Executive Summary
Unilever is a multinational consumer product manufacturing giant operating in over hundred countries all around the globe. Unilever Pakistan is the Pakistan chapter of Unilever, where the company holds 60.75% share whereas the Government of Peoples Republic of Pakistan holds 39.25% share. Unilever’s one of the most popular brand is LUX. They segments LUX.’s market according to geographical locations. It further differentiates these segments into Socio Economic Cluster (SEC) which takes into account the criteria of education and profession which ultimately measures the financial ability of consumers. The cluster is divided into five parts starting from A to E. Unilever targets the urban and sub urban upper middle class and middle class segment of the population, who falls under A to C of SEC. Tactical marketing tools, 4P’s, are extensively used by the company to market LUX. Though LUX is produced in Pakistan, Unilever Pakistan maintains the same standard all around the globe. The product is available in six different fragrances under three different sizes. Since the demand for beauty soap market is to a great extent oligopolistic, variations in price lead to price war which can eventually break down the company’s market share. Thus Unilever cannot provide a better price than its competitors. But the price is affordable by most of the people. Unilever Pakistan has outsourced its distribution channels to third party distributors which allow them to distribute LUX in massive bulks amounting to around ten million pieces. It undertakes the largest promotional activities in the beauty soap industry.


Lux The beauty soap industry has a few major producers of which Unilever holds market share of slightly less than 50%. Other competing brands like Tibbet, Aromatic and Keya have started to have a strong consumer base, but LUX.’s product features distribution and promotional activities have created high brand loyalty for which it is still the market leader. Unilever, with the aid of its heavy promotional activities, has been able to penetrate the market. But the other producers in the industry are posing a threat towards Unilever’s market share as they have moved towards the rural masses of the population. Therefore, Unilever Pakistan should undertake further steps such as moving towards the rural and/or poorer segment; attract children (by making a special product for kids) and other innovative promotional activities to retain its command in the industry.

No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products.

Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods companies. In fact, 150 million times a day, someone somewhere chooses a Unilever product. Look in your fridge, or on the bathroom shelf, and you're bound to see one of our well-known brands. We create, market and distribute the products that people choose to feed their families and keep themselves and their homes clean and fresh. People's lives are changing fast. As the way we all live and work evolves, our needs and 3

the most important brand being Bertolli. bouillons. with €2. World-class business expertise applied internationally to serve consumers everywhere. with brands such as Algida and Wall's in Europe. At Unilever we aim to help people in their daily lives. and Ben & Jerry's in the United improving tried and tested brands and promoting better. Here are some recent highlights from our three global divisions . Knorr is now our biggest brand.Foods. under the Findus brand in Italy. home care and personal well as regional products and local varieties of famous-name goods. how we achieve results is important too. We have a portfolio of brands that are popular across the globe . Innovations such as Magnum snack-sizes and Cornetto miniature and multi-packs have sparked progress. we have launched Bertolli pasta sauces and dressings. In the branded olive oil category we are a leader. We are the world's leading ice cream producer. We work hard to conduct our business with integrity . Unilever is one of the world's leading suppliers of fast-moving consumer goods. noodles and complete meals. We are the largest seller of packet tea in the world through our Lipton and Brooke Bond brands. We have met consumer demand for healthy foods by launching pro. We are the number one producer of frozen foods in Europe. FOODS The acquisition of Bestfoods in 2000 brought us leadership in the culinary category. Appealing to consumers' taste for Mediterranean food. We are the category leader in margarine and spreads in most European countries and North America. we encourage our people to develop new ideas and put fresh approaches into practice. with brands such as Becel (the Netherlands).Lux tastes change too. a spread which contains ingredients that can help reduce cholesterol levels. This diversity comes from two of our key strengths: Strong roots in local markets and first-hand knowledge of the local culture. We don't only measure success in financial terms. more efficient ways of working. 4 . Focusing on performance and productivity. So we keep developing new products. Birds Eye in the UK and Iglo in other European countries. sauces. our consumers and the environment around us. Flora (UK) and Take Control (US).respecting our employees. Hand in hand with this is a strong sense of responsibility to the communities we serve.3 billion sales in over 100 countries and a product range covering soups.

Pond's. look good and get more out of life. soft clothes or sparklingly clean bathrooms. Comfort. PERSONAL CARE In need of hair care heroics? Wanting to relax with sumptuous soaps? Our personal care brands have answers to all these questions and more. our food brands can satisfy even the most discerning palates. Lux. Unilever Foodsolutions HOME CARE Whether you want fresh. deodorants and antiperspirants. Dove. our global home care brands can help. hygiene and personal care with brands that help people feel good. 5 . Skip and Snuggle. we are global leaders in products for skin cleansing.Lux HOME & PERSONAL CARE We lead the home care market in much of the world. which includes cleansing and hygiene products. Many of our home care products are market leaders including Brilhante. RELATED LINKS View our Introduction to Unilever presentation FOODS From mouth-watering mayonnaise to scrumptious sauces. Rexona and Sunsilk. Domestos. Cif. Our global core brands in the personal care market are Axe. Within the personal care market. Omo. ADDING VITALITY TO LIFE We meet everyday needs for nutrition.

