You are on page 1of 43

TYPE OF ASSIGNMENT

Project Report

“UNILEVER”

Prepared by: Muhammad Anas khan

Registration no: 2135112

Class: MBA-36

Submit to:

Sir Afzal Khan

SZABIST, HYDERABAD CAMP


Executive summary:

This report consists of the brief explanation of famous FMCG company Unilever. as you

know, unilever was established on 2 September 1930 when the British soap maker Lever

brothers merged with the Dutch margarine producer. After that, in 1948, Unilever Pakistan

Limited, a part of the Unilever Group, has been operating in Pakistan. The first unit of

unilever Pakistan operates in Rahim yar khan unilever Pakistan is one of the largest FMCG

industries in Pakistan. The major competitors of unilever Pakistan are Nestle, P&G,

PepsiCo, Colgate Palmolive. Unilever Pakistan competes aggressively through our vast

product line with our competitors in the market. In this report I discussed about Unilever

history and how they came to Pakistan and I discussed its industry profile, External and

Internal Analysis and other different matrixes.

I
TABLE OF CONTENT

Executive Summary I

CHAPTER # 1

INTRODUCTION

1.1 Unilever History 01

1.2 Unilever Pakistan 02

1.3 Products 03

1.4 Management 05

1.5 Organization Structure 09

1.6 Mission and Vision 10


CHAPTER 2

INDUSTRY PROFILE

2.1 FMCG Industry 11

2.2 Competitors 12

2.3 Market share 13

2.4 Profitability 13

CHAPTER # 3

INTERNAL AND EXTERNAL ANALYSIS

3.1 Micro Environment 15

3.2 PESTEL Analysis 17

3.3 Porter Generic Strategy 20

3.4 Porter generic Model 22


CHAPTER # 4

MATRIX

4.1 SOWT 24

4.2 IFE. (Internal Factor Analysis) 26

4.3 EFE (External Factor Analysis 27

4.4 CPM ( Competitative Profile Matrix) 28

4.5 BCG Matrix 29

4.6 TOWS Matrix 30

4.7 SPACE Matrix 31

4.8 IE Matrix 33

4.9 QSPM Matrix 34

4..10 Grand Strategy Matrix 36


CHAPTER NO 5

CONCLUSION

6.1 Conclusion 37
CHAPTER NO 1

INTRODUCTION

1.1 UNILEVER HSITORY

UNILEVER was formed in 1930 when Lever Brothers, a British soap manufacturer,

joined with Margarine Unis, a Dutch margarine manufacturer.

An international merger was unheard of at the time. However, the proprietors of the two

businesses saw that combining complementary enterprises with strong global networks

would open up new possibilities.

In the 1930s, UNILEVER introduced new technology to the company.In Latin America,

new projects and business opportunities arose. UNILEVER'S business is still based on

the founders' entrepreneurial spirit and caring attitude toward their employees and

communities.

UNILEVER is a well-known brand that appeals to individuals of all ages. UNILEVER is

a multinational consumer goods corporation with operations in more than 150 countries

in Asia, Africa, North America, the Middle East, Western Europe, and Latin America.

UNILEVER is a global leader in fast-moving consumer goods like groceries,

housewares, and personal care products. Through inventive product development and

appealing brand communications, UNILEVER is helping to grow some of the world's

most recognisable companies. Each of these companies has a huge opportunity to

address evolving consumer expectations by offering a wide range of products that live

1
up to their brand promise. They have the potential for scalability and profitability at the

same time.

Unilever declared that it would provide over €100 million in soap, hand sanitizer, bleach,

and food to help fight the global COVID-19 pandemic.

