MKT619 Final Project on Unilever Brothers Pakistan

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MKT619 Final Project

Lever Brothers Pakistan Limited is a multinational organization. Unilever PLC London is its parent company. Unilever is a European based company with headquarters in London, and their shares are quoted at the stock exchange of several European countries. They deal in all kinds of products from animal foodstuff to foods and detergents plus other personal and consumer products. Unilever has its subsidiaries in over 80 countries of the world, to which it spreads its vast knowledge and resources.

William Lever (its originator) commences business in England as a grocer. He established Lever Brothers in 1827 in England Sunlight was the first product of Lever Brothers, which makes the beginning of the marketing of branded products at the same time Margarine Uni was established in Nether Land by Simon Van Berg and Anton Jurgens. These two companies in term of:

·         Buying raw material
·         Selling finished goods

Product Mix

At present Lever Brothers Pakistan Limited is engaged in marketing of diversified varieties and classes of products and playing a dynamic role in boosting consumer product market. It stand at a unique position due to its honesty and integrity. Lever Brothers Pakistan Limited has both product length and depth i.e. it has by length a largest of product lines available and under each product line there are lots of variants like different weights, 100mg, 500mg, 1000mg, sache pack, family pack or in case of ice creams different brands have lots of flavor available which determines its product depth.

Corporate Level Strategy.

At corporate Lever Brothers Pakistan Limited is pursuing the strategy of vertical diversification i.e. driving away from the previously adopted strategy of vertical integration i.e. now they don’t want to perform more than one step of the processes involved in converting raw materials into a product delivered and ready for consumption. Lever Brothers Pakistan Limited’s operations are so complexed and involves 200 brands in Pakistan so now they wanted to reduce the operational complexity and going for strategic alliances with their suppliers, instead of producing themselves and going into complex operations now they want their suppliers to produce for them.

Business Level Strategy.

At business level Lever Brothers Pakistan Limited is adopting a very unique and interesting set of strategies. First and foremost strategy they want to follow is the cost leadership. They wanted to control cost as much as possible and want to reduce cost by every mean. First cost efficiency is achieved through outsourcing operations and stop producing themselves and go for cost efficient subcontracting.

Strategy Evaluation.

Now after outlining the objectives and discussing the strategies we can now evaluate these strategies that whether they are in harmony with the objectives of Lever Brothers Pakistan Limited or not. And then we will evaluate these strategies on three types of evaluation criterion.

Now as against the objectives, if we go through all the strategies being mentioned earlier, then we can see that all strategies are true reflection of the objectives being targeted by Lever Brothers Pakistan Limited. As an objective of consumer connectivity, responsive supply chain getting on line computer network with suppliers and more stronger R&D department and the objective of cost efficiency is supported by the vertical diversification in an sense that how they are outsourcing production and going for sub contracting with their suppliers and having more responsive and cost effective supply chain and to achieve growth more focused strategy in case of reduction of brands, etc.

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