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....................................................................................................................... PAGEREF _Toc377548665 \h 4 Home And Personal Care........................................................................................... PAGEREF _Toc377548666 \h 4 Personal Wash (PW)................................................................................................ PAGEREF _Toc377548667 \h 4 Fabrics And Home Care.............................................................................................. PAGEREF _Toc377548668 \h 5 Fabric Wash............................................................................................................... PAGEREF _Toc377548669 \h 5 Home Care................................................................................................................. PAGEREF _Toc377548670 \h 5 Personal Product.......................................................................................................... PAGEREF _Toc377548671 \h 5 Hair Care..................................................................................................................... PAGEREF _Toc377548672 \h 5 Skin Care.................................................................................................................... PAGEREF _Toc377548673 \h 5 Dental Care................................................................................................................ PAGEREF _Toc377548674 \h 5 Oil And Dairy Based Foods......................................................................................... PAGEREF _Toc377548675 \h 6 Banaspati.................................................................................................................... PAGEREF _Toc377548676 \h 6

Cooking Oil................................................................................................................. PAGEREF _Toc377548677 \h 6 Margarine.................................................................................................................... PAGEREF _Toc377548678 \h 6 Industrial Fats............................................................................................................ PAGEREF _Toc377548679 \h 6 Beverages...................................................................................................................... PAGEREF _Toc377548680 \h 6 Leaf Teas.................................................................................................................... PAGEREF _Toc377548681 \h 6 Dust Teas.................................................................................................................... PAGEREF _Toc377548682 \h 6 Mixture Tea................................................................................................................. PAGEREF _Toc377548683 \h 7 Ice Cream.................................................................................................................... PAGEREF _Toc377548684 \h 7 Vision Of Lever Brothers Pakistan Limited.................................................................. PAGEREF _Toc377548685 \h 8 Mission Statement of Lever Brothers Pakistan Limited............................................. PAGEREF _Toc377548686 \h 9 Analysis Of Mission Statement................................................................................... PAGEREF _Toc377548687 \h 11 Mission Contents........................................................................................................ PAGEREF _Toc377548688 \h 11 Organization Philosophy....................................................................................... PAGEREF _Toc377548689 \h 11 Organization Key Value......................................................................................... PAGEREF _Toc377548690 \h 12 Critical Success Factor.......................................................................................... PAGEREF _Toc377548691 \h 13

Concern For Different Stakeholders................................................................... PAGEREF _Toc377548692 \h 13 Form And Sources Of Competitive Advantages................................................ PAGEREF _Toc377548693 \h 13 Scope And Types Of Mission................................................................................ PAGEREF _Toc377548694 \h 14 Objectives Of Lever Brothers Pakistan Limited And Attainment Of Objectives... PAGEREF _Toc377548695 \h 17 Objectives of Lever Brothers Pakistan Limited...................................................... PAGEREF _Toc377548696 \h 17 Attainment Of Objectives........................................................................................... PAGEREF _Toc377548697 \h 18 Specific..................................................................................................................... PAGEREF _Toc377548698 \h 18 Measurability............................................................................................................ PAGEREF _Toc377548699 \h 18 Attainable................................................................................................................. PAGEREF _Toc377548700 \h 19 Reliability.................................................................................................................. PAGEREF _Toc377548701 \h 19 Time Frame.............................................................................................................. PAGEREF _Toc377548702 \h 19 Attainment Of Objectives....................................................................................... PAGEREF _Toc377548703 \h 19 Strategic Management At Lever Brothers Pakistan Limited................................... PAGEREF _Toc377548704 \h 22 Corporate Level Strategy........................................................................................... PAGEREF _Toc377548705 \h 22 Business Level Strategy............................................................................................ PAGEREF _Toc377548706 \h 23

...................... PAGEREF _Toc377548715 \h 32 Branch structure.......................................................................................................................................................................................................................................................... PAGEREF _Toc377548721 \h 35 ....................................................................................................................................................................... PAGEREF _Toc377548716 \h 32 Structural Analysis........................................................................ PAGEREF _Toc377548709 \h 26 Acceptability...................................................................................................................................................................................................... PAGEREF _Toc377548708 \h 26 Suitability........ PAGEREF _Toc377548714 \h 31 Hierarchy.................................................................. PAGEREF _Toc377548718 \h 34 Threat Of Substitutes.......................................................................................................................................................................... PAGEREF _Toc377548712 \h 30 Organizational structure and management of Lever Brothers Pakistan Limited PAGEREF _Toc377548713 \h 30 Board Of Directors........... PAGEREF _Toc377548720 \h 34 Supplier Power.......................................................................................... PAGEREF _Toc377548719 \h 34 Buyer Power................ PAGEREF _Toc377548710 \h 27 Feasibility..............................Operational Level Strategy............................................................................................................................................................................................ PAGEREF _Toc377548717 \h 33 Threat Of New Entrants........................................ PAGEREF _Toc377548707 \h 25 Strategy Evaluation........................................................................ PAGEREF _Toc377548711 \h 29 Structural Analysis...............................................................

..................... PAGEREF _Toc377548733 \h 45 Out Bound Logistics......................................................................................................................................................................................................................................................... PAGEREF _Toc377548732 \h 44 Operations...................................................................... PAGEREF _Toc377548730 \h 44 Primary Activities Of Value Chain Of Lever Brothers Pakistan Limited................................. PAGEREF _Toc377548727 \h 40 Human Resource Management................................................................ PAGEREF _Toc377548729 \h 43 Procurement.................................................................... PAGEREF _Toc377548735 \h 46 1................................................................ PAGEREF _Toc377548724 \h 38 Explanation Of Value Chain....................... Poor Marketing................... PAGEREF _Toc377548731 \h 44 Inbound Logistics Of Value Chain Of Lever Brothers Pakistan Limited.............................................................................................. PAGEREF _Toc377548736 \h 46 ............................... PAGEREF _Toc377548725 \h 38 Supportive Activities.............................................Competitive Rivalry........................ PAGEREF _Toc377548726 \h 40 Firm Infrastructure............................................................................................................................................................................................................................ PAGEREF _Toc377548734 \h 45 Marketing And Sales.............................. PAGEREF _Toc377548722 \h 35 Structure Types In Multinational Companies.............. PAGEREF _Toc377548723 \h 35 Value Chain Analysis Of Lever Brothers Pakistan Limited............................................................ PAGEREF _Toc377548728 \h 42 Technological Development.....................................

.......... PAGEREF _Toc377548738 \h 47 SWOT Analysis................................................................................................................................................................. PAGEREF _Toc377548750 \h 56 Problems.......................................................................................................................................................................................................................................Services................................. PAGEREF _Toc377548747 \h 54 Socio-Cultural Factors....................................... PAGEREF _Toc377548740 \h 48 Weaknesses.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. PAGEREF _Toc377548748 \h 54 Technological Factors........ PAGEREF _Toc377548751 \h 56 ..... PAGEREF _Toc377548737 \h 47 A Transition In Value Chain.................. PAGEREF _Toc377548746 \h 53 Capital Markets........................................... PAGEREF _Toc377548749 \h 55 Problem Statement........................... PAGEREF _Toc377548744 \h 53 Political & Legal Factors............................................................................... PAGEREF _Toc377548745 \h 53 Economical Factors.. PAGEREF _Toc377548742 \h 50 Threats.................................................................................................................................................................................................................................................... PAGEREF _Toc377548739 \h 48 Strengths.............. PAGEREF _Toc377548743 \h 51 PEST Analysis.................................................................................................................................... PAGEREF _Toc377548741 \h 49 Opportunities......................................................................

