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INTRODUCTION

To perform a marketing analysis is one of the crucial tasks for the marketing department of the

company. This analysis includes all the factors that will affect on the overall image of the

company in the market and also helps in catering the potential markets. Marketers and Marketing

managers devise strategies for increasing the sales and marketing efforts to promote their

products. As the product of any company is the main element upon which the entire existence of

the company depends. So marketing analysis of the product sales, promotion, purchase, and post

purchase decisions are gaining more importance in today’s world. Most of the multinational

companies around the globe devise their strategies to gain and sustain the competitive advantage

in the present market.

In this assignment, I will try my best to cover all the aspect of the marketing analysis in order to

ensure the reader that what are the key factors of the marketing analysis and with the help of an

example I will explain these key factors. For this assignment I had selected Unilever Pakistan

Private Limited. This company is one of the major multinational companies having the excellent

sales turnover in its various brands and has kept an eye on the changing marketing environment

of the country. Company has its specialized marketing department as well as sales force that take

the orders and provide the delivery of desirable brands of consumer products all over the

country. The main objectives of making that assignment are given below:

1. Influence of the marketing environment on the product sales.

2. Describing the developments in the marketing environment that could affect the

company’s product in positive and negative way.

3. Role of an marketing environment analysis as the basis of marketing analysis

4. Conclusion of the whole discussion with the recommendations.

First of all, I will describe a little about the history and profile about Unilever Corporation and

Unilever Pakistan, Secondly, there would be a discussion on the marketing environment of

Pakistan in which Unilever Pakistan is operating, and thirdly this assignment will describe the

relationship between the marketing analysis and environmental analysis with conclusion and

suggestions at the end.

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History of UNILEVER

Unilever Pakistan Ltd (one of the largest multinational companies) is the member of Unilever

PLC London. Unilever was formed in 1930 when the Dutch Margarine Company Margarine

Unie merged with British soap maker Lever Brothers. Companies were competing for the same

raw materials, both were involved in large-scale marketing of household products and both used

similar distribution channels. Margarine Unie grew through mergers with other margarine

companies in the 1920s. Unilever was founded in 1885 by William Hesketh Lever. Unilever

established soap factories around the world. In 1917, he began to diversify into foods, acquiring

fish, ice cream and canned foods businesses. Since 1930, the two companies have operated as

one, linked by a series of agreements and shareholders that participate in the prosperity of the

whole business.

Unilever Pakistan Limited (UPL):

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. Its earlier headquarter was situated at Rahim Yar Khan. But it was shifted

to Karachi from Rahim Yar Khan Site in the mid 60’s. Unilever is now operating six factories at

different locations around the country. Unilever Pakistan Limited is largest fast moving

consumer Products Company in Pakistan. Unilever Pakistan Limited is a part of Unilever- a

global company. Unilever Pakistan Limited is producing more than 50 brands in Pakistan.

Unilever has a long list of brands such as Surf, Vim, Rin, Lifebuoy, Sunlight, Lux, Rexona,

Sunsilk, Close-Up, Blue-Band, Dalda, Planta, Lipton’s Yellow Label, Taaza and Richbru, Brook

Bond’s Supreme and Kenya Mixture etc.

Unilever Pakistan limited is a wholly owned subsidiary of Unilever Overseas Holding, UK,

Unilever PLC (A company incorporated in the United Kingdom). The Company is incorporated

in Pakistan and listed on the Karachi, Lahore, and Islamabad Stock Exchanges.

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INFLUENCE OF THE MARKETING ENVIRONMENT ON THE PRODUCT SALES

The first major issue that is addressed in this assignment is the influence of the marketing

environment on the product sales. Before proceeding to the influence of the marketing

environment on the product sales, there is a need of clarification about the marketing

environment. The market environment is a marketing term and refers to factors and forces that

affect a firm’s ability to build and maintain successful relationships with customers. (Wikipedia)

As far as Unilever Pakistan is concerned, the culture of the company had a great impact upon the

environment in which it is operating. Unilever claims that it is a consumer good company and it

modifies its products according to the needs and demands of its customers. Customers in

