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Unilever matrix analysis

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Raja Saqib
Raja Saqib

Unilever Pakistan is one of the largest consumer goods companies operating in Pakistan. It was established in 1958 as Lever Brothers Pakistan and is now the largest fast moving consumer goods company in the country. The document discusses Unilever's mission, vision, internal strengths and weaknesses, external opportunities and threats. It analyzes the company using various strategic management tools like BCG matrix, SWOT analysis, IFE/EFE matrix, SPACE matrix, and QSPM to evaluate different strategic options for the company such as market development, integration, and more.

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Presented By RAJA SAQIB NAVEED
INTRODUCTION •Lever brothers is established by William H. Lever in 1890 •Key player in food & household product industry •It is one of the largest consumer goods companies in the world •Its brands are on sale in 190 countries •Unilever Pakistan formerly Lever Brothers established in Pakistan in 1958 •Largest FMCG company now operating at different locations in Pakistan
MISSION STATEMENT • Unilever'smissionistoaddVitalitytolifeWe meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life VISION STATEMENT To make sustainable living commonplace. We believe this is the best long-term way for our business to grow.
MATRIX INPUT STAGE: Internal analysis External analysis CPM MATCHING STAGE BCG matrix SPACE matrix IE Matrix / EFE Matrix SWOT DECISION STAGE: QSPM
INPUT STAGE INTERNAL STRENGTHS:  Largest Producer o Unilever 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.  Advance technology o Unilever Pakistan Limited is the only company in Pakistan which has its own corner research department  Supply Chain Management o It has the largest and efficient distribution network then any its competition  Financial Backing o The company is very strong financially  Experience Top Management o Unilever Pakistan Limited enjoys the services of highly professional management in the area of sales, marketing, technical and production INTERNAL WEAKNESSES  Tall OrganizationStructure o Due to tall structure it is difficult to handle the organization easily.  High Operating Expenses o No doubt its sales are large but in same time its operating expenses are huge.  High Cost ofProduction o As in the production unilever keeps its environment very neat and clean, and produce high quality products so cost of production is very high. Increased • import duties are also adding to the prices of the products  Long term strategies o Unilever 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  Emphasize on only few products o Emphasizing only few products while ignoring others which could give them potential market shares e.g. beverages section
INPUT STAGE External opportunities: Hygiene Consciousness People are becoming more conscious about their health and are becoming more conscious aboutbrands.Asunilever hasgood positioningin consumer’smindso it can increase their market share to launch products in hygienic category. Increasing Population As population is increasing it may lead to create valuable opportunity to enhance the growth of unilever. Innovation (R&D) Innovation in unilever may create opportunity to more penetrate in the market EXTERNAL THREATS:  Product smuggling o unilever Pakistan Limited has not been able to place any check on its smuggling • shampoos into Pakistan e.g. Indonesian Sunsilk is made according to the demographic of Indonesia, when it will be used in Pakistan it will damage the hair of people,which detoriate the brand image and decreases the local sales of Unilever PAKISTAN.  Increase demand for Antibacterial Soaps o Demand for antibacterial soaps is increasing while unilever has not yet been introduced any antibacterial soap,it may switch the brand loyals of Unilever  Counterfeit Products o There may be imitation of products in Pakistan which may damage the goodwill of Unilever Pakistan ltd.  International Trends o People of Pakistan preferto purchase foreign products, it may be prove to be a threat forunilever  Local Competition o Number of local companies producing detergents at low price.