............................................................................................................................................................ PAGEREF _Toc377548756 \h 61 SWOT Analysis Of Shampoo Product Line....................................... PAGEREF _Toc377548759 \h 62 Opportunities..... PAGEREF _Toc377548755 \h 60 Lifebuoy Shampoo................................................................... PAGEREF _Toc377548766 \h 67 ............................................................ PAGEREF _Toc377548764 \h 65 Middle Class............................................................................................................. PAGEREF _Toc377548760 \h 63 Threats..........................................................Internal problems....................................................................................... PAGEREF _Toc377548763 \h 65 Upper Class.......................................................................................................................................................................................................................................................................................... PAGEREF _Toc377548752 \h 56 External problems......................................................................................................................................................................... PAGEREF _Toc377548753 \h 59 Introduction Of Sunsilk And Lifebuoy.............................................................................................................................................................................................................................................. PAGEREF _Toc377548761 \h 64 Competitors¶ Analysis............................................. PAGEREF _Toc377548758 \h 62 Weaknesses............................................. PAGEREF _Toc377548754 \h 60 Sunsilk Shampoo........................... PAGEREF _Toc377548765 \h 65 Sales Analysis............ PAGEREF _Toc377548757 \h 62 Strengths........................................... PAGEREF _Toc377548762 \h 65 Direct Competitors.....................................................................................

.............................. PAGEREF _Toc377548775 \h 71 Existing Strategies Of Sunsilk............................................................................................................................................................................... PAGEREF _Toc377548781 \h 73 ................................................................................ PAGEREF _Toc377548773 \h 70 Strengths Of P&G...............................................Pentene Of P&G....................................................................................................... PAGEREF _Toc377548774 \h 70 Weaknesses....... PAGEREF _Toc377548771 \h 68 Unbranded Shampoos & Soaps........................................................................................................................................................................................................................................................................................ PAGEREF _Toc377548778 \h 72 Promotion Strategy........................................................................... PAGEREF _Toc377548768 \h 67 Indirect Competitors....... PAGEREF _Toc377548767 \h 67 Sunsilk Of Lever Brothers Pakistan Limited........................................................................ PAGEREF _Toc377548772 \h 68 Strengths And Weaknesses Of Competitors....................................... PAGEREF _Toc377548777 \h 72 Pricing Strategy..................................................................................................... PAGEREF _Toc377548779 \h 73 Placing Strategy....................... PAGEREF _Toc377548776 \h 72 Product Strategy................................................................................................................................................................................... PAGEREF _Toc377548770 \h 68 Branded Soaps...... PAGEREF _Toc377548769 \h 67 Imported Shampoos................................................................................................................................................... PAGEREF _Toc377548780 \h 73 Suggested Strategies...................................

............................................ PAGEREF _Toc377548785 \h 74 Existing Strategies Of Lifebuoy.................................................................................................................................................... PAGEREF _Toc377548794 \h 76 Implementation............................................................................................................................................................................................................................................. PAGEREF _Toc377548783 \h 74 Promotion Strategies................................................................................................................................ PAGEREF _Toc377548793 \h 76 Market Development.......................... PAGEREF _Toc377548782 \h 73 Pricing Strategies........................................................................... PAGEREF _Toc377548791 \h 76 Market Penetration..............................................................................................................................................Product Strategies................................................... PAGEREF _Toc377548789 \h 75 Promotion Strategy................ PAGEREF _Toc377548788 \h 75 Place (Distribution) Strategy........................................................................................................................ PAGEREF _Toc377548790 \h 75 Suggested Strategies............................ PAGEREF _Toc377548784 \h 74 Place (Distribution) Strategy...... PAGEREF _Toc377548795 \h 76 ........................................................... PAGEREF _Toc377548792 \h 76 Implementation.. PAGEREF _Toc377548786 \h 75 Product Strategy....................................................................................................................................................................................................................................................................... PAGEREF _Toc377548787 \h 75 Pricing Strategy.........

Unilever PLC London is its parent company. 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. Unilever is a European based company with headquarters in London. These two companies in term of: y y Buying raw material Selling finished goods . They deal in all kinds of products from animal foodstuff to foods and detergents plus other personal and consumer products.Organization Introduction Lever Brothers Pakistan Limited is a multinational organization. Unilever has its subsidiaries in over 80 countries of the world. 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. and their shares are quoted at the stock exchange of several European countries. to which it spreads its vast knowledge and resources.

These problems led to think of the mergers in 1930. packaging and marketing of tea. 24% by individuals. The proposed merger will benefit the consumer in term of price and quality. Lahore and Islamabad Stock Exchanges. The company employ around 850 persons. Unilever has 500 operating companies in 80 countries. 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. 21% by financial institutions. As a result of merger Lever Brothers Pakistan Limited was incorporated as an independent Unilever operating company in 1955. Mehran International Limited and Ambrosia International Limited. 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. Its head quarter was established in England and Rotter Dam. and 10% by insurance companies. 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.Consequently both the companies loosing out money in term of profit. The global business proportion is 60% in Europe 20% in North America and 20% in rest of the world. It has 0. The company is quoted on Karachi and Lahore Stock Exchange market. Acquisition Lever Brothers Pakistan Limited acquire the shares of Pakistan Industrial Promoters Limited. And has three manufacturing locations situated in Karachi and Khanewal. The company is quoted on the 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. It also have three regional sales offices. Lever Brothers Pakistan Limited¶s main divisions of business are: Merger With Brooke Bond Brooke Bond Pakistan Limited was incorporated in 1948. . management and financial resources. An identified board of directors control the activities of subsidiary companies throughout the world. The company is manually engaged in the blending.3 million employees and turnover of sales in 23000 million pounds. Company¶s 40% shares are held by Unilever. It also has a small business in the sale of packing apices. Lever Brothers Pakistan Limited has around 1900 employees in Pakistan. Lever Brothers Pakistan Limited started its operations in 1948. which is known as Polka Group of Ice Cream Companies. The head office of the company is located in Karachi.

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. 100mg. Lever Brothers Pakistan Limited has both product length and depth i. So different no of product lines are called product length and no of products in each product line are called depth of product line. family pack or in case of ice creams different brands have lots of flavor available which determines its product depth. 1000mg. 500mg. it has by length a largest of product lines available and under each product line there are lots of variants like different weights. 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 . sache pack.e. It stand at a unique position due to its honesty and integrity.

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 .

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) .Industrial Fats A whole range of product for bakery and oils for the industry.

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

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. So. .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.

