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inal Project on Unile'er #rot$ers Pakistan
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,e are pro'iding Projects *or -our business gro+t$ and to meet ne+ c$allenges.
Here are some projects prepared b- our team o* ./e'eloping &e+ Projects. *or t$e
0uarantee o* -our business gro+t$
Ackno+ledgement
1! bo+ m- $ead in gratitude to almig$t- Alla$2 +$o blessed me +it$ t$e abilit- and
energ- to complete t$is +ork3
! +is$ to e4press m- deep sense o* gratitude to m- great and $onorable teac$er Mr.
Abdul ($akoor 5$an 5$ak+ani *or $is *riendl- be$a'ior and $is keen interest. His
kind ad'ises and guidance $elped me t$roug$ out t$e progress o* t$is report. !
+ould like to t$ank all persons *or t$eir contribution and coordination in completion
o* t$is +ork. "$e- pro'ided 'er- bene6cial in*ormation2 +$ic$ increased m-
kno+ledge.

Aut$or
table o* contents
Organi7ation
!ntroduction............................................................................................... 8

Ac9uisition....................................................................................................................
. :
Product
Mi4....................................................................................................................... ;
Home And Personal Care...........................................................................................
;
Personal ,as$ <P,=................................................................................................ ;
abrics And Home Care..............................................................................................
5
abric ,as$...............................................................................................................
5
Home Care.................................................................................................................
5
Personal Product..........................................................................................................
5
Hair Care.....................................................................................................................
5
(kin Care....................................................................................................................
5
/ental Care................................................................................................................
5
Oil And /air- #ased oods.........................................................................................
>
#anaspati....................................................................................................................
>
Cooking Oil.................................................................................................................
>
Margarine....................................................................................................................
>
!ndustrial ats............................................................................................................
>

#e'erages.....................................................................................................................
. >
Lea* "eas....................................................................................................................
>
/ust "eas....................................................................................................................
>
Mi4ture "ea.................................................................................................................
?
!ce Cream....................................................................................................................
?
@ision O* Le'er #rot$ers Pakistan Limited..................................................................
A
Mission (tatement o* Le'er #rot$ers Pakistan Limited.............................................
B
Anal-sis O* Mission (tatement...................................................................................
88
Mission Contents........................................................................................................
88
Organi7ation P$ilosop$-....................................................................................... 88
Organi7ation 5e- @alue......................................................................................... 8C
Critical (uccess actor.......................................................................................... 8:
Concern or /iDerent (take$olders................................................................... 8:
orm And (ources O* Competiti'e Ad'antages................................................ 8:
(cope And "-pes O* Mission................................................................................ 8;
Objecti'es O* Le'er #rot$ers Pakistan Limited And Attainment O* Objecti'es... 8?
Objecti'es o* Le'er #rot$ers Pakistan Limited...................................................... 8?
Attainment O* Objecti'es...........................................................................................
8A
(peci6c.....................................................................................................................
8A
Measurabilit-............................................................................................................
8A
Attainable.................................................................................................................
8B
Reliabilit-..................................................................................................................
8B
"ime rame..............................................................................................................
8B
Attainment O* Objecti'es....................................................................................... 8B
(trategic Management At Le'er #rot$ers Pakistan Limited................................... CC
Corporate Le'el (trateg-...........................................................................................
CC
#usiness Le'el (trateg-............................................................................................
C:
Operational Le'el (trateg-........................................................................................
C5
(trateg-
%'aluation....................................................................................................... C>
(uitabilit-.....................................................................................................................
C>
Acceptabilit-................................................................................................................
C?
easibilit-.....................................................................................................................
CB
(tructural
Anal-sis........................................................................................................ :E
Organi7ational structure and management o* Le'er #rot$ers Pakistan Limited :E
#oard O* /irectors......................................................................................................
:8

Hierarc$-......................................................................................................................
:C
#ranc$ structure.........................................................................................................
:C
(tructural Anal-sis.....................................................................................................
::
"$reat O* &e+ %ntrants......................................................................................... :;
"$reat O* (ubstitutes..............................................................................................
:;
#u-er Po+er............................................................................................................
:;
(upplier Po+er........................................................................................................
:5
Competiti'e Ri'alr-.................................................................................................
:5
(tructure "-pes !n Multinational Companies........................................................ :5
@alue C$ain Anal-sis O* Le'er #rot$ers Pakistan Limited.................................... :A
%4planation O* @alue C$ain....................................................................................
:A
(upporti'e Acti'ities...................................................................................................
;E
irm !n*rastructure...................................................................................................
;E
Human Resource Management........................................................................... ;C
"ec$nological /e'elopment................................................................................. ;:
Procurement............................................................................................................
;;
Primar- Acti'ities O* @alue C$ain O* Le'er #rot$ers Pakistan Limited............ ;;
!nbound Logistics O* @alue C$ain O* Le'er #rot$ers Pakistan Limited....... ;;
Operations...................................................................................................................
;5
Out #ound Logistics...................................................................................................
;5
Marketing And (ales..................................................................................................
;>
8. Poor Marketing..................................................................................................
;>
(er'ices....................................................................................................................
;?
A "ransition !n @alue C$ain.....................................................................................
;?
(,O"
Anal-sis.............................................................................................................. ;A

(trengt$s......................................................................................................................
;A
,eaknesses................................................................................................................
;B
Opportunities...............................................................................................................
5E

"$reats.........................................................................................................................
. 58
P%("
Anal-sis............................................................................................................... 5:
Political F Legal actors............................................................................................
5:
%conomical actors....................................................................................................
5:
Capital Markets........................................................................................................
5;
(ocioGCultural actors...............................................................................................
5;
"ec$nological actors...............................................................................................
55
Problem
(tatement........................................................................................................ 5>
Problems......................................................................................................................
5>
!nternal problems....................................................................................................
5>
%4ternal problems...................................................................................................
5B
!ntroduction O* (unsilk And Li*ebuo-........................................................................
>E
(unsilk ($ampoo.......................................................................................................
>E
Li*ebuo- ($ampoo.....................................................................................................
>8
(,O" Anal-sis O* ($ampoo Product Line.............................................................. >C

(trengt$s......................................................................................................................
>C
,eaknesses................................................................................................................
>C
Opportunities...............................................................................................................
>:

"$reats.........................................................................................................................
. >;
CompetitorsH
Anal-sis................................................................................................... >5
/irect Competitors......................................................................................................
>5
Upper Class.............................................................................................................
>5
Middle Class............................................................................................................
>5
(ales Anal-sis............................................................................................................
>?
Pentene O* PF0..................................................................................................... >?
(unsilk O* Le'er #rot$ers Pakistan Limited....................................................... >?
!ndirect Competitors...................................................................................................
>?
!mported ($ampoos................................................................................................
>A
#randed (oaps........................................................................................................
>A
Unbranded ($ampoos F (oaps.......................................................................... >A
(trengt$s And ,eaknesses O* Competitors............................................................
?E
(trengt$s O* PF0.......................................................................................................
?E
,eaknesses................................................................................................................
?8
%4isting (trategies O* (unsilk.....................................................................................
?C
Product (trateg-.........................................................................................................
?C
Pricing (trateg-...........................................................................................................
?C
Promotion (trateg-.....................................................................................................
?:
Placing (trateg-..........................................................................................................
?:
(uggested (trategies.................................................................................................
?:
Product (trategies...................................................................................................
?:
Pricing (trategies....................................................................................................
?;
Promotion (trategies..............................................................................................
?;
Place </istribution= (trateg-................................................................................. ?;
%4isting (trategies O* Li*ebuo-...................................................................................
?5
Product (trateg-.........................................................................................................
?5
Pricing (trateg-...........................................................................................................
?5
Place </istribution= (trateg-.....................................................................................
?5
Promotion (trateg-.....................................................................................................
?5
(uggested (trategies.................................................................................................
?>
Market Penetration..................................................................................................
?>
!mplementation........................................................................................................
?>
Market /e'elopment...............................................................................................
?>
!mplementation........................................................................................................
?>













Organi7ation !ntroduction
Le'er #rot$ers Pakistan Limited is a multinational organi7ation. Unile'er PLC London
is its parent compan-. Unile'er is a %uropean based compan- +it$ $ead9uarters in
London2 and t$eir s$ares are 9uoted at t$e stock e4c$ange o* se'eral %uropean
countries. "$e- deal in all kinds o* products *rom animal *oodstuD to *oods and
detergents plus ot$er personal and consumer products. Unile'er $as its subsidiaries
in o'er AE countries o* t$e +orld2 to +$ic$ it spreads its 'ast kno+ledge and
resources.
,illiam Le'er <its originator= commences business in %ngland as a grocer. He
establis$ed Le'er #rot$ers in 8AC? in %ngland (unlig$t +as t$e 6rst product o*
Le'er #rot$ers2 +$ic$ makes t$e beginning o* t$e marketing o* branded products at
t$e same time Margarine Uni +as establis$ed in &et$er Land b- (imon @an #erg
and Anton Iurgens. "$ese t+o companies in term o*J
K #u-ing ra+ material
K (elling 6nis$ed goods
Conse9uentl- bot$ t$e companies loosing out mone- in term o* pro6t. "$ese
problems led to t$ink o* t$e mergers in 8B:E. "$ese t+o companies merged
toget$er and renamed t$e business as Unile'er PLC L t$e +ord U&! is taken *rom
margarine Uni and Le'er is taken *rom Le'er #rot$ers. !ts $ead 9uarter +as
establis$ed in %ngland and Rotter /am.
Unile'er $as 5EE operating companies in AE countries. !t $as E.: million emplo-ees
and turno'er o* sales in C:EEE million pounds. "$e global business proportion is
>EM in %urope CEM in &ort$ America and CEM in rest o* t$e +orld. An identi6ed
board o* directors control t$e acti'ities o* subsidiar- companies t$roug$out t$e
+orld. Le'er #rot$ers Pakistan Limited started its operations in 8B;A. A merger o*
(adi9 @egetable Oils and Allied !ndustries e4isted in Ra$im Yar 5$an +as taken
place +it$ Le'er #rot$ers and H@M compan- based at 5arac$i. As a result o* merger
Le'er #rot$ers Pakistan Limited +as incorporated as an independent Unile'er
operating compan- in 8B55. "$e compan- is 9uoted on t$e 5arac$i2 La$ore and
!slamabad (tock %4c$anges. Le'er #rot$ers Pakistan Limited $as around 8BEE
emplo-ees in Pakistan.
Le'er #rot$ers Pakistan Limited pla-ed a d-namic role in boosting consumer
products market. !t stand at a uni9ue position due to its $onest- and integrit-. Le'er
#rot$ers Pakistan LimitedHs main di'isions o* business areJ
Merger ,it$ #rooke #ond
#rooke #ond Pakistan Limited +as incorporated in 8B;A. Compan-Hs ;EM s$ares are
$eld b- Unile'er2 C8M b- 6nancial institutions2 C;M b- indi'iduals2 and 8EM b-
insurance companies. "$e compan- is 9uoted on 5arac$i and La$ore (tock
%4c$ange market. "$e compan- is manuall- engaged in t$e blending2 packaging
and marketing o* tea. !t also $as a small business in t$e sale o* packing apices. "$e
compan- emplo- around A5E persons. And $as t$ree manu*acturing locations
situated in 5arac$i and 5$ane+al. !t also $a'e t$ree regional sales oNces. "$e $ead
oNce o* t$e compan- is located in 5arac$i.
A*ter t$e amalgamation o* Le'er and #rooke #ond2 Unile'er +ill $a'e a majorit-
s$are$olding in t$e combined compan- and it +ill pro'ide a comparable le'el o*
tec$nical2 management and 6nancial resources. "$e proposed merger +ill bene6t
t$e consumer in term o* price and 9ualit-.
Ac9uisition
Le'er #rot$ers Pakistan Limited ac9uire t$e s$ares o* Pakistan !ndustrial Promoters
Limited2 Me$ran !nternational Limited and Ambrosia !nternational Limited2 +$ic$ is
kno+n as Polka 0roup o* !ce Cream Companies.
Product Mi4
At present Le'er #rot$ers Pakistan Limited is engaged in marketing o* di'ersi6ed
'arieties and classes o* products and pla-ing a d-namic role in boosting consumer
product market. !t stand at a uni9ue position due to its $onest- and integrit-. Le'er
#rot$ers Pakistan Limited $as bot$ product lengt$ and dept$ i.e. it $as b- lengt$ a
largest o* product lines a'ailable and under eac$ product line t$ere are lots o*
'ariants like diDerent +eig$ts2 8EEmg2 5EEmg2 8EEEmg2 sac$e pack2 *amil- pack or
in case o* ice creams diDerent brands $a'e lots o* Oa'or a'ailable +$ic$ determines
its product dept$. (o diDerent no o* product lines are called product lengt$ and no
o* products in eac$ product line are called dept$ o* product line. Le'er #rot$ers
Pakistan LimitedHs main product groups are listed belo+J
Home And Personal Care
Personal ,as$ <P,=
"oilet (oaps
Li*ebuo- <Carbolic (oap=
Li*ebuo- Plus
Li*ebuo- 0old
Lu4 <in ; 'arieties=
Re4ona <in C 'arieties=
Liril
Hamman
air F Lo'el- (oap
abrics And Home Care
abric ,as$
(ur* %4cel
Po+er (ur*
(unlig$t ,as$ing Po+der
(oap ,$eel
Home Care
@im /is$ ,as$er L (courers
@im &(/ #ard <in C 'arieties=
@im Po+der Pol- #ag
Personal Product
Hair Care
(unsilk ($ampoo <in ? 'arieties=
Harmon- (oap
Li*ebuo- ($ampoo
(kin Care
air F Lo'el- (kin Cream and Lotion
/ental Care
CloseGup "oot$ Paste
Pepsodent
Oil And /air- #ased oods
#anaspati
/alda
Cooking Oil
/alda Cooking Oil<(o-a #ean=
/alda (unOo+er Oil
Planta
Margarine
#lue #and
!ndustrial ats
A +$ole range o* product *or baker- and oils *or t$e industr-.
#e'erages
Lea* "eas
Yello+ Label
Yello+ Label P /anedar
Ric$bru
"op (tar
"aa7a Lea*
(upreme
#rooke #ond
/ust "eas
Pearl /ust
Rub- /ust
Laojee
Mi4ture "ea
"aa7a
!ce Cream
Cornetto <in : 'arieties=
east <inC 'arieties=
east (tickless
"op "en
(tar Cup <in ; 'arieties=
(undae < C 'ariant=
C$ocu #ar
Minimill
(ola
Iet (pot
!ce Loll-
,allHs 5ul6
Panda
Pop Corn
#ig "$ree

