The Unilever Pakistan Limited

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The selection of the topic from the list of 20 topics was a very difficult task for me because I have no previous exposure of such a task. Firstly I delete those topics that can give me hard time while preparing the project and then I chose the topic that are relevant to my previous exams .The relevant topic selected was evaluation of financial performance over the three year of a company that I have studied in my previous papers like F5 (Performance management),F7 (Financial reporting) and F9 (Financial management).

The difficult task was not ended by just selecting the topic, another task was selecting the company and I like the multinational companies from the bingeing of the professional studies (ACCA). So that I like my country very much so that it is obvious that selecting the company from Pakistan there are just few international company as per my knowledge.

At last I decide to perform my dissertation on Unilever Pakistan Limited from the fast moving consumer goods(FMCG) industry.


The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was established in Pakistan in 1958 and is listed on all local bourses. It manufactures and markets home and personal care products, beverages, ice cream and spreads. Unilever Pakistan is the subsidiary of Oversea Holding Ltd with equity stake of 73%, whereas, Unilever Plc, UK is the ultimate parent company. UPL is the largest multinational FMCG Company operating in Pakistan with turn-over over PRs30bn. The company has prestigious position in its core home & personal care business. In addition to this, Unilever Food, sister concern and a separate entity, produce and markets consumer and commercial food products under the brand names of Rafhan, Knorr, Energile, Glaxose-D and Food solutions. In 2004, ULP divested its vegetable ghee and oil business to Dalda Foods against the consideration of PRs1.4bn.


The company's business segments mainly include Home & Personal care products, beverages and ice cream.

Home and Personal Care

The Home and Personal Care business contains laundry & wide range of cleaning, skin cleansing, skin care, hair care, deodorant, oral care and other personal care products. It is the largest segment, contributing 54% and 76% of the company's total sales and operating profit, respectively. In 2008, this segment posted the growth of 42% supported by volumetric increase and price hike. Laundry, hair care and skin care products registered a double digit growth during the year. Annual turn-over of Home & personal care product has shown a CAGR of 27% in 2004-08.

Key brand in Home & Personal Care

* Surf Excel


* Comfort

* Sunsilk Shampoo

* Clear Shampoo

* Lifebouy Shampoo

* Lux

* Lifebouy

* Fair & Lovely


Beverages, the second largest segment consists of various brands of tea. Beverages share in net sales and operating profit during 2008 was at 32% and 18%, respectively. Net sales of the segment posted a healthy growth of 22% in 2008 to PRs9.6bn. Sharp increase of 24% in Kenyan tea prices as well as depreciation of domestic currency reduced the margins of the segment to 23% in 2008 from 28% in a year earlier. Lipton is the key brand in beverages segment of Unilever Pakistan.

Key Brands in Beverages

* Lipton

* Broke Bond

* Supreme

* Pearl Dust


Food segment of Unilever Pakistan mainly comprises of ice cream under the brand tag of Walls. Moreover, it also includes margarine and spreads products. Domestically, the company captures the leading share in branded ice cream market. In 1997, the company acquired its closed competitor Polka and hence grabbing the dominating position in the market. Ice cream business posted unfavorable performance in 2008 due to cost pressure arising from soaring domestic inflation. The segment recorded operating loss of PRs13mn in 2008 as against the profit of PRs179mn in 2007. Moreover, other products (margarine & spread) also posted the operating loss of PRs38mn as against profit of PRs91mn in the last year. This segment contributes 15% in total net sales of the company.

Key Brands in Food

* Walls ice cream

* Blue Band margarine

* Flora

Holding Company:

Through its wholly owned subsidiary, Unilever Overseas Holdings Limited (UOHL), UK, Unilever PLC, a company incorporated in the United Kingdom, is the holding company, owning 75.07% of the shares in Unilever Pakistan Limited.

Pattern of Shareholding

Share holder's category

Number of share holder

Number of share held

Percentage (%)

Associated Co., Undertakings *




NIT and ICP *




Directors, CEO








Public Sector Co. and Corporation




Banks, DFI, NBFI's




Modarabas and Mutual Funds




Insurance Companies




Others *




Individuals *








The objective of the research is to evaluate the financial and operating performance of any company over a three years period from 1 January 2008 to 31 December 2010. The main aim is to analyse the financial data which is already available to users, comment on the performance of the company on the basis of last three years performance and to analyse what future prospects are of the business of the company. With financial data evaluation, non financial data is also of significant importance. So I will use different models to assess the non financial performance of the company as well. The combined results of financial and non financial performance can present a better picture to investors and other stake holders. And analyse the company's strategy, its scope and the role it has played to achieve success in the industry.

