AACKNOWLEDGMENTCKNOWLEDGMENT

My first and foremost humble and gratitude to “ALLAH” the Almighty for giving me the valor to remain dedicated to make this term report.

This underlying term report is based on the analysis of different marketing functions of Lever Brothers Pakistan Limited. Applied on “Sunsilk”.

In making this term report, we collected the whole data from publications, internet and various international business magazines.

Apart from it I take the opportunity to acknowledge the real efforts of: Mr. Reza A. Syed, for guiding us, Ms. Ayesha Khan (Assistant Product Manager of Sunsilk) and Mr. Khurram (Product Manager) without whose support this report wouldn’t have been possible.

As a final word, my sincere dedication is to the other students of “BAHRIA INSTITUTE”, they are the future managers in every field of life, they have my good wishes for their future success in management.

TTABLEABLE O OFF C CONTENTSONTENTS

CONTENTS PAGE #

1. Lever Brothers Pakistan Limited. 03

2. Company Objectives. 04

3. Sunsilk Mission Statement.05

4. Product 06

5. Price 10

6. Promotion 12

7. Distribution15

8. S.W.O.T Analysis16

9. Recommendations 18

LEVER BROTHERS PAKISTAN LIMITEDLEVER BROTHERS PAKISTAN LIMITED

LBPL, the largest consumer goods producing company in Pakistan, was incorporated here in 1948 and started building their factory at Rahim Yar Khan. This factory was inaugurated formally in 1951 by the then Governor General of Pakistan.

LBPL moved into the personal care product business in 1981. It has gained a major market share due to the introduction of quality brands like Sunsilk, Lifebuoy, Lux and Fair & Lovely.

Lever Brothers was the recipient of Management Association of Pakistan (MAP) and Karachi Stock Exchange awards in recognition of its performance. For the purpose of MAP award, it was judged the best among the companies that have performed well in the areas of Financial Discipline, Management practices such as Risk Management, Corporate Governance, Social Responsibility and Research & Development.

Lever Brothers is committed to investment and modern production facilities thereby contributing to economic growth and employment opportunities.

CCOMPANYOMPANY O OBJECTIVESBJECTIVES

Neither our own nor our major competitors’ objectives are simple or obvious. There are many choices between short term and long-term profit, between growth and cash flow, between growth in assets and growth in earnings, between proportions of earnings paid to share holders as dividends or reinvested.

It is reasonable to assume that these different objectives of different competitors predetermine some of their strategies and tactical behavior.

Assess the concept of product acceptability, credibility and perceived benefits.

Examine consumer’s assessment of the product, in terms of product performance and related benefits.

Explore consumers’ reaction towards packaging.

Understand consumers’ perception of quality advertisement in terms of its impact.

MMISSIONISSION S STATEMENTTATEMENT

The New Sunsilk Shampoo aims at fulfilling the needs of its target market by offering a high quality, assessment of the concept in terms of its acceptability, credibility and perceived benefits, that it offers a healthy choice shampoo alternative to the targeted consumer. The theme of the product shall be anchored around the motto:

“Softness, shine and manageability of Hair”

IINTRODUCTIONNTRODUCTION OFOF THETHE P PRODUCTRODUCT

Product History:Sunsilk was introduced in 1989 in Pakistan with three

variants related to hair types. Endorsement of a hair stylist was the first step in building the image of the brand as a hair care expert.

With the competition from local and multinational companies due to rationalization of excise duties, Sunsilk has not been able to gain the desired share in the market. To strengthen the brand, LBPL decided to re-launch Sunsilk with a premium range consisting of four variants in January 2000. In 2001, due to the constant research of their affiliated hair

care institutes, the need of a shampoo for oily hair was observed and they launched a new variant of Sunsilk having citrus extracts.

Target Market:Their main target market is females between the age

group 16-40 belonging to the two upper income classes. But in their promotional activities, they cover the whole market irrespective of these classes.

Competitors’ Review:

The major competitor of Sunsilk in the rural areas is Bio Amla while in the urban areas, Sunsilk faces cutthroat competition with P&G.

The main advantage of Bio Amla is its Herbal composition and low price, which attract the rural market, but in terms of quality, they are far behind Sunsilk.

In urban areas, Sunsilk is acting as a market challenger against P&G. Sunsilk has got the advantage of keeping their prices lower than P&G shampoos but P&G has captured a bigger share of the market due to its intense promotional activities.