1.2. UNILEVER PAKISATAN

Unilever Pakistan is the largest FMCG company and one of the largest multinational

company in the country Since 1948, Unilever Pakistan Limited, a part of the Unilever Group,

has been operating in Pakistan. Detergent and Soaps and, Personal Products, Cooking Oils

and Fats, Ice cream and Packed Teas, are Unilever's key business lines. In household,

Unilever has a long list, including Surf, Vim, Rin, Lifebuoy, Sunlight, Lux, Rexona, Sunsilk,

Close-Up, Blue-Band, Planta, Lipton's Yellow Label, Taaza and Richbru, Brook Bond's

Supreme, and Kenya Mixture

The Company's factory in Rahim Yar Khan was one of the first industrial units built in

Pakistan after independence. As the company's consumer base grew and it expanded into new

product lines like Personal Products and Margarine, it invested even more in modern

manufacturing facilities, including a factory in Karachi. Today, the Company uses high

technology to produce high-quality products.

In 1995, the company opened a new factory in Lahore to produce the Wall's line of ice

creams, which have become popular. The current group - Unilever UK – purchased the Polka

Group, which made ice creams, in 1996. Pakistan industrial promoters (Private) Limited, the

owner of the 'Polka' ice cream brands, merged with Lever In August 2002, Lever Brothers

Pakistan Ltd. changed its name to Unilever Pakistan Ltd. In today's Pakistan, the view of the

Unilever brothers is vast, as is their contribution to the country's economy. Unilever Pakistan

employs thousands of people. Unilever Pakistan has been operating four separate sites in this

2
region during this time. Unilever Pakistan's is biggest tax payer. Unilever Pakistan employs a

large number of managers and employees. Employees are more passionate about their jobs.

The motivating and training levels are higher. Unilever Pakistan has targeted the entire

Pakistani population with a variety of product lines. Unilever now offers a wide selection of

items to the public. Unilever does business for the benefit of our valued partners, employees,

consumers, society, and the community as a whole. The Unilever brothers believe in the

social work and support it.

1.3. Products

Food and drinks

• Lipton (tea)

• Wall's (ice cream)

• Pearl Dust (tea)

• Knorr

• Cornetto (ice cream) (ice cream)

• Magnum (ice cream) (ice cream)

• Brooke Bond (tea)

• Fruttare

• Wall's Kid's Range

Personal care

• Clear Anti-dandruff shampoo

3
• Close Up Toothpaste

• Fair & Lovely (cosmetic products)[2]

• Lifebuoy (shampoo)

• Lifebuoy soap Soap & handwash

• Lux Soap, hand & bodywash

• Pond's Talcs & beauty creams

• Rexona Deoderants and Anti-perspirants

• Sunsilk Shampoo

• Dove (soap)

• Pepsodent (toothpaste)

• Toni & Guy

Home care

• Comfort - fabric softeners

• Rin - detergent

• Surf Excel detergent and gentle wash

• Domex

• Vim

Unilever have been producing number of products and their vast product line for every brand.

4
1.4. Management:

UPL Board of Directors

• Amir Paracha – CEO

Amir Paracha joined the Board as chairman and chief executive officer of Unilever Pakistan

Limited On 1st february 2020.

Over the period of his 20 years with Unilever, he has held many top management positions in

the Pakistan and North Africa Middle East clusters.

• Aly Yusuf - Chief Financial Officer:

Aly joined the Board of Directors on October 1, 2019 and is the Director and Chief Financial

Officer of Unilever Pakistan Limited and Unilever Pakistan Foods Limited.

Over the course of his 12-year career, he has held a variety of finance-related positions in

Pakistan and abroad.

• Asima Haq

Asima Haq is currently as a Director, Beauty & Personal Care and part of the local

Management Committee.On 27th February 2020 Asima joined the board.

She has worked with Unilever since 2001, in both Beauty & Personal Care and Foods &

Refreshments.Marketing Director-New Initiatives and Marketing Director-Foods &

Beverages

5
• Aman Ghanchi:

Aman has been with Unilever for 11 years and joined the Board in January 2018. He has a

wide range of experience in legal and tax. He is regarded as an expert in his profession by the

industry and within Unilever Pakistan, based on his previous experience. He has a long list of

accomplishments, including successfully campaigning for tax reform on behalf of the

government

UPFL Board of Directors

• Kamran Y. Mirza – Chairman

In 2014, Kamran was appointed Chairman of Unilever Pakistan Foods Limited.He is a

Chartered Accountant from the United Kingdom.In 1970, he joined Abbott Laboratories

(Pakistan) Limited as one of the company's youngest ever Managing Directors, a post he held

for 29 years until 200

• Amir Paracha – CEO

Amir Paracha joined the Board as chairman and chief executive officer of Unilever Pakistan

Limited On 1st february 2020.

