Upload
rafaqat-ali
View
223
Download
0
Embed Size (px)
Citation preview
7/30/2019 Assignment 2 (Strategic Marketing)
1/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
2/34
Acknowledgment
I would like to gratefully acknowledge the enthusiastic
M r. Kash i f Saeedduring this work.
7/30/2019 Assignment 2 (Strategic Marketing)
3/34
Agenda
Industry introduction
Porter five forces
Company profile
SWOT analysis
PESTNC analysis TOWS matrix
Suggestions
Sources of secondary data
7/30/2019 Assignment 2 (Strategic Marketing)
4/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
5/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
6/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
7/34
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)
7/30/2019 Assignment 2 (Strategic Marketing)
8/34
Porter Five Forces Model
Competitive RivalryThreats of NewEntrants
Power of Buyer
Threat of
Substitutes
Power of
Supplier
7/30/2019 Assignment 2 (Strategic Marketing)
9/34
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.
7/30/2019 Assignment 2 (Strategic Marketing)
10/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
11/34
* 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.
7/30/2019 Assignment 2 (Strategic Marketing)
12/34
7/30/2019 Assignment 2 (Strategic Marketing)
13/34
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.
7/30/2019 Assignment 2 (Strategic Marketing)
14/34
The Internal Environment
1. Culture
2. Structure3. Strategy
4. Performance
7/30/2019 Assignment 2 (Strategic Marketing)
15/34
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.
7/30/2019 Assignment 2 (Strategic Marketing)
16/34
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.
7/30/2019 Assignment 2 (Strategic Marketing)
17/34
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)
7/30/2019 Assignment 2 (Strategic Marketing)
18/34
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%
7/30/2019 Assignment 2 (Strategic Marketing)
19/34
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?
7/30/2019 Assignment 2 (Strategic Marketing)
20/34
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=13659561988759907/30/2019 Assignment 2 (Strategic Marketing)
21/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
22/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
23/34
PESTC ANALYSIS
PESTC
Political
Technological
SocialEconomical
Competition
7/30/2019 Assignment 2 (Strategic Marketing)
24/34
PESTC Analysis
Political and legal
Political stability
TAX Regulation Trade Regulation
Employment Laws
Environment Laws
Health and safety laws
Employment laws
Consumer laws
7/30/2019 Assignment 2 (Strategic Marketing)
25/34
PESTC Analysis
Economic Factors Highly competitive market
Economic Downturn
Interest rates
Exchange rate
Inflation rate GDP growth rate
7/30/2019 Assignment 2 (Strategic Marketing)
26/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
27/34
PESTC Analysis
Sociocultural FactorsLife style
Age
ReligionEducation
7/30/2019 Assignment 2 (Strategic Marketing)
28/34
PESTC Analysis
Technological Factors
R&D Activity
Informational Technology
New machines
Environmental Factors
Climate change
Diseases
Weather
7/30/2019 Assignment 2 (Strategic Marketing)
29/34
7/30/2019 Assignment 2 (Strategic Marketing)
30/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
31/34
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
7/30/2019 Assignment 2 (Strategic Marketing)
32/34
7/30/2019 Assignment 2 (Strategic Marketing)
33/34
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.
7/30/2019 Assignment 2 (Strategic Marketing)
34/34