Packaging:The packaging design for the New Sunsilk range is

extremely exciting and has been developed by Brown Inc. UK. The packaging makes the brand look expert and modern. This packaging makes the brand look more contemporary and hi-tech. It ensures more emphasis on the variants that have already been a part of the product but never been communicated to the customer that well. This new packaging has clearly identified that there is a separate product for each hair type.

Currently, the range consists of:

Yellow Sunsilk with Bio Proteins from Vegetable Extracts:

Normal hair needs wholesome nourishment. New Sunsilk with Bio Protein extracted from Vegetable milk has nutrients that deeply penetrate each hair strand, to nourish it leaving hair strong and beautiful.

Black Sunsilk with Melanin from Plant Extracts:

Dull hair needs a rich black shine. New sunsilk with Melanin extracted from plants serves this purpose very effectively. It helps in the growth and retention of the black color of hair, giving it a rich black shine.

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Green Sunsilk with Fruitamins Vitamins from fruit Extracts:

Thin and limp hair needs extra body and volume. New sunsilk with Fruitamins has natural extracts from fruit that contains Vitamins. These vitamins help in giving extra body, shine and amazing manageability to the thinning and lifeless hair.

Pink Sunsilk with essential Oils from Flower Extracts:

Dry hair needs wholesome conditioning, extra shine and styleability. New Sunsilk with essential oils makes the dry hair full of life. Its especial ingredients moisturize each hair right to its tips leaving it shiny and beautiful.

Orange Sunsilk with active nutrients from Citrus Extracts:

The advanced formula of orange Sunsilk is the result of the latest research. This shampoo is especially designed for oily hair type that looks flat and greasy due to the excess of moisture. New sunsilk with active ingredients from citrus extracts cleans the excess oil off hair while its nutrients deeply penetrate each hair strand to nourish it.

Customer Review of Product Usage

Pricing Objectives:

Lever claims to practice value-based pricing in which the customers’ perception of the product’s price provides a starting point for developing the marketing mix of the product. The research department determines this price usually by using focus groups. The price of RS 3 for Sunsilk shampoo sachets shows how the price also reflects a

concern to make the purchase more convenient, since the rupee is denomated in this value.

The primary importance of this value-based pricing is that the product demand will be much higher if its price is in line with the customer’s perception of its value. One crucial concern for value-based pricing is strict management of cost in order to be able to make a profit at the value-based price. After the initial price is determined, Lever then uses target costing in order to achieve the required profits. With the marketing plan now being termed as ‘Annual Contract’ the importance of meeting the profit margin requirements has increased. Target costing thus provides an essential tool to manage cost effectively.

The characteristic of monopolistic competition typifying the market sets the threshold for pricing. This market consists of many buyers and sellers trading over a range of prices. The key element is differentiation, which allows the seller to gain market share in contrast to competitors. Given this market condition, Lever differentiates its products and also sells them in different price ranges to cover at least a large portion of the market. Also this makes Lever more sensitive to price changes of competitors’ products.

Last year P&G revised their prices which has increased the prices of their shampoos considerably but Sunsilk has maintained its prices and their prices are much lower than P&Gs’, which is a major blow to P&G because being a poor country people go for products which are within the range of Rs.100.

Promotion objectives:

Build top of the line consumers’ awareness. Creating a personality of the brand.

Besides having these general objectives, the advertising objectives are set avoiding to the advertising strategy for

each product, e.g. Sunsilk advertising objectives since it was being re-launched were:

To increase the usage. Conditioning benefits. Makes the hair appear clean and shiny. Imparts a feeling of freshness-due to fragrance. Easy to manage, silky, soft hair. Unique shampoo for every hair type. Effectively communicate brand promise.

Advertisement objectives:

The advertisement of a product should follow the smile approach that is:

S - Simple M - Memorable I - Interesting with relevant information L - Linked to the brand E - Emotionally involved and liked.

The advertisement should be in line with the past ad (if any). The ad should have a good advertising idea. Advertising should meet the brief Message clearly communicated Advertising should fit the brands personality An add is usually changed after 18 months TARP(Target Audience Rating Points)

Advertising strategy:

A product’s particular advertising strategy also depends on the level of competition involved with each product. For example shampoo ads previously used to provide emotional

benefits but when P&G entered the shampoo market with it’s shampoo Pantene, it revamped the whole situation, Pantene ads promoted the shampoo’s functional benefits, which greatly appealed the consumers. Levers seeing this trend changed its advertising strategy for Sunsilk so that Sunsilk advertisements also promoted the shampoo’s functional benefits.