Pakistan are relying on the products of the Unilever. The company’s trade mark is the symbol of

the quality of the product. Other factors in the marketing environment like suppliers, competitors

and changing people preferences will have a great impact on changing the strategy according to

the current market scenarios. Like all over the world, people in Pakistan also demand better and

healthier products with the passage of time. Awareness of the new products of other companies

via strong electronic and print media will push Unilever to diversify its products day by day. The

major competitors of Unilever in Pakistan are P&G, Colgate, Reckitt Benckiser and Nestle

Pakistan. Major products of Unilever that are selling in Pakistan are categorized under three

major categories:

1. Personal Care brands: These brands include Axe, Dove, Lifebouy, Lux, Ponds,

Rexona, Closeup, Sunsilk etc.

2. Food items: It includes Knorr, Lipton, Rafhan, Supreme, Walls, Energile, Blueband etc.

3. Home care brands: These brands includes Comfort, Surf excel, Rin, Vaseline etc

All the sales of the above brands and related brands of Unilever are greatly influenced by the

marketing environment that includes economic, political, technological, global, socio-cultural,

and demographic factors. All these factors have an equal impact on Unilever and its operations

as does the specific environment of Unilever. Political factor had a large impact on Unilever’s

operations in Pakistan due to instability in the country. Other factors like economic, political,

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technological, global, socio-cultural, and demographic factors also have a great impact on the

marketing environment.

DEVELOPMENTS IN THE MARKETING ENVIRONMENT THAT AFFECT THE

COMPANY’S PRODUCT

Marketing environment is changing day by day everywhere in the world. Marketing environment

factors act external to the company and are quite uncontrollable. These factors do not affect the

marketing ability of the concern directly but indirectly the influence marketing decisions of the

company. These are the macro environmental factors that affect the company’s marketing

decisions positively and negatively, if these following factors are handled by the company

accurately then they will create the positive impact on the sales and promotion otherwise

negative:

a) Demographic Factors: 

People forms markets. Marketing department of Unilever Pakistan is keenly interested in

the size and growth rate of population in different cities, regions, and nations; age

distribution and ethnic mix; educational levels; households patterns; and regional

characteristics and movements. These demographic characteristics of the people of

Pakistan are changing day by day so Unilever is diversifying its product range according

to the changing demographics.

b) Economic Factors: 

Marketing department of Unilever Pakistan also considers the economic considerations of

the people. Inflation is the major problem of the country. So Unilever Pakistan made its

products at affordable prices that can be consumed by all the social classes of the society.

Costly brands are now available in those quantities which are affordable by all social

classes.

c) Physical Factors: 

Components of physical forces are earth’s natural renewal and non-renewal resources.

Natural renewal forces are forest, food products from agriculture or sea etc. Non- renewal

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natural resources are finite such as oil, coal, minerals, etc. Both of these components

quite often change the level and type of resources available to Unilever Pakistan for its

production. Due to these Physical factors production and sales of the products are

seriously affected.

d) Technological Factors: 

The technological environment consist of factors related to knowledge applied, and the

materials and machines used in the production of goods and services that have an impact

on the business of an organization. If we see the product and brands sequence since the

inception of Unilever in Pakistan, various brands and products are launched and many

products are diversified with new formulas and tastes.

e) Political and Legal Forces: 

Developments in political and legal field greatly affect the marketing decisions. sound

marketing decision cannot be taken without taking into account, the government

agencies, political party in power and in opposition their ideologies, pressure groups, and

laws of the land. These variables create tremendous pressures on marketing department

of Unilever. Laws affect production capacity, capability, product design, pricing and

promotion. Government in almost all the country intervenes in marketing process

irrespective of their political ideologies.

f) Social and Cultural Forces:

In Pakistan, social and cultural factors are deeply affected to the company’s sales.

Unilever Pakistan made those products and promotes them in the social and cultural

context that is acceptable in Pakistani market. The social forces attempt to make the

marketing socially responsible. It means that the Unilever Pakistan should take a lead in

eliminating socially harmful products and produce only what is beneficial to the society.