Unilever matrix analysis
MATCHING STAGE
BCGMATRIX
Highgrowthrate&highmarketshare Lux Sunsilk Wall’s Fair&lovely Rafhan Energile High growth rate & low market share Clear shampoo Rin Comfort Low growthrate&highmarketshare Surfexcel Ponds Lipton Closeup Blueband Lifebuoy soap Rexona Low growth rate & low market share Wheel Supreme tea Lifebuoy shampoo BCG
SWOTANALYSIS
s Strong companyimage, Strong brandportfolio, Quantity &variety, Effective & attractivepackaging, Highqualitymanpower, Innovativeaspects, Corporate behavior, Health&personalcareproducts Highprices of products, Substitutesproducts, Lackof controlinthemarket, Dualleadership, Decrease in revenues, Reducedspending forresearch&development New markets, Increase the volume of production, Low incomeconsumers, Help in improving people diet & daily lives • Competitors(P&G, J&Jetc.), Political effects, Legislative effect, Environmental effect, Economiccrises, Increase in production & labor cost
IFE / EFE MATRIX IFE Key Internal Strengths weight rating Weighted score Largest producer 0.1 4 0.4 Advance Technology 0.05 4 0.2 Supply ChainManagement 0.05 3 0.15 Financial Backing 0.2 4 0.8 Experience TopManagement 0.2 3 0.6 Key internal Weaknesses Tall OrganizationStructure 0.1 2 0.2 High Operating Expenses 0.05 2 0.1 High Cost of Production 0.05 2 0.1 Long termstrategies 0.1 2 0.2 Emphasize on only few products 0.1 1 0.1 TOTAL 1.00 2.85 EFE KEY EXTERNAL OPPORTUNITIES WEIGHT RATING WEIGHTED AVEARGE Hygiene Consciousness 0.2 4 0.8 Increasing Population 0.15 3 0.45 Innovation (R&D) 0.10 2 0.2 Product Diversification 0.10 4 0.4 Explore New Markets 0.05 4 0.2 KEY EXTERNAL THREATS Product smuggling 0.15 1 0.15 Increase demand forAntibacterial Soaps 0.05 3 0.15 Counterfeit Products 0.10 3 0.3 International Trends 0.05 3 0.15 Local Competition 0.05 4 0.2 TOTAL 1.00 3.10
SPACE MATRIX
FINANCIAL POSITION RATINGS  10% increase in net income +5  Net sales were 15.7% +4  ROA is declined to 24% +1  ROI has declined +2  Total asset turnover is 2times +3 AVERAGE +3 INDUSTRY POSITION RATINGS  Consumption Oriented Culture. +4  Rapid increase in raw material cost. +2  Growth potential in rural and developing countries market +5 Profit potential is reducing due to intense competition especially from un-organized players +2 AVERAGE +3.25 ENVIRONMENTAL STABILITY RATINGS  Demand in the retail industry is price elastic -3  Smuggled products and local competition. -3  Legal, political and regulatory factors of -2 host country  High rate of inflation effects demand. -3  Law and Order Situation -2 AVERAGE -2.6 COMPETITIVE ADVANTAGE RATINGS  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 AVERAGE -1.8
Unilever matrix analysis
DECISION STAGE:
INTEGRATI ON MARKET DEVELOPMENT KEY FACTORS WEIG HT AS TAS AS TAS STRENGTHS Largest producer 0.1 2 0.20 3 0.30 Advance Technology 0.05 3 0.15 3 0.15 Supply Chain Management 0.05 2 0.10 3 0.15 Financial Backing 0.2 3 0.60 4 0.80 Experience Top Management 0.2 - - 3 0.60 WEAKNESSES Tall Organization Structure 0.1 3 0.30 2 0.20 High Operating Expenses 0.05 2 0.10 3 0.15 High Cost of Production 0.05 - 2 0.10 Long termstrategies 0.1 3 0.30 2 0.15 Emphasize on only few products 0.1 2 0.20 - - OPPORTUNITIES Hygiene Consciousness 0.2 - - 2 0.20 Increasing Population 0.15 2 0.30 2 0.40 Innovation (R&D) 0.10 3 0.30 2 0.20 Product Diversification 0.10 4 0.40 1 0.05 Explore New Markets 0.05 - - 3 0.30 THREATS Product smuggling 0.15 1 0.15 1 0.15 Increase demand for Antibacterial Soaps 0.05 1 0.05 - - Counterfeit Products 0.10 3 0.30 2 0.10 International Trends 0.05 4 0.20 - - Local Competition 0.05 4 0.20 2 0.4 TOTAL 5.8 7.8 QSPM
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Unilever matrix analysis

  • 2. INTRODUCTION •Lever brothers is established by William H. Lever in 1890 •Key player in food & household product industry •It is one of the largest consumer goods companies in the world •Its brands are on sale in 190 countries •Unilever Pakistan formerly Lever Brothers established in Pakistan in 1958 •Largest FMCG company now operating at different locations in Pakistan
  • 3. MISSION STATEMENT • Unilever'smissionistoaddVitalitytolifeWe meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life VISION STATEMENT To make sustainable living commonplace. We believe this is the best long-term way for our business to grow.
