Management Report Unilever Pk Ltd

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Unilever Pakistan Ltd 2011 BBA1/G/Management Report/Spring2011 Page 1 Introduction to Unilever 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. 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 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. Unilever today 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.

Transcript of Management Report Unilever Pk Ltd

Page 1: Management Report Unilever Pk Ltd

Unilever Pakistan Ltd 2011

BBA1/G/Management Report/Spring2011 Page 1

Introduction to Unilever 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.

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 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.

Unilever today 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.

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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, home care and personal care.

Foods The acquisition of Bestfoods 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 pro.active, 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.

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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 Sunsilk.

Our vision We help people around the world meet everyday needs for nutrition, hygiene and wellbeing, with brands that help people look good, feel good and get more out of life.

● We work to create a 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 everyday actions that can add up to a big

difference for the world. ● We will develop new ways of doing business that will allow us to double the size

of our company while reducing our environmental impact.

Our mission Unilever’s mission is to add Vitality to life. We meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good and get more out of life.

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Products and Services: Food brands Unilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice.

Badami "Badami" is Wall’s response

to the traditional kulfi.

Blue Band Blue Band is essential for a family’s healthy growth and development and to enjoy a lifestyle full of vitality.

Brooke Bond A1 Brook Bond A1 is the strong cup of tea that gives the strength to face challenges and stand up for what you believe in.

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

Cornetto The Cornetto experience consists of a delicious, crispy-baked wafer, coated inside fro m top to bottom with a chocolate layer, rich ice cream inside, topped off with sauce and chocolate chips.

Energile Bringing Vitality to your life.

Knorr Knorr believes in adding magic to every day meal moments.

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Lipton Lipton is Tea – Tea is Lipton.

Magnum Celebrate pleasure with the tempting Magnum range – an irresistible combination of thick, cracking chocolate with creamy vanilla ice cream.

Pearl Dust Lipton Pearl Dust is the Sindhi soul that imbues intimacy and warmth in a couple’s relationship

Rafhan From the highly nutritious and healthy Corn Oil to the lip smacking Desserts – Rafhan today offers a complete meal package with the cherry on top!

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Unilever Foodsolutions Your partners for success.

Wall's Desserts At Wall’s, we like to think we have one of the best jobs in the whole world; making delicious frozen dessert treats for the whole family.

Wall's Heartbrand The Wall’s Heart brand stands for a good honest scoop of pleasure.

Wall's Kids' Range You only have to take a bite fro m one of the ice creams in the much-loved Wall’s kids' range to experience the true magic of ice cream.

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NEW LAUNCH PRODUCT:

Wall’s Fruttare is a new launch product by Unilever

Home care brands In many parts of the world we lead the home care market, with brands such as Omo, Surf, Comfort and Cif. It's more than just hygiene – with homes and clothes that are clean and cared for, we help you get more out of life.

Comfort Comfort was launched in Pakistan in July 2007 and is available in 3 variants: Comfort Floral Pink, Comfort Classic Blue and Comfort Pure White.

Rin Consumer insight shows that one of the leading drivers that indicate a good wash is the level of whiteness and brightness that clothes have after the use of a detergent powder. Rin is formulated to offer whiteness and bring back life in your everyday clothes.

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Surf Excel Remember when you were a child? How you were free to explore, returning home covered in dirt and other stains that you wore like the badges of an intrepid discoverer?

Personal care brands Our personal care brands, including Dove, Lifebuoy, Lux, Pond's, Rexona and Sunsilk, are recognised and respected around the world. They help consumers to look good and feel good – and in turn get more out of life.

Clear Clear spells confidence for the young Pakistanis of today.

Close Up Our mouths are our gateway to life. We use them to eat, drink, talk, laugh, smile and what not!

Fair & Lovely Asia’s leading fairness brand.

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Lifebuoy shampoo Providing healthy hair to all Pakistani consumers.

Lifebuoy soap Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions.

Lux Lux brings out the star in you!

Pond's Making a real difference to women's skin and the way they live their lives.

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Rexona With Rexona you know your deodorant won’t let you down.

Sunsilk Sunsilk provides real solutions to women's everyday hair needs everywhere.

Vaseline To help you enjoy great, healthy skin everyday.

SWOT ANALYSIS: Strengths:

Strong company image Strong brand portfolio Success of the slogan Quantity and variety Effective and attractive packaging High quality man power Solid base of the company

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Innovative aspects Corporate behaviour Health & personal care products Help people getting more out of life

Weaknesses: High prices of product Substitutes of product Policy of spending for the social responsibility Lack of control in the market Dual leadership Decrease in revenues Reduced spending for research & developments

Opportunities: Changing life style of people New markets Increase the volume of products Focus on R&D Low income consumers Help in improving people diet & daily lives

Threats: Competitors (P&G) Political effects Legislative effects Environmental effect Economic crises Obstacle faced Change in lifestyle of people

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Chance for price war Increase in production & labour cost

Competitors: Procter & Gamble (P&G) P&G commenced operations in Pakistan in 1991. The Procter & Gamble Company (P&G) is a giant in the area of consumer goods. Among its products, which fall into the main categories of fabric care, home care, beauty care, baby care, family care, health care, snacks, and beverages P&G is a direct and the biggest competitor with Unilever as P&G is the first largest FMCG company and Unilever is the second largest FMCG company in Pakistan and has been using price wars, as well as aggressive advertising campaigns, to whittle away at Unilever's market share. P&G offers variety of household and personal products in Pakistan, more than Unilever Pak Ltd. The game in which Unilever and P&G are playing will now be explored in greater detail. Neither player has knowledge of the other's actions, as both moves simultaneously. Furthermore, each company has a strategy of either pricing competitively (i.e., high prices) or engaging in a price war (i.e., low prices). P&G continues to price their products at the low price while Unilever prices competitively. Unilever would prefer to collude with P&G - in that manner, both players would charge the high price. Some examples are Pantene VS Sunsilk or Ariel VS Surf Excel, Lifebuoy VS Safeguards.

