23-Lux Marketing Project

8/8/2019 23-Lux Marketing Project

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Lux

TITLE PAGE

PROJECT ON DISTRIBUTIONCHANNEL

PRESENTED TO:SIR AMJAD ALI

PRESENTED BY:

MUHAMMAD FAWAD ASGHAR 10146HAFIZ MUHAMMAD TANVEER 10131

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AQEEL AHMED 10147ABEER YASEEN 10125SEEMAB FATIMA 10152RABIA BASHIR 10136

Executive SummaryUnilever is a multinational consumer product manufacturing giant

operating in over hundred countries all around the globe. Unilever

Pakistan is the Pakistan chapter of Unilever, where the company holds

60.75% share whereas the Government of Peoples Republic of Pakistan

holds 39.25% share.

Unilever’s one of the most popular brand is LUX. They segments LUX.’smarket according to geographical locations. It further differentiates these

segments into Socio Economic Cluster (SEC) which takes into account the

criteria of education and profession which ultimately measures the

financial ability of consumers. The cluster is divided into five parts starting

from A to E. Unilever targets the urban and sub urban upper middle class

and middle class segment of the population, who falls under A to C of

SEC.

Tactical marketing tools, 4P’s, are extensively used by the company to

market LUX. Though LUX is produced in Pakistan, Unilever Pakistan

maintains the same standard all around the globe. The product is

available in six different fragrances under three different sizes. Since the

demand for beauty soap market is to a great extent oligopolistic,

variations in price lead to price war which can eventually break down the

company’s market share. Thus Unilever cannot provide a better price

than its competitors. But the price is affordable by most of the people.

Unilever Pakistan has outsourced its distribution channels to third party

distributors which allow them to distribute LUX in massive bulks

amounting to around ten million pieces. It undertakes the largest

promotional activities in the beauty soap industry.

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The beauty soap industry has a few major producers of which Unilever

holds market share of slightly less than 50%. Other competing brands like

Tibbet, Aromatic and Keya have started to have a strong consumer base,

but LUX.’s product features distribution and promotional activities have

created high brand loyalty for which it is still the market leader.

Unilever, with the aid of its heavy promotional activities, has been able to

penetrate the market. But the other producers in the industry are posing

a threat towards Unilever’s market share as they have moved towards the

rural masses of the population. Therefore, Unilever Pakistan should

undertake further steps such as moving towards the rural and/or poorer

segment; attract children (by making a special product for kids) and other

innovative promotional activities to retain its command in the industry.

INTRODUCTION TO UNILEVERNo matter who you are, or where in the world you are, the chances arethat our products are a familiar part of your daily routine. Every day,

around the world, people reach for Unilever products.

UNILEVER TODAY

Our brands are trusted everywhere and, by listening to the people whobuy them, we've grown into one of the world's most successful consumergoods companies. In fact, 150 million times a day, someone somewherechooses 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, marketand distribute the products that people choose to feed their families andkeep themselves and their homes clean and fresh. People's lives arechanging fast. As the way we all live and work evolves, our needs and

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tastes change too. At Unilever we aim to help people in their daily lives.So we keep developing new products, improving tried and tested brandsand promoting better, more efficient ways of working. We have a portfolioof brands that are popular across the globe - as well as regional products

and local varieties of famous-name goods. This diversity comes from twoof our key strengths: Strong roots in local markets and first-handknowledge of the local culture. World-class business expertise appliedinternationally to serve consumers everywhere. Focusing on performanceand productivity, we encourage our people to develop new ideas and putfresh approaches into practice. Hand in hand with this is a strong sense of responsibility to the communities we serve. We don't only measuresuccess in financial terms; how we achieve results is important too. Wework hard to conduct our business with integrity - respecting ouremployees, our consumers and the environment around us. Unilever isone 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 culinarycategory. Knorr is now our biggest brand, with €2.3 billion sales in over100 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 theFindus brand in Italy, Birds Eye in the UK and Iglo in other Europeancountries.We are the category leader in margarine and spreads in most Europeancountries and North America, with brands such as Becel (theNetherlands), Flora (UK) and Take Control (US). We have met consumerdemand for healthy foods by launching pro.active, a spread whichcontains ingredients that can help reduce cholesterol levels.In the branded olive oil category we are a leader, the most importantbrand being Bertolli. Appealing to consumers' taste for Mediterraneanfood, we have launched Bertolli pasta sauces and dressings.We are the world's leading ice cream producer, with brands such asAlgida and Wall's in Europe, and Ben & Jerry's in the United States.Innovations such as Magnum snack-sizes and Cornetto miniature andmulti-packs have sparked progress.We are the largest seller of packet tea in the world through our Lipton andBrooke Bond brands.

