Uniliver

Acknowledgement
“I bow my head in gratitude to almighty Allah, who blessed me with the ability and energy to
complete this work”
I wish to express my deep sense of gratitude to my great and honorable teacher Mr. Abdul
Shakoor Khan Khakwani for his friendly behavior and his keen interest. His kind advises and
guidance helped me through out the progress of this report. I would like to thank all persons for
their contribution and coordination in completion of this work. They provided very beneficial
information, which increased my knowledge.
AUTHOR
table of contents
TOC \T "HEAD NO. 1,1,HEAD NO. 2,2,HEAD NO. 3,3" Organization

Introduction............................................................................................... PAGEREF
_Toc377548663 \h 1
Acquisition.....................................................................................................................
PAGEREF _Toc377548664 \h 3
Product Mix.......................................................................................................................
Home And Personal Care...........................................................................................

Personal Wash (PW)................................................................................................

Fabrics And Home Care..............................................................................................

Fabric Wash...............................................................................................................
Home Care.................................................................................................................
Personal Product..........................................................................................................
Hair Care.....................................................................................................................
Skin Care....................................................................................................................
Dental Care................................................................................................................
Oil And Dairy Based Foods.........................................................................................

Banaspati....................................................................................................................
Cooking Oil.................................................................................................................
Margarine....................................................................................................................
Industrial Fats............................................................................................................
Beverages......................................................................................................................
Leaf Teas....................................................................................................................
Dust Teas....................................................................................................................
Mixture Tea.................................................................................................................
Ice Cream....................................................................................................................
Vision Of Lever Brothers Pakistan Limited..................................................................

Mission Statement of Lever Brothers Pakistan Limited.............................................

Analysis Of Mission Statement...................................................................................

Mission Contents........................................................................................................
Organization Philosophy.......................................................................................
Organization Key Value.........................................................................................

Critical Success Factor..........................................................................................

Concern For Different Stakeholders...................................................................
Form And Sources Of Competitive Advantages................................................

Scope And Types Of Mission................................................................................

Objectives Of Lever Brothers Pakistan Limited And Attainment Of Objectives...

Objectives of Lever Brothers Pakistan Limited......................................................

Attainment Of Objectives...........................................................................................
Specific.....................................................................................................................
Measurability............................................................................................................
Attainable.................................................................................................................
Reliability..................................................................................................................
Time Frame..............................................................................................................
Attainment Of Objectives.......................................................................................
Strategic Management At Lever Brothers Pakistan Limited...................................

Corporate Level Strategy...........................................................................................

Business Level Strategy............................................................................................

Operational Level Strategy........................................................................................
Strategy Evaluation.......................................................................................................
Suitability.....................................................................................................................
Acceptability................................................................................................................
Feasibility.....................................................................................................................
Structural Analysis........................................................................................................
Organizational structure and management of Lever Brothers Pakistan Limited

Board Of Directors......................................................................................................
Hierarchy......................................................................................................................
Branch structure.........................................................................................................
Structural Analysis.....................................................................................................
Threat Of New Entrants.........................................................................................

Threat Of Substitutes..............................................................................................
Buyer Power............................................................................................................
Supplier Power........................................................................................................
Competitive Rivalry.................................................................................................
Structure Types In Multinational Companies........................................................

Value Chain Analysis Of Lever Brothers Pakistan Limited....................................

Explanation Of Value Chain....................................................................................

Supportive Activities...................................................................................................
Firm Infrastructure...................................................................................................
Human Resource Management...........................................................................

Technological Development.................................................................................
Procurement............................................................................................................
Primary Activities Of Value Chain Of Lever Brothers Pakistan Limited............ PAGEREF

_Toc377548731 \h 44
Inbound Logistics Of Value Chain Of Lever Brothers Pakistan Limited....... PAGEREF

_Toc377548732 \h 44
Operations...................................................................................................................
Out Bound Logistics...................................................................................................

Marketing And Sales..................................................................................................

1. Poor Marketing..................................................................................................

Services....................................................................................................................
A Transition In Value Chain.....................................................................................

SWOT Analysis..............................................................................................................
Strengths......................................................................................................................
Weaknesses................................................................................................................
Opportunities...............................................................................................................
Threats..........................................................................................................................
PEST Analysis...............................................................................................................
Political & Legal Factors............................................................................................

Economical Factors....................................................................................................
Capital Markets........................................................................................................
Socio-Cultural Factors...............................................................................................
Technological Factors...............................................................................................
Problem Statement........................................................................................................
Problems......................................................................................................................
Internal problems....................................................................................................
External problems...................................................................................................
Introduction Of Sunsilk And Lifebuoy........................................................................

Sunsilk Shampoo.......................................................................................................
Lifebuoy Shampoo.....................................................................................................
SWOT Analysis Of Shampoo Product Line..............................................................

Strengths......................................................................................................................
Weaknesses................................................................................................................
Opportunities...............................................................................................................
Threats..........................................................................................................................
Competitors’ Analysis...................................................................................................
Direct Competitors......................................................................................................
Upper Class.............................................................................................................
Middle Class............................................................................................................
Sales Analysis............................................................................................................
Pentene Of P&G.....................................................................................................
Sunsilk Of Lever Brothers Pakistan Limited.......................................................

Indirect Competitors...................................................................................................
Imported Shampoos................................................................................................
Branded Soaps........................................................................................................
Unbranded Shampoos & Soaps..........................................................................

Strengths And Weaknesses Of Competitors............................................................

Strengths Of P&G.......................................................................................................
Weaknesses................................................................................................................
Existing Strategies Of Sunsilk.....................................................................................

Product Strategy.........................................................................................................
Pricing Strategy...........................................................................................................
Promotion Strategy.....................................................................................................
Placing Strategy..........................................................................................................
Suggested Strategies.................................................................................................
Product Strategies...................................................................................................
Pricing Strategies....................................................................................................
Promotion Strategies..............................................................................................
Place (Distribution) Strategy.................................................................................

Existing Strategies Of Lifebuoy...................................................................................

Product Strategy.........................................................................................................
Pricing Strategy...........................................................................................................
Place (Distribution) Strategy.....................................................................................

Promotion Strategy.....................................................................................................
Suggested Strategies.................................................................................................
Market Penetration..................................................................................................
Implementation........................................................................................................
Market Development...............................................................................................
Implementation........................................................................................................

Organization Introduction
Lever Brothers Pakistan Limited is a multinational organization. Unilever PLC London is its
parent company. Unilever is a European based company with headquarters in London, and their
shares are quoted at the stock exchange of several European countries. They deal in all kinds of
products from animal foodstuff to foods and detergents plus other personal and consumer
products. Unilever has its subsidiaries in over 80 countries of the world, to which it spreads its
vast knowledge and resources.
William Lever (its originator) commences business in England as a grocer. He established Lever
Brothers in 1827 in England Sunlight was the first product of Lever Brothers, which makes the
beginning of the marketing of branded products at the same time Margarine Uni was established
in Nether Land by Simon Van Berg and Anton Jurgens. These two companies in term of:
 Buying raw material
 Selling finished goods

Consequently both the companies loosing out money in term of profit. These problems led to
think of the mergers in 1930. These two companies merged together and renamed the business as
Unilever PLC / the word UNI is taken from margarine Uni and Lever is taken from Lever
Brothers. Its head quarter was established in England and Rotter Dam.
Unilever has 500 operating companies in 80 countries. It has 0.3 million employees and turnover
of sales in 23000 million pounds. The global business proportion is 60% in Europe 20% in North
America and 20% in rest of the world. An identified board of directors control the activities of
subsidiary companies throughout the world. Lever Brothers Pakistan Limited started its
operations in 1948. A merger of Sadiq Vegetable Oils and Allied Industries existed in Rahim Yar
Khan was taken place with Lever Brothers and HVM company based at Karachi. As a result of
merger Lever Brothers Pakistan Limited was incorporated as an independent Unilever operating
company in 1955. The company is quoted on the Karachi, Lahore and Islamabad Stock
Exchanges. Lever Brothers Pakistan Limited has around 1900 employees in Pakistan.
Lever Brothers Pakistan Limited played a dynamic role in boosting consumer products market. It
stand at a unique position due to its honesty and integrity. Lever Brothers Pakistan Limited’s
main divisions of business are:
Merger With Brooke Bond
Brooke Bond Pakistan Limited was incorporated in 1948. Company’s 40% shares are held by
Unilever, 21% by financial institutions, 24% by individuals, and 10% by insurance companies.
The company is quoted on Karachi and Lahore Stock Exchange market. The company is
manually engaged in the blending, packaging and marketing of tea. It also has a small business in
the sale of packing apices. The company employ around 850 persons. And has three
manufacturing locations situated in Karachi and Khanewal. It also have three regional sales
offices. The head office of the company is located in Karachi.
After the amalgamation of Lever and Brooke Bond, Unilever will have a majority shareholding
in the combined company and it will provide a comparable level of technical, management and
financial resources. The proposed merger will benefit the consumer in term of price and quality.
Acquisition
Lever Brothers Pakistan Limited acquire the shares of Pakistan Industrial Promoters Limited,
Mehran International Limited and Ambrosia International Limited, which is known as Polka
Group of Ice Cream Companies.
Product Mix
At present Lever Brothers Pakistan Limited is engaged in marketing of diversified varieties and
classes of products and playing a dynamic role in boosting consumer product market. It stand at
a unique position due to its honesty and integrity. Lever Brothers Pakistan Limited has both
product length and depth i.e. it has by length a largest of product lines available and under each
product line there are lots of variants like different weights, 100mg, 500mg, 1000mg, sache pack,
family pack or in case of ice creams different brands have lots of flavor available which
determines its product depth. So different no of product lines are called product length and no of
products in each product line are called depth of product line. Lever Brothers Pakistan Limited’s
main product groups are listed below:
Home And Personal Care
Personal Wash (PW)
Toilet Soaps
Lifebuoy (Carbolic Soap)
Lifebuoy Plus
Lifebuoy Gold
Lux (in 4 varieties)
Rexona (in 2 varieties)
Liril
Hamman
Fair & Lovely Soap
Fabrics And Home Care
Fabric Wash
Surf Excel
Power Surf
Sunlight Washing Powder
Soap Wheel