  • 4. MATRIX INPUT STAGE: Internal analysis External analysis CPM MATCHING STAGE BCG matrix SPACE matrix IE Matrix / EFE Matrix SWOT DECISION STAGE: QSPM
  • 5. INPUT STAGE INTERNAL STRENGTHS:  Largest Producer o Unilever 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.  Advance technology o Unilever Pakistan Limited is the only company in Pakistan which has its own corner research department  Supply Chain Management o It has the largest and efficient distribution network then any its competition  Financial Backing o The company is very strong financially  Experience Top Management o Unilever Pakistan Limited enjoys the services of highly professional management in the area of sales, marketing, technical and production INTERNAL WEAKNESSES  Tall OrganizationStructure o Due to tall structure it is difficult to handle the organization easily.  High Operating Expenses o No doubt its sales are large but in same time its operating expenses are huge.  High Cost ofProduction o As in the production unilever keeps its environment very neat and clean, and produce high quality products so cost of production is very high. Increased • import duties are also adding to the prices of the products  Long term strategies o Unilever 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  Emphasize on only few products o Emphasizing only few products while ignoring others which could give them potential market shares e.g. beverages section
  • 6. INPUT STAGE External opportunities: Hygiene Consciousness People are becoming more conscious about their health and are becoming more conscious aboutbrands.Asunilever hasgood positioningin consumer’smindso it can increase their market share to launch products in hygienic category. Increasing Population As population is increasing it may lead to create valuable opportunity to enhance the growth of unilever. Innovation (R&D) Innovation in unilever may create opportunity to more penetrate in the market EXTERNAL THREATS:  Product smuggling o unilever Pakistan Limited has not been able to place any check on its smuggling • shampoos into Pakistan e.g. Indonesian Sunsilk is made according to the demographic of Indonesia, when it will be used in Pakistan it will damage the hair of people,which detoriate the brand image and decreases the local sales of Unilever PAKISTAN.  Increase demand for Antibacterial Soaps o Demand for antibacterial soaps is increasing while unilever has not yet been introduced any antibacterial soap,it may switch the brand loyals of Unilever  Counterfeit Products o There may be imitation of products in Pakistan which may damage the goodwill of Unilever Pakistan ltd.  International Trends o People of Pakistan preferto purchase foreign products, it may be prove to be a threat forunilever  Local Competition o Number of local companies producing detergents at low price.
