Unilever of Pakistan on strategic

analysis

Agenda

Introduction
Brands
Vision & Mission
SWOT Analysis
PESTLE Analysis
Porters 5 forces
Financial Projection
IFE & EFE Matrix
CPM Matrix
Space matrix
QSPM matrix
I-E matrix
BCG matrix
Conclusion and propped strategy
References

Introduction
Unilever Pakistan is the leading FMCG
company in Pakistan.
Subsidiary of the Unilever Group is
operating in Pakistan since 1948.
Factory at Rahim Yar Khan was one of the
first industrial units to be constructed
after the creation of Pakistan
Its Head office shifted to Karachi from
Rahim yar khan

Cont
150 million times a day, someone
somewhere chooses a Unilever product
World-class expertise applied
internationally to serve consumers
everywhere
In the 1890s, William Hesketh Lever,
founder of Lever Bros, wrote down his
ideas for Sunlight Soap in Victorian
England that formed basis of Unilever

Vision & Mission

Vision
We help people meet needs for nutrition,
hygiene and wellbeing, with brands that help
people look good, feel good and get more out of
life.
Mission
Our Philosophy sets out our aspirations in
running our business. Its based on our code of
business Principles which describes the
operational standards that everyone at Unilever
follows, wherever they are in the world

Products & Brands

Home care products

Surf excel
Sun light
Clear
Close up
Fair lovely
Lux
Ponds

Beverages
Brook bond supreme
Brook bond A1
Lipton

Ice Cream

Cornetto
Walls Desert
Walls Heart Brand
Walls Kids Range

SWOT Analysis
STRENGTH
Diversified Products
Advance Technology
Customer loyalty
Strong Financial Position
Strong R&D
Established a dedicated Water
Management Center with state-ofthe-art Geographical Information
System (GIS) facilities

Weakness

Opportunity
Strategic acquisitions
Increasing population of Pakistan.
Huge potential/ untapped market
in the rural areas .
Younger generation, becoming
beauty conscious.
E-commerce- Online Selling
Diversification in unrelated
businesses.

Threats
Health consciousness people may
find an alternative low calorie
diets and exercise.
Deteriorating security conditions
Competitors' (P& G).
FMCG market highly responsive
to economic conditions, inflation
and social disruptions
Unorganized players i.e. cheaper
smuggled products and Chinese

Low distribution network

Low market share in some region
High operating expenses

PESTLE Analysis
PESTLE analysis of Unilever Pakistan help us to
analyze the external factors effect on Organizations
performance it also help us to predict the future event,
and help management to make changes accordingly in
organization policies operations products and
structure.

Political & legal

Economical
Socal cultural
Technological
Enviromental

PESTL
E

Political

Economical

Political stability

Peace situation
in coutry

Inflation
Increasing
employment rate
New Investment in
country
Decline in Rupee
value

Social

Population
Growth
Education
Rural to urban
shift
Change in family
system

Technological

Increasing
technology
change in buying
behavior
E commerce
New tech for
production

Legal

Taxation
low regulations for consumer goods
Product safety standards are followed

Environmental

Global warming
Increasing waste of plastic and
chemicals
Unilever R&D centers for customer
safety products (UK, Italy and
Netherland)

Porters 5 forces
Threat of new entry: Low
Heavy investment in R&D,
Advertisement and Brand equity
Entering cost is high
Lack of latest technology
High financial resources

Bargaining Power of suppliers:

Low
Having wide spreaded network of
suppliers
Large consumption of supplier
goods
Having policy of local buying &
manufacturing

Bargaining power of buyers:

High
Increased customer choices
Buyers price sensitivity needs to
be emphasized

Intensity of Rivalry: High

Nestle & P&G are global
competitors
Emerging local competitors

Threat of substitute: High

Low differentiation
Lower consumer loyalty in
household products

Financial Projection

Liquidity ratio (Current ratio)

Inventory turnover ratio
Sales & Net income
EPS

IFE Matrix
STRENGTH

Key
External
Factors

Weight

Rate

Weighted
score

Diversified
Products
Advance
Technology
Customer
loyalty
Strong
Financial
Position
Strong R&D

15%

0.60

10%

0.40

5%

0.12

5%

.20

15%

.60

50%

20

1.82

IFE Matrix

Weakness

Key
External
Factors

Weight

Rate

Weighted
score

Low
distribution
network
Low market
share in
some region
High
operating
expanses

15%

.15

10%

.20

10%

.20

15%

.30

50%

0.85

100%

2.67

EFE Matrix

Op
po
rtu
nit
y

Key external factor

weigh Rate
t

Weigh
ted
score

Strategic acquisitions
Increasing population of Pakistan.
Huge potential in the rural areas of
Pakistan
Younger generation is becoming
beauty conscious.
E-commerce- Online Selling can be
initiated.
Diversification in unrelated business