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HOME & PERSONAL CAREWe lead the home care market in much of the world, which includescleansing 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 forskin cleansing, deodorants and antiperspirants.Our global core brands in the personal care market are Axe, Dove, Lux,Pond's, Rexona and Sunsilk.

RELATED LINKSView our Introduction to Unilever presentation

FOODSFrom mouth-watering mayonnaise to scrumptious sauces, our food brandscan satisfy even the most discerning palates.

Unilever Foodsolutions

HOME CARE

Whether you want fresh, soft clothes or sparklingly clean bathrooms, ourglobal home care brands can help.

PERSONAL CAREIn need of hair care heroics? Wanting to relax with sumptuous soaps? Ourpersonal care brands have answers to all these questions and more.

ADDING VITALITY TO LIFEWe meet everyday needs for nutrition, hygiene and personal care withbrands that help people feel good, look good and get more out of life.

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OUR MISSIONVitality is at the heart of everything we do. It's in our brands, our people

and our approach to business.

OUR HISTORY Unilever's corporate mission – to add vitality to life – shows how clearlythe business understands 21st century-consumers and their lives. But thespirit of this mission forms a thread that runs throughout our history.

HELPING PEOPLE GET MORE OUTOF LIFE

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

This was long before the phrase 'Corporate Mission' had been invented,but these ideas have stayed at the heart of our business. Even if theirlanguage - and the notion of only women doing housework – has becomeoutdated.

In a history that now crosses three centuries, Unilever's success has beeninfluenced 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 clothesand themselves.

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BALANCING PROFIT WITH

RESPONSIBLE CORPORATEBEHAVIOR:

In the late 19th century the businesses that would later become Unileverwere among the most philanthropic of their time. They set up projects toimprove the lot of their workers and created products with a positivesocial impact, making hygiene and personal care commonplace andimproving nutrition through adding vitamins to foods that were alreadydaily staples.

Today, Unilever still believes that success means acting with 'the higheststandards of corporate behavior towards our employees, consumers andthe societies and world in which we live'. Over the years we've launchedor participated in an ever-growing range of initiatives to sourcesustainable supplies of raw materials, protect environments, support localcommunities and much more.

Through this timeline you'll see how our brand portfolio has evolved. Atthe beginning of the 21st century, our Path to Growth strategy focused uson global high-potential brands and our Vitality mission is taking us into a

new phase of development. More than ever, our brands are helpingpeople 'feel good, look good and get more out of life' – a sentiment closeto Lord Leverhulme's heart over a hundred years ago.

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TIMELINE

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19thcentury

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.

1900sUnilever's founding companies produced products made of oils and fats,

principally soap and margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials.

1910sTough economic conditions and the First World War make trading difficult

for everyone, so many businesses form trade associations to protect their

shared interests.

1920sWith businesses expanding fast, companies set up negotiations intending tostop others producing the same types of products. But instead they agree to

merge - and so Unilever is created.

1930sUnilever's first decade is no easy ride: it starts with the Great Depression and

ends with the Second World War. But while the business rationalisesoperations, it also continues to diversify.

1940sUnilever's operations around the world begin to fragment, but the business

continues to expand further into the foods market and increase investment in

research and development.

1950sBusiness booms as new technology and the European Economic Communitylead to rising standards of living in the West, while new markets open up in

emerging economies around the globe.

1960sAs the world economy expands, so does Unilever and it sets about developingnew products, entering new markets and running a highly ambitiousacquisition programme.

1970sHard economic conditions and high inflation make the '70s a tough time for

everyone, but things are particularly difficult in the Fast Moving Consumer

Goods (FMCG) sector as the big retailers start to flex their muscles.

1980sUnilever is now one of the world's biggest companies, but takes the decisionto focus its portfolio, and rationalise its businesses to focus on core products

and brands.

1990s The business expands into Central and Eastern Europe and further sharpens itsfocus on fewer product categories, leading to the sale or withdrawal of two-thirds of its brands.

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The 21stcentury

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.

We all want to be pampered, to look and feel great, to enjoy that momentwhen anything seems possible. And that's just what Lux offers you on adaily basis at a price you can afford.

GLAMOUR FACTOR:We all want to be pampered, to look and feel great, to enjoy that momentwhen anything seems possible. And that's just what Lux offers you on adaily basis at a price you can afford.

Lux has been winning hearts of Pakistani consumers for 50 years. Throughout this time, Lux has been closely associated with many of themost glamorous and sensual women of the age. Marilyn Monroe, DemiMoore and Catherine Zeta-Jones are some of the stars who've appeared inLux ads. In Pakistan, leading celebrities like Babra Sharif, Meera andAaminah Haq have endorsed the brand.