  • 10. Highgrowthrate&highmarketshare Lux Sunsilk Wall’s Fair&lovely Rafhan Energile High growth rate & low market share Clear shampoo Rin Comfort Low growthrate&highmarketshare Surfexcel Ponds Lipton Closeup Blueband Lifebuoy soap Rexona Low growth rate & low market share Wheel Supreme tea Lifebuoy shampoo BCG
  • 12. s Strong companyimage, Strong brandportfolio, Quantity &variety, Effective & attractivepackaging, Highqualitymanpower, Innovativeaspects, Corporate behavior, Health&personalcareproducts Highprices of products, Substitutesproducts, Lackof controlinthemarket, Dualleadership, Decrease in revenues, Reducedspending forresearch&development New markets, Increase the volume of production, Low incomeconsumers, Help in improving people diet & daily lives • Competitors(P&G, J&Jetc.), Political effects, Legislative effect, Environmental effect, Economiccrises, Increase in production & labor cost
  • 13. IFE / EFE MATRIX IFE Key Internal Strengths weight rating Weighted score Largest producer 0.1 4 0.4 Advance Technology 0.05 4 0.2 Supply ChainManagement 0.05 3 0.15 Financial Backing 0.2 4 0.8 Experience TopManagement 0.2 3 0.6 Key internal Weaknesses Tall OrganizationStructure 0.1 2 0.2 High Operating Expenses 0.05 2 0.1 High Cost of Production 0.05 2 0.1 Long termstrategies 0.1 2 0.2 Emphasize on only few products 0.1 1 0.1 TOTAL 1.00 2.85 EFE KEY EXTERNAL OPPORTUNITIES WEIGHT RATING WEIGHTED AVEARGE Hygiene Consciousness 0.2 4 0.8 Increasing Population 0.15 3 0.45 Innovation (R&D) 0.10 2 0.2 Product Diversification 0.10 4 0.4 Explore New Markets 0.05 4 0.2 KEY EXTERNAL THREATS Product smuggling 0.15 1 0.15 Increase demand forAntibacterial Soaps 0.05 3 0.15 Counterfeit Products 0.10 3 0.3 International Trends 0.05 3 0.15 Local Competition 0.05 4 0.2 TOTAL 1.00 3.10
  • 15. FINANCIAL POSITION RATINGS  10% increase in net income +5  Net sales were 15.7% +4  ROA is declined to 24% +1  ROI has declined +2  Total asset turnover is 2times +3 AVERAGE +3 INDUSTRY POSITION RATINGS  Consumption Oriented Culture. +4  Rapid increase in raw material cost. +2  Growth potential in rural and developing countries market +5 Profit potential is reducing due to intense competition especially from un-organized players +2 AVERAGE +3.25 ENVIRONMENTAL STABILITY RATINGS  Demand in the retail industry is price elastic -3  Smuggled products and local competition. -3  Legal, political and regulatory factors of -2 host country  High rate of inflation effects demand. -3  Law and Order Situation -2 AVERAGE -2.6 COMPETITIVE ADVANTAGE RATINGS  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 AVERAGE -1.8
  • 18. INTEGRATI ON MARKET DEVELOPMENT KEY FACTORS WEIG HT AS TAS AS TAS STRENGTHS Largest producer 0.1 2 0.20 3 0.30 Advance Technology 0.05 3 0.15 3 0.15 Supply Chain Management 0.05 2 0.10 3 0.15 Financial Backing 0.2 3 0.60 4 0.80 Experience Top Management 0.2 - - 3 0.60 WEAKNESSES Tall Organization Structure 0.1 3 0.30 2 0.20 High Operating Expenses 0.05 2 0.10 3 0.15 High Cost of Production 0.05 - 2 0.10 Long termstrategies 0.1 3 0.30 2 0.15 Emphasize on only few products 0.1 2 0.20 - - OPPORTUNITIES Hygiene Consciousness 0.2 - - 2 0.20 Increasing Population 0.15 2 0.30 2 0.40 Innovation (R&D) 0.10 3 0.30 2 0.20 Product Diversification 0.10 4 0.40 1 0.05 Explore New Markets 0.05 - - 3 0.30 THREATS Product smuggling 0.15 1 0.15 1 0.15 Increase demand for Antibacterial Soaps 0.05 1 0.05 - - Counterfeit Products 0.10 3 0.30 2 0.10 International Trends 0.05 4 0.20 - - Local Competition 0.05 4 0.20 2 0.4 TOTAL 5.8 7.8 QSPM