Unilever Management

8/6/2019 Unilever Management

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October31, 2010

DEVELOPING AND IMPLEMENTING PROMOTIONSTRATEGIES

ALLAMA IQBAL OPEN UNIVERSITYASSIGNMENT # 2

SUBMITTED TO:

PROF. TARIQ ASMAT

SUBMITTED BY:

USAMA

NAZEER

AH-523459

DATED: 31.10.2010

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Acknowledgement

All praises belong to almighty Allah who is thesupreme authority knows the ultimate relationsunderlying all sorts of phenomenon going on in thisuniverse and whose blessings and exaltation flourishedour thoughts and our ambitions to have the Progress thatwe have in Unilever Pakistan. We also offer our humblestthanks to HOLY PROPHET HAZRAT MUHAMMAD(PBUH) who is the forever torch of guidance andknowledge for humanity as a whole.

We deem it our utmost pleasure to avail thisopportunity to express gratitude and deep sense ofobligation to our teacher TARIQ ASMAT for his valuableand dexterous guidance, scholarly criticism, untiring help,compassionate attitude, kind behavior and moral support.

Through the Project he helped us and guided us in everyaspect, as that was a very newexperience for us.

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ABSTRACT

There are many different types of promotional

strategies a company can implement, and

promotional products are just one of them. You

need to have complete campaign and strategy in

place. Promotional strategies like Sales Pitches,

Follow-up with clients, Networking, Events, Media

releases, Promotional products, Talk to us. In this

assignment I discuss about the promotion

strategies of uni-lever how they promote their

products and which strategy they use and also

some suggestion how they improve and make

efficient their promotion.

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TABLE OF CONTENT

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Promotional Strategies

There are many different types of promotional strategies a company can

implement, and promotional products are just one of them. You need to have

complete campaign and strategy in place. Here are a few strategies that can

be employed.

1. Media releases

Media releases are a great way to get information about your product,

service or company out to a large amount of potential customers. If you can

put information about your product into an interesting story then there is a

chance your story will be picked up. Remember it must be interesting for

people or it will not be grabbed.

2. Events

Is your event going to be memorable? Are people going to feel like friends

visiting or like walking wallets? Spend a little extra, make them feel welcome

and get to know people. Yes, you are there for a purpose, however people

expect a good time at events and you want to make sure they leave with a

favourable impression.

3. Networking

Networking within your industry and clients is a great way to get yourself

and you product noticed. Attend networking functions, have a good story or

joke ready, and they will be sure to remember you for the right reasons.

4. Sales Pitches

A great sales pitch consists of not only showing the prospect your product.

You are also selling yourself. Be likeable, bring along morning or afternoon

tea, and be memorable.

5. Follow-up with clients

Once you have spoken with a client it is important to follow up my mail or

email, if only to confirm with them the items you discussed. This also sets

the tone for further talks and reminds them that they are important to you.

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6. Promotional products

Promotional products can be used to accomplish several things. They can

motivate customers to use your product or service, increase attendance at

conferences or trade booths, thank loyal customers, for attracting staff, and

for rewarding staff. When choosing a promotional product think of the goal

you are trying to achieve.

7. Talk to us!!

Promo Sales consultants are happy to have a chat about what you need fromyou promotion. We are always interested in hearing from you and want tosee your promotion succeed.

you started!

How much farther you go is up to you.

Advertise in the classified advertising section of your community

newspaper.

Advertise in the Yellow Pages.

Advertise on a grocery buggy or bag.

Approach your prospective customers over the phone, in person or by mail.

Be a guest speaker at seminars and present on your area of expertise.

Be a guest speaker on radio talk shows.

Build and maintain a customer mailing and contact list on database

software.

Build your image with well designed letterhead and business cards.

Design a brochure that best explains the benefits of your services.

Design a mail order campaign.

Design a point of purchase display for your product.

Design a telemarketing campaign.

Design an image building logo for your company.

Design and distribute a quarterly newsletter or an industry update

announcement.

Design and distribute company calendars, mugs, pens, note pads, or other

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advertising specialties displaying your company name and logo.

Design and distribute a free "how to do it" hand-out related to your

industry (e.g. Tips

for conserving energy in your home).

Design T-shirts displaying your company name and logo.