KEY FACTSFirst mass marketed toilet soap launched in 1924Sold in over 100 countriesMarket leader in various countries including Saudi Arabia, Brazil,India

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Lux Almond Delight comes with the deep moisturization of exotic Peach,Cream and precious Almond Oil. Lux Nature Pure has nourishing oil of Cade and cucumber extracts for a radiant and clear skin. Lux Orchid touchcomes with the delicate touch of rare orchids and precious Jojoba Oil, for a

softer and fragrant skin. Lux Energising Fruit incorporates the beautysecrets of Fruit Extracts, rich Milk Cream and Honey, for a fresh renewedfeeling.

FROM OUR RANGE

Almond delight Orchid touch Energising fruit Aqua sparkle

PERSONAL CAREIn need of hair care heroics? Wanting to relax with sumptuous soaps? Our

global personal care brands have answers to all these questions andmore.

UNILEVER R&D OPENS GLOBAL CENTRE OFEXCELLENCE FOR NEW PRODUCT

DEVELOPMENT

Vlaardingen, 4 March 2008 - Unilever R&D today opened the Centre of Excellence Structured Emulsions in Vlaardingen, the Netherlands.

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DEVELOPING NEW PRODUCTS

This global technology centre will focus on new product development formargarines, spreads, mayonnaise, salad dressings and dairy creamalternatives. The centre is a multi-site organisation, employing 225 R&Dprofessionals in Vlaardingen (NL), Dijon (FR) and Englewood Cliffs (USA). The Centre of Excellence (CoE) Structured Emulsions will contribute toUnilever growth by delivering new product innovations. Furthermore, the

CoE will contribute to the operating margin of Unilever by compensatingfor the rise in commodity costs through smarter use of ingredients andapplication of new technologies.

The new R&D centre will focus on developing innovative products thatprovide the natural goodness of oils (e.g. essential fatty acids omega-3and omega-6, vitamins), healthier choices (e.g. products with minimisedsaturated and trans fats; low-calorie options) and functional foods(products with added functional ingredients for additional health benefits).It will counter the rise in commodity costs, for example for rapeseed oil,by using alternative ingredients like citrus fibres and novel product

structuring techniques.

To deliver these innovations and cost savings, the CoE StructuredEmulsions will aim to develop world class technical capabilities in theareas of fat technology and emulsification. Furthermore, the centre willalso host Unilever's European product development centre forFoodsolutions, Unilever's Foodservice business, and the Europeanpackaging technology centre with a technology and material focus ontubs, pots and glass packaging.

Carla Hilhorst, Director of the new Centre of Excellence, stated: "With the

opening of our Centre of Excellence Structured Emulsions we areestablishing a world-class R&D capability that will lead to more winninginnovations across the globe. With R&D experts from 20 countries wehave a deep expertise and a wide perspective which will allow us todeliver taste, health and convenience for consumers around the world.

The CoE opening ended with the unveiling of the world's highestemulsifier sculpture, more than 3 meters tall and weighing 10 tons,

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designed by the R&D team together with its external partners Daniscoand Inaxi. The choice of material for the sculpture was linked to theexpertise of the Centre of Excellence Structured Emulsions: an emulsifieris a small, but crucial 'chaperone' that brings together water & oil to make

stable products: emulsions like margarine, dressings and dairy creamalternatives. This world's highest emulsifier sculpture served to symbolisethe ambition for the new R&D centre: to be the 'world champion' instructured emulsions and their applications in tasty, healthy andconvenient foods.

SAFETY & ENVIRONMENTALASSURANCE CENTRE

Safety is an essential element of a successful and sustainable business.We take our responsibility to protect our consumers, our employees andthe environment we live in very seriously.

SAFETY COMES FIRST

Our dedicated ''Safety & Environmental Assurance Centre'' plays a centralrole in providing independent assurance and support for our products andprocesses. Safety decisions are made independently of commercialconsiderations.

WIDE-RANGING EXPERTISE

The centre is based at Colworth, UK, and is responsible for carrying outthe assessment and approval of product and supply chain technologydesign, considering consumer safety, occupational safety and theenvironment. We have experts in chemistry, environmental science,mathematics, statistics, modelling, medicine, microbiology, occupational& process safety, physical hazards and toxicology.

TACKLING COMPLEX ISSUESOur multidisciplinary project teams tackle complex issues, and highlychallenging projects, working in partnership with R&D colleagues from theinitial stages of product development and scientific research to approvenew ingredients, technologies & processes, applications & uses and noveldelivery routes.

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WORLD-CLASS REPUTATION

Safety is about making decisions on what risks are acceptable and what

are not. Risk Assessment is the core process used to identify hazard,quantify exposure and thereby determine potential risk. Based on RiskAssessment, a risk management decision can be made including anycontrol measures necessary for the safe use of ingredients and processesfor new and existing Unilever products. Our team has gained a world-classreputation and plays a key role in developing international methods andapproaches in this area.

