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STRATEGIC PLANNING

TABLE OF CONTENTS

1. Introduction.
2. Vision statement.
3. Mission statement.
4. Pestle analysis.
5. Porters 5 forces model.
6. EFE matrix.
7. CPM matrix.
8. IFE matrix.
9. Strategies in Action.
10. Swot matrix
11. Space matrix.
Introduction of unilever:
Unilever is one of world’s biggest and main multinational companies; Unilever commended their enterprise
things to do on a large scale by placing up their first manufacturing unit in Netherlands, in the yr of 1890.
Operating in Pakistan for over the last four a long time the organisation is making an attempt to extensively
make a contribution toward the augmentation of the general of living with the aid of bringing work class
excessive first-class products at the door step of their customers. The usage of unilever merchandise by using
over 90% of the human beings Pakistan stands a testimony to their profitable operation. Their array of
merchandise shows that they family care, material cleaning, pores and skin cleaning, oral care, hair care, non-
public grooming, and teabased beverage products under worldwide famous brand names Wheel, LUX,
Lifebuoy, Fair and Lovely, ponds, Close-up, Sun silk, Lipton, Lipton Taza, Pepsodent, All clear, Vim, Surf Excel,
and Rexona. Unilever Pakistan (70.4% unilever equity) is the largest FMCG Company in Pakistan, as properly as
one of the largest multinational’s operations in the country. Unilever Pakistan Ltd, a subsidiary of the unilever
Group is operation in Pakistan due to the fact that 1948. The company’s important business traces are
cleaning soap and detergents, private products, cooking oils and fats, packed Teas, and ice cream. In 1995, the
organization established a new manufacturing unit Lahore to manufacture the Wall’s rang of ice-creams,
which have end up famous inside a short time. In 1996, the existing group-unilever unacquired the polka crew
that produce ice creams. In 1999 Pakistan industrial promoters (private) Limited, owners of ‘polka’
manufacturers of ice cream wear merged with lever.

