UNILEVER PAKISTAN

Course: Analysis of Pakistan Industry

TABLE OF CONTENT

S.NOTOPICSPAGE NO

1Acknowledgement4

2Role of industry in economic development5-7

3Introductuion about the industry and the company8

4Unilever today9-10

5Brands11-16

6Why we have choosen17-18

7Recommendation and conclusion19

8Appendix-120-21

ACKNOWLEDGEMENT

We are thankful to Almighty Allah for giving us the strength, courage, tolerance and wisdom to bring this report to completion. This report is done as a semester report of our course ANALYSIS OF PAKISTAN INDUSTRIES.We are really thankful to our course instructor Ms. without whom the accomplishment of the task would have never been possible. We also thank her for giving us this opportunity.

In Unilever, we would like to mention the name of Mr. Tallal who gave his time and helped us in guiding about the report work and co-operated with us.

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ROLE OF INDUSTRY IN ECONOMIC DEVELOPMENTRole of industry in economic development are as followsIncrease in Output and Incomes, Increase In Incomes And Employment.,Agricultural Development, Removal Of Unemployment And Under Employment.,Economies Of Scale, Instability In The Prices Of Exports,Increase In Use Of Money,Socioeconomic Changes, Self-Sufficiency And Productivity, Increase In Savings And Investment.

1. Increase in Output and IncomesIt is the industrial development which makes it possible to produce greater amounts of consumer as well as producer goods. Moreover, because of industrial growth the construction and provision of infra-structure becomes possible. Thus it is said that industrial growth not only stimulates the directly productive activities but it also promotes social overhead activities.

2. Increase in Incomes and EmploymentIt is obvious that the economically advanced countries are normally more industrialized than economically poor countries. At told earlier that the economic history of DCs shows that industrial growth in these countries provided the foundations for total development. Therefore, it is argued that for the sake of economic growth the share of industrial sector in national income is increased while that of agri is decreased. In this way, the fruits of development will be shifted dote the other sectors of the economy. Consequently, a wave of change will emerge in the economy leading to raise incomes and employment.

3. Agricultural DevelopmentIn case of UDCs there is a big pressure of population on the lands. As a result, the lands go on subdividing. The farmers are bound to make subsistence farming. In such situation the agri. sector will remain lagging. Therefore, for the sake of economic development the agri. sector will have to be re-oriented through industrial development. Because of industrial development the tractors, threshers, tube wells, chemicals, pesticides etc. will become available. By having utilized them the agriculture production and output could be boosted up, and agri. sector will shift its emphasis from traditional farming to modern farming.

4. Economies of ScaleIndustrial sector is of crucial importance for the UDCs because it is furnished with increasing returns to scale and the economies to scale, both internal as well as external. Whereas such phenomenon is not attached with agriculture sector. The economies of scale from industrialization will lead to reduce the costs of production. It will have the effect, of extending the markets.Moreover, it is the industrialization which puts to an end the static life of UDCs. The industrial development will promote civic and urban life. The research and training facilities will be promoted and further forces of change will set in.

5.Instability in the Prices of ExportsIndustrialization is advocated for the UDCs that it will save them from the instability which rises due to big fluctuations in the prices of their primary exports. Therefore, if developing countries install their industrial concerns they will be able to produce the import substitutes as well as manufactured goods for the sake of exportation. The prices of manufactured goods are more or less remaining stable.

6.Increase in Use of Money.Because of industrial development the use of money in the economy increases. The traditional society with the barter exchanges will come to an end. The new and technological changes will occur. The people will follow inventions and innovations. The risk taking ventures will be taken up and efficient entrepreneurs will come forward.

7.Socio Economic Changes Itis argued that industrialization can alter the present economic and social structures of UDCs. As more goods and services become ava Ible to the people. The values of the society will change. The urbanization will increase leading to reduce illiteracy and lethargic attitudes. The opportunity cost of time will increase. The rural setup dominated by feudalism will come to an end. The standard of living of rural and urban population will improve. The distribution of income will become fairer. There are so many advocates of Big Push theory who have actually stressed upon the need for industrialization on the strength of dynamic externalities.

8.Self-Sufficiency and ProductivityMost of the economists are agreed upon it that it is the industrial development which will enhance productivity in the country, as well as provide self-sufficiency in a variety of fields. This is the reason that Infant Industry argument is given with the aim of industrialization. This will have the effect of building the industrial structure in the country.

9.Increase in Savings and Investment The economic history of NICs shows that the industrialization in these countries has led to grow the incomes, savings and investment. They have been in a position to break the vicious circle of poverty. Their markets have been extended. Above all, the inflow of foreign investment is increasing day by day in these countries. Thus, through multiplier effects the incomes and employments are increasing far more than initial stimulus.