Over the period of his 20 years with Unilever, he has held many top management positions in

the Pakistan and North Africa Middle East clusters.

• Aly Yusuf - Chief Financial Officer

Aly joined the Board of Directors on October 1, 2019 and is the Director and Chief Financial

Officer of Unilever Pakistan Limited and Unilever Pakistan Foods Limited.

6
Over the course of his 12-year career, he has held a variety of finance-related positions in

Pakistan and abroad.

• Farheen Salman Amir

In 1998, Farheen began her career with Unilever as a Management Trainee.Farheen was

appointed to the Board of Directors on March 7, 2016, and is now the Director of Foods and

Refreshments.

Farheen has worked in a variety of categories in both Food & Refreshment and HPC in her

17 years with the company.

• Ali Tariq

Ali began working with Unilever in 2003 and joined the Board of Directors in April of 2017.

In Singapore, the United Kingdom, and Pakistan, he has held several global, regional, and

country leadership positions. He is currently employed as a worldwide executive at Unilever's

headquarters in the United Kingdom

Prior to joining Unilever, Ali worked as a business adviser for Price waterhouse Coopers UK,

• Zulfikar H. Monnoo

When the company was founded, Zulfikar became a member of the board. He also serves as

Chairman of Unilever Pakistan Foods Limited's Audit Committee and Human Resource and

Remuneration Committee.

7
• Mian M. Adil Monnoo

Adil was appointed to the Board of Directors as a Non-Executive Director on May 5, 2002.

He is also a member of Unilever Pakistan Foods Limited's Audit Committee.

He is a director of Rafhan Maize Products Limited and the sole proprietor of HN

Enterprises,in textiles business.

• Kamal Monnoo

As a Non-Executive Director, Kamal was appointed to the Board on December 19, 2006.

He is also a member of Unilever Pakistan Foods Limited's Human Resource & Remuneration

Committee

• Sarfaraz A. Rehman

Sarfaraz, a chartered accountant, has worked with a number of global corporations throughout the

course of his

8
1.5. ORGANIZATION STRUCTURES

CEO
CFO
Amir Paracha
Aly Yusuf
Chairman of the
Board
Kamran Mirza
Foods &
Director Refreshments
Aman
Ghanchi

Director
Zulfikar Beauty &
Mannoo Personal Care
Director
Khalid
Mansoor
Director HR
Mian
Monnoo
Director
Kamal Corporate Affairs
Monnoo
Director
Sarfaraz
Rehman

Director
Ali Tariq

Figure: 1.5

9
1.6. VISION AND MISSION
• Mission Statement of Unilever:

to add vitality to life. We meet everyday needs for nutrition, hygiene and personal care with
brands that help people feel good, look good and get more out of life.

o Components :

1) Customer

2) Concern for Public image

• Recommended Mission statement:

To make life easy and pure, builds the best quality product, service to customer and supply
every possible product from beauty to food

• Vision statement of unilever:

Unilever has a simple but clear purpose - to make sustainable living commonplace. We
believe this is the best long-term way for our business to grow.

• Recommended Vision statement:

We create a more healthier and comfortable planet, as well as more durable living
environment

10
CHAPTER NO 2

INDUSRTRY PROFILE

2.1. FMCG INDUSTRY

Fast Moving Consumer Items (FMCG) are consumer goods that can be purchased at a low

cost and consumed quickly. Food and beverages, personal care, footwear, apparels,

housekeeping, and cleansing products are all part of the FMCG sector. This industry has a

more rapid cycle of items, making it a more adaptable business.

These products can be found in a variety of locations, including superstores, supermarkets,

specialty stores, hypermarkets, grocery stores, warehouses, and online via eCommerce. The

FMCG business, as a vital commodity, has seen significant expansion in a variety of fields.

Customers are finding purchasing — whether online or in person – to be simple, exciting, and

beneficial.

