lux distribution strategy

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UNILEVER HISTORY

Lever brother is the old name of Unilever, changed into unilever after the merger of LEVER BROTHER & MARGARINE UNIE in 1930

Unilever is the largest and leading multinational company

Unilever commence their business from Netherlands

Its products are on distribution in 151 countries around the world

UNILEVER PAKISTAN

In Pakistan it contributes to economic development by operating four factories at different locations around the country

The company is manufacturing and marketing THE home and personal care products, beverages, ice creams and spreads

Has 20,0000 employees in the Pakistan

Operating in Pakistan for over the last four decades

MISSION

UNILEVER PRODUCT’S

ANALYSIS

PRODUCT OF FOCUS

IN DESCRIBINGDISTRIBUTIO

N STRATEGY

LUX INTRODUCTION

Lux soap was first launched in 1916 as laundry soap

The name 'Lux' was chosen as a play on the word "luxury.“

LUX has been widely advertised in Pakistan from more than 50 years

LUX is the leading soap brand in Pakistan, representing the stylish class of Pakistan

Lux always likely as a “pure and mild” solution to soft and smooth skin.

The market share of LUX is 43 %

PRODUCT LINE

Strawberry & Cream

Crystal Shine

Peach & Cream

Aqua Sparkle

Magical Beauty

Nature Pure

THE SUPPLY CHAIN OF LUX (UNILEVER)

Unilever has a system, which gives maximum result. Supply of product is monitored in such a

way that there are minimum chances of shortage in supply

DISTRIBUTION OF LUX

Lux is distributed in Pakistan three major sections

Sales

CENTRALSOUTHNORTH

40%30%

30

DISTRIBUTION STRATEGY OF LUX

Unilever has a centralized Intensive distribution system

The main strategy of Unilever is Cross Docking

Corporate commitment to promote process improvement globally

TRADITIONALDISTRIBUTION NETWORK

Unileverwareho

uses2

Distributor

4500+

Whole seller

Retailer 4.5 lac

Consumer

Covered about 65%

LUX STAGES OF DISTRIBUTION

PRIMARY STAGE

SECONDARY STAGE

TERRITORY STAGE

CNC •Cash and Carry •(Distributors)

IMT •International Modern Trade •(Makro and Metro )

LMT •Local Modern Trade •(general trade )

MODERN DISTRIBUTION NETWORK

DISTRIBUTORS OF LUX

• Molan and Philips• HM saya

Unilever manages a number of distributors in Pakistan

DISTRIBUTION PROCEDURE

Faisalabad

Karachi

Wazirabad

Lahore

Rahim Yar Khan (Central)

Dera Ismail Khan

Multan

• Distribution department sends

products directly to distributors

• Sales department makes sales

contracts with different parties

and supply by advising

distribution in rahim yar khan

factory

• Sales department send plans for

dispatch to these depots which

take necessary action .

DISTRIBUTION FUNCTION

In Unilever central distribution department (Rahim Yar Khan) performs following functions:

Receives finished products from production

departments

Receives monthly or weekly plans for distribution from

marketing & sales department

To makes daily dispatch plan

To arrange transport facility for delivery of products

DISTRIBUTION ALLOTMENT OF LUX

WORLD WIDE DISTRIBUTION

DISTRIBUTION IN PAKISTAN

GEOGRAPHICCONTINE

NTASIA

COUNTRYPAKISTAN

CITYALL

MAJOR CITIES

DENSITY URBAN

DEMOGRAPHICS

AGE15-50+

GENDERFEMALES

DISTRIBUTION STRATEGY OF LUX IN RURAL AREA

Coverage of Villages Use of Cooperative

Utilization of Public Distribution System

Distribution to Feeder Markets

UNILEVER

DISTRIBUTORS

MANDI TOWN WHOLESALERS

SHOPKEEPERS AT VILLAGE

Rural coverage was expanded through a focused approach, adding 3,500 new villages and increasing

UPL reach by 10,000 POPs in the rural area

DISTRIBUTION STRATEGY AND LUX LIFE CYCLE

•Build selective distributionINTRODUCTION STAGE

•Build intensive distributionGROWTH STAGE

•Build more intensive distributionMATURITY STAGE

DECLINE STAGE • Go selective

ENEMY DISTRIBUTORS OF LUX

The Major rival of Unilever are;

Zulfiqar industry- Capri Soaps factory located in Karachi.

 Loigate Palmolive, Max factory located in Hyderabad.

Procter & Gambler located in Karachi.

COMPETITIVE STRATEGIES

UPL provides trade incentives to distributors and customers against competitors

They also provide various schemes to attract the customer

GSM

RSM

ASM

TSM

DISTRIBUTOR

CUSTOMER

HERARCHY OF LUX DISTRIBUTION

RECOMMENDATION

Lux should not emphasis on beauty segments

Unilever Pakistan limited should expand their target market also towards the rural people

Company should increase the number of warehouses for the purpose of in time delivery

Company should spend 60% budget on distribution

Company should also conduct different promotional activities in rural areas to attract rural consumer and social awareness.

Company should provide different types of beauty soaps for male and female soap under the same brand name.

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