INTRODUCTUION ABOUT THE INDUSTRY

FOOD AND PERSONAL CARE INDUSTRY

The food industry is a complex, global collective of diverse businesses that supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry.

Personal care or toiletries is the industry which manufactures consumer products used in personal hygiene and for beautification.

OVER VIEW OF THE COMPANYUnilever's corporate mission to add vitality to life shows how clearly the business understands 21st century-consumers and their lives. But the spirit of this mission forms a thread that runs throughout our history.

In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap his revolutionary new product that helped popularize cleanliness and hygiene in Victorian England. It was 'to make cleanliness commonplace; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products.

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. Unilever Pakistan is the largest fast-moving consumer goods (FMCG) company in Pakistan, as well as one of the largest multinationals operating in the country. Now operating six factories at different locations around the country.

UNILEVER TODAY

No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products.

Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods companies. In fact, 150 million times a day, someone somewhere chooses a Unilever product.Look in your fridge, or on the bathroom shelf, and you're bound to see one of our well-known brands. We create market and distribute the products that people choose to feed their families and keep themselves and their homes clean and fresh.People's lives are changing fast. As the way we all live and work evolves, our needs and tastes change too. At Unilever we aim to help people in their daily lives. So we keep developing new products, improving tried and tested brands and promoting better, more efficient ways of working.

We have a portfolio of brands that are popular across the globe- as well as regional products and local varieties of famous-name goods. This diversity comes from two of our key strengths:

Strong roots in local markets and first-hand knowledge of the local culture.

World-class business expertise applied internationally to serve consumers everywhere.Focusing on performance and productivity, we encourage our people to develop new ideas and put fresh approaches into practice. Hand in hand with this is a strong sense of responsibility to the communities we serve. We don't only measure success in financial terms; how we achieve results is important too. We work hard to conduct our business with integrity- respecting our employees, our consumers and the environment around us.Unilever is one of the world's leading suppliers of fast-moving consumer goods. Here are some recent highlights from our three global divisions - Foods, homecare andpersonal care.

FOODS The acquisition of Best foods in 2000 brought us leadership in the culinary category. Knorr is now our biggest brand, with 2.3 billion sales in over 100 countries and a product range covering soups, bouillons, sauces, noodles and complete meals. We are the number one producer of frozen foods in Europe, under the Findus brand in Italy, Birds Eye in the UK and Iglo in other European countries. We are the category leader in margarine and spreads in most European countries and North America, with brands such as Becel (the Netherlands), Flora (UK) and Take Control (US). We have met consumer demand for healthy foods by launching proactive, a spread which contains ingredients that can help reduce cholesterol levels. In the branded olive oil category we are a leader, the most important brand being Bertolli. Appealing to consumers' taste for Mediterranean food, we have launched Bertolli pasta sauces and dressings. We are the world's leading ice cream producer, with brands such as Algida and Wall's in Europe, and Ben & Jerry's in the United States. Innovations such as Magnum snack-sizes and Cornetto miniature and multi-packs have sparked progress. We are the largest seller of packet tea in the world through our Lipton and Brooke Bond brands.

HOME& PERSONAL CARE We lead the home care market in much of the world, which includes cleansing and hygiene products. Many of our home care products are market leaders including Brilhante, Cif, Comfort, Domestos, Omo, Skip and Snuggle. Within the personal care market, we are global leaders in products for skin cleansing, deodorants and antiperspirants. Our global core brands in the personal care market are Axe, Dove, Lux, Pond's, Rexona and Sun silk.

INTRODUCTION OF PRESIDENT AND CEO

EHSAN A. MALIK - CHAIRMAN & CEO Ehsan joined the Board on September 01, 2006 and is also the Chairman of Unilever Pakistan Foods Limited Prior to this, Ehsan was Chairman and CEO of Unilever Sri Lanka Limited. His earlier international appointments covered Unilevers regional business in Egypt, Lebanon, Jordan, Syria and Sudan as well as Unilevers Head Office in UK. Ehsan is a Fellow of the Institute of Chartered Accountants in England and Wales and alumni of the Wharton and Harvard Business Schools.

COMPANYS MISSIONUnilever's mission is to add vitality to life. We meet everyday needs for nutrition with brands that help people feel good, look good and get more out of life.