Explore cross promotion with a non-competing company selling to your

target market.

Explore the costs of advertising in newspapers, magazines, on radio,

television,

billboards, bus shelters and benches. Refer to the publication "Canadian

AdvertisingRates and Data" (CARD) for some of this information.

Explore ways to share your advertising costs using cooperative advertising.

Follow up customer purchases with a thank you letter, Christmas or

birthday cards.

Promotional Strategies

Have your company profiled in a magazine or newspaper that is read by

prospective

customers.

Hire an advertising agency or public relations firm.

Hold a promotional contest.

Hold a seminar on your service, product or industry.

Include promotional material with your invoices.

Look for prospective customers at trade shows related to your industry.

Look for prospective customers in associations & at seminars related to

your industry.

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Look for prospective customers in magazines and newspapers related to

your

industry.

Package your brochure, price lists and letter in a folder for your customers.

Place a sidewalk sign outside your store or office.

Place flyers on bulletin boards and car windshields.

Place promotional notes on your envelopes, mailing labels.

Place signs or paint logos on your company vehicle(s).

Prepare a corporate video.

Prepare a list of product features and benefits to help you plan your

advertising and promotional campaigns. Prepare proposals offering solutions to your customers' needs

Provide free samples of your product or service.

Have an open house at your business

Join the Chamber of Commerce

Become a sponsor of a community event.

Sponsor a community sports team.

Have a folded business card made up. On the front, place a catchy slogan.

On the inside, list your product or service and how you provide it. On the

other side, offer

contact information.

For More Information

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UNILEVER PAKISTAN

About us

Vision

statement

To be the best consumer product company in

Pakistan and all around the globe in all

departments that we deal in.

Mission Statement

We meet everyday needs of nutrition, hygiene

and personal care with brands that help people feel

good, look good and get more out of life.

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History of UNILEVER

Unilever Pakistan Ltd (one of the largest multinational companies)is the member of Unilever PLC London. Unilever was formed in1930 when the Dutch Margarine Company Margarine Uniemerged with British soap maker Lever Brothers. Companies werecompeting for the same raw materials, both were involved inlarge-scale marketing of household products and both usedsimilar distribution channels. Margarine Unie grew through

mergers with other margarine companies in the 1920s.

Unilever was founded in 1885 by William Hesketh Lever. Unileverestablished soap factories around the world. In 1917, he began todiversify into foods, acquiring fish, ice cream and canned foodsbusinesses.

In the Thirties, Unilever introduced improved technology to thebusiness. The business grew and new ventures were launched inLatin America. The entrepreneurial spirit of the founders and theircaring approach to their employees and their communities remainat the heart of Unilever's business today. Unilever NV andUnilever PLC are the parent companies of what is today one of thelargest consumer goods businesses in the world. Since 1930, thetwo companies have operated as one, linked by a series ofagreements and shareholders that participate in the prosperity of

the whole business.

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Unilever Pakistan Limited (UPL)

The Unilever Pakistan Limited (UPL), formerly Lever Brothers

Pakistan Limited was established in Pakistan in 1948. The town of

Rahim Yar Khan was the site chosen for setting up a vegetable oil

factory. Its earlier headquarter was situated at Rahim Yar Khan.

But it was shifted to Karachi from Rahim Yar Khan Site in the mid

60s. Unilever is now operating six factories at different locations

around the country.

Unilever Pakistan Limited is largest fast moving consumer

Products Company in Pakistan. Unilever Pakistan Limited is a part

of Unilever- a global company. Unilever Pakistan Limited is

producing more than 50 brands in Pakistan. Unilever has a long

list of brands such as Surf, Vim, Rin, Lifebuoy, Sunlight, Lux,

Rexona, Sunsilk, Close-Up, Blue-Band, Dalda, Planta, Liptons

Yellow Label, Taaza and Richbru, Brook Bonds Supreme and

Kenya Mixture etc.

Unilever Pakistan limited is a wholly owned subsidiary of Unilever

Overseas Holding, UK, Unilever PLC (A company incorporated inthe United Kingdom). The Company is incorporated in Pakistan

and listed on the Karachi, Lahore, and Islamabad Stock

Exchanges.