Vision statement:
Our vision is to grow our business, while decoupling our environmental footprint from our boom and
increasing our high quality social impact.
Vision statement analysis:
This vision declaration fulfills the requirements as it is short, one sentenced, and very specific about what they
would prefer to become. Unilever’s imaginative and prescient assertion emphasizes on enterprise increase
which is very simple and common purpose of each corporation or business. While focusing on growing their
commercial enterprise they are creating such surroundings that create spark for their customers, for their goal
markets as well as for stakeholders. Also, they prefer to create/increase nice social impact so that it would
make task for different groups and make it not possible for them to capture their strategies. So in accordance
to our opinion they aren’t afraid of adapting change and they favor to make their brands robust by means of
turning into their clients first desire that’s why they are greater focused on social impact. standard its an
beautiful vision statement.
MISSION STATEMENT:
Unilever’s company mission is (1) “to add vitality to life.(6) We meet each and every day needs for nutrition,
hygiene and personal care with manufacturers that assist our customers, human beings experience good,
seem correct and get greater out of life.” Analysis of mission statement: This mission declaration underscores
how the agency satisfies customers in a variety of factors of their lives. basically, they simply mentioned their
customers and philosophy of their organization. Adding vitality to life is a popular indicator of business
method in Unilever’s company mission statement. Such vitality is the price that shoppers can expect from the
company’s products. The corporate mission additionally specifies the factors of life the place such vitality is
added. For example, Unilever’s meals products tackle consumers’ vitality needs in terms of nutrition.
Furthermore, through these products, the agency attracts customers who choose to experience good, appear
good, and get extra out of life.
PURPOSED VERSION OF MISSION STATEMENT
Unilever has a wide range of merchandise that include Foods, Refreshment (beverages and ice cream), Home
Care, Personal Care (2,7).so our goal market or our customers include all household members i.e. men,
women, children, householders, etc. essentially we goal all and sundry (1). Unilever will continue to function in
accordance to its long-held concepts with the objective of price advent for all our stakeholders and via
supplying desirable working surroundings to our personnel while managing their work life conflicts (9).
Unilever will build its business with the aid of focusing on bringing vitality to life, meeting the developing
consumer wishes for healthy lifestyle, unilever’s basic belief is to furnish first-rate pleasant with non-stop
creativity. (6) Unilever has "wisely used a word vitality "which has very vast meaning. It indicates their
competitive side of being creative (7) We are seeking to enlarge our earnings for our stakeholders by using
expansion/growth (5) of our commercial enterprise and brands worldwide, so we make investments in local
economies (3) with the assist of state-of-the-art science (4) and trends.
Unilever "wants its purchasers to experience applicable appear to be true and get more out of existence which
suggests its social problem closer to its customers. (8)
PESTEL ANALYSIS:
Economics forces
Unilever’s business performance depends on the situation of economies around the world. The following
economic external factors are determinants of Unilever’s performance and creating opportunities and threats
in the consumer goods industry:
 Increasing wages in developing countries (opportunity & threat)
 High growth of developing countries (opportunity)
 Economic stability of developed countries (opportunity)
 The increasing wages in developing countries present the opportunity for Unilever to profit more from
higher potential sales, as consumers gain higher disposable incomes. However, the same external
factor is a threat in terms of increasing costs, considering that the company has many manufacturing
facilities located in developing regions. Nonetheless, Unilever can expect business growth, as these
countries grow in terms of consumer goods market size and value. For example, China presents major
growth opportunity for the company. Moreover, Unilever has always focused on the realm of product
need, which assists the company in maintaining the stability and the worth in the whole industry. The
performance of the company like Unilever is directly proportional to the economic stability of the
state in which the company is working. Thus, Unilever has opportunities for global growth.
Demographic, Social, cultural and natural environment forces
These all forces can affect the organization in their decision making or to do planning about Future. Changing
in environment will also demand changing in product if Unilever fails in variation then no consumer will accept
the old products as they will not be according to thier need. This is the opportunity for Unilever to adapt these
changes to create satisfaction between customers and organization. Then comes to social and cultural forces.
Unilever also makes product according to the region on which they are doing business so this is also
opportunity for Unilever to make customer satisfy. Then last but not the least DEMOGRAPHIC force to cover
each market segment and each age group Unilever is making vast variety of products to gain popularity among
all plus this is also opportunity.
Political, government and legal forces
These are the most important forces for any business. No business can do anything without government's
rules and regulations. For Unilever the threat is increase in tax rate. If tax rates gets high then this will also
affect products price by increasing products prices. Increase in pricing will reduce the purchasing power and
by this Unilever will have to face less profit, more manufacturing cost and other problems. Second threat is of
costly import and export in Pakistan. Unilever cannot import those manufacturing material which are at low
cost in other countries to make their products price low to make it affordable for everyone because in
Pakistan shipping cost is very high. Then same problem comes in manufacturing plants in other countries
because tax rates is so high. So these all forces will be threats for Unilever. Legal forces or legislation includes
Unilever, known for such popular brands as Dove, Degree and TRESemmé, is the second largest beauty
company globally and the first among the pinnacle 10 to actively help legislative reform to restrict animal
checking out for cosmetics. The organizations hope that this new collaboration with HSI will accelerate policy
change in the cosmetics sector globally toward a shared goal of animal testing bans in 50 major beauty
markets worldwide by 2023. Technological forces Technological forces are the opportunity for Unilever to
improve quality and services. As we are living in the era of internet so this has changed way of everything.
Let's talk about Unilever products advertisement. Most of the time people spends on social media and other
gadgets like TV, radio etc. Unilever has also changed the way of it's advertising now they are putting their adds
more on social media and tv or radio. If Unilever put their advertising on wrong mediums which people don't
use then Unilever will waste their money on marketing. But Unilever is adapting each technological changes so
this is the opportunity. Second thing is online selling and purchasing. Which Unilever is not doing but this is
the opportunity for them. Everyone is so busy in their lives so they don't have time to go to the markets and
buy products. To save consumers time and to make their lives easy and create satisfaction Unilever should
make an online site where customers will purchase their products online.