@ision O* Le'er #rot$ers Pakistan Limited
"$e 'ision o* Le'er #rot$ers Pakistan Limited is dri'en b- is t$e commitment to
e4cel and +e are $ere to sell aspiration not brand. (o2 t$e core 'ision is integrating
and t$at is to e4cel in e'er- 6eld +$ate'er Le'er #rot$ers do to pro'ide customer
delig$t and 'alue. "$e Le'er #rot$ers $a'e been able to *ollo+ t$e track set b- t$eir
'ision and to ac$ie'e t$e standards set b- t$eir customers.
Mission (tatement o* Le'er #rot$ers Pakistan Limited
Le'er #rot$ers Pakistan Limited +ill be t$e *oremost consumer compan- in Pakistan
+it$ t$e dominant position in laundr-2 personal +as$2 skin2 ice creams and spreadsJ
a leading position in tea2 $air2 dental and $ouse$old care and a sustainabl-
pro6table position in cooking oil and *ats.
8. ,e +ill aim at deli'ering a 85M U@0 rate2 $ence doubling t$e si7e o* our
business o'er 5 -ears and t$ereb- deli'ering superior 'alue creation.
C. ,e +ill ac$ie'e t$is b- adopting a broad 'ie+ o* our market b- seeking t$e
ne+ opportunities in t$e core categories o* Unile'er and b- sta-ing closer to all
consumers t$an competitors2 understanding t$eir e'ol'ing needs and *ocusing on
constant deli'er- o* superior 'alue *or our brands t$roug$ inno'ation.
:. Competiti'e ad'antage +ill also be de'eloped b- dri'ing do+n relentlessl-
on relati'e cost positions and outpacing competition in operational eNcienc-
impro'ement.
;. ,e s$all build on our strong net+ork o* distributors to ma4imi7e
penetrations and 'isibilit- in e4isting c$annels and to de'elop all ne+ c$annels
rele'ant to our consumers.
5. ,e s$all establis$ Unile'erHs core brands in A*g$anistan2 building brand
lo-alt- and strong distribution in t$e market.
>. "o ac$ie'e t$ese standards o* per*ormance2 Le'er #rot$ers Pakistan
Limited +ill de'elop a strategicall- *ocussed organi7ation and +ill moti'ate its
personnel to use its *ull potential o* creati'it- and commitment. !t +ill also le'erage
Unile'erHs best practices and maintain t$e $ig$est standards o* operational control.
?. "$roug$ its commitment to $ig$ le'els o* care and sa*et- *or its
emplo-ees2 its consumers and t$e en'ironment2 Le'er #rot$ers Pakistan Limited +ill
be e4emplar- and +ill participate in t$e dissemination o* suc$ practices in Pakistan.
Anal-sis O* Mission (tatement
Mission Contents
Organi7ation P$ilosop$-
People
Peoples are ke- to strengt$s o* Le'er #rot$ers Pakistan Limited. "$e de'elopment o*
t$eir potential is core to Le'er #rot$ers Pakistan Limited business.
(o t$e- pro'ide e4tensi'e attention to de'eloping $uman resources.
Customers
Le'er #rot$ers Pakistan Limited is t$e customers *ocus organi7ation. "$e- do delig$t
customers +it$ t$eir products and ser'ice. "$eir brands al+a-s deli'er t$e $ig$
9ualit- as t$e- premise. Le'er #rot$ers Pakistan Limited pa-s e4tra attention to t$e
complaints o* consumers.
e.g. i* t$e consumer complaints t$at detergent $armed an- clot$ or skin t$e- send
t$e sample *or lab test a team anal-7es t$at customer complaint is rig$t or not and
t$en t$e- send t$e detailed response to customer along +it$ gi*t o* t$eir products.
,it$ a 9uestionnaire *or suggestion *or *urt$er impro'ement on t$e top o* +$ic$ is
+ritten 1,% CAR% A#OU" YOU3.
(uppliers
(uppliers are considered t$e partners o* Le'er #rot$ers Pakistan Limited and Le'er
#rot$ers Pakistan Limited maintain mutuall- bene6cial relations$ip +it$ t$em.
!ntegrit-
Le'er #rot$ers Pakistan Limited ne'er compromise on integrit- management ad$ere
to $ig$ standards in all t$e- do.
%n'ironment responsibilit-
Management ad$ere to all national and Unile'er standards to ensure $ealt$2 sa*et-
and protection o* t$e en'ironment in +$ic$ t$e- li'e and +ork.
Pro6t
!t is considered to be t$e ultimate measure o* Le'er #rot$ers Pakistan LimitedHs
per*ormance and it is re9uired to maintain and gro+ t$eir business.
Product Market /omain
"$is *actor indicates +$ere t$e- are going to compete. Le'er #rot$ers Pakistan
LimitedHs 6eld o* operations is t$e consumer products and business and t$is is 'er-
clearl- stated in t$eir mission statement.
Organi7ation 5e- @alue
!t de6nes t$at +$at do t$e- +ant. "$e- people o* organi7ation to be good at or $o+
do t$e- +ant t$em to be$a'e and t$is 'er- clearl- stated in mission statement as
al+a-s sta- responsi'e to c$ange2 go *or inno'ation2 emplo-ee commitment to
organi7ational objecti'es and mission and creating 'alue *or customers. (o2 i* +e
c$eck t$e mission statement t$roug$ t$is aspect t$en +e can easil- state t$at t$e-
$a'e clearl- stated +$at s$ould be t$e organi7ational ke- 'alues and $o+ to
rein*orce t$em.
Critical (uccess actor
"$e central issue o* t$is *actor is t$at +$at do t$e- $a'e to be good at to succeed in
t$is market or industr-. "$e mission statement outlines t$is as 1adopting a broad
'ie+ o* our market2 b- seeking t$e ne+ opportunities in t$e core categories and b-
sta-ing closer to all consumers t$an competitors and understanding t$eir e'ol'ing
needs and *ocusing on constant deli'er- o* superior 'alue *or our brands t$roug$
inno'ation3.
(o *ar t$em critical success *actor is consumer connecti'it- and commitment to
e4cel and to pro'ide superior 'alue to customers and products o* superior 9ualit-
and 'alue.
Concern or /iDerent (take$olders
Mission statement describes t$at +$at are t$e obligations to diDerent stake$olders
i.e. stock$olders2 emplo-ees2 suppliers2 customers and communit- at large. Le'er
#rot$ers Pakistan LimitedHs mission statement contains concerns about all
stake$olders. irst be *oremost consumers and t$en ot$er stake$olders and
describes it asJ 1"$roug$ its commitment to $ig$ le'el o* core and sa*et- *or its
emplo-ees2 its consumers and en'ironment. Le'er #rot$ers Pakistan Limited +ill be
e4emplar- and +ill participate in t$e dissemination o* suc$ practices in Pakistan3.
orm And (ources O* Competiti'e Ad'antages
Mission statement o* Le'er #rot$ers Pakistan Limited completel- describes t$e *orm
and sources o* competiti'e ad'antage asJ
1Competiti'e ad'antage +ill be de'eloped b- dri'ing do+n relentlessl- on relati'e
cost positions and outpacing competitorHs in operational eNcienc- impro'ements
and t$roug$ building strong net+ork o* distributors and b- de'eloping a
strategicall- *ocused organi7ation and b- moti'ating its personnel to use its *ull
potential o* creati'it- and commitment and b- maintaining t$e $ig$er standards o*
operational control3.
"$e- are going *or uni9ue combination o* cost reduction and superior 'alue to
customers so t$e- entirel- pro'ide t$e *orm and source o* competiti'e ad'antage
t$at +$at t$e- +anted to ac$ie'e and $o+ t$e- +ill ac$ie'e it.
(cope And "-pes O* Mission
"$e mission o* Le'er #rot$ers Pakistan Limited co'ers bot$ t$e e4ternal dimension
<product market domain2 critical success *actors= and internal dimensions
<p$ilosop$-2 organi7ation ke- 'alues2 *orm and sources o* competiti'e ad'antage2
and concern *or diDerent stake$olders= so t$ere*ore2 +e can sa- t$at t$e mission
statement o* Le'er #rot$ers Pakistan Limited is a global mission as according to t$e
*ollo+ing e4$ibit.
Le'er #rot$ers Pakistan Limited +ants to be market leader in consumer products. !t
enjo-s greatest market s$are as compared to competitors b- pro'iding superior
9ualit- products. And customer 'alue is +$at t$e- 'alue. And t$is is reOected in
mission statement. "$e 'er- 6rst : points are all customer *ocused and $as
pro'ided customer 'alue as t$eir main *ocus.
As bot$ t$e dimensions are e4tensi'el- co'ered so +e can sa- t$at t$e mission o*
Le'er #rot$ers Pakistan Limited is global mission. &o+ +e can *urt$er go *or rating
o* mission o* Le'er #rot$ers Pakistan Limited on a scale o* 8G8E *or testing o*
mission2 +$ic$ is as underJ
"esting "$e Mission
/oes t$e mission statement make it clear +$at t$e organi7ation stands *or and +$-
it e4istsQ
8E
/oes t$e mission statement makes it clear +$ere +e $a'e to compete and +$o are
our customersQ
5
/oes mission statement tell us t$e 'alues +e s$ould ad$ere to in +orking o* t$is
organi7ationQ
A
/oes mission statement make it clear +$at +e $a'e to be good at to sur'i'e and
prosperQ
8E
/o diDerent parts o* mission statement $and toget$er2 does it make senseQ
8E
!s t$e mission statement s$ort enoug$ so t$at people can understand itQ
8E
!s t$e mission statement +ell +ritten enoug$ so t$at people +ill remember itQ
5
!s t$e mission statement c$allenging and e4iting2 +ill it moti'ate usQ
8E
/oes t$e mission statement tell us +$at +e s$ould be doing and +$at +e s$ould
not be doingQ
5
"otal
A:

CriteriaJ 8EE R %4cellent
5E R Medium
EE R Poor or no mission
"$e total score indicates t$at t$e mission statement o* Le'er #rot$ers Pakistan
Limited is appro4imatel- near to e4cellent standards and gi'es complete $elp *or
setting priorities guide strategic decision making2 and per*ormance e'aluation or in
s$ort it *ul6lls t$e essential role i.e. to de6ne t$e business in suc$ a manner +$ic$ is
important in o'erall strategic management.
Objecti'es O* Le'er #rot$ers Pakistan Limited And Attainment O* Objecti'es
Objecti'es o* Le'er #rot$ers Pakistan Limited
8. "$eir main objecti'e is to $a'e a doubleGdigit gro+t$ and resultant cas$
Oo+s +ill be utili7ed in impro'ing t$e product 9ualit- and contents to en$ance t$e
'alue to customer and 6nal users.
C. Le'er #rot$ers Pakistan Limited $as an objecti'e to $a'e a responsi'e
suppl- c$ain and tec$nological based processes.
:. "$e- +ant to $a'e consumer connecti'it-2 i.e. t$e- +ant to kno+ +$at
t$e- eat2 drink2 $o+ t$e- spend t$eir li'es2 +$at are t$eir pre*erences. (o in t$is
+a- t$e- +an to be 'er- close to customer2 to kno+ t$eir real insig$t and desires so
t$e- can de'elop ne+ strateg- *or product design and can implement t$eir strateg-
in better manner i.e. a'oidance o* $it and trial approac$ and $itting t$e rig$t target
+it$ rig$t strateg- at rig$t time in rig$t and accurate manner.
;. "$e- +ant to be cost eNcient i.e. t$e- +ant to reduce in t$eir cost o*
production2 cost o* transportation2 distribution and packaging cost and 6nall-
reducing all t$e $uman cost to oDer a competiti'e price to customer maintain t$e
$ig$ standards o* 9ualit-.
5. "o $a'e a partners$ip +it$ t$eir suppliers to enable t$em to pro'ide $ig$
9ualit- lo+ cost material.
>. Ha'e entered and +ill be aggressi'el- de'eloping ne+ markets.
?. #e e4citing to t$eir customers +it$ stream o* inno'ati'e products.
A. "o be no in all t$eir e4isting markets.
Attainment O* Objecti'es
An objecti'e or set o* objecti'e to be ideal must be 1(MAR"3 i.e.
8. (peci6c
C. Measurable
:. Attainable
;. Realistic
5. "ime *rame
(peci6c
"$e objecti'e o* Le'er #rot$ers Pakistan Limited are speci6c not general e.g. t$e-
+ant to be number one i.e. market leader in terms o* market s$are. "$e- +ant to be
cost eNcient it is speci6c i.e. t$e- $a'e to reduce t$eir costs +it$out compromising
on 9ualit-. "$e- +ant to $a'e *ocused strategic t$rust i.e. t$e- are to simpl- reduce
nonG'aluable slo+ mo'ing product. (o t$e nonG'alue added products are 9uite
ob'ious +it$ t$eir sale 6gure and popularit-.
Measurabilit-
Objecti'es o* Le'er #rot$ers Pakistan Limited are measurable as -ou can easil-
measure t$e doubleGdigit gro+t$ +it$ t$eir balance s$eet *ootings and cas$ Oo+
anal-sis. Reduction in cost easil- be measurable *rom reduced price le'el and cost
o* production. Responsi'e suppl- c$ain objecti'e can easil- be measured +it$
9uantit- o* real in*ormation a'ailable on computer terminals o* Le'er #rot$ers
Pakistan Limited.
Attainable
All o* t$e objecti'es are attainable. "$e- can be market leader e.g. t$e- are in Lu42
#lue #and2 air F Lo'el-2 Lipton and (upreme. "$e- $a'e port*olio and cas$ Oo+s to
in'est in t$eir product categories to ac$ie'e t$eir 9ualit- standards t$ereb-
becoming market leader +it$ t$eir increased s$are2 sales and gro+t$. "$ereb-
getting brand lo-alt- among t$eir customers.
Reliabilit-
One $as to be at t$e top so to be number one in its realistic objecti'es. Ot$er
objecti'e e.g. reduction in cost is realistic2 -ou an reduce -our cost b- *ocusing on
'alue c$ain. Cost o* inbound and outbound logistics.
"$e objecti'e o* launc$ing inno'ati'e products is also realistic objecti'e2 it comes
onl- *rom creati'e ideas and implementation o* t$ese inno'ati'e ideas comes up
*rom in'estment.
"ime rame
All t$ese objecti'es are to be attained in some speci6c time period.
Attainment O* Objecti'es
Le'er #rot$ers Pakistan LimitedHs strateg- to attain t$e objecti'es isJ
8. Ma4imum co'erage o* outlets
C. /esirable sales 'olume
:. /ispla- and merc$andi7ing o* products
;. /e'eloping 9ualit- and +ant satis*-ing product.
(ince e'er- compan- is *ormed to accomplis$ certain objecti'es. "$ere is no
compan-2 +$ic$ $ad no goals. (o Le'er #rot$ers Pakistan Limited also $as targets
be*ore it.
"$ese main targets and objecti'es areJ
8. Pro6ts
C. Consumerism
:. ,el*are o* consumer
"$e 6rst objecti'e o* Le'er #rot$ers Pakistan Limited is to earn ma4imum pro6t but
keeping in 'ie+ t$e customer demands as +ell compan- deals in t$ose products
+$ic$ are pro6table.
!* t$ere are an- indication t$at an- item is not good *rom pro6t point o* 'ie+2 it +ill
tr- to 6nd out t$e reasons. ,ill soon +$at steps s$ould be taken to o'ercome t$ese
reasons.
Compan- +ill introduce diDerent marketing strategies i* t$ere are problems in
marketing. Here ! +ould like to code t+o 'er- *amous e4amples2 8st o* (unlig$t soap
and (unlig$t +as$ing po+der o* Le'er #rot$ers Pakistan Limited.
Le'er #rot$ers Pakistan Limited initiall- de'eloped a sense o* consumer to use
+as$ing po+der ot$er t$an +as$ing soap2 consumer s+itc$ed s a result to+ards
(unlig$t +as$ing po+der2 i.e. popular segment o* +as$ing po+der and t$an t$e
market s$are *or (unlig$t soap declined +it$ passage o* time2 no+ t$e consumer
+$o reali7ed t$e con'enience o* +as$ing po+der started using it2 but at t$e same
time2 as a result marketing strateg- o* Le'er #rot$ers Pakistan Limited a+areness o*
people2 people s+itc$ed to sur* and +$eel i.e. premium segment detergents. inall-
due to t$e decrease in t$e market s$ares and sales 'olume o* (unlig$t soap and
+as lig$t po+der Le'er #rot$ers Pakistan Limited management 6nall- decided to
stop t$e production o* t$is 'er- product i.e. it is no+ obsolete.
(econd e4ample is related to t$e c$ange o* brand name o* (ur* to (ur* %4cel. "$e
reason be$ind +as introduction o* competitorHs brands like Arial b- PF0 +$ic$ $ad
brig$tness *eatures2 +$ic$ caused t$e people to s+itc$ *rom (ur* to Arial2 Le'er
#rot$ers Pakistan Limited reali7ed t$e *act due to disturbance in sale 'olume o* (ur*
and introduced ne+ brand name 1(ur* %4cel3 +it$ e4tra brig$tness po+er.
Compan- also takes into consideration t$e +el*are o* t$e consumer. !t takes into
mind t$e taste and $abits o* t$e customer. "$e- pa- muc$ attention on t$e
customersH complaints. !t also +orks *or t$e +el*are and interest o* Pakistan2 as it is
an en'ironment *riendl- organi7ation.
(trategic Management At Le'er #rot$ers Pakistan Limited
&o+ +e +ill proceed +it$ strategies being pursued b- t$e Le'er #rot$ers Pakistan
Limited at diDerent organi7ational le'el. irst +e +ill discuss t$e corporate le'el
strateg-.
Corporate Le'el (trateg-
At corporate Le'er #rot$ers Pakistan Limited is pursuing t$e strateg- o* 'ertical
di'ersi6cation i.e. dri'ing a+a- *rom t$e pre'iousl- adopted strateg- o* 'ertical
integration i.e. no+ t$e- donHt +ant to per*orm more t$an one step o* t$e processes
in'ol'ed in con'erting ra+ materials into a product deli'ered and read- *or
consumption. Le'er #rot$ers Pakistan LimitedHs operations are so comple4ed and
in'ol'es CEE brands in Pakistan so no+ t$e- +anted to reduce t$e operational
comple4it- and going *or strategic alliances +it$ t$eir suppliers2 instead o*
producing t$emsel'es and going into comple4 operations no+ t$e- +ant t$eir
suppliers to produce *or t$em.
"$e outsourcing t$e production so t$at t$e- donHt $a'e to in'est $ea'il- in t$e
production and to reduce t$e capacit- problems2 t$e- no+ going *or t$e t$ird part-
contracting to produce t$emsel'es and no+ t$e- +ant t$em to be restricted to
marketing and distribution o* products.
/i'ersi6cation strateg- is being pursued b- t$e Le'er #rot$ers Pakistan Limited but
t$e- mainl- go *or related di'ersi6cation as against unrelated di'ersi6cation *or
conglomerates2 t$e- are di'ersi6ed into number o* businesses as mentioned earlier
but t$e- are all related to consumer products. "$roug$ 'ertical di'ersi6cation t$e-
+ill be able to eliminate t$e operational comple4it- and costs o* bu-ing and selling
i.e. t$e transactional costs. &o+ t$e- mainl- +anted to step a+a- *rom operations
and +ant to *ocus more on customers.
As means o* di'ersi6cation +$ic$ are being utili7ed b- t$e Le'er #rot$ers Pakistan
Limited as all t$e time2 been ac9uisition2 neit$er joint 'entures i.e. strategic
alliances nor t$e internal de'elopment. Here +e can take t$e e4ample o* t$e
ac9uisition o* #rooke #ond and Polka *or e4ample +$ic$ $a'e #rot$er ac9uired
t$roug$ a $ostile takeo'er. And to step a+a- *rom operational comple4ities no+
t$e- go *or subcontracting +it$ t$e suppliers and +ant t$em to produce *or Le'er
#rot$ers Pakistan Limited as in case o* oil and g$ee and soap and +it$ t$e passage
o* time +ill also be implemented in ot$er categories as +ell.
#usiness Le'el (trateg-
At business le'el Le'er #rot$ers Pakistan Limited is adopting a 'er- uni9ue and
interesting set o* strategies. irst and *oremost strateg- t$e- +ant to *ollo+ is t$e
cost leaders$ip. "$e- +anted to control cost as muc$ as possible and +ant to
reduce cost b- e'er- mean.
irst cost eNcienc- is ac$ie'ed t$roug$ outsourcing operations and stop producing
t$emsel'es and go *or cost eNcient subcontracting.
(econd t$e- +ant to ac$ie'e cost eNcienc- t$roug$ responsi'e and cost eNcient
suppl- c$ain2 +ant to be in touc$ +it$ suppliers all t$e time and *or t$at t$e- $a'e
connected t$emsel'es +it$ t$e suppliers and to t$eir suppliers as +ell to minimi7e
cost related to *orecasting no+ t$e- +ant better *orecasting t$roug$ computer
net+orks so to get t$e real time in*ormation about t$e in'entor-2 stock2 demand
and suppl-. "$e- are no+ reducing t$e in'entor- as +ell as a'erage carr-ing t$e
in'entor- o* onl- : da-s and getting closer to t$e concept o* just in time e4cept *or
t$ose products *or +$ic$ t$e- $a'e to broug$t in ra+ materials *rom *ar Oung areas
like tea and moreo'er routings o* logistics as +ell like air routing or s$ip routing to
curtail t$e costs ot$er t$an cost eNcienc-2 t$e- $a'e adopted t$e strateg- o*
consumer connecti'it- i.e. +ant to sta- closer to consumers rat$er to operations
and +ant to *ocus all alternations to consumers t$roug$ more researc$ and
customer pro6les and demograp$ics and +ants to e4plore ne+ customers and
usage o* products.
"o get customer connecti'it- t$e- do t$e market researc$ to c$eck t$e trends o*
t$eir customers. "$e do preGlaunc$2 postGlaunc$ researc$2 e.g. t$eir did be*ore and
a*ter lunc$ing +$ile antidandruD (unsilk. "$e response +as 9uite encouraging.
Hence basicall- customer and market researc$ and customer *eedback2 *ree
samples distribution be*ore and a*ter launc$ing ne+ product L brandL 'ariant is
aiming t$eir basic strateg- to implement and ac$ie'e t$e customer connecti'it- and
to *ul6ll t$eir customer demand.
Here Le'er #rot$ers Pakistan Limited $as used t$e strateg- o* product de'elopment
i.e. b- modi*-ing and impro'ing t$eir (unsilk it into (unsilk antidandruD <+$ite=2
t$e- $a'e increased t$eir sales. "$e- are appl-ing 1Market and /e'elopment
(trateg-3 as +ell in +$ic$ b- introducing present product <(unsilk= into a ne+
demograp$ic area i.e. dandruD conscious market segment +it$ t$e launc$ o* onl-
ne+ 'ariant i.e. (unsilk antidandruD +$ite. "$e- $a'e added conditioner in it as
initiall- t$e conditioner +as missing in all s$ampoos o* (unsilk. ,$ile it is a'ailable
in competing brands o* PF0.
Ot$er t$an t$ese t+o strategies anot$er 'er- important strateg- is being *ollo+ed
b- tge Le'er #rot$ers Pakistan Limited i.e. *ocusing on core brands or +ant to $a'e
a 'er- *ocused on brand port*olio in +$ic$ t$e- +anted to get rid o* t$e slo+ mo'ing
brands like in (ur* -ou +ill get number o* *urt$er 'ariants like (ur* Ultra2 (ur* Micro2
Po+er (ur* etc. and in (unsilk number o* 'ariants2 #lack2 0reen2 Pink2 etc. to name a
*e+ and $o+ t$e- $a'e curtailed all t$ese slo+ mo'ing brands like *ocusing
attention to (ur* %4cel onl- and in case o* (unsilk #lack and ,$ite <antidandruD=
and discarding slo+ mo'ing items like (unsilk Pink and 0reen etc.
(o2 to a'oid cannibali7ation eDect no+ instead o* number o* brands to Oood in t$e
market onl- *e+ better and impro'ed brands2 cas$ generating and more *ocused
to+ards customers.
Operational Le'el (trateg-
At operational le'el2 Le'er #rot$ers Pakistan Limited $as al+a-s adopted t$e
strateg- o* "SM onl- ne'er +ent *or CPR i.e. t$e- $a'e not come up +it$ a ne+
brand in last *e+ -ears. Onl- t$e impro'ements or ne+ 'ariants in e4isting brands
or using t$e same old brand name to introduce a ne+ product like Li*ebuo-
($ampoo or air F Lo'el- (oap. (o it can easil- be said t$at t$e- belie'e more in
adopting c$anges rat$er generati'e ones or go *or single loop learning onl- because
according to t$em its 'er- 'er- e4pensi'e to introduce a ne+ brand name.

