Assignment 2 (Strategic Marketing)

7/30/2019 Assignment 2 (Strategic Marketing)

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Strategic Marketing

Situation Analysis

Presented To: Mr. Kashif Saeed

Presented By:

Mubasher Ijaz 10123067

Muhammad Mursaleen 10123088

Rafaqat Ali 10123057

Maria Arshad 10123075

Fakhar un Nisa 10123090


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Acknowledgment

I would like to gratefully acknowledge the enthusiastic

M r. Kash i f Saeedduring this work.


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Agenda

Industry introduction

Porter five forces

Company profile

SWOT analysis

PESTNC analysis TOWS matrix

Suggestions

Sources of secondary data


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Fast Moving Consumer Goods (FMCG), are the products that are

sold quickly at relatively low cost. Though the absolute profit

made on FMCG products is relatively small, they generally sell

in large quantities, so the cumulative profit on such products can

be large. (Wikipedia)

FMCGIndustry


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Deals with the production, distribution and marketing of consumer packaged

goods.

FMCGs profitability was well supported by Nestle ,Unilever Pakistan, P& G

and Angro Foods that contribute average 71% to that industry.

In FMCG industry 40% of the brands on top 100 list.

Focus on the employee investment.FMCG industry can beat the recession through efficiently management.

FMCG industry provides an opportunity to become a part of global successful

stories.

FMCG industry value is $570.1billion.

(UKESSAY.COM)

FMCG major Contributions


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4.67

4.1

2.03

891

290

Nestle

Unilever

Rafhan

Engro foods

National foods

0 200 400 600 800 1000

Key Players Investment In FMCG Industry

Amounts in millions

Source: SlideShare.com


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Unilever Angro Foods Nestle P&G

Sales Growth 15% 34% 22% 3.2%

Profit from Operations 38% 100% 14% 14%EPS 34% 181% 25.6% (16.83%)

Societal Contribution 29.2mil. Project run 21.7bil. 0

Financial Performance of Key Players in Industry

Source: Organization annual reports)


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Porter Five Forces Model

Competitive RivalryThreats of NewEntrants

Power of Buyer

Threat of

Substitutes

Power of

Supplier


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Porters Five Forces

Competitive Rivalry Threats of Substitutes1. Fierce behavior of

competitor

2. Scarce customers becauseindustry is highly saturated

3. Government rules and

regulations

4. Intensive Promotion

Schemes

5. Low Storage cost

1. Flexibility in price

2. Substandard Product

3. Customer Switching

4. Substitute product

satisfies customer need.


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Bargaining Power of

Supplier

Bargaining Power Of

Buyer

1. Bargaining power is not so

high

2. less impact on cost3. Degree of differentiation in

inputs.

4. No monopoly of supplier in

market

5. Substitute suppliers

6. No bargaining on average

products.

1. High bargaining power.

2. Price of same product at

different level of markets3. Consumers are never

reluctant to buy and try new

things of the shelf.

4. Availability of existingsubstitutes products.

5. Buyer's price sensitivity.

6. Low bargaining leverage


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* Continuing operations

Threat of new entrants

FMCG industry does not have the measures that control the entry of new

entrants.

Patents that cover vital technologies make it difficult for new competitors.

Profitable industry attracts the new competitors.

High learning power of competitors.

low resistance and complex industry structure so firms can easily enter.


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Our corporate purpose

Unilever

Unilever is a multi-national corporation

worlds leading suppliers of fast-moving consumer goods

89 million invested in community programmes worldwide

264 manufacturing sites worldwide

More than 170 countries in which our products

891 million invested in R&D worldwide

20 nationalities among our top tier managers

Unilever employs nearly 180,000 people

50 brands in Pakistan.


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The Internal Environment

1. Culture

2. Structure3. Strategy

4. Performance


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North

America

23%

Western

Europe

38%

D&E

36%

North

America

16%

Western

Europe

30%

D&E50%

Culture

Unilever culture is highly diverse, it gives equal rights to its

employees to learn and grow without any restrictions. It provides

friendly environment that helps in developing their internal

capabilities.

Structure

Unilever has adopted both centralized and decentralized

organizational structure for effective decision making to solve interdepartmental conflicts but also helps in solving external issues.


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Strategy

Strong relationship with consumers and are the

foundation for our future growth.

Commitment to exceptional standards of

performance and productivity.

Highest standards of corporate behaviour

Creating long-term value for our shareholders,

our people, and our business partners.


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Ice Cream &

Beverages

Personal Care

Savoury,

Dressings& Spreads

Performance

Underlying Sales growth 15%

Overall turnover 7.9 billion

Profit from operations is 38%

Earning Per share up by 34%

Waste per ton of production .41 as in 2011 it is.91per kg.3% growth in volume of mature products

20% growth in emergent products.

