INTERNSHIP REPORT ON

SHAH HYGENIC PRODUCTS PVT LIMITED

PAKISTAN LIMITED
HARIPUR HATTAR

Submitted by
Umar Ibrahim

Roll #: S-031-2015

Supervised by
Sardar Ejaz Ahmed

Government College of Management Sciences Abbottabad

SESSION
2015-2018

i
 INTERNSHIP REPORT ON
SHAH HYGENIC PRODUCTS PVT LIMITED
PAKISTAN LIMITED
HARIPUR HATTAR

Submitted by: Umar Ibrahim

Roll #: S-031-2015

Supervised by: Sardar Ejaz Ahmed

This internship report is submitted in partial fulfillment of
the requirements for the degree of Bachelors of Business
Administration awarded by the Hazara University
Mansehra

Government College of Management Sciences Abbottabad

SESSION
2015-2018

ii
 Government College of Management Sciences
Abbottabad
APPROVAL SHEET

Approval Committee
1. Supervisor

Sardar Ejaz Ahmed Signature______________________

Designation Associate Professor GCMS Abbottabad

2. Head of department

Mr. Mushtaq Ahmad____________

Signature_____________________
Designation Principal GCMS Abbottabad

3. External Examiner

Mr._____________________Signature_____________________
_

iii
 DEDICATION

To my beloved parents who have been a great source of inspirations throughout my

life. And all my respected teacher & my beloved friends.

iv
 ABSTRACT

The main purpose of this study is to explore consumer attitudes towards the
banking sector. The study was based on an exploratory research approach,
which used a detailed study of different department of Shah Hygenic Pvt Ltd

I did my Eight weeks internship at Shah Hygenic Pvt Ltd, worked in account
Marketing department, accounts department,. Although there were no such
big problems found in the working of Shah Hygenic Pvt Ltd, there were some
problems in training of the employees, incentive schemes and product
innovation. Recommendations include workshops for employees, job
rotation, teams work to find innovative products and scholarship programs
for employees.

v
 Table of Contents

Chapter 1..................................................................................................................- 1 -
INTRODUCTION To The Report.........................................................................- 1 -
1.1 Introduction...................................................................................................- 1 -
1.2 Purpose Of Study..........................................................................................- 1 -
1.3 Internship Objectives...................................................................................- 2 -
1.4 Limitations.....................................................................................................- 3 -
1.5 Delimitations.................................................................................................- 3 -
Chapter 2..................................................................................................................- 5 -
INTRODUCTION OF SHAH HYGENIC PRODUCTS PVT LIMITED
PAKISTAN Ltd.......................................................................................................- 5 -
2.1 Shah Hygenic Products Pvt Limited..........................................................- 7 -
2.2 Overview of Shah Hygenic Products Pvt Limited...................................- 8 -
2.3 Accountable to our stakeholders................................................................- 8 -
2.4 Adding Vitality to life:...............................................................................- 10 -
2.5 Scale and geographic reach:......................................................................- 10 -
2.5.1 Strategy and long-term financial target............................................- 10 -
Chapter 3................................................................................................................- 13 -
Marketing...............................................................................................................- 13 -
3.1 Marketing Objectives of Shah Hygenic Products Pvt Limited Pakistan
Limited...............................................................................................................- 13 -
3.2 Attainment Of Objectives..........................................................................- 14 -
3.3 Attainment Of Objectives..........................................................................- 16 -
3.4 Marketing Strategies..................................................................................- 19 -
Chapter*4...............................................................................................................- 28 -
Analysis*of Shah Hygenic Products Pvt Limited............................................- 28 -
4.1 SWOT Analysis...........................................................................................- 28 -
4.2 EFE Matrix...................................................................................................- 31 -
4.3 IFE Matrix....................................................................................................- 34 -
4.4 SWOT or TOWS Matrix.............................................................................- 38 -
4.5 Space Matrix................................................................................................- 41 -
4.6 Grand Strategy Matrix...............................................................................- 43 -
4.7 QSP Matrix...................................................................................................- 44 -
4.8 PEST Analysis.............................................................................................- 46 -

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Chapter 5................................................................................................................- 49 -
Recommendation & Conclusion.........................................................................- 49 -
References..............................................................................................................- 52 -

vii
 Acknowledgements

God never spoils any effort; every piece of work is rewarded according to the nature
of devotion for it. We are extremely thankful to ALLAH ALMIGHTY Who, in spite
of numerous difficulties, vicissitudes and acute frustrations enabled us to probe the
present study and dissertation. We bow our head to ALLAH ALMIGHTY for the
buntings and the blessings that He has bestowed upon us. Who has given us the
courage and stamina to come up to the expectations of our revered teachers and ever
loving parents and to sum up my maneuverings for the completion of this manuscript.

All the respects are for the last Prophet of God, HOLY PROPHET
MUHAMMED (Peace Be Upon Him) Who is the greatest scientist of all the ages,
whose moral and spiritual teachings enlighten our heart, mind and soul and flourished
our thoughts towards achieving higher ideas of life.

We deem it utmost pleasure to avail this opportunity to express the heartiest

gratitude and deep sense of obligation to our revered Supervisor Sardar Ejaz Ahmed
for his skilled guidance, keen interest, constructive criticism, constant encouragement,
valuable suggestions and pains taking supervision throughout the course of our study
and research work. The work presented in this manuscript is accomplished under his
dynamic, skillful, affectionate guidance and generous transfer of knowledge.

Umer Ibrahim

viii
 Chapter 1

INTRODUCTION To The Report

1.1 Introduction

This internship report is about Shah Hygenic Products Pvt Limited, which is

one of the reputable companies in the country. Shah Hygenic Products Pvt

Limited is a highly profitable company, having a huge number of customers in

the world. To know about the organization and its function it was important to

work there. This report comprises the research study carried out to analyze the

marketing practices of Shah Hygenic Products Pvt Limited. It encompasses

the experience of the internee through learning, his findings and finally few

suggestions, recommendations and conclusion. The study is mostly carried out

on the marketing procedures, policies and functions of the Shah Hygenic

Products Pvt Limited.

1.2 Purpose Of Study

Being a student of BBA(HONS), the purpose of this report is to critically

define and describe different functions and products offered by the Shah

Hygenic Products Pvt Limited to its valued customers. To identify some

weakness related to management, the aim is to analyze the performance of

the organization and make a critical analysis of it and suggest

1
recommendations. The recommendations, if supplemented by an action

plan, will further facilitate the improvement process.

