Final Project Report

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Applied Marketing Management

Project Report

Company Name

Unilever PakistanSubmitted To

Sir Tahir Mumtaz Submitted By

Bilal Hussain(034)

Rameez Tariq(130)

M. Adnan Fraz(080)

Tashfeen Ahmed(175)

Muhammad Naeem(097)

Muhammad Amir Alvi(082)

Dated:04 January,2010

COMSATS INSTITUTE OF INFORMATION TECNALOGY, ISLAMABAD

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Table of Contents

i. Executive Summary 3

ii. Introduction of company 4

iii. Introduction of Lipton Tea 6

iv. Introduction of Supreme Tea 8

v. Annual report of unilever 10

vi. Analysis of annul report with competitor 11

vii. Currently following Strategies 12

viii. New plan for Unilever Pakistan 18

ix. Conclusion 19

x. Suggestions and Recommendations 20

xi. References 21

xii. Appendixes 22


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Executive Summary

Unilever Pakistan’s two food products are selected for project which are:

1- Lipton Yellow Label Tea2- Brooke Bond Supreme Tea

There is brief introduction of organization along with brief description of selected products. Some figures are picked of from annual report of the company to show its financial position.

Discussion is made with reference to above selected products of Unilever Pakistan and discussion includes following:

1- Market strategies for both products

2- Product strategies for both products

3- Price strategies for both products

4- Distribution strategies for both products

5- Promotional strategies for both products

6- Advertising strategies for both products

7- Personal selling strategies for both products

Than a new plan is designed to make improvements in their current strategies regarding one of the above selected products.


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Introduction

In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap – his revolutionary new product that helped popularise 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'. In a history that now crosses three centuries, Unilever's success has been influenced by the major events of the day – economic boom, depression, world wars, changing consumer lifestyles and advances in technology. And throughout we've created products that help people get more out of life – cutting the time spent on household chores, improving nutrition, enabling people to enjoy food and take care of their homes, their clothes and themselves.Today, Unilever still believes that success means acting with 'the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which we live'. Over the years we've launched or participated in an ever-growing range of initiatives to source sustainable supplies of raw materials, protect environments, support local communities and much more. Through this timeline you'll see how our brand portfolio has evolved. At the beginning of the 21st century, our Path to Growth strategy focused us on global high-potential brands and our Vitality mission is taking us into a new phase of development. More than ever, our brands are helping people 'feel good, look good and get more out of life' – a sentiment close to Lord Leverhulme's heart over a hundred years ago.19th century:Although Unilever wasn't formed until 1930, the companies that joined forces to create the business we know today were already well established before the start of the 20th century.


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21th century: The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st century-consumers with its Vitality mission.

Lever Brothers Pakistan Limited was established inPakistan in 1948. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory. Unilever Pakistan is the largest 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. The Unilever's Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's.


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Lipton TeaLipton was created at the end of the 19th century by Sir Thomas

Lipton in Glasgow, Scotland. His enterprise soon flourished and he established a

chain of grocers, first across Glasgow, the rest of Scotland, until finally he had

stores throughout Britain.

Under the slogan "direct from the tea gardens to the tea pot", this entrepreneurial

businessman wanted to make tea a popular and approachable drink for everyone –

with a high quality but reasonably priced product.

In 1929, the Lipton grocery retail business was one of the companies that merged

with Home and Colonial Stores to form a food group with over 3,000 stores. The

group traded as Home and Colonial Stores until 1961 when it took the name of

Allied Stores.

Lipton's became a supermarket chain focused on small towns, before Allied's 1982

acquisition by Argyll Group: the supermarket business was rebranded as Presto

during the 1980s.

Meanwhile, the Lipton tea business was acquired by consumer goods

company Unilever in a number of separate transactions, starting with the purchase

of the US and Canadian Lipton business in 1938 and completed in 1972 when

Unilever bought the remainder of the global Lipton business.

In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton

Partnership, for the marketing of ready to drink (bottled and canned) teas in North


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America. this was followed by a second joint venture, Pepsi-Lipton International

(PLI) in 2003, covering many non-US markets. PLI was expanded in September

2007 to include a number of large European markets. PepsiCo and Unilever each

control 50% of the shares of these joint ventures.

Due to the 2008 Chinese milk scandal, food giant Unilever started recalling its Lipton milk tea powder in both Hong Kong and Macau on 30 September 2008. The tea powder which used Chinese milk powder as its raw ingredient was recalled after the company's internal checks found traces of melamine in the powder.

Lipton's main pillar brands are Lipton Yellow Label and Lipton Iced Tea. Other

product lines exist as well, like the Lipton pyramid range in Europe and North

America, and Lipton Milk Tea in East Asia. In 2008 the brand launched Lipton

Linea in Western Europe, a green tea variety with a higher level of catechins,

which the company claims can help one lose weight.


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Supreme TeaBrooke Bond Supreme is part of life for the Pakistani consumer, bringing families closer together with its rich taste and traditions

Togetherness – Pakistani StyleTea drinking is a social occasion in the context of Pakistani culture, traditionally enjoyed with family and friends. It is the universal panacea which relaxes and refreshes at the same time.

The success of Brooke Bond Supreme is based on this very insight, since tea is a part of the social fabric of Pakistanis. Brooke Bond Supreme was launched in Pakistan in 1984.