PART 2 - Information gathering and accounting / business techniques


1) Annual Published Financial Reports:




2) Text Books:

As I am the student of ACCA, so I have already studied various topics of financial and non financial performance of the companies. So all the text books of Kaplan Financial Publishers, Get through guides, BPP Publisher and LSBF Notes were of great use in the project. These text books helped me a lot in applying relevant models and calculating and interpreting financial ratios.

3) Internet:

Internet is a sea of information that why it is impossible to prepare report without it. So I enjoyed collecting information from the internet. However, I tried best to remain specific so that I don't deviate from the topic.

4) Databases:

I used the database called It has almost each company's financial statements and relevant data. It also provides financial and profitability ratios, trends and changes in sales and assets over past years.

5) News Papers:

Dawn news

Business Recorder

Daily Jang


Collecting the relevant information is very difficult due to lots of information available but you need to be clear about the kind of information you require due to restricted to the words limit restricted you to write everything.

The main source that I use for collecting the data is internet. Firstly I search about the history of the Unilever Pakistan Ltd on the I download the annual reports of last three years and try to understand the typical term and to interpret them in raw language.


SWOT analysis

SWOT analysisis astrategic planningmethod used to evaluate theStrengths, Weaknesses, Opportunities, andThreats involved in aprojector in abusinessventure. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.

  • Strengths: characteristics of the business or team that give it an advantage over others in the industry.
  • Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
  • Opportunities:externalchances to make greater sales or profits in the environment.
  • Threats:externalelements in the environment that could cause trouble for the business.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

The SWOT analysis is often used inacademiato highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.


PESTEL analysis of the macro-environment

There are many factors in the macro-environment that will effect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between:

* Political factors: These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

* Economic factors:These include interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the "Foundations of Economics" book economic change can have a major impact on a firm's behaviour. For example:

- higher interest rates may deter investment because it costs more to borrow

- a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency

- inflation may provoke higher wage demands from employees and raise costs

- higher national income growth may boost demand for a firm's products

* Social factors:Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. It also means some firms such as Asda have started to recruit older employees to tap into this growing labour pool. The ageing population also has impact on demand: for example, demand for sheltered accommodation and medicines has increased whereas demand for toys is falling.

* Technological factors:new technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products.

* Environmental factors:environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities.

* Legal factors:these are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms' behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation's actions. Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).


Limitation of SWOT analysis:

One major problem with the SWOT analysis is that while it emphasizes the importance of the four elements associated with the organizational and environmental analysis, it does not address how the company can identify the elements for their own company. Many organizational executives may not be able to determine what these elements are, and the SWOT framework provides no guidance. For example, what if a strength identified by the company is not truly a strength? While a company might believe its customer service is strong, they may be unaware of problems with employees or the capabilities of other companies to provide a higher level of customer service. Weaknesses are often easier to determine, but typically after it is too late to create a new strategy to offset them. A company may also have difficulty identifying opportunities. Depending on the organization, what may seem like an opportunity to some, may appear to be a threat to others. Opportunities may be easy to overlook or may be identified long after they can be exploited. Similarly, a company may have difficulty anticipating possible threats in order to effectively avoid them.

While the SWOT framework does not provide managers with the guidance to identify strengths, weaknesses, opportunities, and threats, it does tell managers what questions to ask during the strategy development process, even if it does not provide the answers. Managers know to ask and to determine a strategy that will take advantage of a company's strengths, minimize its weaknesses, exploit opportunities, or neutralize threats.

Some experts argue that making strategic choices for the firm is less important than asking the right questions in choosing the strategy. A company may mistakenly solve a problem by providing the correct answer to the wrong question.

Limitations of ratio analysis:

Most ratios must be compared with past (historic) data of the same company or with its competitors/industry and some time the historic information may not be relevant with current business.

Only numerical figures calculated by ratios do not explain the actual performance of the company unless it is properly interpreted.