For me it is a course requirement and a source of practical knowledge, the

purpose of this study is to elaborate what the Shah Hygenic Products Pvt

Limited does or it supposed to do it, and to evaluate how it is actually

being done. In short the research report will prove to be a yardstick in

determining how tasks should be performed and how are they being

performed in reality.

1.3 Internship Objectives

The purpose of the 8 week internship at Shah Hygenic Products Pvt

Limited is to get insight into the practices being done and to find out the

gap between what I learned during the two year degree program of

BBA(HONS)(Bachelors of Business Administration).This report will help

the students in performing specific tasks in a professional environment

which will sharpen the professional edge of the student in the field of

Business Administration and to observe that how organization is practicing

the major Marketing functions. The report on internship is also a

requirement for award of my degree as well or fulfilling the requirement of

BBA(HONS) program while analyzing Marketing functions and

generating a report.

2
1.4 Limitations
No one can be entitled in order to retrieve it is result intended for

virtually any purpose except authorized Traditional bank staff

regarding recognized purpose. Research students are generally not

authorized in order to retrieve AND WORK WITH any kind of

discreet material for just about any purpose, As That is against this

company policy. the particular study are conducted As outlined by

your objectives of an study. the study may not include broad

explanations of points AS WELL AS personas for its nature of an

study, your own problem regarding short date period in addition

makes ones analysis restricted Just like solitary are not able to

properly understand ALONG WITH and so analyze every one of the

operations of an Shah Hygenic Products Pvt Limited .

1.5 Delimitations
The concerned company can use the recommendations of this report in

order to improve its overall performance.

1.6 Methodology of Report

The methodology adopted for the report was based on collection of data of

both types i.e. primary data and secondary data.

• Primary data

• Secondary data

3
1.6.1 Primary Data

• Discussions with distribution Manager & other Management members.

• Observations

1.6.2 Secondary Data

• Manuals

• Annual report

• Brochures

• Internet Websites

4
 Chapter 2

INTRODUCTION OF SHAH HYGENIC

PRODUCTS PVT LIMITED PAKISTAN Ltd.

Shah Hygenic Products Pvt Limited is one of the world's leading suppliers

of fast moving consumer goods across Foods and Home and Personal Care

categories. Shah Hygenic Products Pvt Limited's portfolio includes some

of the world's best known and most loved brands. Shah Hygenic Products

Pvt Limited SHAH HYGIENIC PRODUCTS Pvt. LIMITED is

established in 2011 end, G.H.P. has earned professional repute in

providing value added consulting services and solutions with the enhanced

customer’s satisfaction. With varied domain expertise, past international

trading, international experience with world leading companies and wide

network of international alliance partners and some productive ,hard and

smart workingShah Hygenic Products Pvt Limited owns over 400 brands,

but focuses on 14 brands with sales of over 1 billion euros -

Axe/Lynx, Dove, Omo, Becel/Flora, Heartbrand ice

creams, Hellmann's, Knorr, Lipton, Lux,Magnum, Rama, Rexona aka

Sure\Degree\Rexena\Shield, Sunsilk and Surf.[7] It is a dual-listed

company consisting of Shah Hygenic Products Pvt Limited N.V., based in

Rotterdam, and Shah Hygenic Products Pvt Limited plc, based in London.

The two companies operate as a single business, with a common board of

5
directors. Shah Hygenic Products Pvt Limited is organised into four main

divisions - Foods, Refreshment (beverages and ice cream), Home Care,

and Personal Care. It has research and development facilities in the United

Kingdom (2), the Netherlands, China, India and the United States.

Shah Hygenic Products Pvt Limited was founded in 1930 by the merger of

the Dutch margarine producer Margarine Unie and

the British soapmaker Lever Brothers. During the second half of the 20th

century the company increasingly diversified from being a maker of

products made of oils and fats, and expanded its operations worldwide. It

has made numerous corporate acquisitions, including Lipton

(1971), Brooke Bond (1984), Chesebrough-Ponds (1987), Best

Foods andBen & Jerry's (2000), and Alberto-Culver (2010). Shah Hygenic

Products Pvt Limited divested its speciality chemicals businesses to ICI in

1997. In the 2010s, under leadership of Paul Polman, the company

gradually shifted its focus toward health and beauty brands and away from

food brands showing slow growth.

Shah Hygenic Products Pvt Limited N.V. has a primary listing

on Euronext Amsterdam and is a constituent of the AEX index. Shah

Hygenic Products Pvt Limited plc has a primary listing on the London

Stock Exchange and is a constituent of the FTSE 100 Index. The company

is also a component of the Euro Stoxx 50 stock market index.

6
2.1 Shah Hygenic Products Pvt Limited

Shah Hygenic Products Pvt Limited Pakistan (70.4% Shah Hygenic

Products Pvt Limited equity) is the largest FMCG company in Pakistan, as

well as one of the largest multinationals operating in the country. Shah

Hygenic Products Pvt Limited Pakistan Ltd., a subsidiary of the Shah

Hygenic Products Pvt Limited Group is operating in Pakistan since 1948.

The Company’s main business lines are Soaps and Detergents, Personal

Products, Cooking Oils and Fats, Packed Teas, and Ice Creams. Shah

Hygenic Products Pvt Limited 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. which are common household names in

Pakistan.

The Company’s factory in Rahim Yar Khan am sole of an 1st

industrial models to be able to possibly be made immediately after

your creation associated with Pakistan. Just like the consumer base

expanded throughout the years as well as the company entered in to

new goods lines including Personal products AND ALSO

Margarine, The item invested further for the installation of modern

manufacturing facilities just like a good factory in Karachi. Today, the

company will be applying latest state-of-the-art technology pertaining

to producing high quality products.

7
In 1995, the Company established a new factory near Lahore to

manufacture the Wall’s range of ice creams, which have become popular

within a short time. In 1996, the present group – Shah Hygenic Products

Pvt Limited UK acquired the Polka Group that produced ice creams. In

1999, Pakistan industrial promoters (Private) Limited, owners of ‘Polka’

brands of Ice Cream were merged with Lever.

In order to leverage the synergies of Shah Hygenic Products Pvt Limited’s

international brand strength, market edge and corporate image, Lever

Brothers Pakistan Ltd. changed its name to Shah Hygenic Products Pvt

Limited Pakistan Ltd., in August 2002.

2.2 Overview of Shah Hygenic Products Pvt Limited

The company had a turnover of Rs. 23.3 bn  (Euro 309 mn) in 2007, and

enjoys a leading position in most of its core Home and Personal Care and

Foods categories, e.g. Personal Wash, Personal Care, Laundry, Beverages

(Tea) and Ice Cream.