10%

.20

10%
10%
15%

3
2
3

.15
.10
.30

5%

.10

50%

12

0.85

EFE
Matrix
Key external factor
Weight
Rate
Threat

Health consciousness
people may find an
alternative low calorie
diets and exercise.
Deteriorating security
conditions
Competitors' (p &g)
Product smuggling

Total

Weighte
d score

10%
15%

2
3

.20
.45

10%

.20

15%

.60

50%

11

1.45

100%

2.3

CPM Matrix
weig
Critical
success factor ht

Unilev
er
Rate

scor
e

P&G
Rate

Nestl
score e

score

Rate

Advertising

o.15

0.4
5

.60

.30

Price

0.2

0.8

.6

.80

Financial
position

0.2

0.8

.8

.60

Customer
Loyalty

0.10

0.3
0

.40

.30

Market share

0.15

.45

.60

.45

Technology

0.2

0.6

.6

.60

Total weighted
score

3.4

3.05

Space Matrix
Internal strategic position

Rati
ngs

External strategic position

Rati
ngs

Financial Strength (FS)

Current Ratio

Inventory turnover ratio

Earnings per share

Operating profit

Net sales

2
2
3
4
4

Environmental Stability(ES)
Price range of competing products

Rate of inflation

Demand variability

Technological changes

3
2
3

Competitive Advantage(CA)
Customer loyalty

Control over suppliers

Product quality

Product life cycle

Technological know-how

3
3
3
3
3

Industry Strength(IS)
Financial stability

Consumption oriented culture

Growth potential in developing countries market

3
3
3

Space
Matrix
Y+(FS)

Y-(ES)

X+(IS)

X-(CP)

-3

-3

-3

-3

-2

-3

0.25

-3
-3

4
3

-3
-2.75

-3

0.3
0.25
0.2
0.15
0.1
0.05
0
X

QSPM Matrix
Market development
strategy

aggressive

Key factor
strength

weight

rate tota
l

weig
ht

rate

total

Diversified
Products
Advance
Technology
Strong
Financial
Position
Strong
R&D

.10

.30

.20

.80

.15

.60

.10

.20

.15

.45

.05

.10

.10

.30

.15

.60

Total

1.65

1.70

QSPM Matrix
Market development
aggressive
Key factor strategy
weig rat tota weig rate total
Weakness
ht
e
l
ht
Low
distribution
network
Low market
share in
some region
high
operating
expanse

0.20

.60

.20

.80

.10

.20

.10

.30

.20

.80

.20

.60

total

1.60

1.70

Total score

3.25

3.40

Key factors
opportunitie
s
Strategic
acquisitions
Increasing
population of
Pakistan.
Huge
potential in
the rural areas
Younger
generation is
beauty
conscious.
E-commerceOnline Selling
can be
initiated.
Diversification
in unrelated
business

QSPM Matrix
Market development
weight
rat total weig
strategye
ht

rate aggressive
total

.05

.10

.10

.30

.05

.05

.05

.10

.10

.30

.10

.40

.10

.40

.15

.45

.05

.10

.05

.05

.15

.45

.05

.20

Key factor
threats
Health
consciousnes
s people may
find an
alternative
low calorie
diets and
exercise.

Deteriorating
security
conditions
Competitors'
(p&g)
Product
smuggling

QSPM Matrix
Marketrate
development
weigh
total weig
strategy
t
ht

rate aggressive
total

.20

.20

.10

.40

.10

.10

.10

.20

.15

.45

.15

.60

.05

.20

.15

.45

.95

1.65

2.35

3.15

Total

I.E Matrix
EFE

IFE
4

retention

IFE Weighted score is 2.67 While EFE Weighted score is 2.3

INTERPRETATION:
Unilevers strategy is to invest and hold.

BCG MATRIX
Relative market share position in the industry.
INDUSTRY
SALES

20 / 1

RELATIVE MARKET SHARE POSI320TION IN

0.5
High

Growth
RATE (%)
0

Medium

DOG

COW
Low
-20

High

medium

low

STAR: The company has the best market share and generate
the most cash are considered stars.

Conclusion and
Recommendations:
After the analysis of I.EM, BCG
Matrix, Space Matrix, and other
matrices
we come to know that company is in
Retention Region, Star Mark, and
Aggressive Quadrant.
So as per our analysis company can
go with market penetration and
integration type strategies.

References
https://
www.unilever.pk/news/press-releases/2010/unilever-funded-d
rinking-water-supply-project.html
https
://www.unilever.pk/about/who-we-are/about-Unilever/unilever
-pakistan-ltd/
)
https://
www.unilever.pk/about/who-we-are/about-Unilever/unilever-p
akistan-ltd/
http
://www.scribd.com/doc/33888729/Strategic-analysis-of-UNIL
EVER-Pak-Ltd#scribd
)
https://
www.unilever.pk/about/innovation/our-r-and-d-locations
(specilly for research and development)