(trateg- %'aluation
&o+ a*ter outlining t$e objecti'es and discussing t$e strategies +e can no+
e'aluate t$ese strategies t$at +$et$er t$e- are in $armon- +it$ t$e objecti'es o*
Le'er #rot$ers Pakistan Limited or not. And t$en +e +ill e'aluate t$ese strategies
on t$ree t-pes o* e'aluation criterion.
&o+ as against t$e objecti'es2 i* +e go t$roug$ all t$e strategies being mentioned
earlier2 t$en +e can see t$at all strategies are true reOection o* t$e objecti'es being
targeted b- Le'er #rot$ers Pakistan Limited. As an objecti'e o* consumer
connecti'it-2 responsi'e suppl- c$ain getting on line computer net+ork +it$
suppliers and more stronger RF/ department and t$e objecti'e o* cost eNcienc- is
supported b- t$e 'ertical di'ersi6cation in an sense t$at $o+ t$e- are outsourcing
production and going *or sub contracting +it$ t$eir suppliers and $a'ing more
responsi'e and cost eDecti'e suppl- c$ain and to ac$ie'e gro+t$ more *ocused
strateg- in case o* reduction o* brands2 etc. (o t$ese strategies are true measures
to ac$ie'e t$ose objecti'es. #ut ot$er t$an objecti'es t$ere is some ot$er criterion
+$ic$ eac$ strateg- $as to *ul6ll to be o* an- +ort$ and t$at criteria is as *ollo+sJ its
basicall- t$ree t-pes o* e'aluation criterion i.e.
8. (uitabilit-
C. Acceptabilit-
:. easibilit-
(uitabilit-
(uitabilit- is a broad assessment o* +$et$er t$e strateg- addresses t$e
circumstances in +$ic$ t$e organi7ation is operating. or e4ample2 t$e e4tent to
+$ic$ t$e strateg- +ould 6t +it$ t$e *uture trends L c$anges in t$e en'ironment or
$o+ t$e strateg- mig$t e4ploit t$e core competencies o* t$e organi7ation. &o+ i* +e
e'aluate t$e strateg- o* Le'er #rot$ers Pakistan Limited on t$ese *actors t$at
+$et$er t$e strategies 6t +it$ its e4isting circumstances +ould able to compete
+it$ t$e *uture trends like t$e strateg- o* cost reduction and *ocused brands and
outsourcing production and consumer connecti'it- and more responsi'e 'alue
c$ain. All t$ese strategies are not onl- suitable to t$e present condition but are
prere9uisite *or *uture success as +ell i.e. b- outsourcing production more *ocus
to+ards customer needs and +ants +ould be pro'ided and it +ould $elp Le'er
#rot$ers Pakistan Limited to ac$ie'e e'en $ig$er customer satis*action le'el and
market s$are and not onl- t$at lo+ering t$e cost +ould not onl- be bene6cial *or
Le'er #rot$ers Pakistan Limited but *or consumers as +ell i.e. no+ t$e- +ould
recei'e better 9ualit- at relati'el- lo+er cost and Le'er #rot$ers Pakistan Limited
+ould be able to pro'ide superior products 9ualit- and 'alue to customers. &o+ a
da-s2 success lies at cost reduction and superior 9ualit- +$ic$ t$e Le'er #rot$ers
Pakistan Limited $as success*ull- opted *or. Ot$er t$an t$is2 ne4t *actor is t$at
+$et$er strateg- can e4ploit t$e core competencies o* t$e organi7ation or not. "$e
ans+er is 'er- simple t$at b- reducing operational comple4it- and brands
comple4it- more resources +ould be a'ailable to *ocus more on t$e 9ualit- o* t$e
products as compared to t$e pre'ious situation. (o on t$e basis o* t$ese *actors it
can easil- be said t$at t$e strategies being implemented are 'er- suitable to Le'er
#rot$ers Pakistan Limited.
Acceptabilit-
Acceptabilit- o* strateg- is concerned +it$ t$e e4pected per*ormance outcomes
suc$ as t$e returns and risk i* t$e strategies are implemented and t$e e4tent to
+$ic$ it +ould be in line +it$ t$e e4pectations o* t$e stake$olders.
!n case o* returns2 its prett- muc$ assured t$at returns +ould de6nitel- be
en$anced +$en t$e cost +ould decrease and strategies +ould result in better
9ualit- products. #ut t$e elements o* risk is t$ere +$ic$ could be 9uite signi6cant in
t$e case o* subcontracting2 +$et$er t$e suppliers +ould be able to meet t$e 9ualit-
standards or not. And as +e in9uired it *rom t$e branc$ manager o* Le'er #rot$ers
Pakistan Limited2 $e said2 t$at +e $a'e 'er- strong 9ualit- control s-stem and
moreo'er +e are entering into strategic partners$ip +it$ our suppliers so to
maintain 9ualit- is in t$eir *a'or too and t$e- +ould be bene6cial *rom t$e better
9ualit- as +ell and it +ould not increase t$e cost in case o* maintaining control o'er
t$e suppliers as its partners$ip more as compared to onl- placing and recei'ing
order +e +ill +ork *or mutual bene6ts and complete $armon- +$ic$ +e alread-
$a'e.
As *ar as t$e stake$olders are concerned 6rst and *oremost eDect +ould be on t$e
emplo-ees as t$e production is outGsourced so t$e- +ould de6nitel- *eared t$e
unemplo-ment but t$e- said t$at +e +ill arrange it +it$ our suppliers and +ill tr- to
accommodate t$em as muc$ as possible and in case o* s$are$olders2 t$e- +ould
recei'e bene6ts o* t$is strateg- and +ould recei'e $ig$er returns on t$eir
in'estments and t$e- +ould be able to ma4imi7e t$eir earnings and in ot$er
stake$olders suppliers +ould no+ pla- more important role b- entering into
strategic partners$ip +it$ t$e organi7ation. Consumers recei'e more attention no+
and +ould get more satis*action as more and more products +ould be de'eloped on
t$e basis o* t$e targets being set b- t$e consumers. (o a*ter anal-7ing t$ese *actors
it can easil- be said t$at strategies being pursued b- Le'er #rot$ers Pakistan
Limited $as $ig$er returns and lesser risks and more bene'olent to stake$olders as
+ell.
easibilit-
easibilit- is concerned +it$ +$et$er t$e strateg- could be made to +ork in practice
or not. And its more concerned +it$ t$e assessment o* practicalities o* resourcing
and strategic capabilities i.e. 9uantitati'e assessment2 +$ic$ is be-ond t$e scope o*
t$is report2 so2 as an o'er'ie+2 all strategies seems *easible and some o* t$em $as
alread- been implemented as +ell like t$e reduction in brands etc. (o assessingT
!s t$is a good strateg-Q
!s t$e positioning 'iableQ
/oes it impro'e 'alueQ
/oes it e4ploits core competenciesQ
,ill it lead to good 6nancial per*ormanceQ
All t$ese *actors seems +ork in *a'or o* Le'er #rot$ers Pakistan Limited a*ter
anal-7ing t$e strategies o* Le'er #rot$ers Pakistan Limited.
(tructural Anal-sis
Organi7ational structure and management o* Le'er #rot$ers Pakistan Limited
Le'er #rot$ers Pakistan Limited restructure t$e organi7ation a*ter t$e merger +it$
#rooke #ond Pakistan Limited. "$e c$airman is t$e e4ecuti'e oNcer o* Le'er
#rot$ers Pakistan Limited. He leads t$e se'en members management committee2
+$ic$ is t$e top o* decision making. "$e management is responsible *or corporate
strateg- o* Le'er #rot$ers Pakistan Limited and *or initiating policies and o'erall
planning as +ell as t$eir general management duties. Management committee
members are eac$ responsible *or speci6c *unction. Reporting to t$e management
committee members are departmental $eads +$o are responsible *or ad'ising t$e
management committee *or planning and implementation o* policies *or ensuring
t$at targets are reac$ed. "$e committee includesJ
Mr. Lain (trac$an (angster <C$airman F C$ie* %4ecuti'e=
Mr. Mas$koor Alam <@ice C$airman=
Mr. MujibGurGRe$man <"ec$nical F Logistics /irector=
Mr. Per+ai7 Hassan 5$an </irector Personnel=
Mr. I. A. Lee </irector (ales=
Mr. A. /. #andarana-ake </irector Commercial=
Mr. &. !. 5$ock$ar <#usiness Unit manager O/=
Mr. Cli'e /a'id ,elland </irector ood #usiness=
#oard O* /irectors
"$e board o* directors control t$e +$ole operation o* t$e organi7ation it includes t$e
*ollo+ing personalitiesJ
Mr. Lain (trac$an (angster
Mr. (-ed #abar Ali
Mr. ate$ Ali ,. @ellani
Mr. MujibGurGRe$man
Mr. Per+ai7 Hassan 5$an
Mr. I. A. Lee
Mr. Cli'e /a'id ,elland
Mr. /r. A. /. #andarana-ake
Mr. (. &. Patel
Mr. M. Asadulla$ ($eik$
Mr. Abdul 0$ani#ac$ani
Mr. A7im A7mat Osman
As +e can notice t$at t$e management o* t$e compan- is composed o* a mi4 o*
international and Pakistanis business pro*essionalists. "$e management o* t$e
compan- includes (-ed #abar Ali as director2 +$o is also in'ol'ed in man- ot$er
organi7ations i.e. Packages and ot$er industries. !t includes in its board meetings
one member *rom eac$ pro'ince i.e. Punjab2 (ind$2 &,P and #aluc$istan. "$e top
management o* t$e compan- is *ull- pro*essional speciall- marketing department
+$ic$ is $eaded b- Mr. IeD Lee +$o $a'e +orld +ide e4perience in t$is 6eld.
Hierarc$-

#ranc$ structure
All o'er Pakistan > branc$es o* Le'er #rot$ers Pakistan Limited are +orking. !ts
$ead oNce is located in 5arac$i at A'ari "o+ers. "$e c$airman and management
committee as +ell as t$e most o* t$e department $eads $a'e t$eir oNces t$ere.
(tructural Anal-sis
Le'er #rot$ers Pakistan Limited $as a *unctional structure i.e. its based on t$e
primar- tasks t$at $a'e to be carried out suc$ as production2 accounting2 6nance2
marketing2 etc. and t$en t$ere is separate department *or eac$ *unction and t$ese
*unctions are carried out b- directors and t$e- are assisted b- managers o* t$at
'er- particular *unction like marketing manager and t$ose managers $a'e di'ided
eac$ product categor- into $ome and *abric care categor-2 spread and cooking
categor-2 etc. And t$ese categories are $eaded b- one product manager and
assistant manager.
,e cannot sa- t$at t$e structure o* Le'er #rot$ers Pakistan Limited is an ideal or
e4act *unctional structure as in *unctional structure C%O is in direct super'ision o*
eac$ primar- acti'it- but Le'er #rot$ers Pakistan Limited $a'e also included la-ers
o* 'ice c$airman and 'er- important management committee as described earlier.
"$is structure ma4imi7es t$e basic ad'antage o* *unctional structure t$at t$e C%O is
in c$arge and +ell in*ormed about eac$ primar- acti'it- and minimi7es t$e basic
disad'antage o* *unctional structure t$at an organi7ation become larger or more
di'erse2 t$en C%O2 senior management can be o'er burdened +it$ e'er-da-
operational issues2 +$ic$ is true in t$e case o* Le'er #rot$ers Pakistan Limited and
to oDset t$is disad'antage t$e- $a'e created additional la-er o* management
committee +$ic$ is responsible o* coordination bet+een C%O and c$airman2 'ice
c$airman2 and t$e *unctional directors to take a strategic perspecti'e on problems.
(o2 Le'er #rot$ers Pakistan Limited $as an ideal structure to o'ersee t$e +$ole
organi7ation and to control t$e operations o* t$e organi7ation +$ic$ in turn create
problems as o* 'er- slo+ decision making process and 'er- centrali7ed too.
"o continue +it$ structure anal-sis discussion2 no+ letHs turn our discussion to 6'e
basic *orces2 +$ic$ determines an organi7ationHs structure i.e.
8. "$reat o* ne+ entrants
C. "$reat o* substitutes
:. #u-er po+er
;. (upplier po+er
5. Competiti'e ri'alr-.
"$reat O* &e+ %ntrants
"$is potential t$reat al+a-s e4ist in e'er- organi7ation. #ut an organi7ation like
Le'er #rot$ers Pakistan Limited t$is t$reat is 'er- minimum because -ou need a
giant to compete +it$ anot$er giant like Le'er #rot$ers Pakistan Limited and in a
relati'el- small market like Pakistan2 t$e- are enjo-ing t$e $ig$est market s$ares in
most o* t$eir product categories like g$ee2 oil2 soaps2 spread2 *abric care2 etc. so2
t$e- *ace no t$reat o* an- ne+ entrant.
"$reat O* (ubstitutes
(ame as in t$e case o* ne+ entrant no as suc$ t$reat t$e- are *acing.
#u-er Po+er
"o determine bu-er po+er one condition is al+a-s necessar- i.e. t$e bu-ers are *e+
so t$e- e4ert po+er o'er an organi7ation. #ut t$is condition is not present in case o*
Le'er #rot$ers Pakistan Limited2 t$e- $a'e 'er- di'ersi6ed product categories and
+it$in eac$ categor- t$e- $a'e brands targeted at almost eac$ and e'er- segment
o* t$e market so t$e- donHt *ace t$e bu-ers po+er as suc$ but still 1customer is
king3 and t$e- do $a'e to pa- a lot o* attention to bu-ers being a consumer product
compan-.
(upplier Po+er
(uppliers donHt e4ert an- po+er o'er Le'er #rot$ers Pakistan Limited rat$er Le'er
#rot$ers Pakistan Limited pro'ides bu-erHs po+er in t$is case2 no bod- +ould like to
loose a bu-er like Le'er #rot$ers Pakistan Limited so2 t$e- donHt *ace an- signi6cant
supplier po+er.
Competiti'e Ri'alr-
Competition is intense but not cut t$roat competition and all o* t$em a'oid *rontal
assault or direct attack. (o2 situation o* $ealt$- competition e4ist. Competiti'e
ri'alr- +ould be discussed more in detail in t$e section 1competitor anal-sis3.
(tructure "-pes !n Multinational Companies
"$e gro+t$ in t$e si7e and importance o* multinational business +arrants some
special mention2 since t$e structural implications can be signi6cant. !n deciding t$e
structure o* multinational critical aspect or *actor or issue is t$e e4tent to +$ic$
local independence and responsi'eness take precedence o'er global coordination.
On t$e basis o* t$ese *actors t$ere are generall- *our t-pes o* multinational
structures2 suc$ asJ










!n all t$e *our structures2 Unile'er $as assumed t$e structure o* transnational
corporations in +$ic$ t$e- $a'e de'eloped structure2 +$ic$ attempts to combine
t$e local responsi'eness o* t$e international subsidiar- +it$ t$e ad'antages
a'ailable *rom coordination *ound in global product companies. "$e ke- is t$at t$e-
+anted to create an integrated net+ork o* interdependent resources and
competencies2 in +$ic$J
8. %ac$ national unit operates independentl-2 but is a source o* ideas and
capabilities *or t$e +$ole corporation.
C. "$e corporate center manages a global net+ork b- 6rst establis$ing t$e
role o* eac$ subsidiar-2 t$en sustaining t$e culture and s-stem to make t$e net+ork
operates eNcientl- or in a +a- +e can sa- t$at t$e- $a'e combined global and
multiGdomestic strateg-2 sta-ing independent and responsi'e to+ards local or
national market and -et not loosing touc$ or coordination +it$ t$e +orld+ide
net+ork and parent compan-.
"$ere are interesting diDerences bet+een countries in t$e +a- t$at global strateg-
tend to de'elop. Companies2 +$ic$ originated in man- %uropean countries suc$ as
Unile'er or &estle needed to internationali7e t$eir acti'ities at an earl- stage2 o+ing
to t$e small si7e o* t$eir $ome markets. "$is took t$e 6rm o* 1international
subsidiaries3 but no+ t$eir c$allenge is to reduce t$e local autonom- and increase
global coordination. #ut in contrast U( companies +it$ a large domestic market
tended to *a'or 1international di'isions3 and no+ t$e- *ace t+o c$allengesJ
8. "$e issue o* local autonom-.
C. #arriers bet+een t$eir separate strategic 'ie+s o* t$e domestic and
international business.
Unile'er $as +ell coped +it$ t$ese c$allenges b- adopting t$e transnational
corporation structure.
@alue C$ain Anal-sis O* Le'er #rot$ers Pakistan Limited
"$is met$od *or accessing strengt$s and +eaknesses di'ides t$e business into
number o* linked acti'ities t$at ma- eac$ produce 'alue *or t$e customer.
1Customer 'alue3 is a *unction o* *actors t$at usuall- *all into one o* t$ree broad
categories t$ose t$at diDerentiate t$e product2 t$ose t$at lo+er its costs2 or t$ose
t$at allo+ t$e organi7ation to respond to customer needs more 9uickl-.
"$e 'alue c$ain *rame +ork $elps anal-7e t$e contribution o* indi'idual acti'ities in
a business to t$e o'erall le'el o* customer 'alue t$e 6rm produces and ultimatel- to
its 6nancial per*ormance. !* eac$ part o* t$e business produces 'alue2 t$e 6rm
s$ould be able to c$ange more andLor incur lo+er costs eit$er o* +$ic$ +ill lead to
$ig$er pro6t margins.
"$e 'alue c$ain anal-sis *rame +ork o* Le'er #rot$ers Pakistan Limited appears as
*ollo+s and is basicall- seeking cost leaders$ip as t$eir source competiti'e
ad'antage.
%4planation O* @alue C$ain
Le'er #rot$ers Pakistan Limited is basicall- *ocusing on cost leaders$ip in branded
s$ampoos market. or t$eir ra+ material procurement t$e- $a'e opted
1outsourcing3 strateg-. Man- contents o* s$ampoos are procured *rom %urope2
America2 ar %ast and some o* ra+ material is locall- a'ailable it increases t$e leadG
time. Le'er #rot$ers Pakistan Limited $andles t$is situation +it$ 1near to I!"
s-stem3 i.e. called Automatic Replenis$ment (-stem. "$roug$ t$is s-stem t$e
suppliers o* ra+ material are +ell connected t$roug$ computer terminal2 t$e detail
and current le'el o* all ra+ materials2 in'entor- le'el is reOected on supplier
terminal and on speci6c inter'al t$e- s$ip t$e ra+ material automaticall- +$ic$
reduces time *or repeated re9uisition.