Unilever's success has been influenced by the major events of the day – economic boom. enabling people to enjoy food and take care of their homes. founder of Lever Bros.Lux OUR MISSION Vitality is at the heart of everything we do. wrote down his ideas for Sunlight Soap – his revolutionary new product that helped popularise cleanliness and hygiene in Victorian England. 6 .and the notion of only women doing housework – has become outdated. HELPING PEOPLE GET MORE OUT OF LIFE In the 1890s. to foster health and contribute to personal attractiveness. changing consumer lifestyles and advances in technology. And throughout we've created products that help people get more out of life – cutting the time spent on household chores. depression. but these ideas have stayed at the heart of our business. OUR HISTORY Unilever's corporate mission – to add vitality to life – shows how clearly the business understands 21st century-consumers and their lives. Even if their language . that life may be more enjoyable and rewarding for the people who use our products'. world wars. to lessen work for women. It's in our brands. their clothes and themselves. William Hesketh Lever. our people and our approach to business. This was long before the phrase 'Corporate Mission' had been invented. It was 'to make cleanliness commonplace. In a history that now crosses three centuries. improving nutrition. But the spirit of this mission forms a thread that runs throughout our history.

support local communities and much more. Today. Unilever still believes that success means acting with 'the highest standards of corporate behavior towards our employees. our Path to Growth strategy focused us on global high-potential brands and our Vitality mission is taking us into a new phase of development. Over the years we've launched or participated in an ever-growing range of initiatives to source sustainable supplies of raw materials. Through this timeline you'll see how our brand portfolio has evolved. our brands are helping people 'feel good. They set up projects to improve the lot of their workers and created products with a positive social impact. protect environments.Lux BALANCING PROFIT WITH RESPONSIBLE CORPORATE BEHAVIOR: In the late 19th century the businesses that would later become Unilever were among the most philanthropic of their time. making hygiene and personal care commonplace and improving nutrition through adding vitamins to foods that were already daily staples. At the beginning of the 21st century. More than ever. consumers and the societies and world in which we live'. 7 . look good and get more out of life' – a sentiment close to Lord Leverhulme's heart over a hundred years ago.


the companies that joined forces to create the business we know today were already well established before the cent start of the 20th century. so many businesses form trade associations to protect their shared interests. Unilever's first decade is no easy ride: it starts with the Great Depression and ends with the Second World War. Tough economic conditions and the First World War make trading difficult for everyone. companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge . but the business continues to expand further into the foods market and increase investment in research and development. leading to the sale or withdrawal of twothirds of its brands. Business booms as new technology and the European Economic Community lead to rising standards of living in the West. But while the business rationalises operations.Lux Although Unilever wasn't formed until 1930. and rationalise its businesses to focus on core products and brands. principally soap and margarine. 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 9 . but takes the decision to focus its portfolio. Unilever is now one of the world's biggest companies. With businesses expanding fast. Unilever's operations around the world begin to fragment. 19th ury 1900s Unilever's founding companies produced products made of oils and fats. The business expands into Central and Eastern Europe and further sharpens its focus on fewer product categories. it also continues to diversify.and so Unilever is created. As the world economy expands. while new markets open up in emerging economies around the globe. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials. Hard economic conditions and high inflation make the '70s 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. entering new markets and running a highly ambitious acquisition programme. so does Unilever and it sets about developing new products.

The 21st and in 2004 further sharpens its focus on the needs of 21st century-consumers cent with its Vitality mission. Meera and Aaminah Haq have endorsed the brand. Lux has been closely associated with many of the most glamorous and sensual women of the age. leading celebrities like Babra Sharif. a five-year strategic plan. to enjoy that moment when anything seems possible. India 10 . to enjoy that moment when anything seems possible. Throughout this time. to look and feel great. Marilyn Monroe. to look and feel great. GLAMOUR FACTOR: We all want to be pampered. In Pakistan. KEY FACTS First mass marketed toilet soap launched in 1924 Sold in over 100 countries Market leader in various countries including Saudi Arabia. Demi Moore and Catherine Zeta-Jones are some of the stars who've appeared in Lux ads. Brazil. ury We all want to be pampered. Lux has been winning hearts of Pakistani consumers for 50 years. And that's just what Lux offers you on a daily basis at a price you can afford.Lux The decade starts with the launch of Path to Growth. And that's just what Lux offers you on a daily basis at a price you can afford.