WORKING WITH OTHERS

Our scientists interact with policy makers, regulators and otherauthorities, contributing to the development of safety legislation. We alsowork with a variety of organisations, companies and trade associations,using our up to date scientific knowledge to promote and improvestandards in consumer safety, occupational safety, and the environment

The aim is to assure the safety of consumers, customers, employees andthe environment everywhere we operate.

PORT SUNLIGHT

A hundred years ago, William Lever built his first soap factory nearLiverpool in a place he called Port Sunlight. Today, Unilever R&D PortSunlight is the source of many of our most successful products for homeand personal care.

A GLOBAL CENTRE

Over 700 scientists and engineers – from various backgroundsand nationalities – work here to create innovative products for consumers

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around the world. The global brands our teams contribute to includeDove, Sunsilk, Lynx / Axe, Cif, Persil / Omo and Domestos. Each year thiswork results in over 100 patent filing and approximately 140 peer-reviewed papers and conference presentations.

IN TOUCHWe achieve much of our success by working across a network of UnileverR&D centres. Scientists at R&D Port Sunlight work daily with Unilevercolleagues from São Paolo to Shanghai. This will sometimes includetravel overseas to give our scientists the opportunity to network withcolleagues and learn more about consumers with very different lifestylesto their own.

OUR SCIENCE BASESAlthough we are focused here on home and personal care brands, PortSunlight scientists share a common science base with Unilever’s FoodsR&D and Corporate Research teams. All three R&D teams work regularlywith academic and third-party collaborators with the aim of ensuring thatUnilever scientists are connected with the very best and most up-to-datescientific thinking.

BIOLOGICAL The majority of the staff at Unilever R&D Port Sunlight have a first degreein a science subject, typically the physical or biological sciences. Thosewith skills in the biological sciences work on continuously improving ourunderstanding of skin, hair and teeth and how our products can helpinfluence their condition. They also study the interaction of our productswith bacteria found on surfaces including the mouth, underarm, scalp,kitchen worktops, and bathroom fittings.

PHYSICAL The physical sciences are applied in every part of the research anddevelopment programme. For example physical chemists use theirexpertise in colloid science to improve the cleaning efficacy look and feelof our products. Synthetic chemists have the task of making newingredients to deliver improved functionality to our products, whilst

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chemists with an engineering specialism work to make our products moreeffective and efficient.

HUMAN SCIENCES The human sciences also play a part. Psychologists, social scientists, andexperts in cognitive neuroscience form another important team -Consumer Science Insight - whose role is to investigate how a consumer's'need' or 'desire' translates into a product. What does it really mean inscientific terms to have shiny hair? When consumers say they want thickbleach – what do they really mean? If you change the packaging of adeodorant can you predict how consumers rate the product? In short, howcan we create products that do their job and enhance the consumerexperience.

MULTI-DISCIPLINEDEveryone works in multi-disciplinary projects. For example a laundryproject might have as its objective a new clothes washing liquid whichkeeps clothes looking newer for longer. The project team would combinethe expertise of synthetic chemists to prepare or source new ingredients,formulators to study the interaction of the new ingredients with the baseformulation and to test for efficacy and storage stability, and chemical

engineers to work on incorporation of the new ingredient into amanufacturing process. Alternatively a hair research project might wish tounderstand how to give consumers in South East Asia the shiny and softstraight hair they desire from a shampoo.

HOW & WHERE WE WORK Innovation is right at the heart of Unilever, and our dynamic R&Denvironment attracts top-class scientists who enjoy the best of bothworlds – being at the cutting edge of technology and seeing their work

deliver real benefits daily.

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RESTAURANT QUALITY FORCONVENIENT FOODS AT HOME

On 22 September 2008 we opened our latest global Centre of Excellencein Cisterna, Italy, by cutting a giant pasta ribbon. The centre will focus oncomposite food products such as meals, salads, snacks and bakery goods.

NEW TECHNOLOGY TREASURE TROVE FOR COOL PLEASURES

Unilever R&D opens global centre for Ice Foods in the UK & Italy .

ON THE MAP

We have research and technology centres around the world, from Chinato Brazil. Take a look at our R&D network.

PORT SUNLIGHTWhere it all began. Take a look inside our biggest R&D centre, on the sitewhere William Lever built the first factory over 100 years ago.

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UNILEVER R&D OPENS GLOBALCENTRE OF EXCELLENCE FOR NEW

PRODUCT DEVELOPMENT

Vlaardingen, 4 March 2008 - Unilever R&D today opened the Centre of Excellence Structured Emulsions in Vlaardingen, the Netherlands.

Unilever opens global Centre of Excellence for Drinks

Colworth Science Park, 14 May 2008: Unilever, the world's biggest tea

company, today opened its global R&D Centre of Excellence for Drinks inthe United Kingdom.

