Walls STRATEGEIC MODEL

STRATEGIC MODELWall’s by Uniliver

Presented by: Madiha Muhammad Aslam (669-2013)

Muhammad Farhan (241-2013)Syed Imran Hussain (304-2013)

Ahmed Omer Waleed (408-2013)Samer Naheed (460-2013)

Introduction: Why we Choose Walls. Internal:

Actual & Proposed Vision and Mission

Economic Performance Strengths and weaknesses

Analysis: IFE

External: Manufacturing Opportunities and threats

Analysis: EFE Competitors

Market Share Analysis: CPM

Analysis SWOT Matrix IE matrix Grand Strategy Matrix QSPM

Possible strategies: Matrix Analysis

Decisions Evaluation Conclusion

IntroductionThe area in which we are interested is food and beverages. Unilever is one of the largest companies of this field and is a subsidiary of Proctor and Gamble (P&G). Unilever has many consumer products. Some of its popular brands are Surf Excel, Dove, Lux, Knorr, Brooke Bond, Lipton, Fair & Lovely, WALL’S, Dalda, and Sun Silk etc. LBPL started its operations in 1948. And presently its headquarters is at Avari Towers Karachi. LBPL was incorporated as an independent Unilever company in 1955. Lever brothers have a sizzling market share of 60% in Pakistan. And their field of business includes Tea, Detergents, Personal hygiene, Edible fats, Consumer products and Ice cream.

Unilever is one of the world’s leading suppliers of fast-moving consumer

goods. We aim to provide people the world over with products that are

good for them and good for others.

Creating a better future every day

Unilever Pakistan LtdUnilever Pakistan (70.4% Unilever equity) is the largest FMCG company in Pakistan, as well as one of the largest multinationals operating in the country.

Wall's - Global Leader Wall’s is sold in more than 40 countries making it the most widely

available ice cream worldwide. Unilever is the global leader of ice cream and frozen desserts manufacturing with almost 18% of the global market share.

History of the Heart brand Unilever has been selling ice cream for decades, however the Heart brand

was launched world wide in 1999. The Heart brand logo is common to every country and has come to be synonymous with quality treats. Wall’s operates under different names in different markets (Wall's in the UK and most parts of Asia, Algida in Italy, Langnese in Germany, Kibon in Brazil, and Ola in the Netherlands).

Wall's Pakistan Wall’s came to Pakistan in 1995 establishing the Wall’s factory on Multan Road in Lahore. Fully equipped with state of the art machinery, the Wall’s factory is a standard of hygiene and technology in the region and has become synonymous with quality. Some of the most popular brands loved by the masses are now linked to Wall’s; making an irresistible combination that few could refuse.

Key facts about Wall’s Pakistan:Wall’s is the market leader of the Pakistani Ice cream market.All Wall’s products are Halal and are made with Halal ingredients in a Halal compliant manner

Why we choose walls: Multinational. High Growth rate. Monopoly broke recently. Innovated approach.

Due to recent Moore launch competition became tough. We wish to propose new strategies.

Board of DirectorsIndependent Director & Chairman of the BoardMr. Kamran Y. Mirza

Executive Director Ms. Fariyha Subhani (Chief Executive)Mr. Ali Tariq (Chief Financial officer)Mr. Ehsan A. Malik

Non Executive Director:Mr. Zulfikar MonnooMian M. Adil MonnooMr. Kamal MonnooMr. Badaruddin F. VellaniMs. Shazia Syed

OUR BRANDS

VisionThe four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there: We work to create a better future every day

We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for the world.

We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

Mission Statement“Vitality is at the heart of everything we do. It's in our brands,

our people and our approach to business.”1. Customers Yes2. Products or services Yes

3. Markets No

4. Technology No

5. Concern for survival, growth, and profitability Yes

6. Philosophy yes

7. Self-concept No

8. Concern for public image No

9. Concern for employees yes

Mission Statement (Proposed)“Vitality is at the heart of everything we do. It's in our brands, our people

and our approach to business by bringing innovation to compete globally.”

1. Customers Yes2. Products or services Yes

3. Markets Yes

4. Technology Yes

5. Concern for survival, growth, and profitability Yes

6. Philosophy Yes

7. Self-concept Yes

8. Concern for public image Yes

9. Concern for employees yes

Input Stage

PESTEL Opportunity ThreatsPolitical x Due to strike some times ice

creams gets waste during distribution.

Economical • Gap in Mkt. for diet ice cream, which Wall's can cover because they are more, establish than other's.

• Specially Market for wedding events.

Omore is also new comer, but rapidly increase in their Market share is a big threat for Wall's.Socialx

Technology Bringing hybrid machines to face power failure.

Retailers don’t have capable frizzer to keep ice cream. Omore started distributing.

Environment x Global Warming. Legal x X

External Factors

Internal FactorsStrength

Financially Strong. Wide distribution, due to establish distribution

channels. High Quality Good image in the mind of Customer. Aggressive Promotion scheme's.

Weakness Pure milk is not used in ice cream There is no variation in Taste. Only one manufacturing unit i.e. in Multan. Low sales in winter season.