Covid-19 has boosted the majority of FMCG sector trends, including digitalisation, health,

and environmental awareness. Food and household products manufacturers reported

significant revenue growth in 2020 as a result of the Covid-19 outbreak, with revenues

growing by 18% and 4%, respectively, on a global basis. In addition, the e-commerce

industry for food and personal care is expected to grow by more than 40% by 2020.

Technology

Mobile app: FMCGs' main goal is to build brand value for customers by serving them at the

right time and in the right place. Mobility solutions are created in this situation. Because

mobile applications occupy a large portion of a user's smartphone, they provide a highly

individualised experience. Consumers can use mobile apps to easily locate your product

11
store, view your product portfolio at any time, receive discount and offer alerts, and purchase

online from anywhere at any time. Mobile apps can assist FMCG companies in increasing

client loyalt.

ERP (enterprise resource planner) :An enterprise resource planner FMCG used ERP

system because it helps to manage inventory system and keep track of stock records, and

manage multiple orders control multiple distribution channel, supply chain management

workflow management logistics management

SAP (Systems Applications and Products in Data Processing) SAP is mean of communication

between all the departments in organization with the help of Unilever collect data about

customers all type of details of customers and manage our activates properly

2.2. COMPETITORS OF UNILEVER

1. Nestle

2. Colgate Palmolive

3. Johnson & Johnson

4. P & G

5. Pepsi-co

As you know there’s no arguing that the consumer goods industries is very competitive. A

numbers of competitors of unilever are there in the market like P&G, Nestle, Colgate,

Johnson &Johnson. They're all are in competition battle with Unilever

12
2.3. MARKET SHARE:

2.4. PROFITABILITY

FMCG Companies Net sale 2020


NESTLE 93,610

P&G 70,555

PEPSI-CO 70,372

UNILEVER 61,633

13
Operating Profits
Foods & Refreshment Beauty & Personal Care Home Care

15%
38%

47%

14
CHAPTER # 3

INTERNAL AND EXTERNAL ANALYSIS

3.1. PESTEL ANALYSIS OF UNILEVER:

The PESTEL means Political, Economical, Social, Technological, Enviromental and legal.

This all factors help to analysis the external environment.

• Political:

The first element of PESTEL is Political factor this factor influence the organization in

many ways. Unilever Pakistan faces the political factor and they should follow all rules and

regulation according to Pakistan laws. Like pay taxes give salary to our employees according

to law which passed by Pakistan high court neither doing any unethical activities which is

opposite to the government rules and regulations.

• Economical:

As you know that the today’s economical condition of Pakistan is not well and the other

hand inflation rate increase day by day its directly impact on consumer buying behavior

because they want to buying less expensive product. When the inflation is increase so price

also increase and this impact on company financial position. On the other hand energy crises

also faced by company and its effect on it ice-cream and many other segment . The country

economical condition play the vital role in any type of business or industries for that reasone

every company face problem to runs our active.

15
• Social culture:

Unilever have so many brand so they decided to focus on developing a strong reputation in

the market so they highlight issues related to social and environment factors.

As you know that unilever’s product focus on personal care and well-being. The company

focus on how people feel good and look good and also focus on what people want to living

the life they deserve even their marketing also convey the same messages about product like

Dove focuses on helping women feel their best form the inside out

On the other hand as you know that Pakistan majority population are muslims so due to this

all products to be halal in accordance with Islamic teaching,

• Technology:

Unilever is time to time producing new product and them through online in respective brands

locations The Company should focus to developing its digital marketing and selling methods.

Unilever has a higher level of automation, especially as compared to its competitors to

allowing to supply products to store location quickly. Unilever Pakistan spend 891 million

euro in R&D

• Environment

Unilever has been successfully able to develop itself as an environmental friendly company.

Unilever is working towards sustainability goals which will further help to enhance its image

in the market. Unilever is committed towards its goal of achieving 100% plastic packaging to

reusable and the said in 2025 the rahim yar khan is zero plastic waste city. Unilever also

works on (CSR) Unilever Pakistan also contributes to natural disasters in Pakistan. As we

know, in August 2010 Pakistan faced flood disasters. They destroyed homes of thousands of

16
people. So unilever contributes 1 million euros as well as many necessary items like soap,

toothpaste and shampoo.