Some companies use different accounting policies/estimates than others (e.g. straight line or reducing balance method for depreciation) so comparison between them might not be very realistic or appropriate.

The ratio analysis does not include economic factor (inflation) in their analysis which may distort some of its results.

PART 3 - Results, analysis, conclusions and recommendations






Liquidity Ratios:

Current Ratio




Quick Ratio




Financial Gearing:

Debt to Equity Ratio




Total Debt Ratio




Profitability Ratio:

Gross Profit Margin (%)




PBT to Sales (%)




PAT to Sales (%)




Rate of Return:

PBT Return to Equity (%)




PAT Return to Equity (%)




Interest Cover (times)




Return on average Capital employed (%)





Current Ratio:

The ratio is mainly used to give an idea of the company's ability to pay backits short-term liabilities (debtandpayables)with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under1 suggests that the companywouldbeunable to pay offits obligations if they came due at that point.While thisshows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to accessfinancing- but it is definitely not a good sign.

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turnits product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Becausebusiness operations differ in each industry, itis always more usefultocompare companies within the same industry.

Current ratio of the company seems to be stable over the three year period. However the current assets are not covering the current liabilities completely. The company has current assets of 0.8 for each rupee of current liability. If we look at the break up of current assets it is clear that the closing cash balance of current assets is increased by Rs 1,869,693 which is mainly because of the closing cash balance increase by Rs 1,518,557. However the current ratio is stable over the last two years which shows that the current liabilities are also increasing with the same proportion. Major increase in closing balances of current liabilities is because of increase in closing Creditors, bills payables and accrued liabilities. However the company cash position is quite stable so there is nothing to worry about these payable as the company has enough cash to meet its liabilities.

Quick Ratio:

The quick ratio is more conservative than the current ratio, a more well-known liquidity measure, because itexcludes inventory from current assets.Inventory isexcludedbecausesome companies havedifficulty turning theirinventory into cash. In the event that short-term obligations need to be paid off immediately, there are situationsin whichthecurrent ratio would overestimate a company's short-termfinancialstrength.

Quick ratio of the company is increasing by 0.1 each year. If we compare from the last year quick ratio the company didn't have enough cash at the end of the period that is why the quick ratio was 0.3, however the company has enough cash at the end of 2010 which improves the quick ratio by 0.1. The increase in current assets is mainly because of cash balance while there is only an increase of 231,937 because of stocks.


Debt to Equity Ratio:

A measure of a company's financial leverage calculated by dividingits total liabilitiesbystockholders' equity. It indicates what proportion of equity and debt the company is using tofinanceits assets.

A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatileearningsas a result of the additional interest expense.

If a lot ofdebt isused to finance increasedoperations (high debt to equity), the company could potentially generate more earningsthan it would have without thisoutsidefinancing.If this were to increase earnings by a greater amount than the debt cost (interest), then the shareholders benefit asmoreearnings are being spread among the same amount of shareholders. However, the cost of this debt financing mayoutweigh the return thatthe companygenerates on the debt through investment and business activities and become too much for the company to handle. This can lead to bankruptcy, which would leave shareholders with nothing.

The debt/equity ratio also depends on the industryin which the company operates. For example, capital-intensive industries such as automanufacturing tend to have a debt/equity ratio above 2, while personal computer companies have a debt/equity of under 0.5.

Debt to equity ratio of the company has improved over the three years period. It was 0.6 in 2008 which was reduced to 0.2 in 2009 and then in 2010 it is eliminated completely which shows that there is no debt on the company. It shows that the company is generating enough cash to meet its operational issues as well as to pay off its debts. So all the profits and cash generated is for the equity holders of the company and nothing is due to the third parties as debts.

Total Debt Ratio:

A ratio that indicates what proportion of debt a company has relative to itsassets.The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load.

A debt ratio of greater than1 indicates that a company has more debt than assets, meanwhile, a debt ratio of less than 1 indicates thata company has more assets than debt. Used in conjunction with other measures offinancialhealth, the debt ratio can help investors determine a company's level of risk.

Total debt ratio is also reduced significantly. There is only a small portion of debt due which is almost negligible. It was 0.3 in 2008 which was reduced to 0.1 in 2009 and in 2010 it is further reduced to 0.02 times.



