Strategic Marketing Situation Analysis

Presented To: Mr. Kashif Saeed Presented By: Mubasher Ijaz Muhammad Mursaleen 10123067 10123088

Rafaqat Ali
Maria Arshad Fakhar un Nisa

10123057
10123075 10123090

Acknowledgment
I would like to gratefully acknowledge the enthusiastic Mr. Kashif Saeed during this work.

Agenda

Industry introduction Porter five forces Company profile SWOT analysis PESTNC analysis TOWS matrix Suggestions Sources of secondary data

FMCG Industry
Fast Moving Consumer Goods (FMCG), are the products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can

be large. (Wikipedia)

FMCG major Contributions

Deals with the production, distribution and marketing of consumer packaged goods. FMCGs profitability was well supported by Nestle ,Unilever Pakistan, P& G and Angro Foods that contribute average 71% to that industry. In FMCG industry 40% of the brands on top 100 list. Focus on the employee investment. FMCG industry can beat the recession through efficiently management. FMCG industry provides an opportunity to become a part of global successful stories. FMCG industry value is $570.1billion. (UKESSAY.COM)

Key Players Investment In FMCG Industry

National foods
Engro foods Rafhan Unilever 2.03 290 891

4.1
4.67 0 200 400 600 800 1000

Nestle

Amounts in millions

Source: SlideShare.com

Financial Performance of Key Players in Industry

Unilever Sales Growth

Angro Foods

Nestle

P&G

15%

34%

22%

3.2%

Profit from Operations

EPS Societal Contribution

38%
34% 29.2mil.

100%
181% Project run

14%
25.6% 21.7bil.

14%
(16.83%) 0

Source: Organization annual reports)

Porter Five Forces Model

Power of Buyer

Threats of New Entrants

Competitive Rivalry

Power of Supplier

Threat of Substitutes

Porters Five Forces

Competitive Rivalry
1. Fierce behavior of competitor 2. Scarce customers because industry is highly saturated 3. Government rules and regulations 4. Intensive Promotion Schemes 5. Low Storage cost

Threats of Substitutes 1. 2. 3. 4. Flexibility in price Substandard Product Customer Switching Substitute product satisfies customer need.

Bargaining Power of Supplier

1. Bargaining power is not so high 2. less impact on cost

Bargaining Power Of Buyer

1. High bargaining power. 2. Price of same product at different level of markets

3. Degree of differentiation in 3. Consumers are never inputs. reluctant to buy and try new things of the shelf. 4. No monopoly of supplier in market 4. Availability of existing substitutes products. 5. Substitute suppliers
6. No bargaining on average products. 5. Buyer's price sensitivity. 6. Low bargaining leverage

Threat of new entrants

FMCG industry does not have the measures that control the entry of new
entrants. Patents that cover vital technologies make it difficult for new competitors. Profitable industry attracts the new competitors. High learning power of competitors.

low resistance and complex industry structure so firms can easily enter.

* Continuing operations

Our corporate purpose

Unilever
Unilever is a multi-national corporation

worlds leading suppliers of fast-moving consumer goods

89 million invested in community programmes worldwide 264 manufacturing sites worldwide

More than 170 countries in which our products

891 million invested in R&D worldwide 20 nationalities among our top tier managers

Unilever employs nearly 180,000 people

50 brands in Pakistan.

The Internal Environment

1. 2. 3. 4. Culture Structure Strategy Performance

Culture
Unilever culture is highly diverse, it gives equal rights to its employees to learn and grow without any restrictions. It provides friendly environment that helps in developing their internal capabilities.

Structure
North has Unilever America 23%

adopted D&E
36%

both

centralizedAmerica and
16% Western Europe 30%

North

decentralized
50%

organizational structure for effective decision making to solve inter D&E

Western conflicts but also helps in solving external issues. departmental Europe 38%

Strategy
Strong relationship with consumers and are the foundation for our future growth. Commitment to exceptional standards of performance and productivity.

Highest standards of corporate behaviour

Creating long-term value for our shareholders, our people, and our business partners.