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Operational

achievements

Unilever is one of the worlds top three

food firms after Nestle and Kraft Foods. It is worlds second largest packaged

consumer goods company behindProcter & Gamble

Strong broad-based underlying salesgrowth of 7.4% across categories

More competitive cost base: 1.1 billionsavings from supply chain andorganizational efficiencies

Increased investment behind its brands

Portfolio reshaped through disposals,including North American laundry, Boursin,Lawrys and Bertolli olive oil

Portfolio strengthened through theacquisition of Inmarko ice cream in Russiaand the planned acquisition of the TIGIhair salon brands

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Named International Supplier of theYear by Tesco for the third year running

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Brands of Unilever:

Unilever is currently one of the biggestconsumer goods company in the world havingvarious brands. Their leading brands haveinternational appeal because they meet a

need or fulfill a desire that people share, nomatter where they live. Some of their majorbrands available in Pakistan are:

Personal Care

Brands

Food: Home

carebrands

Axe Knorr Comfort

Dove Lipton

Rin

Lifebuoy Rafhan Surf excel

Lux Supreme

Ponds Walls

Rexona Energile

Closeup Blue Band

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Sunsilk Broke bond A-1

Vaseline

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Unilever in Global Environment

Currently a Unilever brand can be found in one out of every two

households in the world. Unilever is a multinational corporation

with 400 brands spanning 14 categories of home, personal care

and foods products. No other company touches so many people's

lives in so many different ways. Their brand portfolio has made

them leaders in every field in which they have worked. It ranges

from much-loved world favorites including Lipton, Knorr, Dove and

Omo, to trusted local brands such as Blue Band and Suave. The

brands produced by Unilever have become global phenomenon.

Unilever ahs developed its strength worldwide in acquisition of

other firms, and their subsequent Unileverization. Unilever has

been trying to become a transnational organization, and to some

extent it has succeeded in doing so. Unilever employs about 174

000 people in 100 countries worldwide, and supports the jobs of

many thousands of distributors, contractors and suppliers.

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Strategies

According to book decisions and actions that determine the long-

run performance of the organization are called strategies.

Mr. Naeem Chaudhary told us that Unilever basically works on

growth strategy as growth is the key to sustainable long term

value creation, and because growth is where Unilever has been

deficient in the past. Through the 80s and 90s, Unilever volume

growth averaged around 2.5%. In 1990 they launched a 5 year

Path to growth strategy. Their goal is to bring about a sustained

step-changed in Unilevers growth rate.

Path to Growth strategy

Path to growth strategy was basically to bring about a sustained

step-changed in Unilevers growth rate. Since introduction of this

strategy Unilever has reduced its brands from 1600 to 400

leading brands and 250 tail brands. This strategy enabled them to

concentrate on resources on portfolio of their leading brands with

strong growth potential that best meet the needs and aspirations

of people around the world. Path to growth has achieved manyimportant things. It delivered brand focus, it improved global

buying, drove up margins and improved capital efficiency but it

failed to transform their growth performance.

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New strategy

The new strategy opted and being used by Unilever is to

reorganize its organizational structure to focus on needs and

wants of consumers and brand management. This strategy is

based on product and brand extensions and using advertisement

to connect with consumer needs and increase consumer focus onhealth and nutrition products.

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Advertisement

In year 2008 Unilever spent about 5055 MN (euro) on advertising

and promotions of their product. The mediums used by Unilever

for marketing purpose are:

Paper Media

Print Media

Electronic Media

Online Media

Paper mediaUnilever promotes their products

through magazines like Sunday

magazines, Akhbar-E-Jahan and different

trade magazines. In different newspapers

such as the news, dawn, times, Jang,

Nawa-E-Waqt

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Electronic mediaUnilever also promotes its products through

T.V channels like Geo, Ary channels, Indus channels. Also by the

Radio through City FM 89, Radio 1 Fm 91 and other radio

prominent radio channels. HMB splash will also promote on

internet through different websites.

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Print mediaWe promote UNILVER products by

placing bill boards and through fliers, pamphlets atcommercial and residential areas and also at the

main boulevards of cities and also by distributing

broachers.

Online Media:

Unilever has also started advertising their

products on social online sites and search engines

taking into consideration the importance of online

media in present environment.