The company operates through 5 regional offices, 4 wholly owned and 6

third party manufacturing sites across Pakistan.

2.3 Accountable to our stakeholders

Since the time Shah Hygenic Products Pvt Limited Pakistan began its

operations in 1948, the Company has been closely connected to the

Pakistani people and its brands have been an integral feature in their daily

8
lives. In fact, the nature of our business enables our brands to be the pulse

and heartbeat of the 164 million people in Pakistan.

This is a huge commitment, which makes us responsible and accountable

to all our stakeholders and society as a whole and strengthens our resolve

to:

 Make a positive difference to the lives of low income consumers

 Create new opportunities for growth

 Improve the overall quality of life in Pakistan, by promoting

education, nutrition, health and hygiene.         

Our Vision

“Touching Hearts, Changing Lives.”

Our Mission

“Mission Is To Add Vitality To Life. We Meet Everyday Needs For

Nutrition, Hygiene and Personal Care With Brands That Help People Feel

Good, Look Good and Get More Out Of Life.”

9
2.4 Adding Vitality to life:

150 million times a day, in 150 countries, people use our products at key

moments of their day. In the future, our brands will do even more to add

vitality to life. Our vitality mission will focus our brands on meeting

consumer needs arising from the biggest issues around the world today –

ageing populations, urbanisation, changing diets and lifestyles.

2.5 Scale and geographic reach:

“Our deep roots in local cultures and markets around the world give us our

strong relationship with consumers and are the foundation for future

growth. We will bring our wealth of knowledge and international

expertise to the service of local consumers - a truly multi-local

multinational” - extract from Shah Hygenic Products Pvt Limited’s

Corporate purpose.

2.5.1 Strategy and long-term financial target

At the heart of Shah Hygenic Products Pvt Limited's strategy is a

concentration of resources on areas where we have leading category and

brand positions and which offer excellent opportunities for profitable

growth, especially in personal care, developing and emerging markets and

Vitality. The focus is primarily on developing the business organically, but

10
acquisitions and disposals can also play a role in accelerating the portfolio

development.

To perform the strategy i have reorganised the organization in order

to simplify your own organisation ALONG WITH management

structure AND in order to improve attributes with marketing,

consumer management, IN ADDITION TO research AND

development. your own result is greater allocation of resources, faster

decision-making AND a good lower cost level. this transformation,

known Just as ones sole Shah Hygenic Products Pvt Limited

programme, permits us all in order to leverage MY OWN scale both

worldwide AND ALSO locally.

Shah Hygenic Products Pvt Limited's long-term ambition is usually for

you to become with top third associated with MY PERSONAL peer

group with regards to overall shareholder return. we expect underlying

income growth of 3-5% per annum IN ADDITION TO the managing

margin over 15% from 2010 immediately after the normal level

regarding restructuring costs connected with 0.5 in order to 1 percent

regarding turnover. Return with invested capital will be targeted to be

able to increase throughout the 2004 base of 11%. with the period

2005 – 2010, we aim in order to deliver ungeared free income

involving €25-30 billion. This In the event become noted The item

previously IN ADDITION TO planned disposals along with the added

restructuring plans will certainly have reduced ungeared free revenue

11
through information on €2.5 million over your period, whilst

enhancing your current ongoing funds producing capacity of a

business.

s.

12
 Chapter 3

Marketing

3.1 Marketing Objectives of Shah Hygenic Products Pvt

Limited Pakistan Limited

Their main objective is to have a double-digit growth and resultant cash

flows will be utilized in improving the product quality and contents to

enhance the value to customer and final users.

Lever Brothers Pakistan Limited has an objective to have a responsive

supply chain and technological based processes.

They want to have consumer connectivity, i.e. they want to know what

they eat, drink, how they spend their lives, what are their preferences. So

in this way they wan to be very close to customer, to know their real

insight and desires so they can develop new strategy for product design

and can implement their strategy in better manner i.e. avoidance of hit and

trial approach and hitting the right target with right strategy at right time in

right and accurate manner.

They want to be cost efficient i.e. they want to reduce in their cost of

production, cost of transportation, distribution and packaging cost and

finally reducing all the human cost to offer a competitive price to customer

maintain the high standards of quality.

13
To have a partnership with their suppliers to enable them to provide high

quality low cost material.

Have entered and will be aggressively developing new markets.

Be exciting to their customers with stream of innovative products.

To be no in all their existing markets.

3.2 Attainment Of Objectives

An objective or set of objective to be ideal must be “SMART” i.e.

1.            Specific

2.            Measurable

3.            Attainable

4.            Realistic

5.            Time frame

14
Specific

The objective of Lever Brothers Pakistan Limited are specific not general

e.g. they want to be number one i.e. market leader in terms of market

share. They want to be cost efficient it is specific i.e. they have to reduce

their costs without compromising on quality. They want to have focused

strategic thrust i.e. they are to simply reduce non-valuable slow moving

product. So the non-value added products are quite obvious with their sale

figure and popularity.

Measurability

Objectives of Lever Brothers Pakistan Limited are measurable as you can

easily measure the double-digit growth with their balance sheet footings

and cash flow analysis. Reduction in cost easily be measurable from

reduced price level and cost of production. Responsive supply chain

objective can easily be measured with quantity of real information

available on computer terminals of Lever Brothers Pakistan Limited.

Attainable

All of the objectives are attainable. They can be market leader e.g. they are

in Lux, Blue Band, Fair & Lovely, Lipton and Supreme. They have

portfolio and cash flows to invest in their product categories to achieve

their quality standards thereby becoming market leader with their

increased share, sales and growth. Thereby getting brand loyalty among

their customers.

15
Reliability

One has to be at the top so to be number one in its realistic objectives.

Other objective e.g. reduction in cost is realistic, you an reduce your cost

by focusing on value chain. Cost of inbound and outbound logistics.

The objective of launching innovative products is also realistic objective, it

comes only from creative ideas and implementation of these innovative

ideas comes up from investment.

Time Frame

All these objectives are to be attained in some specific time period.

3.3 Attainment Of Objectives

Lever Brothers Pakistan Limited’s strategy to attain the objectives is:

1.            Maximum coverage of outlets

2.            Desirable sales volume

3.            Display and merchandizing of products

4.            Developing quality and want satisfying product.

16
Since every company is formed to accomplish certain objectives. There is

no company, which had no goals. So Lever Brothers Pakistan Limited also

has targets before it.