Revenue - Cost of Goods Sold


Gross Profit Margin %:

Indicates what the company's pricing policy is and what the true mark-up margins are.The gross margin is not an exact estimate of the company's pricing strategy but it does give a good indication offinancialhealth. Without an adequate gross margin, a company will be unable to pay its operating and other expenses and build for the future.

Gross profit margin is decreased by 2%. In 2008 and 2009 it was stable at 35%. However in 2010 it is reduced by 2% and moved to 33%. Although sales are increased by almost 17% but Cost of sales are increased at rate of 21% which is not consistent with the percentage increase in sales. So Cost of sales of the company is increased. This increase is due to the increase in consumption of Rae and packaging materials. Increase in consumption is Rs 5,039,836 which is equal to the 20% of the total increase in cost of sales. It is probably because of the increase in the prices of raw materials. The remaining increase is because of the increase in salaries and wages of the staff and employees.

PBT to sales %:

Profit before Tax to sales ratio of the company is 11 % in 2010 as compare to 12% of 2009 and 9% of 2008. The company's administrative and other operating expenses are well managed as these are not increasing with the same percentage as sales are. Sales are increased by 17% but these expenses are not increased with the same percentage which resulted in only 1% decrease in the PBT of the company instead of increased cost of sales. The company has also spent 90,000 in restructuring cost which is almost 2% of the last year PBT and there was no restructuring cost during last two years. So over all administration and operational expenses of the company are well managed.


PBT Return to Equity %:

Company's return on capital employed (Profit before tax) is quite steady over the three years period. It increased to 137% in 2009 but then returned to 134% in 2010. However this rate of return is considered to be very healthy as compared to the Fast Moving Consumer Goods industry.

PAT Return to Equity %:

Just like Return on capital employed (Profit before tax), the return on equity after tax has also remained stable over the three years period. This shows that company is earning returns at a steady rate of its capital employed. Also the rate of tax has not changed over the given period. So on average return on capital employed after tax has increased by 1%.

Return on Capital Employed:

A ratio that indicates the efficiency and profitability of a company's capitalinvestments.

Calculated as:


Capital employed

ROCE should always be higher than the rateat whichthe company borrows, otherwise any increase in borrowing will reduce shareholders'earnings.

A variation of this ratio is return on average capital employed (ROACE), which takes the average of opening and closing capital employed for the time period.

Return on average capital employed has dramatically increased over the three years period as the company has paid off its all long term debts increasing its return on capital employed by almost by 30% in three year period. It also shows that company is utilizing its resources in the most efficient manner.




Situation Analysis



Well-established brand name and image

Unilever being one of the well- established brands all over the world has a number of attributes, which result in its strengths. Unilever didn't start out as a market leader and did not have an advantage of it being the market leader in the category of the consumer goods. Starting off just as P&G did in its beginning; Unilever's founding companies produced products made of oils and fats, which were principally soap and margarine. The concept in the early age of production and selling was to produce standardized products and to mass market them. This worked really well in the early 20th Century and took the market at large. At that time most of the companies were doing this strategy and were profiting for producing a product, which was standardized.

Then throughout the years the company evolved and started to expand its product lines and started to penetrate in different markets of the world, which lead to its high brand awareness and recognition in different countries. Hence, now, in the current time, Unilever is considered to be a strong and a very well established brand. The name of the brand has made it possible that whenever the company thinks of introducing a product in any country, the fact that it is already so very well established, makes the company credible. The customers who don't want to associate themselves with any introduction of a new and a changing brand would then be inclined in buying a product of this company. Thus the name, that the company has established for itself is helping it a lot.

Aware of the Consumer Buying Behavior

The products of Unilever have been around for more than a decade, whereas the company prevails under the name of Unilever for more than 70 years. Thus, the Research and Development department of Unilever are aware of the buying behaviors of the customers so well, as they have researched the grandfathers, fathers and the current customers. Hence they know that what were the main causes for a consumer to buy a certain product and how there have been trends in the buying behaviors of house holds. This has lead to the advantage on the behalf of Unilever that they have a whole data base of research which is helping them when they innovate new goods and the competitive they have on the small and relatively new companies.

