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Blue Band Margarine
Blue Band Margarine
Unilever
Unilever is an Anglo-Dutch multinational corporation that owns many of the world's consumer
product brands in foods, beverages, cleaning agents and personal care products. Unilever N.V.
has its head office in Rotterdam, while Unilever PLC has its head office in the Unilever House in
the City of London and its registered office in Port Sunlight, Wirral, Merseyside.[3]
Unilever is a dual-listed company consisting of Unilever NV in Rotterdam, The Netherlands and
Unilever PLC in London, United Kingdom. This arrangement is similar to those of Reed Elsevier
and Royal Dutch Shell prior to their unified structures. Both Unilever companies have the same
directors and effectively operate as a single business. The current non-executive Chairman of
Unilever N.V. and PLC is Michael Treschow while Paul Polman is Group Chief Executive.
Unilever's main competitors include Pepsico, Procter & Gamble, Nestl, Danone, Kraft Foods,
S.C. Johnson & Son, Reckitt Benckiser and Henkel.
History of Unilever
Unilever's corporate mission to add vitality to life shows how clearly the business
understands 21st century-consumers and their lives. But the spirit of this mission forms a thread
that runs throughout our history.
Timeline
19th
Although Unilever wasn't formed until 1930, the companies that joined forces to
ce create the business we know today were already well established before the start of
ntu the 20th century.
ry
1900s
Unilever's founding companies produced products made of oils and fats, principally
soap and margarine. At the beginning of the 20th century their expansion nearly
outstrips the supply of raw materials.
1910s
Tough economic conditions and the First World War make trading difficult for
everyone, so many businesses form trade associations to protect their shared
interests.
1920s
1930s
Unilever's first decade is no easy ride: it starts with the Great Depression and ends
with the Second World War. But while the business rationalises operations, it also
continues to diversify.
1940s
Unilever's operations around the world begin to fragment, but the business
continues to expand further into the foods market and increase investment in
research and development.
1950s
Business booms as new technology and the European Economic Community lead to
rising standards of living in the West, while new markets open up in emerging
economies around the globe.
1960s
As the world economy expands, so does Unilever and it sets about developing new
products, entering new markets and running a highly ambitious acquisition
programme.
1970s
Hard economic conditions and high inflation make the 1970s a tough time for
everyone, but things are particularly difficult in the fast-moving consumer goods
(FMCG) sector as the big retailers start to flex their muscles.
1980s
Unilever is now one of the world's biggest companies, but takes the decision to
focus its portfolio, and rationalise its businesses to focus on core products and
brands.
1990s
The business expands into Central and Eastern Europe and further sharpens its focus
on fewer product categories, leading to the sale or withdrawal of two-thirds of its
brands.
The 21st The decade starts with the launch of Path to Growth, a five-year strategic plan, and
ce in 2004 further sharpens its focus on the needs of 21st century consumers with its
ntu Vitality mission.
ry
Company Vision
The four pillars of the vision set out the long term direction for the company where they want
to go and how they are going to get there:
We will inspire people to take small everyday actions that can add up to a big difference
for the world.
We will develop new ways of doing business that will allow us to double the size of our
company while reducing our environmental impact.
We've always believed in the power of our brands to improve the quality of peoples lives and in
doing the right thing. As our business grows, so do our responsibilities. We recognise that global
challenges such as climate change concern us all. Considering the wider impact of our actions is
embedded in our values and is a fundamental part of who we are.
Company Mission
Unilever's mission is to add vitality to life. We meet everyday needs for nutrition, hygiene, and
personal care with brands that help people feel good, look good and get more out of life.
Brands
Food Brands
Personal Care
Brands
Becel, Flora
Axe
Cif
Bertolli
Dove
Comfort
Blue Band
Domestos
Heartbrand
Lux
Omo
Hellmanns Amora
Ponds
Radiant
Rexona
Sunlight
Lipton Tea
Signal, Close up
Surf Excel
Slim-Fast
Sunsilk
Wheel
Supreme Tea
Vaseline
Walls
Clear Shampoo
Fair& Lovely
Imperial
Unilever in Pakistan
The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was
established in Pakistan in 1948. The town of Rahim Yar Khan was the site chosen for setting up a
vegetable oil factory. Unilever Pakistan is the largest FMCG company in Pakistan, as well as one
of the largest multinationals operating in the country. Now operating six factories at different
locations around the country. The Unilever's Head Office was shifted to Karachi from the Rahim
Yar Khan site in the mid 60's.
Key facts
Range
Blueband 50 g
Blueband 100 g
Blueband 200 g
Competitors
The main competitor of Blue Band Margarine is:
Nurpur Butter
Competitive Advantage
Blue Band Margarine never compromises on quality.
Blue Band Margarines extensive milk collection system ensures that the milk you get is of the
finest quality.
Blue Band Margarines products are available in every city and town
Unilever is using the latest technology in its production units.
Unilever makes milk powder of the surplus milk in winter and converts this milk powder into
UHT milk in summer.
