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The risk in rural areas is high price sensitivity with rapid inflation pushing product prices up , consumers are likely to switch to cheap local substitutes . There is a huge competition in the market. The most dangerous competitor is P&G, as well as local market also effect the sale of Unilever. Unilever faces problems in operation sectors. It have many products thats why Unilever faces problems to manage them. Detergent penetration is very low in Pakistan. Composition of soaps is 80% of fats and oils the prices of palm oil surged 71% to us $ 800 per ton in December 2007. The operation with small or local firms for manufacturing is a big problem for Unilever. Unilever faces political and legal factors of host country. Not connecting with people. Inefficient management of brands. Reduced spending for research and development. Inability to maximize acquisition.

I recommended that Unilever should opening the R&D internal culture to collaboration to the outside product development community. Unilever is operating globally. It means that FMCG is such an industry which can be grown globally. Unilever should increase its productivity with low cost,In this way it competes with others. Loyal customer is a key factor of success or profitability. Unilever should retain them Unilever also target the middle and lower income people because they cannot afford to buy the products. U N I L E V E R c a n u s e i t s i n t e r n a t i o n a l b r a n d s t r e n g t h a n d w i d e network of retail outlets in order to compete with organized and unorganized players of market. Unilever should use product development to increase sales by slightly modifying its products Unilever should increase its production capacity in order to compete in market and to reduce competitors threat. Unilever can capture untapped rural markets and markets of d e v e l o p i n g n a t i o n s b y u s i n g i t s s t a t e o f t h e a r t f a c i l i t i e s & technology. If Unilever can obtain cheaper raw material, it can reduce cost of goods manufactured.