COMPANYS VISIONWe work to create better future every day. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small every day actions that can add up to a big difference in the world. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

BRANDS OF UNILEVER COMPANY

SURF EXCELSurf excel is known for its famous tagline Daag tou achay hotay hain/Dirt is good. But this is much more than just a tagline. It is a central philosophy that the brand lives by, with an intrinsic passion to ensure child development through tactile learning. Over the years, the brand has worked hard to build awareness on the importance of child learning through experience.Dirt is a natural part of the process of children experiencing life and developing. There are small rights that allow children to live fully, such as playing in a park without the fear of getting dirty or painting a flower pot without a care about paint stains. All these little but crucial experiences help nurture creativity, and build confidence in a child.Although child development is at the very heart of Surf Excel's message, this would not be possible without the superior stain removal properties that come with every bag of Surf Excel. Its ability to remove a wide variety of stains effectively is what gives Surf Excel users the ability to break free from the mundane and become liberated. Because Surf Excel is so good at cleaning, you dont have to worry about getting dirty, therefore you can give your kids the freedom to experience and truly engage with life and grow and develop at the same time.

PONDSOver the years no one has cared for your skin more than Ponds. Since 1991, UPL extended its brand portfolio to serve you better. No wonder it has been passed on to you from generations with the same affection that the product stands for. However, with time Ponds has evolved according to your changing needs thanks to the Ponds Institute- a state- of the-art research center. Inspired by your needs, the Ponds Institute over the years has undertaken several research projects with women to better understand of what they think and want for their skin.

DOVE Over the last few years, Dove has focused on delivering products that inspire women to enjoy their own beauty individuality. The global Campaign for Real Beauty, demonstrates our commitment to the brand's mission 'to make more women feel beautiful every day, by widening today's view of beauty and by inspiring women to take great care of them.

BLUE BANDBlue Band is made from high quality vegetable oils, so it isan important source of essential fats and vitamins A, D and E for which there are not many other dietary sources. A thin layer of spread on bread every day makes a big contribution to the healthy growth and development of the whole family.

WALLS AND CORNETTOWalls is sold in more than 40 countries making it the most widely available ice cream worldwide. Unilever is the global leader of ice cream and frozen desserts manufacturing with almost 18% of the global market share.The Cornetto experience consists of a delicious, crispy-baked wafer, coated inside from top to bottom with a chocolate layer, with rich creamy frozen dessert inside, and topped off with sauce and chocolate chips, with a crunchy chocolate plug at the wafer cone from top to end of the product finishing the experience on a delicious high note.Cornetto is one of the first Brands that were introduced on Walls launch in Pakistan. Cornetto is not only available in traditional Vanilla, Chocolate, Strawberry flavors but has also been available in Caramel, Cappuccino and supplementary flavor variations.In 2013 Cornetto launched Cornetto Music Icons a music show where past and present stars of the music industry provided mentoring to promising new talent.

LUXLux is a beauty soap which has silk protein extract that delivers soft and smooth skin. With natural ingredients like peaches, cream and silk protein extract, Lux is a soap that delivers for the most superior soft skin and beautiful fragrance. the biggest contribution to promoting the arts by Lux, has been the formation of the only credible platform of awards from which achievements in fashion, film, TV and music in Pakistan are all recognized, the Lux Style Awards.Lux is available in 5 variants now; Peach & Cream, Strawberry & Cream, Purple Lotus & Cream, Fresh Splash and Nature pure.

COMFORTFor homemakers, every task, whether its preparing a meal or washing the clothes, is an expression of love and affection for her family. Comfort fabric conditioner understands this and helps your loved ones feel cared for everyday through clothes with amazing shine and fragrance that you cannot get from detergent alone. Comfort is a fabric conditioner that cares for your clothes and gives them much more than a detergent alone.

LIPTONLipton was launched in Pakistan in 1948 and is one of the oldest brands in the country. Our vast experience in the world of tea blending in Pakistan and around the world means only two things; Quality & Reliability. Lipton plays the role of an energetic brand that aims to modify this perception and redefine the meaning of tea in peoples lives. Liptons portfolio in Pakistan consists of Lipton Yellow Label Tea, Lipton Mega Dane, Lipton Teabags, Lipton Green Tea and Lipton Flavored Tea.

CLOSE UPClose Up was the first gel toothpaste to be launched in a paste dominated market. Ever since its launch Close Up has open up new role on toothpastes. With a huge youth population that was bored stiff with the usual white paste Close Up created a buzz with its funky advertising and innovative product formulation.

CLEAR Clear spells confidence for the young Pakistanis of today. With its Women and Men range, Clear not only solves your dandruff problems but gives you the confidence to look and feel more attractive.