Demographics of Pakistan
Pakistan is a small country with limited resources. But the population of Pakistan is 180,000,000.
Pakistan has 6th number in population in the world.
Population and Growth
Population: 180,000,000 (2008 EST.)
Growth rate: 1.828% (2007 EST.)
Population
Karachi
Lahore
Rawalpindi
Faisalabad
Multan
Gujranwala
Hyderabad
Islamabad
15 Million
9 Million
3 Million
2.6 Million
1.6 Million
1.3 Million
1.3 Million
1.3 Million
Peshawar
1.0 Million
Agriculture sector.
Total Target Market Of Milk
Annual Production Of Milk
180000000
(Billion Liters)
Total market of Gawala (96%) Billion
liters
Total EXISTING market of processed
milk (4%) Billion Liters
33.25
31.92
1.33
(Million liters)
(Million liters)
2007-08
33805.10
557.72
2008-09
35495.25
648.43
Year
Years
Annual Production
(million liters)
Annual
Consumption
(million liters)
2008-09
35495.25
36361.25
2009-10
37669.75
38188.92
Annual Consumption
(million liters)
(million liters)
2008-09
648.43
353.71
2009-10
753.89
372.05
Year
Our projections show increasing deficits in fresh milk production and increasing surpluses in
UHT milk market in the run up to 2009-10, which suggests that the industry should get ready to
face challenges.
The analysis shows that Pakistans milk yields are very low, and even simple management of
feed (proper timing, proper mix and so on) can increase yield substantially. This requires
intervention at two levels:
a) The farmers need to have better knowledge of feed management. This can be done by
involving milk plants and provincial livestock departments who can provide training and
extension services to dairy farmers.
b) The feed industry needs to be developed substantially to provide better quality animal feed at
affordable prices. Currently we do not have sufficient supply of high quality nutrients and
additives, especially in rural areas. A specific package needs to be developed with the help of the
government and in partnership with the private sector that would facilitate and encourage the
development of a modern feed industry. Further, the vast potential of using molasses as
concentrate in animal feed also need to be taped.
Retailer
Milk Collector
Distributor/Retailer
Milk Processing Plant
Milk Collection Agency
Customer
Very low quality milk is provided by the milkmen to dairy farms which is a very big threat for
the entire market.
The shortage of milk providing animals is also a threat for entire milk industry.
Milk Supply Chain in Pakistan
Consumer
Gawala (Milkman)
Halwai (sweet shop)
De-creamer
Milk Collector
Dairy Farmer
Retailer
Milk Industry of Neighbour Country (India ):
Strenghths:
Demand profile:
Absolutely optimistic
Margins:
Quite reasonable, even on packed liquid milk.
Flexibility of product mix:
Tremendous with balancing equipment, you can keep on adding to your product line.
Availability of raw material:
Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which
requires proper channelization.
Technical manpower:
Professionally-trained, technical human resource pool, built over last 30 years.
Weaknesses:
Perishability:
Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many
new processes will follow to improve milk quality and extend its shelf life.
Lack of control over yield:
Theoretically, there is little control over milk yield. However, increased awareness of
developments like embryo transplant, artificial insemination and properly managed animal
husbandry practices, coupled with higher income to rural milk producers should automatically
lead to improvement in milk yields.
Logistics of procurement:
Woes of bad roads and inadequate transportation facility make milk procurement problematic.
But with the overall economic improvement in India, these problems would also get solved.
Problematic distribution:
Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook
and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time
before we see the emergence of a cold chain linking the producer to the refrigerator at the
consumers home!
Competition:
With so many newcomers entering this industry, competition is becoming tougher day by day.
But then competition has to be faced as a ground reality. The market is large enough for many to
carve out their niche.
Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly.
He entered the industry when there were only threats. He met failure head-on, and now he clearly
is an example of never ending successes! If dairy entrepreneurs are looking for opportunities in
India, the following areas must be tapped:
Value addition:
There is a phenomenal scope for innovations in product development, packaging and
presentation.
Given below are potential areas of value addition:
Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer,
khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the
market place along with opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further strength - both in terms of
utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins through casein, and other dietary proteins,
further opening up export opportunities.
Yet another aspect can be the addition of infant foods, geriatric foods and nutritional.
Export potential:
Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka,
Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase
tremendously for the export of agri-products in general and dairy products in particular.
Threats:
Milk vendors, the un-organized sector:
Today milk vendors are occupying the pride of place in the industry. Organized dissemination of
information about the harm that they are doing to producers and consumers should see a steady
decline in their importance.
The study of this SWOT analysis shows that the strengths and opportunities far outweigh
weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and
threats are transitory. Any investment idea can do well only when you have three essential
ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and
marketing) and values (of quality/ethics).
The Indian dairy industry, following its deli censing, has been attracting a large number of
entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical
procurement network, hygienic and cost-effective processing facilities and innovativeness in the
market place.
All that needs to be done is: to innovate, convert products into commercially exploitable ideas.
All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the
man who invented the meter that really made the money.
