You are on page 1of 56

TABLE OF CONTENTS

Acknowledgement2
Logo...3
Mission Statement4
Vision Statement..4
Sense of Purpose..4
Sustainability Targets..4
Purpose, Values and Principles...5
Strategy and Strategic Focus...5
Business Model..7
Values.8
Brands....8
CSR.....8
Product Mix..12
Marketing mix..12
Promotional Mix..13
Pricing Strategies.14
Market Share14
Brand Awareness.15
Brand Theories.16
SWOT Analysis....17
BCG Matrix......19
PEST Analysis..........22
Portars Five Forces Model..25
Ansoff Matrix.29
Critical Analysis ...31
Conclusion ....55

1
Acknowledgement

We all seven group members would like to thank a few people, because without their help and
guidance our project wouldnt have been completed. First of all, we are extremely thankful to
Almighty Allah for helping us a lot throughout the project. Secondly we would like to thank our
most respectable teacher Sir Tanveer Abbas for teaching us in such a way and providing us a
guideline that truly helped us in making our project. Thirdly, we would like to thank the
personnel from Unilever who have provided us valuable information about their organizations
marketing strategies. We would also like to say that without the prayers of our parents as well as
without the cooperation of our group members we could not complete this project on time and
with such enthusiasm as we have done now.

2
LOGO OF UNILEVER

Unilever is committed to making sustainable living commonplace and our logo is a visual
expression of that commitment. Each icon has a rich meaning at its core, and represents some
aspect of our effort to make sustainable living commonplace.

3
UNILEVER

MISSION STATEMENT
To lead consumer products company in Pakistan, a multinational with deep roots in the
To attract and develop highly talented people, who are excited, empowered and
committed to deliver double digit growth.
To serve everyday needs of all consumers everywhere for foods, hygiene and beauty
through branded products that delivers the best quality and value.
To remain an ever simple and enterprising business.

VISION STATEMENT

Touching hearts, changing lives.


SENSE OF PURPOSE
The business has always been driven by a sense of purpose, a thread that connects the business to
founding companies and their social missions to improve health, hygiene and livelihoods in their
communities.

We continue to believe that business must make a positive contribution to addressing the
challenges the world faces and that this is the only way a business will succeed. In 2009, we
launched The Compass our strategy for sustainable growth, setting out our determination to
build a sustainable business for the long term.

SUSTAINABILITY TARGETS
The Unilever Sustainable Living Plan, launched in 2010, laid the blueprint for achieving this
strategy. We continue to work towards the ambitious targets we have set ourselves for halving
our environmental impact, improving the health and wellbeing of 1 billion people, and enhancing
the livelihoods of millions.

We will grow our business by building on our strengths combining our scale and expertise with
our understanding of consumers in diverse markets to continue providing brands and services
that people want and need. Our sustainable business model is making a difference to millions of
peoples lives and to our environmental impact, and we will keep working to make these
contributions greater. Were also already seeing evidence that it is strengthening our business by
helping to drive growth and trust, and reduce risk and cost.

4
PURPOSE, VALUES AND PRINCIPLES

The Corporate Purpose states that to succeed requires "the highest standards of corporate
behavior towards everyone we work with, the communities we touch, and the environment on
which we have an impact."

Code of business principles and related policies

Conducting our operations with integrity and with respect for the many people, organizations 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 Supplier Code, aligned to our own Code of Business Principles, comprises
eleven principles covering business integrity and responsibilities relating to employees,
consumers and the environment.

STRATEGY AND STRATEGIC FOCUS


Weve built a strategy to help us achieve our purpose of making sustainable living
commonplace.

To realize our vision we have invested in a long-term strategy of categories and brands that
deliver growth to the benefit of all stakeholders. The strategies are as follows;

Growing the business

5
Sales
Margin
Capital efficiency

Improving health and well-being

Nutrition
Health and hygiene

Enhancing livelihoods

Fairness in the workplace


Opportunities for women
Inclusive business

Reducing environmental impact

Greenhouses gases
Water
Waste
Sustainable sourcing

Long term strategies are;

Portfolio choices

Category choices
Active portfolio management
Building a Prestige business

Brands and innovation

A focused approach to innovation


Driving efficiency and margins
Increased investment in digital marketing

Market development

Routes to market
Emerging markets
E-commerce

Agility and cost

6
Zero-based budgeting
Manufacturing base and overheads
Leveraging scale

People

Attracting talent
Developing talent
Values-led and empowered

Consistent

We deliver consistency in underlying sales growth, core operating margin and free cash flow by
continuously investing in our supply chain, our brands and marketing, our people and IT.

Competitive

By investing in innovation we can grow our market share while also seeking to enter new
markets and new segments.

Profitable

We seek continuous improvement in our world-class manufacturing to drive cost savings and
higher returns, providing extra fuel for growth as cash is redeployed in new strategic
opportunities.

Responsible

Growth thats responsible involves having a positive social impact and reduced environmental
footprint, which is the essence of the USLP and is essential in protecting and enhancing our
reputation.

BUSINESS MODEL
Unilever believes profitable growth should also be responsible growth. That approach lies at the
heart of our business model, driven by sustainable living and the USLP. It guides our approach to
how we do business and how we meet the growing consumer demand for brands that act
responsibly in a world of finite resources. Our business model begins with consumer insight that
informs brand innovation, often with partners in our supply chain, to create products we take to
market supported by marketing and advertising across a range of distribution channels.

Unilever is committed to making sustainable living commonplace and our logo is a visual
expression of that commitment. Each icon has a rich meaning at its core, and represents some
aspect of our effort to make sustainable living commonplace.

7
VALUES OF THE COMPANY

Unilever Vision, Mission, Values, and Code of Business Principles are the principle belie
f of the company.
Employees are ambassadors of Unilever, both inside and outside the work place.
Respect Individual differences and provide equal opportunity regardless of gender, ethnic
or social background.
Treat each employee and contacts with respect, regardless of grade and job title.
Set the business priority accordingly.
Respect time enthusiastically to achieve growth.
Company search for new ideas even by the consumers.
Every person is a potential Unilever customer, they treat all with respect.
Ensure superior quality products and services and aiming for zero complaints.
Never lose a consumer, Own the problem, win them back and ensure they feelpositively treated.

BRANDS OF UNILEVER
Unilever Pakistan offers brands in three categories;

Home care brands


Personal care brands
Food brand

Unilevers Corporate Social Responsibility:

Unilevers corporate social responsibility (CSR) contributes to the strength of the brands of the
consumer goods business. According to Archie Carrolls theory, companies have social
responsibilities to stakeholders. At the same time, stakeholders significantly affect business
performance. In the case of Unilever, these stakeholders include consumers, employees,
investors, suppliers, and communities. The companys corporate citizenship and social
responsibility strategy prioritizes these stakeholders according to their importance to the
business. As a major firm in the global consumer goods market, Unilever utilizes its corporate
responsibility strategy as a supporting approach to maintaining industry position and business
sustainability. An effective corporate social responsibility (CSR) strategy adds to Unilevers
efforts for a sustainable business in the consumer goods industry. Stakeholders interests

8
are satisfied through appropriate approaches that ensure holistic corporate citizenship and
responsibility fulfillment.

Unilevers Stakeholder Groups & CSR Initiatives:

Unilever implements a systematic strategy to fulfill its corporate social responsibilities. This
strategy supports the companys corporate citizenship ideals, especially with regard to satisfying
the expectations and interests of consumers as stakeholders. For example, Unilevers CSR
prioritization puts consumers at the top. Business sustainability is also maintained through the
strategy. Such corporate responsibility strategy addresses the interests of the following
stakeholder groups, arranged according to their significance in Unilevers consumer goods
business:

1. Consumers (Highest Priority)


2. Employees
3. Investors
4. Suppliers
5. Communities
6. Consumers (Highest Priority).

Unilevers corporate social responsibility strategy assigns the highest priority to


consumers. These stakeholders interests are focused on product quality and price, as well
as the environmental impact of the consumer goods business. Consumers are significant
because they directly determine Unilevers profits. For example, satisfied consumers
increase the companys revenues from repeat sales. Unilevers corporate responsibility
strategy satisfies these interests through extensive innovation processes and quality
assurance policies for a diverse product mix.The companys CSR strategy also extends to
address the demands of this stakeholder group for business sustainability. For instance,
Unilever continues to enhance its production processes environmental footprint. As a
result, an effective image of corporate citizenship is created to influence consumer
perception. These corporate social responsibility efforts suggest that Unilever maintains

9
its position in the consumer goods market partly by satisfying consumers various
expectations.

7. Employees.

Unilever considers employees as the second priority in its corporate social responsibility
strategy. The importance of these stakeholders is in their direct influence on
organizational performance in the consumer goods industry. Employees are interested in
competitive compensation and holistic career development. For example, suitable HR
policies for work-life balance help satisfy workers needs. Unilevers corporate
responsibility strategy addresses these interests through high compensation that
effectively competes against other employers in the labor market. In addition, the Agile
Working program addresses these stakeholders interest in holistic career development.
In this program, Unilevers CSR approach includes flexibility for employees to work
anywhere and anytime, as long as they satisfy their job roles and responsibilities. This
program also contributes to the companys sustainability efforts by reducing employees
travel, thereby ensuring corporate citizenship fulfillment. Moreover, basic concerns such
as workplace safety and healthful work practices are considered. Thus, Unilever satisfies
this stakeholder groups interests through a multi-pronged approach to corporate social
responsibility.

8. Investors

. Investors are given the third priority in Unilevers corporate social responsibility
strategy. This stakeholder group is interested in the performance of the consumer goods
business. For example, higher revenues and profitability increase investors satisfaction
and confidence in the company. Investors are significant in influencing the capital
available to fund Unilevers business. The company addresses these stakeholders
interests and the corresponding corporate responsibility through continuing business
expansion. For instance, a history of acquisitions to ensure dominance in the consumer
goods market characterizes. Such CSR strategy also includes the companys efforts in
product innovation for higher quality, and process innovation for better efficiency,

10
productivity and sustainability. The satisfaction of this stakeholder group increases
Unilevers success in addressing its corporate citizenship.

9. Suppliers.

Unilever includes suppliers in its corporate responsibility strategy. As stakeholders,


suppliers have interests in profitable business with the company. This stakeholder group
is significant in affecting Unilevers business capacity, based on the availability of
materials for producing consumer goods. As part of its CSR efforts, the company
maintains the Partner to Win strategic program to ensure mutual benefit between the
business and this stakeholder group. The program satisfies suppliers interests through
extensive collaboration that supports Unilevers and suppliers growth. For example, the
program provides strategic plans to guide suppliers in growing together with the
company. In this way, Unilevers corporate social responsibility policies on sustainability
also influence suppliers business activities, thereby maximizing the benefits of corporate
citizenship.