PEOPLE PROFILES

Some of our employees give you an insight into the opportunities in R&Din Unilever.

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OUR PEOPLEIn many respects, we think of Unilever as a community, rather than an

organisation. This community is shaped and led by its people, whooperate creatively within a framework of shared values and businessgoals.

CENTRAL TO OUR BUSINESS

Because our people are fundamental to the way we do business, they’reat the centre of everything we do. Their professional fulfilment, their

work/life balance, their ability to contribute equally as part of a diverseworkforce… these are all issues to which we give priority.

We grow as a company by growing our people. This insight is behind allour efforts to keep our people fulfilled and committed. It’s also why westay connected with – and connect together – our employees around theworld, conducting surveys and ‘pulse checks’ which then feed into thefuture direction of our business.

Unilever Pakistan launches

new LUX with Shaan andIman

06/03/2009 : Unilever Pakistan Ltd. launched their latest offering, LUXLimited Edition in a glitzy event at the Pearl Continental in Lahore at thehands of the new LUX ambassador Shaan and LUX girl Iman.

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Unilever Pakistan launchesnew LUX with Shaan and

ImanLAHORE: Unilever Pakistan Ltd. organised a glitzy event at the PearlContinental in Lahore to launch their latest offering, LUX Limited Edition,in the city on 17th February, 2009, at the hands of the new LUXambassador Shaan and LUX girl Iman. A seductive bathing bar with a boldfragrance, the new black LUX reminds one of black roses and violets.

The atrium lobby of the PC was festive with LUX banners and a very

minimalist lounge stage. Shaan, with his stylish new look, was charmingand urbane as he spoke of the thrill it gave him to be the new LUX BrandAmbassador. “LUX is a brand I have grown up with,” he said.“LUX aurPakistani film industry ka aik ghehra aur intense naata hai.Ever since Ican remember LUX beauties have been the most glamorous leadingladies of their time aur aaj mein bahut fakhr say keh sakta hoon that I ama LUX brand ambassador.”

The black soap bar is reminiscent of a bygone era of delicate, elusivescents, and of women who effortlessly commanded attention by theirmystery. The teaser to the ad campaign shows a highly polished and

suited Shaan getting ready to go to the grand premiere of the LUX StyleAwards. And he is thinking of his mystery woman and promising himself that he would encounter her tonight.

Speaking on the occasion, UPL brand manager for LUX Zainab Pasha said,"LUX has always focused on providing something unique to its consumers. The launch of LUX Limited Edition is another leap in that direction. Theblack soap is a special creation, a product that calls for attention by itsuniqueness in content, fragrance and colour."

Most of the assembled press and media wanted to know who Shaan’s

mystery woman was and before the advertisement was unveiled thelovely Iman glided down the escalator and was presented as the guestwho would attend the next LUX Style Awards with Shaan. The two stars of Khuda Kay Liye then took to the podium as Iman quizzed Shaan about hisnew status as Pakistan’s first male LUX Ambassador.

At the ceremony LUX also unveiled the new TVC that was shot by acedirector Asim Raza. Standing with Farah Mansoor, the Creative Director at

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JWT, Asim presented the ad which shows Shaan and Iman walking downthe long red carpet. The two then invited all consumers to be a part of thenext LUX Style Awards by sending in LUX Limited Edition wrappers for thelucky draw. Iman, styled by Shahzad Raza, looked every inch the stunning

diva and Shaan clad in a Giorgio Armani suit looked debonair andglamorous.

“Iman and Shaan epitomise style and grace,” said Fareshteh Aslam,External Communications Manager for Unilever as she announced that theprocess for collecting portfolios for the next LUX Style Awards had started.“LUX Style Awards are the most glamorous and fiercely contested showand may the best man, woman and creation win. Let the nail biting andthe back biting begin.”

marketing channel assustainable competitor

edge:

“Yes, I think one of Unilever competitive edge is their Marketing Channel. The channel is very well designed and well disciplined. We have aprominent competitive edge of our brand name and superior quality, butour intensive distribution network, committed, well trained teams anddedicated staffs are also our strengths.We don’t give breathing space to our competitors; we are really tough tobeat. I think our marketing channel including all intermediaries we chooseand support characters all contribute towards a competitive advantageover others.Other Key factors contributing in our competitive edge are:

We have got biggest marketing channel network with respect to resources

We have expertise of world’s best experts of this line

We have labs for testing

Our Brand image”

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PERFORMANCE OFMARKETING CHANNEL:“We monitor performances of each channel member very closely, that isdone through a disciplined process and talented staff. We follow a verystructured or a highly systematic approach of measuring performance;We have scope of 8% Commission on Total Sales (According to Target).And we distribute that to our Distribution, and Sales force according toperformances. We also distribute awards of achievements on outstandingperformances; We have policy of strong follow up”