A*ter releasing t$e material *rom customs t$e ingredients are s$ipped to Ra$im Yar
5$an Plant. "$ese ingredients are processed <bot$ local and imported= in t$e
mac$iner- speci6call- designed *or t$is purpose. &ormall- *or sac$e packs A lanes
are processed at a time in one lot.
A lanes R A reels
8 r eel R 8 ton or 8EEE kg o* s$ampoo in 9uantit-
!tHs cutting and packaging is completed as 6nal step. Packaging material is t-picall-
not a'ailable around *actor- area. Le'er #rot$ers Pakistan Limited $as to purc$ase
all packaging material *rom Packages Limited La$ore.
Hence bot$ primar- and secondar- packaging material comes *rom Packages
Limited La$ore. Primar- packaging material includes bottles and sac$e packaging
+$ile t$at o* secondar- material includes t$e cartons. A*ter packaging o* s$ampoo
bottles and sac$e passes t$roug$ distributor to retailer.
Outbound logistics start *rom $ere on demand o* > depots o* Le'er #rot$ers
Pakistan Limited2 t$e lot is packed and deli'ered to t$e +$olesaler.
&o+ +e +ill discuss t$at $o+ eac$ indi'idual acti'it- o* 'alue c$ain <bot$ primar-
and supporting acti'it- contributes to+ards t$e ma4imi7ation o* pro6ts to deli'er
'alue to 6nal customer.
(upporti'e Acti'ities
irm !n*rastructure
Le'er #rot$ers Pakistan Limited $as a +ell establis$ed in*rastructure. "$e- $a'e
kno+ledgeable e4pert top management and middle management +$o $a'e
e4pertise in t$e consumer goods 6elds. Moreo'er t$e- $a'e some arrangements
+it$ $air e4ports to *urnis$ t$eir product kno+ledge.
"$e- $a'e a 'er- good and eDecti'e management in*ormation s-stem2 +$ic$ not
onl- s$ares t$e in*ormation +it$in t$e organi7ation i.e. Le'er #rot$ers Pakistan
Limited but also +it$ t$eir suppliers and +$olesalers as +ell. "$is sa'es t$eir time
and gi'es t$em realGtime in*ormation.
Marketing researc$ department is also s$aring consumer researc$ data to impro'e
t$eir standards according to customer demand and trends e.g. conditioner +as
missing in (unsilk Researc$ and /e'elopment searc$ed out and *ound t$at
competitors are pro'iding conditioner also in s$ampoo +$ic$ (unsilk and Li*ebuo-
s$ampoo didnHt $a'e in t$em. #ut t$is $as been done 'er- late and implementation
is also 'er- slo+. Production people <manager= upon s$aring t$is in*ormation *rom
marketing researc$ department $as recentl- launc$ed t$e antidandruD +$ite
(unsilk +it$ conditioner +$ic$ $as s$o+n a 'er- success*ul per*ormance in market
and $as impro'ed t$e sales o* (unsilk o* Le'er #rot$ers Pakistan Limited especiall-
o* t$is +$ite 'ariant.
One important t$ing to be noticed is t$at t$oug$ t$e- $a'e integrated in*ormation
s$aring net+ork but t$e implementation on t$e needed strateg- b- production
people is seeming to be 'er- late as t$eir decisions are centrali7ed and are in $ands
o* parent compan- and t$e implementation is also 'er- slo+. "$is problem o*
absence o* conditioner +as identi6ed b- marketing researc$ people 'er- earlier and
+as communicated to production department as +ell but a implication and action
$as been taken a*ter a 'er- long time +$en problems o* sales become 'isible. ,e
can sa- t$is is due to long term approac$ to strateg- *ormation and implementation
o* Le'er #rot$ers Pakistan Limited. Hence in*rastructure contributes as a supporting
acti'it- *or pro'iding 'alue to t$e customers and on some aspects e.g. centrali7ed
decision making and late implementation it pro'es to be a +eak support.


Human Resource Management
Human resource management is t$e one o* t$e most important supporting pillar o*
t$e 'alue c$ain and it is use*ul *or its anal-sis. A 6rmHs $ig$er tec$nological and
6nancial resources cannot do an- t$ing *or t$e betterment o* compan- unless t$ese
t+o and rest o* t$e resources are $andled b- t$e good appropriate $uman
resources. ,e can surel- sa- t$at Le'er #rot$ers Pakistan Limited $as a skilled2
9uali6ed2 e4pert2 communicati'e management and oNcers staD.
"$e- $a'e bot$ *ormal and in*ormal net+ork o* communication in t$eir organi7ation
to complete t$e tasks and target eNcientl- and eDecti'el-. Hence +e can sa- t$at
t$ere is $ealt$- t-pe o* net+ork among Le'er #rot$ers Pakistan Limited staDHs
department.
Le'er #rot$ers Pakistan Limited oDers t$e training programmes and arranges
seminars *or *urt$er skill de'elopment and career de'elopment purposes o* its
brand managers2 marketing managers2 researc$ and de'elopment managers2 and
ot$er staD2 +$ic$ en$ances t$eir eNcienc- to support t$e primar- acti'ities o* 'alue
c$ain o* s$ampoo product line o* Le'er #rot$ers Pakistan Limited.
/ue to necessar- training2 $ealt$- pa- scales2 balanced empo+erment2 in*ormal
and *ormal combination o* communication net+ork t$e job satis*action o* eac$ and
e'er- emplo-ee is 'er- $ig$. ,$ic$ reduces t$e emplo-ees turno'er to minimal. All
o* t$em contribute a lot and positi'el- *or t$e support o* 'alue c$ain primar-
acti'ities i.e. procurement manager putting $is eDorts *or t$e purc$ase o* $ig$ and
rig$t 9ualit- making inbound logistics.
Operations L brand manager is *ocusing ensuring t$e relations$ip o* t$e s$ampoo
production.
(ales and distribution manager o* Le'er #rot$ers Pakistan Limited is ensuring t$e
complete co'erage o* retail outlets o* Pakistan. He ensures t$at all 'ariants and
sac$e and s$ampoos o* Le'er #rot$ers Pakistan Limited are a'ailable on eac$
s$opping outlet o* Pakistan i.e. *rom large s$opping stores to small s$op co'ering
bot$ rural and urban areas.
#ut $ere +e +ould like to add t$at one t$ing is missing as a support o* 'alue c$ain
i.e. good relations o* Le'er #rot$ers Pakistan Limited marketing and sales manager
+it$ t$eir retailer and distributors. /ue to t$is retailer gi'e pre*erence to t$e
competitorHs brands o* s$ampoos e.g. PF0. Hence Le'er #rot$ers Pakistan Limited
is pro'iding training and job satis*action to its $uman resources in turn t$ere is lo+
emplo-ee turno'er and t$e- support 'alue c$ain e4cept good relations$ip and
incenti'e to retailers +$ic$ is o* primar- importance.
"ec$nological /e'elopment
#- tec$nological de'elopment as a supporti'e acti'it- +e mean t$at $o+ muc$
organi7ation is bringing *urt$er impro'ements in its products and product
de'elopment. Le'er #rot$ers Pakistan Limited mainl- t$roug$ its RF/ department
$as recentl- broug$t a major impro'ement in its (unsilk s$ampoo i.e. launc$ o*
antidandruD +$ite s$ampoo. Hence t$is 'er- element $as also been supporti'e in
'alue c$ain o* (unsilk and Li*ebuo- s$ampoo. #ut still Le'er #rot$ers Pakistan
Limited are laggards in bringing t$is impro'ement.