10. Communities.

As stakeholders, communities are included in Unilevers CSR strategy. Communities


interests include environmental protection and community development. This stakeholder
group significantly influences how consumers perceive Unilever. For example, the
company is more likely to gain positive consumer confidence through community
involvement. The Unilever Foundation is the companys main corporate citizenship body
that satisfies these interests. The Foundation funds community programs for sanitation,
nutrition, and personal development. These corporate responsibility initiatives enable
Unilever to contribute to community development and business sustainability. The
stakeholder group provides positive feedback that boosts corporate and brand image,
which is one of the firms strengths. The resulting impact of such corporate social
responsibility efforts on brand image translates to sales and attractiveness of consumer
goods from the company.

11
Unilevers Products (Product Mix)

Unilever expands its consumer goods business through the years, resulting in a broadening
product mix currently composed of over 400 brands. This section of the marketing mix identifies
the companys outputs, collectively known as the product mix. Unilever has a wide variety of
products under the following categories:

1. Foods
2. Refreshment (beverages and ice cream)
3. Home Care
4. Personal Care

Unilevers food products include Best Foods mayonnaise and sandwich spreads, as well as Knorr
stock cubes and sauces. The refreshment category includes Heartbrand ice creams and Brook
Bond teas. Unilever sells products like Surf laundry detergent and Sun dishwasher detergent
under the home care category. The companys Close-Up toothpaste, Vaseline lotion, and Dove
soap and shampoo are sold under the personal care category. These types of products indicate
that Unilevers marketing mix is already highly diversified. Such diversification partly results
from the companys acquisition strategy in the consumer goods market through the years. For
example, the firm acquired Best Foods in 2000. Unilevers organizational structure reflects the
diversity of consumer goods in this product mix.

Place/Distribution in Unilevers Marketing Mix

The global operations of Unilever are a reflection of the extensive reach of the business in the
consumer goods market. The venues or places where the company transacts with customers or
target consumers are identified in this section of the marketing mix. Unilever uses the following
places for distributing its products:

1. Retailers (primary)
2. Kiosks
3. Stores

12
Retailers are the primary places of distribution for Unilevers products. For example, Walmart is
one of the biggest retailers responsible for distributing these consumer goods. Unilever
occasionally uses kiosks to introduce products directly to customers, while utilizing personal
selling. In collaboration with retailers, the company promotes a limited selection of products
through these kiosks. Also, Unilever offers some of its products through stores, such as those of
its subsidiary Ben & Jerrys. This section of the marketing mix agrees with Unilevers generic
strategy and product development intensive growth strategy.

Unilevers Promotion (Promotional Mix)

Unilever needs to promote its products, considering the high level of competitive rivalry in the
global consumer goods market. This section of the marketing mix outlines the strategies and
tactics in the companys approach to promote its products to target consumers. Unilever uses the
following promotional tactics, arranged according to significance:

1. Advertising (primary)
2. Sales Promotion
3. Public Relations
4. Personal Selling
5. Direct Marketing
Advertising serves as the primary means of promoting Unilevers products. Many of the
companys brands have advertisements on television and online media. The firm also
occasionally uses sales promotion, such as discounts and product bundles. For example, Dove
soap bars are sometimes offered in bundles of three at a discounted price. In terms of public
relations, the Unilever Foundations activities enhance corporate image and brand strength .The
company sometimes implements personal selling in collaboration with retailers to operate kiosks
for certain occasions or promotional events. Direct marketing is the least significant promotional
tactic in Unilevers marketing mix. This tactic involves directly engaging client organizations to
promote suitable products. Based on this section of the marketing mix, Unilever heavily relies on
advertising as the main factor that influences consumer perception about the companys
consumer goods.

13
Unilevers Prices and Pricing Strategies:

Unilever maintains a wide variety of price points, considering the level of diversification of its
products. Prices and corresponding pricing strategies are determined in this section of the
marketing mix. In general, the most significant pricing strategies in Unilevers consumer goods
business are as follows:

1. Market-Oriented Pricing Strategy


2. Premium Pricing Strategy
3. Product Bundle Pricing Strategy
The market-oriented pricing strategy entails setting price points based on consumer goods market
factors. For example, Unilever uses competitors pricing to determine the most appropriate
prices. On the other hand, the premium pricing strategy involves prices that are higher than
competitors. For instance, for products like Dove, Unilever applies moderately high prices that
correspond to the premium quality of the brand. Also, the company occasionally offers products
in bundles set at discounted prices. This section of Unilevers marketing mix shows a mixture of
strategies that suit the variations in the companys consumer goods and target markets.

Market Share

Unilever's largest consumer lies in Asia where most of their suppliers are from Asia. Reason
being is because labour, transport and inventories are cheapest in Asia and thus much more
efficient in Asia compared to Europe and America. Further support thesis is also evident where
America and Western Europe is only a Billion in difference, not much when calculated annually
in turnover. Unilever being a Australia based company is closest to Asia as well, so an
understanding in culture differences and market differences is much less different compared to
America and Europe.

Brand Awareness

According to Unilever, 'brands and innovation are at the heart of everything we do. We develop
our products to keep pace with changes in consumer lifestyles and to appeal to people at all
income levels. Success means getting bigger and better innovations into the market faster,

14
supported by the very best marketing' (Unilever, 2009, 8). These statements are indeed backed
up by initiatives undertaken in the last few years in the UK to increase brand awareness. Some of
these initiatives will be briefly described.

According to Mathiesen (2009, 19), 'a recent campaign for Lynx for Men, one of Unilever's
men's deodorants, resulted in a 56% increase in (prompted) brand awareness in the UK'. This
campaign was done through mobile marketing. The campaign sought to achieve the following
objectives (Mathiesen, 2009):

To enhance awareness of the Lynx brand

To market to the 16-24 year old male who are traditionally hard to reach through
traditional advertising methods

To promote the Lynx brand as attractive to women and modern

The success is not only evidenced by the 56% promoted awareness, according to
Mathiesen (2009), 86% could recall the Lynx advert and 44% of people felt more
positive about Lynx after seeing the add.

Not only are Unilever working on improving product branding, they have most significantly
moved to increase the company brand image. In March 2009, Unilever UK and Ireland began
putting the 'corporate branding on its product brand advertising including TV, posters and press
(Unilever, 2009b), starting with Flora. This move was influenced by research which showed that
'consumers in the UK and Ireland have relatively low awareness and knowledge of our company,
compared to some of our competitors. They are open to the idea of us promoting Unilever more
overtly and see this as a sign of honesty and transparency'. For a company as large as Unilever, it
is surprising that a lot of people who use a lot of their products on a daily basis do not know the
name of the company. The same could not be said of its competitors like Nestle or Kraft, for
instance. In an industry as competitive as the processed and packaged goods industry, where the
extent of competitive rivalry is very high, brand awareness is a vital source of achieving and
sustaining competitive advantage (Porter, 1998b).

15
Brand Theories:

Indeed, the importance of Unilever focusing on promoting brand awareness is supported by


relevant theory. MacDonald and Sharp (2003, 1), citing Rossiter and Percy (1987) described
'brand awareness as being essential for the communications process to occur as it precedes all
other steps in the process. Without brand awareness occurring, no other communication effects
can occur'. In other words, a consumer is likely to buy a brand if they are made aware of it.
MacDonald and Sharp (2003, 1) also go on to discuss memory theory where 'brand awareness is
position as a vital first step in building the 'bundle of associations which are attached to the brand
in memory' (citing Stokes, 1985).

Brand awareness is very important when a consumer is making what are usually very quick
purchase decisions. According to MacDonald and Sharp (2003), where a customer can identify
certain brands, he or she spends very little time looking at unfamiliar brands. Consequently, an
unfamiliar brand name or one that is not aggressively promoted risks being ignored, irrespective
of the quality of the product.

Even after a consumer has formed a consideration set and chosen the few brands from which she
will make her purchasing decision, consumers decide to purchase only familiar, well established
brands (Keller, 1993). The decision is usually made very quickly as well. According to Dickson
and Sawyer (1986), it takes approximately 12 seconds on average for a consumer to view
product alternatives and make a choice from different brands.

MacDonald and Sharp (2003, 2) also explained that brand awareness affects customers'
perception of quality. They cited Hoyer and Brown (1990) who found in a consumer choice
study that 'over 70% of consumers selected a known brand of peanut butter from among a choice
of three, even though another brand was objectively better quality (as determined by blind taste
tests) and even though they had neither bought or used the brand before. This result is even more
surprising considering the subjects were given the opportunity to taste all of the brands. Just
being a brand dramatically affected their evaluation of the brand' (MacDonald and Sharp, 2003,
2). Therefore, Unilever has tremendous opportunities to marry the popularity of their tremendous
brand image for most of their products to the corporate brand image. With effective marketing
strategies they can generate enough consumer trust and loyalty to dominate entire shopping

16
trolleys of families. This is because in the industry that Unilever operates in and the kind of
products it offers; consumers (buyers) have high bargaining powers. There is an also low
switching cost which means that a consumer may decide to switch from competitors' deodorants
to Lynx for the simple reason that the consumer has been used to buying Knorr stock.

SWOT ANALYSIS
Unilever is a leading consumer goods business in the global market. A SWOT analysis of the
company highlights business strengths that ensure long-term success. The SWOT Analysis
model identifies the relevant strengths and weaknesses (internal strategic factors) and the
opportunities and threats (external strategic factors). Unilevers SWOT analysis shows
significant opportunities that the company can use for further international growth and
expansion. The business is in a strong position to withstand the threats in its external
environment. However, Unilever must consider all of the factors outlined in this SWOT analysis
to guide strategic formulation for global operations. A SWOT analysis of Unilever depicts the
conditions of the business, as well as its external environment. Strategies based on business
strengths and market opportunities can boost Unilevers performance in the long term.

Unilevers Strengths (Internal Strategic Factors)


Unilevers organizational and business strengths are identified in this section of the SWOT
analysis. Strengths are internal strategic factors based on the companys conditions, such as
human resources, production processes, organizational structure and investments. The following
strengths are significant in Unilevers consumer goods business:

Strong brands
Broad product mix
Economies of scale
Strong global market presence

Unilever has some of the strongest brands in the consumer goods industry. This strength enables
the company to penetrate markets and effectively compete against other firms. The broad product
mix shows the extent of Unilevers business growth. For example, the company has increased its
product portfolio through years of mergers and acquisitions, leading to organizational growth
and corresponding increases in revenues. On the other hand, economies of scale support
production efficiency necessary for competitive pricing strategies. Through years of international
expansion, the company has also increased its market presence, which is a strength that
reinforces brand popularity. The internal strategic factors in this section of Unilevers SWOT
analysis show strengths that the company can use to sustain global growth and success in the
consumer goods market.