Competitive advantage will also be developed by driving down relentlessly on relative cost positions and outpacing competition in operational efficiency improvement. Lever Brothers Pakistan Limited will develop a strategically focussed organization and will motivate its personnel to use its full potential of creativity and commitment. ice creams and spreads: a leading position in tea. . hence doubling the size of our business over 5 years and thereby delivering superior value creation. understanding their evolving needs and focusing on constant delivery of superior value for our brands through innovation. 6. It will also leverage Unilever¶s best practices and maintain the highest standards of operational control. 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. 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. hair. We will aim at delivering a 15% UVG rate. skin. its consumers and the environment. personal wash. building brand loyalty and strong distribution in the market. 3. 5. 2. 7. Through its commitment to high levels of care and safety for its employees. dental and household care and a sustainably profitable position in cooking oil and fats. To achieve these standards of performance.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. 1. Lever Brothers Pakistan Limited will be exemplary and will participate in the dissemination of such practices in Pakistan. 4. We shall establish Unilever¶s core brands in Afghanistan.

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.g. The development of their potential is core to Lever Brothers Pakistan Limited business. With a questionnaire for suggestion for further improvement on the top of which is written ³WE CARE ABOUT YOU´. Integrity Lever Brothers Pakistan Limited never compromise on integrity management adhere to high standards in all they do. Suppliers Suppliers are considered the partners of Lever Brothers Pakistan Limited and Lever Brothers Pakistan Limited maintain mutually beneficial relationship with them. Environment responsibility Management adhere to all national and Unilever standards to ensure health. So they provide extensive attention to developing human resources. Customers Lever Brothers Pakistan Limited is the customers focus organization. Their brands always deliver the high quality as they premise. They do delight customers with their products and service. Lever Brothers Pakistan Limited pays extra attention to the complaints of consumers. 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 .Analysis Of Mission Statement Mission Contents Organization Philosophy People Peoples are key to strengths of Lever Brothers Pakistan Limited. e.

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. Lever Brothers Pakistan Limited will be exemplary and will participate in the dissemination of such practices in Pakistan´. go for innovation. suppliers. Lever Brothers Pakistan Limited¶s field of operations is the consumer products and business and this is very clearly stated in their mission statement. 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´. employees. The mission statement outlines this as ³adopting a broad view of our market. 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. First be foremost consumers and then other stakeholders and describes it as: ³Through its commitment to high level of core and safety for its employees. customers and community at large. its consumers and environment. Organization Key Value It defines that what do they want.This factor indicates where they are going to compete. Concern For Different Stakeholders Mission statement describes that what are the obligations to different stakeholders i. . 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. So. Lever Brothers Pakistan Limited¶s mission statement contains concerns about all stakeholders. stockholders. 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. Form And Sources Of Competitive Advantages Mission statement of Lever Brothers Pakistan Limited completely describes the form and sources of competitive advantage as: ³Competitive 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´.e. employee commitment to organizational objectives and mission and creating value for customers.

Scope And Types Of Mission Are the external dimensions covered? Global Mission Organization Mission Market Mission No Mission Yes No Yes .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.

Lever Brothers Pakistan Limited wants to be market leader in consumer products.No Are the internal dimensions covered? The mission of Lever Brothers Pakistan Limited covers both the external dimension (product market domain. As both the dimensions are extensively covered so we can say that the mission of Lever Brothers Pakistan Limited is global mission. organization key values. The very first 3 points are all customer focused and has provided customer value as their main focus. critical success factors) and internal dimensions (philosophy. Now we can further go for rating of mission of Lever Brothers Pakistan Limited on a scale of 1-10 for testing of mission. form and sources of competitive advantage. It enjoys greatest market share as compared to competitors by providing superior quality products. And this is reflected in mission statement. which is as under: Testing The Mission Does the mission statement make it clear what the organization stands for and why it exists? Does the mission statement makes it clear where we have to compete and 10 5 . we can say that the mission statement of Lever Brothers Pakistan Limited is a global mission as according to the following exhibit. and concern for different stakeholders) so therefore. And customer value is what they value.

to define the business in such a manner which is important in overall strategic management. . and performance evaluation or in short it fulfills the essential role i. will it motivate us? Does the mission statement tell us what we should be doing and what we should not be doing? Total 8 10 10 10 5 10 5 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.who are our customers? Does mission statement tell us the values we should adhere to in working of this organization? Does mission statement make it clear what we have to be good at to survive and prosper? Do different parts of mission statement hand together. does it make sense? Is the mission statement short enough so that people can understand it? Is the mission statement well written enough so that people will remember it? Is the mission statement challenging and exiting.e.

4. 1. how they spend their lives.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. They want to have consumer connectivity. 5. 2. 6. So in this way they wan to be very close to customer. They want to be cost efficient i. Attainment Of Objectives An objective or set of objective to be ideal must be ³SMART´ i. 7.e.e. avoidance of hit and trial approach and hitting the right target with right strategy at right time in right and accurate manner.e. distribution and packaging cost and finally reducing all the human cost to offer a competitive price to customer maintain the high standards of quality. what are their preferences. 4. 2. 8. 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. 5. Specific Measurable Attainable Realistic Time frame . i. Be exciting to their customers with stream of innovative products. they want to reduce in their cost of production. Have entered and will be aggressively developing new markets. drink. Lever Brothers Pakistan Limited has an objective to have a responsive supply chain and technological based processes.e. they want to know what they eat. 3. cost of transportation. 3. To be no in all their existing markets. To have a partnership with their suppliers to enable them to provide high quality low cost material.

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

3. Lever Brothers Pakistan Limited initially developed a sense of consumer to use washing powder other than washing soap. 2. It also works for the welfare and interest of Pakistan. which had no goals. Since every company is formed to accomplish certain objectives. it is now obsolete. premium segment detergents. popular segment of washing powder and than the market share for Sunlight soap declined with passage of time. So Lever Brothers Pakistan Limited also has targets before it. as a result marketing strategy of Lever Brothers Pakistan Limited awareness of people. If there are any indication that any item is not good from profit point of view. .e. Profits Consumerism 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. people switched to surf and wheel i.e. now the consumer who realized the convenience of washing powder started using it. 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. There is no company. They pay much attention on the customers¶ complaints. 1st of Sunlight soap and Sunlight washing powder of Lever Brothers Pakistan Limited. consumer switched s a result towards Sunlight washing powder. i. Developing quality and want satisfying product. which caused the people to switch from Surf to Arial. Company also takes into consideration the welfare of the consumer. Lever Brothers Pakistan Limited realized the fact due to disturbance in sale volume of Surf and introduced new brand name ³Surf Excel´ with extra brightness power. it will try to find out the reasons. It takes into mind the taste and habits of the customer. These main targets and objectives are: 1.e. The reason behind was introduction of competitor¶s brands like Arial by P&G which had brightness features. Company will introduce different marketing strategies if there are problems in marketing. Here I would like to code two very famous examples.4. as it is an environment friendly organization. Will soon what steps should be taken to overcome these reasons. Second example is related to the change of brand name of Surf to Surf Excel. but at the same time.

