Product Differentiation of Unilever

Unilevers Product Differentiation

PRODUCT DIFFERENTIATION DIFFERENTIATION: Result of efforts to make a product or brand stand out as a provider of unique value to customers in comparison with its competitors. The seller faces an abundance of differentiation possibilities, including form, features, customization, performance quality, conformance quality, durability, reliability, reparability and style. The company we have chosen is ³UNILEVER PAKISTAN LIMITED´. And we will discuss all the features of product differentiation one by one by taking the personal care brands of unilever. Personal care brands include: Clear 2. Close up 1. 3. 4. 5. 6. 7. 8. 9.

Fair & lovely Lifebuoy soap Lifebuoy shampoo Lux Pond¶s rexona Sunsilk

We chose this company because of the value given to the products of unilever. According to a research ³160 million times a day, someone somewhere chooses a Unilever product´. The company says that: ³From feeding your family to keeping your home clean and fresh, our brands are part of everyday life´

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COMPANY INTRODUCTION

A Little History:

In the late 19th Century, at Oss in Brabant, the Netherlands, Jurgens and Van den Bergh ± two family businesses of butter merchants ± have t hriving export trades to the UK. In the early 1870s, they become interested in a new product made from beef fat and milk ± margarine ± which, they realize, could be mass-produced as an affordable substitute for butter. Later, over in the north of England in the mid-1880s, a successful wholesale family grocery business run by William Lever starts producing a new type of household soap. The product contained copra or pine kernel oil, which helped it lather more easily than traditional soaps made of animal fats. Unusually for the time, Lever gave the soap a brand name ± Sunlight ± and sold it wrapped in distinctive packs. In 1890 Lever & Co became a limited company ± Lever Brothers Ltd. To support and promote the growing interest in personal hygiene, Lever & Co created an affordable new product ± Lifebuoy Soap. Lever Brothers became a public company in 1894. Lever brothers, the old name of unilever changed into unilever after the merger of lever brothers & margarine unie in 1930.Today unilever employees 179,000 people in 100 countries worldwide.

Unilever Pakistan Limited: UPL (unilever Pakistan limited) was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed. Its contribution to Pakistan's economic development cannot be overestimated. Now operating four factories at different locations around the country, the company contributes a significant proportion of the country's taxes. It provides a pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies into the country. The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated near the factory is the home of UPL employees at Rahim Yar Khan.

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COMPANY¶S MISSION STATEMENT:

Unilever's mission is to add Vitality to life. ³We help people around the world meet everyday needs for nutrition; hygiene and wellbeing, with brands that help people look good, feel good and get more out of life.´ COMPANY¶S SWOT ANALYSIS:

STRENGTHS:  Strong

 Effective

company image

 Strong brand  Success

 High

portfolio

 Quantity

quality man power

 Health

of the slogan

& attractive packaging

& personal care products

& variety

WEAKNESSES:  High

prices of products

 Substitutes  Lack

products

of control in the market

OPPORTUNITIES:  Changing  New

 Focus

life style of people

 Low

markets

 Increase

on R&D

income consumers

the volume of production

THREATS:  Competitors(P&G)

 Change

 Political

 Increase

effects

 Economic

 Chance

crises

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in life style of peop le in production & labor cost

for price war


CLEAR SHAMPOO Segmentation of Clear: It is being developed for the persons having the problem of dandruff. Personal Hair Care ± Anti Dandruff Shampoo

Target Group:

Its target is both men and women. But the main target is man. Clear is known as a special hair treatment for men. Positioning:

The dual action of its advanced formula guarantees Zero dandruff and leaves the hair feeling fabulous. SWOT ANALYSIS OF CLEAR: Strengths:  Available

in 5 different variants for different types of hair needs.  Clear is brand available in over 14 countries worldwide.  Clear is the only brand that offers specially formulated Anti dandruff shampoo for men.  Celebrity brand ambassadors and good advertising

Weaknesses :  Dominance

only in the anti-dandruff shampoo segment, no variants available for normal shampoo usage.  Low market share even in the anti-dandruff shampoo segment as compared to competitors like Head & Shoulders. Opportunities:  Introduction of Anti Dandruff Hair Oil that fights dandruff and strengthens hair from scalp, as a brand

extension. Threats:

Highly competitive market having many players with similar offerings, like Head and Shoulders (P&G), Pantene, and Sunsilk. [4]


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CLEAR SHAMPOO

Clear is world leader in scalp and hair. It is trusted all over for its customized hair care solutions for men and women that give you the total 3 advantage.