17
Unilevers Weaknesses (Internal Strategic Factors)
Despite its strong market position, Unilever has weaknesses that limit its potential growth. This
section of the SWOT analysis presents the internal strategic factors that impose barriers to
organizational and business development. Unilever must address the following weaknesses:

Imitable products
Limited business diversification
Dependence on retailers

One of Unilevers weaknesses is the imitable nature of its products. For example, even though
the company heavily invests in its product development processes, other firms can imitate Dove
and Roxana products. Also, in spite of its broad product mix, Unilever is weak because of
limited diversification in businesses outside the consumer goods industry. Moreover, the
company lacks direct strong influence on consumers, considering that retailers are the ones who
directly affect buyers. Thus, based on the internal strategic factors in this section of the SWOT
analysis of Unilever, the weaknesses emphasize the importance of diversification, innovation,
and enhanced marketing efforts.

Opportunities for Unilever (External Strategic Factors)


Unilever must take advantage of growth opportunities in consumer goods markets around the
world. This section of the SWOT analysis determines such opportunities or external strategic
factors that can facilitate business development. The following opportunities are significant in
Unilevers external environment:

Business diversification
Product innovation for health
Business enhancement for environmental conservation
Market development

Unilever has opportunities to diversify by entering businesses outside the consumer goods
industry. Diversification reduces market-based risks and improves business resilience. On the
other hand, product innovation can increase Unilevers product attractiveness by addressing the
needs of increasingly health-conscious consumers. Similarly, the company has an opportunity to
make its business more sustainable and environmentally friendly to attract and retain
environmentally conscious consumers. In addition, market development can grow Unilevers
business by increasing revenues from the sale of its current products in new market segments.
For example, the company can market its Lipton products as health drinks for consumers with
special diets. The external strategic factors in this section of Unilevers SWOT analysis point to
major opportunities to grow the business despite its weaknesses.

18
Threats Facing Unilever (External Strategic Factors)
A variety of external factors can limit or reduce Unilevers business performance. The SWOT
Analysis model considers these external factors as threats that the company must strategically
tackle. The following are the threats relevant to Unilevers consumer goods business:

Tough competitive rivalry


Product imitation
Increasing popularity of retailers house brands

Unilever faces tough competition, which is a threat based on the strengths of other firms in the
industry. Competitors threaten to reduce the companys market share and corresponding
financial performance. Product imitation is also a major threat against Unilever. For example,
local firms can develop products highly similar to Unilevers. Also, retailers impose a threat by
selling their own brands. These brands are known as house brands, store brands or generic
brands. For example, Costco uses Kirkland Signature as a house brand, and Walmart has its own
house brands that directly compete against Unilevers products. Based on the external strategic
factors in this section of the SWOT analysis of Unilever, strategies must focus on improving the
companys competitive advantage.

Unilevers SWOT Analysis Recommendations


This SWOT analysis of Unilever highlights a number of internal and external strategic factors
that managers must include in strategy development. For example, the weaknesses of limited
business diversification and imitable nature of products are significant because they influence
business stability and performance. In this regard, a recommendation is to diversify Unilevers
business through acquisition of related firms not in the consumer goods industry. Also, Unilever
needs to consider product innovation as an opportunity to boost business performance. It is
recommended that the company must use its strengths, such as economies of scale, for product
innovation to address competition and the threat of imitation.

BCG MATRIX OF UNILEVER

Unilever is officially the worlds third largest consumer goods company, behind Procter &
Gamble and Nestle, having generated a high turnover across its staggering 400+ brands. It is
often said however that the company focuses on just 14 brands those that each generate sales of
1+ billion. If this were the case, the question arises as to why Unilever retains such a large
portfolio of brands and why future selective acquisition is highlighted in its most recent annual
report?

To answer this question, the Boston Consulting Group (BCG) Matrix (also known as the Boston
Matrix) is a very useful marketing tool in understanding portfolio management. The premise of

19
the BCG Matrix is that all products or brands can be classified as one of the following categories,
based on its market share and market growth:

Star (HIGH Market Share, HIGH Market Growth):

These are brands very much at their peak, holding a large market share in very much a growing
market therefore requiring continued investment to hold or enhance their position, as
competitors continually enter the market and innovate. For Unilever, Lux, Fair & Lovely,
Rafhan, Walls and Sunsilk all these brands come in stars as they have high market share as well
as high market growth rate and continuous improvement is being made in these products.

Cash Cow (HIGH Market Share, LOW Market Growth):

These are yesterdays top products in industries that have since reached saturation. This is
arguably the most important category of brands for companies like Unilever as they require very
little further investment to generate revenue allowing for profits to be reinvested into Stars and
Question marks. Blue Band, Knorr, Lipton and Close-Up all these brands are Cash Cows for
Unilever with sales just about holding their own in the spreads industry that are slowly beginning
to decline.

20
QUESTION MARKS (LOW Market Share, HIGH Market Growth):

These can be described as tomorrows bread-winners (Stars). Often relatively young brands, they
are yet to maximize their potential within the industry and therefore require greatest investment
from the success of Cash Cow brands in order to exploit the fast market growth ahead of
competitors. The excess profit from brands like Lipton, Knorr, Close-Up, Blue Band etc. have
been reinvested into new innovative brands like Brooke Bond Supreme, Lifebuoy Shampoos etc.

Dog (LOW Market Share, LOW Market Growth):

These are the dead-end products whose time has been and gone and likely most offer no future
profits. Simply keeping them on the market is wasting resources generated by Star and Cash
Cow brands. Dogs should be disposed of unless they somehow contribute to the sales of other
brands/products within the portfolio. For this very reason, Unilever is planning to shut down or
sales its Close-Up and Pepsodent brand.

What these four categories demonstrate is that businesses with diverse portfolios such as
Unilevers require a balance of Star, Cash Cow and Question marks brands because markets are
constantly developing, maturing and ultimately declining (as demonstrated by the Product
Lifecycle theory). The journey of any product/brand is likely to follow the journey of question
marks Star Cash Cow Dog and the key to clever marketing is prolonging the Star and Cash
Cow stages for as long as possible whilst minimizing Dog brands:
Therefore, for Unilever to secure its long-term position as the third largest global consumer
goods company, ensuring a sufficient number of question mark brands today is as crucial as Stars
and Cash Cows, as funded by todays Cash Cows and Stars. Excellent portfolio management by
Unilever will see T2 become the future Dove or Tipton, before naturally becoming a Marmite
and subsequently another Slim-Fast, but smart investments will prolong the growth stages and
hold off the decline.

This long term perspective is a key strength of the BCG Matrix as a strategic tool. However,
there are still a couple of cautions to be considered when using it. Firstly, market growth may be
directly influenced by Unilever due to its market power. For example, as Lipton is the worlds
best selling tea brand, an increase in investment by Unilever would lead to a growth of the
overall market and give the impression that the market is a Star, when in actual fact it should be a
Cash Cow. It can also be misleading in terms of defining whether a market is growing or not
depending on the brands countries of operation. For example, Unilever claimed in 2013 that the
soups market declined in developed markets. Therefore, if operating solely in developed
markets, a firm may seek to divest its perceived Problem Child brand before it rapidly becomes a
Dog even though there are still growth opportunities outside developed markets (which would
indicate Unilevers Knorr soups could actually still be a Star).

Despite the limitations, the BCG Matrix is a very simple and useful tool for portfolio managers
to review their brands and products across industries and SBUs, and assist in prioritization of
investment and divestment. It clearly dispels the belief that Unilever focuses on just 14 brands; in

21
reality, these are simply todays Star brands that are seen within a bigger picture that also
consists of the other three BCG Matrix categories.

PEST ANALYSIS OF UNILEVER


Unilevers ability to address external factors in its remote or macro-environment contributes to
business prominence in the global consumer goods market. This pest analysis identifies such
external factors. The pest analysis model is a tool for managers to understand the influence of the
external environment on businesses. In the case of Unilever, these external factors vary
significantly, considering the international scope of the business. Nonetheless, the company must
focus on maximizing business performance. Unilever can achieve higher business performance
through strategies that overcome the most significant threats and exploit the biggest opportunities
shown in this pest analysis.This pest analysis of Unilever outlines growth opportunities in the
international consumer goods market. While the company faces threats in its remote or
macro-environment, growth is achievable by focusing on product innovation, among other
approaches.

Political Factors Affecting Unilevers Business


The political landscape affects Unilevers performance. This section of the pest analysis
identifies the impact of governments on firms remote or macro-environment. The following
political external factors are significant in Unilevers consumer goods business:

Political stability of most countries (opportunity)


Political issues in the European Union (threat)
Growing free trade relations (opportunity)

The political stability of most countries presents opportunity for Unilever to grow in these
markets. For example, the political stability of the United States helps minimize challenges in the
companys strategic implementations in the country. On the other hand, the political issues in the
European Union are a potential threat against Unilevers operations in the regions consumer
goods market. Nonetheless, the company has opportunity for global growth based on the
expanding free trade relations, especially those involving developing countries. Based on the
political external factors in this section of the PESTEL/PESTLE analysis, there are opportunities
generally available in the market, although Unilever must address the challenges linked to the
political condition of the European Union.

Economic Factors Important to Unilever


Unilevers business performance depends on the situation of economies around the world. This
section of the PESTEL/PESTLE analysis outlines the influence of economic conditions on firms
and their remote or macro-environment. The following economic external factors are
determinants of Unilevers performance in the consumer goods industry:

22
Increasing wages in developing countries (opportunity & threat)
High growth of developing countries (opportunity)
Economic stability of developed countries (opportunity)

The increasing wages in developing countries present the opportunity for Unilever to profit more
from higher potential sales, as consumers gain higher disposable incomes. However, the same
external factor is a threat in terms of increasing costs, considering that the company has many
manufacturing facilities located in developing regions. Nonetheless, Unilever can expect
business growth, as these countries grow in terms of consumer goods market size and value. For
example, China presents major growth opportunity for the company. Moreover, the economic
stability of developed countries cushions the business from risks in other markets, while
facilitating gradual but steady growth. Thus, this section of the pest analysis of Unilever
highlights opportunities for global growth.

Social/Sociocultural Factors Influencing Unilevers Business Environment


Sociocultural trends and issues affect Unilevers business performance and the remote or macro-
environment. The socially driven behavioral aspect of markets is considered in this section of the
pest analysis. The sociocultural external factors significant in Unilevers consumer goods
business are as follows:

Rising health consciousness (opportunity)


Rising environmentalist behaviors (opportunity)
Gradual dismantling of the gender divide (opportunity)

Unilever can grow through products that directly address consumers increasing interest in
healthful products. In addition, rising environmentalist behaviors present an opportunity for the
company to attract more consumers by improving its environmental impact. For example,
Unilever can minimize its energy consumption by adopting new and more energy-efficient
technologies. Also, the company can grow through higher sales based on improving incomes
among female consumers worldwide. The external factors in this section of Unilevers
PESTEL/PESTLE analysis show the importance of product innovation in growing the consumer
goods business.