EVALUATION OFPERFORMANCE:

“We evaluate performances on Monthly, Quarterly and Annual Basis. Firstactions are taken on monthly reports, second evaluation is on quarterlybasis, which helps us to see what is going wrong or what is going well.Our service quality department is also involved in the process and we

work on monthly reports, quarterly reports and annual evaluations tobefore setting new targets or to change the strategy. Due to Unilevercommitment towards serving the customers, Unilever is more consciouson improving their performances, so to improve the performance, itsobvious that we monitor and evaluate our performances and results morefrequently. ”

BASIC FUNCTIONSDISTRIBUTIONDEPARTMENT

“We have to perform and monitor warehousing, delivery and supply chainmanagement, payment management, recovery, and management of

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transportation matters. Department of Sales and Quality Control are mostinterconnected.”

DISTRIBUTION GOALS: Our Distribution Goals are:sturdy time to competitor through service.Customer satisfaction.Service presentable, systemizedMaximum coverageMaximum volumeMaximum growthMaximum revenue generation

responsibilities of aDistribution:

“We take care of ware houses, logistics, offloading stock, smooth flow of supply chain and feedback management. It also includes reporting andhandling the distribution process related problems, and reporting theprogress to Head Office.”

Channel Strategy

“The company has designed the channel system keeping in view with themaximum participation of its retailers. The future strategy for the channelis to ensure increased penetration in retail outlets a. The company doesnot encourage wholesaler to be involved more than to a certain extent forthe following reasons:

Not to be derived by the whole sellers

Don’t want their product to be used as” commodity”

For controlling better as the less intermediaries, the less complex wouldbe the supply chain”

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Reason to chose the currentmarketing channel:

“The current model of distribution that has been designed and followed bythe company which was specifically chosen for PAKISTANI MARKET. Thedistribution has selected very few wholesalers for supply and main focusis to cater retail out lets as much as possible as per their extensivemarketing approach. Their main whole sellers are located in main marketsand main areas of Pakistan. They also supply Lux to strong retailers. Thecompany has direct approach to “key counts” giant retailers like MACRO ,MATRO , HYPER STAR as they are not part of the distributorsresponsibility. The main reason of selecting the current marketing channel is topenetrate deep into right market in right time with best quality.”

segmentation:“We cover almost every segment of market. We don’t identify a specific

segment due to nature of our product. But Lux is specially for younggeneration for both male and femals and most specifically is requirementof every individual.”

order replacement system:“We use 100 vehicles for supplies to retail points. These vehicles areloaded from warehouses; each vehicle contains so many cartons of products. Normal Supply is on Daily Basis, and order replacement. EachVan carries almost 3000 cartons, and due to an effective distribution andsales network, we normally don’t face a situation where there is a gapbetween supply and demand.”

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Behavioral Processes:“Unilever has developed a strong trustworthy relation with not only its

customers but also with its market fraternity. The behavioral process

between the distribution system and involved intermediaries is so smoothand bonded that they hardly face any serious conflict. The communication between intermediaries is very clear and regular. They hardly face any miscommunication problem. We frequently launchincentive plans for retailers to reward them with their good performance,which is another important part of behavioral process.If targets are not achieved and any intermediary is not performingaccording to provided standards, we can punish them, we can block theirpayment in case of breach of contract, we can cancel the agreement incase of complaint. Area Distribution Managers have responsibility andAuthority to resolve the conflicts between two parties. We also engage

our top performing retailer and wholesalers into Annual Dinners andAppreciation Activities to keep them closer to Company’s core objectivesand to keep a healthy environment intact”

type of intermediaries:

“We have Distributors, Marketers, Retailers, Warehousing all involved in

our distribution system”

Pricing Strategy:Unilever is using its name for the promotional activities and pricingstrategies. We are maintaining our level of efficiency and always providethe best at best price. Unilever cares about the customers. Unilever pricesare slightly higher than its competitors but due to the strong brand imageand very effective marketing efforts we don’t face such problems with ourhigher prices, and of course quality is superior too”

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ROLE OF THIS DISTRIBUTIONSYSTEM IN

ORGANIZATIONAL GOALS:Unilever Organizational goal is to provide superior quality product to theend consumers in every targeted portion of the market. Our distributionstrategy is exactly following that idea. As we told you, we are morefocused on Retailers, which is the gateway to reach end consumer orcustomer. Our distribution system reaches every market, every retailer,and every active segment of society, where we place our products andkeep the track of those numbers. We have a very efficient product

helpline, which provides product information takes complaints, andprovides an excellent communication channel to customers”

role of your Distributionprocess in Marketing Mix:

“Our Distribution system thoroughly supports our designed MARKETINGMIX strategy. We focus on quality which is product identity, our brandimage and superior quality product allows us to keep a set of higherprices in market and yet we are doing extremely well with those prices.Our promotional and marketing campaigns are one of the best, we placeour products at right places thought our intensive distribution network.In Short our distribution system which is intensive distribution systemgoes well according to plan. We don’t compromise on our quality andprice, and we focus on customer satisfaction through well planneddistribution and marketing channel”

Distribution Strategy:“We use intensive distribution strategy and we always struggle to makebigger our product to every retailer shop in the city, and in every marketof an area.”

