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Principle of Management project

Touching hearts,
5th of May , 2015
changing lives
Unilever Pakistan

1. Submitted By

Asifa Baloch
Noor-ul-ain Samad
Zil-e-huma
Humaira Almas
Sania Arshad
Kanwal Shehzad
Aqsa Qambrani

2. Submitted to
Maam Lubaina

3. Institute
Sardar Bahadur Khan womans University , Quetta

I.

EXECUTIVE SUMMARY:

SWOT is a method for analyzing any organizations internal strengths


and weaknesses and external threats and opportunities.
SWOT is very important for knowing organizations strategic position
and for evaluation of business environment and so on.
UNILEVER was created in 1930 when the British soap-maker Lever
Brothers merged with the Dutch margarine producer, Margarine
Unie.
Its a fast moving consuming goods (FMGC) company and operates
over 150 countries in Asia, Africa, North America, Middle East, west
Europe and Latin America.
UNILEVER Company came into the Pakistan market in 1949 with the
name of Lever Brothers Pakistan
Changed the name Lever Brothers Pakistan to UNILEVER in

year 2003.
The leading consumer products company in Pakistan, a

multinational with deep roots in the country.


Vision of UNILEVER is to meet daily needs of nutrition, hygiene and
products for people that help people to look god, feel good.
Its mission is to serve everyday needs of all consumers everywhere
for food, hygiene and beauty through its products.
The strong competitors of UNILEVER are P&G, Nestle and RB.
It deals with over 400 products in Pakistan.
The strategic plan of UNILEVER is to make sustainable living place
and have proposed many goals to implement this plan.
By SWOT analysis UNILEVER is a strong company and has less
threats and weaknesses.
UNILEVER should discover new markets, new quality products and go
on with unrelated diversification and should expend market in rural
areas.

II.

SWOT Analysis
Acronym:
(S) Strengths, (W) Weaknesses, (O) Opportunities and (T)

Threats.

Definition:
This is a method of analysis of the environment and the
company's standing in it. Strengths and weaknesses are considered to
be internal factor over which have some measure of control,
Opportunities and Threats are considered to be external factors over
which have essentially no control.

Importance:
SWOT Analysis is the most renowned tool for audit and
analysis
of
the
overall
strategic position of the business and its environment.

When examining the potential for a new business or product, a SWOT


analysis can help determine the likely risks and rewards. SWOT, which
stands for Strengths, Weaknesses, Opportunities and Threats, is an
analytical framework that can help your company face its greatest
challenges and find its most promising new markets.
SWOT Analysis brings to light whether the business is healthy or sick.
It views all positive and negative factors inside and outside the firm
that affect the success.
It helps in the formation of a strategy so as to make preparations for
the possible threats from the competitors.
SWOT analysis may provide the basis for a comprehensive approach to
strategy.
SWOT analysis evaluates the business environment in a detailed
manner so as to take strategic decisions for the future course of action.

III.

UNILEVER

More
than
2
UNILEVER product
worlds
leading
goods across food
categories sold in
portfolio includes
most
loves

billion consumers worldwide use a


on any given day. It is one of the
suppliers of fast moving consumer
and home and personal care
over 190 countries. UNILEVERS
some of the worlds best known and
Brands.
(Unilever Pakistan Limited)

Parent Company

Unilever Limited

Category

Consumer Products, Food & Beverages

Sector

FMCG

Tagline/ Slogan

Small Actions, Big Difference

USP

Pakistans largest fast-moving consumer goods company

I.

Reasons for choosing

UNILEVER enjoys a leading position in most of its core Home and Personal
Care and Foods categories, e.g. Personal Wash, Personal Care, Laundry,
Beverages (Tea) and Ice Cream. The company operates through 5 regional
offices, 4 wholly owned and 6 third party
manufacturing sites across Pakistan. In fact,
the nature of UNILEVER business enables its
brands to be the pulse and heartbeat of the
164 million people in Pakistan. This is a
huge commitment, which attracts us
towards the UNILEVER Company.
As we are also using unilever
products so its kind of Fun to make a
project on unilever

II.