• Legal:

Legal factors are the external factors which refers to how law effects the way business

operate and customer behave. In any country when new business starts they need to follow

the laws of the country in order to work without any problem. A company must follow the

government legislation like employment consumer health and safely law. Like Minimum

wages of workers increased should be 25000 Rupees and as per law after 9 months temporary

workers should be made permanent. And unilever should focused about their consumer

because as you know that Pakistan majority population are Muslims so due to this all

products should be halal in accordance with Islamic teaching, where companies have to use

best quality ingredients, hygenic and fresh food otherwise company will violate the law

Another law includes the safety of employees working in a company by providing them with

necessary equipments, proper clothing and safety tips,

3.2. MICRO ENVIRONMENT OF UNILEVER

Customer

Competitors

Media

Employees

17
• Customer

As known, customers are an essential part of any business. Because without customers, the

company cannot run. Unilever targets upper Middle and higher classes. Because most

products have premium prices. They pay more for quality of product but they also offer some

lower-income brands for lower-income people because they fulfill our need with similar

kinds of benefits

• Competitors

As you know, there’s no arguing that the consumer goods industries are very competitive. A

number of competitors of unilever are there in the market like P&G, Nestle, Colgate, Johnson

&Johnson. They're all in a competition battle with Unilever

• Media

We know that the power of media now days it can boots organization product/Service in

overnight.

• Broadcast Media

Television: On the leading day and a half broadcast stations, Pakistanis watch

everything from entertainment to news, on television. Pakistan's largest television

advertiser, Unilever spends 60% of its budget on broadcast media. Television is a

major means of advertising. Unilever is the most unique ad to create on TV like surf

excel and that tag line "daag to ache hote hai" this tag line became viral and everyone

remembered it. And Lifebuoy’s goal is to provide accessible and affordable hygiene

and health solutions that enable people to live healthier lives without fear of hygiene

and anxiety and health consequences. Bunty from an amusing Lifebuoy commercial

18
about hand washing goes 'viral' amid concerns about

hygiene and health. Bunty, a figure from an old Lifebuoy

advertisement, has been trending on social media for years.

The kid scout, who was made up for laughs, advised his

friends to wash their hands for one minute to guarantee

they were germ-free. His pals mocked him for using "slow" soap when they used

Lifebuoy Hand Wash, which claimed to do the job in 10 seconds

o Print Media: In print media, Unilever is using these mediums to advertise. Unilever

advertises in both magazines and newspapers on a weekly and monthly basis.

Following is the list of magazine and newspaper in which Unilever advertise: • The

News • Sunday Magazine Etc.

Unilever sends cards to their homes and public places to people in the retailer and

wholesalers category. In a number of cases, Unilever sent them various cards to build long-

term relationships so that they could contribute to increasing the market share of their

product. As a lifebuoy design poster and give the message use soap at least 5 times a day for

a healthy lifestyle. and this poster spreads social media like bus stops and is aimed

specifically at customer children so go to school and give it to children. As well as posting

social media.

o Social Media Marketing This is the time for social media to directly or indirectly

connect via social media channels such as Facebook, Twitter. So now this era of

social media is a huge advertising force with viral videos and our marketing

functionality is working. The telecommunications market offers the opportunity to

communicate in two ways this benefit to play an important role in building customer

loyalty and customer satisfaction and another great benefit is that our targeted

customers share our advertising and marketing work ads. It also allows our targeted

19
consumers to attract others and influence potential customers. Unilever will advertise

on Twitter, Facebook and Facebook for at least a year in Pakistan. Social media

advertising is very cheap and not very expensive but it works very well and attracts

big customers.

Unilever takes on social media services to inform you about our product and services and

Create Facebook page and product groups to provide personal contact, build awareness.