Home Care
Vim Dish Washer / Scourers
Vim NSD Bard (in 2 varieties)
Vim Powder Poly Bag
Personal Product
Hair Care
Sunsilk Shampoo (in 7 varieties)
Harmony Soap
Lifebuoy Shampoo
Skin Care
Fair & Lovely Skin Cream and Lotion
Dental Care
Close-up Tooth Paste
Pepsodent
Oil And Dairy Based Foods
Banaspati
Dalda
Cooking Oil
Dalda Cooking Oil(Soya Bean)
Dalda Sunflower Oil
Planta
Margarine
Blue Band

Industrial Fats
A whole range of product for bakery and oils for the industry.
Beverages
Leaf Teas
Yellow Label
Yellow Label – Danedar
Richbru
Top Star
Taaza Leaf
Supreme
Brooke Bond
Dust Teas
Pearl Dust
Ruby Dust
Laojee
Mixture Tea
Taaza
Ice Cream
Cornetto (in 3 varieties)
Feast (in2 varieties)
Feast Stickless
Top Ten
Star Cup (in 4 varieties)

Sundae ( 2 variant)
Chocu Bar
Minimill
Sola
Jet Spot
Ice Lolly
Wall’s Kulfi
Panda
Pop Corn
Big Three

Vision Of Lever Brothers Pakistan Limited
The vision of Lever Brothers Pakistan Limited is driven by is the commitment to excel and we
are here to sell aspiration not brand. So, the core vision is integrating and that is to excel in
every field whatever Lever Brothers do to provide customer delight and value. The Lever
Brothers have been able to follow the track set by their vision and to achieve the standards set by
their customers.
Mission Statement of Lever Brothers Pakistan Limited
Lever Brothers Pakistan Limited will be the foremost consumer company in Pakistan with the
dominant position in laundry, personal wash, skin, ice creams and spreads: a leading position in
tea, hair, dental and household care and a sustainably profitable position in cooking oil and fats.
1. We will aim at delivering a 15% UVG rate, hence doubling the size of our business over 5
years and thereby delivering superior value creation.
2. We will achieve this by adopting a broad view of our market by seeking the new
opportunities in the core categories of Unilever and by staying closer to all consumers than
competitors, understanding their evolving needs and focusing on constant delivery of superior
value for our brands through innovation.
3. Competitive advantage will also be developed by driving down relentlessly on relative cost
positions and outpacing competition in operational efficiency improvement.
4. We shall build on our strong network of distributors to maximize penetrations and
visibility in existing channels and to develop all new channels relevant to our consumers.
5. We shall establish Unilever’s core brands in Afghanistan, building brand loyalty and
strong distribution in the market.
6. To achieve these standards of performance, Lever Brothers Pakistan Limited will develop
a strategically focussed organization and will motivate its personnel to use its full potential of
creativity and commitment. It will also leverage Unilever’s best practices and maintain the
highest standards of operational control.
7. Through its commitment to high levels of care and safety for its employees, its consumers
and the environment, Lever Brothers Pakistan Limited will be exemplary and will participate in
the dissemination of such practices in Pakistan.
Analysis Of Mission Statement
Mission Contents
Organization Philosophy
People
Peoples are key to strengths of Lever Brothers Pakistan Limited. The development of their
potential is core to Lever Brothers Pakistan Limited business.
So they provide extensive attention to developing human resources.
Customers
Lever Brothers Pakistan Limited is the customers focus organization. They do delight customers
with their products and service. Their brands always deliver the high quality as they premise.
Lever Brothers Pakistan Limited pays extra attention to the complaints of consumers.
e.g. if the consumer complaints that detergent harmed any cloth or skin they send the sample for
lab test a team analyzes that customer complaint is right or not and then they send the detailed
response to customer along with gift of their products. With a questionnaire for suggestion for
further improvement on the top of which is written “WE CARE ABOUT YOU”.
Suppliers
Suppliers are considered the partners of Lever Brothers Pakistan Limited and Lever Brothers
Pakistan Limited maintain mutually beneficial relationship with them.
Integrity
Lever Brothers Pakistan Limited never compromise on integrity management adhere to high
standards in all they do.
Environment responsibility
Management adhere to all national and Unilever standards to ensure health, safety and protection
of the environment in which they live and work.
Profit
It is considered to be the ultimate measure of Lever Brothers Pakistan Limited’s performance

and it is required to maintain and grow their business.
Product Market Domain

This factor indicates where they are going to compete. Lever Brothers Pakistan Limited’s field of
operations is the consumer products and business and this is very clearly stated in their mission
statement.
Organization Key Value
It defines that what do they want. They people of organization to be good at or how do they want
them to behave and this very clearly stated in mission statement as always stay responsive to
change, go for innovation, employee commitment to organizational objectives and mission and
creating value for customers. So, if we check the mission statement through this aspect then we
can easily state that they have clearly stated what should be the organizational key values and
how to reinforce them.
Critical Success Factor
The central issue of this factor is that what do they have to be good at to succeed in this market
or industry. The mission statement outlines this as “adopting a broad view of our market, by
seeking the new opportunities in the core categories and by staying closer to all consumers than
competitors and understanding their evolving needs and focusing on constant delivery of
superior value for our brands through innovation”.
So far them critical success factor is consumer connectivity and commitment to excel and to
provide superior value to customers and products of superior quality and value.
Concern For Different Stakeholders
Mission statement describes that what are the obligations to different stakeholders i.e.
stockholders, employees, suppliers, customers and community at large. Lever Brothers Pakistan
Limited’s mission statement contains concerns about all stakeholders. First be foremost
consumers and then other stakeholders and describes it as: “Through its commitment to high
level of core and safety for its employees, its consumers and environment. Lever Brothers
Pakistan Limited will be exemplary and will participate in the dissemination of such practices in
Pakistan”.
Form And Sources Of Competitive Advantages
Mission statement of Lever Brothers Pakistan Limited completely describes the form and sources
of competitive advantage as:
“Competitive advantage will be developed by driving down relentlessly on relative cost positions
and outpacing competitor’s in operational efficiency improvements and through building strong
network of distributors and by developing a strategically focused organization and by motivating
its personnel to use its full potential of creativity and commitment and by maintaining the higher
standards of operational control”.
They are going for unique combination of cost reduction and superior value to customers so they
entirely provide the form and source of competitive advantage that what they wanted to achieve
and how they will achieve it.
Scope And Types Of Mission
Are the external dimensions covered?
Global
Mission
Organization
Mission
Market
Mission
No
Mission
Yes
No
Yes

No
Are the internal
dimensions covered?
The mission of Lever Brothers Pakistan Limited covers both the external dimension (product
market domain, critical success factors) and internal dimensions (philosophy, organization key
values, form and sources of competitive advantage, and concern for different stakeholders) so
therefore, we can say that the mission statement of Lever Brothers Pakistan Limited is a global
mission as according to the following exhibit.
Lever Brothers Pakistan Limited wants to be market leader in consumer products. It enjoys
greatest market share as compared to competitors by providing superior quality products. And
customer value is what they value. And this is reflected in mission statement. The very first 3
points are all customer focused and has provided customer value as their main focus.
As both the dimensions are extensively covered so we can say that the mission of Lever Brothers
Pakistan Limited is global mission. Now we can further go for rating of mission of Lever
Brothers Pakistan Limited on a scale of 1-10 for testing of mission, which is as under:
Testing The Mission
Does the mission statement make it clear what the organization stands for 10
and why it exists?
Does the mission statement makes it clear where we have to compete and 5
who are our customers?
Does mission statement tell us the values we should adhere to in working 8
of this organization?
Does mission statement make it clear what we have to be good at to 10
survive and prosper?
Do different parts of mission statement hand together, does it make sense? 10
Is the mission statement short enough so that people can understand it? 10
Is the mission statement well written enough so that people will remember 5
it?
Is the mission statement challenging and exiting, will it motivate us? 10
Does the mission statement tell us what we should be doing and what we 5
should not be doing?
Total 83
Criteria: 100 = Excellent
50 = Medium
00 = Poor or no mission
The total score indicates that the mission statement of Lever Brothers Pakistan Limited is
approximately near to excellent standards and gives complete help for setting priorities guide
strategic decision making, and performance evaluation or in short it fulfills the essential role i.e.
to define the business in such a manner which is important in overall strategic management.
Objectives Of Lever Brothers Pakistan Limited And Attainment Of Objectives
Objectives of Lever Brothers Pakistan Limited
1. Their main objective is to have a double-digit growth and resultant cash flows will be
utilized in improving the product quality and contents to enhance the value to customer and final
users.
2. Lever Brothers Pakistan Limited has an objective to have a responsive supply chain and
technological based processes.
3. They want to have consumer connectivity, i.e. they want to know what they eat, drink,
how they spend their lives, what are their preferences. So in this way they wan to be very close
to customer, to know their real insight and desires so they can develop new strategy for product
design and can implement their strategy in better manner i.e. avoidance of hit and trial approach
and hitting the right target with right strategy at right time in right and accurate manner.
4. They want to be cost efficient i.e. they want to reduce in their cost of production, cost of
transportation, distribution and packaging cost and finally reducing all the human cost to offer a
competitive price to customer maintain the high standards of quality.
5. To have a partnership with their suppliers to enable them to provide high quality low cost
material.
6. Have entered and will be aggressively developing new markets.
7. Be exciting to their customers with stream of innovative products.
8. To be no in all their existing markets.
Attainment Of Objectives
An objective or set of objective to be ideal must be “SMART” i.e.
1. Specific
2. Measurable
3. Attainable
4. Realistic
5. Time frame

Specific
The objective of Lever Brothers Pakistan Limited are specific not general e.g. they want to be
number one i.e. market leader in terms of market share. They want to be cost efficient it is
specific i.e. they have to reduce their costs without compromising on quality. They want to have
focused strategic thrust i.e. they are to simply reduce non-valuable slow moving product. So the
non-value added products are quite obvious with their sale figure and popularity.
Measurability
Objectives of Lever Brothers Pakistan Limited are measurable as you can easily measure the
double-digit growth with their balance sheet footings and cash flow analysis. Reduction in cost
easily be measurable from reduced price level and cost of production. Responsive supply chain
objective can easily be measured with quantity of real information available on computer
terminals of Lever Brothers Pakistan Limited.
Attainable
All of the objectives are attainable. They can be market leader e.g. they are in Lux, Blue Band,
Fair & Lovely, Lipton and Supreme. They have portfolio and cash flows to invest in their
product categories to achieve their quality standards thereby becoming market leader with their
increased share, sales and growth. Thereby getting brand loyalty among their customers.
Reliability
One has to be at the top so to be number one in its realistic objectives. Other objective e.g.
reduction in cost is realistic, you an reduce your cost by focusing on value chain. Cost of
inbound and outbound logistics.
The objective of launching innovative products is also realistic objective, it comes only from
creative ideas and implementation of these innovative ideas comes up from investment.
Time Frame
All these objectives are to be attained in some specific time period.
Attainment Of Objectives
Lever Brothers Pakistan Limited’s strategy to attain the objectives is:
1. Maximum coverage of outlets
2. Desirable sales volume
3. Display and merchandizing of products

