Final report on Unilever

By Abdul ahadBadar MunirM.AsifHira Fatimah

History• Lever brothers is founded by

WILLIAM HESKETH LEVER in 1890

• Key player in food & household product industry

• Historically grew through acquisitions

LEVER BROTHERS, THE OLD NAME OF UNILEVER CHANGED INTO UNILEVER AFTER THE MERGER OF LEVER BROTHERS & MARGARINE UNIE IN 1930

History contd.

UNILEVER IS A MULTI NATIONAL COMPANY

IT IS ONE OF THE LARGEST CONSUMER GOODS COMPANIES IN THE WORLD

ITS BRANDS ARE ON SALE IN 151 COUNTRIES

History contd.

Unilever (Pakistan) Limited Formerly known as Lever Brothers (Pakistan)Limited is by far the largest and most experienced fast moving consumer goods (FMCG) organization in Pakistan

The major tea brands are Brooke Bond Supreme, Lipton Yellow Label, Pearl Dust and A-1 Karak Chai (formerly A-1 Kenya mixture chai). Unilever has a dominant 35% market share in tea industry and is the leading player in the packaged tea market

,company owns two of the most widely recognized brands 'Lipton Yellow Label' and 'Brooke Bond Supreme'.

Unilever StaffTODAY UNILEVER EMPLOYEES 179,000 PEOPLE IN 150 COUNTRIES WORLDWIDE

TODAY UNILEVER EMPLOYEES IN PAKISTAN ARE 1677

Mission statement of Unilever is “ Unilever's mission is to add Vitality to life”

Over 400 products but focuses mostly on 14 products

Unilever CEO and board of directors

PAUL POLMAN”CEO OF UNILEVER (FROM OCT. 08)

CEO UNILEVER PAKISTAN MR.EHSAN A.MALIK

CEO IN PAKISTAN

Board of directors

Unilever brand umbrella

BCG MATRIX

STARS PRODUCTS OF ULP

High growth rate & high market share• Lux

• Sunsilk

• Wall’s

• Fair & lovely

• Rafhan

• Energile

Cash Cows Low growth rate & high market share• Surf excel• Ponds• Lipton• Close up• Blue band• Lifebuoy soap• Rexona• Knorr

DogsLow growth rate & low market share

•Wheel•Supreme tea•Lifebuoy shampoo

Question Mark

High growth rate & low market share

•Clear shampoo•Rin•Comfort

Discovery of Tea• In 2727 B.C Chinese Emperor Shen-Nung was boiling

drinking water when a few leaves of a wild tea tree blew into the royal bowl. He discovered that the leaves imparted a delightful flavor to his water; and so it became his favored drink.

• It is probable that tea was first cultivated in China, though it is possible that people in Thailand and Burma have used it for as long as the Chinese have.

Tea in Pakistan• Tea is the beverage made when the processed leaves

Native to Southeast Asia, the tea plant, Camellia sinensis, is a small

•  In Pakistan, tea is only blended and packed, but not produced. Three basic categories of tea are marketed in Pakistan which are:-Mixture-Danedar-Chura Danedar is also known as leaf tea while Chura is known as dust tea. There are around five hundred flavors available in tea. The rural areas of Sindh are considered to be heavy consumers of dust tea. Punjab has a high consumption of leaf tea.

Contd.• It is estimated that Pakistanis consume over 130 million kg

of tea worth over 4 billion rupees every year.• There are around five hundred flavors available in tea.• It's leaves have the chemicals, caffeine and tannin growing

at an annual rate of 6%.Tea is an aromatic stimulant, containing various polyphonies, essential oils and caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant.

• The tea industry of Pakistan constitutes the target market of nearly half of the population and yearly consumption is 130,000 tons

Contd.• upper middle class in volume of

1,950,000,middle class in volume of 5,200,000, lower middle class in volume of3,900,000, lower class 1,300,000, calculated in percentage as 15%, 40%, 30%,and 10% respectively. The preference of buyers shows the concern in quality, aroma, strong newsstands the nature of tea type.

• Pakistan is ranked as the third largest importer of tea in the world.

• In 2003, as much as 109,000 tones of tea were consumed in Pakistan.

