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All praise is due to Allah, the lord and cherisher of the university. May his pace and blessings be upon prophet Muhammad (PBUH), his household, companions and all followers of the right Guidance till the day of Judgment.
First of all we are thankful to ALLAH Almighty who has created us, gave us the power to understand and the power to gain knowledge. Without His kind guidance we would have not been able to complete any task given to us. We are great full for the guidance which has been allotted to us from Allah Almighty to understand and gain knowledge.
Allah, the Exalted, says: " Say: Are those who know equal to those who know not? It is only men of understanding who will remember."
We give honor and privilege to our respected resource person who helped us in thinking in the right direction by giving us this challenging task. . We would also like to thank our families, who added a boost to our confidence, and are always praying for our success
UNILEVERS PROFILE:
On any given day, two billion people use Unilever products to look good, feel good and get more out of life. With more than 400 brands focused on health and wellbeing, no company touches so many peoples lives in so many different ways. Its portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. They produce world-leading brands including Lipton, Knorr, Dove, Axe, Hellmanns and Omro, alongside trusted local names such as Blue Band, Pure it and Suave.
INTRODUCTION TO UNILEVER
Unilever Pakistan limited, subsidiary of the lever brothers group in operating in Pakistan since 1948,the companys main business lines are soaps, detergent, personal product, cooking oil and fats, tea product & ice-cream. Unilever has a long list of world fame brands like surf, vim, rim, life boy soap and shampoo, sunlight, lux soap, rexona soap ,sun silk shampoo, close-up tooth paste, blue band, dalda , planta, taaza and Richburg, Liptons yellow label etc. while continuously exploring expansion opportunities in various field, focus remains on the companys core business of detergent s and food and beverages .Alongside these are the result of the continuously changing marketing environment. Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistans economic development cannot be overestimated. Now operating four factories at different locations around the country, the company contributes a significant proportion of the countrys taxes. It employs a large number of local managers and workers. It provides pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies into the country. The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid60s. By this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated near the factory is the home of UPL employees at Rahim Yar Khan.Unilever Pakistan Product, Sub-Product Line: Unilever Pakistan Adding 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. There vision Unilever products touch the lives of over 2 billion people every day whether thats through feeling great because theyve 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.
core attributes, personality, and positioning by appraising its market category, target consumers, and competitors, as well as the attitudes and beliefs of their own employees. In addition, governmental legislation and taxation, political issues, social and environmental pressures, cultural differences, local customs, religious restrictions, consumer tastes, and different languages will need to be considered. Accounting for all these details in one worldwide brand is no small feat and, while it is often attempted, it is truly achieved by only a few consumer brands
Unilever Pakistan Limited manufactures and markets home and personal care products, beverages, ice cream, and spreads in the United Kingdom. The company provides food products, such as soups, bouillons, sauces and dressings, noodles, complete meals, margarine and spreads, olive oil, and tea, as well as frozen foods; cleansing and hygiene products for the home care market; and skin cleansing, deodorants, and antiperspirants for personal care market. It offers its products under Close Up, Axe, Dove, Rexona, Sunsilk, Wheel, Rafhan, Surf Excel, Comfort, Lux, Ponds, Lifebuoy, Lipton, Brooke Bond, Energile, Knorr, Pearl Dust, and Supreme brands. The company was founded in 1872 and is based in Karachi, Pakistan. Unilever Pakistan Limited operates as a subsidiary of Unilever Overseas Holdings Limited.
KEY TO SUCCESS:
To build customer value, satisfaction and hardcore loyalty with the brand.
UNILIVERS MESSAGE
We have always believed that dirt is a valuable way to enrich our lives, both young and old. To ensure that everyone, anywhere in the country, can share in this initiative, we're investing heavily in developing a range that suits the pockets of all income groups.
VISION OF UNILEVER:
To be the best consumer product company in Pakistan and all around the globe in all departments that we deal in.