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. 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. As means of diversification which are being utilized by the Lever Brothers Pakistan Limited as all the time. Here we can take the example of the acquisition of Brooke Bond and Polka for example which have Brother acquired through a hostile takeover. Diversification strategy is being pursued by the Lever Brothers Pakistan Limited but they mainly go for related diversification as against unrelated diversification for conglomerates.e. Business Level Strategy At business level Lever Brothers Pakistan Limited is adopting a very unique and interesting set of strategies. Through vertical diversification they will be able to eliminate the operational complexity and costs of buying and selling i. been acquisition. Corporate Level Strategy At corporate Lever Brothers Pakistan Limited is pursuing the strategy of vertical diversification i. 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. they are diversified into number of businesses as mentioned earlier but they are all related to consumer products. driving away from the previously adopted strategy of vertical integration i. First cost efficiency is achieved through outsourcing operations and stop producing themselves and go for cost efficient subcontracting. neither joint ventures i. The outsourcing the production so that they don¶t have to invest heavily in the production and to reduce the capacity problems.e.e. strategic alliances nor the internal development. First we will discuss the corporate level strategy. Now they mainly wanted to step away from operations and want to focus more on customers. Second they want to achieve cost efficiency through responsive and cost efficient supply chain. instead of producing themselves and going into complex operations now they want their suppliers to produce for them. First and foremost strategy they want to follow is the cost leadership.e.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. They wanted to control cost as much as possible and want to reduce cost by every mean. 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. the transactional costs. 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 .

to avoid cannibalization effect now instead of number of brands to flood in the market only few better and improved brands. 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. stock. dandruff conscious market segment with the launch of only new variant i.e. 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. 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. cash generating and more focused towards customers.e. Operational Level Strategy At operational level. Surf Micro. Lever Brothers Pakistan Limited has always adopted the strategy of TQM only never went for CPR i. Sunsilk antidandruff white. The response was quite encouraging. Pink. they have increased their sales. So. Hence basically customer and market research and customer feedback. They have added conditioner in it as initially the conditioner was missing in all shampoos of Sunsilk. their did before and after lunching while antidandruff Sunsilk. Here Lever Brothers Pakistan Limited has used the strategy of product development i. 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. by modifying and improving their Sunsilk it into Sunsilk antidandruff (white). demand and supply.e. and in Sunsilk number of variants.better forecasting through computer networks so to get the real time information about the inventory. Other than these two strategies another very important strategy is being followed by tge Lever Brothers Pakistan Limited i. Black. etc. 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. The do pre-launch. e. 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.e.e. Green. post-launch research. they have not come up with a new brand in last few years. they have adopted the strategy of consumer connectivity i. Power Surf etc. To get customer connectivity they do the market research to check the trends of their customers.g. 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. They are applying ³Market and Development Strategy´ as well in which by introducing present product (Sunsilk) into a new demographic area i.e. . While it is available in competing brands of P&G.

Suitability Acceptability Feasibility . etc. 1. As an objective of consumer connectivity. 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. And then we will evaluate these strategies on three types of evaluation criterion. if we go through all the strategies being mentioned earlier. 2.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. So these strategies are true measures to achieve those objectives. 3. Now as against the objectives. then we can see that all strategies are true reflection of the objectives being targeted by Lever Brothers Pakistan Limited. 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.e.

whether the suppliers would be able to meet the quality standards or not. 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.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. he said.Suitability Suitability is a broad assessment of whether the strategy addresses the circumstances in which the organization is operating.e. And as we inquired it from the branch manager of Lever Brothers Pakistan Limited. 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. next factor is that whether strategy can exploit the core competencies of the organization or not. its pretty much assured that returns would definitely be enhanced when the cost would decrease and strategies would result in better quality products. Other than this. For example. 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. 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. But the elements of risk is there which could be quite significant in the case of subcontracting. 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. All these strategies are not only suitable to the present condition but are prerequisite for future success as well i. 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. success lies at cost reduction and superior quality which the Lever Brothers Pakistan Limited has successfully opted for. Now a days. 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. 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 . In case of returns. 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.

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.e. Feasibility Feasibility is concerned with whether the strategy could be made to work in practice or not. 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. as an overview. So assessing. quantitative assessment. which is beyond the scope of this report. so. 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.with the organization. all strategies seems feasible and some of them has already been implemented as well like the reduction in brands etc. And its more concerned with the assessment of practicalities of resourcing and strategic capabilities i. .

N. 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. Vellani Mr. Bandaranayake (Director Commercial) Mr. Lee (Director Sales) Mr. 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. Syed Babar Ali Mr. Clive David Welland Board Of Directors The board of directors control the whole operation of the organization it includes the following personalities: Mr. The committee includes: Mr. Lain Strachan Sangster Mr. Perwaiz Hassan Khan Mr. He leads the seven members management committee. Lee (Business Unit manager ODF) (Director Food Business) . J. Management committee members are each responsible for specific function. Khockhar Mr. which is the top of decision making. Mujib-ur-Rehman (Chairman & Chief Executive) (Vice Chairman) (Technical & Logistics Director) Mr. Mashkoor Alam Mr. D. A. Mujib-ur-Rehman Mr. Perwaiz Hassan Khan (Director Personnel) Mr. J. A. Fateh Ali W. A. I. The chairman is the executive officer of Lever Brothers Pakistan Limited. Lain Strachan Sangster Mr.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.

M. The top management of the company is fully professional specially marketing department which is headed by Mr. Abdul GhaniBachani Mr.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. Punjab. N. Bandaranayake Mr. who is also involved in many other organizations i. Asadullah Sheikh Mr. A.e. Patel Mr. Jeff Lee who have world wide experience in this field. It includes in its board meetings one member from each province i.e. Clive David Welland Mr. D. S. Dr. The management of the company includes Syed Babar Ali as director. NWFP and Baluchistan. Packages and other industries. Sindh.

Hierarchy Branch structure .

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. . now let¶s turn our discussion to five basic forces. To continue with structure analysis discussion. senior management can be over burdened with everyday operational issues. then CEO. 3. 5. Threat of new entrants Threat of substitutes Buyer power Supplier power Competitive rivalry. spread and cooking category.All over Pakistan 6 branches of Lever Brothers Pakistan Limited are working. which determines an organization¶s structure i. and the functional directors to take a strategic perspective on problems. etc. 4.e. 2. And these categories are headed by one product manager and assistant manager. So. The chairman and management committee as well as the most of the department heads have their offices there. accounting. 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. etc.e. Its head office is located in Karachi at Avari Towers. 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. Structural Analysis Lever Brothers Pakistan Limited has a functional structure i. 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. its based on the primary tasks that have to be carried out such as production. finance. 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. 1. marketing. vice chairman.

Threat Of New Entrants This potential threat always exist in every organization. Buyer Power To determine buyer power one condition is always necessary i. no body would like to loose a buyer like Lever Brothers Pakistan Limited so. spread. since the structural implications can be significant. Threat Of Substitutes Same as in the case of new entrant no as such threat they are facing. Structure Types In Multinational Companies The growth in the size and importance of multinational business warrants some special mention. But this condition is not present in case of Lever Brothers Pakistan Limited. such as: . Competitive Rivalry Competition is intense but not cut throat competition and all of them avoid frontal assault or direct attack. 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. the buyers are few so they exert power over an organization. So. so. etc. situation of healthy competition exist. they face no threat of any new entrant.e. 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. Competitive rivalry would be discussed more in detail in the section ³competitor analysis´. fabric care. they don¶t face any significant supplier power. 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. On the basis of these factors there are generally four types of multinational structures. 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 ³customer is king´ and they do have to pay a lot of attention to buyers being a consumer product company. they are enjoying the highest market shares in most of their product categories like ghee. oil. soaps.