• Employees:

Employees play a key role in any organization to runs firm activities. When you have skilled

full employees in your organization, it helps to achieve goals on time. Unilever also has

skilled full employees to manage different tasks and activities. Unilever care our employees

to give health insurance teams out child care international relocation and other bounces

3.3. POTTER FIVE FORCE OF MODEL :

The tool was created in 1979 by Harvard Business school professor Micheal porter

1) Threat of new entrants

2) Threat of substitutes

3) Bargaining power of buyers

4) Bargaining power of supplier

5) Rivalry among competitor firms

20
1) Threat of new entrants: New entrants in the Personal Products market provide innovation and

new ways of doing things, putting pressure on Unilever PLC through a lower pricing strategy,

cost reductions, and new value propositions to customers. To maintain its competitive

advantage, Unilever PLC must handle all of these problems and build effective barriers.

2) Threat of substitutes: When a new product or service fulfill the customer need in different

way. Unilever have threat of substitutes because unilever competitor also offer same product

line, So unilever should understand our core need rather than what the customer buying its help

to maintain our customer. And they want to focused on our Research and development to avoid

substitutes products

3) Bargaining power of buyers: In this case, when there are many producer in the

market but only one buyer, so in this condition the buyer have power to set price. So

Unilever should focused on our price to satisfied our customer need in reasonable

price because they avoid to switching towards other brands.

4) Bargaining power of suppliers: Almost every company in the Personal

Products business gets its raw materials from a multiple of suppliers. Powerful

suppliers in the Consumer Goods industry utilise their negotiation power to get higher

prices from businesses in the Personal Products sector. Higher supplier bargaining

power reduces the total profitability of Personal Products. so unilever want to built

good relationship with our suppliers by treating them fairly. And built efficient supply

chain with muiltiple suppliers.

5) Rivalry among competitor firms: So in this step we check and analysis our

competitor who are they? And what they offer. Unilever have large number ot

21
competitor in the market like P&G, Nestle, PepsiCo, Colgate Palmolive they all are

capture the market in different segment. So if Unilever get the competitive advantage

so they doing something new and differenst as compare our competitor.

3.4. PORTER GENERIC STRATEGY

• Cost leadership

As you know, the cost leadership strategy helps to gain competitive advantage by lowering

the cost. The purpose of using this strategy is to protect the market leadership position

through efficient value chain management. With the help of this strategy, Unilever expands

its market share by targeting the middle class. Because you know that the middle class has a

large proportion of overall consumer market mix in most countries. Because middle-class

consumers usually place high importance on the pricing factor, that’s why cost leadership is

the best strategy to provide the need for this consumer segment. Unilever focuses on easily

affordability and accessibility of its product across the global. This helps to create high brand

awareness and high sales growth and gain competitive advantage

• Differentiate:

Unilever uses differentiation strategy for gaining competitor advantage. Differentiation

makes the company's products stand out against competitors. For example, in personal care

products like dove cream bars to satisfy consumers. Because customers need soap that is not

harsh or dry. Yet their relatively high selling price, therefore unilateral products are a

competitive advantage because they standout from a majority of soaps that focus more on

cleaning than moisturizing

22
• Focus strategy:

Focus strategy in third generic strategy this strategy encourages the companies to concentrate

on their resources to expand in the narrowly targeted segments.. Unilever adopts the focused

strategy in terms of low cost and offering the best value. This strategy helps to serve the

needs of a niche market segment at the lowest possible price. this strategy helps to capture

and fulfill the customer needs and requirements.

23
CHAPTER NO 4

MATRIXS

4.1. SOWT ANALYSIS:

• Strength :

• Customer loyalty

• Vast distribution network

• International Brand

• Effecting Advertising and marketing

• They focused on people health and care

• Research and development

• Opportunity

1) Huge potential in rural area

2) Population increase

3) Explore new market

4) Product diversification

5) More focused on research and development

6) End user respond new ideas

• Weakness

1. Product price is high

2. Limited business diversification

3. Substitute’s product

24
4. Sale Dalda In 2004

5. Conflict arise between staff member

6. The use of plastic

• Threat

1. Major competitors

2. Economical crises

3. Product imitation

4. Government interference

5. Price war

6. Increase raw material cost

25
4.2. IFE( Internal Factor Evaluation)

