Unilever SWOT
Unilever SWOT
Unilever SWOT
Unilever PLC England the parent company all over the world gives assistance to Lever Brothers Pakistan Limited so Lever Brothers Pakistan Limited enjoys a high level of support from Unilever. 2. Another major source of strength for Lever Brothers Pakistan Limited is its product targeting all income groups. Lever Brothers Pakistan Limited is providing products total income groups i.e. providing quality with economy as well e.g. Wheel washing powder, Breeze beauty soap, Taza Chai, etc. 3. Lever Brothers Pakistan Limited is the oldest company operating in Pakistan which gives him a commanding position is Pakistan to certain extent. 4. Lever Brothers Pakistan Limited enjoys the services of highly professional management in the area of sales, marketing, technical and production. 5. Lever Brothers Pakistan Limited has such a strong goodwill in the market that some of its brand names has become the generic names for those products such as Surf for detergents and Dalda for ghee. 6. Lever Brothers Pakistan Limited is the largest producer of consumer products in Pakistan and has strong brands in every field such as Close Up, Dalda, Surf, Lifebuoy, Lux, etc. 7. Lever Brothers Pakistan Limited having the biggest shares in tea market having the biggest brand Lipton and Brooke Bond. 8. They are market leader in ice cream business of Polka i.e. horizontal integration with hostile takeover they have captured their competitors thereby reducing competition. 9. The company has the assets of more than 5 billion. So, it can invest further product innovation and development. 10. 11. It has the largest and efficient distribution network then any its competition. Lever Brothers Pakistan Limited is the only company in Pakistan which has its own corner research department.
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The company is very strong financially. The company is working for almost 50 years in Pakistan. Thats why it has many advantages. Which other do not have. They have know how of the market. They understand the market very well. Similarly during this period they have developed a very organized distribution network all over the country. Another advantage is there wide range of products, which give them a position to monopolize the retailers shop. It is estimated that over more than 30% of a retailers shop items are by this single company. WEAKNESSES
1.
Lever Brothers Pakistan Limited unable to capture shampoo and toothpaste market i.e. low market share.
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New variants of the company were not able to sustain in the market such as harmony. Lever Brothers Pakistan Limited is relatively week in their innovation department i.e. being first to introduce Surf but after that has no major innovation.
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Emphasizing only few products while ignoring others which could give them potential market shares e.g. beverages section.
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Lever Brothers Pakistan Limited go for long term strategies for all their product categories which prove to be a weakness with change in the circumstances and taste, trends of people OPPORTUNITIES
1.
With the help of further advertising their non competing brands can increase their market share i.e. market penetration strategy. People will definitely go for these products as Lever Brothers Pakistan Limited has a sound image in peoples mind. Whatever the brand is being sold is mostly on the basis of brand loyalty.
2.
They have capital to invest they can explore new product categories e.g. in food and beverages they can develop new products like Rafhan has launched custard, jelly, kheer mix, rasmalai mix, etc. through it again will broaden their product categories and will make their operations complex but this could be avoided with sub contracting i.e. strategic partnership with their suppliers. These products can prove a cash cows as
customer in Pakistan always welcome food items especially they will welcome due to brand image of Blue Band and Dalda ghee in food category and due to Lipton and Supreme in beverages category. 3. Lever Brothers Pakistan Limited relaunches most of its products with same name or little change in the name e.g. Surf Micro to Surf Extra, ,then to Surf Ultra and then to Surf Excel, with little change of name and little changes in its formula. If Lever Brothers Pakistan Limited launch its products with in prevailing product categories, with entirely new name and new formula then they can capture new market shares as it will gain capture the attention of its target market more as compared to existing one. Though apparently it will increase the advertising cost but it will be compensated with exciting sales as you have to advertise more even in case of relaunch of products with little change in names and formulas. So why not to go for new name and new formula as it will increase your brand portfolio, it can satisfy the needs of customers which were unsatisfied with the previous brands, its names, its formula, e.g. people used to say Surf fades the clothes, they changed formula and not name only gave it a suffix of Excel i.e. Surf Excel now the people who developed this perception that it fades the color, remain reluctant for long time even after its relaunch and heavy advertisement. THREATS 1. P&G is giving very serious threats to Lever Brothers Pakistan Limited in the business of detergents and personal wash and shampoos. 2. No of local companies producing detergents and market them at very low prices which is a threat to Surf. 3. In the case of ghee and oil business Habib is giving very tough competition to Lever Brothers Pakistan Limited by introducing its variety of products. 4. Treat is promoting Bodyguard very much and trying to produce a competition in the carbolic soap market. 5. Increasing inflation in the country, persistently reducing the purchasing power of the people and dropping people from high price products to low price products e.g. the detergents and providing fuel to the expansion of unorganized sector.
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Increased import duties are also adding to the prices of the products and in Pakistan which is a very price for all the firms not only Lever Brothers Pakistan Limited who are using imported raw material.
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Threats of new entrants are also present. As ICI is a potential threat in detergents industry, because they are already involved in chemical business and providing raw material for detergent production to different manufacturing companies like Lever Brothers Pakistan Limited and Colgate Palmolive.