4. Developing quality and want satisfying product.
Since every company is formed to accomplish certain objectives. There is no company, which
had no goals. So Lever Brothers Pakistan Limited also has targets before it.
These main targets and objectives are:
1. Profits
2. Consumerism
3. Welfare of consumer
The first objective of Lever Brothers Pakistan Limited is to earn maximum profit but keeping in
view the customer demands as well company deals in those products which are profitable.
If there are any indication that any item is not good from profit point of view, it will try to find
out the reasons. Will soon what steps should be taken to overcome these reasons.
Company will introduce different marketing strategies if there are problems in marketing. Here I
would like to code two very famous examples, 1st of Sunlight soap and Sunlight washing powder
of Lever Brothers Pakistan Limited.
Lever Brothers Pakistan Limited initially developed a sense of consumer to use washing powder
other than washing soap, consumer switched s a result towards Sunlight washing powder, i.e.
popular segment of washing powder and than the market share for Sunlight soap declined with
passage of time, now the consumer who realized the convenience of washing powder started
using it, but at the same time, as a result marketing strategy of Lever Brothers Pakistan Limited
awareness of people, people switched to surf and wheel i.e. premium segment detergents. Finally
due to the decrease in the market shares and sales volume of Sunlight soap and was light powder
Lever Brothers Pakistan Limited management finally decided to stop the production of this very
product i.e. it is now obsolete.
Second example is related to the change of brand name of Surf to Surf Excel. The reason behind
was introduction of competitor’s brands like Arial by P&G which had brightness features, which
caused the people to switch from Surf to Arial, Lever Brothers Pakistan Limited realized the fact
due to disturbance in sale volume of Surf and introduced new brand name “Surf Excel” with
extra brightness power.
Company also takes into consideration the welfare of the consumer. It takes into mind the taste
and habits of the customer. They pay much attention on the customers’ complaints. It also works
for the welfare and interest of Pakistan, as it is an environment friendly organization.
Strategic Management At Lever Brothers Pakistan Limited
Now we will proceed with strategies being pursued by the Lever Brothers Pakistan Limited at
different organizational level. First we will discuss the corporate level strategy.
Corporate Level Strategy
At corporate Lever Brothers Pakistan Limited is pursuing the strategy of vertical diversification
i.e. driving away from the previously adopted strategy of vertical integration i.e. now they don’t
want to perform more than one step of the processes involved in converting raw materials into a
product delivered and ready for consumption. Lever Brothers Pakistan Limited’s operations are
so complexed and involves 200 brands in Pakistan so now they wanted to reduce the operational
complexity and going for strategic alliances with their suppliers, instead of producing themselves
and going into complex operations now they want their suppliers to produce for them.
The outsourcing the production so that they don’t have to invest heavily in the production and to
reduce the capacity problems, they now going for the third party contracting to produce
themselves and now they want them to be restricted to marketing and distribution of products.
Diversification strategy is being pursued by the Lever Brothers Pakistan Limited but they mainly
go for related diversification as against unrelated diversification for conglomerates, they are
diversified into number of businesses as mentioned earlier but they are all related to consumer
products. Through vertical diversification they will be able to eliminate the operational
complexity and costs of buying and selling i.e. the transactional costs. Now they mainly wanted
to step away from operations and want to focus more on customers.
As means of diversification which are being utilized by the Lever Brothers Pakistan Limited as
all the time, been acquisition, neither joint ventures i.e. strategic alliances nor the internal
development. Here we can take the example of the acquisition of Brooke Bond and Polka for
example which have Brother acquired through a hostile takeover. And to step away from
operational complexities now they go for subcontracting with the suppliers and want them to
produce for Lever Brothers Pakistan Limited as in case of oil and ghee and soap and with the
passage of time will also be implemented in other categories as well.
Business Level Strategy
At business level Lever Brothers Pakistan Limited is adopting a very unique and interesting set
of strategies. First and foremost strategy they want to follow is the cost leadership. They wanted
to control cost as much as possible and want to reduce cost by every mean.
First cost efficiency is achieved through outsourcing operations and stop producing themselves
and go for cost efficient subcontracting.
Second they want to achieve cost efficiency through responsive and cost efficient supply chain,
want to be in touch with suppliers all the time and for that they have connected themselves with
the suppliers and to their suppliers as well to minimize cost related to forecasting now they want
better forecasting through computer networks so to get the real time information about the
inventory, stock, demand and supply. They are now reducing the inventory as well as average
carrying the inventory of only 3 days and getting closer to the concept of just in time except for
those products for which they have to brought in raw materials from far flung areas like tea and
moreover routings of logistics as well like air routing or ship routing to curtail the costs other
than cost efficiency, they have adopted the strategy of consumer connectivity i.e. want to stay
closer to consumers rather to operations and want to focus all alternations to consumers through
more research and customer profiles and demographics and wants to explore new customers and
usage of products.
To get customer connectivity they do the market research to check the trends of their customers.
The do pre-launch, post-launch research, e.g. their did before and after lunching while
antidandruff Sunsilk. The response was quite encouraging. Hence basically customer and market
research and customer feedback, free samples distribution before and after launching new
product / brand/ variant is aiming their basic strategy to implement and achieve the customer
connectivity and to fulfill their customer demand.
Here Lever Brothers Pakistan Limited has used the strategy of product development i.e. by
modifying and improving their Sunsilk it into Sunsilk antidandruff (white), they have increased
their sales. They are applying “Market and Development Strategy” as well in which by
introducing present product (Sunsilk) into a new demographic area i.e. dandruff conscious
market segment with the launch of only new variant i.e. Sunsilk antidandruff white. They have
added conditioner in it as initially the conditioner was missing in all shampoos of Sunsilk. While
it is available in competing brands of P&G.
Other than these two strategies another very important strategy is being followed by tge Lever
Brothers Pakistan Limited i.e. focusing on core brands or want to have a very focused on brand
portfolio in which they wanted to get rid of the slow moving brands like in Surf you will get
number of further variants like Surf Ultra, Surf Micro, Power Surf etc. and in Sunsilk number of
variants, Black, Green, Pink, etc. to name a few and how they have curtailed all these slow
moving brands like focusing attention to Surf Excel only and in case of Sunsilk Black and White
(antidandruff) and discarding slow moving items like Sunsilk Pink and Green etc.
So, to avoid cannibalization effect now instead of number of brands to flood in the market only
few better and improved brands, cash generating and more focused towards customers.
Operational Level Strategy

At operational level, Lever Brothers Pakistan Limited has always adopted the strategy of TQM
only never went for CPR i.e. they have not come up with a new brand in last few years. Only the
improvements or new variants in existing brands or using the same old brand name to introduce a
new product like Lifebuoy Shampoo or Fair & Lovely Soap. So it can easily be said that they
believe more in adopting changes rather generative ones or go for single loop learning only
because according to them its very very expensive to introduce a new brand name.
Strategy Evaluation
Now after outlining the objectives and discussing the strategies we can now evaluate these
strategies that whether they are in harmony with the objectives of Lever Brothers Pakistan
Limited or not. And then we will evaluate these strategies on three types of evaluation criterion.
Now as against the objectives, if we go through all the strategies being mentioned earlier, then
we can see that all strategies are true reflection of the objectives being targeted by Lever
Brothers Pakistan Limited. As an objective of consumer connectivity, responsive supply chain
getting on line computer network with suppliers and more stronger R&D department and the
objective of cost efficiency is supported by the vertical diversification in an sense that how they
are outsourcing production and going for sub contracting with their suppliers and having more
responsive and cost effective supply chain and to achieve growth more focused strategy in case
of reduction of brands, etc. So these strategies are true measures to achieve those objectives. But
other than objectives there is some other criterion which each strategy has to fulfill to be of any
worth and that criteria is as follows: its basically three types of evaluation criterion i.e.
1. Suitability
2. Acceptability
3. Feasibility
Suitability
Suitability is a broad assessment of whether the strategy addresses the circumstances in which
the organization is operating. For example, the extent to which the strategy would fit with the
future trends / changes in the environment or how the strategy might exploit the core
competencies of the organization. Now if we evaluate the strategy of Lever Brothers Pakistan
Limited on these factors that whether the strategies fit with its existing circumstances would able
to compete with the future trends like the strategy of cost reduction and focused brands and
outsourcing production and consumer connectivity and more responsive value chain. All these
strategies are not only suitable to the present condition but are prerequisite for future success as
well i.e. by outsourcing production more focus towards customer needs and wants would be
provided and it would help Lever Brothers Pakistan Limited to achieve even higher customer
satisfaction level and market share and not only that lowering the cost would not only be
beneficial for Lever Brothers Pakistan Limited but for consumers as well i.e. now they would
receive better quality at relatively lower cost and Lever Brothers Pakistan Limited would be able
to provide superior products quality and value to customers. Now a days, success lies at cost
reduction and superior quality which the Lever Brothers Pakistan Limited has successfully opted
for. Other than this, next factor is that whether strategy can exploit the core competencies of the
organization or not. The answer is very simple that by reducing operational complexity and
brands complexity more resources would be available to focus more on the quality of the
products as compared to the previous situation. So on the basis of these factors it can easily be
said that the strategies being implemented are very suitable to Lever Brothers Pakistan Limited.
Acceptability
Acceptability of strategy is concerned with the expected performance outcomes such as the
returns and risk if the strategies are implemented and the extent to which it would be in line with
the expectations of the stakeholders.
In case of returns, its pretty much assured that returns would definitely be enhanced when the
cost would decrease and strategies would result in better quality products. But the elements of
risk is there which could be quite significant in the case of subcontracting, whether the suppliers
would be able to meet the quality standards or not. And as we inquired it from the branch
manager of Lever Brothers Pakistan Limited, he said, that we have very strong quality control
system and moreover we are entering into strategic partnership with our suppliers so to maintain
quality is in their favor too and they would be beneficial from the better quality as well and it
would not increase the cost in case of maintaining control over the suppliers as its partnership
more as compared to only placing and receiving order we will work for mutual benefits and
complete harmony which we already have.
As far as the stakeholders are concerned first and foremost effect would be on the employees as
the production is out-sourced so they would definitely feared the unemployment but they said
that we will arrange it with our suppliers and will try to accommodate them as much as possible
and in case of shareholders, they would receive benefits of this strategy and would receive higher
returns on their investments and they would be able to maximize their earnings and in other
stakeholders suppliers would now play more important role by entering into strategic partnership
with the organization. Consumers receive more attention now and would get more satisfaction as
more and more products would be developed on the basis of the targets being set by the
consumers. So after analyzing these factors it can easily be said that strategies being pursued by
Lever Brothers Pakistan Limited has higher returns and lesser risks and more benevolent to
stakeholders as well.
Feasibility
Feasibility is concerned with whether the strategy could be made to work in practice or not. And
its more concerned with the assessment of practicalities of resourcing and strategic capabilities
i.e. quantitative assessment, which is beyond the scope of this report, so, as an overview, all
strategies seems feasible and some of them has already been implemented as well like the
reduction in brands etc. So assessing;
Is this a good strategy?
Is the positioning viable?
Does it improve value?
Does it exploits core competencies?
Will it lead to good financial performance?
All these factors seems work in favor of Lever Brothers Pakistan Limited after analyzing the
strategies of Lever Brothers Pakistan Limited.
Structural Analysis
Organizational structure and management of Lever Brothers Pakistan Limited
Lever Brothers Pakistan Limited restructure the organization after the merger with Brooke Bond
Pakistan Limited. The chairman is the executive officer of Lever Brothers Pakistan Limited. He
leads the seven members management committee, which is the top of decision making. The
management is responsible for corporate strategy of Lever Brothers Pakistan Limited and for
initiating policies and overall planning as well as their general management duties. Management
committee members are each responsible for specific function. Reporting to the management
committee members are departmental heads who are responsible for advising the management
committee for planning and implementation of policies for ensuring that targets are reached. The
committee includes:
Mr. Lain Strachan Sangster (Chairman & Chief Executive)
Mr. Mashkoor Alam (Vice Chairman)
Mr. Mujib-ur-Rehman (Technical & Logistics Director)
Mr. Perwaiz Hassan Khan (Director Personnel)
Mr. J. A. Lee (Director Sales)
Mr. A. D. Bandaranayake (Director Commercial)
Mr. N. I. Khockhar (Business Unit manager ODF)
Mr. Clive David Welland (Director Food Business)
Board Of Directors
The board of directors control the whole operation of the organization it includes the following
personalities:
Mr. Lain Strachan Sangster
Mr. Syed Babar Ali
Mr. Fateh Ali W. Vellani
Mr. Mujib-ur-Rehman
Mr. Perwaiz Hassan Khan