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Outstanding Blend QualityThe brand was extremely successful from its very inception due to its outstanding blend quality. Since then Brooke Bond Supreme has never looked back and today, is the largest selling tea brand in Pakistan. On average, 30 million cups of Supreme are consumed daily by people from all walks of life.

There are many different types of tea in the world, including black, green, oolong, white and yellow tea. In Pakistan, mainly black and green tea is consumed.

Unilever is the world’s leading tea leaf company (3 times the size of its nearest competitor).

Supreme is Pakistan’s largest brand of tea, with over 30 million cups consumed daily and is made primarily from the world’s finest Kenyan teas.

Supreme’s strong, rich taste and colour is ideally suited to the Pakistani palate, which is why it is Pakistan’s favourite cup of tea.


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Excerpts from Annual Report:


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Discussion about Financial Position of the Company as Compared to the Competitors

Unilever Company

Net profit in 2008 Euro 5285 millions$ 8323 million

Colgate Company

Net profit in 2008 $1957.2Net profit Unilever Colgate

2008 $8323 million $1957.2million


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Lipton Tea Strategies Being Followed Currently

Market Strategies for Lipton:

Its target market includes all age groups except children. They are operating in more than 110 countries therefore the target market is a global village that consists of people with different cultures, habits & food. But as history tells that tea has been traditional drink of all cultures therefore the tea itself creates its own place in the minds of target market. In Pakistan they focus more on urban areas (offices, hotels, restaurants, café, and banks) where people prefer light tea. It captures 85 % share in this area.

Market Scope Strategy:

Lipton using multiple product strategy. Because it have several types of products

like Lipton yellow lable tea, Lipton ice tea, and Lipton green tea.

Market Geographic Strategy:

They are using International Market Strategy to achieve growth objective.

Market Commitment Strategy:

They are focusing on strong commitment strategy to operate in market optimally by realizing economies of scale.


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Price StrategyUnilever is charging comparatively high prices for Lipton Yellow Label tea because of its well built reputation and quality product. They have major share in the market and they are at top although they are facing competition but due to their name in market they are earning higher profits.

Price Analysis

Packages Price R.sTea bags 150 Sachets 166

Tea bags 100 Sachets 112

Tea bags 50 Sachets 60

Flavored 10 Sachets 56

Yellow label 200 gm 60

Yellow label 500 gm 116

Distribution Strategies

They have distribution offices in different cities from where product is distributed to whole sellers. They have divided areas into regions and then made distribution channels according to the demand of different regions and in this way their distribution network is working successfully allover the Pakistan. Following is the detail of distribution channel.

Distribution Channels • Head quarter in Karachi• It has 650 distribution offices all over Pakistan. • 3 manufacturing Units in Khi, Khaniwal & Raheem Yaar Khan.

• 7 distribution channels in Lahore alone.• 25 outlets in various places of Lahore.


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• .

Promotion Strategies

They are promoting there product by using different sources like:• Caps• Cups• Basant festival• Vans• Printed Helmet• Discounts• Gifts

So in this way they are promoting there product.


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Advertising Strategies


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Various advertisement means are used by company to advertise their product and they are given below:

• Print Media• TV Satellite• Billboards• Banners

They are using news papers for advertisements along with television other s are billboards and banners. So these are means of advertisement which are used by company to advertise their product.

Product Strategy

The company has positioned its product in the minds of the consumer as:


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• Health caring.• Adventurous. • Alert.• Active.• Young.• Vibrant

The company also made changes in the design and packing of its product to attract customers and to retain existing customers.

Personal Selling Strategy

The company is trying to retain its customer along with getting new customers so they are also engage in the activity of personal selling. Many times there sale representatives are selling the product in different bazaars and hotels etc in order to analyze market situations and people’s behaviors regarding their product.

New plan for Lipton Tea

Market Strategy

Lipton is currently using total market strategy. Their tea bags and tea packs are available in every market. But there is market for ice tea in some parts of country


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where it is not available. Ice tea should adopt multi market strategy to cover those areas where its demand.

Pricing Strategy

Lipton is charging high prices while their competitors low prices. There is market segment that is price conscious so Lipton should have stable prices.

Promotion Strategy

They can have a scheme of lucky draw that will increase sales and retention of the customer. They should go institutes and give them samples. They can offer discount that purchase bulk quantity like hotels.

Advertising Strategy

They can give electronic billboards to retailers that will motivate them and it is also source of advertising, budget for this purpose should be increase

Conclusion:

Lipton is one of the strongest world tea brands. Lipton strategies are working very well to capture market share. Lipton current strategy are no doubt working very well but slight changes can make Lipton Pakistan best tea brand.


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Suggestion and Recommendations:

Lipton should focus more on promotional strategies to give more value to its brand in Pakistan.

Lipton should also focus on price strategy to capture the lower segments of the market.


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Personal selling should also increase to make good customer relation.

References:www.unilever.com

www.lipton.com.pk

www.wikipedia.com/unilever

www.answershare.com


http://www.answershare.com/

http://www.wikipedia.com/unilever

http://www.lipton.com.pk/

http://www.unilever.com/

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Marketing Management By Philip Kotler

Mr. Amir Nadeem (Ex-Assistant Marketing Manager of Unilever Pakistan)

Appendices:

Company profile

Annual Reports


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Final Project Report

Documents

Transcript of Final Project Report