Vast Distribution Networks

When said that Unilever had acquired and had merged with a number of local companies, it means that a vast distribution network is also being acquired by Unilever. Considering the Pakistani Market Scenario, we saw when Walls a product of Unilever acquired Polka; it also acquired the vast distribution networks that Polka already had. As when you enter in a new market, it is a tremendously hard job to get your product in different parts where different customers of different needs are located. Thus the distribution channel of Unilever owes its success to the local industry, which it has acquired or merged with.

Other Strengths :

Achieving economies of scale.

Good will in the market.

Strong and stable financial position.

Strong and healthy relationships with distributors and consumers.

Management of product is familiar with the psychographics and demographic of

the consumers.


When we say that organizations are like individuals, we mean that there are weaknesses in organizations just like those of individuals. There are some features of Unilever which attribute to its weaknesses:

Confusion in their products

A major confusion occurs in the brands of Unilever is that they are producing brands like Lipton and Brookbond which are the producers of tea against each other. These brands even though are marketing in a separate kind of market; still there is confusion amongst the consumers that the brands of Lipton and Brookbond are competitors of each other. Also that buying a Lipton brand makes them believe that they have a better image as compared to those who are buying a Brookbond product.

Brands have swallowed up the Parent Company Name

It is seen that brands like Lipton, Sunsilk, Surf Excel and Wall's etc have swallowed up the parent company name. In this scenario the consumers know about the product lines and less about the main company. Lipton and Surf Excel have become such big names that Unilever the name itself is having some problem with the subsidiary brands. This seems to be some what of a problem from Unilever's point of view.

Operational complexity

A large number of products in portfolio and due to diverse work force.

Other weaknesses:

Strong competition.

Substitute products.


If we look at the external environment of Unilever, we will find out that there are a lot of opportunities available for it. Some of them are as follows:


As world entered the 21st century, everyone became extremely dependent upon the information age. With the changing trends of use of high-tech systems for everything, it can be great opportunity for Unilever to establish itself online. It can make efficient internet marketing campaigns or even launch online delivery service for their products at the consumer door step.(Like Asda uk)

Promoting special events of every culture:

Unilever is focusing on the events and cultural aspect of every country in its own way. For example in countries like USA or UK, they make special marketing campaigns for events like Valentine's Day and Halloween. Whereas if we look Unilever Pakistan, they don't give that much importance to Valentine's day but their one of the most leading brand Lipton is the biggest sponsor for the Basant festival in Lahore.

Launch of nutritious food items:

With the changing trends of the world, people are becoming more health conscious. They prefer food that will give them maximum nutrition and less calories. In the present scenario, the Food items offered by Unilever are mostly fattening food like Walls ice cream and Knorr Noodles. They can also come up with diet ice creams in South Asia, which would help their sales to jump up. They should diversify themselves in food category and should introduce more of healthy food products. Unilever is already a partner with the world's leading agencies and institutions of food and health sector.

Target the youth of world:

Most of the Unilever's products are targeted upon families and middle aged people. They should focus upon the youth segment as well. They should introduce products that specifically focus on the youth, that way the company will gain popularity in that segment as well which can provide a lot of profit opportunities for the company. Products like P&G's Pringles, which as taken over the world for its top class taste, should be one of the focuses of Unilever too. Making and focusing on products like this would yield more profits and enhance their customer base.


The local companies:

The biggest threats for Unilever in every region are the small local companies who are emerging into the market with the introduction of similar product like as of Unilever's.

Price wars:

Due to the unstable economy of many counties and very less difference between Unilever's and its competitor's products, the main thing to compete upon is the price. Unilever is unable to keep its stable pricing due to the immense competition and high level of price war.

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 UNILEVER's profitability.

Low brand recognition for company:

Unilever's biggest advantage is sometimes considered as the biggest threat to it, i.e. the fact that it has a huge product line and category. From health care to food products, from shampoos to beverages, it is diversified in every category of products. Due to this fact, there is a very little recognition to the company's brand name itself. People are more familiar to Lipton or Close up instead of Unilever itself. Nobody calls them Unilever's Lipton or Unilever's Close up. Due to so much diversity, the company has lost its own identity.


P & G is the major competitor and threat for UNILEVER. Other organized players are Nestlé and R & B. Although UNILEVER 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.