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key roles in designingmarketing channel

“We develop our marketing channel strategy with keeping in mindfollowing key factors

1- Cost – Revenue Comparison2- Quality of Services3- Product Availability

But there are certainly many other factors involved in designingmarketing channels. For example, We keep an close eye on what ourcompetitors as doing, and what they are going to do, We consider trendanalysis and marketing research reports. In short there are many factorsinvolved in it, from sales strategy to customer satisfaction reports; allthese processes are influencing our marketing channels all the time. Butagain, factors I mentioned above are most significant I guess”

current market Share and

competitor:“We hold about 69% of total market in this product line, P & G, Nestle are

also doing well in this product line, But we are simply top of the line.Gourmet has emerged as biggest threat recently with their lower pricesand intensive distribution. But we have cutting edge over all due to ourbrand and supreme quality. People trust Unilever.”

Marketing Mix:We use the tactical marketing tools for marketing LUX. The chaptercomprises of four sections. Section 3.1 discusses the product attributes of LUX. Section 3.2 visualizes the price of LUX according to different size.

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Section 3.3 conceptualizes the distribution channel of Unilever PakistanLtd. This section includes a table that shows the location of the company’swarehouses all around the country. Finally section 3.4 discusses thepromotional activities that the company undertakes for LUX.

Product:LUX is an internationally renowned beauty soap brand of Unilever. Thoughmanufactured in Pakistan for the local market by Unilever Pakistan Ltd, asan international brand, it maintains an international quality for theproduct. Formula given by Research and Development departments inforeign countries, LUX is produced in Pakistan from imported rawmaterials like sodium soap, glycerol and different extracts according toflavors, coming from Unilever plants situated abroad.

LUX is offered in Pakistan in six different flavors which are: LUX Energizing

Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, LUXAlmond Delight and LUX Aqua Sparkle. Taking into account theconvenience of its customers, the company manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm.

Price: Though Unilever Pakistan gives its LUX customers a lot in terms of theproduct itself, it cannot provide a better pricing. This is due to someconstraints in the beauty soap industry. Beauty soap is a product with avulnerable demand in Pakistan. A change in price has a high risk of

creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. compares Lux’s pricewith its major competitor. Company carries out research on competitors’price and brand loyalty when it feels extreme necessaity of chaging price.

The brand loyalty test is an exploratory research which is known as BrandHealth.

Place:Unilever Pakistan Ltd. has a huge distribution channel for LUX all over the

country as its sales reach more than 10 million pieces a year. Thecompany has six huge warehouses, one in each division of Pakistan,where the product goes after they are manufactured at Kalurghatfactory.shows the location of its six warehouses in Pakistan.

The company does not use its own fleet of transport for distributing itsproduct. However, it has outsourced its distribution process to various

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third party distributors, exclusively dedicated to Unilever Pakistan Ltd. These distributors then supply the product all over Pakistan to a hugenumber of retailers. Even though LUX targets the urban and sub urbanmiddle and upper middle class people they are distributing their products

all over Pakistan because of a recent increase in demand of its product toall segments of the population.

Promotion:Unilever Pakistan undertakes huge promotional activities to promote LUXwhich has topped the beauty soap industry of Pakistan. It spends almost20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotionalactivities for LUX 1

It’s certain annual promotional campaigns like LUX Channel i Superstarand LUX Channel i Annual Cinema Awards has made the product a part of the glamour world. Since the 1930s, over 400 of the world’s moststunning and sensuous women have been proudly associated with Luxadvertisements. They do not only promote LUX in Pakistan for the beautyconscious females, it also promotes the brand for males and the companyproved that, by including world famous male celebrity Shan for theiradvertising campaign.

Unilever Pakistan Ltd spends a huge amount of money for promoting LUXthrough TV commercials, newspaper advertisements and billboards.

Moreover it also undertakes small promotional campaigns at differentschools, colleges, universities and recreational parks with winners of itsZonal Beauty Contests. Till now promotional activities of LUX has alwaysbeen successful which has made it a household common name andhelped it reach almost one billion taka sale value in the year 2009 2.

Analyzing the Market for LUX

For better comprehension of Unilever Pakistan, its marketing strategy,product quality, positioning and placement, we present here acomparative analysis of its competitors. This part of the report illustratesthe market share of different companies in the beauty soap industry.