No Strength Weight Rating Weighted


Score
0.10 4 0.4
1 Customer loyalty
0.09 3 0.27
2 Vast distribution network
0.10 4 0.4
3 International brand strength
0.09 4 0.36
4 Effecting Advertising and marketing
0.09 4 0.36
5 They focused on people health and
care
0.10 4 0.4
6 Research and development

WEAKNESS
0.07 2 0.14
1 Product price is high

0.08 1 0.08
2 Limited business diversification

0.07 2 0.14
3 Substitutes Product

4 Sale Dalda In 2004 0.07 2 0.14

5 Conflict arise between staff 0.07 2 0.14


members

6 The use of plastic 0.07 2 0.16

TOTAL 1 2.99

26
4.3. EFE( External Factor Evaluation)

No OPPORTUNITY Weight Rating Weighted


Score
0.10 4 0.44
1 Huge potential in rural market
0.08 3 0.27
2 Population increase
0.09 3 0.21
3 Explore new market
0.09 3 0.27
4 Product diversification
0.09 3 0.27
5 More focused on Research and
development
0.07 3 0.24
6 End user respond new ideas

THREATS
0.09 3 0.27
1 Major Competitor

0.08 3 0.24
2 Economical Crises

0.07 2 0.14
3 Product Imitation

0.08 3 0.24
4 Government Interference
0.08 3 0.24
5 Price war
0.08 3 0.24
6 Increase in raw material cost
TOTAL 1 3.07

27
4.4. COMPETITIVE PROFILE MATRIX (CPM)

UNILEVER P&G NESTLE

No Critical Success Weighted Rating Score Rating Score Rating Score


Factor
0.2 3 0.6 3.5 0.7 3 0.6
1 Product Quality
0.2 3 0.6 2 0.2 3 0.6
2 R&D
0.2 4 0.8 3 0.6 2 0.4
3 Advertising
0.2 4 0.8 4 0.8 4 0.8
4 Product line

0.1 3 0.4 3 0.3 3 0.3


5 Price
4 04
6 Brand Equity 0.1 3 0.3 3.5 0.35

1 3.5 2.95 3.1


TOTAL

28
4.5. BOSTON CONSULTING GROUP (BCG) MATIRX
The BCG Matrix is popular portfolio analysis method its classified low and high
performance depend on the market share and growth rate .

High Star Question mark

Walls Lifebuoy soap

Lux
Surf Excel
Market growth Fair and lovely
Rafhan

Low Dog
Cash cow
Sunsilk
Supreme tea
Ponds
Lifebuoy shampoo
Lipton
Blue band

High Low
Market Share

29
4.6. TOWS MATIRX

SO= Strength, Opportunity: use the strength of organization to capilze opportunity

To avail the opportunity (Maxi-Maxi)

ST= Strength, Threats: Using the strength of organization avoid or minimize threats
(Maxi-Mini)

WO= Weakness, Opportunity: Minimize our weakness and maximize our opportunity
(Mini-Maxi)

WT=Weakness, Threats : Minimize our weakness and also Minimize our Threats
(Mini-

Mini)

STRENGTH WEAKNESS OPPORTUNITY THREATS

1 Customer loyalty Product price is high 1 1 Major competitors


1 Huge potential in rural
market
International 2 Substitute’s product Increase in product line
2 2 2 Economical crises
brand strength
Vast distribution 3 Conflict arise between Explore new market
3 3 3 Product Imitation
network staff member
Research and 4 Spend more money in
4 The use of plastic 4 4 Government
development R&D department
interference
department

5 Effecting 5 Sale Dalda In 2004 5 Population increase 5 Price war


Advertising and
marketing

30
They focused on 6 Limited business End user respond new
6 6 6 Increase raw
people health and diversification ideas
material cost
care

SO = S4 O1 S4 O2, S6 O3

ST = S1 T5, S2 T1, S4 T3

WO = W4 O4, W6 O3

WT = W1 T6, W2 T5, W4 T4

4.7. SPACE MATRIX (Strategy, Position, Action, and Evaluation)

FS

Conservative 6 Aggressive
5

3
2
1 1 2 3 4 5 6
CA IG
-6 -5 -4 -3 -2 -1 -1
-2
-3
Defensive Competitive
-4
-5
-6