87% incremental investment in emergent categories.

20% growth in House of personal care.Beverage category registered have top line growth of 20%.

10% growth in top line ice cream products.

Unilever spend almost 29.2million on corporate philanthropy.(Source: Annual report of Unilever 2012)


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Product Profitability Analysis Among Competitor

UniliverP & G Kraft Nestle

Top segment C/G foodsConsumer

careFood Food

Top brand Dove Tide Mac & cheese Kitkat

Growth 15.55% 9.25% 8.2% 11.23%


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The Customer Environment1. Who are our current and potential customers?

2. What do customers do with our products?

3. Where do customers purchase our product?

4. When do customers purchase our product?

5. Why and how customers select our product?

6. Why do potential customers not purchase ourproduct?


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SWOT ANALYSIS
http://www.google.com.pk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=p1__adCNvjc3jM&tbnid=8o4JxuLcpVS9wM:&ved=&url=http://latticecapital.wordpress.com/2012/01/04/swot-a-strategic-tool-to-create-your-sustainable-niche/&ei=5oRpUeaWGYjtrQfimoDwAQ&bvm=bv.45175338,d.bmk&psig=AFQjCNG3CNH5CR79SUJEC25A-ZFZlng_fg&ust=1365956198875990


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Preliminary data pending audit.

Strength Weaknesses1. Strong portfolio of brands

2. Research and

development3. Variety of products4. Competitive advantage

5. Promotion and advertising

6. Effective and attractive

packaging

7. Customer Loyalty

1. Import of Raw material

for production2. Exposed to devaluation of

rupee.

3. Non direct connection

with customers

4. Inefficient management ofbrands


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Preliminary data pending audit.

Opportunities

Threats

1. Rapid expanding in urban

areas.2. Creating brand awareness

helpful for retention of

customers.3. Health conscious products

demand

4. Changing life styles5. Increase in production volume6. Profitability and sale growth

enhancement.

1. Economic downturn

2. Environmental effects

3. Global competition4. New local products

5. legal effects

6. Increases in taxes7. Increases in prices due to fuel

prices


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PESTC ANALYSIS

PESTC

Political

Technological

SocialEconomical

Competition


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PESTC Analysis

Political and legal

Political stability

TAX Regulation Trade Regulation

Employment Laws

Environment Laws

Health and safety laws

Employment laws

Consumer laws


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PESTC Analysis

Economic Factors Highly competitive market

Economic Downturn

Interest rates

Exchange rate

Inflation rate GDP growth rate


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Competition

Brand Competitor

Products with similar features and benefits to same customer with

similar prices.

Product Competitors

Same product class but different in features, benefits and price

Generic Competitors

Different product that meets the need of customers Total Budget Competitors

Compete for the limited financial resources of the same customer


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PESTC Analysis

Sociocultural FactorsLife style

Age

ReligionEducation


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PESTC Analysis

Technological Factors

R&D Activity

Informational Technology

New machines

Environmental Factors

Climate change

Diseases

Weather


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External Opportunities

1. Rapid expanding in urban areas.2. Creating brand awareness helpful for

retention of customers3. Profitability and sale growth

enhancement.

External Threats

1. Global competition

2. New local products

3. Increases in taxes4. Increases in prices due to fuel prices

Internal Strengths

1. Strong portfolio of brands

2. Research and development

3. Competitive advantage

SO

"Maxi-Maxi" StrategyStrategies that use strengths to maximize

opportunities.

ST

"Maxi-Mini" StrategyStrategies that use strengths to minimize

threats.

Internal Weaknesses

1. Import of Raw material for

production2. Non direct connection with

customers

3. Inefficient management of

brands

WO

"Mini-Maxi" Strategy

Strategies that minimize

weaknesses by taking advantage of

opportunities.

WT

"Mini-Mini" StrategyStrategies that minimize weaknesses

andavoid threats.

TOWS Strategic Alternative Matrix


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We suggest them to go for the mini- maxi strategy. They should overcome

their weakness to avail the external opportunity. They cannot beat theexternal threat because our economy is very dynamic, therefore they have toadopt the mini-maxi strategy.

By using the porter five forces model they can develop an edge over rivalfirms. They should use their key success factors in order to increase the

supplier's bargaining power.

Through the SWOT analysis they can improve their performance. They shouldconverted their weakness in to strength.

PEST analysis is helpful in determining the opportunity in the market and risksof global expansion.

Suggestions


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Secondary Data Source

Daily times (Saturday, February 25, 2012).

Annual Reports of Unilever

Various types of Website

Different research report.

Different Newspapers, Articles, Journals

and Publication.


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Assignment 2 (Strategic Marketing)

Documents

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