GLAXOSE-DGlaxose-D is a fifty year old strong brand a strong leader in the Dextrose market in Pakistan. Glaxose-D is a non-flavored energy drink that can be used by children and adults alike. It helps in maintaining an active lifestyle for sports person, active business person or is a busy housewife. It is the energy drink made from glucose, which is the simplest form of sugar, and serves as an instant source of energy. The drink is also infused with minerals such as Calcium; Phosphorus & Vitamin D Glaxose-D is an easily digestible glucose drink which is a fast and effective provider of energy.

PEPSODENTPepsodent was launch in Pakistan in December 2011 with the aim of improving the Oral hygiene in Pakistan. Dentist recommends at least twice a day brushing but the habit in Pakistan is less than once. Pepsodent has taken up the task of providing the best oral protection that helps prevent germs that causes cavity and other dental problems. Not only this, Pepsodent also invests in educating the families in small towns the importance of brushing for them and their children.Only Pepsodent makes oral care an engaging experience in the relentless pursuit of the healthiest mouths via products, practices and educates awareness on the same.

RAFHANRafhan makes the best desserts and helps consumers celebrate all their special moments in a delicious and wholesome manner. Rafhan Desserts have gained the trust of their consumers due to its superior quality ingredients and cutting edge processes.

KNORRGreat flavor is at the heart of the Knorr brand. Established as early as 1873, Knorr was created with the purpose of providing high quality dried soups. Carl Heinrich Knorr, born in 1800, created the company from knowledge acquired during his time as a wholesaler of agricultural goods. He died 2 years after the company was founded but his legacy lives on as Knorr is known today for chef men ship and great tasting food. Knorr came to Pakistan in 1992 with the launch of Knorr Chicken Cubes. In the passing years Knorr introduced multiple Savory and Meal Maker categories. Knorr launched Instant Noodles range in Pakistan in 1993. Knorr Noodles have become the brand of choice for kids over the years. Exciting new flavors, developed to suit the local taste palette, have been a major source of gain, which has continued to make food No More Boring for the kids.

LIFEBUOYLifebuoy is one of Unilever's oldest brands. Lifebuoy Royal Disinfectant Soap was launched in 1894 as an affordable new product in the UK, to support people for better personal hygiene. Soon after launch, Lifebuoy soap travelled across the world, reaching countriesincluding Pakistan, where even today it is still the market-leading brand.

FAIR & LOVELY Building on its heritage of being the worlds first skin lightening brand, Fair & Lovely now brings expert fairness to the Pakistani consumer. The New Fair & Lovely Advanced Multivitamin offers consumers benefits akin to 5 expert fairness treatments. Based on its breakthrough formulation, the new Fair & Lovely mark like a laser treatment, sun tan like a face polish treatment, dullness like a face peel treatment, dark circles like an antioxidant treatment and lightens skin color like a vitamin mask giving you flawless treatment like fairness, everyday.

WHY WE HAVE CHOOSENWe have chosen the company Unilever for our project because it is a huge and renowned organization of Pakistan. The main purpose of choosing Unilever is that we wanted to learn how the industry works and what circumstances they had to face in their good and bad times. The whole experience has taught us a lot.

PROJECT PURPOSEThe main purpose of this project is to highlight and to study the different department of Unilever. It provides a brief overview of the organization and all the ways, strategies and alternatives mainly used by Unilever.

ANALYSIS OF THE COMPANYUnilever is one of the well known companies in Pakistan and all over the world.They are famous for making a variety of products whether they are food, beauty, or daily use products. After going to the company we analyzed their environment the way they work and they things that were maintained in the company. The working environment was friendly, they treated us well too. They kept different products in the company which gave a great look in the overall environment. It was good to be there and experiencing the different things. It taught us some great techniques.

ANALYSIS OF THE DEPARTMENTUnilever has a strategy of investing in brands in an effort to maintain awareness and develop brand equity. There has been double digit growth in advertising and sales promotions expenditure. However the growth in sales has lagged the growth in advertising spend which has been twice the revenue growth, indicating that investments in brands have been unsuccessful in leveraging sales growth. in our opinion this is mainly attributed it the facts that major investments have been directed toward re-launching and re-energizing established brands like lux, surf excel and brooke bond rather than new products. Going forward we expect double digit growth in the advertising expenditure which is likely to remain 11-12% of net sales.

FACTS & FIGURES1. Unilever Pakistan has employees around 1,500 on their payroll and many thousands indirectly.

2. Unilever Pakistan has 32 products as per its website.

3. During the year ended December 31, 2011, the Company produced48,313 metric tonsofhome and personal care productsout of its annual capacity of60,446metric tons.28, 909metric tons ofbeveragesout of62,377metric tons.43 million liters ofice creamout of its annual capacity of77 millionliters.