Procurement
Procurement especiall- o* ra+ material contents and packaging material is critical
to t$e product and ultimatel- to t$e organi7ationHs success. Le'er #rot$ers Pakistan
Limited purc$ases its most o* t$e contents o* s$ampoo *rom *oreign countries like
America2 %urope and ar %ast. "$e procurement s-stem o* Le'er #rot$ers Pakistan
Limited is mostl- globall- centrali7ed and is long term as +ell. or purc$ase o* local
ra+ material Le'er #rot$ers Pakistan Limited is outsourcing +it$ its suppliers. "$e-
$a'e get 'er- good long term relations$ip +it$ t$eir suppliers o* local ra+ material
as +ell. Hence t$e- get t$e 9uantit- discounts and manage lead time as +ell.
Primar- Acti'ities O* @alue C$ain O* Le'er #rot$ers Pakistan Limited
!nbound Logistics O* @alue C$ain O* Le'er #rot$ers Pakistan Limited
8. Le'er #rot$ers Pakistan Limited is *ocusing on t$e outsourcing *or t$e
purc$ase o* basic inputs +it$ t$eir suppliers. !nstead o* back+ard integration t$e-
belie'e in outsourcing +$ic$ reduces t$eir cost.
C. Le'er #rot$ers Pakistan Limited *aces $ig$ leadGtime *or t$e global
purc$ase o* its imported ra+ materials but automatic replenis$ment s-stem $as
sol'ed t$is problem. Le'er #rot$ers Pakistan Limited is all t$e time connected 'ia its
management in*ormation s-stem +it$ t$eir suppliers.
:. Sualit- and reliabilit- o* ra+ material *or s$ampoo product line is c$ecked
and reconcei'ed b- t$e Le'er #rot$ers Pakistan Limited at 64ed inter'als as t$e-
$a'e centrali7ed bu-ing s-stem.
Operations
8. Le'er #rot$ers Pakistan Limited $as been in s$ampoo product line since
8BA;. ,it$in t$ese 8> -ears t$e- $a'e got e4perience. %4perience eDect $as raised
eNcienc-2 t$e- $a'e 'er- old operations and product met$od as t$ere $as been no
major turn around in production met$ods o* its s$ampoo.
C. Le'er #rot$ers Pakistan Limited $as a *actor- at Ra$im Yar 5$an in +$ic$
t$e- produce diDerent products arra- +it$ s$ampoo2 capacit- o* t$is plant $as been
designed in suc$ a +a- t$at in current demand t$e- get t$e economies o* scale
'er- easil- +$ic$ reduces cost o* manu*acturing o* (unsilk and Li*ebuo- on t$is
basis t$e- oDer lo+er prices as compared to PF0.
:. (ince Le'er #rot$ers Pakistan LimitedHs bu-ing is centrali7ed same is t$e
case +it$ production and operations met$ods as +ell. Ra$im Yar 5$an $as to *ollo+
t$e prede6ned production process gi'en b- parent $ead oNce o* Le'er #rot$ers
Pakistan Limited. Hence production process o* bot$ (unsilk and Li*ebuo- is reliable
i.e. t$ere is no Ouctuation. "$is element gi'es reliabilit- to 6nal consumer.
Out #ound Logistics
8. inal product o* s$ampoo o* Le'er #rot$ers Pakistan Limited is s$ipped to
its > depots 'ia truck on t$e demand o* t$ese depots. ,$ole (ellers $a'e to add
'alue t$emsel'es. "$e- bear t$is cost o* transportation. Hence Le'er #rot$ers
Pakistan Limited $as suppliers and ,$ole (ellers po+er o'er its +$olesalers and
gi'es cost cutting edge.
C. Le'er #rot$ers Pakistan Limited co'ers all t$e retail and s$opping outlets
o* Pakistan. Le'er #rot$ers Pakistan Limited ensures a'ailabilit- and 'isibilit- o* its
s$ampoos as eac$ and e'er- large store2 medium si7e stores2 small s$ops. 8EEM
co'erage o* outlet is t$e major strengt$ o* Le'er #rot$ers Pakistan Limited.
Marketing And (ales
8. Poor Marketing
Le'er #rot$ers Pakistan Limited $as 'er- poor marketing o* t$eir product. "$e-
concentrate onl- on 1&abila3 as t$eir celebrit-. "$e- mainl- *ocus on *emales *or
(unsilk and ignore t$e rest potential marketT males and kids. !n case o* Li*ebuo-
t$e- *ocus onl- on males and ignore *emales and kids +$ic$ reduces t$eir market
s$are as compared to PF0Hs s$ampoo Penteane2 Head F ($oulder.
C. Le'er #rot$ers Pakistan Limited $as no strateg- to make good relations
+it$ retailers. "$is element destro-s t$eir repute in retailer class t$e- do pre*er PF0
and competitorHs s$ampoo to recommend it to bu- and t$e- gi'e more s$el* space
to PF0Hs s$ampoos as compared to Le'er #rot$ers Pakistan LimitedHs (unsilk and
Li*ebuo-.
:. Le'er #rot$ers Pakistan Limited $as ne'er oDered an- major incenti'e2
discount or pri7e sc$eme to retailers on its s$ampoos +$ic$ t$e retailers o*ten
demand. Retailers t$ink t$at pri7e incenti'es +it$ product or an- ot$er pri7e
sc$eme oDered to retailers or consumer etc en$ance sales. Le'er #rot$ers Pakistan
Limited $as ne'er paid an- $ead to it.
(er'ices
Le'er #rot$ers Pakistan Limited $as good 1ser'ice3 in terms t$e- oDer *ree samples
*or t$e relaunc$ o* (unsilk2 +$ic$ $elps as a primar- acti'it-.
A "ransition !n @alue C$ain
Le'er #rot$ers Pakistan Limited is no+ *ocusing as e4tended 'alue c$ain i.e. t$e-
are outsourcing +it$ t$eir suppliers and subcontracting +it$ t$em to ensure
reliabilit- o* ra+ material.
#e*ore t$is supplierHs outsourcing t$e- alread- $a'e connected +it$ t$eir customers
+it$ t$eir strong RF/ /epartment. #ut one o* t$ing in +$ic$ t$e- lagHs in t$e- $a'e
centrali7ed long term strateg-2 *ormulated on s-stem and implementation o* results
o* RF/ /epartment researc$ based on customer connection in 'er- late.
Hence all t$e abo'e indi'idual acti'ities <i.e. primar- and supporti'e acti'ities=
contribute to en$ance customer 'alues and ultimatel- impro'es 6rmHs 6nancial
per*ormance.
Le'er #rot$ers Pakistan Limited becomes able to incur lo+er costs +$ic$ leads to
$ig$er pro6t margins.
(,O" Anal-sis
"$e (,O" anal-sis o* Le'er #rot$ers Pakistan Limited are as *ollo+sJ
(trengt$s
8. Unile'er PLC %ngland t$e parent compan- all o'er t$e +orld gi'es
assistance to Le'er #rot$ers Pakistan Limited so Le'er #rot$ers Pakistan Limited
enjo-s a $ig$ le'el o* support *rom Unile'er.
C. Anot$er major source o* strengt$ *or Le'er #rot$ers Pakistan Limited is its
product targeting all income groups. Le'er #rot$ers Pakistan Limited is pro'iding
products total income groups i.e. pro'iding 9ualit- +it$ econom- as +ell e.g. ,$eel
+as$ing po+der2 #ree7e beaut- soap2 "a7a C$ai2 etc.
:. Le'er #rot$ers Pakistan Limited is t$e oldest compan- operating in
Pakistan +$ic$ gi'es $im a commanding position is Pakistan to certain e4tent.
;. Le'er #rot$ers Pakistan Limited enjo-s t$e ser'ices o* $ig$l- pro*essional
management in t$e area o* sales2 marketing2 tec$nical and production.
5. Le'er #rot$ers Pakistan Limited $as suc$ a strong good+ill in t$e market
t$at some o* its brand names $as become t$e generic names *or t$ose products
suc$ as (ur* *or detergents and /alda *or g$ee.
>. Le'er #rot$ers Pakistan Limited is t$e largest producer o* consumer
products in Pakistan and $as strong brands in e'er- 6eld suc$ as Close Up2 /alda2
(ur*2 Li*ebuo-2 Lu42 etc.
?. Le'er #rot$ers Pakistan Limited $a'ing t$e biggest s$ares in tea market
$a'ing t$e biggest brand Lipton and #rooke #ond.
A. "$e- are market leader in ice cream business o* Polka i.e. $ori7ontal
integration +it$ $ostile takeo'er t$e- $a'e captured t$eir competitors t$ereb-
reducing competition.
B. "$e compan- $as t$e assets o* more t$an 5 billion. (o2 it can in'est
*urt$er product inno'ation and de'elopment.
8E. !t $as t$e largest and eNcient distribution net+ork t$en an- its
competition.
88. Le'er #rot$ers Pakistan Limited is t$e onl- compan- in Pakistan +$ic$ $as
its o+n corner researc$ department.
8C. "$e compan- is 'er- strong 6nanciall-.
8:. "$e compan- is +orking *or almost 5E -ears in Pakistan. "$atHs +$- it $as
man- ad'antages. ,$ic$ ot$er do not $a'e. "$e- $a'e kno+ $o+ o* t$e market.
"$e- understand t$e market 'er- +ell. (imilarl- during t$is period t$e- $a'e
de'eloped a 'er- organi7ed distribution net+ork all o'er t$e countr-. Anot$er
ad'antage is t$ere +ide range o* products2 +$ic$ gi'e t$em a position to
monopoli7e t$e retailerHs s$op. !t is estimated t$at o'er more t$an :EM o* a
retailerHs s$op items are b- t$is single compan-.
,eaknesses
8. Le'er #rot$ers Pakistan Limited unable to capture s$ampoo and
toot$paste market i.e. lo+ market s$are.
C. &e+ 'ariants o* t$e compan- +ere not able to sustain in t$e market suc$
as $armon-.
:. Le'er #rot$ers Pakistan Limited is relati'el- +eek in t$eir inno'ation
department i.e. being 6rst to introduce (ur* but a*ter t$at $as no major inno'ation.
;. %mp$asi7ing onl- *e+ products +$ile ignoring ot$ers +$ic$ could gi'e
t$em potential market s$ares e.g. be'erages section.
5. Le'er #rot$ers Pakistan Limited go *or long term strategies *or all t$eir
product categories +$ic$ pro'e to be a +eakness +it$ c$ange in t$e circumstances
and taste2 trends o* people
Opportunities
8. ,it$ t$e $elp o* *urt$er ad'ertising t$eir non competing brands can
increase t$eir market s$are i.e. market penetration strateg-. People +ill de6nitel- go
*or t$ese products as Le'er #rot$ers Pakistan Limited $as a sound image in peopleHs
mind. ,$ate'er t$e brand is being sold is mostl- on t$e basis o* brand lo-alt-.
C. "$e- $a'e capital to in'est t$e- can e4plore ne+ product categories e.g.
in *ood and be'erages t$e- can de'elop ne+ products like Ra*$an $as launc$ed
custard2 jell-2 k$eer mi42 rasmalai mi42 etc. t$roug$ it again +ill broaden t$eir
product categories and +ill make t$eir operations comple4 but t$is could be a'oided
+it$ 1sub contracting3 i.e. strategic partners$ip +it$ t$eir suppliers. "$ese products
can pro'e a 1cas$ co+s3 as customer in Pakistan al+a-s +elcome *ood items
especiall- t$e- +ill +elcome due to brand image o* #lue #and and /alda g$ee in
*ood categor- and due to Lipton and (upreme in be'erages categor-.
:. Le'er #rot$ers Pakistan Limited relaunc$es most o* its products +it$
same name or little c$ange in t$e name e.g. (ur* Micro to (ur* %4tra2 2t$en to (ur*
Ultra and t$en to (ur* %4cel2 +it$ little c$ange o* name and little c$anges in its
*ormula. !* Le'er #rot$ers Pakistan Limited launc$ its products +it$ in pre'ailing
product categories2 +it$ entirel- ne+ name and ne+ *ormula t$en t$e- can capture
ne+ market s$ares as it +ill gain capture t$e attention o* its target market more as
compared to e4isting one. "$oug$ apparentl- it +ill increase t$e ad'ertising cost
but it +ill be compensated +it$ e4citing sales as -ou $a'e to ad'ertise more e'en in
case o* relaunc$ o* products +it$ little c$ange in names and *ormulas. (o +$- not to
go *or ne+ name and ne+ *ormula as it +ill increase -our brand port*olio2 it can
satis*- t$e needs o* customers +$ic$ +ere unsatis6ed +it$ t$e pre'ious brands2 its
names2 its *ormula2 e.g. people used to sa- (ur* *ades t$e clot$es2 t$e- c$anged
*ormula and not name onl- ga'e it a suN4 o* %4cel i.e. (ur* %4cel no+ t$e people
+$o de'eloped t$is perception t$at it *ades t$e color2 remain reluctant *or long time
e'en a*ter its relaunc$ and $ea'- ad'ertisement.
"$reats
8. PF0 is gi'ing 'er- serious t$reats to Le'er #rot$ers Pakistan Limited in t$e
business o* detergents and personal +as$ and s$ampoos.
C. &o o* local companies producing detergents and market t$em at 'er- lo+
prices +$ic$ is a t$reat to (ur*.
:. !n t$e case o* g$ee and oil business Habib is gi'ing 'er- toug$ competition
to Le'er #rot$ers Pakistan Limited b- introducing its 'ariet- o* products.
;. "reat is promoting #od-guard 'er- muc$ and tr-ing to produce a
competition in t$e carbolic soap market.
5. !ncreasing inOation in t$e countr-2 persistentl- reducing t$e purc$asing
po+er o* t$e people and dropping people *rom $ig$ price products to lo+ price
products e.g. t$e detergents and pro'iding *uel to t$e e4pansion o* unorgani7ed
sector.
>. !ncreased import duties are also adding to t$e prices o* t$e products and
in Pakistan +$ic$ is a 'er- price *or all t$e 6rms not onl- Le'er #rot$ers Pakistan
Limited +$o are using imported ra+ material.
?. "$reats o* ne+ entrants are also present. As !C! is a potential t$reat in
detergents industr-2 because t$e- are alread- in'ol'ed in c$emical business and
pro'iding ra+ material *or detergent production to diDerent manu*acturing
companies like Le'er #rot$ers Pakistan Limited and Colgate Palmoli'e.
P%(" Anal-sis
P%(" anal-sis is used to assess t$at +$at en'ironmental *actors aDecting diDerent
organi7ation and +$ic$ o* t$em are more important and $o+ t$e- aDect t$e
organi7ation. !t is indicator o* political2 economical2 social and tec$nological
inOuences on organi7ation.
Political F Legal actors
As *ar as t$e Le'er #rot$ers Pakistan Limited concerns according to t$em t$at
political instabilit- $a'e do aDect but not particularl- Le'er #rot$ers Pakistan
Limited same as it aDects an- ot$er organi7ation around and speciall- t$e- are in
consumer products business +$ic$ ne'er make t$em out o* business.
!n case o* legal *actors2 an- trade polic- or import duties is not aDecting particularl-
Le'er #rot$ers Pakistan Limited. !n Pakistan rig$t no+ *ollo+ing liberali7ation polic-
under (AP b- !M made +$ic$ t$e- $a'e to +ai'e oD all restrictions and moreo'er
due to $uge in'estment b- Le'er #rot$ers Pakistan Limited no go'ernment can
aDord to create $urdles in t$e +a- o* an organi7ation like Le'er #rot$ers Pakistan
Limited.
And t$e- donHt $a'e to go *or onl- lobb-ing or +$at so e'er as not action o* Pakistan
go'ernment $as aDected t$em ad'ersel- as suc$.
%conomical actors
%conomical *actors aDect Le'er #rot$ers Pakistan Limited in t$e same +a- as it
aDect an- ot$er organi7ation like current economic situation in Pakistan and
inOation $as reduced consumerHs disposable income too2 +$ic$ in turn $as reduced
t$e purc$asing po+er o* consumer but aDect is same *or e'er- organi7ation and
according to t$em Le'er #rot$ers Pakistan Limited $a'e edge t$at t$e- $a'e
targeted all possible segments t$roug$ t$eir 'ast product categor- i.e. t$e +idt$
and lengt$ too. (o one +a- or ot$er t$e- 6nd +a- to co'er it up.
Capital Markets
!n ot$er economic *actors like 1interest rates3 and 1inOation3 $as aDected t$e
borro+ing abilit- o* organi7ation but Le'er #rot$ers Pakistan Limited sta-ed
unaDected as a compan- $a'ing business in billions and +$en in need o* 6nancing
no single bank can *ul6ll t$e need2 t$e- $a'e to make a consortium to 6nance Le'er
#rot$ers Pakistan Limited and +it$ 'er- good credit standing and 'er- lo+ risk
de6nitel- t$e- get t$e lo+est or justi6ed interest rate as +ell.
(ocioGCultural actors
!n socioGcultural *actors2 *actors like li*est-le c$anges and le'el o* education aDects
an organi7ation. !n case o* c$ange in li*est-le2 t$e +orld $as con'erted into global
to+n no+ and people $a'e readil- access to e'er- sort o* in*ormation and t$e- are
becoming more 9ualit- conscious. &o+ more concerned to+ards en'ironmental
issues no+ and demand more social responsibilit- on t$e part o* organi7ations no+.
"o cope up +it$ all t$ese *actors no+ Le'er #rot$ers Pakistan Limited +$ic$ al+a-s
maintained t$e 9ualit- standards needs to +ork to+ards ot$er social *actors like
social responsibilit- and en'ironmental concerns like PF0 did in its Arial campaign
and image o* a societ- responsible organi7ation.