These main targets and objectives are:

1.            Profits

2.            Consumerism

3.            Welfare of consumer

17
The first objective of Lever Brothers Pakistan Limited is to earn maximum

profit but keeping in view the customer demands as well company deals in

those products which are profitable.

If there are any indication that any item is not good from profit point of

view, it will try to find out the reasons. Will soon what steps should be

taken to overcome these reasons.

Company will introduce different marketing strategies if there are

problems in marketing. Here I would like to code two very famous

examples, 1st of Sunlight soap and Sunlight washing powder of Lever

Brothers Pakistan Limited.

18
Lever Brothers Pakistan Limited initially developed a sense of consumer

to use washing powder additional than washing soap, user switched s

a result to the Sunlight washing powder, i.e. popular portion of

washing powder IN ADDITION TO than your market share pertaining

to Sunlight soap declined with passage involving time, right now the

user who realized ones convenience involving washing powder

started utilizing it, but at the same time, thus marketing strategy

associated with Lever Brothers Pakistan Limited awareness involving

people, people switched to be able to surf IN ADDITION TO wheel

i.e. premium segment detergents. Finally due to the straight down with

the market shares AS WELL AS gross sales volume involving

Sunlight soap AS WELL AS was light powder Lever Brothers Pakistan

Limited management finally decided to help stop your current

production connected with the very products i.e. It is today obsolete.

Second example is related to the change of brand name of Surf to Surf

Excel. The reason behind was introduction of competitor’s brands like

Arial by P&G which had brightness features, which caused the people to

switch from Surf to Arial, Lever Brothers Pakistan Limited realized the

fact due to disturbance in sale volume of Surf and introduced new brand

name “Surf Excel” with extra brightness power.

Company also takes into consideration the welfare of the consumer. It

takes into mind the taste and habits of the customer. They pay much

attention on the customers’ complaints. It also works for the welfare and

interest of Pakistan, as it is an environment friendly organization.

19
3.4 Marketing Strategies

Now we will proceed with strategies being pursued by the Lever Brothers

Pakistan Limited at different organizational level. First we will discuss the

corporate level strategy.

Corporate Level Strategy

At corporate Lever Brothers Pakistan Limited is pursuing the strategy of

vertical diversification i.e. driving away from the previously adopted

strategy of vertical integration i.e. now they don’t want to perform more

than one step of the processes involved in converting raw materials into a

product delivered and ready for consumption. Lever Brothers Pakistan

Limited’s operations are so complexed and involves 200 brands in

Pakistan so now they wanted to reduce the operational complexity and

going for strategic alliances with their suppliers, instead of producing

themselves and going into complex operations now they want their

suppliers to produce for them.

The outsourcing the production so that they don’t have to invest heavily in

the production and to reduce the capacity problems, they now going for the

third party contracting to produce themselves and now they want them to

be restricted to marketing and distribution of products. 

20
Diversification strategy is being pursued by the Lever Brothers Pakistan

Limited but they mainly go for related diversification as against unrelated

diversification for conglomerates, they are diversified into number of

businesses as mentioned earlier but they are all related to consumer

products. Through vertical diversification they will be able to eliminate the

operational complexity and costs of buying and selling i.e. the

transactional costs. Now they mainly wanted to step away from operations

and want to focus more on customers.

As means of diversification which are being utilized by the Lever Brothers

Pakistan Limited as all the time, been acquisition, neither joint ventures

i.e. strategic alliances nor the internal development. Here we can take the

example of the acquisition of Brooke Bond and Polka for example which

have Brother acquired through a hostile takeover. And to step away from

operational complexities now they go for subcontracting with the suppliers

and want them to produce for Lever Brothers Pakistan Limited as in case

of oil and ghee and soap and with the passage of time will also be

implemented in other categories as well.

Business Level Strategy

At business level Lever Brothers Pakistan Limited is adopting a very

unique and interesting set of strategies. First and foremost strategy they

want to follow is the cost leadership. They wanted to control cost as much

as possible and want to reduce cost by every mean.

21
First cost efficiency is achieved through outsourcing operations and stop

producing themselves and go for cost efficient subcontracting.

Second they want for you to achieve cost efficiency during responsive

IN ADDITION TO cost efficient provide chain, want to be able to

possibly be with touch in vendors all the day AS WELL AS with

the It\'s connected themselves by the companies ALONG WITH to

be able to it\'s companies Just as properly to be able to minimize

cost concerning forecasting now they want better forecasting while in

computer networks therefore to have ones real time frame specifics

About the inventory, stock, necessitate IN ADDITION TO supply.

these are today reducing ones inventory AND ALSO average hauling

ones inventory regarding singular 2 days ALONG WITH acquiring

closer to the name associated with merely throughout time frame

except intended for the person products with regard to in which It

offers in order to brought inside raw materials coming from far flung

areas including tea IN ADDITION TO Moreover routings connected

with logistics As effectively such as air nav or maybe ship course-

plotting in order to curtail the expenses different as compared to

cost efficiency, It offers adopted the strategy associated with

consumer connectivity i.e. want to help stay closer in order to clients

rather to operations ALONG WITH want to help focus just about all

alternations to buyers through extra research AS WELL AS client

profiles AND ALSO demographics AND wants to help explore new

shoppers AND ALSO usage connected with products.lete.

22
To get customer connectivity they do the market research to check the

trends of their customers. The do pre-launch, post-launch research, e.g.

their did before and after lunching while antidandruff Sunsilk. The

response was quite encouraging. Hence basically customer and market

research and customer feedback, free samples distribution before and after

launching new product / brand/ variant is aiming their basic strategy to

implement and achieve the customer connectivity and to fulfill their

customer demand.

Here Lever Brothers Pakistan Limited has used the strategy of product

development i.e. by modifying and improving their Sunsilk it into Sunsilk

antidandruff (white), they have increased their sales. They are applying

“Market and Development Strategy” as well in which by introducing

present product (Sunsilk) into a new demographic area i.e. dandruff

conscious market segment with the launch of only new variant i.e. Sunsilk

antidandruff white. They have added conditioner in it as initially the

conditioner was missing in all shampoos of Sunsilk. While it is available

in competing brands of P&G.

23
Other than these two strategies another very important strategy is being

followed by tge Lever Brothers Pakistan Limited i.e. focusing on core

brands or want to have a very focused on brand portfolio in which they

wanted to get rid of the slow moving brands like in Surf you will get

number of further variants like Surf Ultra, Surf Micro, Power Surf etc. and

in Sunsilk number of variants, Black, Green, Pink, etc. to name a few and

how they have curtailed all these slow moving brands like focusing

attention to Surf Excel only and in case of Sunsilk Black and White

(antidandruff) and discarding slow moving items like Sunsilk Pink and

Green etc.