Technological Factors in Unilevers Business


Unilever depends on available technologies to support its consumer goods business. This section
of the PESTEL/PESTLE analysis identifies the impact of technological trends on firms and their
remote or macro-environment. In Unilevers case, the following technological external factors
are significant:

Rising business automation (opportunity & threat)


Rising R&D investments (threat)

23
Decreasing cost of transportation based on technological efficiencies (opportunity &
threat)

Rising business automation is an opportunity for Unilever to increase operational efficiency. For
example, new business processing equipment can enhance inventory monitoring to support
supply chain and distribution efficiencies. However, the same technological external factor is a
threat because it increases the competitiveness of other firms, including small ones in local
markets. On the other hand, rising research and development (R&D) investments threaten
Unilever because it also increases the competitive advantage of other firms in the consumer
goods industry. Nonetheless, the decreasing cost of transportation leads to lower operating costs,
which contribute to business growth. Still, the decreasing cost of transportation is a threat
because it contributes to the competitiveness of other firms. This section of the pest analysis of
Unilever highlights growth opportunities and competitive threats based on technological trends
in the remote or macro-environment.

Ecological/Environmental Factors Affecting Unilever


Ecological trends and conditions influence Unilevers remote or macro-environment. The effects
of the natural environment and related issues are considered in this section of the
PESTEL/PESTLE analysis. The following ecological external factors significantly affect
Unilevers consumer goods business:

Rising interest in business environmentalism (opportunity)


Increasing business efforts on sustainability (opportunity)
Increasing complexity of environmental programs (opportunity)

The rising interest in business environmentalism is an opportunity for Unilever to improve its
environmental programs to attract consumers concerned about the environment. In relation, the
company can enhance its sustainability programs to strengthen its competitiveness against other
firms in the consumer goods industry. Unilevers corporate social responsibility strategy must
effectively implement these programs throughout the organization. For example, the strategy
must consider product innovation and internal business processes to further reduce business
environmental impact. These efforts should also support Unilevers ability to satisfy increasingly
complex environmental programs. Such external factor is an opportunity for the company to
improve its competitive advantage through corporate responsibility. Based on the condition of
the remote or macro-environment shown in this section of Unilevers pest analysis, there are
opportunities to improve business performance by making the organization more
environmentally sustainable.

24
Legal Factors Facing Unilever
Unilever must satisfy regulations to minimize barriers to its consumer goods business. This
section of the pest analysis determines the impact of legal systems on firms remote or macro-
environment. Unilever must satisfy the issues based on the following legal external factors:

Increasing complexity of environmental regulations (opportunity)


Strengthening international patent laws (opportunity)
Strengthening consumer rights laws (opportunity)

Unilever has an opportunity to enhance its corporate image by matching the organizations
corporate social responsibility strategy with environmental regulations. In addition,
strengthening international patent laws can facilitate the companys growth. For example, new
patent laws in developing countries help reduce patent-related issues Unilever experiences in its
remote or macro-environment. Furthermore, stronger consumer rights laws create an opportunity
for the company to improve its customer-service quality, along with product quality standards.
These efforts can increase the attractiveness of Unilevers brands in the consumer goods market.
The external factors in this section of the pest analysis of Unilever indicate the benefits of
improving legal systems worldwide.

Unilevers PEST Analysis Recommendations


This pest analysis reflects a number of opportunities and threats that Unilever must prioritize in
its strategies for growth and global expansion in the consumer goods market. A recommendation
is that the companys strategies must include the external factor of rising health consciousness
among consumers. Unilever can take this factor as an opportunity to improve its food products. It
is also recommended that the company must improve its sustainability programs to address
opportunities regarding business sustainability. Another recommendation is to take rising
business automation as a significant threat that empowers Unilevers competitors, especially
smaller ones in local markets. For example, local companies can increase their competitive
advantage by automating their production processes. Given such issues based on this pest
analysis of Unilever, global growth with innovation and business sustainability require strategic
focus.

PORTER FIVE FORCES MODEL:


Unilever effectively competes in the global consumer goods market. A Five Forces Analysis
(Porters model) of the company shows the need to strategically prioritize competition and the
bargaining power of customers in the industry environment. Michael Porters Five Forces
Analysis model is a management tool for understanding the impacts of external factors in a
firms environment. In Unilevers Five Forces Analysis, competitive rivalry is viewed as one of
the strongest external forces, along with the bargaining power of buyers. To ensure long-term
success, the company must address the issues related to these forces. Unilevers market position

25
and organizational strengths are adequate to address such forces. A Porters Five Forces
analysis of Unilever identifies competition and consumers as the most important forces in
the companys industry environment. The external factors related to these forces have a
direct impact on Unilevers financial performance in the consumer goods market.

Unilevers Five Forces Analysis:

Unilever deals with a wide variety of external factors, considering the extent of its operations in
the global consumer goods market. However, as shown in this Five Forces analysis, such
external factors lead to variations in the intensities of the five forces impacting the business. The
following are the intensities of the five forces in affecting Unilever:

Competitive rivalry or competition (strong force)


Bargaining power of buyers or customers (strong force)
Bargaining power of suppliers (moderate force)
Threat of substitutes or substitution (weak force)
Threat of new entrants or new entry (weak force)

Recommendations:

This Porters Five Forces analysis highlights competitive rivalry and the bargaining power of
buyers as the issues with the highest intensity in affecting Unilevers business. The bargaining
power of suppliers is also important, but has limited impact on the company. The threats of
substitutes and new entry have minimal effect on Unilever and the consumer goods industry
environment. In this regard, strategic action must prioritize competition and the bargaining
power of customers. A recommendation is for Unilever to further build its competitive advantage
through product innovation. For example, the company can increase its investment to produce
better and more competitive variants of its current personal care and home care products.

Competitive Rivalry or Competition with Unilever (Strong Force)

Competition is a major force in Unilevers industry environment. This section of the Five Forces
analysis identifies the external factors that present the impact of firms on each other. The strong
force of competitive rivalry against Unilever is based on the following external factors and their
intensities:

High number of firms (strong force)


High aggressiveness of firms (strong force)
Low switching costs (strong force)

There are many firms operating in the consumer goods industry. This external factor imposes a
strong force on Unilever. In addition, these firms are generally aggressive, further adding to the
intensity of competition. Unilever also experiences tough competition because of low switching

26
costs. For example, it is easy for consumers to switch from one firm to another. Thus, a high
level of competition is shown in this section of Unilevers Five Forces analysis, highlighting the
need to consider competitive rivalry as a high-priority force in the companys industry
environment.

Bargaining Power of Unilevers Customers/Buyers (Strong Force)

Unilevers business and industry environment depend on the response of consumers to its
products. The influence of buyers on business performance is considered in this section of the
Five Forces analysis. Unilever must address the following external factors that lead to the strong
force of the bargaining power of customers:

Low switching costs (strong force)


High quality of information (strong force)
Small size of individual buyers (weak force)

The low switching costs make it easy for consumers to transfer from Unilevers products to other
companies products. This external factor contributes to the strong intensity of the bargaining
power of buyers. In addition, consumers have access to high quality of information about
consumer goods, making it even easier for them to decide when transferring from Unilever to
other providers. For example, buyers can compare products based on online information. The
small size of an individual consumers purchases has minimal impact on Unilevers profits.
However, the low switching costs and high quality of information outweigh this third external
factor in the industry environment. Based on this section of the Five Forces analysis, the
bargaining power of customers is one of the strongest forces affecting Unilevers consumer
goods business.

Bargaining Power of Unilevers Suppliers (Moderate Force)

Suppliers impact Unilevers industry environment by affecting the level of supply available to
firms. This section of the Five Forces analysis presents the influence of suppliers on companies.
The following are the external factors that contribute to the moderate force of the bargaining
power of suppliers on Unilever:

Moderate size of individual suppliers (moderate force)


Moderate population of suppliers (moderate force)
Moderate overall supply (moderate force)

While Unilever has large suppliers like foreign firms that supply paper and oil, the average
supplier is moderate in size. This external factor imposes a moderate intensity force on the
consumer goods industry environment. In addition, the moderate population of suppliers enables
them to impose significant but limited influence on firms like Unilever. Similarly, the moderate
level of the overall supply adds to such significant but limited influence of suppliers. For

27
example, any suppliers change in production level leads to significant but limited change in the
availability of raw materials used in Unilevers business. Other firms in the industry are similarly
affected. As shown in this section of the Five Forces analysis of Unilever, the bargaining power
of suppliers is a significant but moderate consideration in the consumer goods industry
environment.

Threat of Substitutes or Substitution (Weak Force)

Substitutes can reduce Unilevers revenues and the strength of firms in the consumer goods
industry environment. The impact of substitution is determined in this section of the Five Forces
analysis. In Unilevers case, the following external factors are responsible for the weak force of
the threat of substitution:

Low switching costs (strong force)


Low substitute availability (weak force)
Low performance to price ratio of substitutes (weak force)

The low switching costs enable consumers to easily use substitutes to Unilevers products. This
external factor imposes a strong force on the company and the consumer goods industry
environment. However, the overall impact of substitution is weakened because of the low
availability of substitutes. For example, it is easier to access Unilevers Close-Up toothpaste
from grocery stores than to obtain substitutes like homemade organic dentifrice. In relation, most
substitutes have low performance with minimal or insignificant cost difference when compared
to consumer goods readily available in the market. This condition makes Unilevers products
more attractive than substitutes, thereby further weakening the intensity of the threat of
substitution. This section of Unilevers Five Forces analysis shows that the threat of substitutes is
a minor issue in the business.

Threat of New Entrants or New Entry (Weak Force)

Unilever competes with established firms as well as new firms in the consumer goods market.
This section of the Five Forces analysis considers the influence of new firms on the industry
environment. The following external factors create the weak force of the threat of new entrants
against Unilever:

Low switching costs (strong force)


High cost of brand development (weak force)
High economies of scale (weak force)

The low switching costs enable new entrants to impose a strong force against Unilever. For
example, consumers can easily decide to try new products from new firms. However, it is costly
to build strong brands like Unilevers. This external factor weakens the intensity of the threat of
new entrants against the company. Also, Unilever takes advantage of high economies of scale,

28
which support competitive pricing and high organizational efficiencies that new firms typically
lack. As a result, the company remains strong despite new entrants. Based on this section of the
Five Forces analysis, the threat of new entry is a minor concern in Unilevers industry
environment.

Ansoff Matrix:

29
Market Penetration:
Market Penetration deals with introducing existing products in existing markets by aggressive
advertisements and promotion strategies. Uniliver is penetrating the market through brands like
Surf Excel, Lifebuoy, Ponds, Lux and Knorr.

Market Development:
In market development,Company introduces existing products in new markets like Uniliver has
explored new markets for Knorr Soup, Walls, Lipton Tea, Dove, Domex, Pepsodent and
Sunlight Detergent Powder.

Product Development:
In product development, company introduces new products of existing brand in new markets.
Uniliver has introduced a wide range of Chinese foods mixes in Knorr, Hand-washes and
Hand sanitizers in Lifebuoy, Body wash in Lux and shampoos in Dove brand.