International Decisions Global Product Companies International Subsidiaries Transnational Corporations Global Coordination Low Low High High .

then sustaining the culture and system to make the network operates efficiently or in . in which: 1. Unilever has assumed the structure of transnational corporations in which they have developed structure.Local independence & responsiveness In all the four structures. 2. 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. The corporate center manages a global network by first establishing the role of each subsidiary. but is a source of ideas and capabilities for the whole corporation. Each national unit operates independently.

But in contrast US companies with a large domestic market tended to favor ³international divisions´ and now they face two challenges: 1. Unilever has well coped with these challenges by adopting the transnational corporation structure.a way we can say that they have combined global and multi-domestic strategy. 2. Barriers between their separate strategic views of the domestic and international business. . Companies. which originated in many European countries such as Unilever or Nestle needed to internationalize their activities at an early stage. The issue of local autonomy. owing to the small size of their home markets. There are interesting differences between countries in the way that global strategy tend to develop. This took the firm of ³international subsidiaries´ but now their challenge is to reduce the local autonomy and increase global coordination. staying independent and responsive towards local or national market and yet not loosing touch or coordination with the worldwide network and parent company.

³Customer value´ is a function of factors that usually fall into one of three broad categories those that differentiate the product. P R I M A R Y A C T I V I T I E S 1. those that lower its costs. 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. LBPL has long term win-win relationships with suppliers passing through cost saving. For their raw material procurement they have opted ³outsourcing´ strategy. Lever Brothers Pakistan Limited handles this situation with ³near to JIT system´ i. Through this system the suppliers of raw material are well connected through computer terminal. 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. called Automatic Replenishment System.e. inventory level is reflected on supplier terminal and on specific interval they ship the raw material automatically which reduces time for repeated requisition. the firm should be able to change more and/or incur lower costs either of which will lead to higher profit margins. . 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. Explanation Of Value Chain Lever Brothers Pakistan Limited is basically focusing on cost leadership in branded shampoos market. MIS provides necessary data in real-time 2. or those that allow the organization to respond to customer needs more quickly. Many contents of shampoos are procured from Europe. America. Far East and some of raw material is locally available it increases the lead-time. Outsourcing of local raw material from local supplier reduces cost 1. If each part of the business produces value. the detail and current level of all raw materials.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.

Process of shampoo is reliable and no fluctuation. 1. Experiences effect has raised efficiency due to very old operations without any major turn around in production. Economies of scale in plant of RYK reduces cost of manufacturing.2. 2. 1. Due to high lead-time and value chain is long for inbound logistics. Poor marketing advertisement. Automatic replenishment system solves this problem. 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 . No personal or formal relationship of brand manager of LBPL with retailers. 2. 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. 3. 1. 3. No visits to dealers retailers and wholesalers.

Ac ti vi ti es Inbound Logistics Operations Outbound Logistics Marketing and Services .

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. Normally for sache packs 8 lanes are processed at a time in one lot. which not only shares the information within the organization i. Lever Brothers Pakistan Limited has to purchase all packaging material from Packages Limited Lahore. Moreover they have some arrangements with hair exports to furnish their product knowledge. 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. the lot is packed and delivered to the wholesaler. Packaging material is typically not available around factory area. Outbound logistics start from here on demand of 6 depots of Lever Brothers Pakistan Limited. Marketing research department is also sharing consumer research data to improve their standards according to customer demand and trends e.e. These ingredients are processed (both local and imported) in the machinery specifically designed for this purpose.g. They have knowledgeable expert top management and middle management who have expertise in the consumer goods fields. Lever Brothers Pakistan Limited but also with their suppliers and wholesalers as well. This saves their time and gives them real-time information.After releasing the material from customs the ingredients are shipped to Rahim Yar Khan Plant. 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. Supportive Activities Firm Infrastructure Lever Brothers Pakistan Limited has a well established infrastructure. They have a very good and effective management information system. After packaging of shampoo bottles and sache passes through distributor to retailer. But this has been done very late and . Primary packaging material includes bottles and sache packaging while that of secondary material includes the cartons. Hence both primary and secondary packaging material comes from Packages Limited Lahore.

Hence we can say that there is healthy type of network among Lever Brothers Pakistan Limited staff¶s department. We can surely say that Lever Brothers Pakistan Limited has a skilled. healthy pay scales. procurement manager putting his efforts for the purchase of high and right quality making inbound logistics.e. Due to necessary training. 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. communicative management and officers staff. and other staff. which enhances their efficiency to support the primary activities of value chain of shampoo product line of Lever Brothers Pakistan Limited. marketing managers. Which reduces the employees turnover to minimal. expert. . Hence infrastructure contributes as a supporting activity for providing value to the customers and on some aspects e. research and development managers. 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. centralized decision making and late implementation it proves to be a weak support. balanced empowerment. Operations / brand manager is focusing ensuring the relationship of the shampoo production. They have both formal and informal network of communication in their organization to complete the tasks and target efficiently and effectively. Lever Brothers Pakistan Limited offers the training programmes and arranges seminars for further skill development and career development purposes of its brand managers.g. 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 say this is due to long term approach to strategy formation and implementation of Lever Brothers Pakistan Limited. 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.implementation is also very slow. informal and formal combination of communication network the job satisfaction of each and every employee is very high. All of them contribute a lot and positively for the support of value chain primary activities i. qualified.

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. Lever Brothers Pakistan Limited is all the time connected via its management information system with their suppliers. 2. Hence this very element has also been supportive in value chain of Sunsilk and Lifebuoy shampoo. But here we would like to add that one thing is missing as a support of value chain i.e. from large shopping stores to small shop covering both rural and urban areas. For purchase of local raw material Lever Brothers Pakistan Limited is outsourcing with its suppliers.Sales and distribution manager of Lever Brothers Pakistan Limited is ensuring the complete coverage of retail outlets of Pakistan. Hence they get the quantity discounts and manage lead time as well.e.e. He ensures that all variants and sache and shampoos of Lever Brothers Pakistan Limited are available on each shopping outlet of Pakistan i. They have get very good long term relationship with their suppliers of local raw material as well. . Lever Brothers Pakistan Limited purchases its most of the contents of shampoo from foreign countries like America. Procurement Procurement especially of raw material contents and packaging material is critical to the product and ultimately to the organization¶s success. Primary Activities Of Value Chain Of Lever Brothers Pakistan Limited Inbound Logistics Of Value Chain Of Lever Brothers Pakistan Limited 1. But still Lever Brothers Pakistan Limited are laggards in bringing this improvement. P&G. 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 is focusing on the outsourcing for the purchase of basic inputs with their suppliers. Europe and Far East. launch of antidandruff white shampoo. Lever Brothers Pakistan Limited mainly through its R&D department has recently brought a major improvement in its Sunsilk shampoo i. good relations of Lever Brothers Pakistan Limited marketing and sales manager with their retailer and distributors. The procurement system of Lever Brothers Pakistan Limited is mostly globally centralized and is long term as well.g. 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. Instead of backward integration they believe in outsourcing which reduces their cost. Due to this retailer give preference to the competitor¶s brands of shampoos e.