So, to avoid cannibalization effect now instead of number of brands to

flood in the market only few better and improved brands, cash generating

and more focused towards customers.

Operational Level Strategy

At operational level, Lever Brothers Pakistan Limited has always adopted

the strategy of TQM only never went for CPR i.e. they have not come up

with a new brand in last few years. Only the improvements or new variants

in existing brands or using the same old brand name to introduce a new

product like Lifebuoy Shampoo or Fair & Lovely Soap. So it can easily be

said that they believe more in adopting changes rather generative ones or

go for single loop learning only because according to them its very

expensive to introduce a new brand name.

 Strategy Evaluation

24
Now after outlining the objectives and discussing the strategies we can

now evaluate these strategies that whether they are in harmony with the

objectives of Lever Brothers Pakistan Limited or not. And then we will

evaluate these strategies on three types of evaluation criterion.

Now as against the objectives, if we go through all the strategies being

mentioned earlier, then we can see that all strategies are true reflection of

the objectives being targeted by Lever Brothers Pakistan Limited. As an

objective of consumer connectivity, responsive supply chain getting on

line computer network with suppliers and more stronger R&D department

and the objective of cost efficiency is supported by the vertical

diversification in an sense that how they are outsourcing production and

going for sub contracting with their suppliers and having more responsive

and cost effective supply chain and to achieve growth more focused

strategy in case of reduction of brands, etc. So these strategies are true

measures to achieve those objectives. But other than objectives there is

some other criterion which each strategy has to fulfill to be of any worth

and that criteria is as follows: its basically three types of evaluation

criterion i.e.

1.            Suitability

2.            Acceptability

3.            Feasibility

25
Suitability

Suitability is a broad assessment of whether the strategy addresses the

circumstances in which the organization is operating. For example, the

extent to which the strategy would fit with the future trends / changes in

the environment or how the strategy might exploit the core competencies

of the organization. Now if we evaluate the strategy of Lever Brothers

Pakistan Limited on these factors that whether the strategies fit with its

existing circumstances would able to compete with the future trends like

the strategy of cost reduction and focused brands and outsourcing

production and consumer connectivity and more responsive value chain.

All these strategies are not only suitable to the present condition but are

prerequisite for future success as well i.e. by outsourcing production more

focus towards customer needs and wants would be provided and it would

help Lever Brothers Pakistan Limited to achieve even higher customer

satisfaction level and market share and not only that lowering the cost

would not only be beneficial for Lever Brothers Pakistan Limited but for

consumers as well i.e. now they would receive better quality at relatively

lower cost and Lever Brothers Pakistan Limited would be able to provide

superior products quality and value to customers. Now a days, success lies

at cost reduction and superior quality which the Lever Brothers Pakistan

Limited has successfully opted for. Other than this, next factor is that

whether strategy can exploit the core competencies of the organization or

not. The answer is very simple that by reducing operational complexity

and brands complexity more resources would be available to focus more

on the quality of the products as compared to the previous situation. So on

26
the basis of these factors it can easily be said that the strategies being

implemented are very suitable to Lever Brothers Pakistan Limited.

Acceptability

Acceptability of strategy is concerned with the expected performance

outcomes such as the returns and risk if the strategies are implemented and

the extent to which it would be in line with the expectations of the

stakeholders.

In case of returns, its pretty much assured that returns would definitely be

enhanced when the cost would decrease and strategies would result in

better quality products. But the elements of risk is there which could be

quite significant in the case of subcontracting, whether the suppliers would

be able to meet the quality standards or not. And as we inquired it from the

branch manager of Lever Brothers Pakistan Limited, he said, that we have

very strong quality control system and moreover we are entering into

strategic partnership with our suppliers so to maintain quality is in their

favor too and they would be beneficial from the better quality as well and

it would not increase the cost in case of maintaining control over the

suppliers as its partnership more as compared to only placing and

receiving order we will work for mutual benefits and complete harmony

which we already have.

27
As far as the stakeholders are concerned first and foremost effect would be

on the employees as the production is out-sourced so they would definitely

feared the unemployment but they said that we will arrange it with our

suppliers and will try to accommodate them as much as possible and in

case of shareholders, they would receive benefits of this strategy and

would receive higher returns on their investments and they would be able

to maximize their earnings and in other stakeholders suppliers would now

play more important role by entering into strategic partnership with the

organization. Consumers receive more attention now and would get more

satisfaction as more and more products would be developed on the basis of

the targets being set by the consumers. So after analyzing these factors it

can easily be said that strategies being pursued by Lever Brothers Pakistan

Limited has higher returns and lesser risks and more benevolent to

stakeholders as well.

Feasibility

Feasibility is concerned with whether the strategy could be made to work

in practice or not. And its more concerned with the assessment of

practicalities of resourcing and strategic capabilities i.e. quantitative

assessment, which is beyond the scope of this report, so, as an overview,

all strategies seems feasible and some of them has already been

implemented as well like the reduction in brands etc. So assessing;

Is this a good strategy?

Is the positioning viable?

28
Does it improve value?

Does it exploits core competencies?

Will it lead to good financial performance?

All these factors seems work in favor of Lever Brothers Pakistan Limited

after analyzing the strategies of Lever Brothers Pakistan Limited.

29
 Chapter*4

Analysis*of Shah Hygenic Products Pvt Limited

4.1 SWOT Analysis

Strengths:

 Customer’s Loyalty.

 Latest state of the art facilities and technology for producing high

quality products.

 International brand strength.

 Committed to business ethics, safety, health, environment and

community.

 SHAH HYGENIC PRODUCTS PVT LIMITED’s key competitive

advantage over other market participants is the retail reach of the

company. SHAH HYGENIC PRODUCTS PVT LIMITED services

500,000 outlets with 50 % through direct distribution and

remaining via wholesalers.

30
  SHAH HYGENIC PRODUCTS PVT LIMITED is enjoying

market edge of 41% in FMCG industry. SHAH HYGENIC

PRODUCTS PVT LIMITED is at number one in ice cream

segment and having 14% market share all over the globe.

Weaknesses:

 The biggest challenge in safeguarding market position is to become

cost leader.

 Operational complexity due to a large number of products in

portfolio and due to diverse work force.

 Strategic alliance with other small mills for manufacturing purpose

is the weakness as well as a threat for SHAH HYGENIC

PRODUCTS PVT LIMITED. Although SHAH HYGENIC

PRODUCTS PVT LIMITED claims that it is a part of its cost

reduction strategy but it can not hide the reality that it shows

weakness of SHAH HYGENIC PRODUCTS PVT LIMITED.