History

of

UNILEVER was created in 1930 when the British soap-maker Lever


Brothers merged with the Dutch margarine producer, Margarine Unis.

At that time, an international merger was an unusual move. But the


owners of the two companies could see that bringing together
complimentary businesses with strong global networks would create
new opportunities.

In the Thirties, UNILEVER introduced improved technology to the


business. The business grew and new ventures were launched in Latin
America. The entrepreneurial spirit of the founders and their caring
approach to their employees and their communities remain at the heart
of UNILEVER'S business today.

UNILEVER has universal appeal. One of the largest producers of


packaged consumer goods, UNILEVER operates in 150 countries in Asia,
Africa, North America, the Middle East, Western Europe, and Latin
America.

UNILEVER is one of the world's leading suppliers of fast moving


consumer goods in foods, household and personal care
products. UNILEVER are growing biggest brands through innovative
product development and compelling brand communications. Each of
these brands has enormous potential to meet the changing needs of
consumers through a variety of products that fulfil their brand's promise.
At the same time they also have the potential scale, profitability and

international appeal needed to be world-leaders.

III.

Introduction to UNILEVER Pakistan Ltd

UNILEVER Pakistan (70.4% UNILEVER equity) is the largest FMCG Company in


Pakistan, as well as one of the largest multinationals operating in the country.
UNILEVER Pakistan Ltd., a subsidiary of the UNILEVER Group is operating in
Pakistan since 1948. The Companys main business lines are Soaps and
Detergents, Personal Products, Cooking Oils and Fats, Packed Teas, and Ice
Creams. UNILEVER has a long list of brands such as Surf, Vim, Rin, Lifebuoy,
Sunlight, Lux, Rexona , Sunsilk, Close-Up, Blue-Band, Dalda, Planta, Liptons
Yellow Label, Taaza and Richbru, Brook Bonds Supreme and Kenya Mixture
etc. which are common household names in Pakistan . The companys
factory Rahim yar Khan was the first industrial units to be constructed after
the creation of Pakistan. As the consumer base expended over the years and
the company entered into new product lines like personal products and
margarine, it invested further in the installation of modern manufacturing
facilities including a factory at Karachi. Today, the Company is using latest
state-of-the-art technology for producing high quality products .In 1995, the
Company established a new factory near Lahore to manufacture the Walls
range of ice creams, which have become popular within a short time. In
1996, the present group UNILEVER UK acquired the Polka Group that
produced ice creams. In 1999, Pakistan industrial promoters (Private)
Limited, owners of Polka brands of Ice Cream were merged with Lever. In

order to leverage the synergies of UNILEVERS


international brand strength, market edge and corporate
image, lever Brothers Pakistan Ltd. changed its name to
UNILEVER Pakistan Ltd., in August2002.

IV.

Vision and Mission.


Vision:
We help people meet needs for nutrition, hygiene and wellbeing, with
brands that help people look good, feel good and get more out of life.

Mission:
i.

ii.
iii.

iv.
v.

vi.

Key element of UNILEVER strategy is aim at doubling the size of


UNILEVER while reducing impact on the environment. Its a goal that
UNILEVER is seeking to achieve by developing new ways of doing
business through which can minimize the direct impact.
By working with suppliers, consumers and the retailers who sell our
brands to improve their sustainability credentials.
We attract and develop highly talented people
who are excited, empowered and committed to
deliver double-digit growth.
Through managing a responsive supply chain,
we maximize value from suppliers to customers.
We serve the everyday needs of all consumers
everywhere for foods, Hygiene and Beauty
through branded products and services that
deliver the best quality and value.
UNILEVER is also accountable to the stakeholders by Make a positive
difference to the lives of low income consumers. Create new
opportunities for growth. Improve the overall quality of life in Pakistan,
by promoting education, nutrition, health and hygiene.

V.