"ec$nological actors
!n tec$nological *actors comes RF/ 6rst and *oremost t$at $o+ muc$ an
organi7ation spending in terms o* product impro'ement or de'elopment o* ne+
products or impro'ement in production process or in t$e ra+ material etc. and +$at
is t$e trend in t$e industr- as Pakistan is not t$at big and not 'er- muc$ inno'ation
seeking as t$e ot$er de'eloped countries. Yet t$e- keep on 6nding ne+ +a-s o*
doing t$ings and ne+ t$ings as +ell t$e- continuousl- launc$ed 'ariants in brands
etc. and moreo'er in t$e market like Pakistan in product categories o* consumer
products 1rates o* obsolescence3 is not 'er- $ig$ rat$er 'er- slo+ so no great
pressure to launc$ ne+ products2.
Ot$er t$an t$e *actors smuggling aDects Le'er #rot$ers Pakistan LimitedHs sales
'er- negati'el-. "$is issue +ould be discussed more in detail in t$e problem
statement.
Problem (tatement
Our problem statement is regarding t$e s$ampoo segment o* Le'er #rot$ers
Pakistan Limited. "$e- $a'e managed suc$ a deep and broad product categor- and
manage to do so +ell t$at some o* t$eir brand name $as become t$e generic
names *or t$at particular product but t$is is not t$e stor- +it$ (unsilk and recentl-
launc$ed Li*ebuo- ($ampoo. Our problem statement is t$at +$at are t$e causes2
+$ic$ kept Le'er #rot$ers Pakistan Limited a+a- *rom market leader position in
s$ampoo market.
Problems
,$ene'er +e look *or t$e problems o* compan- its problems can be bi*urcated into
t+o broader categories.
8. !nternal problems
C. %4ternal problems
!nternal problems
"$ese problems are normall- *aced b- organi7ation due to elements2 *actors and
+eaknesses +$ic$ are present inside or +$ic$ are e4isting internall- in t$e
organi7ation e.g. problems due to organi7ational policies2 culture2 structure2
in*ormation s$aring net+orks2 organi7ational strategies or e'en emplo-ees2 t$e-
can be positi'e *orce and t$e problem c$ild as a source o* internal problem as +ell.
8. Compan-Hs management rel- on long term strategies +$ic$ t$e- recei'e
read- made *rom t$eir parent compan-2 $ead oNce as a modus operandi. And
$ence a strateg- or a polic- appro'al2 *ormulated and implemented 5E -ears back
becomes obsolete and discard in pre'ailing scenario and c$anging en'ironment e.g.
in t$eir ad'ertising campaigns o* (unsilk s$ampoo t$e- onl- use 1&abila3 as t$eir
celebrit- <Hair %4pert= and t$e- $a'e ne'er tried an- ot$er sports or 6lm media
celebrit- *or t$e promotion o* t$eir product +$ic$ t$eir competitors use e4tensi'el-.
Here in t$is 6eld t$e- lag be$ind due to t$eir long term strateg- e'en in 6eld o*
ad'ertising gi'en b- t$eir parent $ead oNce.
Hence being an inOuenciable organi7ation t$e- e4$ibit bureaucratic management
st-le t$e- +ant to maintain t$eir status 9uo be*ore t$ese en'ironmental c$anges
like ad'ertising trend.
C. ONces and branc$es o* Le'er #rot$ers Pakistan Limited are normall-
placed in domestic setup especiall- Multan branc$2 since it is a marketing
organi7ation2 its oNce outlook and location must be in pro*essional and +ell to do
area +$ic$ +ill contribute in proper *unctionalit- o* branc$ and its emplo-ees as
+ell. "$is se'ere problem is being *aced b- Multan branc$ o* Le'er #rot$ers
Pakistan Limited as +ell.
:. Management team o* Le'er #rot$ers Pakistan Limited normall- arrange
e4cessi'e operational meeting2 t$e- $a'e less emp$asis on t$e strateg-
implementation part as compared to strateg- *ormulation and planning.
;. All t$e decisions regarding product planning2 de'elopment2 distribution
and e'en targets o* t$e branc$es are centrali7ed and are in $ands o* central sales
oNce o* Le'er #rot$ers Pakistan Limited. "$e- donHt belie'e in M#O <Management
b- objecti'es=. #ranc$es are gi'en inOe4ible targets o* sales P t$oug$ data on t$ese
branc$ managers negotiate t$is 6gure but it takes too long.
5. /ue to $ea'- capital in'estment in t$eir brands Le'er #rot$ers Pakistan
Limited is unable to obser'e t$eir slo+ mo'ing brands +$ic$ create a cost burden.
>. (ince remo'ing oldLdiscarded brand is 'er- e4pensi'e due to e4pensi'e
installed mac$iner-2 tec$nolog- and capital in'estment2 launc$ing ne+ brand is also
'er- e4pensi'e *or Le'er #rot$ers Pakistan Limited due to t$e same reason. As to
launc$ a ne+ brand complete researc$ and de'elopment setup is re9uired +$ic$ is
inOe4ible and can not be reGutili7ed *or anot$er brand along +it$ its consumer
market is $ea'il- Oooded +it$ products2 t$ere is 'er- lo+ probabilit- t$at market
+ill absorb ne+ brands.
?. ,$ene'er Le'er #rot$ers Pakistan Limited launc$ an- product t$e- 6rst
launc$ it in !ndia i* product pro'es a 1big success3 t$e- tr- it in Pakistan +$ic$ is not
a good strateg- due to cultural diDerence and religious diDerences.
A. Le'er #rot$ers Pakistan Limited $as 'er- poor relations$ips +it$ t$eir
dealers and retailers. "$e- are *ar a+a- *orm t$eir competitors like PF02 in case o*
retailer relations$ip. "$eir brand manager makes 'er- rare 'isits to t$e retailers to
kno+ t$eir problems2 'er- little discounts are oDered b- Le'er #rot$ers Pakistan
Limited to t$eir retailers. &o pri7e sc$eme and incenti'e is gi'en to dealers2
retailers2 +$olesalers o* Le'er #rot$ers Pakistan Limited. %'en Le'er #rot$ers
Pakistan Limited brand manager ne'er bargain on t$e proper and prominent s$el*
space o* t$eir s$ampoos <(unsilk and Li*ebuo-=.
B. Le'er #rot$ers Pakistan Limited $as not been able to place an- c$eck on
its smuggling s$ampoos into Pakistan e.g. !ndonesian (unsilk is made according to
t$e demograp$ic o* !ndonesia2 +$en it +ill be used in Pakistan it +ill damage t$e
$air o* people2 +$ic$ deteriorate t$e brand image. ,$ic$ create problem on local
sales o* Pakistan.
8E. %mplo-ment insecurities in Le'er #rot$ers Pakistan Limited also contribute
negati'el- to+ards t$e per*ormance o* branc$ operations. All branc$ managers2
brand managers and operation are trans*erred +it$in branc$es o* Le'er #rot$ers
Pakistan Limited allo'er Pakistan. "$is create an uncertaint- among management
team2 ne+ managers takes muc$ time to settle in ne+ branc$ and to understand
ne+ setup o* branc$ and ne+ dealers net+ork. "$is aDects t$e branc$ operations
and per*ormance.
%4ternal problems
Le'er #rot$ers Pakistan Limited is not *acing an- prominent e4ternal problem as
alread- anal-7ed in P%(" anal-sis.
!ntroduction O* (unsilk And Li*ebuo-
(unsilk ($ampoo
Le'er #rot$ers Pakistan Limited stepped into s$ampoo business in 8BA; +it$ (unsilk
initiall- +it$ onl- t+o 'ariantsJ
8. (unsilk <egg s$ampoo=
C. (unsilk <s$ikaki s$ampoo=
"$is +as t$e 6rst branded s$ampoo in Pakistani market t$en t$e- launc$ed anot$er
s$ampoo named as 1Clinic3 in 8BA5. or t$e reason t$at no ot$er competitor +as
t$ere in t$e market t$eir sales 6gures +as $ig$ in start2 but as s$ampoo market
started to de'elop and imported s$ampoo and ot$er competitors entered into t$e
market t$eir sales started declining so t$e- reGlaunc$ed it as 1Clinic Plus3. /ue to
t$eir poor marketing in BEs Clinic Plus *aced big *ailure. "$e sales o* Clinic Plus +as
not up to t$e e4pectations o* t$e compan- and t$e- abandoned t$e production o*
Clinic Plus. "$e- $a'e recentl- launc$ed t$e brand +it$ t$e ne+ name and ne+
*ormula <as t$e- claim= named as 1Clinic All Clear3 dandruD s$ampoo.
Compan- reGlaunc$ed (unsilk s$ampoo +it$ *ollo+ing 6'e 'ariants in 8BBAJ
(unsilk #lack *or dull $air
(unsilk Yello+ *or normal $air
(unsilk 0reen *or t$in $air
(unsilk Pink *or dr- $air
(unsilk Orange *or oil- $air
"$e- promoted t$ese 5 'ariants $ea'il- but t$is could not get t$em t$eir market
s$are back due to entr- o* strong competitors like PF0 <Pentene2 Pert Plus2 Rejoice2
Head F ($oulder=2 #io Amla F ot$er imported s$ampoos as t$ese s$ampoos got
more s$el* space in t$e retail outlets.
Le'er #rot$ers Pakistan Limited again reGlaunc$ed t$e (unsilk at t$e end o* 8BBB
+it$ 8C diDerent 'ariants +it$ ne+ name o* *ruitamines. &o+ t$e *ocus +as on
diDerent kind o* $air i.e. $o+ man- 'ariation o* (unsilk are t$ere +it$ aspect o*
ingredients and contents. "$en t$e- reduced t$eir *rutamines (unsilk to si4
'ariants. &o+ +it$ launc$ o* ,$ite (unsilk t$e- $a'e se'en 'ariants o* (unsilk.
Li*ebuo- ($ampoo
Le'er #rot$ers Pakistan Limited also tried to encas$ its anot$er 'er- popular brand
name Li*ebuo- soap +$ic$ +as popular among lo+er income segment. "$e-
launc$ed Li*ebuo- s$ampoo using t$is brand name in 8BBA. !nitiall- it +as
success*ul according to t$e retailers e'er- one +as asking about it and asked *or
retailers opinion as +ell. #ut it Oopped badl- because it +as mainl- targeted
to+ards lo+er and middle income segment and Le'er #rot$ers Pakistan Limited
+anted t$is segment to s+itc$ *rom bat$ soap to s$ampoo and +anted to de'elop
s$ampoo market in t$is segment as +ell. #ut t$is class did not s+itc$ed to Li*ebuo-
s$ampoo because t$e- +ere in $abit o* using soap *or +as$ing t$eir $air2 more o'er
t$e- did not 6nd an- t$ing uni9ue and ne+ about t$e s$ampoo. Ot$er t$an being
li9uid. (o2 t$e- again returned to Li*ebuo- soap.
(,O" Anal-sis O* ($ampoo Product Line
(trengt$s
8. Le'er #rot$ers Pakistan Limited $as a good name as a market leader in
consumer products t$is image al+a-s $elp its s$ampoo product line. Customer are
brand lo-al and o* s$ampoo product line.
C. People $a'e *a'orable opinions about (unsilk t$at its contents do not
include an- $arm*ul c$emicals +$ic$ could damage t$eir $air.
:. irst trial image o* user are positi'e and t$e- are generall- brand lo-al.
;. (unsilk and Li*ebuo- s$ampoos users belie'e t$at it is economical. /ue to
cost leaders$ip strateg- o* Le'er #rot$ers Pakistan Limited in s$ampoo product line.
5. "$e- $a'e recentl- launc$ed antidandruD s$ampoo <+$ite 'ariant= +it$
additional *eature o* conditioner +$ic$ $as been $ig$l- 'alued b- t$e customers. !t
is competing success*ull- +it$ PF0Hs s$ampoos +$ic$ +ere alread- $a'ing
conditioner in t$em.
,eaknesses
8. Packaging o* (unsilk and Li*ebuo- s$ampoo is t$e biggest +eaknesses o*
Le'er #rot$ers Pakistan Limited. Retailers complaint t$at one leaked bottle o*
(unsilk spoils t$e +$ole lot. #ut Le'er #rot$ers Pakistan Limited do not pa- an-
$ead to it.
C. Ad'ertisement o* (unsilk does not promote t$e product 'er- +ell rat$er its
celebrit- like 1&abila3 is promoted. "$e- donHt s+itc$ t$eir celebrit- as t$e- $a'e to
*ollo+ long term promotion and ad'ertising designed b- t$eir $ead oNce as %lida
<rance= $as al+a-s used beaut- e4pert as t$eir celebrit-.
:. "$e- *ocus on onl- *emales in t$eir ad'ertisement and t$e- $a'e ignored
t$eir bigger segment o* males.
;. Le'er #rot$ers Pakistan Limited does not pa- an- attention on t$e
incenti'es and discounts gi'en to t$e distributors and retailers.
5. (ales manager2 brand manager and sales representati'es do not conduct
an- personal 'isits to t$e retail stores +$ic$ gi'es t$em dissatis*action.
>. Le'er #rot$ers Pakistan Limited does not pa- an- attention to t$e s$el*
space gi'en to t$e (unsilk in t$e retail stores. "$e store manager o* 1Range3 told us
t$at t$e brand manager o* Le'er #rot$ers $as ne'er been 'isited t$eir store and
t$e- e'en ne'er bot$ered about t$eir s$el* space.
?. /ue to 'er- $uge number o* 'ariants in (unsilk2 Le'er #rot$ers Pakistan
Limited 6ned it 'er- diNcult to *ocus on particular 'ariants and it created con*usion
among customers as +ell and increased comple4it- o* operations to a large e4tent
and created cannibali7ation eDect. "$oug$ recentl- t$e- $a'e reduced t$eir
'ariants o* (unsilk *rom 8C to > and t$en launc$ed anot$er one (unsilk +$ite. (till it
needs *urt$er reduction.
Opportunities
8. /ue strong compan- image and strong distribution net+ork i* t$e-
promote t$eir products t$roug$ incenti'es2 bonuses2 allo+ances and discounts to
t$e retailers t$e- can get better s$el* space in t$e displa- stores o* retailers
especiall- in s$ampoo product line.
C. Le'er #rot$ers Pakistan Limited $as 'er- strong and resource*ul researc$
department. "$e- can conduct t$roug$ t$eir personnel in all o'er Pakistan bot$ in
rural and urban areas and $ence t$e- can launc$ t$e ne+ s$ampoo +it$ ne+
*ormula and +it$ ne+ name. or t$is t$e- $a'e suc$ a big port*olio t$at t$e- can
aDord its cost and returns +ill be ma4imi7ed as a result o* increased sales +$ic$ +ill
de6nitel- oDset t$e cost and +ill result in ma4imum market s$ares.
:. People $a'e ignored t$e relaunc$ o* (unsilk and its diDerent oDered
'ariants. Le'er #rot$ers Pakistan Limited s$ould implement t$e idea o* launc$ing
t$e ne+ s$ampoo +it$ ne+ name and ne+ *ormula because o* t$is t$e- +ell be
better able to attract target market.
"$reats
8. All ne+ and e4isting and important s$ampoo and branded soaps2 +$ic$
are used2 as s$ampoos are t$e t$reats *or t$e s$ampoo product line o* Le'er
#rot$ers Pakistan Limited especiall- (unsilk. (ince people are not t$at muc$ price
sensiti'e in case o* s$ampoo but t$e- $a'e more concern about t$e ingredients2
*ormula and 9ualit- o* t$eir s$ampoo.
C. Competitors o* Le'er #rot$ers Pakistan Limited like PF0 $a'e 'er- strong
relations +it$ retailers and distributors +$ic$ is greater t$reat to t$e (unsilk. "$e
detail o* discounts oDered b- PF0 re as *ollo+edJ
Order in Rs.
/iscount in M
#elo+ 5E2EEE
CG:M
Abo'e 5E2EEE
5G>M

,$ile Le'er #rot$ers Pakistan Limited oDers e'en less t$an t$e abo'e stated
discounts on (unsilk and Li*ebuo- s$ampoos.
CompetitorsH Anal-sis
"$e major competitors o* (unsilk can be categori7ed in t+o +a-s <all percentages
$a'e been pro'ided b- Le'er #rot$ers Pakistan LimitedJ
8. /irect competitors ?5M
C. !ndirect competitors C5M
/irect Competitors
"$ese competitors are in terms o* product categor-. ,it$ re*erence to t$e product
categor- +e can di'ide users o* s$ampoo into *ollo+ing segmentsJ
Upper Class
"$is class normall- use Pentene2 Head F ($oulder2 Pert Plus. "$ese s$ampoos are
gi'ing toug$ competition to (unsilk.
Middle Class
"$is segment is normall- using s$ampoos in *ollo+ing percentageJ
UAll t$e percentages $a'e been pro'ided b- L#PL.
(r. &o.
($ampoo
Percentage
8
#io Amla
8E
C
Head F ($oulder
CE
:
Pentene
:5
;
Pert Plus
C5
5
(unsilk
8E

#io Amla
&ormall- -oung girls and +omen +ant lengt$- $air and tr- to a'oid split edges o*
$air so t$e- pre*er #io Amla. "$is is a s$ampoo +$ic$ $as t$e largest number o*
liters sales in Pakistan. Onl- lo+er middle and middle group people are using #io
Amla.
Head F ($oulder
CEM s$ampoo users are using Head F ($oulder as t$e- are dandruD conscious
people. BBM o* t$e people are inOuenced b- t$e ad'ertisement o* Head F ($oulder
on dail- use to get rid o* dandruD and more o'er t$e- re getting t$e promised
results. "$e- $a'e targeted bot$ males and *emales due to +$ic$ t$e- $a'e got
more number o* s$ares in market.
Pentene
Pentene is t$e strongest $air care product o* PF0 bot$ *ormula and ad'ertisement
+ise. As alread- e4plained t$e- are gi'ing top incenti'e to retailers and distributors.
PF0 sales staD pa- more 'isits to t$eir retailers and stores to c$eck t$e s$el* space
o* t$eir s$ampoo. "$us due to t$ese eDorts t$e- are getting :5M o* market s$are.
Pert Plus
"$is s$ampoo is almost getting C5M o* market s$ares and it is also a 'er- strong
brand o* PF0. PF0 $as targeted on -oung bus- people +$o +ant st-lis$ $air +it$in
6'e minutes. (o t$e need o* separate conditioner is also committed.
(unsilk
Rest o* t$e market s$are i.e. onl- 8EM is +it$ (unsilk.