Operational achievements
Unilever is one of the worlds top three food firms after Nestle and Kraft Foods. It is worlds second largest packaged consumer goods company behind Procter & Gamble Strong broad-based underlying sales growth of 7.4% across categories More competitive cost base: 1.1 billion savings from supply chain and organizational efficiencies Increased investment behind its brands Portfolio reshaped through disposals, including North American laundry, Boursin, Lawrys and Bertolli olive oil Portfolio strengthened through the acquisition of Inmarko ice cream in Russia and the planned acquisition of the TIGI hair salon brands Named International Supplier of the Year by Tesco for the third year running
Brands of Unilever:
Unilever is currently one of the biggest consumer goods company in the world having various brands. Their leading brands have international appeal because they meet a need or fulfill a desire that people share, no matter where they live. Some of their major brands available in Pakistan are:
Food:
Knorr, Lipton, Rafhan, Supreme, Walls, Energile, Broke bond A-1, Blue band
STAR: Lux Sunsilk Walls Fair & lovely Rafhan Energile QUESTION MARK: Clear shampoo Rin Comfort DOG: Wheel Supreme tea Lifebuoy shampoo
Culture
Shared values, traditions and norms of a company and internal behavior of an organization are known as its culture.
Unilevers Culture
In Unilever, the culture is consumer-oriented and they consider more their customers and also tried to give their best services. Unilevers culture varies from country to country. The most important are their high standards of corporate behavior which are enshrined in our code of business principle. Here at Unilever we value colleagues as individuals, were friendly towards each other and we are informal in terms of corporate behavior and, to a large extent, dress code. Finally, we believe in every ones ability to develop and grow. Whatever our functions, role or level, we all have an equal right to take advantages of learning opportunities and progress how we want to in our chosen career.
Environment
The factors and forces in the area in which organization is operating are called its environment.
External Environment
external environment includes those factors and forces outside the organization that affects the organization performance. There are basically two types of factors affecting an organization from external environment.
General Environment
The general environment includes: Economical factors Political factors Technological factors Global factors Socio-cultural factors Demographic factors All these factors have an equal impact on Unilever and its operations as does the specific environment of Unilever. political factor had a huge impact on Unilevers operations in Pakistan because of instability of this factor in Pakistan. Other than that other general factors of external environment including technological factor, global factor, socio-cultural factor, demographic factor and economical factors also have huge impact on the organization.
Unilever has developed its strength worldwide in acquisition of other firms, and their subsequent Unileverization. Unilever has been trying to become a transnational organization, and to some extent it has succeeded in doing so. Unilever employs about 174 000 people in 100 countries worldwide, and supports the jobs of many thousands of distributors, contractors and suppliers.
PR is a primary concern for every CMO and brand manager. If marketing and PR are not the same department, tear down the wall. NO need to be ashamed of profit Social media is not a strategy. You need to understand it, and youll need to deploy it as a tactic. But remember that the social graph just makes it even more important that you have a good product. And as far as policy is concerned Unilever also has certain policies like they could have policies like having pop musicians in advertisement of a certain product all over the world.
Strategies
decisions and actions that determine the long-run performance of the organization are called strategies. Unilever basically works on growth strategy as growth is the key to sustainable long term value creation, and because growth is where Unilever has been deficient in the past. Through the 80s and 90s, Unilever volume growth averaged around 2.5%. In 1990 they launched a 5 year Path to growth strategy. Their goal is to bring about a sustained step-changed in Unilevers growth rate.
New strategy
The new strategy opted and being used by Unilever is to reorganize its organizational structure to focus on needs and wants of consumers and brand management. This strategy is based on product and brand extensions and using advertisement to connect with consumer needs and increase consumer focus on health and nutrition products.
Advertisement
In year 2008 Unilever spent about 5055 MN (euro) on advertising and promotions of their product. The mediums used by Unilever for marketing purpose are: Paper Media Print Media Electronic Media Online media
Strengths:
Strengths are internal factors to the organization. Unilever is one of worlds leading fast moving consumer goods (FMCG) companies. In year 2008 its Net profit increased from 4136 Millions to 5285 Millions (euro). Major strengths of Unilever are as following: The first and most important strength of Unilever is the image of the company itself. Strong brand names. Most of Unlivers brand names are leading products in their particular category e.g. blue band, surf excel etc. Unilever has got Sound and experienced management with qualified executives running operations. Excellent marketing department assisted by a highly regarded marketing research unit. Merger with Brooke bond was expected to result in cost saving and spur earnings growth and its working as per expectations. Unilever products have good reputation among their customers because of good product quality. Diversity of its product line is also a major strength of Unilever.