Lipton

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

Thomas Lipton• . Over a hundreds years on, Lipton now possesses

thousands of acres of quality tea gardens in East Africa• 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 America

Sir Thomas Lipton, founder of Lipton Tea.

Lipton Contd.• Under the slogan~ DIRECT FROM THE TEA GARDEN TO

THE TEA POT, he made tea a popular and approachable drink for everyone high quality but reasonable priced

• The Lipton tea are his heritage and they are more popular than ever.

• LIPTON TEA is now WORLD LEADER and present in more than 150 countries

• Lipton world of tea blending in Pakistan and around the world means only two things;

Quality & Reliability.

Lipton Tea Mission

• “Our purpose in Lipton is to meets the every day needs of people everywhere to anticipate the aspiration of our consumers and customers to respond creatively and competitively with products which raise the quality of life”

Lipton Tea Objective• The aim is to provide quality tea that is safe for the health

and energizing for the mind and body with an unforgettable flavor.

• Lipton has to retain its position as a market leader against all its competitors especially TAPAL who is its challenger

• It has to interact directly with the consumers in order to be aware of the requirements and expectations of its consumers

• It has to maintain its brand

name and loyalty.

Lipton products

Lipton products Contd.

Target Market of Lipton

• Commercially they target the urban areas of Pakistan who come in the category of average middle class or above.

• Lipton’s target market involves specifically females in Pakistan.

POSITIONING

• Initially the single idea behind Lipton is “Light premium priced tea with best quality ”For global citizen.

• Later, they re-positioned itself specifically addressed local customers by old melody

Chai chahye. Kaun sy janab Lipton he to hay hmm lajawab

• Then they positioned its tea. The tea which

“Clear The Mind”

Re- Positioning After that in 2009, new campaigns was launched

which communicated that;

It contains thiamine which sharpens the mind,

so their message then was

‘SIP OF INSPIRATION’.

Now the brand has transitioned towards a simpler message

‘DRINK POSITIVE’

The idea is to communicate what a sip of Lipton can do, which is ‘bring a positive outlook in you and u will live healthy life’.

4P’s of Marketing

Product Lipton Yellow Label has a brand image in the mind

of consumer as hand picked close to the bud for best quality tea and finest taste. Lipton is the market leader in Danne Dar category of tea. They believe that quality is a way of life to us.

PRICE

Lipton Yellow label never compromised on quality so they

adopted value based pricing.• 100gm : Rs 65

• 200gm : Rs 125• 500gm : Rs 280• 1000gm: Rs550

Placement

• Lipton Yellow label has distribution network across Pakistan.

• Its popularity in Pakistan make it No1 Brand in country.

• It is available at more than 180000 outlets in Pakistan

• Lipton has its Head quarter in Karachi and 650 distribution offices all over the Pakistan

Promotional Tools• The Lipton does it promotion in following ways:• Advertisement• Personnel selling• Sales Promotions• Internet Marketing• Publicity• Co branding

S W O T

WEAKNESSSTRENGTHS OPPORTUNITIES THREATS

The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations

•Internal analysis •External analysis•S~O Positive

•W~T Negative

Lipton tea

STRENGTHS•Already a market leader and a well known and reputed brand.

•Extensive knowledge of local culture and tastes.

•Wider product range with technological.

•Strong company image.

•Strong brand portfolio.

•Success of the slogan.

•Quantity and variety.

•Effective and attractive packaging.

•High quality man power.

•Highly profitable non credit sales.

•Strong Financial Position.

•Highly innovative.

WEAKNESSESHigh prices of products.

Substitute` s products.

Policy of spending for the social responsibility.

Distribution relatively weaker in areas other than Sindh (IN PAKISTAN)

Highly dependent on Lipton` s equity.

Having too many brand extensions can dilute and confuse consumer perception and give fresh and new competitors to seize market share.

Lipton teaOPPORTUNITIES

Alliance with Pepsi to access massive distribution network.

Presence of big, well known partners drives demand further.

Expansion in other beverage markets.

Research and development.

Expansion in other areas of country (PAKISTAN).

Declining markets for other beverages such as soft drinks.

Greater awareness of health benefits of tea.

Rising literacy.

High rate of population growth.