for a fresh renewed feeling. Lux Energising Fruit incorporates the beauty secrets of Fruit Extracts. the Netherlands.Lux Lux Almond Delight comes with the deep moisturization of exotic Peach. Cream and precious Almond Oil. 11 . for a softer and fragrant skin. UNILEVER R&D OPENS GLOBAL CENTRE OF EXCELLENCE FOR NEW PRODUCT DEVELOPMENT Vlaardingen. 4 March 2008 . rich Milk Cream and Honey.Unilever R&D today opened the Centre of Excellence Structured Emulsions in Vlaardingen. Lux Orchid touch comes with the delicate touch of rare orchids and precious Jojoba Oil. Lux Nature Pure has nourishing oil of Cade and cucumber extracts for a radiant and clear skin. FROM OUR RANGE Almond delight Orchid touch Energising fruit Aqua sparkle PERSONAL CARE In need of hair care heroics? Wanting to relax with sumptuous soaps? Our global personal care brands have answers to all these questions and more.

Furthermore. and the European packaging technology centre with a technology and material focus on tubs. Director of the new Centre of Excellence. healthier choices (e. Furthermore. pots and glass packaging. low-calorie options) and functional foods (products with added functional ingredients for additional health benefits). the CoE will contribute to the operating margin of Unilever by compensating for the rise in commodity costs through smarter use of ingredients and application of new technologies. Unilever's Foodservice business.g. for example for rapeseed oil. the centre will also host Unilever's European product development centre for Foodsolutions. The Centre of Excellence (CoE) Structured Emulsions will contribute to Unilever growth by delivering new product innovations. stated: "With the opening of our Centre of Excellence Structured Emulsions we are establishing a world-class R&D capability that will lead to more winning innovations across the globe. more than 3 meters tall and weighing 10 tons.g. mayonnaise.Lux DEVELOPING NEW PRODUCTS This global technology centre will focus on new product development for margarines. salad dressings and dairy cream alternatives. With R&D experts from 20 countries we have a deep expertise and a wide perspective which will allow us to deliver taste. The centre is a multi-site organisation. To deliver these innovations and cost savings. Dijon (FR) and Englewood Cliffs (USA). 12 . the CoE Structured Emulsions will aim to develop world class technical capabilities in the areas of fat technology and emulsification. vitamins). health and convenience for consumers around the world. products with minimised saturated and trans fats. It will counter the rise in commodity costs. The new R&D centre will focus on developing innovative products that provide the natural goodness of oils (e. essential fatty acids omega-3 and omega-6. by using alternative ingredients like citrus fibres and novel product structuring techniques. spreads. employing 225 R&D professionals in Vlaardingen (NL). The CoE opening ended with the unveiling of the world's highest emulsifier sculpture. Carla Hilhorst.

physical hazards and toxicology. working in partnership with R&D colleagues from the initial stages of product development and scientific research to approve new ingredients. Safety decisions are made independently of commercial considerations. We have experts in chemistry. microbiology. TACKLING COMPLEX ISSUES Our multidisciplinary project teams tackle complex issues.Lux designed by the R&D team together with its external partners Danisco and Inaxi. medicine. The choice of material for the sculpture was linked to the expertise of the Centre of Excellence Structured Emulsions: an emulsifier is a small. but crucial 'chaperone' that brings together water & oil to make stable products: emulsions like margarine. and is responsible for carrying out the assessment and approval of product and supply chain technology design. dressings and dairy cream alternatives. SAFETY & ENVIRONMENTAL ASSURANCE CENTRE Safety is an essential element of a successful and sustainable business. environmental science. This world's highest emulsifier sculpture served to symbolise the ambition for the new R&D centre: to be the 'world champion' in structured emulsions and their applications in tasty. modelling. We take our responsibility to protect our consumers. considering consumer safety. technologies & processes. our employees and the environment we live in very seriously. healthy and convenient foods. UK. occupational & process safety. SAFETY COMES FIRST Our dedicated ''Safety & Environmental Assurance Centre'' plays a central role in providing independent assurance and support for our products and processes. applications & uses and novel delivery routes. and highly challenging projects. occupational safety and the environment. statistics. WIDE-RANGING EXPERTISE The centre is based at Colworth. 13 . mathematics.