NESTLE PAKISTAN LTD (NPL) Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Nestle Pakistan Limited (NPL), formerly known as Nestle Milkpak Limited, is a subsidiary of Nestle SA. - a company of Swiss origin headquartered in Vevey, Switzerland. It is listed on the Karachi and Lahore stock exchanges. Its principal activities include manufacturing, processing and selling food products and ancillary equipment. The food products include dairy, confectionery, infant nutrition and culinary products, coffee, beverage and drinking water. The major brands include Milkpak UHT, Everyday, Lactogen, Neslac, Cerelac, Nestle Pure Life, Nescafe, Maggi and Kitkat Nestle Pakistan

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is a member of the growing Fast Moving Consumer Goods Market in Pakistan and it has several competitors. Nestle Pakistan faces the biggest competition from Unilever Pakistan, which is involved in marketing various same products, which Nestle Pakistan is producing and marketing. Some examples include Maggi VS Knorr, and many beverages and food items.

Organization Chart/Organogram:

CHAIRMAN

VP FinanceVP Customer Development

VP Supply Chain

HR DirectorFoods

DirectorMarketing Director

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Organization Structure/Departments: The HR dept is divided into five main categories that is Leadership development, Service Delivery, Employee relations, Personal Servicing Dept (PSD), HR Business Partners (HRBPs).

The category of HRBPs is a separate department itself, which is divided into Finance, Legal & IT, Customer Development, HR of HRBPs, Supply Chain & Brands.

Then comes the Marketing Deparment, where there are brands includes laundry, skin care, hair care, detergents, soaps, ponds, lux and etc, these are the beauty products which are included in the Marketing Dept.

Human Resources

Leadership Development

Service Delivery

Employee Relations

Personal Servicing Dept

HR Business Partners

Finance, Legal & IT

Customer Development

Human Resources

Supply Chain

Brands

Marketing Department

Laundary Detergents SoapsSkin Care & Hair

Care ProductsBeauty Products

Brands

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Supply chain department is divided into two main categories that is Demand Planning and Forecasting.

Basic department that is called BSD, is divided into a separate Legal dept, and a separate IT dept.

Personal Servicing Department that is (PSD) includes travel desk, car booking and guest house facilities for employees. The guest houses for employees are located in Karachi and Lahore.

The typical Finance Dept is divided into Corporate finance and treasuries.

Supply Chain

Demand Planning

Forecasting

Basic Department

Legal IT

Personal Servicing Dept

Travel Desk (e.g car booking)

Guest house facilities for employees

Finance Department

Corporate Finance

Treasuries

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The Food Director’s department includes Beverages, Savory and Spreads for eg. Knorr Meal Maker

UNILEVER’S FOOD SOLUTIONS

Unilever’s Food Solution is a separate business entity. Their primary objectives are to provide options to restaurants and hotels to make their food fatten and to improve their taste of food. It is one of the world's leading global foodservice businesses. They work with customers including caterers, restaurateurs and major hotel and fast-food chains to create food solutions that help grow their business

The Best Solution Provider

Their solutions vary as widely as our customers - products that add the right seasoning, flavour or texture, pre-prepared ingredients that save time in a busy kitchen and new ways of serving food on a large scale at consistent quality are just some examples.

We focus on understanding our customers, and designing solutions specifically to meet your needs, using our expertise in taste, chefmanship, food technology and service and the right choice of Unilever Foodsolutions products and brands. Some of the Unilever’s food solutions products in Pakistan are Soysauce, Batter Mix, Burger Mayonnaise, Chicken Powder, Chilli Garlic Sauce, Chocolate N Strawberry Toppings, Custard Vannila, Demi Garlic Sauce, Jelly Strawberry, Real Mayonnaise, Tomato Ketchup and Tomato Puree.

Food Department

Beverages Savoury Spreads

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Compensation & Benefits for Employees: Cash is not enough today to recruit and retain top talent for the business. Providing an attractive benefits plan is just as important.

Unilever offers Monetary rewards include salary, bonus, commissions, medical and health benefits, holidays, and retirement benefits.

Among the non-monetary rewards offered by Unilever are meaningful and challenging works, recognition and career advancement, safe and healthy working environment, and fair treatment.

Keep the workforce motivated Gym for employees On-sight medical office where there is a company doctor A Cafeteria Relaxing zone Pie in the sky Couches, where the employees can sit and relax Agile working spaces with proper desks arrangements flexible working schedules elder care retirement programs moving expenses insurance (health, dental, eye) subsidized housing paid leave (sick/holiday/personal days) subsidized utilities tickets to events (ball games, concerts) magazine subscriptions

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boots and clothing laundry service company parties

use of farm trucks, machinery farm produce/foods/meals cellular phones/pagers child care use of farm pastures and gardens Invest very highly in employees’ training & development for employees They have a base pay Benefits & allowances for employees

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Interesting Facts/Pictures:

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New product launch in 2011:

All of the GROUP MEMBERS with Unilever’s HR Manager:

Start from left : Rabi Ghayass, Sarah Zubair, Nigah-e-Hasnain, Sarah Karamutallah (Unilever’s HR Manager), Salman Afzal, Muhammad Faisal

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Visiting card of HR Manager:

Thank you