Mr. J. A. Lee
Mr. Clive David Welland
Mr. Dr. A. D. Bandaranayake
Mr. S. N. Patel
Mr. M. Asadullah Sheikh
Mr. Abdul GhaniBachani
Mr. Azim Azmat Osman
As we can notice that the management of the company is composed of a mix of international and
Pakistanis business professionalists. The management of the company includes Syed Babar Ali
as director, who is also involved in many other organizations i.e. Packages and other industries.
It includes in its board meetings one member from each province i.e. Punjab, Sindh, NWFP and
Baluchistan. The top management of the company is fully professional specially marketing
department which is headed by Mr. Jeff Lee who have world wide experience in this field.
Hierarchy
Branch structure
All over Pakistan 6 branches of Lever Brothers Pakistan Limited are working. Its head office is
located in Karachi at Avari Towers. The chairman and management committee as well as the
most of the department heads have their offices there.
Structural Analysis
Lever Brothers Pakistan Limited has a functional structure i.e. its based on the primary tasks that
have to be carried out such as production, accounting, finance, marketing, etc. and then there is
separate department for each function and these functions are carried out by directors and they
are assisted by managers of that very particular function like marketing manager and those
managers have divided each product category into home and fabric care category, spread and
cooking category, etc. And these categories are headed by one product manager and assistant
manager.
We cannot say that the structure of Lever Brothers Pakistan Limited is an ideal or exact
functional structure as in functional structure CEO is in direct supervision of each primary
activity but Lever Brothers Pakistan Limited have also included layers of vice chairman and very
important management committee as described earlier. This structure maximizes the basic
advantage of functional structure that the CEO is in charge and well informed about each
primary activity and minimizes the basic disadvantage of functional structure that an
organization become larger or more diverse, then CEO, senior management can be over
burdened with everyday operational issues, which is true in the case of Lever Brothers Pakistan
Limited and to offset this disadvantage they have created additional layer of management
committee which is responsible of coordination between CEO and chairman, vice chairman, and
the functional directors to take a strategic perspective on problems. So, Lever Brothers Pakistan
Limited has an ideal structure to oversee the whole organization and to control the operations of
the organization which in turn create problems as of very slow decision making process and very
centralized too.
To continue with structure analysis discussion, now let’s turn our discussion to five basic forces,
which determines an organization’s structure i.e.
1. Threat of new entrants
2. Threat of substitutes
3. Buyer power
4. Supplier power
5. Competitive rivalry.

Threat Of New Entrants
This potential threat always exist in every organization. But an organization like Lever Brothers
Pakistan Limited this threat is very minimum because you need a giant to compete with another
giant like Lever Brothers Pakistan Limited and in a relatively small market like Pakistan, they
are enjoying the highest market shares in most of their product categories like ghee, oil, soaps,
spread, fabric care, etc. so, they face no threat of any new entrant.
Threat Of Substitutes
Same as in the case of new entrant no as such threat they are facing.
Buyer Power
To determine buyer power one condition is always necessary i.e. the buyers are few so they exert
power over an organization. But this condition is not present in case of Lever Brothers Pakistan
Limited, they have very diversified product categories and within each category they have brands
targeted at almost each and every segment of the market so they don’t face the buyers power as
such but still “customer is king” and they do have to pay a lot of attention to buyers being a
consumer product company.
Supplier Power
Suppliers don’t exert any power over Lever Brothers Pakistan Limited rather Lever Brothers
Pakistan Limited provides buyer’s power in this case, no body would like to loose a buyer like
Lever Brothers Pakistan Limited so, they don’t face any significant supplier power.
Competitive Rivalry
Competition is intense but not cut throat competition and all of them avoid frontal assault or
direct attack. So, situation of healthy competition exist. Competitive rivalry would be discussed
more in detail in the section “competitor analysis”.
Structure Types In Multinational Companies
The growth in the size and importance of multinational business warrants some special mention,
since the structural implications can be significant. In deciding the structure of multinational
critical aspect or factor or issue is the extent to which local independence and responsiveness
take precedence over global coordination. On the basis of these factors there are generally four
types of multinational structures, such as:

International
Decisions
Global Product
Companies
International
Subsidiaries
Transnational
Corporations
Global Coordination
Low
Low
High
High
Local independence & responsiveness
In all the four structures, Unilever has assumed the structure of transnational corporations in
which they have developed structure, which attempts to combine the local responsiveness of the
international subsidiary with the advantages available from coordination found in global product
companies. The key is that they wanted to create an integrated network of interdependent
resources and competencies, in which:
1. Each national unit operates independently, but is a source of ideas and capabilities for the
whole corporation.
2. The corporate center manages a global network by first establishing the role of each
subsidiary, then sustaining the culture and system to make the network operates efficiently or in
a way we can say that they have combined global and multi-domestic strategy, staying
independent and responsive towards local or national market and yet not loosing touch or
coordination with the worldwide network and parent company.
There are interesting differences between countries in the way that global strategy tend to
develop. Companies, which originated in many European countries such as Unilever or Nestle
needed to internationalize their activities at an early stage, owing to the small size of their home
markets. This took the firm of “international subsidiaries” but now their challenge is to reduce
the local autonomy and increase global coordination. But in contrast US companies with a large
domestic market tended to favor “international divisions” and now they face two challenges:
1. The issue of local autonomy.
2. Barriers between their separate strategic views of the domestic and international business.
Unilever has well coped with these challenges by adopting the transnational corporation
structure.
Value Chain Analysis Of Lever Brothers Pakistan Limited
This method for accessing strengths and weaknesses divides the business into number of linked
activities that may each produce value for the customer. “Customer value” is a function of
factors that usually fall into one of three broad categories those that differentiate the product,
those that lower its costs, or those that allow the organization to respond to customer needs more
quickly.
The value chain frame work helps analyze the contribution of individual activities in a business
to the overall level of customer value the firm produces and ultimately to its financial
performance. If each part of the business produces value, the firm should be able to change more
and/or incur lower costs either of which will lead to higher profit margins.
The value chain analysis frame work of Lever Brothers Pakistan Limited appears as follows and
is basically seeking cost leadership as their source competitive advantage.
Explanation Of Value Chain
Lever Brothers Pakistan Limited is basically focusing on cost leadership in branded shampoos
market. For their raw material procurement they have opted “outsourcing” strategy. Many
contents of shampoos are procured from Europe, America, Far East and some of raw material is
locally available it increases the lead-time. Lever Brothers Pakistan Limited handles this
situation with “near to JIT system” i.e. called Automatic Replenishment System. Through this
system the suppliers of raw material are well connected through computer terminal, the detail
and current level of all raw materials, inventory level is reflected on supplier terminal and on
specific interval they ship the raw material automatically which reduces time for repeated
requisition.
P R I M A R Y A C T I V I T I E S
1. MIS provides necessary data in real-time
2. Top management team has knowledge of inventory
Training production employees reduces waste
Low employee turnover reduces cost
R&D in product development
1. Global purchasing deliveries lowers their cost of raw material
2. Outsourcing of local raw material from local supplier reduces cost

1. LBPL has long term win-win relationships with suppliers passing through cost saving.
2. Due to high lead-time and value chain is long for inbound logistics. Automatic replenishment system solves this problem.
1. Experiences effect has raised efficiency due to very old operations without any major turn around in production.
2. Economies of scale in plant of RYK reduces cost of manufacturing.
3. Process of shampoo is reliable and no fluctuation.
1. Shipping of final product via truck to 6 depots on their demand vehicle and transportation cost is born y depots which again gives a cost cutting edge.
2. Strong distribution network.
1. Poor marketing advertisement.
2. No visits to dealers retailers and wholesalers.
3. No personal or formal relationship of brand manager of LBPL with retailers.
Firm infrastructure