WORKING WITH OTHERS Our scientists interact with policy makers. A GLOBAL CENTRE Over 700 scientists and engineers – from various backgrounds and nationalities – work here to create innovative products for consumers 14 . customers. regulators and other authorities. a risk management decision can be made including any control measures necessary for the safe use of ingredients and processes for new and existing Unilever products. Unilever R&D Port Sunlight is the source of many of our most successful products for home and personal care. Our team has gained a world-class reputation and plays a key role in developing international methods and approaches in this area. contributing to the development of safety legislation. employees and the environment everywhere we operate. and the environment The aim is to assure the safety of consumers. Today. using our up to date scientific knowledge to promote and improve standards in consumer safety. occupational safety. PORT SUNLIGHT A hundred years ago. We also work with a variety of organisations. companies and trade associations. Risk Assessment is the core process used to identify hazard.Lux WORLD-CLASS REPUTATION Safety is about making decisions on what risks are acceptable and what are not. quantify exposure and thereby determine potential risk. William Lever built his first soap factory near Liverpool in a place he called Port Sunlight. Based on Risk Assessment.

All three R&D teams work regularly with academic and third-party collaborators with the aim of ensuring that Unilever scientists are connected with the very best and most up-to-date scientific thinking. Those with skills in the biological sciences work on continuously improving our understanding of skin. This will sometimes include travel overseas to give our scientists the opportunity to network with colleagues and learn more about consumers with very different lifestyles to their own. Persil / Omo and Domestos. and bathroom fittings. Sunsilk. Port Sunlight scientists share a common science base with Unilever’s Foods R&D and Corporate Research teams. Lynx / Axe. hair and teeth and how our products can help influence their condition. BIOLOGICAL The majority of the staff at Unilever R&D Port Sunlight have a first degree in a science subject. scalp. whilst 15 . PHYSICAL The physical sciences are applied in every part of the research and development programme. The global brands our teams contribute to include Dove. underarm. For example physical chemists use their expertise in colloid science to improve the cleaning efficacy look and feel of our products. Each year this work results in over 100 patent filing and approximately 140 peerreviewed papers and conference presentations.Lux around the world. IN TOUCH We achieve much of our success by working across a network of Unilever R&D centres. kitchen worktops. OUR SCIENCE BASES Although we are focused here on home and personal care brands. Scientists at R&D Port Sunlight work daily with Unilever colleagues from São Paolo to Shanghai. They also study the interaction of our products with bacteria found on surfaces including the mouth. Cif. Synthetic chemists have the task of making new ingredients to deliver improved functionality to our products. typically the physical or biological sciences.

Alternatively a hair research project might wish to understand how to give consumers in South East Asia the shiny and soft straight hair they desire from a shampoo. social scientists. HOW & WHERE WE WORK Innovation is right at the heart of Unilever. formulators to study the interaction of the new ingredients with the base formulation and to test for efficacy and storage stability. and our dynamic R&D environment attracts top-class scientists who enjoy the best of both worlds – being at the cutting edge of technology and seeing their work deliver real benefits daily. Psychologists.whose role is to investigate how a consumer's 'need' or 'desire' translates into a product. What does it really mean in scientific terms to have shiny hair? When consumers say they want thick bleach – what do they really mean? If you change the packaging of a deodorant can you predict how consumers rate the product? In short. and experts in cognitive neuroscience form another important team Consumer Science Insight . HUMAN SCIENCES The human sciences also play a part. and chemical engineers to work on incorporation of the new ingredient into a manufacturing process. For example a laundry project might have as its objective a new clothes washing liquid which keeps clothes looking newer for longer. how can we create products that do their job and enhance the consumer experience. MULTI-DISCIPLINED Everyone works in multi-disciplinary projects. The project team would combine the expertise of synthetic chemists to prepare or source new ingredients. 16 .Lux chemists with an engineering specialism work to make our products more effective and efficient.

NEW TECHNOLOGY TREASURE TROVE FOR COOL PLEASURES Unilever R&D opens global centre for Ice Foods in the UK & Italy. salads. ON THE MAP We have research and technology centres around the world. 17 . on the site where William Lever built the first factory over 100 years ago. from China to Brazil. PORT SUNLIGHT Where it all began. The centre will focus on composite food products such as meals. by cutting a giant pasta ribbon. Take a look at our R&D network. Italy. Take a look inside our biggest R&D centre.Lux RESTAURANT QUALITY FOR CONVENIENT FOODS AT HOME On 22 September 2008 we opened our latest global Centre of Excellence in Cisterna. snacks and bakery goods.

18 . the world's biggest tea company. PEOPLE PROFILES Some of our employees give you an insight into the opportunities in R&D in Unilever.Lux UNILEVER R&D OPENS GLOBAL CENTRE OF EXCELLENCE FOR NEW PRODUCT DEVELOPMENT Vlaardingen.Unilever R&D today opened the Centre of Excellence Structured Emulsions in Vlaardingen. Unilever opens global Centre of Excellence for Drinks Colworth Science Park. 4 March 2008 . the Netherlands. 14 May 2008: Unilever. today opened its global R&D Centre of Excellence for Drinks in the United Kingdom.

