMOVAL 10 8 6

BRIGHTNESS 10 7.5 5

COLOUR PRESERVATION 9 8 4

EFFECT ON HANDS 9 7 3

FRAGRANCE 8 5 2

Now we have given a maximum of 10 to most successful and attractive segment and minimum

1 for least and the result is that quality of washing powder, stain removing abilities and

brightness got maximum 10 points with upper class and so is with the middle but lower class are

of just price conscious because of low earnings. Now we look at how these ratings will fit in the

segment of Surf Excel.


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OBJECTIVES

The objectives of the Surf Excel is

To meet the everyday needs of people everywhere to anticipate the aspirations of consumers

and customers and to respond creatively and competitively with branded products and services,

this arose the quality of life.

Total commitment to exceptional standards of performance and productivity, to working

together effectively and to a willingness to embrace new ideas and learn continuously.

To maintain highest standards of corporate behavior towards employees, consumers and the

societies and world to acquire success.

The major points are as fallows.

Sales growth

Revenue

Market positioning

Enhance Market shares

Customer satisfaction

Goodwill & reputation


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MARKET SEGMENTATION

Dividing a market into smaller groups with distinct needs characteristics or behaviors who might

require separate products or marketing mix, instead like Dunkin` donuts, a company must

identify the parts of the market that it can serve best and most profitably.

Most companies are moved away from mass marketing and toward target marketing-

identifying markets segments, selecting one or more of them and developing products in

marketing programs tailored to each. Instead of scattering their marketing efforts (the

shotgun approaches), firms are focusing on the buyers who have greater interest in the values

they create well (the rifle approach).

The four major steps in designing a customer-driven marketing strategy. In the first two steps,the company selects the customers that it will serve. These steps are as follows...


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S E G M E N T A T I O N O F T A R G E T M A R K E T

GEOGRAPHIC SEGMENTATION

Country PakistanDensity Urban, Sub-urban, Rural

Population 140 million

Climate All weather

DEMOGRAPHIC SEGMENTATION

Age 20 and above

Sex Female

Occupation One earning member usually the maleFamily size Nuclear family size

Family income A & B class

PSYCHOGRAPHIC SEGMENTATION

Social class Upper and Middle class

Opinions They are aware that they have to look

good and socially conscious

Personality Authoritarian

Lifestyle Strivers and Achievers

BEHAVIOURAL SEGMENTATION

Purchase Occasion All occasion

Benefit sought Cleanliness and brightness

User status Regular user, Non user, Potential user

Usage rate Heavy user

Loyalty status Strong loyalty

Readiness stage Aware, Interested and Intending to buy

Attitude towards product Positive


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DIFFERENTIATION & POSITIONING STRATEY

MARKETING POSITIONING

Surf Excel is considered to be a trusted and premium brand because of its unique association.

Unilever is positioning their product in the best of their customer satisfaction which also

differentiate from their competitors. They are creating environment for people to have a life

easy chance.



They are also positioning as considering the fact of Strongs competition .So they are also

focusing different type of facilities.

AAA IIISSS EEE YYY DDD AAA AAA GGG HHH,,, WWWAAA IIISSS EEE YYY

DDD AAA AAA GGG HHH,,, JJJAAA IIISSS EEE YYY BBB HHH III

DDD AAA AAA GGG HHH HHH OOO OOO NNN SSS UUU RRR FFF

EEEXXX CCC EEE LLL HHHAAA III NNNAAA AAA AAA AAA AAA

The above statement is right now the positioning of Surf Excel, which is for sure giving more

focus to stain removal than anything else and also is the main function of the detergent but they

use various other strategies to deliver the customer the message that Surf Excel also cares for

the color of their clothes as well as brightness.

As being recently recommended by Gul Ahmed Textile Mills for the best fabric care detergent of

the present decade is not prejudiced as Surf Excel is fully tested by them on cloth in their

laboratories before they recommend it to public on T.V commercials which somewhat appears to

be like this:


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SSSIIIRRR FFF SSSUUURRR FFF EEEXXXCCCEEELLL HHHEEEEEEEEEEEEEEEEEE

DDD EEEYYY AAAAAA PPP KKKEEEYYY KKKAAA PPPRRR OOO OOO OOO NNN KKKOOO

KKKAAA RRR RRR RRR III DDD HHHUUULLLAAAAAA III AAA UUURRR

BBB EEEHHHTTTAAA RRR EEEEEENNN SSSAAA FFFAAA III

While positioning Surf Excel it was kept in mind that all the benefits should be communicated to

the consumers in a way that they could relate to easily.