THREATS•Overcrowded and small market with about 200 other brands which might cause significant demand reduction.•Lipton `s profit margin is exposed to rupee devaluation •High inflation with in country can negatively impact the new brands.

Marketing strategiesLipton is currently using

total market strategy.

By adopting reduce price strategy we can make more and permanent customers.

We have to acquire new technology

for production to meets the needs of customers

Sales promotions like prizes, lucky draw schemes introduced to attract more customers.

We celebrates customer satisfaction day on regular basis and we know about the feedback of the customers regarding the products and image of the company.

Distribution Channel

Distribution channel of Lipton is

SALES PROMOTION

• Lipton, the world’s leading tea brand, launched three month long Dip & Win consumer promotion campaign in June 2013.

• Price discount and allowances like Lipton recently launched a consumer promotion campaign

announcing a massive price off (up to Rs 60 for its largest SKU of 950g). The concept is based on the message of TABDEELI 

MARKETING CHANNELS

• TV• Newspaper• Broaches• Magazines• Bill boards• Special promotions or packages• Internet marketing• Bus branding• Merchandising• Sponsorship

Conclusion

Lipton is one of Pakistan’s leading and most loved brands. Their strong brand equity appeals to customers with its

unique history and availability in more than 150 countries worldwide so consumers know and trust it.

Lipton plays the role of an energetic brand that aims to redefine the meaning of tea in people’s lives. So Lipton is

fulfilling its promise by

Lipton tea providing great taste, aroma, flavor and color to their customer around the world.

Brooke Bond SUPREME

History• Brooke Bond & Company was founded by Arthur

Brooke who was born at 6 George Street, Ashton-under-Lyne, Lancashire, England in 1845. He opened his first tea shop in 1869 at 23 Market Street, Manchester. Arthur Brooke chose the name because it was his 'bond' to customers to provide a quality tea, hence Brooke Bond. The firm expanded into wholesale tea sales in the 1870s.

• Brooke Bond's most famous brand is PG Tips, launched in 1930.The company merged with Liebig in 1968, becoming Brooke Bond Liebig, which was acquired by Unilever in 1984.

Founder of Brooke Bond Co.

Brooke Bond Supreme in Pakistan

• Brooke Bond’s supreme blending expertise in tea blending together juicy leaves for the unique rich color, medium sized grains for the correct strength and top leaves for that irresistible aroma in the perfect combination to give that unmatchable in every single cup supreme tea

• Brooke Bond supreme is a part of life for the Pakistani consumer bringing family closer together with its rich taste and traditions

Attributes of Supreme

Marketing Objectives• • Achieve target sales of 4000 kg/day. The strategy used to

accomplish this objective would be to advertise by using all media vehicles selected, which will position Brooke Bond supreme to be the best quality beverage among target market.

• •• After six months strategy of supreme will shift from selective

distribution to intensive distribution slowly, there by maximizing the• number of retailers.• •• Once the awareness has been created, the main objective will be to

increase the market share. The aim will be to achieve an increase in the market share of approximately 15% in the first year.

Market Development and Strategy

• Market Development:•                                      supreme is using market development to

increase it’s sales volume, by entering in a new market of people who thinks tea is harmful for body. by a new advertisement of supreme using new slogan.

•                    ‘’supreme tasty he nae healthy bhe ha’’• Forward integration� :•                                          Supreme is using forward integration

strategy to increase its sales volume in Pakistan , by maintaining good relation with distributers and retailers and by giving bounce

• Multi-variables:•                            supreme targets whole tea drinkers in Pakistan no

matter from any sex , age , income group and family size

Marketing Mix Strategy

• little variety and variation Products

Price• The pricing strategy put to work is Markup Pricing Technique which states that after

calculating the cost, required margin in percent should be include to determine the price, Moreover competition pricing is also considered. Therefore the price is marginally high than that of competitors to educate the consumers that the quality of the product is improved and of high quality. For an instance price of 100g is calculated as follows.

• cheap price as compared to their rivals

• Cost for 100 grams Rs 16.0

• Packaging cost per box Rs 0.5

• Distributors profit margin Rs 3.6

• Retailers profit margin Rs 3.0

• Total Rs 23.3

• Gross Margin Rs 2.8

• Total Price Rs 26.0

• Pricing of other packages are 200gms for the price of Rs. 56/-, teabags 50 pc sare priced at 65, teabags are priced at Rs 125/- jar is priced at Rs 100Rs

Place• The company is using a two-level channel, where Company will hire a

distributor who will work on commission basis and further more the distributor will sell the product to customer which will ultimately be sold to end-consumers. That is the channel of distribution would be from the manufacturer to the distributor to the retailer. 