Weaknesses
Weaknesses are that what the organization cannot do but its competitors can do better than it. About 80% of raw material is imported for the manufacturing of the consumer goods. Raw material constitutes about 85% of manufacturing cost, leaving Levers margin exposed to rupee devaluation. Rampant smuggling of tea and detergents has seriously affected levers sale and earning. Unless the govt. takes serious steps to curb smuggling growth in sales and earning will continued to be significantly restrained. One of the weaknesses of Unilever and its products especially when selling in a developing country like Pakistan is its product prices which are a little if not more higher than what a regular rural person could afford. Another weakness for Unilever is what should be its major strength as well. The size of corporation is so huge that its difficult to manage all the units and their specific departments. So sometimes some products get more attention and some stay hidden from sight.
Opportunities
Opportunities are the chances for an organization to do better. The rapid expanding urban population in Pakistan is the key opportunity for Unilever to extend its sales. Awareness growing in rural areas due to education and children with family members abroad sending foreign income is also potential costumers for Unilever. Unilever can also stretch their market to African countries where there could be a large market for their products in the future.
Threats
Threats are the hurdles for an organization to proceed. Procter & Gamble is the significant multinational company and a major threat with presences in soap, detergents and personal products. Rise in the inflation rate in the world because of economic crisis can also results to fall in sales of the company due to low purchasing power of consumers. Inflation rate also affects companies cost of production because rise in prices of raw material There are many competitors of Unilever in Market including P&G, Nestle and Kraft Foods who are fighting hard to leave one another behind. Instability of Pakistani Political system has always been a major threat for companies operating in Pakistan and its not different for Unilever. Changing political system affects Pakistani economy as well as organizations operating under it. There is also a trend of rising small competitors in Pakistan in consumer product industry recently which can also affect Unilevers sales especially in rural areas.
Conclusion
Unilever is a very strong multinational corporation with a lot of strengths, including its strong management, to run its operations to the heights of success. It also has a few weaknesses but those are very minor ones that are present with every organization and it also has got the resources and managerial muscle to cope with those weaknesses and threats. It also has major opportunities to flourish its business to African continent and to rural areas in developing countries like Pakistan and India. In the near future with globalization of world continuing Unilever will be even bigger and stronger.
COMPANYS PROFILE:
INTRODUCTION:
Walls was bought by Mac fisheries in 1920 who then sold Walls to Lever Brothers in 1922. In 1922 by the 1950s, wartime rationing produced a big appetite for ice cream sales reached 46 million by 1959 and Walls opened a large ice cream factory in Gloucester. Supermarkets began to stock ice creams in addition to small high street shops. Market research in the 1970s showed that practically everyone loved ice cream. Walls ice cream started production. Walls ice cream introduced in 1995 in Pakistan under unilever brand. Unilever is one of the biggest brands in Pakistan and 56 other brands are registered under unilever brand. "Meeting the everyday needs of people everywhere". It is the world number 1 in ice-cream, margarine, and tea-based beverages; also in personal wash, prestige fragrances and deodorants. Unilever's packaged foods business is the world's third largest after Nestle and Kraft. Yet at the same time, the group has pruned its portfolio by 75%, disposing of some regional products and rebranding others in order to concentrate on a smaller roster of global power brands. Advertising Age estimated global measured advertising expenditure of $3.5bn in 2004 making Unilever the worlds number 3 advertisers. Founded 1930 Employees 350,000 Sales $25.3 Billion Profits $982 Million Headquarters London, England and Rotterdam the Netherlands 3d-largest company in Britain Worlds largest margarine producer Worlds largest soap and detergent maker Worlds largest maker of packaged tea Worlds largest ice cream maker Worlds 3rd-largest advertiser Worlds 16th largest industrial company Rank Worlds largest consumer products company
Unilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice. 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.