Initially when it was launched in 1995 the positioning of the Super Active Surf and Micro Surf

was modified as:

SSS UUU RRR FFF EEEXXX CCC EEE LLL KKK III EEE KKK

DDD HHH UUU LLL LLL AAA III DDD EEE YYY KKKAAA PPP RRR OOO OOO NNN

KKK EEE YYY BBB EEE HHH TTTAAA RRR EEE EEE NNN

SSSAAA FFFAAA EEE EEE ... SSS UUU RRR FFF EEEXXX CCC EEE LLL HHH III

NNNAAA AAA

Similarly when it was relaunched in 1998 with an improved formula of cleansing the clothes

which the team of Surf Excel thought will blew off the competitors as it contains the more

advanced chemicals which give your clothes extraordinary care and brightness its positioning

was changed to:

SSS UUU RRR FFF EEEXXX CCC EEE LLL AAA BBB NNNAAA EEE EEE YYY

QQQ OOO OOO WWWAAA T

TT K

KK EEE YYY S

SSAAA AAA T

TT HHH J

JJ OOO

AAA AAA PPP KKK EEE YYY KKKAAA PPP RRR OOO OOO NNN KKK OOO

RRR AAA KKK HHH EEE YYY SSSAAA AAA FFF AAA UUU RRR

CCC HHHAAA MMMAAA KKK DDD AAA RRR


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They want that customer feels very pleased when they use Surf Excel which leads to the new

idea of Smart Power wash System which is the latest campaign started LBPL by giving a Magic

Care which requires less effort and make user free of using brushes, bleach and bar soap, is

economical and saves a lot of time of the user. Infect in Pakistan they started this trend of smart

wash by devising a new cleaning system for white and colored clothes.

UNIQUE SELLING PROPOSITION

The USP for Surf Excel is CCCooo mmmppp llleee ttt eee ccc llleee aaa nnn iii nnn ggg aaa nnn ddd ccc aaa rrr eee .

Protection against dirt and to use when stains get in deep. A Tough cleaner with color

protection formula, containing Stain pretreatment and removal activity. The company was

trying to make the point that although other brands were providing protection against dirt or

anything, Surf Excel is the detergent for all temperatures for all occasions.

DIFFERENTIATION

Differential strategy when we see towards the Unilever they have really provide the good

quality products to the consumers like packing and beautiful appearance with beautiful colors

and images as well as Unilever focusing on best quality of Surf Excel as charging the premium on

it.

COST LEADERSHIP STRATEGY

As concern of matter with the Unilever they have really adopted such technique, which shows

that they have really focused on the cost minimization through adopting different techniques &

new modern technologies.


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MARKETING MIX

Product

In product some elements are involved which are Variety, Quality, Size, Features Brand Name,

Packaging and Services.

Varity

Surf Excel is at present situation available in two

varieties

1.

Surf Excel

2.

Surf Excel Matic

Quality

Surf Excel quality is very popular among the

peoples as Dominating the washing powders

markets in Pakistan for four decades; Surf has

continued to change according to consumer needs. Since the brand has undergone numerous

product quality improvements to offer best cleaning results.

Brand Name

Surf Excel is not only the product for washing the cloths but also it has created the relationship

with customers as making grounds to promote their kids.

Surf Excel is the brand that is targeting the peoples through believes and values. Therefore they

define their product on the basis of some relating activities.



Parents should encourage them.

Size

Surf Excel is available in different quantities which are as follows

25g, 50sg, 115g, 500g, 1kg and 2kg.


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Price

Here the firms have to consider many factors for determining the price.

Selecting the price objective

Analyzing competitors costs,Prices and offers.

Selecting a pricing method.

Price is simply the cost plus profit of the firm. There are many competitors in the market. So the

firms have to consider about the competitive price while selecting new price and schemes.

Comparison of cost price with sale price of Products in product line.

Surf Excel

Quantity Cost Price in Rupees Sale Price in Rupees

25 grams 4.7 5

50 grams 9.5 10

115 grams 19 20

500 grams 110.50 115

1000 grams 199.50 210

2000 grams 385 405

Basic Method of Setting Prices

Unilever is using the following methods for price setting.

Price to Distributors

The company provides products to the distributors for the prices decided keeping in view the

cost, the target revenue and competitors prices. All distributors are being equally treated.


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Prices Charged by Distributors to Retailers

Unilever gives margin of certain percentage to distributors so in this way prices to be charged by

distributors to retailers are fixed.

Prices Charged by Retailers to Ultimate Consumers

Company influences prices charged by retailers. So retailers are bound to charge fix price to

ultimate product.

List prices of surf excel

Surf Excel

Quantity Price in rupees

25 grams 5

50 grams 10

115 grams 20

500 grams 115

1 000 grams 210

2000 grams 405

Discounts

A quantity discount is price reduction to those who buy large

volumes. This is given to increase company sales. So that firm

can have more revenues. However Unilever is allowing 1%

discount to distributors & whole sellers on purchase of Surf

Excel of worth Rs600.