• Geographically Supreme places itself in urban areas e.g

Multan

Hyderabad

Quetta

Peshawar

Karachi

Lahore

Islamabad

Promotion• Television

• Internet

• News papers

• Magazines

• Word of mouth with slogans like “ yahi toh hy apna pan”

• Introducing celebrities for their product sale

• Giving discounts to attract consumers

• Less advertisement

Advertisement• Supreme advertise its

product as the sign of relation bonding

• Celebrities also called for their product sales promotion

Competitive situation• Lipton and tapal Danedar are given tough time to the

Brooke Bond Supreme.

• Strengths• Weaknesses• Opportunities• Threats

Strengths • Supreme is having strong

company image

• Have sound and experienced

management

• Strong and long-term

relationships with distributors, retailers and wholesalers

• Outstanding marketing, sales and R&D Departments

Weaknesses

• Lack of product assortment in supreme tea• Little advertisement and

seldom promotional activities• Competition with a family brand Lipton

Opportunities

• Variety can regain its position

• High rate of population growth

• Proper check and balance on smuggled tea

• Variation in taste and quality

• Through advertisement

Threats

• Existing and new competitors like Tetly, Tapal etc• Inflation rise which reduces disposable income of

consumers• Increase in the import duty which discourages production

and consumption as well• Intensive and high marketing • strategies of rivals cause decrease in

Supreme sale

BCG matrix• The product comes under dogs

( low growth and low market share

Supreme basically targets the middle class of population which makes a sense to bring relation closer at tea time

Distribution channels

• Supreme use conventional distribution channel in which involves distributors,wholesalers,retailers, and then product reached to final consumer

Major reasons of declining

• Lack of product assortment

• Fierce competition

• Lack of product variety as compared to Lipton and Tapal

• Change in consumer performance

Supreme sales analysis

"We are at Tapal are committed to create powerful brands for our diverse consumer base."

• The Core• Tea Beverage

• The Actual Product

• Packaging and labeling:• Branding: Red color, aspect of refreshing, hard pack

and soft pack both.• Trade name: Tapal Dander, a TAPAL product• Brand personality Freshness, Healthy, Innovative,

etc.• Brand equity: Tapal Danedar provides a quality,

consistent, innovative and accessible tea reputation.

• Tapal follows high-medium price strategy in which it offers high quality tea at reasonable prices.

• Tapal also follows a Going Rate Pricing strategy, in which it bases its price largely on competitors’ price that is Unilever.

• Unilever being the market leader always sets the price, and then Tapal accordingly allocates its prices, always lower than that of Unilever.

• Besides taking the competition into account, Tapal does cost plus pricing

• In the beginning the company sole aim was to capture the tea market of Karachi, as they were already in tea business here, only and then strategically build there network to other cities of Pakistan.

• Now Tapal has a distribution network spread across Pakistan, from Karachi to Khyber with over 410 distributors, Extensive training programs are provided for the devoted sales personnel. The popularity of its fine brands is unabated, making it the No.1 national tea company in Pakistan.

Tapal has a wider distribution coverage in the South where as Unilever has better distribution in the North. Therefore, Tapal’s main objective is to increase their sales in the North. It ensures that it places its tea in the same outlets as its competitors in order to maximize availability. The distribution coverage of Tapal is as follows:

Karachi 14% Lahore 34% Islamabad 18% Sukkur 22%Hyderabad 12%

Tapal caters to its customers by providing Tapal Danedar and Family Mixtures to more than 140,000 outlets in Pakistan, which include superstores, department stores etc

Major Activities

Transformed Soft Pack to Hard Pack with the use of the following communication platforms

•Sales Briefing Sessions

•Pack Revealing Ceremony

•Press Conference

•Press Advertisement •Radio Commercial Airing•Bill Board Advertisement

•Shop Signage's

Thematic campaign was also launched with complete ATL and BTL support

The TVC was aired on

•GEO Entertainment •GEO News•HUM TV•ARY Digital•ATV•Express News•KTN•APNA

Promotion of tapal:A large part of their advertisement and compaigns

reflects its local market Pakistan.They have got a strong position in Pakistan b/c of

their strong advertisiment.