Diversification:
Diversifiaction refers to exploring completely new markets and producing unique products other
than the available product range or exploring a completely new business segment. Uniliver is
exploring fashion market by conducting Lakme Fashion Week and Lux Style Awards in
Pakistan.

30
CRITICAL ANALYSIS
No doubt that unilever is a well known brand of the world and operating its business in many
different countries. From its formation to till now UNILEVER has introduced many brands in
different countries according to the need of different people of different areas. UNILEVER has
marketed its products very well and use different strategies to sell its products. As UNILEVER
uses different strategies for different products so these strategies are needed to be re set because
competition is increasing day by day so to have big market share in the market UNILEVER must
look into its marketing strategies. Here we will discuss about the UNILEVER products and the
marketing strategies related to the products, and prudently criticize the strategies to improve the
market share and customer satisfaction.

PRICING STRATEGIES:

Market Skimming Strategy: through this strategy UNILEVER tends to generate revenue from
the innovators and early adopters. But this strategy is only effective if UNILEVER is launching a
new product which has no potential competitors, in short we mean to say innovative product.
For example: Flora and Ponds Age miracle cream. This strategy is only useful until unless
competitors will not introduce a new product against these products.

Market penetration strategy: Through this strategy Unilever tries to grab the market share
through low pricing. This usually is the case when Unilever is trying to market those products which
are the basic necessities of life. For Example: Pearl Dust and Lifebuoy Soap and shampoo. As the
target market of these products is lower middle class and low income families they would like to
purchase these products if the quality of these products is good and prices are low. Otherwise these
products will fail to capture high market share. And might possible if the prices are low at start the
product might fail to creat a good image in the minds of potential customers.

SEGMENTATION:

Unilever uses LSM (Living Standard measures) and SEC (Socio-economic Class) to segment the
market for its products. It should focus the demographical and geographical needs of the people. For
example the soap series of UNILEVER is focused on beauty and hygiene they should introduce
soaps for dry skin and oily skin according to the different areas of Pakistan i.e people living in

31
northern areas of Pakistan face the dry skin problem and in winters its the problem of all users so the
soap which reduces the dryness should be introduced in the market and should also introduce
shampoos for kids, they havent introduced yet in Pakistan.they should also cater the younger kids.

POSITIONING:

Unilever does not follow any specific positioning strategy which they should, as in most of the cases
they position their products on culture and beliefs like SURF EXCEL which is positioned as "DIRT
IS GOOD" where as RIN washing powder which is positioned as providing "karak dar safaidi", is a
perfect example of positioning in product features. They should position their products on the basis
of quality they are providing and the value they are providing to their customers. Because there are
many cultural controversy issues countries like Pakistan.

TARGETING:

Unilever's target market is basically based on families who come in upper middle and higher
classes. They should focus on the lower middle class to sell their products because the
purchasing power of people in Pakistan is low so the huge population is consist of middle class
so they also target middle class people. Most of its products have a premium price. They target
that segment of the market which is willing to pay more for quality and seek value for their
money. But they also offer some lower end fighting brands for lower income people that are able
to achieve almost similar kind of benefit as those consumers who buy their higher end products.

LINE EXTENSION:

Line extension is basically a strategy that involves producing variants of similar product in a
similar category. These are actually variants of the original product and Unilever has employed
this strategy in various products. For example:

Cornetto Ice-Cream is offered in a lot of different flavors like chocolate, caramel, strawberry,
and vanilla. But the price is high which should be low in order to capture huge market share.

Lipton is offered in packs as well as tea bags. But the different flavors are not being introduced
till now in Pakistan which should be introduced.

32
Lifebuoy soap comes in the form of liquid hand washing bottles as well as in the form of soaps
which are offered in regular, neem, and antiseptic variants. But the hand wash is only two flavors
other should also be in liquid version. And the quality is needed to be improved because the soap
melts very quickly.

Sunsilk is offered in a wide range catering separately for dry, normal and oily hair. But is not
offered for men it should be introduced for men.

Surf excel is offered in different package sizes like 500, 250, and 50 kg packs besides Rs. 10 and
Rs. 20 sachets. But chemicals being used to remove stains ate very much in quantity that it
causes scratches in hands.

Knorr noodles are offered in different flavors of chat pata, and chicken. Different sizes should
also be introduced in the noodles. It has introduced family pack but other sizes are needed to be
introduced in form of economic packs.

BRAND EXTENTION:

It means jumping into an entire different category with a same brand name. This approach is
somewhat risky but yet Unilever has used it with some of its products.

For example: Unilever has launched ready to make recipe mixes with the same brand name of
Knorr. It has even its ketchups and chili garlic sauces under the brand name of Knorr. But the
other brands are also needed to be expend like surf excel is in detergent form the soaps can be
introduced to wash the clothes and clothe comforter can be introduced under this brand name.

MULTIBRANDING:

Sometimes the company in order to bring in variety in a market or to gain market share offers a
new product in the same category but with a different brand name. Unilever has embarked upon
this strategy in several categories of products for example:

Unilever produces four different brands of tea including lipton, supreme, A1 karak chai, and
pearl dust.

It produces three brands of shampoos lifebuoy, sunsilk, and clear.


It produces two different brands of margarine flora and blue band.

33
But the tooth paste brand of UNILEVER is not so good because two years back they have closed
pepsodent brand and the Colgate is also going to be closed because of low sales or nominal sales.

NEW BRANDS:

Unilever has produced entire new products also in a completely new category and with a new name.
For example:

Comfort fabric softener.


Close up toothpaste.

But the toothpaste brand is not so workable it should be reconsidered and the beverages should be
introduced in Pakistan under UNILEVER.

DISTRIBUTION CHANNELS:

Unilever has a B2C distribution channel which includes the company itself, the wholesalers,
retailers, and the customers. It basically uses a pull strategy for promotion of its brands, focuses
more on communication and is the only consumer goods company that gives the lowest markups
to retailers. The huge amount of profit is enjoyed by the company itself. They must increase the
retailers margin to make them happy because the retailers are there to sell their products in the
market without retailers they cant sold their products to end users so the retailers are the big part
of their distribution thats why they must make them happy by increasing their margins in
profits. Because if the retailers know that from the sale of their products they will get high profits
they can pursue the customers to purchase the UNILEVERs products.

Other Segments Considered:

Lower class is supposed to be targeted as it makes the masses of the country. But since this item
is considered as a luxury item it won't appeal to them. Their economic standards give them the
option to afford normal second tier washing detergents in small quantities only.

We did not targeted males / females below the age of 14 because of the fact that, at this age they
are least bothered about stains on their clothes and secondly they are depending on a fixed pocket

34
money, which won't allow them to spend on this luxury, as this product will hold little
significance to them.

Now we will discuss these strategies with respect to the different products of UNILEVER which
are followings:

Ponds:

Pond's promise: To deliver products that make a real difference to women's skin and the way
they live their lives.

A rich heritage caring for your skin since 1846

Over the years no one has cared for your skin more than Ponds. Since 1991, UPL extended its
brand portfolio to serve you better. No wonder it has been passed on to you from generations
with the same affection that the product stands for.

However, with time Ponds has evolved according to your changing needs thanks to the Ponds
Institute- a state- of the-art research center. Inspired by your needs, the Ponds Institute over
the years has undertaken several research projects with women to better understand of what they
think and want for their skin.

As we can see the statements they are just trying to play with the emotions of their customers.
The actual purpose of the product is to earn profit with high sale they are not concerned about
customers skin rather the point of concern is the profit through sales. For the sake of this profit
they have marketed their product well to create a better image in the mind of customers they
have choose a celebrity as brand ambassador because all the claims they make are wrong no one
is going to be fairer in just seven days its a cream not a magic they just ply with the psyche of
the customers who are more conscious of their dark complication. In actual they are following
the selling concept because they have develop their product and now they are pursuing people to
purchase the product just focusing on the benefits being delivered by the products. Always this
type of tactics are been used by the companies but the dark sides are always be hidden. The
prices of all the products which they are offering under this brand are highly priced. So what
about people who dont have the purchasing power but have dark complication. Do they just care

35
about the skin of rich people? Following are the products in which they claim that within seven
days you will get fair skin which is wrong no one of these creams is going to make you fair in
seven days.

Pond's Age Miracle


Ponds Flawless White
Ponds Flawless White Naturals
Ponds White Beauty
Ponds Face Washes

Ponds Clear Solutions Facial Foam


Removes 99% of pimple bacteria! Formulated with the Power of Herbal Clay infused with Neem
plant extract, Ponds Clear Balance Clear Solutions Facial Foam acts against bacteria to prevent
breakouts and reduce acne. With gentle exfoliating beads, use it 3X a day and say hello to
beautiful, pimple-free skin. The above made claim is wrong that it removes 99% pimples may be
it remove pimples but it is not going to remove 99% pimples. They are just targeting the young
girls who are more conscious of clean skin.

Ponds Oil Control Facial Foam

For oil free look up to 12 hours! The advanced Oil Control Facial Foam with the Power of
Mineral Clay sponges up excess oil and make-up, without over drying the skin. They are saying
that oil free skin for 12 hours which is questionable because customers claimed that it doesnt
work for 12 hours in fact they are deceiving their customers.

Sunsilk:

Sunsilk provides real solutions to women's everyday hair needs everywhere. We work with
world-leading experts in every aspect of great hair to bring you Sunsilk.

Sunsilk believes that everyone deserves beautiful hair

Thats why were collaborating with the worlds top hair experts and applying their knowledge
and secrets to our range.

36
Each one of our Sunsilk Co-Creators specializes in a different element of hair care from
cutting-edge catwalk styles to length, shape, softness and shine. With their help, Sunsilk is
designed to help you get perfect results, whatever your hair type.

As sunsilk has 7 types of shampoos under this brand but they dont advertise them equally. They
always focus on a specific flavor like currently the point of focus is just pink colure shampoo
which is for thick and long hairs. Instead of focusing on only one they should make an ad in
which they can cover all the 7 flavors in this way they can make it more attractive for the girls
using this brand. Except this they can expend this product by introducing the shampoos for men
under this brand. Oils in different version can also be introduced with shampoos to attract the
customers as oiling is very good for your hairs. UNILEVER hasnt yet introduced these things
which in fact can improve their market position as compare to their competitors. Along this they
are also involve in deceptive marketing just playing with hum psyche. The benefits they claim do
not exist in the shampoos the clear picture of the products should be shown as they show too
much thick hair in ads which are not in actual they you different editing techniques to make the
hairs so attractive shinny and thick. They can also introduce hair serums, heat Protestants spray
and dry shampoos to improve their product range under this brand.

CLEAR:

CLEAR gives you the confidence to flaunt your flawless best. Nothing to Hide, Lots to Show!

Clear spells confidence for the young Pakistanis of today. With its Women and Men range, Clear
not only solves your dandruff problems but gives you the confidence to look and feel more
attractive.