COMPETITVE FORCES:
The external factors related to these forces have a direct impact on Unilever’s financial performance in the
consumer goods market. No business is an island. For success, the enterprise will want to deal with customers,
suppliers, employees, and others. In almost all cases there will also be other corporations providing similar
merchandise to similar customers. These other agencies are competitors. And their goal is the same: to grow,
make money and succeed. Effectively, the agencies are at war, struggle to reap the identical resource and
territory i.e. the patron and like in war, it is imperative to apprehend the enemy. For that reason, we will
analyze the competitive market of Unilever. Unilever’s competitors include Proctor and gamble (P&G), nestle
L’Oréal, Colgate-Palmolive etc. These firms operating in the consumer goods industry. This external factor
imposes a strong force on Unilever. In addition, these companies are normally aggressive, further including to
the intensity of competition. Unilever also experiences tough competition because of low switching costs. For
example, it is easy for consumers to switch from one firm to another. Thus, a high level of competition is
shown in this section, highlighting the need to consider competitive rivalry as a high-priority force in the
company’s industry environment.
Porter’s 5 Forces Model:
Being a global company, Unilever has very robust opposition no longer solely from other robust multinational
groups like P&G, Kraft and Nestle but additionally from other regional retailers. Porter’s 5 forces model is one
of the most recognized frameworks for the evaluation of aggressive surroundings of an organization. Porter’s
5 forces mannequin which determine the competitive intensity and therefore beauty of the market where
Unilever is operating. This mannequin describes the attributes of an fascinating enterprise and accordingly
suggests when possibilities will be greater, and threats less, in these of industries. Attractiveness in this
context refers to the standard industry profitability and displays upon the profitability of Unilever. An
“unattractive” industry is one where the combination of forces acts to power down average profitability. A
very unattractive industry would be one drawing near “pure competition”, from the standpoint of pure
industrial economics theory. This mannequin is based on five important elements of an organisation and uses
each inner as properly as external competences and threats faced by means of a enterprise organization.
These five elements including;
1. Buyer Power:
Unilever’s shoppers are scattered all round the world and they are in billions. In real experience they are
now not so effective to pull expenses down. But on the other hand, itis less difficult for the customers to
swap to a competitor. So, Unilever have to be very precautious in identifying about expenses and preserve
the clients satisfied.
2. Competitive Rivalry:
In consumer merchandise enterprise Unilever has many opponents and these opponents are in truth very
strong. They range from small nearby corner save retailer to huge giants like P&G, Kraft and Nestle. These
competitors nearly furnish equally attractive merchandise and offerings and on occasion better. These
competitors have the power to appeal to and impact the clients with the aid of more attractive substitute,
expenditures and advertising and marketing techniques.
3. Threat of Substitution:
Continuous lookup and improvement in the customer and household products has introduced about a
revolution in the purchaser market and these days clients like to attempt some thing new and better. This
fashion has reduced the consumer loyalty and product lifecycle. Unilever is beneath continuous risk of
replacement merchandise and its competitors are already spending large sums on R&D and new product
development. Unilever need to be very adoptive and closer to its clients to get what precisely its clients
want.
4. Threat of New Entry:
As Unilever operates in different geographical markets so danger of new entrants varies detached
markets. In well developed international locations where huge gamers like Unilever have a very strong
maintain and company image, it is very difficult for a new entrant to enter the market due to the fact of
higher value to set up a business. On the other hand, in much less developed markets, it is simpler to
enter as legal requirements and capital needed is now not as much as in a developed market. Unilever has
its presence nearly in each and every market either thru its subsidiaries, branches or franchises. But its
manufacturer photo is a strong barrier in the way of new entrants.
5. Supplier’s Power:
Unilever has a coverage of neighborhood buying and local manufacturing. Which offers itself an part to
brake electricity of its suppliers and make them weaker to negotiate at its own terms. Most of time
Unilever has blanket agreements with its suppliers to provide for a positive duration at a sure rate. This
approach helps to prevent supplier’s from switching to other competitors and cost higher rates. Also,
Unilever treat its supplier’s fairly to create greater loyalty among them like customers.
EFE Matrix.
An External Factor Evaluation (EFE) Matrix allows strategists to summarize and consider economic, social,
cultural, demographic, environmental, political, governmental, legal, technological, and aggressive
information. When the use of the EFE matrix we perceive the key external possibilities and threats that
are affecting or might have an effect on a company. Where do we get these factors from? Simply through
examining the exterior environment with the equipment like Pastel analysis, Porter’s Five Forces. So by
using examining exterior surroundings we came with some possibilities and threats that we noted
subsequent in the EFE matrix desk and after evaluating those opportunities and threats we came up with
these consequences that Total weighted score of EFE matrix of UNILEVER (3.4) shows robust response of
agency in the direction of exterior factors.
no Key External Factors weight Ratings Weighted
Score
Opportunities
1 Population continuously increasing in 0.08 4 0.32
Pakistan. 5.7% increase from previous.
2 E-commerce- Online Selling can be initiated 0.09 3 0.27
as e-commerce sales are growing by 23.8% .
3 Could develop new products. 0.02 4 0.08