• A CP was offered in the month of March which ran nationally across all channels

• A “Glass Mug” was offered free with every box of DD TB 200g

• The CP was put forward with the following support

– POS material– Radio Commercial– Mobile Backlighted Vans

Target market target market of Lipton:Lipton has targeted its market successfully and it has selected the following sections of the international market to be targeted. Geographically

Age group

Gender

Social class

Target market of Tapal:Tapal has targeted its market successfully and it has selected the following specific sections of Pakistani market and some sections of international market:

Geographically

People of all behaviors

in Pakistan

Age group

Social class

MARKET POSITIONING POSITIONING OF LIPTON:Some of successful steps taken by Lipton in order to position its target market are following:

Acquired by Unilever.

Joint ventures with Pepsi

Received a Corporate Green Globe Award

POSITIONING OF TAPAL:

Tapal has positioned its target market by its excellent performance from the very beginning. Some of its achievements, due to which people started preferring Tapal’s products are:

Pakistan Advertising Society (PAS) Award 2011- Campaign of the Year: Tapal Danedar “Har Mizaaj se Ashna”

All Pakistan Newspaper Society (APNS) Award 2010- Best Print

Pakistan Advertising Association Excellence Awards 2005

Tapal Sales Volume

Sales Volume of Tea

Annually sales of tea in Pakistan's tea market

PERSIL POWER

One Stubborn Stain on Unilever’s Reputation

OUTLINE

Unilever ProfileUnilever Profile

Persil & Persil PowerPersil & Persil Power

Persil Power AchievementPersil Power Achievement

Persil Power FailurePersil Power Failure

Consequence and SolutionConsequence and Solution

Marketing Lessons Marketing Lessons

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2

3

4

5

6

COMPETITOR

Persil arrival

• called PERSIL-a soap for washing clothes. In the mid-1990s, the total UK market for soaps and detergents was worth US 2,6billion usd and   was fabric washing,worth£960 million and 67,5 per cent of the total sector. The competition between the two leading companies within the sector Unilever and Procter &Gamble, was intensive and led to a quest for more and more innovative brand offerings

• the product hit the market place in May 1994, it proved so powerful that under certain conditions it didn’t only destroy stains, it destroyed clothes as well.

PERSIL & PERSIL POWER

Launched in early 90s

PERSIL = Per borate + Silicate

Persil Power Persil Power

competes Arielcompetes Ariel

PERSIL POWER ACHIEVEMENT

MAKE DIFFERENTIATION

HIGH CONSUMPTION

HIGH CONSUMPTION

MOST SIGNIFICANT

THING

MOST SIGNIFICANT

THING

11 4422 33

OVERTOOK ARIEL

PERSIL POWER FAILURE

Failure Details of Persil• When Unilever’s star brand Persil announced the launch of a

powerful new formula, called Persil Power, many consumers got excited by the product’s apparent ability to fight any stain. However, when the product hit the market place in May 1994, it proved so powerful that under certain conditions it didn’t only destroy stains, it destroyed clothes

• A patented manganese component called an ‘accelerator’ which was put in the powder – also proved to be its fatal flaw. As soon as stories of disintegrated clothes started to emerge, Procter & Gamble ploughed their resources into an accusation-laden publicity campaign which not only damaged Persil Power, but also had implications for Unilever itself. Consumers soon understood that the product could damage materials at high temperatures, and that if they bought Persil Power they risked destroying their clothes.

CONTD.• .At the start of 1995 Unilever replaced Persil Power with

Persil New Generation. The overall cost was estimated at more than £200 million. Now, however, the whole episode is almost forgotten in the UK customer’s mind, and Unilever has bounced back with its launch of detergenttablets.Indeed, the Persil brand has now regained leadership

CONSEQUENCE & SOLUTION

Persil Power

Persil New Generation

Consequence: Most retailer rejects Persil.

$200 million

MARKETING LESSONS

Accept that no brand is an exception

Test products in all conditions

Thank You!