MARKETING MANAGEMENT

REPORT

PREPARED BY: S. QURRAT-UL-AIN KAZMI

REG ID: 4494
CLASS ID: 9316
SUBMITTED TO: SIR SHAKEEL BAIG
DATE: 08 March 2010
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Mission Statement

“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…”

Meeting consumer needs

We recognise that the world in which we operate is changing. Consumers are
increasingly bringing their views as citizens into their buying decisions, demanding more
from the companies behind the brands. They want companies and brands they trust.

Brand benefits
We see growing consumer need for:

• a healthy lifestyle
• more variety, quality, taste and enjoyment
• time, as an increasingly precious commodity

Helping people to feel good, look good and get more out of life will enable us to meet
these needs and expand our business.

We are also open and transparent in the information we provide on our products, as well
as all advertising and marketing material – and any claims we make are supported by
scientific evidence. In other words, if we say our products will add vitality to life, we
mean it.
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PURPOSE & PRINCIPLES

Always working with integrity

Conducting our operations with integrity and with respect for the many people,
organisations and environments our business touches has always been at the heart of our
corporate responsibility.

Positive impact
We aim to make a positive impact in many ways: through our brands, our commercial
operations and relationships, through voluntary contributions, and through the various
other ways in which we engage with society.

Continuous commitment
We're also committed to continuously improving the way we manage our environmental
impacts and are working towards our longer-term goal of developing a sustainable
business.

Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It's underpinned
by our code of business Principles which describes the operational standards that
everyone at Unilever follows, wherever they are in the world. The code also supports our
approach to governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the
same standards we do. Our Business partner code, aligned to our own Code of business
principles, comprises ten principles covering business integrity and responsibilities
relating to employees, consumers and the environment.
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OBJECTIVES
Top Priority – Fulfilment of customer’s needs:
“Unilever aims to continuously improve the environmental performance of their process
and their brands to achieve sustainable profitable growth as their consumer expects them
to fulfil their needs with brands that have low environmental impact.”

 To be honest, transparent and ethical in our dealings at all times.

 To win the hearts and minds of consumers.
 To deliver what they promise.
 To become empowered leaders who are inspired by new challenges and
have a bias for action.
 To believe in trust, truth and outstanding teamwork. They value a creative and
fun environment.
 They care about and actively contribute to the community in which they
live.

SWOT ANALYSIS OF THE

COMPANY
STRENGTHS

 Research and development and financial support from parent Unilever.

 Strong brand names. most of the brands for e.g. (detergent are now used generically
to present product.
 Sound and experienced management.
 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.
 Strong company image.
 Health & personal care products
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 Success of the slogan.
 Quantity & variety.
 Effective & attractive packaging.

WEAKNESSES
 About 80% of raw material is imported for the manufacturing of the
consumer goods. Raw material constitutes about 85% of manufacturing cost.
 Rampant smuggling of tea and detergents has seriously affected levers sale
and earning..
 High prices of products.
 Substitutes products.
 Policy of spending for the social responsibility.
 Lack of control in the market.
 Dual leadership.
 Decrease in revenues.
 Reduced spending for research & development.

OPPORTUNITY
 Changing life style of people
 New markets
 Increase the volume of production
 Focus on R&D
 Low income consumers
 The rapid expanding urban population is the key opportunity.
 Awareness growing in rural areas due to education children with family
members abroad sending foreign income.

THREATS

 Competitors .P&G is the significant multinational threats with presences in

soap, detergents and personal products.
 Purchasing power can affect demand due to depressed economy resulting in
inflation.
 Political effects
 Legislative effect
 Environmental effect
 Economic crises
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 Product smuggling
 Increase demand for Antibacterial Soaps
 Counterfeit Products
 International Trends
 Local Competition.

STRATEGIES
Product Development
 Unilever continuously work on improving product qualities and features to capture
the market.
 It analyzes the demand to check whether the product is profitable or not so that if
the product is not it should be discontinued.
 It keeps an eye on the competitor’s products in order to become the market
leader of certain product.

Corporate Strategies
 Leader in the consumer goods market.
 Managing govt relations to influence duty on imports of raw materials and
countering smuggling of competitors goods

Human Resource Strategies

 Managing employee recruitment and placement to put the right person for the right
job.
 Replacement Planning.
 Employee rotation in the department.
 Employee training.
 Remuneration survey for salary adjustments of employees.

Finance Strategies
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 Maintain company finance operations with in the resources.
 Maintain working capital keeping stock debtors low.
 Adhere strictly to the ICAP accounting practices and laws.
 Tax management to gain legitimate advantages lessening the burden.
 Ensure internal control through internal audit.
 Introduction of IT and implementation.
 Ensure sales revenue generation meet targets.
 Maintenance of purchasing function

Mergers & Acquitions

 Lever has successfully completed an acquisition of Pakistan Industrial promotional

(pvt) limited, manufacturers of polka in 1999.
 The company completed an merger with Brooke Bond (BB) Pakistan last year,
where each BB shareholder received one lever share for every 4.3 BB shares .The
merger has resulted in consolidation of distribution channels, thus, reducing
operating costs for the company.

BRANDS
Food brands

Brooke Bond A1
 Blue Band
 Flora
 Lipton
 Pearl Dust
 Supreme
 Walls

Home care brands

 Comfort
 Rin
 Surf Excel

Personal care brands

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 Clear
 Closeup
 Fair & Lovely
 Lifebuoy Shampoo
 Lifebuoy Soap
 Lux
 Ponds
 Rexona
 Sunsilk

Nutrition

Health, hygiene & beauty

Unilever Foodsolutions

Raabta Consumer Careline

MARKETING MIX 4Ps

PRODUCT:
Regional Brand Teams at Bangkok meets and decides where to launch which product.
The feasibility report is prepared and market insights are discovered. Market insights
should match Local Insights. In the report even the people’s actions while washing are
also observed and presented in the report. This enables to present a full fledge
information about the attributes, cultural values, and motions of a particular community,
region, or a nation, may it be washing pattern, economic condition, or spending pattern.