Opportunities:

31
  Markets of developing countries can be proved a profitable

segment because people are consumption oriented rather than

saving or investment oriented.

 SHAH HYGENIC PRODUCTS PVT LIMITED can gear up its

market share in the untapped rural market.

 Diversification in unrelated business.

 Rapid increase in world population. World population is set to

grow by 800m in 2010 and almost all increase will be in

developing countries.

Threats:

 FMCG market is highly responsive to economic conditions,

inflation and social disruptions resulting in variations in sales

revenues and demand for the company.

 P & G is the major competitor and threat for SHAH HYGENIC

PRODUCTS PVT LIMITED. Other organized players are Nestle

and R & B.

 SHAH HYGENIC PRODUCTS PVT LIMITED is facing intense

competition from unorganized players i.e. cheaper smuggled

products and Chinese products. According to industry source, 40%

32
 of tea consumed locally and a large portion of HPC products are

smuggled into the country.

 Legal, political and regulatory factors of host country. For

example, supportive Government policies for attracting FDI, 1%

tax rate on corporate profit and inability of Pakistan Government to

control smuggled products etc.

 Although SHAH HYGENIC PRODUCTS PVT LIMITED has a

first mover advantage in ice cream segment but Engro has

announced to enter in ice cream segment and is considering a big

rival post CY2010.

 Rapid increase in raw material cost and supply disruptions from

suppliers of raw material. The unprecedented surge in palm oil,

tallow prices and other materials has resulted in declining margins.

Going forward, high raw material costs are a key risk to SHAH

HYGENIC PRODUCTS PVT LIMITED’s profitability.

4.2 EFE Matrix

Weighted
Key External Factors Weight Ratings
Score
OPPORTUNITIES
Market of developing countries due to more
1. 0.15 4 0.60
tendency towards consumption
2. Rapid increase in world’s population. 0.15 3 0.45

33
3. Unrelated diversification. 0.10 1 0.10
4. Rural area. 0.05 4 0.20
5. Hygiene Consciousness 0.10 2 0.20
THREATS
1. Competition from organized players, P & G 0.15 4 0.60
2. Inflation Rate 0.08 2 0.16
3. Smuggled products and local competition. 0.07 2 0.14
Legal, political and regulatory factors of host
4. 0.05 2 0.10
country.
5. Rapid increase in raw material cost. 0.10 4 0.40
Total Weighted Score 1.0 2.95

Ratings:
1 – Poor 3 – Above Average
2 – Below Average 4 – Superior

Total weighted score of EFE matrix of SHAH HYGENIC PRODUCTS

PVT LIMITED (2.95) shows strong response of company towards external

factors.

Justification of ratings:

On opportunity side:

1. It is a general observation that people of developing countries like

Pakistan are more inclined towards consumption rather than saving

and the major portion of spending is on FMCG.

2. World population is increasing at an alarming rate. World

population is set to grow by 800m in 2010 and almost all increase

will be in developing countries. And increase in population leads to

increase demand of FMCG sector.

34
 3. Like Engro, SHAH HYGENIC PRODUCTS PVT LIMITED can

enter in unrelated areas of production.

4. The under penetrated rural market offers tremendous growth

potential as rural population constitutes around 60% of the total

population. In the past few years, favorable structural changes,

such as double digit growth in agricultural credit, increased

penetration of television cable media have boosted demand for

FMCG products. Following table shows that rural population will

be almost 50% of total population in near future.

% of total
1990 1995 2005 2010 2015E
population
Rural 31.9 34.3 37.0 43.3 47
Urban 68.1 65.7 63.0 56.7 53
Total (mn) 109.4 123.6 159.2 179.6 202.2

On threats side:

1. P & G with 50% market share is a big threat for SHAH HYGENIC

PRODUCTS PVT LIMITED. Nestle with roundly 30% market

share is also posing a threat in near future. Engro is planning to

enter in ice cream market and a future rival in ice cream as well.

2. Rapid increase in inflation rate can increase the prices of products

and hence can reduce demand.

35
 3. Smuggled products swallow a big part of profits of SHAH

HYGENIC PRODUCTS PVT LIMITED every year. Almost 40%

tea and 29% shampoo used in Pakistan is smuggled from

Afghanistan and China.

4. Economic system of host country and rapid increase in raw

material cost are last two major threats for SHAH HYGENIC

PRODUCTS PVT LIMITED.

4.3 IFE Matrix

Weighted
Key Internal Factors Weight Ratings
Score
STRENGTHS
1. Customer’s Loyalty. 0.15 4 0.60
2. Micro level retail outlets 0.10 4 0.40
3. Latest state of the art facilities and technology. 0.10 4 0.40
4. International brand strength. 0.08 3 0.24
5. Market share of 41% 0.12 3 0.36
Committed to business ethics, safety, health,

6. environment and community. 0.10 3 0.30

WEAKNESSES
1. Strategic Alliance 0.15 1 0.15
2. Costly Products. 0.15 2 0.30
3. Operational Complexity. 0.05 1 0.05
Total Weighted Score 1.0 2.80

The score 2.80 shows that company has solid internal position, its

strengths are overcoming the weaknesses.

36
 Ratings:
1 – Major Weakness 3 – Minor Strength
2 – Minor Weakness 4 – Major Strength

Justification of ratings:

On strength side:

1. Customer’s loyalty is not a hidden fact in SHAH HYGENIC

PRODUCTS PVT LIMITED case. People have developed and

adopted the taste of SHAH HYGENIC PRODUCTS PVT

LIMITED’s high quality products and there is no comprise on

quality. 150 million times a day, in 150 countries, people use

SHAH HYGENIC PRODUCTS PVT LIMITED’s products at key

moments of their day.

2. Micro marketing in developing countries. SHAH HYGENIC

PRODUCTS PVT LIMITED services 500,000 outlets with 50 %

through direct distribution and remaining via wholesalers.

3. SHAH HYGENIC PRODUCTS PVT LIMITED’s continuous

expansion and its large market share indicate their strength in latest

facilities and quality management. SHAH HYGENIC PRODUCTS

PVT LIMITED has ISO certification.

37
 4. Its brands are enjoying international recognition. SHAH

HYGENIC PRODUCTS PVT LIMITED is serving almost 150

countries.

5. SHAH HYGENIC PRODUCTS PVT LIMITED is concerned

about its customers as well as employee. There are strict safety

standards for employees and visitors of plants too.