With Clear, you have nothing to hide, lots to show!

Clear stands for confidence. It accentuates a personality that is distinct, charming and
competitive. The Pakistani youth today aspires to be free from inhibitions and to pursue
excellence in life. Since 2007, Clear has been making sure that it doesnt let something like
dandruff shatter this confidence.

37
Clear is a brand of substance & technological superiority that also has style & soul a character
& personality. Our vision for you - our consumer - is to provide a healthy, deeply nourished
scalp which has a natural resistance against dandruff and is the foundation for your strong and
beautiful hair, so that you feel attractive, confident and ready to boldly engage the world!

Clear has a gender-based dual architecture because it understands that the male scalp has a
unique set of requirements and needs specialized care in order to combat dandruff and other
scalp related problems. That is why Clear, in addition to its unisex range, has a distinct range of
shampoos specifically for men the first of its kind to be ever brought to Pakistani men.

From the above description we can see that how they have distinguished their product from
competitors. As they said that they have gender based dual architecture then why they havent
makes separate ads for both genders? They advertise their products in the same ad in which no
one can distinguish that they are focusing separately on males and females. They should expend
the product rang and bring new innovations in their product under this brand as Head & Shoulder
is its big competitors they have introduced wide range of versions foe men and women as well
but in clear for men only black clear is introduced. They can also introduced hair sprays for men
and can package these spray with shampoos they can also introduce different hair creams as well.
They targeted segment of this product is middle income people and they have just this brand for
antidandruff so the pricing strategy is needed to be reset to increase the market share of this
brand because it is facing big rivalry in this brand. And tag line is also needed to be revised
which is All Clear

Fair & Lovely:

Fair & Lovely, the worlds first skin lightening brand, is trusted by women all across the world
over to deliver results.

Fair & Lovely advanced multivitamin: Building on its heritage of being the worlds first skin
lightening brand, Fair & Lovely now brings expert fairness to the Pakistani consumer. The New
Fair & Lovely Advanced Multivitamin offers consumers benefits akin to 5 expert fairness
treatments. Fairness for all: Based on its breakthrough formulation, the new Fair & Lovely mark

38
like a laser treatment, sun tan like a face polish treatment, dullness like a face peel treatment,
dark circles like an antioxidant treatment and lightens skin color like a vitamin mask giving you
flawless treatment like fairness, everyday.

Fair & Lovely winter fairness: For those who feel that moisturizing in winter makes skin oily
and creates a barrier to beautiful fair skin, this unique formula gives you the fairness of
Multivitamin, while protecting your skin from the sun and leaves it feeling soft, supple and
glowing. Fair & Lovely max fairness for men: Fair & Lovely MAX Fairness for Men is uniquely
designed for tough male skin. Its revolutionary Vitamin Complex and UV Filters work
intensively on male skin and help give Men: Max Sun Protection, Max Spot Reduction and Max
Fairness, so you can have Max Confidence.

From the above description we can understand that the focus of this brand is on the fairness and
bringing confidence in the people through fairness. The questionable thing is that they have
made beauty as the standard of everything they are playing with emotions of people to sell their
products. They are promoting hatred among black and white. Fairness is not the stander through
which we can judge the qualities of anyone not only whites but blacks can also do all the same
things so they should change the marketing strategy of this brand. Secondly the customers using
it for the numbers of years havent become fairer so their claim to be fair in one week is wrong.
They should also recheck the formula of its BB cream against which they have received many
complains that customers claim that the quality of this cream is not good competitors are better
in this cream. Some dermatologists also recommend not using this cream. Along this they should
also change their brand ambassador and bring some new faces. They can also expend the product
line by introducing lotions, cleansing milks and hair creams also. Currently an ad is coming on
T.V about BB cream that makeup wali look without makeup in fact BB cream is itself a
cosmetic product then how they can claim this thing.

Lifebuoy:

Lifebuoy is one of the Unilever's oldest brands launched in 1894 as disinfectant soap in the UK
to support people in their quest for better personal hygiene. Lifebuoy brands main products
include soaps, shampoos and conditioners. Lifebuoy is known for the health and hygiene. The

39
goal of Lifebuoy is to provide accessible hygiene and health solution with the affordable price
that enable people to lead a life without fear and hygiene anxieties and health consequences. In
the past, Lifebuoy had a standard brick red soap with the specific fragrance but over the years
Lifebuoy has greatly evolved with a new product range and has also diversified its range by
introducing shampoos, conditioners and hand washes.

Marketing Strategies:

Lifebuoy comes in the category of convenience good and has a wide range of products like
soaps, shampoos, conditioners, hand washes and hand sanitizers and all are available in different
variants and colors i-e red, green, blue, yellow and orange .As far as price of Lifebuoy is
concerned, it is following market penetration strategy as it is low priced, affordable and easily
available at all small and big stores which shows that it follows intensive distribution as a
distribution strategy. UNILEVER has distribution offices in different cities where its products
are distributed to different whole sellers and retailers. Lifebuoy aggressively advertises its
products through different advertising media like print media, billboards, TV and banners. Its
promotion strategies include personal selling and sales promotion. In sales promotion,
company offers Lifebuoy with its other product such as hand sanitizer is given with Lifebuoy
soap and also by offering conditioner with its shampoo and hand sanitizer with hand wash. In
personal selling, male and female salesperson sells Lifebuoy products at their specific stalls in
big shopping stores.

Critical Analysis:

Earlier Lifebuoy was only available in one flavor which reduced its sales and decreased its
market share but afterwards Lifebuoy improved its product mix width and length strategy by
introducing different forms and flavors in product length like soaps, hand washes and hand
sanitizers and shampoos and conditioners in its product width. Earlier Lifebuoy was only
associated with men and targeted men as its all advertisements focused on Lifebuoys protection
for men but now after evolution of Lifebuoy, It focuses on family protection and targets entire
family.

Lifebuoy is basically a germ protection soap with a relatively low-price in the market but
its main competitor is Dettol Soap of Reckitt Benckiser and Safeguard of P & G, both are fairly

40
priced and are comparatively more sold than Lifebuoy. Secondly, Lifebuoy is focusing more on
children rather than entire family and featuring ads for protection against germs. Dettol on the
other hand focuses on children as well as on entire family. Moreover, Dettol is available in an
anti-septic solution while Lifebuoy is not and hence Dettol earns an edge over Lifebuoy.
Lifebuoy also faces rivalry with two of UNILEVERs other brands that are Lux and Dove. Both
Lux and Dove have greater sales and market share as compared to Lifebuoy. These days Johnson
and Johnson is the leading company in the baby care product. Unilever can increase the sales
volume of the lifebuoy by entering into the baby care product. This sector of customer is not
targeted by the lifebuoy. While launching the baby care product such as Lifebuoy baby shampoo,
lifebuoy baby oil, lifebuoy baby talcum powder. The company can reach to the mass consumer.
Lifebuoy only targets rural areas so it must devise strategies to change its image in the mind of
customers and should also focus on targeting urban population.

Lux:

Lux is another leading global brand of UNILEVER. Lux is a beauty soap which has silk protein
extract that delivers soft and smooth skin. With natural ingredients like peaches, cream and silk
protein extract, Lux is a soap that delivers for the most superior soft skin and beautiful fragrance.
Lux is always associated with Beauty, Style, Fashion and Glamour and has sponsored significant
events in fashion history by introducing designers like Amir Adnan; Sana Safinaz etc.Lux has
also endorsed fashion and Style by sponsoring shows like Lux Style ki Duniya and Lux
Carnivale de Couture. But the biggest contribution by Lux is promoting the art, music and
fashion in Pakistan, are the Lux Style Awards.

Lux comes under the category of convenience goods and is available in 5 variants now; Peach &
Cream, Strawberry & Cream, Purple Lotus & Cream, Fresh Splash and Nature pure. Lux has
competitive prices i-e its prices are neither high nor low as it faces stiff competition in the
market and is easily available at all big and small stores and shops.Lux is an affordable product
as its price is reasonable i-e Rs.52 for 150 grams of soap bar. Lux targets middle class and lower-
upper class segments of society. This brand follows intensive distribution and is widely
distributed by UNILEVERs distribution offices which are in different cities of Pakistan to
whole sellers and retailers. Lux aggressively and intensively promotes its products through

41
direct marketing, personal selling and sales promotion. We can find different salesgirls in
huge stores promoting lux brand and encouraging customers to buy it. In sales promotion, lux
offers its soap with any of UNILEVERs products.Lux also follows discounted pricing and offers
3 soap bars at a nominal price of Rs.150. Since then the company has utilized every available
medium like digital, electronic and print to launch its product via ad campaigns in popular
television channels, radio, billboards, magazines and newspapers.Lux aggressively advertises its
products through every available media like digital, electronic and print media and includes
advertisements on TV, in magazines and newspapers and on billboards. Lux has already
created its brand image in the mind of customers as a luxury brand associated with beauty, style,
fashion etc. Owing to new trends of Pakistani society, Lux has introduced body wash in 2
variants i-e Lux Body wash Soft Touch and Lux Body wash Magical Spell and both are
aggressively advertised and promoted and a loofah is given free on purchase of Body wash as a
sale promotion.

Critical Analysis:

Initially, Lux being beauty soap only targeted women but from past few years it is targeting both
males and females. Secondly, Lux is not popular in rural areas as it only targets urban
population. This brand is only associated with beauty, style and fashion and ignores anti-septic,
germ-protection and anti-bacterial properties. Lux can introduce its new germ protection and
anti-bacterial range in the market. Lux can target another market by making sun-screens and sun
protection creams. Lux also faces rivalry within different brands of UNILEVER and its
competitors include Dove, Lifebuoy and Pears soap. Other competitor brands include Capri etc.
Lux can also launch a new variety of soaps featuring differentiated markets and including people
with different skin types like normal, sensitive, dry and combination skin like Lux Soap for Acne
Skin, Lux Soap for dry skin etc. Owing to new trends of Pakistani society, Lux can introduce its
body wash but does not introduced face washes, hand washes and facial cleansers. Being
associated with style and beauty, style and fashion Lux can also launch hair care products and
make-up products like shampoos, hair-oils, hair-serums, BB-creams, compact powders, lipsticks,
nail-polishes etc.

42
Pears:

Pears is another brand of UNILEVER .Pears soap is loaded with the goodness of glycerin &
natural oils. It is trusted for being gentle and is recommended by doctors and pediatricians
worldwide. It was first transparent quality soap in the world and its transparency was considered
a sign of purity. It is so pure and transparent that one can actually see through it!