ES

31
Financial Position Ratings Average
1 Return on investment +5

2 Liquidity +5

3 Cash flow +5

4 Working capital +4 4.75

Environmental stability Ratings Average


1 Inflation -2

2 Barrier to enter -1

3 Competitive Pressure -2

4 Technological Change -1 -1.5

Competitive Advantage Ratings Average


1 Product Quality -1

2 Market -3

3 Customer loyality -2

4 Distribution -2 -1.75

Internal Growth Ratings Average


1 Profitability +5

32
2 Ease of entry in new market +4

3 Productivity +5

4 Excess to finance +5 4.75

4.8. IE MATRIX

Combination of IFE, EFE is called IE Matrix and the data will be allocated from IFE and
EFE.

(IFE)

2.99

4.0 to 3.0 3.0 to 2.0 2.0 to 1.0


4.0

1 2 3
3.08

3.0
4 5 6
(EFE)

2.0
7 8 9

1.0

1 2 3 show that Unilever follow” Grow and build Strategy”

33
4.9. QSPM(Quantitative Strategic Planning Matrix)

Market Market Product


Factors Penetration Development Development

Opportunities Weight AS TAS AS TAS AS TAS


Huge potential in rural area 0.10 1 0.1 4 0.4 3 0.3

Population increase 0.08 1 0.08 3 0.24 1 0.08

Explore new market 0.09 2 0.18 4 0.36 2 0.18

Product diversification 0.09 2 0.18 3 0.27 4 0.36

More focused on research and 0.09 1 0.18 3 0.27 3 0.27


development
End user respond new ideas 0.07 3 0.21 3 0.21 3 0.21

Threats
Major competitors 0.09 3 0.27 4 0.36 3 0.27

Economical crises 0.08 1 0.08 3 0.23 3 0.23

Product imitation 0.07 1 0.07 3 0.21 4 0.28

Government interference 0.08 2 0.16 3 0.24 4 0.32

Price war 0.08 4 0.32 2 0.16 2 0.16

Increase raw material cost 0.08 1 0.08 3 0.24 2 0.16

Strength

Customer loyalty 0.10 3 0.3 4 0.4 3 0.3

Vast distribution network 0.09 3 0.27 1 0.09 3 0.27

International Brand 0.10 3 0.3 4 0.4 1 0.1

Effecting Advertising and 0.09 4 0.36 2 0.18 2 0.18


marketing
They focused on people health 0.09 1 0.09 1 0.09 2 0.18
and care

34
Research and development 0.10 2 0.2 2 0.2 4 0.4

Weaknesses
Product price is high 0.07 3 0.21 3 0.21 2 0.14

Limited business 0.08 1 0.08 3 0.24 3 0.24


diversification
Substitute’s product 0.07 2 0.14 3 0.21 4 0.28

Sale Dalda In 2004 0.07 1 0.07 1 0.07 1 0.07

Conflict arise between staff 0.07 1 0.07 1 0.07 1 0.07


member
The use of plastic 0.07 1 0.07 3 0.21 2 0.14

TOTAL 2 4.07 5.56 5.19

According to QSPM the highest total score of 5.56 (Market development) so


unilever should adobe market development strategy.

35
4.10. GRAND STRATEGIC MATRIX

Repaid Market Growth

Unilever

Weak Competitor Position Strong Competitor Position

Slow Market Growth

Strategies for Quarter 1

• Market development
• Market Penetration
• Product development

36
CHAPTER NO 5

CONCLUSION

5.1. Conclusion
After deep analysis, I said that Unilever has a good market strength in the FMCG industry.

As I mention that in CPM matrix Unilever has a big score as compared to its competitors in

terms of advertising, quality and many other factors. Unilever has the opportunity to diversify

our product line I.e in Pharmastic and any other field. Because they focused on people's

health and care, this big opportunity for unilever. And unilever should focus on our pricing

strategies and attract more people

37

You might also like