On weakness side:

1. Although SHAH HYGENIC PRODUCTS PVT LIMITED claims

that strategic alliance with small firms for manufacturing purpose

is the part of its reducing cost objective but if we look at the other

side of the picture, strategic alliance is a weakness as well as threat

for SHAH HYGENIC PRODUCTS PVT LIMITED. For example,

Asad Soap Factory is manufacturing soap for SHAH HYGENIC

PRODUCTS PVT LIMITED Rahim Yar Khan, and now Asad

soap factory is searching for buyers of soap plant.

2. SHAH HYGENIC PRODUCTS PVT LIMITED’s products are

costly as compare to local producers. Although costly goods are

not posing any big threat to SHAH HYGENIC PRODUCTS PVT

LIMITED but in long run it can be proved harmful for company.

38
 So company is responding greatly towards covering its weakness.

For this purpose, company has adopted policy of contractual hiring,

strategic alliance etc.

3. SHAH HYGENIC PRODUCTS PVT LIMITED has a large

number of products in its portfolio. It means that SHAH

HYGENIC PRODUCTS PVT LIMITED has a large number of

SBU’s to control. It adds operational complexity to SHAH

HYGENIC PRODUCTS PVT LIMITED’s operations.

4.4 SWOT or TOWS Matrix

STRENGHTS WEAKNESSES
1. Customer’s Loyalty. 1. Strategic Alliance
2. Micro level retail outlets 2. Costly Products.
3. Latest state of the art
3. Operational Complexity.
facilities and technology.
4. International brand strength.

SWOT / TOWS Matrix

5. Market share of 41%
6. Committed to business ethics,

safety, health, environment and

community.

OPPORTUNITIES S-O Strategies W-O Strategies

1. Developing countries. 1. Discover new markets 4. Market Expansion in rural
2. Rapid increase in world’s (O1,O2,O4,S4,S3) areas (O4, O1, W2)
population.

39
3. Unrelated diversification.

4. Rural area.
2. New quality products
5. Hygiene Consciousness
(O3,O5,S3,S6)
THREATS S-T Strategies
3. Unrelated diversification W-T Strategies
1. Competition from organized

players, P & G 5. Vertical Integration 6. Increase in manufacturing

2. Inflation Rate (T1,T3,S2,S4) capacity. (W1, T1).
3. Smuggled products and local

competition.
4. Legal, political and 7. Cost leadership(W2,T5)

regulatory factors of host

country.
5. Rapid increase in raw

material cost.

Proposed Strategies:

1. SHAH HYGENIC PRODUCTS PVT LIMITED can capture

untapped rural markets and markets of developing nations by using

its state of the art facilities & technology. International brand

strength is plus point which will be proved helpful while

positioning.

2. SHAH HYGENIC PRODUCTS PVT LIMITED’s Commitment to

business ethics, safety, health, environment and community can be

proved helpful in order to satisfy hygiene conscious customers. SHAH

40
 HYGENIC PRODUCTS PVT LIMITED should focus more on quality of

goods.

3. Unrelated diversification is a risky decision to be taken. Loyal

customer is the major power to cope up with after effects of this

decision.

4. Customers in rural areas and in developing countries usually have

low income level. SHAH HYGENIC PRODUCTS PVT LIMITED

should reduce its costs in order to capture that uncovered markets

effectively.

5. SHAH HYGENIC PRODUCTS PVT LIMITED can use its

international brand strength and wide network of retail outlets in

order to compete with organized and unorganized players of

market.

6. Strategic alliance is showing the weakness of SHAH HYGENIC

PRODUCTS PVT LIMITED in particularly manufacturing area

which the competitors do not hold. SHAH HYGENIC

PRODUCTS PVT LIMITED should its production capacity in

order to compete in market and to reduce competitor’s threat.

7. If SHAH HYGENIC PRODUCTS PVT LIMITED can obtain

cheaper raw material, it can reduce cost of goods manufactured.

41
4.5 Space Matrix

Financial Strength (FS) Ratings

10% increase in net income in 2009 as compare to 2008. +4

Net sales were 15.7% 2009 as compare to 14% in 2008. +3
Total asset turnover is 3.2times in 2009 as compare to 3.1 times in
+2
2008.
ROI has declined from 87% to 86% in 2009. +1
ROA is averaged 27% which is declined to 24% in 2009. +1

Total: +11
Industry Strength (IS)

Consumption Oriented Culture. +4

Rapid increase in raw material cost. +2
Growth potential in rural and developing countries market. +4
Profit potential is reducing due to intense competition especially from
+1
un-organized players.

Total: +11
Competitive Advantages (CA)

Committed to business ethics, safety, health, environment and community. -1

Customer loyalty. -1
Market share of 41%. -2
Control over supplies and distribution. -4
Latest state of the art facilities and technology. -1

Total -9
Environmental Stability (ES)

Demand in the retail industry is price elastic. -3

Smuggled products and local competition. -5
Legal, political and regulatory factors of host country -3
High rate of inflation effects demand. -4
Law and Order Situation -2

Total: -17

42
 4.6 Grand Strategy Matrix

Rapid Market
Growth
Rapid market Growth

Q2 Q1

Weak Competitive Position Strong Competitive Position

Q3 Q4

Slow Market Growth

The grand matrix helps us to determine the strategy that firm must pursue,

based on its competitive position and market growth.

43
 SHAH HYGENIC PRODUCTS PVT LIMITED lies in Q1 which

represents excellent strategic position of company. For these firms,

continued concentration on current market and products is an appropriate

strategy. SHAH HYGENIC PRODUCTS PVT LIMITED has abundant

resources so backward, forward and horizontal integration may also prove

effective.

4.7 QSP Matrix

Market Development Product Development

Attractive Attractive
External Factors Weight Total Total
Score Score
Untapped Rural area. 0.05 4 0.20 --- ---
Market of developing countries. 0.15 3 0.15 --- ---
Rapid increase in world’s 0.15 4 0.60 1 0.15

population.
Hygiene Consciousness 0.10 --- --- 2 0.20
Unrelated diversification. 0.10 --- --- --- ---
Legal, political and regulatory 0.05 4 0.20 1 0.05

factors of host country.

Inflation Rate. 0.08 2 0.16 3 0.24
Competition from P & G 0.15 4 0.60 3 0.45
Raw material cost increased. 0.10 3 0.30 4 0.40
Smuggled products and local 0.07 3 0.21 4 0.28

competition.