These are numbers of pressure groups in the society who impose restrictions on the

marketing process.

(Various Environmental factors Affecting Marketing Function)

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ROLE OF A MARKETING ENVIRONMENT ANALYSIS AS THE BASIS OF

MARKETING ANALYSIS

Marketing environment Analysis and marketing analysis are two inter-related terminologies. In

this part of assignment Marketing Environment analysis is defined of the chosen company

Unilever Pakistan Private Limited and then relation of this environment analysis with the market

analysis. For conducting the marketing environment analysis, many analysis are performed like

SWOT Analysis, TWOS Analysis, BCG Growth matrix, PEST Analysis, PESTLE analysis, etc.

as this assignment is based upon the Unilever whole group so that two major analysis pertains to

marketing environment are described here as follows:

1. SWOT Analysis: In order to determine the overall market position of the company

among its direct and indirect competitors.

2. BCG Growth Matrix: In order to determine that which brand or product of the Unilever

is gaining more market share and which is losing the market share.

Both the above analysis will help the reader for understanding the marketing environment

analysis. The details are given below:

1. SWOT Analysis:

This analysis classifies the internal aspects of Unilever Pakistan as strengths

and weaknesses and external aspects as opportunities and threats.

a) Strengths:

The strengths of Unilever Pakistan are given below:

The trade mark of Unilever is now the one of the great strength of the company in

Pakistan. As discussed earlier, people in Pakistan perceive that any product of Unilever

with their trademark of U is of good quality.

Brand names of the Unilever brands are very appealing to the people thatswhy the sales

of their products grow day by day.

Company’s management is efficiently managing its operations in the country. The

employees of the company are seems satisfied from their remuneration packages.

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Marketing campaigns of the Unilever including advertisements are very good and they

are promoting the sales of the respective product.

Product line of Unilever is also becoming their one of the major strengths in the

competitive market of Pakistan.

b) Weaknesses:

Weaknesses of Unilever Pakistan are given below:

Fluctuation in the currency value leads to the cost cutting in the manufacturing that hits

the quality of the products.

Less quality copied brands will create the bad impact of the Unilever on the public.

They take the wrong and ill legal use of the company’s name.

Some brands of Unilever are essential for the health care but the prices of those brands

are very high that a common person can’t afford.

Sometimes there is a mismanagement in the company’s inter departments that would

also effects the sales of the company.

c) Opportunities:

There are following opportunities for Unilever in Pakistani market:

Unilever should increase its sales programs to the rural areas of the country especially

in the under developed areas.

Apart from sales of the products, Unilever had the opportunity for launching the social

corporate programs for the general public.

Unilever should increase its production volumes and try to increase their availability in

the market. This will help them to meet the higher demands of the consumers.

Unilever should launch the new products or brands and modify its existing products and

brands in order to capture the more market share in Pakistani market.

d) Threats:

Major threats that are faced by the Unilever in Pakistan are given below:

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Immediate competitors like Proctor & Gamble are one of the major threats to Unilever

in Pakistan.

Rise in inflation rate causes the decrease the buying power of the consumers. That will

decrease the sales of the company.

Instability of Political systems of Pakistan is one of the major threats to Unilever

Pakistan.

Most of the brands that are not sold more are becoming threat for the company as

increasing cost.

2. BCG Growth Matrix:

Companies that are large enough to be organized into strategic business units face the challenge

of allocating resources among those units. In the early 1970′s the Boston Consulting Group

developed a model for managing a portfolio of different business units. The BCG growth-share

matrix displays the various business units on a graph of the market growth rate vs. market share

relative to competitors. On the vertical axis, market growth rate provides a measure of market

attractiveness. On the horizontal axis, relative market share serves as a measure of company

strength in the market. (Unilever Management Report)

Four major Standards Business Units described as per BCG Matrix of Unilever Pakistan are as

follows:

Cash cows: (LOW GROWTH, HIGH MARKET SHARE)

Surf excel

Ponds

Lipton

Close up

Blue band

Lifebuoy soap

Rexona

Knorr

STAR: (HIGH GROWTH, HIGH MARKET SHARE)

Lux

Sunsilk

Wall’s

Fair & lovely

Rafhan

Energile

QUESTION MARK: (HIGH GROWTH, LOW MARKET SHARE)

Clear shampoo

Rin

Comfort

DOG: (LOW GROWTH, LOW MARKET SHARE)

Wheel

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Supreme tea Lifebuoy shampoo

(Unilever Management Report)

Relationship of SWOT Analysis and BCG Growth Matrix of Unilever Pakistan with

market.