HRM
Technical Development
Procurement
Out sourcing of RM has reduce the cost they occurred supposed to make anything.
Su
pp
or
ti
ng
Ac
ti
vi
ti
es
Inbound Logistics
Operations
Outbound Logistics
Marketing and Services

After releasing the material from customs the ingredients are shipped to Rahim Yar Khan Plant.
These ingredients are processed (both local and imported) in the machinery specifically designed
for this purpose. Normally for sache packs 8 lanes are processed at a time in one lot.
8 lanes = 8 reels
1 r eel = 1 ton or 1000 kg of shampoo in quantity

It’s cutting and packaging is completed as final step. Packaging material is typically not
available around factory area. Lever Brothers Pakistan Limited has to purchase all packaging
material from Packages Limited Lahore.
Hence both primary and secondary packaging material comes from Packages Limited Lahore.
Primary packaging material includes bottles and sache packaging while that of secondary
material includes the cartons. After packaging of shampoo bottles and sache passes through
distributor to retailer.
Outbound logistics start from here on demand of 6 depots of Lever Brothers Pakistan Limited,
the lot is packed and delivered to the wholesaler.
Now we will discuss that how each individual activity of value chain (both primary and
supporting activity contributes towards the maximization of profits to deliver value to final
customer.
Supportive Activities
Firm Infrastructure
Lever Brothers Pakistan Limited has a well established infrastructure. They have knowledgeable
expert top management and middle management who have expertise in the consumer goods
fields. Moreover they have some arrangements with hair exports to furnish their product
knowledge.
They have a very good and effective management information system, which not only shares the
information within the organization i.e. Lever Brothers Pakistan Limited but also with their
suppliers and wholesalers as well. This saves their time and gives them real-time information.
Marketing research department is also sharing consumer research data to improve their standards
according to customer demand and trends e.g. conditioner was missing in Sunsilk Research and
Development searched out and found that competitors are providing conditioner also in shampoo
which Sunsilk and Lifebuoy shampoo didn’t have in them. But this has been done very late and
implementation is also very slow. Production people (manager) upon sharing this information
from marketing research department has recently launched the antidandruff white Sunsilk with
conditioner which has shown a very successful performance in market and has improved the
sales of Sunsilk of Lever Brothers Pakistan Limited especially of this white variant.
One important thing to be noticed is that though they have integrated information sharing
network but the implementation on the needed strategy by production people is seeming to be
very late as their decisions are centralized and are in hands of parent company and the
implementation is also very slow. This problem of absence of conditioner was identified by
marketing research people very earlier and was communicated to production department as well
but a implication and action has been taken after a very long time when problems of sales
become visible. We can say this is due to long term approach to strategy formation and
implementation of Lever Brothers Pakistan Limited. Hence infrastructure contributes as a
supporting activity for providing value to the customers and on some aspects e.g. centralized
decision making and late implementation it proves to be a weak support.
Human Resource Management
Human resource management is the one of the most important supporting pillar of the value
chain and it is useful for its analysis. A firm’s higher technological and financial resources
cannot do any thing for the betterment of company unless these two and rest of the resources are
handled by the good appropriate human resources. We can surely say that Lever Brothers
Pakistan Limited has a skilled, qualified, expert, communicative management and officers staff.
They have both formal and informal network of communication in their organization to complete
the tasks and target efficiently and effectively. Hence we can say that there is healthy type of
network among Lever Brothers Pakistan Limited staff’s department.
Lever Brothers Pakistan Limited offers the training programmes and arranges seminars for
further skill development and career development purposes of its brand managers, marketing
managers, research and development managers, and other staff, which enhances their efficiency
to support the primary activities of value chain of shampoo product line of Lever Brothers
Pakistan Limited.
Due to necessary training, healthy pay scales, balanced empowerment, informal and formal
combination of communication network the job satisfaction of each and every employee is very
high. Which reduces the employees turnover to minimal. All of them contribute a lot and
positively for the support of value chain primary activities i.e. procurement manager putting his
efforts for the purchase of high and right quality making inbound logistics.
Operations / brand manager is focusing ensuring the relationship of the shampoo production.
Sales and distribution manager of Lever Brothers Pakistan Limited is ensuring the complete
coverage of retail outlets of Pakistan. He ensures that all variants and sache and shampoos of
Lever Brothers Pakistan Limited are available on each shopping outlet of Pakistan i.e. from large
shopping stores to small shop covering both rural and urban areas.
But here we would like to add that one thing is missing as a support of value chain i.e. good
relations of Lever Brothers Pakistan Limited marketing and sales manager with their retailer and
distributors. Due to this retailer give preference to the competitor’s brands of shampoos e.g.
P&G. Hence Lever Brothers Pakistan Limited is providing training and job satisfaction to its
human resources in turn there is low employee turnover and they support value chain except
good relationship and incentive to retailers which is of primary importance.
Technological Development
By technological development as a supportive activity we mean that how much organization is

bringing further improvements in its products and product development. Lever Brothers Pakistan
Limited mainly through its R&D department has recently brought a major improvement in its
Sunsilk shampoo i.e. launch of antidandruff white shampoo. Hence this very element has also
been supportive in value chain of Sunsilk and Lifebuoy shampoo. But still Lever Brothers
Pakistan Limited are laggards in bringing this improvement.
Procurement
Procurement especially of raw material contents and packaging material is critical to the product
and ultimately to the organization’s success. Lever Brothers Pakistan Limited purchases its most
of the contents of shampoo from foreign countries like America, Europe and Far East. The
procurement system of Lever Brothers Pakistan Limited is mostly globally centralized and is
long term as well. For purchase of local raw material Lever Brothers Pakistan Limited is
outsourcing with its suppliers. They have get very good long term relationship with their
suppliers of local raw material as well. Hence they get the quantity discounts and manage lead
time as well.
Primary Activities Of Value Chain Of Lever Brothers Pakistan Limited
Inbound Logistics Of Value Chain Of Lever Brothers Pakistan Limited
1. Lever Brothers Pakistan Limited is focusing on the outsourcing for the purchase of basic
inputs with their suppliers. Instead of backward integration they believe in outsourcing which
reduces their cost.
2. Lever Brothers Pakistan Limited faces high lead-time for the global purchase of its
imported raw materials but automatic replenishment system has solved this problem. Lever
Brothers Pakistan Limited is all the time connected via its management information system with
their suppliers.
3. Quality and reliability of raw material for shampoo product line is checked and
reconceived by the Lever Brothers Pakistan Limited at fixed intervals as they have centralized
buying system.
Operations
1. Lever Brothers Pakistan Limited has been in shampoo product line since 1984. Within
these 16 years they have got experience. Experience effect has raised efficiency, they have very
old operations and product method as there has been no major turn around in production methods
of its shampoo.
2. Lever Brothers Pakistan Limited has a factory at Rahim Yar Khan in which they produce
different products array with shampoo, capacity of this plant has been designed in such a way
that in current demand they get the economies of scale very easily which reduces cost of
manufacturing of Sunsilk and Lifebuoy on this basis they offer lower prices as compared to
P&G.
3. Since Lever Brothers Pakistan Limited’s buying is centralized same is the case with
production and operations methods as well. Rahim Yar Khan has to follow the predefined
production process given by parent head office of Lever Brothers Pakistan Limited. Hence
production process of both Sunsilk and Lifebuoy is reliable i.e. there is no fluctuation. This
element gives reliability to final consumer.
Out Bound Logistics
1. Final product of shampoo of Lever Brothers Pakistan Limited is shipped to its 6 depots via
truck on the demand of these depots. Whole Sellers have to add value themselves. They bear this
cost of transportation. Hence Lever Brothers Pakistan Limited has suppliers and Whole Sellers
power over its wholesalers and gives cost cutting edge.
2. Lever Brothers Pakistan Limited covers all the retail and shopping outlets of Pakistan.
Lever Brothers Pakistan Limited ensures availability and visibility of its shampoos as each and
every large store, medium size stores, small shops. 100% coverage of outlet is the major strength
of Lever Brothers Pakistan Limited.
Marketing And Sales
1. Poor Marketing
Lever Brothers Pakistan Limited has very poor marketing of their product. They concentrate only
on “Nabila” as their celebrity. They mainly focus on females for Sunsilk and ignore the rest
potential market; males and kids. In case of Lifebuoy they focus only on males and ignore
females and kids which reduces their market share as compared to P&G’s shampoo Penteane,
Head & Shoulder.
2. Lever Brothers Pakistan Limited has no strategy to make good relations with retailers. This
element destroys their repute in retailer class they do prefer P&G and competitor’s shampoo to
recommend it to buy and they give more shelf space to P&G’s shampoos as compared to Lever
Brothers Pakistan Limited’s Sunsilk and Lifebuoy.
3. Lever Brothers Pakistan Limited has never offered any major incentive, discount or prize
scheme to retailers on its shampoos which the retailers often demand. Retailers think that prize
incentives with product or any other prize scheme offered to retailers or consumer etc enhance
sales. Lever Brothers Pakistan Limited has never paid any head to it.
Services
Lever Brothers Pakistan Limited has good “service” in terms they offer free samples for the
relaunch of Sunsilk, which helps as a primary activity.
A Transition In Value Chain
Lever Brothers Pakistan Limited is now focusing as extended value chain i.e. they are
outsourcing with their suppliers and subcontracting with them to ensure reliability of raw
material.
Before this supplier’s outsourcing they already have connected with their customers with their
strong R&D Department. But one of thing in which they lag’s in they have centralized long term
strategy, formulated on system and implementation of results of R&D Department research
based on customer connection in very late.
Hence all the above individual activities (i.e. primary and supportive activities) contribute to
enhance customer values and ultimately improves firm’s financial performance.
Lever Brothers Pakistan Limited becomes able to incur lower costs which leads to higher profit
margins.
SWOT Analysis
The SWOT analysis of Lever Brothers Pakistan Limited are as follows:
Strengths
1. Unilever PLC England the parent company all over the world gives assistance to Lever
Brothers Pakistan Limited so Lever Brothers Pakistan Limited enjoys a high level of support
from Unilever.
2. Another major source of strength for Lever Brothers Pakistan Limited is its product
targeting all income groups. Lever Brothers Pakistan Limited is providing products total income
groups i.e. providing quality with economy as well e.g. Wheel washing powder, Breeze beauty
soap, Taza Chai, etc.
3. Lever Brothers Pakistan Limited is the oldest company operating in Pakistan which gives
him a commanding position is Pakistan to certain extent.
4. Lever Brothers Pakistan Limited enjoys the services of highly professional management in
the area of sales, marketing, technical and production.
5. Lever Brothers Pakistan Limited has such a strong goodwill in the market that some of its
brand names has become the generic names for those products such as Surf for detergents and
Dalda for ghee.
6. Lever Brothers Pakistan Limited is the largest producer of consumer products in Pakistan
and has strong brands in every field such as Close Up, Dalda, Surf, Lifebuoy, Lux, etc.
7. Lever Brothers Pakistan Limited having the biggest shares in tea market having the biggest
brand Lipton and Brooke Bond.
8. They are market leader in ice cream business of Polka i.e. horizontal integration with
hostile takeover they have captured their competitors thereby reducing competition.
9. The company has the assets of more than 5 billion. So, it can invest further product
innovation and development.
10. It has the largest and efficient distribution network then any its competition.
11. Lever Brothers Pakistan Limited is the only company in Pakistan which has its own corner
research department.
12. The company is very strong financially.