The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st century-consumers with its Vitality mission. Ice
cream is made from milk, fat and sugar. These are cooled as they are mixed, then whipped to create a light, airy texture. Flavourings, fruit or chocolate are added then the whole mixture is frozen again before packaging. Walls have been continuously adding new products to its range. As a result Walls has registered a significant increase in its sale volume during the last ten years in Pakis
Mission Statement
Unilevers
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.
Two scoops of Cornetto (a 100ml serving) have only 79 calories and 2.4g fat. Magnum Light (170 calories/10g fat) has 30% fewer calories and 33% less fat than Magnum Classic.
BCG MATRIX
Question Mark:
Products with low share of a high-growth market
Star:
Products with high share of a high-growth market
Cash Cow:
Products with high share of a low-growth market.
Dog:
Products with low share of a low-growth market.
Key facts
Unilever is the world's biggest ice cream manufacturer, with an annual turnover of 5 billion. Heart brand products are sold in more than 40 countries. The Heart brand operates under different names in different markets (Wall's in the UK and most parts of Asia, Algida in Italy, Langnese in Germany, Kibon in Brazil, and Ola in the Netherlands). Ice cream is an impulse buying product it is related to happiness, fun and togetherness. Ice cream is a frozen product made from a combination of milk products and eggs, sugar dextrose corn syrup etc. It was once considered a sophisticated item of food is now becoming increasingly popular among the people. There are small, medium and large manufacturers of ice cream in Pakistan. Walls have divided the ice-cream products into three main categories.
1. 2. 3. impulse item In home bulk pack
Impulse Item
Impulse items are produce especially for kids and teenagers. KIDS: It includes Rocket, Twister, Bigger Three, and Vanilla cup, Rainbow Berry Dip and Choc Dip which are for kids. SLOGAN:
TEENAGERS:
It includes jet sport, Kings Kulfa
, Mango
Kings Kulfa, Light Vanilla, and Choc Bar, Cornetto, Pop cone, Chocolate Passion, Magnum, and Feast SLOGAN: All Hearts All Walls.
IN HOME:
In home ice cream products are especially designed For family and adults which includes liter and half liter packs also Have half and full packs. It includes Tutti Fruity, Cassatta, Kings Kulfa, Mango, Chocolate chip and many more.
SITUATION ANALYSIS
1. General state of the economy On the back strange economic recovery of last year Pakistans economy is gathering even greater momentum during the current fiscal year (2004 - 05). GDP is targeted to grow by 6.6% in 2204-05 powered by a strong growth in manufacturing (10.2%) and continuing robust performance in services (6.2%) and agriculture (4.0%). The GDP growth is likely to exceed the target and may end up at around 7% the highest growth in the last 15year. The literacy rate of Pakistan is estimated at 54% of both sexes.
Magnum Feast Cornetto They have three main categories in their production line; Impulse item In home Bulk pack They are importing all raw materials from abroad.
3.
Over half the respondents claimed that Walls product was their favorite brand of ice-cream (adults: 56%, children: 59%). (Not unsurprisingly, this correlates with respondents most recent purchases (for respondents stating that their most recent ice-cream purchase was a Walls variety 80% adults and 86% children claimed a Walls product was their favorite. Magnum takes the top spot again with around a fifth of adults and children (19%) claiming it as their Favorite. Around half of the respondents (adults: 52%, children: 49%) agree that the price of their favorite brand varies across the different outlets they usually buy from, supporting the wide range of prices actually recorded by brand. Walls Twister are priced the lowest of the branded products (Twister: adults 74%, children 69%
4. Ice-Cream
Purchase Behavior
Respondents were asked to think about their ice-cream buying in general (rather than most recent occasion/purchasing of favorite brand/variety) and to determine which of three statements best applies to them. Most (around 6 in 10) would prefer to buy their favorite, but will buy another kind if it is not available. The vast majority of the remainder are generally happy to choose from what is available.