Pears is projected as a delicate soap with sweet fragrance. Its traditional soap is amber in color
but later company diversified its range after realizing that people have different skin types. Pears
is also a convenience product and is available in 3 variants i-e Pears Pure & Gentle, Pears Germ
Shield and Pears Oil Clear. Pears have been projected as a premium brand with its target
customers being middle and upper-middle class section of society. Thats why Pears has
adopted a mid-premium pricing strategy for its products. It has kept prices affordable and
reasonable for its target customers. Pears have also implemented promotional pricing policy and
offer incentives at regular intervals to tone down its prices. It has a two-fold effect because it
results in greater sales volume and ultimately larger revenues. As part of its promotional
activities brand has offered incentives like one free soap at the purchase of three and discounted
pricing. Pears also advertise its products but those advertisements are not aggressive and
frequent. The advertisements include ads on TV, in magazines and newspapers.

Critical Analysis:

Pears brand faces extreme rivalry with different internal and external brands. Internal brands
include UNILEVERs different brands like Lifebuoy, Lux and Dove while external brands
include Dettol of Reckitt Benckiser and Safeguard of Proctor & Gamble. As Pears is also
launched in germ-protection variant, it faces excessive competition with Lifebuoy, Dettol and
Safeguard and has comparatively less market share and has less to no sales when compared with
others even after its reformulation and product development. So, Pears appears to be the least
sold brand of UNILEVER and perhaps UNILEVER is deciding to remove this brand from its
personal care product line.

43
Vaseline:

Vaseline is another famous brand of UNILEVER and deals in petroleum jelly-based products In
1870, Robert A.Chesebrough discovered a 100% natural product, rich in minerals
from deep within the earth, which had remarkable skin-healing properties.
That product was petroleum jelly, which Robert Chese started to commercialize with the brand
name Vaseline. This brand was purchased by UNILEVER and this is how Vaseline came under
UNILEVER.

Initially, Vaseline was launched in a single packaging known as Vaseline White


Petroleum Jelly. Then, Vaseline redesigned its packaging and also introduced new varieties.
Now Vaseline includes plain and flavored petroleum jellies, different flavored creams and
deodorants. Vaseline has diversified its product length and product width strategy. Now,
Vaseline Petroleum jelly is available in 3 variants and 3 different sizes of 50, 100 and 150 grams
i-e Vaseline Original (blue color container) , Vaseline with Cocoa Butter (brown color
container ) and Vaseline Baby care (pink color container).Vaseline has also launched
moisturizing body lotions in 4 different colors, each having different colors and used for
different purposes. These include Aloe Fresh, Cocoa Radiant, Total Moisturizing and Healthy
White Lightning visible fairness. Vaseline Lip care products are also available which comes
under product width strategy. Vaseline follows intensive distribution pattern and is easily
available in all big and small retail stores. Vaseline is highly affordable and has a reasonable
price. It is also distributed by UNILEVERs distributors to whole sellers and retailers. Vaseline
is intensely and massively promoted through direct marketing, personal selling and sales
promotion. It is vigorously advertised on TV, in magazines and newspapers and on billboards.

Critical Analysis:

Initially, Vaseline original was undifferentiated in the market which only targeted people from
age 50 and onwards but after redesigning and repackaging of Vaseline, it was introduced for
babies and adults. One of Vaselines drawbacks is that it only targets women in the society and
features ads according to women skin problems. Initially, Vaseline was just a petroleum jelly
brand but now it also manufactures moisturizing creams, lip care products and women
deodorants. Vaseline deposits on skin and gives an oily feeling on skin as complained by many

44
customers. Moreover, Vaseline faces intense competition with Ponds, Dove, Nivea and other
brands. Moreover, it should also focus on launching sun-screens, night creams and special
creams for cracked heels.

Rexona:

Rexona is a deodorant and antiperspirant brand founded in Australia and manufactured


by Unilever. Unilever is the largest anti-perspirant and deodorant manufacturer in the world. It is
marketed under the Rexona name in most countries, it is known as Sure in the United
Kingdom, Ireland and India.

Rexona is a deodorant brand for men and women, offering a range of anti-perspirants and
deodorants with formulations that last up to 48 hours. They are available in different variants like
Rexona for Clinical Protection, Invisible Dry and Rexona Motion Sense. Major categories
include Original Protection, Extra Protection, Sensitive skin, Anti-stain and anti-bacterial.
Rexona is a relatively costly product as its price ranges from Rs.100 to Rs.300. Rexona is
available only at big stores and follows selective distribution strategy. It is also distributed
through UNILEVERs distribution offices to whole sellers and retailers. It is not frequently
advertised but sometimes we can see its ads on TV, in magazines and newspapers. It is also
promoted through direct marketing, personal selling and sales promotion.

Critical Analysis:

Rexona is not advertised and promoted aggressively which is one of its negative points. Those
who know about Rexona purchase it while others are comfortable in using different talcum-
powders which have fewer prices as compared to Rexona. Rexona faces intense competition with
different brands of talcum powder like Black Cat, Maycare, Ponds, Tibet, Enchanteur etc.
Although it is available for sensitive skin but causes itching to those who use it regularly. Others
complain about its staining properties and it also leaves scars on skin.

45
Close-Up:

Close-Up is another leading brand of UNILEVER. Close-up is synonymous with 'Freshness' that
gives you the confidence in social situations, encouraging people to open up by getting over their
self doubt. Close-up was the first gel toothpaste to be launched in a paste dominated market.

Close-Up is a convenience good. Initially, it was available only in white color but after its
repackaging. Now, Close-Up offers different types of toothpastes which includes Close-Up
(Crystals with blue granules), Close-Up (Lemon Mint), Close-Up (Menthol Chill), Close-Up
(Red hot), Close-Up (White teeth fresh breathe) etc. Up has also a range of mouth-washing
liquids. The gel toothpaste is for people of all ages and aims at making you smile your heart out.
Other than the blazing the Red Hot regular, menthol filled Pepper Mint Close-Up is also
available. Its price ranges from Rs.40 to Rs 150 and is easily available at all big and small retail
stores. It is highly affordable and reasonable and targets all classes of people. Close-Up is also
distributed by UNILEVERs distribution offices and is not frequently advertised and promoted
these days.

Pepsodent:

Pepsodent is also one of the brands of UNILEVER. Pepsodent was launch in Pakistan in
December 2011 with the aim of improving the Oral hygiene in Pakistan. Dentist recommends at
least twice a day brushing but the habit in Pakistan is less than once. Pepsodent has taken up the
task of providing the best oral protection that helps prevent germs that causes cavity and other
dental problems. Not only this, Pepsodent also invests in educating the families in small towns
the importance of brushing for them and their children.

Pepsodent is included in a convenience product and is available in following flavors that are as
follows; Pepsodent Complete Care, Centre Fresh, Expert Protection, Expert Protection Sensitive,
Whitening, Herbal, Action, Germi-check etc. Pepsodent has also launched its different flavored
mouth-washes and tooth brushes in 3 forms with respect to their bristles i-e Soft, Medium and
Hard Tooth brushes. Its price ranges from Rs.70 to Rs 150 and is easily available at all big and
small retail stores. It is highly affordable and reasonable and targets all classes of people.

46
Pepsodent is also distributed by UNILEVERs distribution offices and is not frequently
advertised and promoted these days.

Critical Analysis:

Close-Up is the first gel tooth paste ever introduced in Pakistan while Pepsodent is that tooth-
paste which is recommended by doctors. Earlier, both were promoted aggressively but now they
have not been advertised from quite some time. Secondly, they both are rivals for each other.
They also have many competitors like Colgate, Medicam, Sensodyne and Doctors
Toothpaste etc. Moreover, now people have become more conscious regarding their teeth and
oral hygiene and prefer using fluorinated tooth-pastes that provide cleanliness and have anti-
bacterial properties. Many different flavors have been introduces in Close-Up and Pepsodent but
they still have less sales and less market share due to many competitors. Both tooth-pastes only
targeted youth and ignored other age-groups of people. They are not much promoted as Colgate,
Medicam and Sensodyne. UNILEVER is planning to shut down these two brands because they
are no more profitable to them. Although, they still have a good image in the mind of consumers
still Close-Up and Pepsodent needs to be advertised and promoted more through TV
advertisements. UNILEVER should review its marketing strategy and adopt some
promotional offers in order to remain in the market and compete with its competitors.

Knorr:
Products:

Price: 20-100Rps, 15-35 Rs. , 19 Rs. 28, Rs. 99, Rs. 140 Rs, 95,

Place: Available all over the world more than 87 countries around the world.

Promotion and communication: commercial advertisement on all types of media, billboards


and media programs.

Blue band:
Products:

Margarine spread.

Price:

500 grams 235 Rs.

47
Place

Blue Band / Rama is sold in more than 65 countries under different brand names - Bonella,
County Crock, Doriana, Dorina, Imperial, La Perfecta, Maizena, Milda, Mirasol, Planta, Planta
Fin, Primavera, Sana, Stork, Tulipan and Vitam.

Promotion and communication:

By use of online and media promoting health benefits of using the particular product.

Rafhan:
Product:

Custard, jelly, corn flour, pudding, ice cream and corn oil.

Price:

Rs. 55- 3240

Place: All over Pakistan.

Promotion and communication:

The brand is communicated by focusing on children making birthdays magical with Rafhan via
TV commercials.

Lipton:
Product:

Mega Daane, Yellow Label leaf tea, Ice tea, Black Teabags and Green Teabags (Lemon, Mint,
Jasmine, Plain).

Price:

Rs.90-1050

Place:

Pakistan and all around the world.

Communication and promotion:

Electronic media advertisement, online advertisement and billboards.

48
Brook bond supreme:
Product:

Tea.

Price:

Rs. 150-760 and in other countries varies 4$, 6$ etc.

Place:

In Pakistan it is selling as brook bond supreme and in other countries like India, Canada and
other countries.

Promotion and communication:

Means of promotion of brand is done through social media, commercials and others.

Critical analysis:
Knorr brand has focused on childrens needs. The product of knorrs soup is consumed by all the
demographic segments its marketing should also include other consumers too it should not focus
on only one segment. The product of Yakhni should also be advertised as the cure of health and
other aspects of benefits. Knorr should also protect its brand image as health concerns the
consumers are more aware by the use of social media. . It has huge promotional activities, have
different strategy to target the market but have less target market. And it has also segmented only
psycographic pricing Brand has been satisfied over the years with its wrong pronunciation is
KNORR. Why isnt the K silent? Why is it Ka-Norr and not norr (pronunciation wise)? For
many people who cant get the pronunciation of the word pronunciation right its a huge blow.
Its weird that when you go to a nearby grocery store and ask for KNORR mentioning its right
use and silent use of K the shopkeeper would be oblivious to the brand and when you say, I
want Ka-NORR noodles they would understand what you are talking about. There are different
packaging of knorr products and also have variety of products in western countries and less in
Pakistan.