PACKAGING:

Surf Excel, mainly Unilever has new Phenomena. It consults all 3 trade models (General
trade, Local modern trade, and International modern trade) while designing packaging for
Surf Excel. Packaging should be to create impulsive desires, and it should stand out
among its competitors. It is where Product development team and marketers come into
action in furnishing packaging standards for all its product ranges.

PRICE:
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Surf Excel is available in different sizes and quantities in the market for different prices.
Its competitors in its upper-class segments are Ariel which is a product of P&G and Brite
Total which is a product of Colgate-Palmolive (Laksons group). Its market-oriented
statement is “Daagh NHI to seekhna NHI”. The company has offered 1kg of Surf excel in
the market for 120 rupees. Besides that it is also available in the market in sachets pricing
from 5-10 rupees and in ½ kg for about 70 rupees. It is a quality oriented product
providing value to their customers. It is priced for every consumer according to his or her
financial status.
In 2005 Unilever adopted one of the price-adjustment strategies which was discount &
allowance pricing as they offered 1kg of Surf Excel for 105 rupees. Through this strategy
promotional pricing strategy also came in progress as their product was promoted through
it and the sales increased rapidly. But as its competitors also reacted for this change
through customizing their offerings and price cuts Surf Excel was finally focused towards
price increases. Besides that Surf Excel pricing strategy have also been to provide value
and recently the company improvised their strategy as they focused toward more
promotion through campaigns. Beside that the company has also implemented product
line pricing strategy as their offerings are in different quantities along with different
prices in the market for Surf Excel. Several offers have also been introduced by Ariel
and Brite in the market using Promotional, discount, and psychological pricing strategies
and for that Surf Excel have also responded efficiently through its strategies.

DISTRIBUTION PRICING STRATEGY:

Unilever distributor GT / LMT Unilever

IMT through annual pricing plan

Where,

GT= General Trade (general stores, Kiryana stores, Medical and Genaral stores)
LMT= Local Modern Trade (Super stores such as Aghaz, Naheed, D-Mart)
IMT= International Modern Trade (departmental stores/Hyper Market such as Makro).

FOR CASE 1:

List price Rs. 100 Add: Distributor price (5%) Rs. 105 Add: Trade price (5%) Rs.
110.25 Final Retail price (10%) Rs. 121

FOR CASE 2:

List price Rs. 100 Trade price (add 10.25%) Rs. 110.25 Surf Excel also launches
Temporary price reductions (TPR) such as 0.25/unit for a week or for a month. They also
give Bonus. Such as Bonus 25 cartons---0.5/case.
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While setting prices or changing prices the team of Surf also looks at the Equity
LevelWhich is determined by the Price Index. It measures the relative SKUs (Stock
Keeping Units). For example,

Product price %

Ariel 1 kg 230 115%

Surf excel 1 kg 200 100%
Brite 1 kg 190 95%

PROMOTIONS:
Sales Force in Surf Excel is divided into 3 types: General Trade (general stores, Kiryana
stores, Medical and Genaral stores), Local modern trade (super stores such as Aghaz,
Naheed, D-Mart), and International Modern trade (Large houses such as Makro).
Merchandising Drives: It depends on the Channel the team is choosing to communicate
it’s product (surf excel). They may ask the retailer to have at least 50 pieces of surf in
their shelves along with POS Materials (posters, banners, shelves, etc)
Outdoor Media Agency is appointed for the advertising campaigns via billboard and
signboards. These OMA classify different regions under Strata, ranging from 1 to 6.Strata
1 includes cities like Karachi and Lahore, Strata 2 includes cities with comparatively less
density and so on. They may select sites as per the following example:

Strata 1 would have 60% advertising sites.

Strata 2 would have 20% advertising sites.
Strata 3 would have 20% advertising sites.
Strata 4 nil
Strata 5 nil
Strata 6 nil

PLACE:

Mind Share is the Media Buying House for Unilever in Pakistan. The airtime is
purchased depending on the relative price and numbers of spots the brand is getting.
These spots must be enough so that Recall value is created within the customer’s mind.
Frequency of target market is also analyzed. In Electronic media, especially Television
PTV and ATV have the biggest countrywide viewership. Whereas in Private Sector Hum
tv currently is the biggest Tv production and broadcasting house. The selection of Print
and Electronic Media depends again on the nature of product and the marketing
strategies. The Ratio is divided for print and electronic Media in the beginning of the
campaign.
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Moreover retailing consumer products is Unilever’s bread and butter. The
company has the biggest retail reach in the country with the company servicing 500,000
outlets, of which 50 per cent are covered direct by the company’s distributors and the
balance through wholesalers. For company the main business is done by General Trade as
compared to IMT or LMT, therefore different incentives and preferences are given to
general retailers, wholesalers and distributors.

KEY SUCCESS FACTOR

Responsible Care
Caring for each other, our factory and the environment

Operational Effectiveness
Producing the right goods, at the right time, with the right quality at the right cost

Win through People

Our success will only be achieved through highly motivated and effective people

Innovation & Capability Development

Right first time innovation is essential to ensure the future of our business

Customer and Supplier Management

Satisfying our customers through effective management of the total supply chain

Enabling Systems and Processes

Excellence in our IT systems and skills are key to the success of our factory