13. The company is working for almost 50 years in Pakistan. That’s why it has many
advantages. Which other do not have. They have know how of the market. They understand the
market very well. Similarly during this period they have developed a very organized distribution
network all over the country. Another advantage is there wide range of products, which give
them a position to monopolize the retailer’s shop. It is estimated that over more than 30% of a
retailer’s shop items are by this single company.
Weaknesses
1. Lever Brothers Pakistan Limited unable to capture shampoo and toothpaste market i.e. low
market share.
2. New variants of the company were not able to sustain in the market such as harmony.
3. Lever Brothers Pakistan Limited is relatively week in their innovation department i.e.
being first to introduce Surf but after that has no major innovation.
4. Emphasizing only few products while ignoring others which could give them potential
market shares e.g. beverages section.
5. Lever Brothers Pakistan Limited go for long term strategies for all their product categories
which prove to be a weakness with change in the circumstances and taste, trends of people
Opportunities
1. With the help of further advertising their non competing brands can increase their market
share i.e. market penetration strategy. People will definitely go for these products as Lever
Brothers Pakistan Limited has a sound image in people’s mind. Whatever the brand is being sold
is mostly on the basis of brand loyalty.
2. They have capital to invest they can explore new product categories e.g. in food and
beverages they can develop new products like Rafhan has launched custard, jelly, kheer mix,
rasmalai mix, etc. through it again will broaden their product categories and will make their
operations complex but this could be avoided with “sub contracting” i.e. strategic partnership
with their suppliers. These products can prove a “cash cows” as customer in Pakistan always
welcome food items especially they will welcome due to brand image of Blue Band and Dalda
ghee in food category and due to Lipton and Supreme in beverages category.
3. Lever Brothers Pakistan Limited relaunches most of its products with same name or little
change in the name e.g. Surf Micro to Surf Extra, ,then to Surf Ultra and then to Surf Excel, with
little change of name and little changes in its formula. If Lever Brothers Pakistan Limited launch
its products with in prevailing product categories, with entirely new name and new formula then
they can capture new market shares as it will gain capture the attention of its target market more
as compared to existing one. Though apparently it will increase the advertising cost but it will be
compensated with exciting sales as you have to advertise more even in case of relaunch of
products with little change in names and formulas. So why not to go for new name and new
formula as it will increase your brand portfolio, it can satisfy the needs of customers which were
unsatisfied with the previous brands, its names, its formula, e.g. people used to say Surf fades the
clothes, they changed formula and not name only gave it a suffix of Excel i.e. Surf Excel now the
people who developed this perception that it fades the color, remain reluctant for long time even
after its relaunch and heavy advertisement.
Threats
1. P&G is giving very serious threats to Lever Brothers Pakistan Limited in the business of
detergents and personal wash and shampoos.
2. No of local companies producing detergents and market them at very low prices which is a
threat to Surf.
3. In the case of ghee and oil business Habib is giving very tough competition to Lever
Brothers Pakistan Limited by introducing its variety of products.
4. Treat is promoting Bodyguard very much and trying to produce a competition in the
carbolic soap market.
5. Increasing inflation in the country, persistently reducing the purchasing power of the
people and dropping people from high price products to low price products e.g. the detergents
and providing fuel to the expansion of unorganized sector.
6. Increased import duties are also adding to the prices of the products and in Pakistan which
is a very price for all the firms not only Lever Brothers Pakistan Limited who are using imported
raw material.
7. Threats of new entrants are also present. As ICI is a potential threat in detergents industry,
because they are already involved in chemical business and providing raw material for detergent
production to different manufacturing companies like Lever Brothers Pakistan Limited and
Colgate Palmolive.
PEST Analysis
PEST analysis is used to assess that what environmental factors affecting different organization
and which of them are more important and how they affect the organization. It is indicator of
political, economical, social and technological influences on organization.
Political & Legal Factors
As far as the Lever Brothers Pakistan Limited concerns according to them that political
instability have do affect but not particularly Lever Brothers Pakistan Limited same as it affects
any other organization around and specially they are in consumer products business which never
make them out of business.
In case of legal factors, any trade policy or import duties is not affecting particularly Lever
Brothers Pakistan Limited. In Pakistan right now following liberalization policy under SAP by
IMF made which they have to waive off all restrictions and moreover due to huge investment by
Lever Brothers Pakistan Limited no government can afford to create hurdles in the way of an
organization like Lever Brothers Pakistan Limited.
And they don’t have to go for only lobbying or what so ever as not action of Pakistan
government has affected them adversely as such.
Economical Factors
Economical factors affect Lever Brothers Pakistan Limited in the same way as it affect any other
organization like current economic situation in Pakistan and inflation has reduced consumer’s
disposable income too, which in turn has reduced the purchasing power of consumer but affect is
same for every organization and according to them Lever Brothers Pakistan Limited have edge
that they have targeted all possible segments through their vast product category i.e. the width
and length too. So one way or other they find way to cover it up.
Capital Markets
In other economic factors like “interest rates” and “inflation” has affected the borrowing ability
of organization but Lever Brothers Pakistan Limited stayed unaffected as a company having
business in billions and when in need of financing no single bank can fulfill the need, they have
to make a consortium to finance Lever Brothers Pakistan Limited and with very good credit
standing and very low risk definitely they get the lowest or justified interest rate as well.
Socio-Cultural Factors
In socio-cultural factors, factors like lifestyle changes and level of education affects an
organization. In case of change in lifestyle, the world has converted into global town now and
people have readily access to every sort of information and they are becoming more quality
conscious. Now more concerned towards environmental issues now and demand more social
responsibility on the part of organizations now. To cope up with all these factors now Lever
Brothers Pakistan Limited which always maintained the quality standards needs to work towards
other social factors like social responsibility and environmental concerns like P&G did in its
Arial campaign and image of a society responsible organization.
Technological Factors
In technological factors comes R&D first and foremost that how much an organization spending
in terms of product improvement or development of new products or improvement in production
process or in the raw material etc. and what is the trend in the industry as Pakistan is not that big
and not very much innovation seeking as the other developed countries. Yet they keep on finding
new ways of doing things and new things as well they continuously launched variants in brands
etc. and moreover in the market like Pakistan in product categories of consumer products “rates
of obsolescence” is not very high rather very slow so no great pressure to launch new products,.
Other than the factors smuggling affects Lever Brothers Pakistan Limited’s sales very
negatively. This issue would be discussed more in detail in the problem statement.
Problem Statement
Our problem statement is regarding the shampoo segment of Lever Brothers Pakistan Limited.
They have managed such a deep and broad product category and manage to do so well that some
of their brand name has become the generic names for that particular product but this is not the
story with Sunsilk and recently launched Lifebuoy Shampoo. Our problem statement is that what
are the causes, which kept Lever Brothers Pakistan Limited away from market leader position in
shampoo market.
Problems
Whenever we look for the problems of company its problems can be bifurcated into two broader
categories.
1. Internal problems
2. External problems
Internal problems
These problems are normally faced by organization due to elements, factors and weaknesses
which are present inside or which are existing internally in the organization e.g. problems due to
organizational policies, culture, structure, information sharing networks, organizational strategies
or even employees, they can be positive force and the problem child as a source of internal
problem as well.
1. Company’s management rely on long term strategies which they receive ready made from
their parent company, head office as a modus operandi. And hence a strategy or a policy
approval, formulated and implemented 50 years back becomes obsolete and discard in prevailing
scenario and changing environment e.g. in their advertising campaigns of Sunsilk shampoo they
only use “Nabila” as their celebrity (Hair Expert) and they have never tried any other sports or
film media celebrity for the promotion of their product which their competitors use extensively.
Here in this field they lag behind due to their long term strategy even in field of advertising given
by their parent head office.
Hence being an influenciable organization they exhibit bureaucratic management style they want
to maintain their status quo before these environmental changes like advertising trend.
2. Offices and branches of Lever Brothers Pakistan Limited are normally placed in domestic
setup especially Multan branch, since it is a marketing organization, its office outlook and
location must be in professional and well to do area which will contribute in proper functionality
of branch and its employees as well. This severe problem is being faced by Multan branch of
Lever Brothers Pakistan Limited as well.
3. Management team of Lever Brothers Pakistan Limited normally arrange excessive
operational meeting, they have less emphasis on the strategy implementation part as compared to
strategy formulation and planning.
4. All the decisions regarding product planning, development, distribution and even targets of
the branches are centralized and are in hands of central sales office of Lever Brothers Pakistan
Limited. They don’t believe in MBO (Management by objectives). Branches are given inflexible
targets of sales – though data on these branch managers negotiate this figure but it takes too long.
5. Due to heavy capital investment in their brands Lever Brothers Pakistan Limited is unable
to observe their slow moving brands which create a cost burden.
6. Since removing old/discarded brand is very expensive due to expensive installed
machinery, technology and capital investment, launching new brand is also very expensive for
Lever Brothers Pakistan Limited due to the same reason. As to launch a new brand complete
research and development setup is required which is inflexible and can not be re-utilized for
another brand along with its consumer market is heavily flooded with products, there is very low
probability that market will absorb new brands.
7. Whenever Lever Brothers Pakistan Limited launch any product they first launch it in India
if product proves a “big success” they try it in Pakistan which is not a good strategy due to
cultural difference and religious differences.
8. Lever Brothers Pakistan Limited has very poor relationships with their dealers and
retailers. They are far away form their competitors like P&G, in case of retailer relationship.
Their brand manager makes very rare visits to the retailers to know their problems, very little
discounts are offered by Lever Brothers Pakistan Limited to their retailers. No prize scheme and
incentive is given to dealers, retailers, wholesalers of Lever Brothers Pakistan Limited. Even
Lever Brothers Pakistan Limited brand manager never bargain on the proper and prominent shelf
space of their shampoos (Sunsilk and Lifebuoy).
9. Lever Brothers Pakistan Limited has not been able to place any check on its smuggling
shampoos into Pakistan e.g. Indonesian Sunsilk is made according to the demographic of
Indonesia, when it will be used in Pakistan it will damage the hair of people, which deteriorate
the brand image. Which create problem on local sales of Pakistan.
10. Employment insecurities in Lever Brothers Pakistan Limited also contribute negatively
towards the performance of branch operations. All branch managers, brand managers and
operation are transferred within branches of Lever Brothers Pakistan Limited allover Pakistan.
This create an uncertainty among management team, new managers takes much time to settle in
new branch and to understand new setup of branch and new dealers network. This affects the
branch operations and performance.
External problems
Lever Brothers Pakistan Limited is not facing any prominent external problem as already
analyzed in PEST analysis.
Introduction Of Sunsilk And Lifebuoy
Sunsilk Shampoo
Lever Brothers Pakistan Limited stepped into shampoo business in 1984 with Sunsilk initially
with only two variants:
1. Sunsilk (egg shampoo)
2. Sunsilk (shikaki shampoo)
This was the first branded shampoo in Pakistani market then they launched another shampoo
named as “Clinic” in 1985. For the reason that no other competitor was there in the market their
sales figures was high in start, but as shampoo market started to develop and imported shampoo
and other competitors entered into the market their sales started declining so they re-launched it
as “Clinic Plus”. Due to their poor marketing in 90s Clinic Plus faced big failure. The sales of
Clinic Plus was not up to the expectations of the company and they abandoned the production of
Clinic Plus. They have recently launched the brand with the new name and new formula (as they
claim) named as “Clinic All Clear” dandruff shampoo.
Company re-launched Sunsilk shampoo with following five variants in 1998:
Sunsilk Black for dull hair
Sunsilk Yellow for normal hair
Sunsilk Green for thin hair
Sunsilk Pink for dry hair
Sunsilk Orange for oily hair