4. Unilever Pakistan Ltd. hadrevenuesfor the fullyear 2011 of 51.9B.This was16.1% abovethe prior year's results.

5. The Company had three subsidiaries, namely Lever Chemicals (Private) Limited and Levers Associated Pakistan Trust (Private) Limited, which act as trustees of Union Pakistan Provident Fund (Unilever Provident Fund), and Sadiq (Private) Limited, which is not carrying on any business operations.

RECOMMENDATIONAppropriate strategy for Unilever is market development .Unilever should remain in the present business and should introduce present products in new geographical area. Following are necessary factors that must be present while choosing market development strategy: Unilever has its own strong distribution channel. Unilever is very successful at what it does. Untapped rural market and market of developing countries exist for Unilever to cover. Unilever is a strong MNE in Pakistan. It has abundant resources both financial and human, so it can easily expand geographically. Here we are not concerned about expansion of operating activities to new geographical area. We are particularly concerned about capturing untapped market. It is up to Unilever whether it is decided to start operating in new areas too or just introduce products by using its strong channel of distribution. Unilever is operating globally. It means that FMCG is such an industry which can be grown globally

CONCLUSIONAfter visiting Unilever we concluded that it is a great organization with proper management and diversification ideas. We also analyzed the things that were going in the organization. They had very friendly environment, punctuality and team work that is one of the reasons of their success.

APPENDIX-1

We asked some questions from Mr.Tallal about the organization, which are as followSURVEY QUESTIONAIRE

Q1: How you overcome the crisis faced at the production level?Ans: It totally depends on the Condition the Company faced & then It Plans Better Solution.

Q2: How do you people work on innovation in your product?Ans: Mainly Innovation come in the Company through Regional Technology Sector Which give different innovations with stronger ingredients.

Q3: What strategies you implement if your product doesnt work?Ans: If Any Product doesnt work the Company analyzes the Main Object of Problem 7 figure out the Problem quickly to solve with best solution.

Q4: From where do you get your raw material? With in a country or from other countries?Ans: The Company gets Raw material according to the product Requirement. Some Raw material imports from other countries & some from domestic.

Q5: How good is your co-ordination with your employees?Ans: The Company communicates with consumers through different media usage. The Annual Review cycle issues the main goal to reach that level company increase their co-ordination through feedbacks.

Q6: What do you think what could be your threats?Ans: There are many threats in market as competitors Garnier, LOreal, Stillmins & Bride etc.

Q7: How you handle complains of customers?Ans: The Companys setup of Rabat a Call centre from which the customers give their feedback which helps to reduce complains.

Q8: What is process of tracking a product?Ans: A Code of any product which helps to track the products.

Q9: Any future launch?Ans: There are different plannings in process for future products.

Q10: How to update and Share Information with your Key Suppliers and Stake holders?Maximo connects with One Person in Purchase department not directly to vendor. Maximo maintain the update of inventory, Selling Cost and price & cost of the Product.

Q11: What are the challenges faced by the MIS manager during implementation of MIS in organization?He answered that the first challenge is that the users are not as Computer literate as we would like them to be. Nobody knows how to use the Computer like we do. For this they tried to provide training to their employees.

Q12: How you motivate your employees?Very simple for motivation they have their jobs and pay .The main important driver for any motivation is the environment which they work in, by environment I mean the relation they have with their boss and co-ordinates. Then we have open door policies, we do have door but they are not closed so anyone can walk in you dont need any scheduling or appointment, its just we can in anyones room and have a discussion with them. We also believe in family environment so at times we check that what are the issues with different plants or the head office, and we try to resolve them, the transport issue, security issue and we see how to solve them because these are the main things which employee concern so if you address them timely so definitely it will motivate them. Our employees are basis to our success; hence we organized the Corporate Excellence awards to reward them for their hard work and utmost dedications.

Q-13: What are the benefits and environment you have provided?In terms of benefits, there are a lot of benefits that Unilever has provided. The most important is the career enhancement which is the most valued benefit which Unilever has provided, the job rotation, skill certification, the exposure, trainings and free hand you get to work at this company is unmatchable. The way they groom you, train you, the confidence they build in is valuable. When you create a lot of value in an employee so their marketability increases. We also do salary survey every year, so we have a basket of companies through which it is matched and we try to maintain a certain level its not medium or above the average level, its a high level of percentile with which we match. We also see what are the cost and other things and how we have to scale salary structure. Whatever the increment is for junior the same is for seniors the same equality for everyone its not different.