Lever Brothers was founded in 1890 and grew through acquisitions, becoming Unilever through a merger in 1930. Unilever is now one of the largest consumer goods companies worldwide, employing over 179,000 people across 151 countries. It has a diverse portfolio of food, home, and personal care brands including Lipton, Dove, Lux, and Lifebuoy. Unilever Pakistan operates across six manufacturing sites and has over 1,600 employees in the country.
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History and Strategies of Unilever in Pakistan
1.
2.
3. HISTORY
• Lever brothers is founded by
WILLIAM HESKETH LEVER in 1890
• Key player in food & household
product industry
• Historically grew through acquisitions
4. INTRODUCTION
LEVER BROTHERS, THE OLD NAME OF UNILEVER
CHANGED INTO UNILEVER AFTER THE MERGER OF
LEVER BROTHERS & MARGARINE UNIE IN 1930
UNILEVER IS A MULTI NATIONAL COMPANY
IT IS ONE OF THE LARGEST CONSUMER GOODS
COMPANIES IN THE WORLD
ITS BRANDS ARE ON SALE IN 151 COUNTRIES
5. UNILEVER STAFF
TODAY UNILEVER EMPLOYEES 179,000 PEOPLE IN
150 COUNTRIES WORLDWIDE
TODAY UNILEVER EMPLOYEES IN PAKISTAN
ARE1677.
6. VISION STATEMENT
“We help people around the world to
meet everyday needs for nutrition,
hygiene and well being, with brands
that help people look good, feel good
and get more out of life”
7. MISSION STATEMENT
“Vitality is at the heart of everything
we do. It’s in our brand, our people
and our approach to business”
14. UNILEVER
PAKISTAN(1948)
4 WHOLLY OWNED AND 6 3RD PARTY
MANUFACTURING SITES
FIRST SITE IN PAKISTAN WAS IN RAHIM YAR KHAN
LARGEST FMCG COMPANY NOW OPERATING AT
SIX LOCATIONS IN PAKISTAN
21. POLITICAL FACTORS
• Smuggling of black tea under afghan
transit trade agreement
• Increased tax and import duties (33.7%)
• No steps being taken to discourage
counterfeiting
22. ECONOMIC FACTORS
• UPL uses palm oil as a major input, but
price fluctuations
• Energy crises is effecting the ice-cream
segment
• High inflation rate
23. SOCIAL CULTURAL
FACTORS
• Growing urbanization
• Higher number of youngster
• Rising income
These factors led to change consumer life
style
24. • Total population 173.51 million
• 110.46 million rural areas
• 63.05 million urban areas
26. LEGAL FACTORS
• Changing legislation
• Minimum wages of unskilled workers
increased from 6000 to 7000 rs in 2010
• As per law after 9 months temporary
workers should me made permanent
32. • Only 1500 employees are on their payroll
• Many protests by labor unions
• Using nameless factories in Karachi
• Had to sale dalda
33. opportunities
• Could develop new product
• Local competitors have poor products
• Unrelated diversification
• Around 40% smuggled tea can be catered
34. • Urban areas are only familiar with shampoo
• End user respond to new ideas
• Strategic acquisitions can help to expand
further
• Huge potential in rural areas
35. • Young generation is becoming beauty
concious
• New soaps can be introduced in winter
• Forward integration can be done
• Pakistan is 3rd largest importer of tea, huge
potential in tea farming
36. THREATS
• Legislation could impact
• Retention of key staff critical
• Major competitor
• Competitor aggressive marketing
39. BARGAINING POWER OF
BUYERS
UPL has to be precautious on deciding
about prices and satisfying customers to
avoid of switching customers
40. COMPETITIVE RIVALARY
• Large num of competitors P & G
• Substitute products and low prices of
competitors
• UPL have capacity of mass production
41. THREAT OF SUBSTITUTE
• Should focus on R & D to avoid substitute
products
• Substitutes has reduced brand loyalty
42. THREAT OF NEW ENTRANT
• In pak less legal requirements and capital
is required
• ULP’s brand image is a strong barrier
43. SUPPLIERS BARGAINING
POWER
• ULP has policy of local buying and local
manufacturing
• Blanket agreements with suppliers
• Built strong relations with supplier by
treating them fairly
54. Firms infrastructure
• Knowledgeable experts
• Effective management information system
• Marketing research department shares
consumer research data
55. Human resource management
• Skilled, qualified and expert management
• Formal and informal network
communications
• Training programs and seminars
57. procurement
• Outsource raw material
Europe, America, far east and local
availability
• Automatic replenishment systems
• Packaging material from packages limited
Lahore
58. operations
• Have got economies of scale to reduce
unit cost
• Production process of sunsilk and lifebuoy
is reliable
60. Relationship and marketing
• Incase of lifebuoy focus only on males and
ignore female
• Incase of shampoo main focus is on
females
• No strategy to make good relationships
with retailers
61. • One thing they lag’s in is centralized long
term strategies