It is the only scalp and hair care brand endorsed by the international academy of cosmetic dermatology. 3 advantages: 1. No dandruff

2. No dryness

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3. Less hair fall


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FORM:

Form includes the size, or physical structure of a product. Clear shampoo has made its availability easy for the consumers by selling it in different sizes of bottles and small sachets. As some people can not afford the big bottle costing 160 Rs. because

of the high price at one time so they have a choice of buying sachet in only Rs.5. the sachets have its own value. Now another market is related to sachets called ³sachet marketing´. The competitor of clear shampoo is Proctor & Ga mble¶s Head and Shoulders. Physical structure of the bottle is quite charming. They have used the blue color that is mostly liked by men. And also blue color is one of the aesthetically pleasing colors that attract men especially. The action time of the bottle handling is too short, means we can use it with quite ease. 

FEATURES:

Products are offered with varying features that supplement their basic function. Clear shampoo has several useful features in it. After years of experiments and clinical studies, Unilever Hair care experts have developed a new all-round solution for treating Dandruff.

The 3 main features of clear shampoo are that first it blocks the dandruff; second there is no dryness that causes dandruff, third it makes hair strong that they do not fall. The new Clear gives unbeaten dandruff protection and starts to get rid of dandruff from the first wash and with regular use, prevents it from ever coming back. In addition to its anti-dandruff properties, Clear has patented vita-ace technology that nourishes the scalp. Clear also features a conditioning system comparable to any other leading shampoo. Clear conditions the hair and ensures it remains soft. Clear's vision is to be the scalp health expert and in keeping with this, four variants have been designed for specific needs to consumers. A separate Men's range is also available because men are different. The most important feature to mention here is its unique selling point, that it has launched separate shampoo range for men and women. As a research tells that: ³52% of Pakistani males suffer from dandruff ± a cause of unhealthy hair and lack of confidence´. That¶s why they need separate shampoo.

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CUSTOMIZATION:

It is the process of allowing the customers to design and have the product to their choice. Marketers differentiate products by making them customized to an individual. As Unilever ha expanded its businesses so it has also customized clear shampoo according to different needs of the customers. For example some people need a shampoo for hair smoothing, while some need it to stop hair fall. Like; Clear Ice Cool:

Ice cool has cooling menthol to give a cool sensation to the scalp while ensuring healthy dandruff free scalp and hair. Clear Hair Fall Defense:

Hair Fall Defense reduces hair fall by 98%* as well as providing nourishment and dandru ff protection. *due to breakage vs. non-conditioning shampoo. Clear Extra Strength: Extra Strength has been designed for those individuals with severe dandruff and heavy flaking. Besides these core variants, Clear has extended the brand to provide specific solutions for men because men are different. It was found that men have oilier scalps and more prone to dandruff and hairfall. The packaging, perfume and formulation were specially adapted for men's needs. The men's range offers the following variants all of which have specific qualities besides getting rid of dandruff.

Clear Men Styl-Express: Style-Express has 3 in 1 Express clean formula for extra manageability so that hair can be styled easily.

Clear Men ActivSport: ActiveSport has been designed to give deep cleaning and reduce the oiliness of the male scalp. It also has cooling menthol for the clean and fresh feel in hair.

Clear Men Hair Fall Decrease: Hair Fall Decrease has hair strengtheners to reduce hair breakage. It makes sure that hair stays where it naturally belongs. This excellent range of Unisex and Men's shampoos clearly demonstrates that unilever has customized its products according to the needs of its consumers. [7]


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PERFORMANCE QUALITY:

Performance quality is the level at which the primary characteristics of the product operate. The main purpose of the shampoo is to take care of hair. But unilever has made a quality product with the name of clear shampoo at compatible price level, creating difficulties for its competitors in the market. The price is according to the range of the customers and not really high so that consumers may not afford it. Unilever has also launched its own competitive product in comparison with clear shampoo that is lifebuoy shampoo. It is low in price and obviously will be low in quality. So that the people who can not afford clear shampoo can use low price lifebuoy shampoo. 

CONFORMANCE QULITY:

Conformance quality is the degree to which all the produced units are identical and meet the promised specifications.

In case of clear shampoo the conformance quality can be the core product in packing, means in a sachets if there is 5ml shampoo in each sachet, then in every sachet is should be 5ml. Or this example can be extended to big bottle. The big bottle of 200ml should give exact volume when using otherwise with low conformance quality the p roduct will disappoint some buyers. 