49
The product of blue band doesnt include flavors in their product. And it also focus on childrens
health. The margarine butter is also use in baking and other cooking methods but it is marketed
only as a product used in breakfast. Blue Bands current image is that of a margarine spread,
which is not very nutritious despite its many vitamins and calcium. This is because of the
concept in the consumers mind that it has chemicals added and is therefore, not pure and
healthy. Blue Band Margarine spread has been in the market since the past 15 years. It is the only
locally produced margarine in the Pakistani spreads industry. However, the product is still in the
latter stages of growth on the product life cycle. This is because of the fact that sales are
relatively stagnant and Blue Band is not growing at the accelerated growth rate expected of a
market leader. The main reason for this is that the rural areas where the lower income classes are
prevalent are not familiar with the use of margarine. These people do not believe in going out to
buy margarine or butter for that matter. These are the type of people who feel that pure and
healthy are only what is produced or cooked at home.

According to the article of Arora by Omer Hasan Khan of august 4, 2015. The marketing
strategies of brand of Brook bond supreme, Rafhan and Lipton were criticized. They dont show
clear cut picture and reality in their marketing. In the Ad one could be forgiven for believing that
Rafhan would not be the brand of choice for someone living in a house like that. The need is not

50
specified in the particular ad. The marketing of Lipton and Brook bond supreme have, to a large
extent, managed to keep it real. It is high time someone takes the risk.

Brook bond Supreme doesnt have much flavors in the product as Lipton has. it has focused on
the traditions and lifestyle and Lipton has worked on all aspects of life, health and tastes of
customers. This makes them revival of each other. Lipton has been playing the key role to
provide its consumers with something better and different in every way it can. Lipton once again
with the extension in its product mix has come up with the idea of introducing new flavor in the
market, the cardamom flavor. The differentiation strategy of Lipton is the flavor and aroma. It is
targeted for the existing tea drinkers, providing them with something new and attractive, with
great aroma and taste. Unilever has used product development strategy to introduce Lipton
Cardamom Tea; it has offered modified/new products to current markets. Over the years,
peoples lifestyle has been continuously changing. People have become very innovative and
want to endeavor new things which can give them pleasure and comfort. The Lipton cardamom
tea is the type of tea which has milk and sugar already added to it. It is a complete tea mixture to
use. The target market of Lipton Cardamom Tea is the elite class; moreover, it targeted those
people who want relaxation in the day to day routine work. This product is of high premium
quality. The launching of the product was to satisfy the need of target market by providing them
taste, aroma, pleasure and convenience. It is an unsought good. The promotion strategy for
Lipton Cardamom tea is quite poor. It hasnt been advertised properly. Even though the company
has healthy relations with people, there has been no personal selling done by the company for
this product. Most of the people are unaware of this brand of tea, it is mainly due to the fact that
it is not available for the households and the target market is limited. The sales promotion is
quite low. Many people are still unaware if such a product even exists in market taken out by
Lipton. Promotion is done only on magazines; even the Unilever website does not contain much
information about it. You can hardly find anything on the website of Unilever or the search
engines. There are more flavors introduced in other countries by Lipton but there are few in
Pakistan.

51
Marketing strategies of Walls and its critical analysis:
Walls is one of the most famous ice cream brand of unilevers company.walls has variety of
products ranging from low priced desert like rainbow to premium priced product like
magnum.some product names of walls are walls cornetto,magnum ,feast, chocolate fudge, twister,
spin, rocket, jet spot ,walls carton and walls classic tubs in different flavours .walls target to wide
range of consumers.they introduces products from children to adults of every age. They target
children by walls Paddle pop series.This product targets children by usage of cartoons
and such animated cartoons ads used for its promotion. The packing is in rich and
bright colors to attract the children.One o f t h e m o s t p o p u l a r p r o d u c t s i s
cornetto cones series. By their this product, walls target targets teenagers and university students.
Walls Magnum ice cream is an expensive product. Magnum targets adult and the people
who have a taste for strong chocolate and rich ice cream. The advertisement of this product
portrays luxury and class people, therefore the high price thus targeting adults.They set their prices
according to the their targeted customers and product. They introduced both low priced and high
priced product to cover a wide market. Walls uses Pull strategy for promoting its product because
WALLs spent a lot on advertising and consumer promotion to build up consumer demand.Walls
is positioning its products as an international brand which has very best quality. It
has maintained the taste worldwide; it has the same formula of its products worldwide. Walls
has successfully positioned its products at the top of their customers mind due to which
loyalty status of their customers is very high and they never wants to switch to any other brand.
They uses two types of distribution strategies.In first strategy include incentives like free deep
freezers, discounts on bulk purchases. Second, Advertising campaign that reminds and persuades
customers to buy ice cream supports 2nd strategy, which is facilitated by price offs, which are
frequently offered by the company. One of the competitive advantages of WALLS is its
availability, which is ensured by extensive distribution. They divided Pakistan into three major
sections.These are North (Islamabad, Peshawar and Northern areas),Central (Lahore and Central
Punjab), South (Sindh and Baluchistan).
They uses best marketing strategies and because of it they are best brand of Pakistan. They earn a
lot of profits and they give a high satisfaction to their consumers by providing them to best and
high quality product in their own place . As their distribution strategies is good but if they open
their own franchises and ice cream parlours they can earn more and give more satisfaction to their

52
customers. Magnum is an expensive product of Walls but their adds attract teenagers more than
adults.Teenagers are mostly students so they should minimise their prices or make another price
strategies of magnum. They should also introduce more flavour in magnum as many adults donot
like chocolate too much. Paddle pop is one of most favourite ice cream of children just because of
their animated adds but infact it is not school canteen approved tucker product.
Glucoxe-D:
Glaxose-D is a fifty year old strong brand of unilever . A strong leader in the Dextrose market in Pakistan.
Glaxose-D is a non-flavoured energy drink that can be used by children and adults alike, made from
glucose, which is the simplest form of sugar, and serves as an instant source of energy. The drink is also
infused with minerals such as Calcium, Phosphorus & Vitamin D. It helps in maintaining an active lifestyle
for sports person, active business person or are a busy housewife. Glaxose-D is an easily digestible glucose.

Critical analysis:

Although it is also a well reknown energy product of unilever but they should advertise it on mass
media for their promotion.Glucoxe-D is energy provider drink but it is not suitable for fatty people
because it contains sugar and if your body does not require more sugar then the extra sugar will
be converted into fat .Therefore, they should focus on this point . Glucoxe-D has no flavours. As
it is a good for health but many people and children dont like it because it is not attractive for
children so to make it attractive they should introduce more flavours.

Surf Excel:
It is a brand of unilever , launched in 1948 as surf. Surf Excel is known for its famous tag line
Daag tou achay hotay hain Dirt is good. In 1996, Surf redefined itself by launching Surf Excel.
In 2003, the base variant Surf was re-launched as, Surf Excel Blue. Over the years, the brand has
worked hard to build awareness on the importance of child learning through experience. Dirt is a
natural part of the process of children experiencing life and developing. There are small rights
that allow children to live fully, such as playing in a park without the fear of getting dirty or
painting a flower pot without a care about paint stains. All these little but crucial experiences
help nurture creativity, and build confidence in a child.Surf excel detergent bar: Surf excel blue,
surf excel automatic for middle class & upper middle class. The pricing strategy for Surf excel
have always been in accordance with its competitors. First national detergent brand on TV
Different formats of communication. Various categories of communication systems like

Media, such as newspapers, magazines, direct mails, outdoors, etc. are used In the broadcasting
media, television and radio FM is the major tool.

53
Analysis:
Daag tou achay hain focus on the female voiceover concludes, it target female only not men. In
advertising easy wash,Dirt is good Daag achhe hain Phir waqt hai khelney ka, machine is not
guilty, use the right detergent, Surf Excel hai na and remove stain but sometimes its not
remove stain properly. Surf Excel easy wash, now has power of 10 hands etc but Machine is an
isolated thing how it can feel guilty, surf excel easy wash that has power of ten hand is also a
wrong statement how it is possible, a powder has a human power and bleach is included in surf
that create rashes on hand. It is not good for sensitive skins persons.

Comfort:
Comfort is a fabric conditioner that cares for our clothes and gives them much more than a
detergent alone. They give feeling of care for everyday through clothes with amazing shine and
fragrance that you cannot get from detergent alone.

Makes clothes soft, smooth and great to wear

Adds a long-lasting freshness to your clothes that you can experience even 7 days after washing!

Maintains the shine of clothes and Pour half a cap of Comfort in a bucket of water soak ten
washed clothes (white or colored) in the bucket containing Comfort, it is an expression of love
and affection of family.

Analysis:
Comfort dont give long lasting freshness to the clothes for seven days after washing ,the
fragrance of comfort eliminate after one and two days at least. Just two flavor Pink and blue now
people bore from two fragrances they should need to introduce new flavor in market.

Domex:
Domex Toilet Expert has landed in Pakistan and continues on in its mission to make all the
toilets of Pakistan cleaner, safer and completely germ-free. Domex is available in 4 different
variants, each of which has a unique fragrance

Domex Original
Pink Power
Pine Blast
Lemon Explosion

Powerful Domex Toilet Bleach with its specialized hypochlorite formulation kills all sickness
causing germs completely as well as removing all types of dirt and stains completely.

54
Analysis:
It says Domex toilet bleach removing all type of dirt and stain completely but in reality not
removes stain properly. It says seven times thicker as against phenyl and detergent powder but
its easily flow. Segment presence mainly in Urban Areas. Highly competitive market and
slightly higher priced even for all urban families so they should need to reduce price and set
price at average level.

Rin:
Rin offers unbeatable whiteness with a remarkable fragrance leaving your clothes smelling fresh
and looking great. Yellowness is the most recurring problem with high concern for Pakistani
consumers. Rin, launched in Pakistan in 2008, addresses the consumer desire for whiteness. Rin
contains yellowness fighters which offer whiteness and bring back life in your everyday clothes.
Using the innovative shading dye technology that restores yellowed clothes to bright white, it
provides an aspiration platform and focuses on owning whiteness. Rin is essential in the laundry
category in Pakistan since the identifications branch from the whiteness/brightness functional
promise that it makes through its peela pan hatao, chamak dikhao.

Analysis:
Rin is usually secondary brand of unilever. The fragrance of rin is not diversify in many flavors
people whose flavor lover dont buy it and the whiteness alone in clothes is not matter for people
when fragrance not attract. The promise that it make through peela pan hatao chamak dikhao is
not reliable because its not provide shines to the clothes as compare to other detergent like surf
excel etc. its use high chemical for whitening that create rashes on hand. Rin smell is also not too
good.

Conclusion

Overall, Unilever will seek to improve their customer base and strongly focus on the changes in
the upcoming years ahead. With new inventories and business partners, Unilever will soon
capitalize in other segments of products to broaden their customer base. They seek to improve
their R&D and customer knowledge over the years, exploring new technologies and scientific
breakthrough to improve their products, healthier, user friendly and longer lasting products to
give a satisfying feel to existing clients and possibly new clients.

Research & development in Unilever ranges from looking at emerging technologies, exploring
possible applications and collaborating with external experts to projects lasting around six to
nine months that adapt products for local markets

55
56

You might also like