This element gives reliability to final consumer. Final product of shampoo of Lever Brothers Pakistan Limited is shipped to its 6 depots via truck on the demand of these depots. they have very old operations and product method as there has been no major turn around in production methods of its shampoo. They bear this cost of transportation. 2. Out Bound Logistics 1. Hence production process of both Sunsilk and Lifebuoy is reliable i. Rahim Yar Khan has to follow the predefined production process given by parent head office of Lever Brothers Pakistan Limited. Experience effect has raised efficiency. Whole Sellers have to add value themselves. 100% coverage of outlet is the major strength of Lever Brothers Pakistan Limited.3. 3. . medium size stores. small shops. Lever Brothers Pakistan Limited ensures availability and visibility of its shampoos as each and every large store. there is no fluctuation. 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. Lever Brothers Pakistan Limited covers all the retail and shopping outlets of Pakistan. Lever Brothers Pakistan Limited has a factory at Rahim Yar Khan in which they produce different products array with shampoo. Since Lever Brothers Pakistan Limited¶s buying is centralized same is the case with production and operations methods as well. 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. 2. Hence Lever Brothers Pakistan Limited has suppliers and Whole Sellers power over its wholesalers and gives cost cutting edge. Within these 16 years they have got experience.e. Operations 1. Lever Brothers Pakistan Limited has been in shampoo product line since 1984.

Services Lever Brothers Pakistan Limited has good ³service´ in terms they offer free samples for the relaunch of Sunsilk. males and kids. Lever Brothers Pakistan Limited has no strategy to make good relations with retailers. Lever Brothers Pakistan Limited becomes able to incur lower costs which leads to higher profit margins. which helps as a primary activity. Head & Shoulder. Hence all the above individual activities (i.e. they are outsourcing with their suppliers and subcontracting with them to ensure reliability of raw material. formulated on system and implementation of results of R&D Department research based on customer connection in very late. primary and supportive activities) contribute to enhance customer values and ultimately improves firm¶s financial performance. 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. discount or prize scheme to retailers on its shampoos which the retailers often demand.Marketing And Sales 1. 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. 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. Lever Brothers Pakistan Limited has never offered any major incentive. . A Transition In Value Chain Lever Brothers Pakistan Limited is now focusing as extended value chain i. Poor Marketing Lever Brothers Pakistan Limited has very poor marketing of their product. Retailers think that prize incentives with product or any other prize scheme offered to retailers or consumer etc enhance sales. 3.e. Lever Brothers Pakistan Limited has never paid any head to it. They mainly focus on females for Sunsilk and ignore the rest potential market. 2. They concentrate only on ³Nabila´ as their celebrity.

5. etc. 3. 12. Another major source of strength for Lever Brothers Pakistan Limited is its product targeting all income groups. marketing. Surf.SWOT Analysis The SWOT analysis of Lever Brothers Pakistan Limited are as follows: Strengths 1. 7. Breeze beauty soap. Which other do not have. They are market leader in ice cream business of Polka i.g. technical and production. The company is very strong financially. Taza Chai. So. Wheel washing powder. 2. 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. providing quality with economy as well e. 6. They understand the . 10. Lever Brothers Pakistan Limited is the largest producer of consumer products in Pakistan and has strong brands in every field such as Close Up. Lever Brothers Pakistan Limited enjoys the services of highly professional management in the area of sales. 4. The company is working for almost 50 years in Pakistan. Dalda. Lux. It has the largest and efficient distribution network then any its competition. Lever Brothers Pakistan Limited is providing products total income groups i. Lever Brothers Pakistan Limited is the oldest company operating in Pakistan which gives him a commanding position is Pakistan to certain extent. Lifebuoy. horizontal integration with hostile takeover they have captured their competitors thereby reducing competition.e. That¶s why it has many advantages. it can invest further product innovation and development. The company has the assets of more than 5 billion. 8. Lever Brothers Pakistan Limited having the biggest shares in tea market having the biggest brand Lipton and Brooke Bond. 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. They have know how of the market. 9. 13. 11. etc. Lever Brothers Pakistan Limited is the only company in Pakistan which has its own corner research department.e.

Another advantage is there wide range of products.g. its formula. 4. low market share. People will definitely go for these products as Lever Brothers Pakistan Limited has a sound image in people¶s mind. 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. etc. 2. So why not to go for new name and new formula as it will increase your brand portfolio.e. Emphasizing only few products while ignoring others which could give them potential market shares e.e. With the help of further advertising their non competing brands can increase their market share i. 3. trends of people Opportunities 1. New variants of the company were not able to sustain in the market such as harmony. Surf Micro to Surf Extra.e. jelly. It is estimated that over more than 30% of a retailer¶s shop items are by this single company.then to Surf Ultra and then to Surf Excel. Weaknesses 1. e. market penetration strategy. 3.e.g. Similarly during this period they have developed a very organized distribution network all over the country.g. Lever Brothers Pakistan Limited relaunches most of its products with same name or little change in the name e. strategic partnership with their suppliers. 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. 5. with little change of name and little changes in its formula. 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. Lever Brothers Pakistan Limited unable to capture shampoo and toothpaste market i. These products can prove a ³cash 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.g. it can satisfy the needs of customers which were unsatisfied with the previous brands. They have capital to invest they can explore new product categories e. which give them a position to monopolize the retailer¶s shop. .market very well. in food and beverages they can develop new products like Rafhan has launched custard. through it again will broaden their product categories and will make their operations complex but this could be avoided with ³sub contracting´ i. being first to introduce Surf but after that has no major innovation. its names. If Lever Brothers Pakistan Limited launch its products with in prevailing product categories. Lever Brothers Pakistan Limited is relatively week in their innovation department i. Whatever the brand is being sold is mostly on the basis of brand loyalty. kheer mix. people used to say Surf fades the . 2. rasmalai mix. beverages section.

7. they changed formula and not name only gave it a suffix of Excel i. the detergents and providing fuel to the expansion of unorganized sector. As ICI is a potential threat in detergents industry. Treat is promoting Bodyguard very much and trying to produce a competition in the carbolic soap market. 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. .g.e. Threats 1. P&G is giving very serious threats to Lever Brothers Pakistan Limited in the business of detergents and personal wash and shampoos. remain reluctant for long time even after its relaunch and heavy advertisement. 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. 2. Surf Excel now the people who developed this perception that it fades the color. 6. Threats of new entrants are also present. 4. No of local companies producing detergents and market them at very low prices which is a threat to Surf. 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. 5.clothes. 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. 3.

In case of change in lifestyle. 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. 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. social and technological influences on organization. factors like lifestyle changes and level of education affects an organization.e. In case of legal factors. 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. So one way or other they find way to cover it up.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. 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. To cope up with all these factors now Lever . Capital Markets In other economic factors like ³interest rates´ and ³inflation´ 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. the width and length too. Now more concerned towards environmental issues now and demand more social responsibility on the part of organizations now. 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. any trade policy or import duties is not affecting particularly Lever Brothers Pakistan Limited. It is indicator of political. 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. 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.

and moreover in the market like Pakistan in product categories of consumer products ³rates of obsolescence´ is not very high rather very slow so no great pressure to launch new products. .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.. 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. This issue would be discussed more in detail in the problem statement. 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. Other than the factors smuggling affects Lever Brothers Pakistan Limited¶s sales very negatively.