Total 1.0 2.42 1.77

Internal Factors
44
Costly Products. 0.15 --- ---- --- ---
Customer’s Loyalty. 0.15 3 0.30 4 0.60
Micro level retail outlets 0.10 4 0.40 1 0.10
Latest state of the art facilities 0.10 3 0.30 3 0.30

and technology.
Market share of 41% 0.12 4 0.48 3 0.36
Committed to business ethics,

safety, health, environment and 0.10 --- --- --- ---

community.
Strategic Alliance 0.15 --- --- --- ---
International brand strength. 0.08 4 0.32 3 0.24
Operational Complexity. 0.05 --- --- --- ---

Total 1.0 1.8 1.6

Grand Total 4.22 3.37

45
4.8 PEST Analysis

PEST analysis is used to assess that what environmental factors affecting

different organization and which of them are more important and how they

affect the organization. It is indicator of political, economical, social and

technological influences on organization.

Political & Legal Factors

As far as the Lever Brothers Pakistan Limited concerns according to them

that political instability have do affect but not particularly Lever Brothers

Pakistan Limited same as it affects any other  organization around and

specially they are in consumer products business which never make them

out of business.

In case of legal factors, any trade policy or import duties is not affecting

particularly Lever Brothers Pakistan Limited. In Pakistan right now

following liberalization policy under SAP by IMF made which they have

to waive off all restrictions and moreover due to huge investment by Lever

Brothers Pakistan Limited no government can afford to create hurdles in

the way of an organization like Lever Brothers Pakistan Limited.

And they don’t have to go for only lobbying or what so ever as not action

of Pakistan government has affected them adversely as such.

46
Economical Factors

Economical factors affect Lever Brothers Pakistan Limited in the same

way as it affect any other organization like current economic situation in

Pakistan and inflation has reduced consumer’s disposable income too,

which in turn has reduced the purchasing power of consumer but affect is

same for every organization and according to them Lever Brothers

Pakistan Limited have edge that they have targeted all possible segments

through their vast product category i.e. the width and length too. So one

way or other they find way to cover it up.

Capital Markets

In other economic factors like “interest rates” and “inflation” has affected

the borrowing ability of organization but Lever Brothers Pakistan Limited

stayed unaffected as a company having business in billions and when in

need of financing no single bank can fulfill the need, they have to make a

consortium to finance Lever Brothers Pakistan Limited and with very good

credit standing and very low risk definitely they get the lowest or justified

interest rate as well.

Socio-Cultural Factors

47
In socio-cultural factors, factors like lifestyle changes and level of

education affects an organization. In case of change in lifestyle, the world

has converted into global town now and people have readily access to

every sort of information and they are becoming more quality conscious.

Now more concerned towards environmental issues now and demand more

social responsibility on the part of organizations now. To cope up with all

these factors now Lever Brothers Pakistan Limited which always

maintained the quality standards needs to work towards other social factors

like social responsibility and environmental concerns like P&G did in its

Arial campaign and image of a society responsible organization.

 Technological Factors

In technological factors comes R&D first and foremost that how much an

organization spending in terms of product improvement or development of

new products or improvement in production process or in the raw material

etc. and what is the trend in the industry as Pakistan is not that big and not

very much innovation seeking as the other developed countries. Yet they

keep on finding new ways of doing things and new things as well they

continuously launched variants in brands etc. and moreover in the market

like Pakistan in product categories of consumer products “rates of

obsolescence” is not very high rather very slow so no great pressure to

launch new products,.

Other than the factors smuggling affects Lever Brothers Pakistan

Limited’s sales very negatively. This issue would be discussed more in

detail in the problem statement.

48
49
 Chapter 5

Recommendation & Conclusion

Marketing And Sales

Poor Marketing

Lever Brothers Pakistan Limited has very poor marketing of their product.

They concentrate only on “Nabila” as their celebrity. They mainly focus

on females for Sunsilk and ignore the rest potential market; males and

kids. In case of Lifebuoy they focus only on males and ignore females and

kids which reduces their market share as compared to P&G’s shampoo

Penteane, Head & Shoulder.

Lever Brothers Pakistan Limited has no strategy to make good relations

with retailers. This element destroys their repute in retailer class they do

prefer P&G and competitor’s shampoo to recommend it to buy and they

give more shelf space to P&G’s shampoos as compared to Lever Brothers

Pakistan Limited’s Sunsilk and Lifebuoy.

Lever Brothers Pakistan Limited has never offered any major incentive,

discount or prize scheme to retailers on its shampoos which the retailers

often demand. Retailers think that prize incentives with product or any

other prize scheme offered to retailers or consumer etc enhance sales.

Lever Brothers Pakistan Limited has never paid any head to it.

50
Services

Lever Brothers Pakistan Limited has good “service” in terms they offer

free samples for the relaunch of Sunsilk, which helps as a primary activity.

A Transition In Value Chain

Lever Brothers Pakistan Limited is now focusing as extended value chain

i.e. they are outsourcing with their suppliers and subcontracting with them

to ensure reliability of raw material.

Before this supplier’s outsourcing they already have connected with their

customers with their strong R&D Department. But one of thing in which

they lag’s in they have centralized long term strategy, formulated on

system and implementation of results of R&D Department research based

on customer connection in very late. 

Hence all the above individual activities (i.e. primary and supportive

activities) contribute to enhance customer values and ultimately improves

firm’s financial performance.

Lever Brothers Pakistan Limited becomes able to incur lower costs which

leads to higher profit margins.

Appropriate strategy for SHAH HYGENIC PRODUCTS PVT LIMITED

is Market Development. SHAH HYGENIC PRODUCTS PVT LIMITED

should remain in the present business and should introduce present

products in new geographical area.

51
Following are necessary factors that must be present while choosing

market development strategy:

 SHAH HYGENIC PRODUCTS PVT LIMITED has its own strong

distribution channel.

 SHAH HYGENIC PRODUCTS PVT LIMITED is very successful

at what it does.

 Untapped rural market and market of developing countries exist for

SHAH HYGENIC PRODUCTS PVT LIMITED to cover.

 SHAH HYGENIC PRODUCTS PVT LIMITED is a strong MNE

in Pakistan. It has abundant resources both financial and human, so

it can easily expand geographically. Here we are not concerned

about expansion of operating activities to new geographical area.

We are particularly concerned about capturing untapped market. It

is up to SHAH HYGENIC PRODUCTS PVT LIMITED whether it

is decided to start operating in new areas too or just introduce

products by using its strong channel of distribution.

 SHAH HYGENIC PRODUCTS PVT LIMITED is operating

globally. It means that FMCG is such an industry which can be

grown globally.

52
 References

 www.ShahHygenic.com

 www.igisecurities.com.pk

53