Rivals of Unilever

As UNILEVER is top maker of consumer goods worldwide. They are sold more
than 190 countries. The company offers many categories like dressing spreads ice
cream and beverage personal care and home care etc. The best sellers include
mayonnaise, Knorr in soups Lipton in tea, dove and lux in soaps and sun silk in hair
care.
The Major companies that are competing unilever are P&G, Nestle, Coca-Cola,
KRAFT , Pepsico , Mars , Johnsons-Johnsons.

VI.

Products & Markets


Product Portfolio

Bran
ds

Spread and cooking products

Home and personal


o Personal wash
Toilet soaps
Lifebuoy
Lifebuoy Gold (2
Variants)
Lux (5 variants)
Rexene( 3 variants)
Breeze sunlight
o Bar laundry care
Surf Excel
Sunlight Washing
powder
Sunlight Bar
Wheel washing powder
o House Hold
Vim wash bar
Vim scours magic bar
o Hair products
Sunsilk
Lifebuoy shampoo
o Skin Care Products
Fair and lovely
Ponds
o Dental Products
Close up toothpaste
Pepsodent

o Cooking products
Dalda cooking oil
Dalda sunflower oil
Planta cooking oil
Crisp N Dry
Dalda lajawab
o Spreads
Blue Band
Beverages

Lipton Brands
Yellow label
Pearl dust red rose
Kenya mixture

Ice creams
o

WALLS POLKA
Corrnetto
Pop cone feast
Choc-bar top ice cream stick
Star cup
Panda
Calliope jet spot
Orange big
split king
Kulfa
Big slice
Big fruiti king
Kulfa cups
Max Rambo
Half liter
Max kulfi liter pack
Blue Beny
Magnum

Some Products of UNILEVER

4. The strategic plan of


UNILEVER has, from its origins, been a purpose-driven company.
Today our purpose is to make sustainable living commonplace.

I.

The challenge

With 7 billion people on our planet, the earths resources are under immense
strain. We are living in a world where temperature is rising, water is scarce,
energy expensive, food supplies uncertain and the gap between rich and
poor increasing.
We cannot close our eyes to the problems the world faces. UNILEVER believe
that business must be part of the solution.
But to be so, business will have to change.
Sustainable, equitable growth is the only
acceptable business model.

II.

The compass

UNILEVER calls its business strategy


document the Compass, since it sets out a
constant path for UNILEVER for the long
term. First developed in 2009, it was
sharpened in 2012 but its core elements
remained the same. The Compass lays out
our ambitious purpose and vision:

Purpose: to make sustainable living


commonplace

Vision: to double the size of the business, whilst reducing our


environmental footprint and increasing our positive social impact

III.

Making sustainable living commonplace

Our purpose as a business is about helping to build a world where everyone


lives well and within the natural limits of the planet:

Brands that offer balanced nutrition, good hygiene and the confidence
that comes from having clean clothes, clean hair and good skin

Products which are sustainably sourced and used in a way which


protects the earths natural resources

Respect for the rights of the people and communities we work with
throughout the world.

We work to create a better future every day, with brands and services that
help people feel good, look good and get more out of life.
We are leveraging our global reach through Project Sunlight, our new global
initiative to motivate millions of people to live sustainably by taking small,
everyday actions that make a big difference to the world.

UNILEVER Sustainable Living Plan


Launched in 2010, the UNILEVER Sustainable Living Plan is our blueprint for
sustainable growth. It is our strategic response to the challenges we face in
doing business in an uncertain and volatile world. The Plan is helping to drive
profitable growth for our brands, save costs and fuel innovation.
Our Plan sets out three big goals.

Improving Health and Well-being: By 2020 we will help more than a


billion people take action to improve their health and well-being.

Reducing Environmental Impact: By 2020 our goal is to halve the


environmental footprint of the making and use of our products as we
grow our business.

Enhancing Livelihoods: By 2020 we will enhance the livelihoods of


millions of people as we grow our business.

Underpinning these goals are nine commitments supported by targets


spanning our social, environmental and economic performance. For each of
our targets, we have established
objective measurement techniques,
including appropriate estimates and
assumptions.

5. SWOT Analysis of Unilever


Identifying Unilevers Strengths weaknesses,

I.

threats and opportunities.