4 Local competitors have poor products. 0.03 3 0.09

5 Sales grew by 15% on the back of strong 0.07 3 0.21


brand equity.
6 Strategic acquisitions can help Unilever to 0.04 4 0.16
expand its business.
7 Huge potential in the rural areas of Pakistan. 0.08 4 0.32
As usage of FMCG products increased by 20
to 25%.
8 Big opportunity in food business as growth 0.03 4 0.12
rate is increased by 25% this year for food
industry.
9 Export opportunity of halal foods to Foreign 0.06 3 0.18
Countries.
10 Enough space available for launching of 0.05 4 0.20
nutritious food items.
11 Pakistan is the third largest importer of tea in 0.01 3 0.03
the world so huge potential in tea farming.
Threats

12 Legislation could impact. 0.05 3 0.15

13 Energy shortage. 0.05 2 0.10


14 High taxation. 0.08 3 0.24
15 Continuous smuggling of tea. 0.12 4 0.48
16 The local companies. 0.02 4 0.08

17 Price wars. 0.01 2 0.02

18 Competitors' aggressive marketing. 0.05 4 0.20

19 Rapid increase in raw material cost. 0.03 2 0.06

20 Health consciousness people may find an 0.03 3 0.09


alternative low-calorie diets and exercise.
Total weighted score 1 3.4
COMPETITIVE PROFILE MATRIX OF UNILEVER

Critical success factors


weight rating score rating score rate score
Advertising 0.1 4 0.4 3 0.3 2 0.2
Product quality 0.09 4 0.36 3 0.27 2 0.18
Price competitiveness 0.1 3 0.3 4 0.4 2 0.2
Market share 0.06 4 0.24 3 0.18 2 0.12
Management 0.04 3 0.12 4 0.16 2 0.08
Financial position 0.04 4 0.16 4 0.16 2 0.08
Customer loyalty 0.06 4 0.24 3 0.18 2 0.12
Global expansion 0.09 4 0.36 3 0.27 2 0.18
Distribution channel 0.08 3 0.24 4 0.32 2 0.16
Product line 0.05 4 0.20 3 0.15 2 0.10
Marketing 0.06 3 0.18 4 0.24 2 0.12
R&D 0.04 4 0.16 3 0.12 2 0.08
Strategic alliance 0.06 3 0.18 4 0.24 2 0.12
Logistics and supply 0.07 3 0.21 4 0.28 2 0.14
chain
technology 0.06 4 0.24 3 0.18 2 0.12
TOTAL 1.0 3.59 3.21 1.8