After performing the SWOT Analysis and BCG Growth Matrix analysis of Unilever Pakistan, It

is stated that the company operates in an emerging market with varied consumer preferences.

The market is highly responsive to economic conditions, inflation and social disruptions

resulting in variations in sales revenues for the company. Unilever Pakistan faces intense

competition from both organized and un-organized players. In the organized sector, competition

includes multi-national FMCG companies like P&G, Colgate, Nestle, Reckitt Benckiser as well

as local operators. Apart from the threat of legitimate competition, the company confronts the

risk of losing market share to cheaper smuggled and counterfeit products.

Despite current economic challenges faced in the country, Unilever Pakistan is having the robust

growth in consumer sector as a result of rising incomes and favorable demographics.

Encouraging demand drivers include growing young population, rapid urbanization, and

increased penetration of organized retail, all ensuing well for the company in Pakistani market.

(Unilever Pakistan Limited - Initiating Coverage)

CONCLUSION

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Unilever is a very strong multinational corporation with a lot of strengths, including its strong

management, to run its operations to the heights of success in Pakistan. It also has a few

weaknesses but those are very minor ones that are present with every organization and it also has

got the resources and managerial muscle to cope with those weaknesses and threats. It also has

major opportunities to flourish its business on urban and to rural areas of Pakistan. In the near

future with globalization of world continuing Unilever will be even bigger and stronger

(Unilever Management Report). Key points that are extracted from that research are given

below:

The culture of the company had a great impact upon the environment in which it is

operating

Customers in Pakistan are relying on the products of the Unilever. The company’s trade

mark is the symbol of the quality of the product.

All the sales of the products of Unilever are greatly influenced by the marketing

environment that includes economic, political, technological, global, socio-cultural, and

demographic factors.

Despite current economic challenges faced in the country, Unilever Pakistan is having

the robust growth in consumer sector as a result of rising incomes and favorable

demographics.

Unilever Pakistan faces intense competition from both organized and un-organized

players.

RECOMMENDATIONS

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A major challenge at Unilever is to make plans and strategies for achieving them to

compete with other large corporations. So the company has to ensure continuous

working on it.

One of the structured problems being a marketing manager has to face is to make

advertising campaign for a product of Unilever. So the company makes its

advertisement campaign process more specialized.

Listening to consumers is more important than talking at them. The   post   purchase 

feedback must be collected from the customers that would be help in both product and sales 

improvement.

Margins continue to remain under pressure on the back of rising inflationary pressures

pushing raw material costs high. Unilever Pakistan has to make strategies for

purchasing the raw materials in cost efficient manner without compromising on the

quality of the product.

The company should be highly responsive to economic conditions, inflation and social

disruptions that results in variations in sales revenues for the company

REFERENCES

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UK Essays, trading name of All Answers Ltd, Unilever Swot and Pestle Analysis,

Copyright © 2003 – 2013, http://www.ukessays.com/essays/business/unilever-swot-

and-pestle-analysis.php

Posted by admin on June 28, 2012, Unilever Management Report, Copyright © 2013

Education, http://education.lokoi.com/unilever-management-report

28 January 2013, Wikipedia, the free encyclopedia, marketing environment,

http://en.wikipedia.org/wiki/Market-environment.

IGI Securities research, 2008 March, Unilever Pakistan Initiating coverage,

http://www.igisecurities.com.pk/pdf/Unilever_Pakistan_Limited_Initiating_Coverage

.pdf

July 19, 2012, ebstudies, Various Environmental factors Affecting

Marketing Function, http://ebstudies.wordpress.com/2012/07/19/various-

environmental-factors-affecting-marketing-function/

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