It’s also why we stay connected with – and connect together – our employees around the world. This insight is behind all our efforts to keep our people fulfilled and committed. rather than an organisation. This community is shaped and led by its people. they’re at the centre of everything we do. conducting surveys and ‘pulse checks’ which then feed into the future direction of our business. we think of Unilever as a community. their work/life balance. CENTRAL TO OUR BUSINESS Because our people are fundamental to the way we do business. LUX Limited Edition in a glitzy event at the Pearl Continental in Lahore at the hands of the new LUX ambassador Shaan and LUX girl Iman.Lux OUR PEOPLE In many respects. Their professional fulfilment. launched their latest offering. Unilever Pakistan launches new LUX with Shaan and Iman 06/03/2009 : Unilever Pakistan Ltd. who operate creatively within a framework of shared values and business goals. We grow as a company by growing our people. their ability to contribute equally as part of a diverse workforce… these are all issues to which we give priority. 19 .

"LUX has always focused on providing something unique to its consumers. Standing with Farah Mansoor. LUX Limited Edition. The teaser to the ad campaign shows a highly polished and suited Shaan getting ready to go to the grand premiere of the LUX Style Awards.Lux Unilever Pakistan launches new LUX with Shaan and Iman LAHORE: Unilever Pakistan Ltd.” he said.Ever since I can remember LUX beauties have been the most glamorous leading ladies of their time aur aaj mein bahut fakhr say keh sakta hoon that I am a LUX brand ambassador.“LUX aur Pakistani film industry ka aik ghehra aur intense naata hai. a product that calls for attention by its uniqueness in content. Speaking on the occasion. and of women who effortlessly commanded attention by their mystery. the Creative Director at 20 . was charming and urbane as he spoke of the thrill it gave him to be the new LUX Brand Ambassador. A seductive bathing bar with a bold fragrance. The two stars of Khuda Kay Liye then took to the podium as Iman quizzed Shaan about his new status as Pakistan’s first male LUX Ambassador.” The black soap bar is reminiscent of a bygone era of delicate. At the ceremony LUX also unveiled the new TVC that was shot by ace director Asim Raza. The launch of LUX Limited Edition is another leap in that direction. organised a glitzy event at the Pearl Continental in Lahore to launch their latest offering. in the city on 17th February. at the hands of the new LUX ambassador Shaan and LUX girl Iman. fragrance and colour. elusive scents. Shaan. the new black LUX reminds one of black roses and violets. The atrium lobby of the PC was festive with LUX banners and a very minimalist lounge stage." Most of the assembled press and media wanted to know who Shaan’s mystery woman was and before the advertisement was unveiled the lovely Iman glided down the escalator and was presented as the guest who would attend the next LUX Style Awards with Shaan. 2009. “LUX is a brand I have grown up with. The black soap is a special creation. with his stylish new look. UPL brand manager for LUX Zainab Pasha said. And he is thinking of his mystery woman and promising himself that he would encounter her tonight.

I think our marketing channel including all intermediaries we choose and support characters all contribute towards a competitive advantage over others. “LUX Style Awards are the most glamorous and fiercely contested show and may the best man. Other Key factors contributing in our competitive edge are: We have got biggest marketing channel network with respect to resources We have expertise of world’s best experts of this line We have labs for testing Our Brand image” 21 .” said Fareshteh Aslam. The channel is very well designed and well disciplined. styled by Shahzad Raza. We have a prominent competitive edge of our brand name and superior quality. We don’t give breathing space to our competitors. we are really tough to beat.Lux JWT. woman and creation win. I think one of Unilever competitive edge is their Marketing Channel. Let the nail biting and the back biting begin. looked every inch the stunning diva and Shaan clad in a Giorgio Armani suit looked debonair and glamorous. External Communications Manager for Unilever as she announced that the process for collecting portfolios for the next LUX Style Awards had started. Asim presented the ad which shows Shaan and Iman walking down the long red carpet. well trained teams and dedicated staffs are also our strengths. committed. “Iman and Shaan epitomise style and grace.” marketing channel as sustainable competitor edge: “Yes. The two then invited all consumers to be a part of the next LUX Style Awards by sending in LUX Limited Edition wrappers for the lucky draw. Iman. but our intensive distribution network.