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Market Share: The beauty soap industry in Pakistan consists of only seven major

producers. Unilever Pakistan Ltd is operating in the industry with its worldfamous brand LUX. Out of these giant companies Unilever Pakistan Ltd isthe market leader with a share of around 69%.

shows the market share of all the companies in the sector. UnileverPakistan Ltd is leading the market. The other competitors are verycompetitive among themselves but they cannot put a intense competitionwith Unilever Pakistan Ltd, as they have market share much less thanUnilever Pakistan Ltd.

overleaf shows a detailed description of the major competitors in the

market, their operating brand, estimated annual sales revenue andmarket share.

Other companies in the industry are not as big as Unilever Pakistan Ltdbut they are posing threat to the company by a tendency of a gradualincrease in their market share. Kohinoor Chemicals which is operatingwith the brand name Tibet is an extremely famous brand to the ruralsegment of the population and possess a significant share in thatsegment which is the largest population group in Pakistan. Moreover KeyaCosmetics Ltd operating with the brand name Keya and Marks & Allys Ltdoperating with the brand name Aromatic are also uprising brands to boththe rural and sub urban segment of the population.

Moreover a recent takeover of Aromatic by multinational consumerproduct giant MARICO who operates with famous brands in otherindustries like Parachute Coconut Oil is posing to be a threat to UnileverPakistan’s market share.

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Market Segments 1.

Hierarchy of marketing andsales department

Marketing Manager is an employee who is responsible for planningand controlling its marketing activities and budgets .Marketing managertake cares the promotional strategies of the products. Manager try to useinnovative ideas for the improvement of product in market.

UrbanRich

Urban and Sub Urban Upper Middle and Middle Class

Rural Poor

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Finance manager The field of finance covers the economics of thecontingent claims. Financial economists study the valuation of theseclaims, the markets in which they are traded, and their use by individuals,corporations, and the society at large. Finance manager and marketing

manager are related with each otherto meet their marketing targets. It is important because alone marketingmanager can not promote any marketing strategy without any budget.

Market Distribution and

Channels Strategy:Lux supply chain and distribution makes sure that products areaccessible, no matter where consumers are in Pakistan. Unilever aims toput together processes from the farm to markets, and make sure productsare distributed to the consumers at the correct time, the right cost and inthe accurate quantities. In the first quarter of 2006, Unilever proved it bydelivering an amazing 136 million kg of Unilever products in Pakistan. Themission of Unilever Supply Chain is to:1. Optimize and consolidate resources and processes for a low-cost butefficient2. Develop and manage simplified and effective supply network toachieve a high level of service3. Create a continuous improvement culture driven by performancemeasures and reward4. Focus on retailers, because retailers are the gateway to reach thecustomers/consumers.5. Unilever do not focuses on Wholesaler based strategy. To accomplish their tasks, the company chooses both marketing channelsmethod that is conventional and vertical. In conventional channel,Unilever Pure Life is distributed among the wholesalers of Pakistan and

from wholesalers; the products are distributed to retailers and fromretailers, the products reaches to ultimate consumers.

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Conclusion

The beauty soap industry of Pakistan consists of a few producers in theindustry. The demand for this product is very much vulnerable in terms of pricing. Unilever Pakistan is providing LUX. at a price which is affordableto most of the people in the country. Beauty soap is an uprising product inPakistan as a greater portion of the population, both male and female, arenow getting more beauty conscious. As a multinational company Unilever

Pakistan with heavy promotional activities, has been able to penetrate themarket.

With six different fragrances, three different sizes, international standardand high quality design, as a product, LUX has been highly successfulover the years. Its distribution process is highly efficient. Its promotionalactivities, like the beauty contest has been a milestone in attracting ahuge number of customers. Overall with its marketing activities LUX hasbeen a successful brand. The only place where rival companies are progressing is in givingcustomers redemption offers. Research revealed that Pakistani customers

are highly attracted to this sort of offers. These offers are not sustainablein the long run but still it takes away a considerable part of LUX’s sale inthe short run.

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Recommendation

In this the team would suggest some recommendations to UnileverPakistan Ltd. to adopt more successful operation in Pakistan. Since a huge

portion of the rural poor people is demanding LUX in recent days, UnileverPakistan Ltd should expand their target market also towards the ruralpeople. They should also conduct different promotional activities in ruralfairs and socially responsible promotional activities to attract ruralconsumers and social awareness .Because Lux has different skin typesoap so now if they provide different types of beauty soaps for male andfemale soapunder the same brand name i.e. LUX it might increase theirsales. Lastly, as Pakistani culture children have a huge say in shopping sothey should also promote the product to children like their another brand“Dove”. These are the recommendations suggested by teem members toUnilever Pakistan Ltd. to adopt for a more successful operation in Pakistan

with large market share.

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23-Lux Marketing Project

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