SWOT ANALYSIS
Strengths: Strong brand equity. Quality product Larger dealers network Country wide availability Production under Unilever brand is one of the biggest strength for company Innovative (using latest technology for the manufacturing of the ice cream and all system
is computerized) Unique innovative packing
Weaknesses:
Perception about the company is that it is specially made for high class consumers. This perception is affecting company image although Walls is making ice cream for every class and they have those products which are ranging from 5 to 30 which can be affordable for the poor people. Weather barrier is also the factor which is affecting the production of the ice cream and can be taken as a weakness for the Walls Product price high with respect to the competitor in some flavors
Opportunities:
Range of the products can be increased especially for the kids Kids are the big opportunities for the company Increase in the population Unilever brand is the big opportunity for the Walls as it is well known internationally If any multinational company launch ice-cream product then it will be a big threat for the company but up till now company is not facing any kind of threat.
Threats:
Demographic:
When we talk about ice cream we have three social classes who are the potential customers Higher Class Middle Class Lower Class The companies like galaxy mars and move pick are classified as higher end and middle end products and they are costly as compared to walls.
The companies like Yummy, Igloo, and Rocco are middle end brands they are low prices products they are for price conscious people who belong to middle class and lower class of the society. When we talk about Walls Company it is targeting the three major classes of the Pakistan society. Price ranging from 5 to 150 which is affordable for every class of Pakistan. According to present situation demographic factor are not affecting the company a lot but it play a sufficient role. Cultural and Social Environment: Most of the population of the Pakistan belongs to middle class who are potential customers of our product. So the scope of the company is high. On cultural festival walls offering special offers on ice cream. Lucky draw, coupon scheme included in such offers by the walls. They also have a big part in cultural promo which reflects the culture of Pakistan. Economic and Technological Environment: There is a great boom of manufacturing varieties of ice cream and great demand from the people for new flavors. New shapes in ice cream style or stylish ice cream are attracting big population of Pakistan for the new style and shape walls are using computerized system for manufacturing hygienic products. High machinery is placed in main manufacturing units of walls. This technology is growing day by day which is affecting the manufacturing of ice cream and publicity of company. Walls are affordable and easy to eat with great taste. Political and Legal Environment: The political condition of Pakistan is highly uncertain and unstable but from few years we have seen some consistency in government policies which encourage the foreign investors to invest in Pakistan. Walls have strong status because ice cream is manufacturing under unilever brand. Unilever is one of the biggest multinational company in Pakistan in paying high amount of taxes and contributing in Pakistan economy. So there is no political pressure on Walls Company from the government of Pakistan.
Competitors Environment: There is a pure competition in this industry. The product is homogeneous and there are large number of buyers and sellers as well. There is easy entry and exit of buyers. To promote the product all the companies are using high price strategy. There are eight companies in frozen desert industry including walls who are competing with each other with respect to price and quality. Ecological environment: The global warming is one of the biggest issues these days. The ever increasing heat in this part of the World is unbearable so there must be a cool stuff after lunch and dinner. Especially in countries like Pakistan where the summer season is quite an extended one.
KEY PRODUCTS
Magnum FEAST
MAGNUM
Bar Chart
50 45 40 35 30 25 20 15 10 5 0 2001 2002 2003 2004
Magum fast cornetto
Graph
50 45 40 35 30 25 20 15 10 5 0 2001 2002 2003 2004
Magum Fast Cornetto
Pie Chart
Conclusion
In this project we discuss the history of the walls company and product line in Pakistan. There are many competitors in the market. After the analysis this company is the number one ice cream company in Pakistan. This company is the project of Unilever they sold Walls to Lever Brothers in 1922 this company is not only in ice cream but they Walls ice cream introduced in 1995 in Pakistan under Unilever brand. Unilever is one of the biggest brands in Pakistan and 56 other brands are registered under Unilever brand. Unilever is FMCG Company and is selling 150 million products daily all over the world. It is just because of development and usage of information technology in the strategy and operations of the organization.
Internet
1. www.unileverpakistan.com 2. www.walls.co.uk 3. www.wallspakistan.com