unilever pakistan
TRANSCRIPT
HISTORY• Lever brothers is founded by
WILLIAM HESKETH LEVER in 1890
• Key player in food & household product industry
• Historically grew through acquisitions
INTRODUCTION
LEVER BROTHERS, THE OLD NAME OF UNILEVER CHANGED INTO UNILEVER AFTER THE MERGER OF LEVER BROTHERS & MARGARINE UNIE IN 1930
UNILEVER IS A MULTI NATIONAL COMPANY
IT IS ONE OF THE LARGEST CONSUMER GOODS COMPANIES IN THE WORLD
ITS BRANDS ARE ON SALE IN 151 COUNTRIES
UNILEVER STAFF
TODAY UNILEVER EMPLOYEES 179,000 PEOPLE IN 150 COUNTRIES WORLDWIDE
TODAY UNILEVER EMPLOYEES IN PAKISTAN ARE1677.
VISION STATEMENT
“We help people around the world to meet everyday needs for nutrition, hygiene and well being, with brands that help people look good, feel good and get more out of life”
MISSION STATEMENT
“Vitality is at the heart of everything we do. It’s in our brand, our people
and our approach to business”
• To be honest transparent and ethical
• To win hearts and minds of consumers
• To deliver what we promise
• To become empowered leaders
UNILEVER PAKISTAN(1948)
4 WHOLLY OWNED AND 6 3RD PARTY MANUFACTURING SITES
FIRST SITE IN PAKISTAN WAS IN RAHIM YAR KHAN
LARGEST FMCG COMPANY NOW OPERATING AT SIX LOCATIONS IN PAKISTAN
GENERAL INFORMATION
NO. OF EMPLOYEES 1677
SHARES 13,293,869
SHARE HOLDERS 4171
REVENUE 59.7 BILLIONS (2012)
FOOD BRANDS
• Badami• Blue band• Brooke bond supreme• Energile• Knorr• lipton
• Pearl dust• Rafhan• Wall’s
PERSONAL CARE BRANDS
• Clear shampoo• Close up• Dove• Fair & lovely• Lifebuoy shampoo• Lifebuoy soap• Lux
• Pond’s• Rexona• Sunsilk• Vaseline
POLITICAL FACTORS• Smuggling of black tea under afghan
transit trade agreement
• Increased tax and import duties (33.7%)
• No steps being taken to discourage counterfeiting
ECONOMIC FACTORS• UPL uses palm oil as a major input, but
price fluctuations
• Energy crises is effecting the ice-cream segment
• High inflation rate
SOCIAL CULTURAL FACTORS
• Growing urbanization
• Higher number of youngster
• Rising income
These factors led to change consumer life style
TECHNOLOGICAL FACTORS
• Spent 891 million Euros on R & D in pak
• UPL uses internet to train its employees
• Energy crises
LEGAL FACTORS• Changing legislation
• Minimum wages of unskilled workers increased from 6000 to 7000 rs in 2010
• As per law after 9 months temporary workers should me made permanent
STRENGTH’S• Customer loyalty
• High dividend payout
• International brand strength
• Market share of 41%
• Oldest MNC of Asia
• Strong financial position
• Vast distribution network
• Large range of brands
• Well established brand name
• Only 1500 employees are on their payroll
• Many protests by labor unions
• Using nameless factories in Karachi
• Had to sale dalda
opportunities• Could develop new product
• Local competitors have poor products
• Unrelated diversification
• Around 40% smuggled tea can be catered
• Urban areas are only familiar with shampoo
• End user respond to new ideas
• Strategic acquisitions can help to expand further
• Huge potential in rural areas
• Young generation is becoming beauty concious
• New soaps can be introduced in winter
• Forward integration can be done
• Pakistan is 3rd largest importer of tea, huge potential in tea farming
THREATS• Legislation could impact
• Retention of key staff critical
• Major competitor
• Competitor aggressive marketing
BARGAINING POWER OF BUYERS
UPL has to be precautious on deciding about prices and satisfying customers to avoid of switching customers
COMPETITIVE RIVALARY
• Large num of competitors P & G
• Substitute products and low prices of competitors
• UPL have capacity of mass production
THREAT OF SUBSTITUTE
• Should focus on R & D to avoid substitute products
• Substitutes has reduced brand loyalty
THREAT OF NEW ENTRANT
• In pak less legal requirements and capital is required
• ULP’s brand image is a strong barrier
SUPPLIERS BARGAINING POWER
• ULP has policy of local buying and local manufacturing
• Blanket agreements with suppliers
• Built strong relations with supplier by treating them fairly
Firms infrastructure
• Knowledgeable experts
• Effective management information system
• Marketing research department shares consumer research data
Human resource management
• Skilled, qualified and expert management
• Formal and informal network communications
• Training programs and seminars
procurement
• Outsource raw materialEurope, America, far east and local
availability
• Automatic replenishment systems
• Packaging material from packages limited Lahore
operations
• Have got economies of scale to reduce unit cost
• Production process of sunsilk and lifebuoy is reliable
Relationship and marketing
• Incase of lifebuoy focus only on males and ignore female
• Incase of shampoo main focus is on females
• No strategy to make good relationships with retailers
MARKET DEVELOPMENT
• Vaseline
Old product but working on its development
• Sunsilk
Exploit the religious Semitism of Muslim women (hijabi women's)
HORIZONTAL INTEGRATION• Polka (1998)
• Knorr (2000)
• Lipton (1988)
• Brokebond (1997)
• Glaxose-D (1999)
DEFENSIVE STRATEGY
• Increase scale of economy to reduce unit cost
RETRECHMENT STRATEGY
• In 2007 292 contract employees were fired
CONTINUES IMPROVEMENT
• 41% reduction in CO2
• 65% reduction in water use
• 73% reduction in total waste
STRATEGIC TYPE
• Unilever is a prospector with fairly broad product line and focuses on
InnovationMarket opportunities