and management of 22 .Lux PERFORMANCE OF MARKETING CHANNEL: “We monitor performances of each channel member very closely. We have policy of strong follow up” EVALUATION OF PERFORMANCE: “We evaluate performances on Monthly. so to improve the performance. second evaluation is on quarterly basis. We have scope of 8% Commission on Total Sales (According to Target). Quarterly and Annual Basis. First actions are taken on monthly reports. Due to Unilever commitment towards serving the customers. and Sales force according to performances. We follow a very structured or a highly systematic approach of measuring performance. ” BASIC FUNCTIONS DISTRIBUTION DEPARTMENT “We have to perform and monitor warehousing. And we distribute that to our Distribution. its obvious that we monitor and evaluate our performances and results more frequently. recovery. which helps us to see what is going wrong or what is going well. that is done through a disciplined process and talented staff. quarterly reports and annual evaluations to before setting new targets or to change the strategy. Unilever is more conscious on improving their performances. Our service quality department is also involved in the process and we work on monthly reports. We also distribute awards of achievements on outstanding performances. payment management. delivery and supply chain management.

smooth flow of supply chain and feedback management.” Channel Strategy “The company has designed the channel system keeping in view with the maximum participation of its retailers. The company does not encourage wholesaler to be involved more than to a certain extent for the following reasons: Not to be derived by the whole sellers Don’t want their product to be used as” commodity” For controlling better as the less intermediaries. and reporting the progress to Head Office. logistics. It also includes reporting and handling the distribution process related problems. systemized Maximum coverage Maximum volume Maximum growth Maximum revenue generation responsibilities of a Distribution: “We take care of ware houses. The future strategy for the channel is to ensure increased penetration in retail outlets a. the less complex would be the supply chain” 23 . Customer satisfaction. Service presentable. Department of Sales and Quality Control are most interconnected.Lux transportation matters. offloading stock.” DISTRIBUTION GOALS: Our Distribution Goals are: sturdy time to competitor through service.

The company has direct approach to “key counts” giant retailers like MACRO . and order replacement. We don’t identify a specific segment due to nature of our product.” segmentation: “We cover almost every segment of market. The main reason of selecting the current marketing channel is to penetrate deep into right market in right time with best quality. and due to an effective distribution and sales network. The distribution has selected very few wholesalers for supply and main focus is to cater retail out lets as much as possible as per their extensive marketing approach.Lux Reason to chose the current marketing channel: “The current model of distribution that has been designed and followed by the company which was specifically chosen for PAKISTANI MARKET. Normal Supply is on Daily Basis.” 24 . But Lux is specially for young generation for both male and femals and most specifically is requirement of every individual. we normally don’t face a situation where there is a gap between supply and demand. HYPER STAR as they are not part of the distributors responsibility. Each Van carries almost 3000 cartons. They also supply Lux to strong retailers. MATRO .” order replacement system: “We use 100 vehicles for supplies to retail points. Their main whole sellers are located in main markets and main areas of Pakistan. each vehicle contains so many cartons of products. These vehicles are loaded from warehouses.

which is another important part of behavioral process. We also engage our top performing retailer and wholesalers into Annual Dinners and Appreciation Activities to keep them closer to Company’s core objectives and to keep a healthy environment intact” type of intermediaries: “We have Distributors. Warehousing all involved in our distribution system” Pricing Strategy: Unilever is using its name for the promotional activities and pricing strategies. we can punish them. we can block their payment in case of breach of contract.Lux Behavioral Processes: “Unilever has developed a strong trustworthy relation with not only its customers but also with its market fraternity. We frequently launch incentive plans for retailers to reward them with their good performance. Unilever cares about the customers. The behavioral process between the distribution system and involved intermediaries is so smooth and bonded that they hardly face any serious conflict. The communication between intermediaries is very clear and regular. Unilever prices are slightly higher than its competitors but due to the strong brand image and very effective marketing efforts we don’t face such problems with our higher prices. Retailers. Marketers. They hardly face any miscommunication problem. we can cancel the agreement in case of complaint. Area Distribution Managers have responsibility and Authority to resolve the conflicts between two parties. If targets are not achieved and any intermediary is not performing according to provided standards. and of course quality is superior too” 25 . We are maintaining our level of efficiency and always provide the best at best price.

where we place our products and keep the track of those numbers. and we focus on customer satisfaction through well planned distribution and marketing channel” Distribution Strategy: “We use intensive distribution strategy and we always struggle to make bigger our product to every retailer shop in the city. our brand image and superior quality product allows us to keep a set of higher prices in market and yet we are doing extremely well with those prices. Our distribution strategy is exactly following that idea. Our promotional and marketing campaigns are one of the best. every retailer. which is the gateway to reach end consumer or customer. we place our products at right places thought our intensive distribution network. We focus on quality which is product identity.” 26 . which provides product information takes complaints. Our distribution system reaches every market. We don’t compromise on our quality and price.Lux ROLE OF THIS DISTRIBUTION SYSTEM IN ORGANIZATIONAL GOALS: Unilever Organizational goal is to provide superior quality product to the end consumers in every targeted portion of the market. We have a very efficient product helpline. and every active segment of society. and provides an excellent communication channel to customers” role of your Distribution process in Marketing Mix: “Our Distribution system thoroughly supports our designed MARKETING MIX strategy. As we told you. In Short our distribution system which is intensive distribution system goes well according to plan. and in every market of an area. we are more focused on Retailers.