(ales Anal-sis
&o+ +e +ill discuss brieO- onl- Pentene and (unsilk *rom retailers point o* 'ie+ i.e.
$o+ muc$ order are generall- placed b- retailers in a mont$.
8. Pentene o* PF0
C. (unsilk o* Le'er #rot$ers Pakistan Limited
Pentene O* PF0
According to t$e retailers like Range F Prince (tore and ot$er small s$op keepers2
normall- place *our order in a mont$ i.e. t$e s$el* space is re6lled E; times in a
mont$ or e'er- +eek due to t$e increased sales o* Pentene. !t reOects t$e $ig$est
turno'er o* Pentene.
(unsilk O* Le'er #rot$ers Pakistan Limited
On t$e ot$er $and onl- one order is normall- placed in mont$ b- retailers due to t$e
lo+ demand b- consumers. Hence t$e s$el* space o* (unsilk is re6lled 8C times in a
-ear or once in a mont$. ,e can sa- t$at ratio *or order placement is 8J; *or (unsilk
and Pentene respecti'el-. !n ot$er +ords ?5M o* t$e orders are o* Pentene and onl-
C5M o* t$e orders are secured b- (unsilk i* +e compare onl- t$ese t+o.
!ndirect Competitors
!ndirect competitors includeJ
!mported s$ampoos ;EM
#randed soaps :5M
Unbranded s$ampoos and soaps C5M
!mported ($ampoos
Hig$er income segment is 'er- 9ualit- conscious. "$e- are major inno'ators and
'ariet- seekers. "$e- c$ange t$eir s$ampoo more o*ten t$an an- ot$er segment.
"$e- are mostl- inOuenced b- ad'ertisement and +ord o* mout$ or on t$e basis o*
t$e consultation o* t$eir beaut- e4perts.
%4amples o* imported s$ampoos includeJ
8. iness
C. Agree
:. (aloon (electi'e
;. American Pentene <Pentene li'el- clean2 2Pentene Moisture lock=
5. @idal (asoon
>. "emi "ei
;EM o* t$e indirect competition is pro'ided b- t$ese imported s$ampoos.
#randed (oaps
"$ese soaps includeJ
8. Li*ebuo- <Le'er #rot$ers Pakistan Limited=
C. (a*eguard <PF0=
:. #od-guard <"reet=
;. Io$nson F Io$nson <IFI= mainl- targeted on kids
"$ese soaps account *or :5M o* indirect competition.
Unbranded ($ampoos F (oaps
"$e- are unbranded s$ampoos and soaps and are normall- used b- lo+er income
segment. "$ese unbranded soaps and s$ampoos pro'ide a major competition to
Li*ebuo- s$ampoo *or +$ic$ Le'er #rot$ers Pakistan Limited *ocuses on lo+ income
segment. Li*ebuo- soap is also pro'iding indirect competition to Li*ebuo- s$ampoo2
as users o* Li*ebuo- soap $a'e not s$i*ted to Li*ebuo- s$ampoo.
"$ese unbranded soaps and s$ampoos account *or C5M o* indirect competition.
(trengt$s And ,eaknesses O* Competitors
or t$is purpose or major competitor o* concern are PF0 and t$eir s$ampoos like
Pentene2 Head F ($oulder and Pert Plus are pro'iding major competition to (unsilk
and Li*ebuo-.
(trengt$s O* PF0
8. "$eir s$ampoo like PF0 $as conditioner in its +$ic$ Le'er #rot$ers
Pakistan Limited $as onl- in one 'ariant <(unsilk ,$ite=. "$is is most demanding
*eature o* s$ampoo +$ic$ PF0 $as *ocused upon.
C. Ad'ertisement o* PF0 *ocuses on males and *emales bot$ to appeal
potential markets as t$eir customers.
:. PF0 $as 'er- strong relations$ip +it$ t$eir retailers. "$eir marketing and
sales manager bimont$l- 'isits t$ese retailers to get kno+ledge o* t$eir problems.
"$e- pro'ide t$em good incenti'e like discounts i.e. t$ree to *our percent on t$eir
sales2 9uantit- discounts on large sales2 moreo'er t$e- launc$ price sc$emes
continuousl- *or t$eir retailers. Le'er #rot$ers Pakistan Limited $a'e t$is 'er-
$ealt$- strateg- i.e. relations$ip +it$ retailers.
;. PF0 pro'ides transportation *acilities to its distributors and retailers +$ic$
attract t$ese distributors and retailers to bu- t$e PF0Hs s$ampoo as compared to
Le'er #rot$ers Pakistan LimitedHs one.
5. PF0Hs management bargain and stresses more on its prominent s$el*
space +it$ t$eir retailers. !n return o* all abo'e incenti'e not onl- retailers gi'e a
good s$el* space but also promote PF0Hs products.
>. PF0 6lls its s$el* space *our times a mont$s due to its $ig$ demand o*
s$ampoos. ,$ile Le'er #rot$ers Pakistan LimitedHs s$ampoos order are placed once
in a mont$ due to lo+ demand b- retailers. Hence $ig$ sales 'olume is an ot$er
strengt$ o* PF0Hs.
,eaknesses
8. People $a'e perception t$at PF0Hs s$ampoo <e.g. Pentene= $as $arm*ul
c$emical2 it causes *all o* $air. !t is a +eaknesses o* PF0 people t$ink t$at it so*tens
t$e $air and gi'es silk- touc$ but it causes t$e $air *all.
C. "$oug$ t$ere is not too muc$ big diDerence o* price o* (unsilk and
Pentene but people percei'e t$at Pentene and PF0Hs s$ampoo are o* $ig$ prices.
/ue to t$is t$e- *ace competition *rom Le'er #rot$ers Pakistan Limited. #ut no+
t$e- $a'e o'ercome t$is element b- price reduction i.e. *rom Rs. 8CE to Rs. BB i.e.
just one rupee belo+ t$e retail price o* (unsilk <retail price o* (unsilk *amil- si7e
bottle is Rs. 8EE=.
%4isting (trategies O* (unsilk
"$e strateg- rat$er group o* strategies adopted b- Le'er #rot$ers Pakistan Limited
*or (unsilk are as *ollo+sJ
our main groups o* strategies are a'ailable to us i.e.
8. Product de'elopment
C. Market de'elopment
:. Market penetration
;. /i'ersi6cation
Out o* t$ese *our strategies Le'er #rot$ers Pakistan Limited $as adopted t$e market
de'elopment strategies i.e. 6nding ne+ market or target customers *or t$e (unsilk
in case o* launc$ing s$ortl- ne+ 'ariant o* (unsilk ,$ite antidandruD and second
strateg- *ollo+ed is di'ersi6cation +$ic$ t$e- are kno+ about to *ollo+ t$roug$
launc$ing complete $air care package i.e. not onl- s$ampoo but conditioners and
$air d-es and spra-s as +ell. And in t$is strateg- an ot$er group o* subGstrategies
being *ollo+ed is ;GPHs.
Product (trateg-
or product continuous impro'ement strateg- is being adopted i.e. continuousl-
launc$ing diDerent 'ariants in (unsilk. Pre'iousl- launc$ed 8C 'ariants t$an reduced
to > 'ariants2 and no+ launc$ed anot$er 'ariant i.e. (unsilk ,$ite antidandruD.
Pricing (trateg-
Le'er #rot$ers Pakistan Limited $a'e been using mediocre price strateg- i.e.
neit$er too $ig$ nor too lo+ i.e. lo+er t$an PF0 but $ig$er t$an #io Amla ($ampoo.
/ue to cost *ocused strategies t$e- are able to pro'ide customers +it$ lo+ prices as
to retain t$eir target market +$ic$ is mainl- t$e middle class.
Promotion (trateg-
!n case o* promotion2 due to restriction *rom parent compan- and %lida Hair !nstitute
t$e- are bounded to *ollo+ celebrit- beautician *ocused promotional campaigns
<&abila= and entirel- *ocusing t$e *emale segment *or (unsilk ($ampoo.
Placing (trateg-
/istribution strateg- is not diDerent ot$er t$an an- product same distribution
strategies adopted *or complete product line. &o separate or customi7ed strateg-
adopted *or (unsilk.
(uggested (trategies
rom about mentioned *or group o* strategies considering t$e +eakness in$erited in
t$ose strategies and problems *aces b- Le'er #rot$ers Pakistan Limited2 +e +ould
recommend product de'elopment strateg- instead o* market de'elopment. And
no+ implication o* t$is strateg- o'er *our PHs.
Product (trategies
"$e- s$ould launc$ a ne+ product +it$ completel- ne+ brand name instead o*
matured rat$er declining brand name and e4cuse *or not launc$ing a ne+ brand.
Hence as being 'er- e4pensi'e is no e4cuse *or a compan- $a'ing port*olio *or t$e
6nancing o* +$ic$ backs $a'e to make a consortium.

Pricing (trategies
Pricing strategies adopted are 9uite justi6ed.
Promotion (trategies
Main problem lies +it$ promotional strategies being *ollo+ed b- (unsilk using &abila
*or almost last 5G> -ears continuousl-. "$e- s$ould bring a c$ange in t$eir
promotional campaign and s$ould di'ersi*- it not onl- rel- on tele'ision but s$ould
utili7e ot$er sources as +ell2 s$ould $a'e market penetration strateg- eDecti'el-.
Place </istribution= (trateg-
Le'er #rot$ers Pakistan Limited s$ould de'elop long term relations$ip +it$ t$eir
retailers and pro'ide t$em more attention and *ocus on t$em and listen to t$eir
complaints +$ic$ t$e- are not doing rig$t no+ and sales *orce onl- are to pick and
place orders and *ul6llment o* orders and donHt bargain on s$el* space and not
pro'iding an- incenti'e to retailer *or t$e promotion o* (unsilk. (o2 de'elopmental
bene6cial relations$ip +it$ t$e retailers along +it$ +$olesalers.
%4isting (trategies O* Li*ebuo-
(ince Le'er #rot$ers Pakistan Limited $as launc$ed a ne+ product o* Li*ebuo-
s$ampoo on t$e basis o* its e4isting product Li*ebuo- soap. Le'er #rot$ers Pakistan
Limited $as tried to encas$ it generic brand $ence cas$ co+ Li*ebuo- soap in a ne+
*orm Li*ebuo- s$ampoo. (o Le'er #rot$ers Pakistan Limited is *ollo+ing related
di'ersi6cation strateg- in Li*ebuo- s$ampoo. ,it$in t$is group o* strategies ! its ;G
PHs.
Product (trateg-
!n case o* Li*ebuo- s$ampoo t$e- $a'e made a related di'ersi6cation in Li*ebuo-
soap.
Pricing (trateg-
"$e are *ollo+ing cost leaders$ip in Li*ebuo- s$ampoo. "$eir *ocus is on lo+ income
group +$ic$ is alread- lo-al to Li*ebuo- soap due to its lo+ prices. Hence brand
name and brand lo-alt- $as been *ocused.
Place </istribution= (trateg-
%4tensi'e distribution o* Li*ebuo- s$ampoo <*amil- si7ed bottle2 medium to small
si7e sac$e pack= $as been ensured on all retail outlets o* Pakistan +it$ 8EEM
co'erage.
Promotion (trateg-
Li*ebuo- s$ampoo *or t$e promotion o* Le'er #rot$ers Pakistan Limited $as *ocused
on lo+er income segment <due to its lo+ prices= and $as used ($e$7ad Ro- as t$eir
celebrit-. "$ere is no suc$ $ea'- ad'ertisement in case o* promotion o* Li*ebuo-
s$ampoo.
(uggested (trategies
Market Penetration
Le'er #rot$ers Pakistan Limited s$ould use market penetration strateg- in case o*
Li*ebuo- s$ampoo. "$e- s$ould en$ance t$eir ad'ertisement and s$ould boost t$eir
market s$are o* Li*ebuo- s$ampoo +it$ en$anced marketing eDorts.
!mplementation
"$eir *ocus *or promotion on celebrit- is onl- on ($a$7ad Ro- *or lo+er class +$ic$
is not a source o* inspiration *or t$em. (o t$e- s$ould use suc$ ad'ertisement
appeal +$ic$ is based on t$e problems o* lo+ income group and is c$osen to t$eir
real li*e situation.
Market /e'elopment
Market de'elopment is an ot$er proposed strateg- i.e. t$e- s$ould identi*- ne+
markets +it$ e4isting product.
!mplementation
ocus o* Le'er #rot$ers Pakistan Limited in case o* Li*ebuo- is on males +it$
concept o* $ard+orking man. "$e- s$ould capture *emales and kids as +ell +it$
ne+ so*t appeal. or t$is t$e- can gi'e a ne+ name to t$eir e4isting product as +ell2
+$ic$ +ill be 9uite eDecti'e to attract *emales and a potential portion o* middle
income group.




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