Discounts on payment period

It is a price reduction to buyers who pay their bills promptly. A

typical example is 2 /10 net 30. Which means payment is due

within 30 days and buyer can deduct 2 % by paying the bill within 10 days but Unilever is not

offering such discount. They are dealing on cash basis.


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Place

HEAD OFFICE

7th

floor, the forum, suit 701-713, Khyaban-e-jami, Clifton Karachi

Phone: (92-21)111-234-234 Fax: (92-21)111-567-567, 5301729

BRANCH OFFICES

Karachi Registered Office

7th

floor Nacon house, MDM Wafai Road, Karachi

Phone: (92-21)5687494 Fax: (92-21)5684087

Karachi- KSE

Room # 70, 1st

floor, KSE bldg, Karachi stock exchange rate, Karachi

Phone: (92-21) 2429601-06 Fax: (92-21)2429607

LAHORE

5-F.C.C Ground floor, Syed Maratib Ali Road, Gulberg Lahore

Phone: (92-42) 5756701, 5777861-70 Fax (92-42) 5762790

LAHORE- DHA

75-T, Phase 2, DHA (Near lalak chowk), Lahore

Phone: (92-42) 5707411-33, Fax: (92-42)5748935


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ISLAMABAD

Mezzanine Road, RAZIA SHARIF Plaza, 90- Blue Area, G-7 ISLAMABAD

Phone: (92-51) 111-234-234, 2802241-43 Fax: (92-51) 2802244

FAISALABAD

9th

floor, State life building, 2-liaqat Road Faisalabad

Phone: (92-51)2540843-45, Fax: (92-41) 2540815

MULTAN

C-2, 1st

floor, HASSAN Arcade, MULTAN Cantt

Phone :( 92-61)4784401-02, Fax: (92-61)4784403

GUJRANWALA OFFICE

Nasir Plaza, Main GT Road GUJRANWALA

Phone: (92-55)3841346-48, Fax: (92-55)3257453

PESHAWAR OFFICE

Mall Tower, 2nd

floor, 35. The Mall Peshawar

Phone :( 92-91)5253980-88, Fax :(92-91)5253989


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Locations

As on the basis of Surf Excel Unilever is focusing on all areas through which it is possible to cover

different classesneeds.

Thats why Unilever products are available at general stores as well as departmental stores, eg:

Akbari store, Al Fatah & Decent departmental store.

Promotion

Promotion consist of a diverse collection of incentive tools, mostly short term, designed to

stimulate quicker and greater purchase of particular product/services by consumer as the trade.

Unilever Pakistan Limited places their products in local as well as in foreign market. They export

directly and indirectly. Unilever promote their products through media, and other trade

incentives to distributors and wholesalers.

Promotion methods

Advertising

Newspaper

Jang and Naway Waqt are being used for advertisement in

front page.

Television

All nationwide channels are being used to run the campaign of

Surf Excel.

Unilever has to pay the huge amount for it as advertise through

different channels, e.g.: ATV & PTV.

Radio

FM 100, FM 103 and FM 106.2 is now a daysbeing used.

Road display

Bill Boards such like at Chuburji chowk is being used where a


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kid is showing the functionality & Purpose of Surf Excel.

Sales promotion

Incentives:

Last year Surf Excel was selling as giving 1kg mango on the base of purchasing of 1kg Surf Excel

at selected areas such as Gulberg.

Samples:

Surf Excel is well known brand therefore there is no need to promote it by samples.

Personal selling

Order takers

Company has employees who perform the activity of order taking from different areas to

facilitate the retailers. There usually one day company performs the activity of order taking and

very next day they deliver the Surf Excel to the destination.

Stalls

Company arranges their stalls in the exhibition at which the products are displayed.

Public relations

Through Events

Surf Excel is creating the relationship with peoples as

associating as considering the kids importantly because they

know that when they will capture the feelings of the kids they

have the strong grounds as this segment is more favorable.

Surf Excel game masti is a chain of public relations which heldover year. Last year it was hold at Race Course Park.


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A REVIEW OF DISTRIBUTORS:

Distributors

Distributors are the institution through which availability of products is possible. Unileversdistributors have a very good relationship with them and the important thing is that they must

integrated into total marketing mix because of time and money required to setup an efficient

channel.

Unilever has Six distributors in Lahore which are as follow.

Allied Marketing at Gulberg II

Shahzad Brothers Enterprises at Murgi Hana

Sigma at Kotlakhpat

Munner & Phips at Sham Nagar

Munner & Phips at Ravi Road

Munner & Phips at Johar Town

DISTRIBUTION STRATEGIES

Unilever uses the following multiple channel of distribution.