They promoted these 5 variants heavily but this could not get them their market share back due
to entry of strong competitors like P&G (Pentene, Pert Plus, Rejoice, Head & Shoulder), Bio
Amla & other imported shampoos as these shampoos got more shelf space in the retail outlets.
Lever Brothers Pakistan Limited again re-launched the Sunsilk at the end of 1999 with 12
different variants with new name of fruitamines. Now the focus was on different kind of hair i.e.
how many variation of Sunsilk are there with aspect of ingredients and contents. Then they
reduced their frutamines Sunsilk to six variants. Now with launch of White Sunsilk they have
seven variants of Sunsilk.
Lifebuoy Shampoo
Lever Brothers Pakistan Limited also tried to encash its another very popular brand name
Lifebuoy soap which was popular among lower income segment. They launched Lifebuoy
shampoo using this brand name in 1998. Initially it was successful according to the retailers
every one was asking about it and asked for retailers opinion as well. But it flopped badly
because it was mainly targeted towards lower and middle income segment and Lever Brothers
Pakistan Limited wanted this segment to switch from bath soap to shampoo and wanted to
develop shampoo market in this segment as well. But this class did not switched to Lifebuoy
shampoo because they were in habit of using soap for washing their hair, more over they did not
find any thing unique and new about the shampoo. Other than being liquid. So, they again
returned to Lifebuoy soap.
SWOT Analysis Of Shampoo Product Line
Strengths
1. Lever Brothers Pakistan Limited has a good name as a market leader in consumer products
this image always help its shampoo product line. Customer are brand loyal and of shampoo
product line.
2. People have favorable opinions about Sunsilk that its contents do not include any harmful
chemicals which could damage their hair.
3. First trial image of user are positive and they are generally brand loyal.
4. Sunsilk and Lifebuoy shampoos users believe that it is economical. Due to cost leadership
strategy of Lever Brothers Pakistan Limited in shampoo product line.
5. They have recently launched antidandruff shampoo (white variant) with additional feature
of conditioner which has been highly valued by the customers. It is competing successfully with
P&G’s shampoos which were already having conditioner in them.
Weaknesses
1. Packaging of Sunsilk and Lifebuoy shampoo is the biggest weaknesses of Lever Brothers
Pakistan Limited. Retailers complaint that one leaked bottle of Sunsilk spoils the whole lot. But
Lever Brothers Pakistan Limited do not pay any head to it.
2. Advertisement of Sunsilk does not promote the product very well rather its celebrity like
“Nabila” is promoted. They don’t switch their celebrity as they have to follow long term
promotion and advertising designed by their head office as Elida (France) has always used
beauty expert as their celebrity.
3. They focus on only females in their advertisement and they have ignored their bigger
segment of males.
4. Lever Brothers Pakistan Limited does not pay any attention on the incentives and
discounts given to the distributors and retailers.
5. Sales manager, brand manager and sales representatives do not conduct any personal visits
to the retail stores which gives them dissatisfaction.
6. Lever Brothers Pakistan Limited does not pay any attention to the shelf space given to the
Sunsilk in the retail stores. The store manager of “Range” told us that the brand manager of
Lever Brothers has never been visited their store and they even never bothered about their shelf
space.
7. Due to very huge number of variants in Sunsilk, Lever Brothers Pakistan Limited fined it
very difficult to focus on particular variants and it created confusion among customers as well
and increased complexity of operations to a large extent and created cannibalization effect.
Though recently they have reduced their variants of Sunsilk from 12 to 6 and then launched
another one Sunsilk white. Still it needs further reduction.
Opportunities
1. Due strong company image and strong distribution network if they promote their products
through incentives, bonuses, allowances and discounts to the retailers they can get better shelf
space in the display stores of retailers especially in shampoo product line.
2. Lever Brothers Pakistan Limited has very strong and resourceful research department.
They can conduct through their personnel in all over Pakistan both in rural and urban areas and
hence they can launch the new shampoo with new formula and with new name. For this they
have such a big portfolio that they can afford its cost and returns will be maximized as a result of
increased sales which will definitely offset the cost and will result in maximum market shares.
3. People have ignored the relaunch of Sunsilk and its different offered variants. Lever
Brothers Pakistan Limited should implement the idea of launching the new shampoo with new
name and new formula because of this they well be better able to attract target market.
Threats
1. All new and existing and important shampoo and branded soaps, which are used, as
shampoos are the threats for the shampoo product line of Lever Brothers Pakistan Limited
especially Sunsilk. Since people are not that much price sensitive in case of shampoo but they
have more concern about the ingredients, formula and quality of their shampoo.
2. Competitors of Lever Brothers Pakistan Limited like P&G have very strong relations with
retailers and distributors which is greater threat to the Sunsilk. The detail of discounts offered by P&G re
as followed:
Order in Rs. Discount in %

Below 50,000 2-3%
Above 50,000 5-6%
While Lever Brothers Pakistan Limited offers even less than the above stated discounts on
Sunsilk and Lifebuoy shampoos.
Competitors’ Analysis
The major competitors of Sunsilk can be categorized in two ways (all percentages have been
provided by Lever Brothers Pakistan Limited:
1. Direct competitors 75%
2. Indirect competitors 25%
Direct Competitors
These competitors are in terms of product category. With reference to the product category we
can divide users of shampoo into following segments:
Upper Class
This class normally use Pentene, Head & Shoulder, Pert Plus. These shampoos are giving tough
competition to Sunsilk.
Middle Class
This segment is normally using shampoos in following percentage:
*All the percentages have been provided by LBPL.
Sr. No. Shampoo Percentage

1 Bio Amla 10
2 Head & Shoulder 20
3 Pentene 35
4 Pert Plus 25
5 Sunsilk 10

Bio Amla
Normally young girls and women want lengthy hair and try to avoid split edges of hair so they
prefer Bio Amla. This is a shampoo which has the largest number of liters sales in Pakistan. Only
lower middle and middle group people are using Bio Amla.
Head & Shoulder
20% shampoo users are using Head & Shoulder as they are dandruff conscious people. 99% of
the people are influenced by the advertisement of Head & Shoulder on daily use to get rid of
dandruff and more over they re getting the promised results. They have targeted both males and
females due to which they have got more number of shares in market.
Pentene
Pentene is the strongest hair care product of P&G both formula and advertisement wise. As
already explained they are giving top incentive to retailers and distributors. P&G sales staff pay
more visits to their retailers and stores to check the shelf space of their shampoo. Thus due to
these efforts they are getting 35% of market share.
Pert Plus
This shampoo is almost getting 25% of market shares and it is also a very strong brand of P&G.
P&G has targeted on young busy people who want stylish hair within five minutes. So the need
of separate conditioner is also committed.
Sunsilk
Rest of the market share i.e. only 10% is with Sunsilk.