P&G unilever reckit

Competitive profile matrix identifies a firm major competitor and their strength and weakness to gives the
idea of their strategic position. According our cpm for unilever first firm that is P&G receives 3.59 than the
second Unilever and third Reckit that means UNILEVER is slightly differ with P&G and strong than others that
leads to help unilever in their decision making.
IFE matrix:
no Key internal factors weight rate Weighted score
Strengths
1 Inventory turnover rise to 1.9% from 1%. 0.07 4 0.28
2 Market share of 49.6% (grocery) 0.12 3 0.36
3 International brand strength 0.03 4 0.12
4 Vast distribution networks. 0.05 4 0.20
5 Wide brand portfolio with more than 400 brands. 0.06 3 0.12
6 EPS increased by 14.0%. 0.04 3 0.12
7 Large range of brands to match the diversity of 0.03 3 0.09
customers.
8 Active participant in CSR activities 0.04 3 0.12
9 Customers loyalty. 0.04 3 0.12
10 Oldest mnc of Pakistan. 0.02 3 0.06
11 Well-established brand name. 0.04 4 0.16
12 Good social responsibility to shareholders and 0.05 3 0.15
employees.
weaknesses
1 Strategic Alliance 0.02 1 0.02
2 High debt burden (78% debt financing) 0.07 2 0.14
3 Costly products 0.05 2 0.10
4 Gross margin decline by 0.2% to 46.2%. 0.05 2 0.10
5 Operational Complexity. 0.06 2 0.12
6 High staff turnover (35%). 0.02 2 0.04
7 Accused of involvement in exploitive tactics against 0.04 2 0.08
indirect employees.

8 Recently, ULEVER has closed the Karachi tea factory 0.03 2 0.06
in view of low demand and sales volumes.

9 Indirect Distribution Network. 0.04 2 0.08


10 Using Nameless Factories for Production as in the 0.03 1 0.03
case of Tea, in Karachi.
Total 1 2.67
STRATEGIES THAT ARE FOLLOW BY UNILEVER
GENERIC STRATEGIES
DIFFERENTIATION
Unilever uses differentiation as its generic strategy for competitive advantage. The focus of this generic strategy
is its emphasis on features or characteristics that make the company’s products strong against the competitors.
For example, Unilever produces personal care products like Dove Cream Bars to satisfy consumers’ need for
soaps that are not harsh or drying. Despite their relatively high selling prices, such Unilever products are
competitive because they are different from most soaps that focus more on cleaning than moisturizing. In this
strategy, the company attracts customers to specially designed products. Thus, such a generic strategy aims to
support global sustainability and to increase vitality in consumers’ lives, respectively.

Cost leadership strategy


Unilever compete for a wide range of customers based on price. Its products Prices are based on internal efficiency
to obtain a margin that allows it to sustain its business above average profit or returns and cost to the customers.
Based on this cost and return analysis that determine the price, make customers to purchase a product. This
strategy works well when the product or service is standardized, have generic qualities, fulfill customer needs and
offer lowest price with best quality. In order to become a cost leader a business should keep an eye on the price
strategy followed by its competitors and its continuous efforts to keep its prices low relative to its competitors.

 Lower cost products with best quality


 Building efficient production facilities
 Maintain tight control over production and overhead costs
 Minimize cost of sales, R&D, and service
 Focusing on primary and support activities to reduce cost related to these activities
 Configuring the value chain

Focus strategy

Unilever focus more on the demographic features of population, it targets all age groups and offer a wide variety
of products to the people of all ages. It also focusses on the emerging markets like a few years ago it started to
focus more on India because it’s an emerging market. Apart from that its wide variety of products more and its
attention to its value chain make it capture a big market share. It focuses on customer needs and customer
satisfaction. It focuses on innovation, quality and R&D. It also focusses on its low cost and has a wide base of
customers, so all these factors together give it a competitive advantage over others in the same industry.
Unilever’s Intensive Strategies

Market penetration

Market penetration is used in Unilever’s business. In this intensive strategy, the company seeks to increase
market share for present product or service in present market for example in the home care market, Unilever
aggressively sells its products in current markets, such as the Pakistan, Such aggressive efforts increase the
company’s ability to capture customers away from competing home care firms. Unilever successfully applies
this intensive strategy by using the generic strategy of differentiation to make its products more competitive and
attractive than others. A strategic goal linked to this intensive approach is to grow the commercial enterprise
thru aggressively advertising and marketing Unilever merchandise in the international purchaser goods market

Product Development

Product development as intensive strategy that Unilever uses for business growth. The company applies this
intensive growth strategy by introducing new products that address consumers’ needs. For example, entirely
new products of Unilever’s personal care products are released over time to maintain or increase the sales. This
intensive growth strategy is in line with the company’s differentiation generic strategy for competitive
advantage in the consumer goods industry. For instance, differentiation requires product uniqueness, which is
applied in Unilever’s product development. This intensive method leads to the strategic objective of growing
the organisation via non-stop product innovation.