Problems Whenever we look for the problems of company its problems can be bifurcated into two broader categories. Company¶s management rely on long term strategies which they receive ready made from their parent company. 1.g. they can be positive force and the problem child as a source of internal problem as well. since it is a marketing organization. culture. structure. problems due to organizational policies. information sharing networks. And hence a strategy or a policy approval. Here in this field they lag behind due to their long term strategy even in field of advertising given by their parent head office. 1. Our problem statement is that what are the causes. This severe problem is being faced by Multan branch of Lever Brothers Pakistan Limited as well. . 2. Offices and branches of Lever Brothers Pakistan Limited are normally placed in domestic setup especially Multan branch.g. formulated and implemented 50 years back becomes obsolete and discard in prevailing scenario and changing environment e. 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.Problem Statement Our problem statement is regarding the shampoo segment of Lever Brothers Pakistan Limited. in their advertising campaigns of Sunsilk shampoo they only use ³Nabila´ 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. organizational strategies or even employees. factors and weaknesses which are present inside or which are existing internally in the organization e. Internal problems External problems Internal problems These problems are normally faced by organization due to elements. 2. which kept Lever Brothers Pakistan Limited away from market leader position in shampoo market. Hence being an influenciable organization they exhibit bureaucratic management style they want to maintain their status quo before these environmental changes like advertising trend. head office as a modus operandi. 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.

they have less emphasis on the strategy implementation part as compared to strategy formulation and planning. 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. . Their brand manager makes very rare visits to the retailers to know their problems. Lever Brothers Pakistan Limited has very poor relationships with their dealers and retailers. All the decisions regarding product planning. 9. Whenever Lever Brothers Pakistan Limited launch any product they first launch it in India if product proves a ³big success´ they try it in Pakistan which is not a good strategy due to cultural difference and religious differences. Even Lever Brothers Pakistan Limited brand manager never bargain on the proper and prominent shelf space of their shampoos (Sunsilk and Lifebuoy). Lever Brothers Pakistan Limited has not been able to place any check on its smuggling shampoos into Pakistan e. They don¶t believe in MBO (Management by objectives). development. This affects the branch operations and performance. 7. Employment insecurities in Lever Brothers Pakistan Limited also contribute negatively towards the performance of branch operations. which deteriorate the brand image. distribution and even targets of the branches are centralized and are in hands of central sales office of Lever Brothers Pakistan Limited. 8. technology and capital investment. All branch managers. in case of retailer relationship. 4. They are far away form their competitors like P&G. launching new brand is also very expensive for Lever Brothers Pakistan Limited due to the same reason.3. very little discounts are offered by Lever Brothers Pakistan Limited to their retailers. This create an uncertainty among management team. 6. wholesalers of Lever Brothers Pakistan Limited. retailers. when it will be used in Pakistan it will damage the hair of people. Since removing old/discarded brand is very expensive due to expensive installed machinery. 5. brand managers and operation are transferred within branches of Lever Brothers Pakistan Limited allover Pakistan. 10. No prize scheme and incentive is given to dealers. Which create problem on local sales of Pakistan.g. 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. new managers takes much time to settle in new branch and to understand new setup of branch and new dealers network. Branches are given inflexible targets of sales ± though data on these branch managers negotiate this figure but it takes too long. Indonesian Sunsilk is made according to the demographic of Indonesia. there is very low probability that market will absorb new brands. Management team of Lever Brothers Pakistan Limited normally arrange excessive operational meeting.

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. 2. Sunsilk (egg shampoo) Sunsilk (shikaki shampoo)

This was the first branded shampoo in Pakistani market then they launched another shampoo named as ³Clinic´ 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 ³Clinic 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 ³Clinic All Clear´ dandruff shampoo. Company re-launched Sunsilk shampoo with following five variants in 1998: Sunsilk Black Sunsilk Yellow Sunsilk Green Sunsilk Pink Sunsilk Orange for dull hair for normal hair for thin hair for dry hair 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. 5. Packaging of Sunsilk and Lifebuoy shampoo is the biggest weaknesses of Lever Brothers Pakistan Limited. Lever Brothers Pakistan Limited does not pay any attention to the shelf space given to the Sunsilk in the retail stores. 6. . Advertisement of Sunsilk does not promote the product very well rather its celebrity like ³Nabila´ is promoted. It is competing successfully with P&G¶s shampoos which were already having conditioner in them. Sales manager. Sunsilk and Lifebuoy shampoos users believe that it is economical. Lever Brothers Pakistan Limited has a good name as a market leader in consumer products this image always help its shampoo product line. They have recently launched antidandruff shampoo (white variant) with additional feature of conditioner which has been highly valued by the customers. 3. But Lever Brothers Pakistan Limited do not pay any head to it. Weaknesses 1. They focus on only females in their advertisement and they have ignored their bigger segment of males. Customer are brand loyal and of shampoo product line. 5. Due to cost leadership strategy of Lever Brothers Pakistan Limited in shampoo product line. 2. Lever Brothers Pakistan Limited does not pay any attention on the incentives and discounts given to the distributors and retailers. The store manager of ³Range´ told us that the brand manager of Lever Brothers has never been visited their store and they even never bothered about their shelf space. 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. First trial image of user are positive and they are generally brand loyal. brand manager and sales representatives do not conduct any personal visits to the retail stores which gives them dissatisfaction. 4. People have favorable opinions about Sunsilk that its contents do not include any harmful chemicals which could damage their hair. 3. 2. Retailers complaint that one leaked bottle of Sunsilk spoils the whole lot. 4.

allowances and discounts to the retailers they can get better shelf space in the display stores of retailers especially in shampoo product line.000 Discount in % 2-3% 5-6% While Lever Brothers Pakistan Limited offers even less than the above stated discounts on Sunsilk and Lifebuoy shampoos. People have ignored the relaunch of Sunsilk and its different offered variants. 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. Lever Brothers Pakistan Limited has very strong and resourceful research department. 2. 2. Though recently they have reduced their variants of Sunsilk from 12 to 6 and then launched another one Sunsilk white. Threats 1. 3. Competitors of Lever Brothers Pakistan Limited like P&G have very strong relations with retailers and distributors which is greater threat to the Sunsilk. . Since people are not that much price sensitive in case of shampoo but they have more concern about the ingredients. 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.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. which are used. bonuses. as shampoos are the threats for the shampoo product line of Lever Brothers Pakistan Limited especially Sunsilk. 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. Still it needs further reduction. Opportunities 1. All new and existing and important shampoo and branded soaps. formula and quality of their shampoo. Below 50.000 Above 50. Due strong company image and strong distribution network if they promote their products through incentives. The detail of discounts offered by P&G re as followed: Order in Rs.

Sr. 2. Direct competitors Indirect competitors 25% 75% Direct Competitors These competitors are in terms of product category. These shampoos are giving tough competition to Sunsilk. 1 2 3 4 5 Shampoo Bio Amla Head & Shoulder Pentene Pert Plus Sunsilk Percentage 10 20 35 25 10 . No. Head & Shoulder.Competitors¶ Analysis The major competitors of Sunsilk can be categorized in two ways (all percentages have been provided by Lever Brothers Pakistan Limited: 1. With reference to the product category we can divide users of shampoo into following segments: Upper Class This class normally use Pentene. Middle Class This segment is normally using shampoos in following percentage: *All the percentages have been provided by LBPL. Pert Plus.