Thus Lever evaluates the product’s present position in the market, the promotion objectives it wants to achieve and the level of competition involved while setting the advertising strategy for a product.

Elida Hair Institute does a lot of research and they come up with innovation in the product. Elida provides credibility that Sunsilk is not locally made but it is based on a lot of research by internationally accredited institutions.

Lever believes that messages about product delivered by credible sources can be very persuasive. Hence Nabila who is an hair care expert endorses Sunsilk and more value is added to the brand. Consumers relate to products itself, they can relate to a human being who consumers believe is an expert so if Nabila is an expert so is Sunsilk. Nabila a recognised and highly qualified hair stylist is used by Sunsilk in its ads because they want to bring out an expert’s image.

Sunsilk has come up with a new promotional campaign GOOD HAIR DAYS in six major cities in collaboration with famous hair stylists of the country.

Advertising Evaluation:

Lever also carriers out on extensive evaluation process. Target audience rating points are used to evaluate a

product. Households are monitored in various cites to get consumers response and feedback.

R-Lintas carriers out in own evaluation proceeds for its advertisement. Weekly figures are presented by research department. Regarding sales which have been carried out by extensive surveys. Products manager themselves have to visit the

Consumers’ View of Sunsilk Advertisements

Distribution Objective:“To reach as many towns and villages as we can”

Lever has 150 distributors whose function is to sell to wholesalers directly. There are different distributors for different areas. They are carefully selected and their performance is constantly evaluated.

They appear extremely satisfied with their channel systems and have a good rapport with them. We feel that this is essential since these are not too many levels, thereby preventing channel complexity and allowing Lever greater control. Lever’s statements were verified by our consumer survey, which revealed that the retailers were very satisfied with Lever’s distribution system, which allowed well-stocked shelves. This is an added advantage, since the consumers undergo habitual buying behavior.

Sunsilk has a very good distribution network all over the country. They have struggled hard to adopt such channels that guarantee the perfect results regarding the placement of their product.

These distributors are given clear instructions regarding the selection of the retailer and to make sure that the retailer;

Knows about the significant characteristics of the product.

Places the product along with its major competitors like P&G.

Displays the sachets distinctly.

They give off and on offers as trade promotion incentives to their distributors. The distributors contribute to the promotion of Sunsilk by word of mouth.

SSTRENGTHSTRENGTHS

Lever Brothers Pakistan Limited is one of the largest organizations in Pakistan.

Company has advanced technology and well skilled professionals.

The New Sunsilk Shampoo is a high quality product in terms of hair protection.

The target market is educated, professionals and belongs to premium and middle class.

Company totally owned, systematic distribution network, transparent communication system.

Participative management style Very good distribution network all over Pakistan, in all

major and small cities.

WWEAKNESSESEAKNESSES

Competitor has strong promotional activities. Imported brands also available in the market. Customers are offered better alternatives by the

competition.

OOPPORTUNITIESPPORTUNITIES

Population expanding at a rapid rate. Consumers are becoming more quality conscious Current capacity utilization is 80%, which can be further

broadened with the increase in demand. Customer base is increasing with effective marketing. Baby shampoo is another area where Lever Brothers

can make huge gains. Shampoo plus conditioner and anti-dandruff shampoos

are another area where lever brothers can earn huge profits.

Rural areas are a large prospective market where they can introduce Sunsilk.

TTHREATSHREATS

Political and Economic factors. Partial Government policies. High rate of competition. Local and Foreign competition. Smuggling via Afghan Trade Transit is one of the big

hurdles faced by Sunsilk. Supplies from Indonesia and Thailand is another

important issue.

RRECOMMENDATIONSECOMMENDATIONS

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

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

Lever should introduce a smaller (100 ml) pack of Sunsilk shampoo in order to capture the lower income segment.

Lever should enter into WEB Marketing.

The Legacy Soccer Foundation sponsored mainly by Levers, should be emulated by Levers Pakistan in the area of cricket since it is the most popular sport in Pakistan.

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

They should increase the frequency of their advertisements on electronic and print media.

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