1) Political factors:

No doubt, the performance of the companies is affected by the overall political situation of the company. If the political situation of the country is not well then it adversely affects the overall economy. No foreign investors are willing to invest in the company and so as the local investors. Over the last three years the political situation of the country is not at its best. However it remained better than before when the country was controlled by the army and all the political parties were trying to create a democratic government. Although during last three years one political party survived but still the political situation of the country is not very stable as we have often heard the news of important political personalities being murdered. All these factors do affect all the businesses adversely.

2) Economic factors:

Economic factors are considered to be one of the most important factors in the business industry. As all the businesses are affected by different economic conditions for sure. Economic factors include exchange rate fluctuations, inflation and ups and downs in the stock market.

3) Social factors:

Each year around 3.5 million children in the world under the age of 5 die from diarrheal diseases and acute respiratory infections, such as pneumonia. Hand-washing with soap is the single most cost-effective way to prevent diarrheal deaths and diseases.For this reason Lifebuoy has embarked on a mission! The mission is to bring safety, security and health to 170 million Pakistanis through the active promotion of hand-washing.While Lifebuoy products provide accessible hygiene, as the world's number 1 selling germ protection soap, we know there is more that we can do. For this reason, the brand aims to make a difference in peoples' day-to-day lives by helping to promote health & hygiene, and in particular encourage people to wash their hands with soap.

Lifebuoy social mission programmes aim to spread positive hygiene messages through hygiene education activities.Keeping this mission in perspective.

( )

Unilever, the global leader in consumer products, has committed € 1 million (US$ 1.28 million, Rs. 113 million) towards flood relief and rehabilitation in Pakistan. This will be channelled through five leading NGOs - World Food Programme, Unicef, Oxfam, Save the Children Fund and Population Services International - which are actively engaged in relief activities in the flood affected areas. Unilever's contributions will be in cash and products from its portfolio of soap, detergents, toothpaste, shampoo, tea, glucose drinks and food items.

In Pakistan majority of the individuals are middle class and they want to prefer the products of good quality at the minimum possible price. As Uniliver is one of the companies who have managed to create different brands of the same products fulfilling the same purpose, providing the products in all ranges. So the company understands the social situation of the country well and is able to survive even in the hard periods.

4) Technological factors:

Only those companies survive in the market which keeps pace with the modern technological world. All the companies who do not pay much attention to advancement in technology fail to maintain their position in the market.

5) Environmental factors:

Social environment always has a major impact on any company's performance. Majority of the Pakistani population is brand conscious and they prefer those products which they have already utilized than the new ones. Unilever has established its brand image in the eyes of the customers, so majority of customers prefer to use its products than going for new ones. Also the products of Unilever are as per the needs of the environment of the country. Like tea is considered to be the most commonly used hot drink in hilly areas of Pakistan as the weather is quite cold in those areas.

6) Legal factors:

All the companies must have to comply with the laws and regulations applicable. So if the industry has to face strict legal and regulatory requirements then it is difficult for the companies of that particular industry to survive without incurring legal costs. As the company is engage in the production of food items and drinks so the laws and regulations are definitely more strict as no company can take risk at the lives of their customers. For example “CONSUMER LAWS IN PAKISTAN” (


Unilever is the world's leading multinational company. Since many decades it has been associated with providing high quality, customer and consumer focused products. Unilever develoups good will and brand recognition by providing product that satisfy and fulfil the needs of consumer .Unilever will be successful in the upcoming years due to stable financial position and capturing high market share.


Unilever, Pakistan realizes the huge potential of the rural markets, i.e. 72% of the total population, but has not yet developed a successful strategy to penetrate this market. The success of Unilevers should be emulated, which has successfully captured the rural market by two key strategies; firstly, by developing a strong distribution infrastructure and secondly, by adapting the packaging and pricing to this market.

Unilever should increase the buying of raw materials from local markets so that it does not have to suffer excessively from devaluation and continuous increase in tariff rates. This would also negate the adverse affect on sales volume due to smuggled foreign product.

Unilever should introduce a smaller (50 ml) pack of Sunsilk shampoo in order to capture the lower income segment.

Unilever should enter into WEB Marketing.

Unilevers could also provide consumers with a hot line number where they can call into complain or to ask specific questions about Unilever's products. These hot line numbers can also advise consumers about their hair type and other hair related queries. Such a strategy would highlight Unilevers concern for the public as well as helping it to gain market share.

They should introduce 2 in 1 composition, i.e. shampoo plus conditioner which is the demand of a huge potential market.