Sales Analysis
Now we will discuss briefly only Pentene and Sunsilk from retailers point of view i.e. how much
order are generally placed by retailers in a month.
1. Pentene of P&G
2. Sunsilk of Lever Brothers Pakistan Limited
Pentene Of P&G
According to the retailers like Range & Prince Store and other small shop keepers, normally
place four order in a month i.e. the shelf space is refilled 04 times in a month or every week due
to the increased sales of Pentene. It reflects the highest turnover of Pentene.
Sunsilk Of Lever Brothers Pakistan Limited
On the other hand only one order is normally placed in month by retailers due to the low demand
by consumers. Hence the shelf space of Sunsilk is refilled 12 times in a year or once in a month.
We can say that ratio for order placement is 1:4 for Sunsilk and Pentene respectively. In other
words 75% of the orders are of Pentene and only 25% of the orders are secured by Sunsilk if we
compare only these two.
Indirect Competitors
Indirect competitors include:
Imported shampoos 40%
Branded soaps 35%
Unbranded shampoos and soaps 25%
Imported Shampoos
Higher income segment is very quality conscious. They are major innovators and variety seekers.
They change their shampoo more often than any other segment. They are mostly influenced by
advertisement and word of mouth or on the basis of the consultation of their beauty experts.
Examples of imported shampoos include:
1. Finess
2. Agree
3. Saloon Selective
4. American Pentene (Pentene lively clean, ,Pentene Moisture lock)
5. Vidal Sasoon
6. Temi Tei
40% of the indirect competition is provided by these imported shampoos.
Branded Soaps
These soaps include:
1. Lifebuoy (Lever Brothers Pakistan Limited)
2. Safeguard (P&G)
3. Bodyguard (Treet)
4. Johnson & Johnson (J&J) mainly targeted on kids
These soaps account for 35% of indirect competition.
Unbranded Shampoos & Soaps
They are unbranded shampoos and soaps and are normally used by lower income segment. These
unbranded soaps and shampoos provide a major competition to Lifebuoy shampoo for which
Lever Brothers Pakistan Limited focuses on low income segment. Lifebuoy soap is also
providing indirect competition to Lifebuoy shampoo, as users of Lifebuoy soap have not shifted
to Lifebuoy shampoo.
These unbranded soaps and shampoos account for 25% of indirect competition.
Strengths And Weaknesses Of Competitors
For this purpose or major competitor of concern are P&G and their shampoos like Pentene, Head
& Shoulder and Pert Plus are providing major competition to Sunsilk and Lifebuoy.
Strengths Of P&G
1. Their shampoo like P&G has conditioner in its which Lever Brothers Pakistan Limited has
only in one variant (Sunsilk White). This is most demanding feature of shampoo which P&G has
focused upon.
2. Advertisement of P&G focuses on males and females both to appeal potential markets as
their customers.
3. P&G has very strong relationship with their retailers. Their marketing and sales manager
bimonthly visits these retailers to get knowledge of their problems. They provide them good
incentive like discounts i.e. three to four percent on their sales, quantity discounts on large sales,
moreover they launch price schemes continuously for their retailers. Lever Brothers Pakistan
Limited have this very healthy strategy i.e. relationship with retailers.
4. P&G provides transportation facilities to its distributors and retailers which attract these
distributors and retailers to buy the P&G’s shampoo as compared to Lever Brothers Pakistan
Limited’s one.
5. P&G’s management bargain and stresses more on its prominent shelf space with their
retailers. In return of all above incentive not only retailers give a good shelf space but also
promote P&G’s products.
6. P&G fills its shelf space four times a months due to its high demand of shampoos. While
Lever Brothers Pakistan Limited’s shampoos order are placed once in a month due to low
demand by retailers. Hence high sales volume is an other strength of P&G’s.
Weaknesses
1. People have perception that P&G’s shampoo (e.g. Pentene) has harmful chemical, it
causes fall of hair. It is a weaknesses of P&G people think that it softens the hair and gives silky
touch but it causes the hair fall.
2. Though there is not too much big difference of price of Sunsilk and Pentene but people
perceive that Pentene and P&G’s shampoo are of high prices. Due to this they face competition
from Lever Brothers Pakistan Limited. But now they have overcome this element by price
reduction i.e. from Rs. 120 to Rs. 99 i.e. just one rupee below the retail price of Sunsilk (retail
price of Sunsilk family size bottle is Rs. 100).
Existing Strategies Of Sunsilk
The strategy rather group of strategies adopted by Lever Brothers Pakistan Limited for Sunsilk
are as follows:
Four main groups of strategies are available to us i.e.
1. Product development
2. Market development
3. Market penetration
4. Diversification
Out of these four strategies Lever Brothers Pakistan Limited has adopted the market
development strategies i.e. finding new market or target customers for the Sunsilk in case of
launching shortly new variant of Sunsilk White antidandruff and second strategy followed is
diversification which they are know about to follow through launching complete hair care
package i.e. not only shampoo but conditioners and hair dyes and sprays as well. And in this
strategy an other group of sub-strategies being followed is 4-P’s.
Product Strategy
For product continuous improvement strategy is being adopted i.e. continuously launching
different variants in Sunsilk. Previously launched 12 variants than reduced to 6 variants, and now
launched another variant i.e. Sunsilk White antidandruff.
Pricing Strategy
Lever Brothers Pakistan Limited have been using mediocre price strategy i.e. neither too high
nor too low i.e. lower than P&G but higher than Bio Amla Shampoo. Due to cost focused
strategies they are able to provide customers with low prices as to retain their target market
which is mainly the middle class.
Promotion Strategy
In case of promotion, due to restriction from parent company and Elida Hair Institute they are
bounded to follow celebrity beautician focused promotional campaigns (Nabila) and entirely
focusing the female segment for Sunsilk Shampoo.
Placing Strategy
Distribution strategy is not different other than any product same distribution strategies adopted
for complete product line. No separate or customized strategy adopted for Sunsilk.
Suggested Strategies
From about mentioned for group of strategies considering the weakness inherited in those
strategies and problems faces by Lever Brothers Pakistan Limited, we would recommend
product development strategy instead of market development. And now implication of this
strategy over four P’s.
Product Strategies
They should launch a new product with completely new brand name instead of matured rather
declining brand name and excuse for not launching a new brand. Hence as being very expensive
is no excuse for a company having portfolio for the financing of which backs have to make a
consortium.

Pricing Strategies
Pricing strategies adopted are quite justified.
Promotion Strategies
Main problem lies with promotional strategies being followed by Sunsilk using Nabila for almost
last 5-6 years continuously. They should bring a change in their promotional campaign and
should diversify it not only rely on television but should utilize other sources as well, should
have market penetration strategy effectively.
Place (Distribution) Strategy
Lever Brothers Pakistan Limited should develop long term relationship with their retailers and
provide them more attention and focus on them and listen to their complaints which they are not
doing right now and sales force only are to pick and place orders and fulfillment of orders and
don’t bargain on shelf space and not providing any incentive to retailer for the promotion of
Sunsilk. So, developmental beneficial relationship with the retailers along with wholesalers.
Existing Strategies Of Lifebuoy
Since Lever Brothers Pakistan Limited has launched a new product of Lifebuoy shampoo on the
basis of its existing product Lifebuoy soap. Lever Brothers Pakistan Limited has tried to encash
it generic brand hence cash cow Lifebuoy soap in a new form Lifebuoy shampoo. So Lever
Brothers Pakistan Limited is following related diversification strategy in Lifebuoy shampoo.
Within this group of strategies I its 4-P’s.
Product Strategy
In case of Lifebuoy shampoo they have made a related diversification in Lifebuoy soap.
Pricing Strategy
The are following cost leadership in Lifebuoy shampoo. Their focus is on low income group
which is already loyal to Lifebuoy soap due to its low prices. Hence brand name and brand
loyalty has been focused.
Place (Distribution) Strategy
Extensive distribution of Lifebuoy shampoo (family sized bottle, medium to small size sache
pack) has been ensured on all retail outlets of Pakistan with 100% coverage.
Promotion Strategy
Lifebuoy shampoo for the promotion of Lever Brothers Pakistan Limited has focused on lower
income segment (due to its low prices) and has used Shehzad Roy as their celebrity. There is no
such heavy advertisement in case of promotion of Lifebuoy shampoo.
Suggested Strategies
Market Penetration
Lever Brothers Pakistan Limited should use market penetration strategy in case of Lifebuoy
shampoo. They should enhance their advertisement and should boost their market share of
Lifebuoy shampoo with enhanced marketing efforts.
Implementation
Their focus for promotion on celebrity is only on Shahzad Roy for lower class which is not a
source of inspiration for them. So they should use such advertisement appeal which is based on
the problems of low income group and is chosen to their real life situation.
Market Development
Market development is an other proposed strategy i.e. they should identify new markets with
existing product.
Implementation
Focus of Lever Brothers Pakistan Limited in case of Lifebuoy is on males with concept of
hardworking man. They should capture females and kids as well with new soft appeal. For this
they can give a new name to their existing product as well, which will be quite effective to attract
females and a potential portion of middle income group.

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Acknowledgement

TOC \T "HEAD NO. 1,1,HEAD NO. 2,2,HEAD NO. 3,3" Organization

Home And Personal Care...........................................................................................

Personal Wash (PW)................................................................................................

Fabrics And Home Care..............................................................................................

Oil And Dairy Based Foods.........................................................................................

Vision Of Lever Brothers Pakistan Limited..................................................................

Mission Statement of Lever Brothers Pakistan Limited.............................................

Analysis Of Mission Statement...................................................................................

Organization Key Value.........................................................................................

Critical Success Factor..........................................................................................

Form And Sources Of Competitive Advantages................................................

Scope And Types Of Mission................................................................................

Objectives Of Lever Brothers Pakistan Limited And Attainment Of Objectives...

Objectives of Lever Brothers Pakistan Limited......................................................

Strategic Management At Lever Brothers Pakistan Limited...................................

Corporate Level Strategy...........................................................................................

Business Level Strategy............................................................................................

Organizational structure and management of Lever Brothers Pakistan Limited

Threat Of New Entrants.........................................................................................

Structure Types In Multinational Companies........................................................

Value Chain Analysis Of Lever Brothers Pakistan Limited....................................

Explanation Of Value Chain....................................................................................

Human Resource Management...........................................................................

Primary Activities Of Value Chain Of Lever Brothers Pakistan Limited............ PAGEREF

Inbound Logistics Of Value Chain Of Lever Brothers Pakistan Limited....... PAGEREF

Out Bound Logistics...................................................................................................

Marketing And Sales..................................................................................................

1. Poor Marketing..................................................................................................

A Transition In Value Chain.....................................................................................

Political & Legal Factors............................................................................................

Introduction Of Sunsilk And Lifebuoy........................................................................

SWOT Analysis Of Shampoo Product Line..............................................................

Sunsilk Of Lever Brothers Pakistan Limited.......................................................

Unbranded Shampoos & Soaps..........................................................................

Strengths And Weaknesses Of Competitors............................................................

Existing Strategies Of Sunsilk.....................................................................................

Place (Distribution) Strategy.................................................................................

Existing Strategies Of Lifebuoy...................................................................................

Place (Distribution) Strategy.....................................................................................

 Buying raw material

 Selling finished goods

Merger With Brooke Bond

Home And Personal Care

Personal Wash (PW)

Lifebuoy (Carbolic Soap)

Lifebuoy Plus

Lifebuoy Gold

Lux (in 4 varieties)

Rexona (in 2 varieties)

Fair & Lovely Soap

Fabrics And Home Care

Surf Excel

Power Surf

Sunlight Washing Powder

Soap Wheel

Vim Dish Washer / Scourers

Vim NSD Bard (in 2 varieties)

Vim Powder Poly Bag

Sunsilk Shampoo (in 7 varieties)

Harmony Soap

Lifebuoy Shampoo

Fair & Lovely Skin Cream and Lotion