FIRST CHANNEL

Wholesaler

DistributorRetailer

Consumer

SECOND CHANNEL

Company

Distributor

Consumer

THIRD CHANNEL

Company

Consumer

Unileveruses a lot of distributors and retailers to supply its products in each market where the

final customer might reasonably look for it. While appointing a distributor for a particular area,

management uses its own judgment to select such a person that has a potential to operate


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effectively. At present Situation for Surf Excel they are focusing by intensive manners and for

new products like Surf Excel Matic they are focusing the distribution channel by Exclusive

manners

Designing channel for Surf Excel

Unilever has adopted the method of intensive distribution for Surf Excel because the target

market of this product is segmented for washing clothes using any method.

The customer want to purchase this product from nearest shop as this is convenience product.


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S U G G E S T I O N S

We would like to suggest that first of all going for the segments of Hospitals, Hotels and

Laundries devise for them Industrial bags of about 10/20 Kg and sell it to them with economical

prices in order to make them comfortable with the deal. Provide them discounts to encourage

repeat purchase.

As far as the fragrance is concerned its ratio could be increased without increasing the price by

big numbers, as its not very expensive for them to do. It gives very pleasan t feelings to the

customer and also the danger of cannibalization is not there because of not introducing a line

extension.

As the Surf Excel 1 Kg pack is growing very faster approximately by 80% a year its sales is

increasing so no problem with this. But on the other hand the growth of 5 Gms and 30 Gms is

just 35% a year. So now important is to persuade lower class people to buy this Surf Excel.

We will also suggest that on regular basis the experts will do study of market within 3 months so

as to discover any rapid change in demand or behavior of the consumer because we have to get

on with it as and when a change is required to be successful in the market.

Product tests must be conducted in order to realize what additional benefits could be given with

it if possible and in a cheaper way so as to no one will feel overburdened while buying it .So

these are few suggestions which we made for Surf Excel.

There are some points through these Unilever can improve their overall performance

Reorganize and streamline Unilever's organizational structure.

1) Implement Unilever Believer Product and brand extensions.

2)

Provide a greater clarity of leadership, responsibility, and accountability.

3)

Allow Unilever to focus on the needs of their customers thus reigniting growth and

increasing sales potential.

4) Provide the ability to leverage scale of operations.

5) Create a strategic platform for brand management

6) Consumers demand high quality products that both are convenient and delicious.

7) Consumers look for new ways to use products

8) More females are working full time jobs

9)

Large population of single parent households.10)Increase consumer focus on health and nutrition.

11)

Delivers innovative products that capitalizes on changing consumer preferences

12)

Allows Unilever to focus on the needs of their customers and Consumers thus reigniting

growth and increasing sales potential.

13)Provides a strong competitive platform against major competitors and private label

brands.


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CONCLUSION

As the end of every task we have to draw conclusion about that task. Either is good or bad. We

have to summaries our project in a way that what we have done in the project or what we learn.

In this portion we have answer of what when and why. As it a last portion of our project we

have lot about topic and selected organization. As Unilever is a multinational organization. It

has branches in almost all over the world. It uses almost all type of segmentation as there is

different type of segmentation so it also have different type of target market so different

segmentation strategies some with target strategies. Due to different region whether people,

perception, value and Ideas. That means there are many people in Unilever on quite a steep

learning curve! Until now, most of the performance reporting was based on production-related

metrics. Those metrics will now be reinforced by measures looking at different impacts per

consumer use. That may not sound like a big shift, but its fundamental to enabling Unilever to

manage the impacts of its brands As it also have kind of differentiation and positional maps to

get customer values. Company has different strength and opportunities to explore its. This is a

hard task made harder by today's pressures from the financial markets and consumers alike.Unilever's analysis in this sustainability report shows how much is happening across the

company as it seeks to embed principles of sustainability and vitality with integrity. None of this

has reached perfection, but, as the examples of its tea, palm oil and greenhouse gas reduction

efforts show, progress is a moving target Importantly, the report shows how much more can be

done if customers and supply chains play their role in greening demand and greening supply. A

prerequisite if we are to use todays crisis as an opportunity to green economic recovery. It also

has lot of care about weaknesses and threats that may severely affect the organization. Due to

present situation of inflation, working of firm can have large impact. In short, its a

multinational organization. They are putting their best efforts to for the betterment of

companys working.


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BIBLOGRAPHY

PERSONALITIES

COMPANY SECRETARY

MR AMAR NASEER

CHANNEL DEVELOPMENT MANAGER

NASIR MEHMOOD

TARITARY MANAGER

ZAIN-UL-ABDIN

TARITARY MARCHENDISING MANAGER

AKBAR ALI CHEEMA

CELL NO-3006143553

WEBSITES

WWW.UNILEVER.COM

WWW.SMEDS.COM

www.google.com
http://www.unilever.com/http://www.smeds.com/http://www.smeds.com/http://www.unilever.com/

final mm project(abubakar)

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