Market Segmentaion of Nestle Milkpak
Geographic Segmentation:
Milkpak has segmented the market on the basis of Geographic segmentation and its target market
is major populated cities of pakistan
Demographic Segmentation:
Nestle Milkpak is also segementing the market on the basis of Income level of the people. Three
Income level has been defined; Higher, middle and lower income classes.
Targeting
Urabn areas of the country
Upper and Middle income class
Situation Analysis
Awareness:
Top of the mind recall
Due to strong brand positioning and effective advertising, Milkpak has highest awareness level.
Brand
Milkpak
Haleeb
Olpers
Dairy Queen
Good Milk
Nurpur
Awareness (%)
43
38
9
7
2
1
Milk Pak
45
Dairy Queen
Haleeb
22
Olpers
17
Nur Pur
Others
The table shows that Milkpak has the highest market share due to its consistent quality.
Market Trends
The growth of processed milk is increasing by 20% annually
People are getting more quality and health conscious with the passage of time
Due to impurities of Gawala milk, people are attracting towards processed milk
Key factors are:
Changing lifestyle
Influence of foreign media
Market Potential
At an average, a Pakistani consumer spends 42 % of income on food
Consumer often prefer branded food items for both quality and status reasons
Per capita real GDP has increased at an average of 5.6 % per annum during the last three years
This increase has led to a rise in average income of people and an increase in consumer
spending.
SWOT Analysis (Nestle Milkpak)
Strengths:
Strong Brand image:
Nestle has been serving the Pakistani consumers since 1988, and it has built a strong brand
image due to its quality products.
Quality product:
Nestle Milkpak is known as the best UHT milk in Pakistan due to consistency in quality.
Solid Financial position:
Nestle Milkpaks annual turnover is Rs.30 Billion which provides it a financial edge over its
competitors.
Strong supply chain network:
Nestle collects Milk directly form the farmers instead of relying on the contractors. And it
distribution is also very strong. In this way it has a complete control over its supply chain.
Qualified work force
Commitment to High Quality Products
Focus on research and development
Weaknesses:
The target market of Nestle Milkpak is upper middle and high class because lower middle and
poor class cannot afford to buy UHT milk due to its premium price. This is the only weakness of
Milkpak.
Opportunities:
Estimations of UHT Milk Production and Consumption up to 2008 09
Annual Production
Annual Consumption
(million liters)
(million liters)
2008-09
648.43
353.71
2009-10
753.89
372.05
Year
The projected values of UHT Milk consumption and production are obtained from the
ARIMA model.
More people are coming towards processed milk because loose milk is dangerous for health
due to a lot of contamination.
Growth of processed milk is increasing with 20% annually so Nestle Milkpak has the
opportunity to capture a large share of market.
Threats:
Two main competitors Haleeb and Olpers are main threat for Milkpak especially the Olpers is
growing very fast.
Inflation is getting higher and higher so the purchasing power of the people is decreasing day
by day.
There is no entry barrier for new entrants as the Olpers has come in the market.
Positioning Strategy
Functional Positioning
Nestle Milkpak has adopted the functional positioning strategy like:
Khaalis He Sab Kuch Hai
Wohi Qudarti Maza
Jaan Banaoo
Differentiation
Addition of IRON and Vitamin A & C
Marketing Mix
Product:
Quality Product
Nestle Milkpak has the largest market share due to its consistent quality.
Product Style and logo
Nestle Milkpak is available in different product range and stylish packaging.
Product Lifecycle
Nestle Milkpak has been in the market for a very ling time and it is at maturity stage.
Price:
Competition Based Pricing
Milkpak is holding a large share in the market due to its quality at same price as compared to
competitors.
Placement:
Distribution Channels:
Milkpak is not sold directly to consumers and the complete distribution process is followed. It
uses indirect channels for distribution like:
ManufacturerDistributorWholesalerRetailerConsumer
Promotion:
Focusing on health conscious people in their advertisement.
Promotion Mix
Advertisement
Public relations
Marketing Strategy
Nestle is pursing growth strategy. They have invested $ 70 billion at Kabirwala Plant and they
are planning to invest $ 381 billion in the milk business.
Recommendations
The immense competition is going in the market so Nestle Milkpak should penetrate more and
more in the market.
Only 4 % milk is being processed and 96% people are using loose milk so Nestle Milkpak has
the opportunity to capture a large share of the market through more creative advertising and other
promotional activities.
Nestle Milkpak should invest more on research and development because customers using loose
milk are getting a lot of contaminations especially in urban areas so Nestle Milkpak can provide
awareness to people in this aspect.
Bibliography
Mr. Imran Rasool: Executive Marketing, Nestle MilkPak.
Mr. Shehzad Anwar: Assistant Area Sales Executive Nestle Milkpak.
Mr. Mustafa Zaidi: Joint Director Research and Development, Lahore Chamber of Commerce.
Dairy reports:
White Revolution by Pakistan Dairy Development Company
Year book 2006-07, By Ministry of Food, Agriculture and Livestock.
Websites:
http://www.google.com
http://www.wikipedia.com