ACKNOWLEDGEMENT

First of all we are really thankful to Almighty Allah who gave us the strength to work on the project and complete it in time without any hurdles. We would also like to thank our teacher Miss.Perkha Khan who gave us the confidence and guidance at every step of our research. This project helped us to know more about the Unilever Pakistan and gave us a chance to see their marketing strategies and to study on their product LUX.

Executive summary:
Unilever Pakistan (70.4% Unilever equity) is the largest FMCG company in Pakistan, as well as one of the largest multinationals operating in the country. The company had a turnover of Rs. 23.3 billion (Euro 309 million) in 2007, and enjoys a leading position in most of its core Home and Personal Care and Foods categories, e.g. Personal Wash, Personal Care, Laundry, Beverages (Tea) and Ice Cream. The company operates through 5 regional offices, 4 wholly owned and 6 third party manufacturing sites across Pakistan
Unilevers one of the most popular brand is LUX. They segments LUX.s market according to geographical locations. It further differentiates these segments into Socio Economic Cluster (SEC) which takes into account the criteria of education and profession which ultimately measures the financial ability of consumers. The cluster is divided into five parts starting from A to E. Unilever targets the urban and sub urban upper middle class and middle class segment of the population, who falls under A to C of SEC. Tactical marketing tools, 4Ps, are extensively used by the company to market LUX. Though LUX is produced in Pakistan, Unilever Pakistan maintains the same standard all around the globe. The product is available in six different fragrances under three different sizes. Since the demand for beauty soap market is to a great extent oligo polistic, variations in price lead to price war which can eventually break down the companys market share. Thus Unilever cannot provide a better price than its competitors. But the price is affordable by most of the people. Unilever Pakistan has outsourced its distribution channels to third party distributors which allow them to distribute LUX in massive bulks amounting to around ten million pieces. It undertakes the largest promotional activities in the beauty soap industry. The beauty soap industry has a few major producers of which Unilever holds market share of slightly less than 50%. Other competing brands like Dove, Hoor Beauty Soap and Capri have started to have a strong consumer base, but LUX.s product features distribution and promotional activities have created high brand loyalty for which it is still the market leader.

Unilever, with the aid of its heavy promotional activities, has been able to penetrate the market. But the other producers in the industry are posing a threat towards Unilevers market share as they have moved towards the rural masses of the population. Therefore, Unilever Pakistan should undertake further steps such as moving towards the rural and/or poorer segment; attract children (by making a special product for kids) and other innovative promotional activities to retain its command in the industry.

Since the time Unilever Pakistan began its operations in 1948, the Company has been closely connected to the Pakistani people and its brands have been an integral feature in their daily lives. In fact, the nature of our business enables our brands to be the pulse and heartbeat of the 164 million people in Pakistan. This is a huge commitment, which makes us responsible and accountable to all our stakeholders and society as a whole and strengthens our resolve to:

Make a positive difference to the lives of low income consumers Create new opportunities for growth Improve the overall quality of life in Pakistan, by promoting education, nutrition, health and hygiene.