Strength
UNILEVER is a multinational company
Customers loyalty
Latest state of the art facilities and technology for producing high
quality products.
Committed to business ethics , safety , health community
UNILEVER is enjoying market edge of 41% in FMCG in
industry .UNILEVER is at number 1 in ice cream segment and having
14% market share all over the globe
. Sound and experienced management.

UNILEVER key competitive advantage over the market participants is


the retail reach of the company. UNILEVER services 500,000 outlets
with 50% through direct distribution and remaining via wholesalers.

II.

Weaknesses

Operational complexity due to a large number of products in


portfolio and due to diverse work force

Loss of market share to Tapal in Karachi and Multan


Strategic alliance with other small mills for manufacturing purpose
is the weakness as well as a threat for UNILEVER.
Although UNILEVER claims that it is a part of its cost reduction
strategy but it cannot hide the reality that it shows weakness of
UNILEVER

III.

Opportunities

IV.

Markets of developing countries can be proved a profitable


segment because people are consumption oriented rather than
saving or investment oriented.
Rapid increase in world population. World population is set to
grow by 800m in 2010 and almost all increase will be in
developing countries.
Diversification in unrelated business
UNILEVER can gear up its market share in the untapped rural
market.

Threats

P&G is the major competitor and threat for UNILEVER, other


organized players are nestle and R&B.
Rapid increase in raw material cost in supply disruptions from
suppliers of raw material. Going forward high raw materials
cost are the key risk to UNILEVERS profitability.
FMCG market is highly responsive economic conditions
inflation and social disruptions resulting in variations in sales
revenues and demand for the company.
UNILEVER is facing intense competition from unorganized
players is that cheaper smuggled products and Chinese
products. Threat from cheaper tea smuggled into the country
via border areas of NWFP and Balochistan seriously affecting
Levers sales and earnings.

SWOT Analysis of UNILEVER


Strengths
1
.
2
.
3
.

International Company.
Customers loyalty.
Competitive advantage over market
participants.
Sound management.
No. 1 ice cream segment and Tea.

4
.
5
.

Opportunities

Weaknesses
1
.
2
.
3
.
4
.

Complexity in operationalizing due to


diverse work force.
Loss of tapal market share.
Weak strategic alliance.
Low market share in N.W.F.P

Threats

1
.
2
.
3
.
4
.

Diversification is unrelated.
High rate of population growth.
Can gear up in market share.
Rising Literacy.

1
.
2
.
3
.

Threat of competitors.
Rapid increase in cost of raw materials.
Inflation and social disruptions.

6. Conclusion
I.

S-O Strategies:

Use a firms internal strength to take


advantage of external opportunities.

II.

Discover new markets , New quality


products , Unrelated diversification

W-O Strategies:

Aim at improving internal weakness by


taking advantage of external opportunities.
Market expansion in rural areas

III.

S-T Strategies
List firm strength to avoid or reduce the impact of external threat.
Vertical integration.

IV.

W-T strategies

Are defensive tactics directed towards internal weaknesses and avoiding


external threat.
Increases in manufacturing capacity, cost leadership.

More Strategies
UNILEVER commitment to business ethics, safety, health environment
and community can be proved helpful in order to satisfy hygene
conscience customers. UNILEVER should focus more on quality of
goods.
Unrelated diversification is a risky decision to be taken. Loyal customer
is the major power to cope up with after effects of this decision.
Customer in rural areas and in developing countries usually have low
income lever. UNILEVER should reduce its costs I order to capture that
uncover markets effectively.
Strategic alliance since showing the weakness of UNILEVER in
particularly manufacturing area which the competitors do not hold.
UNILEVER should increase its production capacity in order to compete
in market and to reduce competitors threat.
If UNILEVER can obtain cheaper raw material it can reduce costs of
goods manufactured.

________________The End______________

7. References

The strategic planning by Devon albert


http://www.managementstudyguide.com
www.unilever.pk
www.unilever.com
http://www.scribd.com
www.wikipedia.com
www.managementsciences.com
www.slideshare.net