Market development

Unilever also focus on the market development strategy by introducing their products or services into new
geographic area or segment. For example, Unilever announced to introduce their products in Indonesia to Brazil
to expand or grow their business and market share as well as their revenues.

Diversification strategies

Related diversification strategy

Business are said to be related diversification when value chain model fits into cross business strategy. And this
diversification strategy is following by Unilever for example, soap and margarine is sharing almost same raw
material,

Unrelated diversification strategy

Business are said to be unrelated diversification when one’s value chain model do not fits into another cross-
business process. This strategy is also following by Unilever for instance. From ice-cream to tea-based
beverages.
Means for achieving strategies

Partnering

Recently in 2018, Unilever announced to partnering with Walmart to reduce deforestation to save the
sustainability of forest. They aim to "With this partnership Walmart and Unilever are advancing an innovative new
approach to help companies meet their climate goals," said Carter Roberts, President& CEO of World Wildlife
Fund-US. "Decoupling supply chains from deforestation would deliver three important benefits – reducing
greenhouse gas emissions, securing essential habitat, and restoring species.

Acquisition
Unilever’s steady stream of mergers and acquisitions has slowly stocked consumer shelves over the years.
From food items to detergents and beauty products—all sold under 1,000 different brands—the company has
infiltrated nearly every part of the retail experience. Over the last two decades, Unilever has made more than 40
acquisitions across the globe. With a focus on innovation, the organization uses Pitch-Book to stay on top of
emerging industries and identify growing companies.

Defensive strategies
Divestiture
Unilever successfully divestiture its frozen food company in its past few years, as the part of five-year program
the company targeted to reduce its number of brands from 1600 to 400 only. Unilever divesting its business to
focus on its core business food portfolio.

Liquidation
Unilever did liquidation for personal care products manufacturing facility in 2012. Not only personal care
manufacturing facility but Unilever tea also liquidated in 2014.
SWOT Matrix:

Strengths Weaknesses
 Market share of 49.6%.  High debt burden
 Customer loyalty (78% debt financing)
 Wide brand portfolio  High staff turnover 35%
(more than 400 brands).  Unusual Strategic alliance.
 Vast distribution network (fall short of a legal
(50% direct selling) partnership entity).
 Inventory turnover  Nepotism
increased to 1.9% from (Khanewal tea factory
1%. bribery scandal)
 Strong brand image.  Costly products.
 EPS increased by 14.0%  Gross margin decline by
0.2% to 46.2%.

Opportunities SO- strategy WO-strategy:


 Population of Pakistan  Sustainable growth  Forward integration
increased by 5.7%. (s6, s3, o1). (w6, O4)
 Sales grew by 15% overall.  Market development  Create awareness among
 Usage of fmcg products (O3, O1, S2, S3, S4) people (w4, o6)
increased by 20 to 25% In
rural areas.
 Unrelated diversification
(s2, O1)
 E-commerce online selling
should be initiated as it
grows faster in other
companies (growth rate of
online sales is 23.3%.)
 Food industry grew by
25%.
 Customer loyalty.

Threats ST- strategy WT-strategy


 Competitors aggressive  Vertical integration.  Win back trust and create
marketing. (T3, T7, S3, S5) positive word of mouth.
 Price competition. (T6, w4)
 Competitors like P&G  Increase in revenue
have higher market share. generation.
 Rapid increase in raw (W3,T3)
material cost.
 Local competitor’s like j&J
And Pepsi co etc.
 Bad word of mouth due to
nepotism.
 Continuous increases of
tea smuggling.
Space matrix:

Financial position Rating


15.5% increases in net income in 2018 as compared to 2017. +6
Net sales are increased to 15% in 2018 as compared to 13% in 2017. +4
Total asset turnover is 2.41 in 2018 as compared to that it was 2.15 in +5
2017.
Return on equity (post tax) is increased to 4.46% from 2.16 %. +4
EPS is increased to 14 % from previous year. +3
Liquidity of current ratio is declined to 0.65 times which was previously +1
0.75 times.
Stability position Rating
Smuggled products and local competition. -4
Legal, political, and regulatory factors of host countries. -3
High rate of inflation effects demand. -4
Food industry grew by 25%. -3
Usage of fmcg products in rural areas increased by 20 to 25%. -2
Continuously increasing technological advances. -1
Competitive position. Rating
Market share of 49.6%. -2
Customer loyalty. -1
Control over suppliers and distributors. -4
Wide brand portfolio with more than 400 brands. -1
Inventory turnover increased from 1% to 1.9% -2
Strong brand image. -3
Industry position Rating
Consumption oriented culture. +4
Growth potential. +6
Profit potential. +5
Ease of entry into the market. +3
Growth potential in rural areas increased by 25% +6
Financial stability. +3

Space matrix graphical:

FP
Conservative Aggressive
+6
+5
+4
+3
+2
+1

CP IP
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6

-2
-3

-4

Defensive -5 Competitive
-6
SP

Average scores:
FP= 23/6 = 3.8
SP= -17/6 = -2.8
y-axis = -2.8 +3.8 = 1
CP= -13/6= -2.16
IP= 27/6 = 4.5
x-axis = -2.16 +4.5 = 2.34

Analysis for space matrix:


So, based on strategic position and action evaluation (space) matrix it can be concluded that unilever Pakistan
is in aggressive directional vector of profiles.
Here are some strategies that can be taken:
Integration strategies which includes: forward integration, backward integration, and horizontal integration.
We can use intensive strategies which includes: market penetration, market development, product development.
And we can use Diversification strategies. Or we can use the combination of these strategies.
But overall these results showed us that unilever should go for aggressive strategies.
BCG matrix: Dove
 Industry growth rate for personal care products industry is 4.7% per year.
 RMSP of unilever Dove is 30%.

Relative market share

High medium low

1 0.50 0
High +20 STAR QUESTION MARK
Industry growth rate (%)

Dove
Medium

CASH COWS DOG

Low -20

As relative market share of dove is low which is 0.30 and industry growth rate is positive and high so this product lies in
question mark which is also a 1st quadrant of BCG matrix.so in this unilever can adopt intensive strategies which market
penetration is, market development, product development.

And in case if all these strategies failed than unilever will go for divestiture strategy.
BCG matrix: Surf excel.
 Industry growth rate for home care products industry is 3.8% per year.
 RMSP of unilever surf excel is 47%.

Relative market share

High medium low

1 0.50 0
High +20 STAR QUESTION MARK
Industry growth rate (%)

Surf excel
Medium

CASH COWS DOG

Low -20

As relative market share of surf excel is low which is 0.47 and industry growth rate is positive and high so this product
lies in question mark which is also a 1st quadrant of BCG matrix.so in this unilever can adopt intensive strategies which
market penetration is, market development, product development.

And in case if all these strategies failed than unilever will go for divestiture strategy.
BCG matrix: wall’s
 Industry growth rate for food and refreshment industry is 4.8% per year.
 RMSP of unilever wall’s 68%.

Relative market share

High medium low

1 0.50 0
High +20 STAR QUESTION MARK
Industry growth rate (%)

Wall’s
Medium

CASH COWS DOG

Low -20

As relative market share of wall’s is high which is 0.68 and industry growth rate is positive and high so this product lies in
STAR which is also a 2nd quadrant of BCG matrix.so in this unilever can adopt intensive strategies which market
penetration is, market development, product development. Also, unilever can adopt integration strategies which is
forward, backward and horizontal integration.
References:
https://www.unilever.pk/
https://www.unilever.pk/investor-relations/financial-results/
https://www.unilever.pk/Images/financial-results-for-the-third-quarter-ended-30-september-
2018_tcm1267-527860_en.pdf
https://www.unilever.pk/Images/condensed-interim-financial-statements-for-the-third-quarter-ended-30-
september-2018_tcm1267-527859_en.pdf
https://www.unilever.pk/Images/upl-annual-reports-2017_tcm1267-520146_en.pdf

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