IFE Internal Factor Evaluation Matrix Key Internal Factors Weight Rating Score

StrengthsFinancially Strong. 0.08 2 0.16

Strong distribution 0.20 4 0.80

High Quality 0.10 3 0.30

Good image in the mind of Customer. 0.10 3 0.30

Aggressive Promotion scheme's. 0.10 3 0.30

Weaknesses Pure milk is not used in ice cream 0.10 2 0.20

There is no variation in Taste. 0.12 4 0.48

Only one manufacturing unit i.e. in Multan. 0.08 2 0.16

Low sales in winter season & Ramadan. 0.12 2 0.24

Total 1.00 2.94~ 3.00

EFE External Factor Evaluation Matrix Key Internal Factors Weight Rating Weighted ScoreOpportunity

Gap in Mkt. for diet ice cream. 0.20 3 0.60

Bringing hybrid machines. 0.15 2 0.30

Specially Market for wedding events. 0.22 3 0.66

ThreatDue to strike some times ice creams gets waste during distribution.

0.12 4 0.48

Omore 0.13 3 0.39

Retailers don’t have capable frizzer to keep ice cream. Omore started distributing.

0.10 3 0.30

Global Warming. 0.08 2 0.16

Total 1.00 2.89~3.00

THE MATCHING STAGE

SWOT Matrix Strength

1. Financially Strong.2. Wide distribution.3. High Quality4. Good image.5. Aggressive Promotion

scheme's.

Weakness1. Pure milk is not used in ice

cream 2. There is no variation in

Taste.3. Only one manufacturing

unit i.e. in Multan.4. Low sales in winter season.

Opportunity1. Gap in Mkt. for diet ice

cream,2. Bringing hybrid machines to

face power failure.3. Specially Market for

wedding events.

(S1+O1)= Launch new diet ice cream. (P.D, M.D,)

(S3+O3)= Make new Add for weddings. (M.P)

(W3 + O2)= Start new unit in any other city. (M.D)

(W2+ O3 +O1)= Bring new taste.(P.D)

Threat:1. Loss due to strike2. Omore rapidly increase in

their Market share.3. Frizzer problem4. Global Warming.

(T3 + S1 +T4 )= Distribute Frizzes and Service timely. (H.I)

(W3 +T2)= By creating more plant grip over market share. (M.D )

I II III

IV V VI

VII VIII IX

1234

1

2

3

4

IFEEF

EIE Matrix

Group V= Grow & Build

IntegrationDiversificationMarket DevelopmentProduct DevelopmentRetrenchment

Grand Strategy Matrix

Slow Market Growth

Rapid Market Growth

Strong Competitive Position

Weak CompetitivePosition

Quadrant 2

Quadrant 3

Quadrant 1

Quadrant 4

Quadrant 1

IntegrationMarket PenetrationMarket DevelopmentProduct DevelopmentConcentric Diversification.

Strategy Shortlisting

SWOT I.E G.S.M

Product Development

Integration Market

Development

IntegrationDiversificationMarket

DevelopmentProduct

DevelopmentRetrenchment

IntegrationMarket PenetrationMarket

DevelopmentProduct

DevelopmentConcentric

Diversification.

1. Launch new diet ice cream with new taste.

2. Start new unit in any other city.

Selected Strategy

Decision Stage

QSPMWeight Strategy 1 Strategy 2

Strengths R S R S

Financially Strong. 0.08 1 0.08 2 0.16

Strong distribution 0.20 1 0.20 4 0.80

High Quality 0.10 1 0.10 2 0.20

Good image in the mind of Customer. 0.10 3 0.10 3 0.30

Aggressive Promotion scheme's. 0.10 2 0.20 2 0.20

Weaknesses Pure milk is not used in ice cream 0.10 1 0.10 1 0.10

There is no variation in Taste. 0.12 4 0.48 3 0.36

Only one manufacturing unit i.e. in Multan. 0.08 1 0.08 4 0.32

Low sales in winter season & Ramazan. 0.12 1 0.12 1 0.12

QSPM (Continue)Weight Strategy 1 Strategy 2

Opportunity R S R S

Gap in Mkt. for diet ice cream. 0.20 4 0.80 4 0.80

Bringing hybrid machines. 0.15 1 0.15 4 0.60

Specially Market for wedding events. 0.22 2 0.44 1 0.22

ThreatDue to strike some times ice creams gets waste during distribution.

0.12 1 0.12 3 0.36

Omore 0.13 2 0.36 2 0.36

Retailers don’t have capable frizzer to keep ice cream. Omore started distributing.

0.10 1 0.10 1 0.10

Global Warming. 0.08 1 0.08 1 0.08

Total 4.02 5.08

Implementation

This seemed to an important step where we had to choose either to go for market development or product development. The interesting fact was that walls has open outlets by name Magnum 2014.

Our Recommendation: Considering this fact now we recommended Walls to Introduce new

range of Diet ice-creams. Bring new range of stick ice-cream Introduce new flavors

Paan flavor(sweat and strong for Gutka lovers) Bounty Mithaye Flavours

Create one more manufacturing unit.

Evaluation

Conclusion

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