Performance
Underlying Sales growth 15% Overall turnover 7.9 billion Profit from operations is 38% Earning Per share up by 34% Savoury, Dressings Waste per ton of production .41 as in 2011 it is.91per kg. & Spreads Personal Care 3% growth in volume of mature products Ice Cream & 20% growth in emergent products. Beverages 87% incremental investment in emergent categories. 20% growth in House of personal care. Beverage category registered have top line growth of 20%. 10% growth in top line ice cream products. Unilever spend almost 29.2million on corporate philanthropy.
(Source: Annual report of Unilever 2012)

Product Profitability Analysis Among Competitor

Uniliver

P&G

Kraft

Nestle

Top segment

C/G foods Dove 15.55%

Consumer care Tide 9.25%

Food Mac & cheese 8.2%

Food Kitkat 11.23%

Top brand Growth

The Customer Environment

1. Who are our current and potential customers?
2. What do customers do with our products? 3. Where do customers purchase our product?

4. When do customers purchase our product?

5. Why and how customers select our product? 6. Why do potential customers not purchase our product?

SWOT ANALYSIS

Strength
1. 2. Strong portfolio of brands 1. Research and development 2. 3. 4.

Weaknesses
Import of Raw material for production Exposed to devaluation of rupee. Non direct connection with customers Inefficient management of brands

3.
4. 5.

Variety of products
Competitive advantage Promotion and advertising

6.
7.

Effective and attractive packaging

Customer Loyalty

Preliminary data pending audit.

Opportunities
1. 2. Rapid expanding in urban areas. Creating brand awareness helpful for retention of customers. Health conscious products demand Changing life styles Increase in production volume Profitability and sale growth enhancement. 1. 2. 3. 4. 5. 6. 7.

Threats
Economic downturn Environmental effects Global competition New local products legal effects Increases in taxes Increases in prices due to fuel prices

3. 4. 5. 6.

Preliminary data pending audit.

PESTC ANALYSIS

Political

Competition

Technological

PESTC
Economical Social

PESTC Analysis
Political and legal
Political stability TAX Regulation Trade Regulation

Employment Laws
Environment Laws Health and safety laws Employment laws Consumer laws

PESTC Analysis
Economic Factors
Highly competitive market Economic Downturn Interest rates Exchange rate Inflation rate GDP growth rate

Competition
Brand Competitor Products with similar features and benefits to same customer with

similar prices.
Product Competitors Same product class but different in features, benefits and price Generic Competitors Different product that meets the need of customers Total Budget Competitors Compete for the limited financial resources of the same customer

PESTC Analysis

Sociocultural Factors
Life style Age Religion Education

PESTC Analysis
Technological Factors
R&D Activity Informational Technology New machines

Environmental Factors
Climate change Diseases Weather

TOWS Strategic Alternative Matrix

External Opportunities 1. 2. Rapid expanding in urban areas. Creating brand awareness helpful for retention of customers Profitability and sale growth enhancement. External Threats 1. 2. 3. 3. 4. Global competition New local products Increases in taxes Increases in prices due to fuel prices

Internal Strengths 1. 2. 3. Strong portfolio of brands Research and development Competitive advantage

SO "Maxi-Maxi" Strategy Strategies that use strengths to maximize opportunities.

ST "Maxi-Mini" Strategy Strategies that use strengths to minimize threats.

Internal Weaknesses 1. Import of Raw material for production Non direct connection with customers Inefficient management of brands

2.

WO "Mini-Maxi" Strategy Strategies that minimize weaknesses by taking advantage of opportunities.

WT "Mini-Mini" Strategy Strategies that minimize weaknesses and avoid threats.

3.

Suggestions

We suggest them to go for the mini- maxi strategy. They should overcome their weakness to avail the external opportunity. They cannot beat the external threat because our economy is very dynamic, therefore they have to adopt the mini-maxi strategy. By using the porter five forces model they can develop an edge over rival firms. They should use their key success factors in order to increase the supplier's bargaining power. Through the SWOT analysis they can improve their performance. They should converted their weakness in to strength. PEST analysis is helpful in determining the opportunity in the market and risks of global expansion.

Secondary Data Source

Daily times (Saturday, February 25, 2012). Annual Reports of Unilever Various types of Website

Different research report.

Different Newspapers, Articles, Journals and Publication.