Product Availability But there are certainly many other factors involved in designing marketing channels.” Marketing Mix: We use the tactical marketing tools for marketing LUX.Lux key roles in designing marketing channel “We develop our marketing channel strategy with keeping in mind following key factors 1.Cost – Revenue Comparison 2. 27 . Gourmet has emerged as biggest threat recently with their lower prices and intensive distribution. We consider trend analysis and marketing research reports. But we are simply top of the line. and what they are going to do. The chapter comprises of four sections.2 visualizes the price of LUX according to different size. But again. Section 3.Quality of Services 3. In short there are many factors involved in it. Section 3. factors I mentioned above are most significant I guess” current market Share and competitor: “We hold about 69% of total market in this product line. We keep an close eye on what our competitors as doing. For example. People trust Unilever. from sales strategy to customer satisfaction reports. all these processes are influencing our marketing channels all the time. But we have cutting edge over all due to our brand and supreme quality. P & G.1 discusses the product attributes of LUX. Nestle are also doing well in this product line.

Its prices are almost equal to its competitor. Though manufactured in Pakistan for the local market by Unilever Pakistan Ltd. as an international brand. Place: Unilever Pakistan Ltd. LUX Nature Pure.3 conceptualizes the distribution channel of Unilever Pakistan Ltd. LUX is offered in Pakistan in six different flavors which are: LUX Energizing Honey.4 discusses the promotional activities that the company undertakes for LUX. The company has six huge warehouses.shows the location of its six warehouses in Pakistan. one in each division of Pakistan. LUX is produced in Pakistan from imported raw materials like sodium soap. Product: LUX is an internationally renowned beauty soap brand of Unilever. it maintains an international quality for the product.Lux Section 3. where the product goes after they are manufactured at Kalurghat factory. Price: Though Unilever Pakistan gives its LUX customers a lot in terms of the product itself. This section includes a table that shows the location of the company’s warehouses all around the country. 80gm and 120gm. Finally section 3. LUX Almond Delight and LUX Aqua Sparkle. However. 40gm. it cannot provide a better pricing. Taking into account the convenience of its customers. Beauty soap is a product with a vulnerable demand in Pakistan. The company does not use its own fleet of transport for distributing its product. glycerol and different extracts according to flavors. LUX Orchid Touch. it has outsourced its distribution process to various 28 . coming from Unilever plants situated abroad. Company carries out research on competitors’ price and brand loyalty when it feels extreme necessaity of chaging price. This is due to some constraints in the beauty soap industry. has a huge distribution channel for LUX all over the country as its sales reach more than 10 million pieces a year. The brand loyalty test is an exploratory research which is known as Brand Health. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. LUX Golden Glow. Formula given by Research and Development departments in foreign countries. compares Lux’s price with its major competitor. the company manufactures all flavors of LUX in three different sizes.

29 . This part of the report illustrates the market share of different companies in the beauty soap industry. it also promotes the brand for males and the company proved that.Lux third party distributors. Till now promotional activities of LUX has always been successful which has made it a household common name and helped it reach almost one billion taka sale value in the year 2009 2. over 400 of the world’s most stunning and sensuous women have been proudly associated with Lux advertisements. product quality. exclusively dedicated to Unilever Pakistan Ltd. Promotion: Unilever Pakistan undertakes huge promotional activities to promote LUX which has topped the beauty soap industry of Pakistan. Moreover it also undertakes small promotional campaigns at different schools. Analyzing the Market for LUX For better comprehension of Unilever Pakistan. Since the 1930s. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotional activities for LUX 1 It’s certain annual promotional campaigns like LUX Channel i Superstar and LUX Channel i Annual Cinema Awards has made the product a part of the glamour world. Unilever Pakistan Ltd spends a huge amount of money for promoting LUX through TV commercials. These distributors then supply the product all over Pakistan to a huge number of retailers. colleges. Even though LUX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Pakistan because of a recent increase in demand of its product to all segments of the population. universities and recreational parks with winners of its Zonal Beauty Contests. its marketing strategy. we present here a comparative analysis of its competitors. newspaper advertisements and billboards. by including world famous male celebrity Shan for their advertising campaign. They do not only promote LUX in Pakistan for the beauty conscious females. positioning and placement.