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SWOT ANALYSIS:

SWOT analysis, is a strategic planning

tool used to evaluate the strengths,

weaknesses, opportunities and threats

involved in a project or in a business

venture. It involves specifying theobjectives of business venture or

project and identifying the internal

and external factors that are

favourable and unfavourable to

achieving that objective. The SWOTanalysis classifies the internal aspects

of the company as strengths and

weaknesses and external situational

aspects as opportunities and threats.

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Strengths:

Strengths are internal factors to the organization.

Unilever is one of worlds leading fast moving

consumer goods (FMCG) companies. In year 2008 itsNet profit increased from 4136 Millions to 5285 Millions

(euro). Major strengths of Unilever are as following:

The first and most important strength of Unilever isthe image of the company itself.

Strong brand names. Most of Unlivers brandnames are leading products in their particularcategory e.g. blue band, surf excel etc.

Unilever has got Sound and experiencedmanagement with qualified executives runningoperations.

Excellent marketing department assisted by ahighly regarded marketing research unit.

Merger with Brooke bond was expected to result incost saving and spur earnings growth and itsworking as per expectations.

Unilever products have good reputation amongtheir customers because of good product quality.

Diversity of its product line is also a major strengthof Unilever.

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Weaknesses

Weaknesses are that what the organization cannot do but its

competitors can do better than it.

About 80% of raw material is imported for the manufacturingof the consumer goods. Raw material constitutes about 85%of manufacturing cost, leaving Levers margin exposed to

rupee devaluation. Rampant smuggling of tea and detergents has seriously

affected levers sale and earning. Unless the govt. takesserious steps to curb smuggling growth in sales and earningwill continued to be significantly restrained.

One of the weaknesses of Unilever and its productsespecially when selling in a developing country like Pakistanis its product prices which are a little if not more higher thanwhat a regular rural person could afford.

Another weakness for Unilever is what should be its majorstrength as well. The size of corporation is so huge that itsdifficult to manage all the units and their specificdepartments. So sometimes some products get moreattention and some stay hidden from sight.

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Opportunities

Opportunities are the chances for an organization to do better.

The rapid expanding urban population in Pakistan is the keyopportunity for Unilever to extend its sales.

Awareness growing in rural areas due to education andchildren with family members abroad sending foreignincome is also potential costumers for Unilever.

Unilever can also stretch their market to African countrieswhere there could be a large market for their products in the

future.

Threats

Threats are the hurdles for an organization to proceed.

Procter & Gamble is the significant multinational companyand a major threat with presences in soap, detergents andpersonal products.

Rise in the inflation rate in the world because of economiccrisis can also results to fall in sales of the company dueto low purchasing power of consumers. Inflation rate alsoaffects companies cost of production because rise inprices of raw material

There are many competitors of Unilever in Marketincluding P&G, Nestle and Kraft Foods who are fightinghard to leave one another behind.

Instability of Pakistani Political system has always been amajor threat for companies operating in Pakistan and its

not different for Unilever. Changing political systemaffects Pakistani economy as well as organizationsoperating under it.

There is also a trend of rising small competitors inPakistan in consumer product industry recently which canalso affect Unilevers sales especially in rural areas.

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CONCLUSION

Unilever is a very strong multinational corporation with a

lot of strengths, including its strong management, to run its

operations to the heights of success. It also has a few

weaknesses but those are very minor ones that are present

with every organization and it also has got the resources

and managerial muscle to cope with those weaknesses and

threats. In the near future with globalization of world

continuing Unilever will be even bigger and stronger.

Promotion strategies are good butt need more development

according to the changing demand and environment.

RECOMMENDATIONS Build and maintain a customer mailing and contact list

on database software.

Design a brochure that best explains the benefits of

your services.

Design a mail order campaign.

Design and distribute a quarterly newsletter or an

industry update announcement.

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Design and distribute company calendars, mugs, pens,

note pads, or other advertising specialties displaying

your company name and logo.

Explore ways to share your advertising costs using

cooperative advertising.

Follow up customer purchases with a thank you letter,

Christmas or birthday cards.

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REFERENCES

www.google.com

http://www.unilever.pk/
http://www.google.com/http://www.unilever.pk/http://www.google.com/http://www.unilever.pk/

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