They have targeted both males and females due to which they have got more number of shares in market.e. 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. Sunsilk Rest of the market share i. 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. 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. only 10% is with Sunsilk. P&G has targeted on young busy people who want stylish hair within five minutes. . Pentene Pentene is the strongest hair care product of P&G both formula and advertisement wise.Bio Amla Normally young girls and women want lengthy hair and try to avoid split edges of hair so they prefer Bio Amla. So the need of separate conditioner is also committed. As already explained they are giving top incentive to retailers and distributors. Pert Plus This shampoo is almost getting 25% of market shares and it is also a very strong brand of P&G.

how much order are generally placed by retailers in a month. Indirect Competitors Indirect competitors include: Imported shampoos Branded soaps Unbranded shampoos and soaps Imported Shampoos Higher income segment is very quality conscious. They are major innovators and variety seekers. 2. Examples of imported shampoos include: 1. 2. 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. They are mostly influenced by advertisement and word of mouth or on the basis of the consultation of their beauty experts. 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. Hence the shelf space of Sunsilk is refilled 12 times in a year or once in a month. 3. We can say that ratio for order placement is 1:4 for Sunsilk and Pentene respectively. Finess Agree Saloon Selective 40% 35% 25% . 1. normally place four order in a month i. It reflects the highest turnover of Pentene.e. They change their shampoo more often than any other segment. Pentene of P&G Sunsilk of Lever Brothers Pakistan Limited Pentene Of P&G According to the retailers like Range & Prince Store and other small shop keepers.e.Sales Analysis Now we will discuss briefly only Pentene and Sunsilk from retailers point of view i. the shelf space is refilled 04 times in a month or every week due to the increased sales of Pentene.

Branded Soaps These soaps include: 1. These unbranded soaps and shampoos account for 25% of indirect competition. . These unbranded soaps and shampoos provide a major competition to Lifebuoy shampoo for which Lever Brothers Pakistan Limited focuses on low income segment. 3. Lifebuoy (Lever Brothers Pakistan Limited) Safeguard (P&G) Bodyguard (Treet) Johnson & Johnson (J&J) mainly targeted on kids These soaps account for 35% of indirect competition. American Pentene (Pentene lively clean. .4.Pentene Moisture lock) Vidal Sasoon Temi Tei 40% of the indirect competition is provided by these imported shampoos. 5. Unbranded Shampoos & Soaps They are unbranded shampoos and soaps and are normally used by lower income segment. Lifebuoy soap is also providing indirect competition to Lifebuoy shampoo. 2. as users of Lifebuoy soap have not shifted to Lifebuoy shampoo. 4. 6.

Strengths Of P&G 1.e. 5. 2. . P&G has very strong relationship with their retailers. They provide them good incentive like discounts i. from Rs. In return of all above incentive not only retailers give a good shelf space but also promote P&G¶s products. Head & Shoulder and Pert Plus are providing major competition to Sunsilk and Lifebuoy. Pentene) has harmful chemical. relationship with retailers. Their marketing and sales manager bimonthly visits these retailers to get knowledge of their problems. moreover they launch price schemes continuously for their retailers. 99 i. This is most demanding feature of shampoo which P&G has focused upon.Strengths And Weaknesses Of Competitors For this purpose or major competitor of concern are P&G and their shampoos like Pentene. 4. While Lever Brothers Pakistan Limited¶s shampoos order are placed once in a month due to low demand by retailers. Lever Brothers Pakistan Limited have this very healthy strategy i. 120 to Rs.e. Due to this they face competition from Lever Brothers Pakistan Limited. P&G fills its shelf space four times a months due to its high demand of shampoos. P&G¶s management bargain and stresses more on its prominent shelf space with their retailers. But now they have overcome this element by price reduction i.g. 3.e. Hence high sales volume is an other strength of P&G¶s. it causes fall of hair. Advertisement of P&G focuses on males and females both to appeal potential markets as their customers. Weaknesses 1. three to four percent on their sales. It is a weaknesses of P&G people think that it softens the hair and gives silky touch but it causes the hair fall. quantity discounts on large sales. 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. People have perception that P&G¶s shampoo (e. just one rupee below the retail price of Sunsilk (retail price of Sunsilk family size bottle is Rs.e. 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. Their shampoo like P&G has conditioner in its which Lever Brothers Pakistan Limited has only in one variant (Sunsilk White). 6. 2. 100).

1. 3.e. 2.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. Product development Market development Market penetration Diversification . 4.

e. 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. and now launched another variant i. And in this strategy an other group of sub-strategies being followed is 4-P¶s.e.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. Placing Strategy Distribution strategy is not different other than any product same distribution strategies adopted for complete product line. neither too high nor too low i. .e. we would recommend product development strategy instead of market development. 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.Out of these four strategies Lever Brothers Pakistan Limited has adopted the market development strategies i. 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. Pricing Strategy Lever Brothers Pakistan Limited have been using mediocre price strategy i.e. Suggested Strategies From about mentioned for group of strategies considering the weakness inherited in those strategies and problems faces by Lever Brothers Pakistan Limited. Hence as being very expensive is no excuse for a company having portfolio for the financing of which backs have to make a consortium.e. lower than P&G but higher than Bio Amla Shampoo. Product Strategy For product continuous improvement strategy is being adopted i. continuously launching different variants in Sunsilk. not only shampoo but conditioners and hair dyes and sprays as well. Sunsilk White antidandruff. And now implication of this strategy over four P¶s. Previously launched 12 variants than reduced to 6 variants. No separate or customized strategy adopted for Sunsilk.

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. developmental beneficial relationship with the retailers along with wholesalers. Promotion Strategies Main problem lies with promotional strategies being followed by Sunsilk using Nabila for almost last 5-6 years continuously.Pricing Strategies Pricing strategies adopted are quite justified. . 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.

Place (Distribution) Strategy Extensive distribution of Lifebuoy shampoo (family sized bottle. Their focus is on low income group which is already loyal to Lifebuoy soap due to its low prices. Implementation Their focus for promotion on celebrity is only on Shahzad Roy for lower class which is not a source of inspiration for them. Suggested Strategies Market Penetration Lever Brothers Pakistan Limited should use market penetration strategy in case of Lifebuoy shampoo. 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. Product Strategy In case of Lifebuoy shampoo they have made a related diversification in Lifebuoy soap. There is no such heavy advertisement in case of promotion of Lifebuoy shampoo. Pricing Strategy The are following cost leadership in Lifebuoy shampoo. Within this group of strategies I its 4-P¶s. So Lever Brothers Pakistan Limited is following related diversification strategy in Lifebuoy shampoo.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. Hence brand name and brand loyalty has been focused. medium to small size sache pack) has been ensured on all retail outlets of Pakistan with 100% coverage. They should enhance their advertisement and should boost their market share of Lifebuoy shampoo with enhanced marketing efforts. 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. Lever Brothers Pakistan Limited has tried to encash it generic brand hence cash cow Lifebuoy soap in a new form Lifebuoy shampoo. Market Development .

e.Market development is an other proposed strategy i. For this they can give a new name to their existing product as well. They should capture females and kids as well with new soft appeal. . they should identify new markets with existing product. which will be quite effective to attract females and a potential portion of middle income group. Implementation Focus of Lever Brothers Pakistan Limited in case of Lifebuoy is on males with concept of hardworking man.

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