overleaf shows a detailed description of the major competitors in the market. their operating brand. Moreover a recent takeover of Aromatic by multinational consumer product giant MARICO who operates with famous brands in other industries like Parachute Coconut Oil is posing to be a threat to Unilever Pakistan’s market share. Moreover Keya Cosmetics Ltd operating with the brand name Keya and Marks & Allys Ltd operating with the brand name Aromatic are also uprising brands to both the rural and sub urban segment of the population.Lux Market Share: The beauty soap industry in Pakistan consists of only seven major producers. shows the market share of all the companies in the sector. estimated annual sales revenue and market share. as they have market share much less than Unilever Pakistan Ltd. Out of these giant companies Unilever Pakistan Ltd is the market leader with a share of around 69%. Unilever Pakistan Ltd is leading the market. The other competitors are very competitive among themselves but they cannot put a intense competition with Unilever Pakistan Ltd. Other companies in the industry are not as big as Unilever Pakistan Ltd but they are posing threat to the company by a tendency of a gradual increase in their market share. 30 . Kohinoor Chemicals which is operating with the brand name Tibet is an extremely famous brand to the rural segment of the population and possess a significant share in that segment which is the largest population group in Pakistan. Unilever Pakistan Ltd is operating in the industry with its world famous brand LUX.

Marketing manager take cares the promotional strategies of the products. 31 .Lux Urban Rich Urban and Sub Urban Upper Middle and Middle Class Rural Poor Market Segments 1. Manager try to use innovative ideas for the improvement of product in market. Hierarchy of marketing and sales department Marketing Manager is an employee who is responsible for planning and controlling its marketing activities and budgets .

the markets in which they are traded. Unilever do not focuses on Wholesaler based strategy. because retailers are the gateway to reach the customers/consumers. To accomplish their tasks.Lux Finance manager The field of finance covers the economics of the contingent claims. no matter where consumers are in Pakistan. the products reaches to ultimate consumers. 5. In conventional channel. Create a continuous improvement culture driven by performance measures and reward 4. Develop and manage simplified and effective supply network to achieve a high level of service 3. Finance manager and marketing manager are related with each other to meet their marketing targets. the products are distributed to retailers and from retailers. and the society at large. Financial economists study the valuation of these claims. Focus on retailers. In the first quarter of 2006. and make sure products are distributed to the consumers at the correct time. the company chooses both marketing channels method that is conventional and vertical. Unilever Pure Life is distributed among the wholesalers of Pakistan and from wholesalers. 32 . corporations. Unilever proved it by delivering an amazing 136 million kg of Unilever products in Pakistan. Unilever aims to put together processes from the farm to markets. the right cost and in the accurate quantities. It is important because alone marketing manager can not promote any marketing strategy without any budget. Market Distribution and Channels Strategy: Lux supply chain and distribution makes sure that products are accessible. The mission of Unilever Supply Chain is to: 1. and their use by individuals. Optimize and consolidate resources and processes for a low-cost but efficient 2.

Unilever Pakistan is providing LUX. at a price which is affordable to most of the people in the country. has been able to penetrate the market. international standard and high quality design. The only place where rival companies are progressing is in giving customers redemption offers. These offers are not sustainable in the long run but still it takes away a considerable part of LUX’s sale in the short run. As a multinational company Unilever Pakistan with heavy promotional activities.Lux Conclusion The beauty soap industry of Pakistan consists of a few producers in the industry. 33 . Beauty soap is an uprising product in Pakistan as a greater portion of the population. Its promotional activities. Its distribution process is highly efficient. With six different fragrances. LUX has been highly successful over the years. like the beauty contest has been a milestone in attracting a huge number of customers. Research revealed that Pakistani customers are highly attracted to this sort of offers. three different sizes. both male and female. as a product. Overall with its marketing activities LUX has been a successful brand. The demand for this product is very much vulnerable in terms of pricing. are now getting more beauty conscious.

Unilever Pakistan Ltd should expand their target market also towards the rural people. to adopt for a more successful operation in Pakistan with large market share. 34 . These are the recommendations suggested by teem members to Unilever Pakistan Ltd.Lux Recommendation In this the team would suggest some recommendations to Unilever Pakistan Ltd. to adopt more successful operation in Pakistan.Because Lux has different skin type soap so now if they provide different types of beauty soaps for male and female soapunder the same brand name i. LUX it might increase their sales. Lastly. as Pakistani culture children have a huge say in shopping so they should also promote the product to children like their another brand “Dove”.e. They should also conduct different promotional activities in rural fairs and socially responsible promotional activities to attract rural consumers and social awareness . Since a huge portion of the rural poor people is demanding LUX in recent days.

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