DURABILITY & RELIABILITY:

Durability is the measure of the product¶s expected operating life under natural or stressful conditions. In case of a shampoo it can be the span under which the shampoo is expired that is three years after production. So from selling point of view that attribute is important. If the units are not sold immediately from shops then the shopkeeper need a promise from the company that the product will not be spoil with the change in weather. because if the spoiled product will be sold to the consumers, the company will lose its credibility. 

DESIGN & STYLE:

Design is the totality of features that affect how a product looks, feels, and functions in terms of customer requirements. Style describes the product¶s look and feel to the buyer. The bottle of clear shampoo has very unique look and it uses dark blue color that is aesthetically appealing to men. As its unique selling point is its unisex range so its dark blue color is very supportive in its selling. Its shape from tope is very curvy, easy to hold and its cap is very easy to open and close. To the company a well designed product is one that is easy to manufacture and distribute. To the customer, a well designed product is one that is pleasant to look, easy to open and dispose. And the bottle of clear shampoo fulfills all these requirements from both the company and consumer po int of view as mentioned earlier.

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LUX SOAP Segmentation of Lux soap:

This soap is made for the personal care. The people who are more beauty and health conscious choose Lux. Target Group:

The main target of Lux soap is urban & semi urban area, upper and middle class. Positioning :

Affordable Luxury Soap for the upper and middle class people.

SWOT ANALYSIS OF LUX SOAP: Strengths:  Many

variants are available as co mpared to its competitors.  Lux soap brand is sold in over 100 countries.  Dynamically continuous innovations ± New variant s and innovative promotions (gold coins in the soap).

Weaknesses:  Mainly

positioned as beauty soap t argeted towards women, lack unisex appeal.  Not much popular in rural areas.

Opportunities:  Liquid

body wash is currently in growth stage so Lux should come o ut with more variants in this segment.

Threats:  High

internal competition facing from safeguard and detto l soap.  High internal competition like Saba beauty soap.  The soap is at maturity stage so threat of slipping down to decline stage if constant reinvention is not carried out.

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2.

LUX

Lux stands for promise of beauty and glamour as one of Pakistan's most trusted personal care brands. The undisputed leader market for over a decade. Lux has gone from strength to strength since 1954. That was the year when local production of this remarkable successful toilet soap began. Lux happens to be the largest Lever brand globally, with its glamorous association with film stars providing a common link across the world. The secrets of the brand¶s success are that movie with the time and remain contemporary in every area. The international campaign featuring popular film star has added the to uch of glamour Lux has always been associated with. LUX has always been synonymous with beauty and the enigma of a woman. Since its launch in Pakistan in 1954, it has been hailed as the 'soap of the stars' capturing the imagination of its target audience with the allure of Pakistan's leading glamorous ladies.

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FORM:

Unilever offers Lux toilet soapface wash in various size and shape to attract customers and giving more choices for customer. Give products in more variety like face wash with honey extracts, lemon extracts, aloe Vera etc. Lux now offering different shapes like now Lux is available in small and also in big packs relevant to price and also relevant to people who use Lux. These forms are made to attract the customers and to facilitate the customer according to their needs.

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FEATURES:

The main features of Lux are;

Lux Fragrances: The fragrance of Lux soaps varies depending on the product. The Lux bar soaps come in a variety of floral aromas, with the light rose scent being the most common. The Lux shower gel soap and hand wash soaps are produced in a wide range of scents Lux Colors: Lux soaps feature a palette of pastel colors. While Lux soap once came in only the standard white color, in 1958, Lux started to produce five color options: pink, white, blue, green and yellow. The Lux bar soaps are still available in this range of colors today. Affordable Luxury:

Lux soap compared Capri and Lux soap Unilever.

is intended to be an affordable luxury. While the bar soap is inexpensive when to soaps that can be purchased in department stores or from major beauty soaps like Dettol beauty range, the product is of similar quality to the more expensive options. offers people "a chance to pamper themselves for a modest price," according to

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CUSTOMIZATION:

In customization they made different category soaps for different people like they make,

Aqua Sparkle

Crystal Shine

Nature Pure

Peach & Cream

Strawberry & Cream

Peach and Cream

Strawberry and Cream

Magical Beauty(Purple)

Strawberry and Cream handwash

Peach and Cream handwash

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PERFORMANCE QUALITY:

The main purpose of the lux soap is to protect your skin. It helps to remove dust from your face, and gives beauty to your face. Unilever has maid this product to facilitate customer at each level. They are selling it at not very high price they are selling it at moderate price so that everyone can easily afford it. Unilever has strong competitor P&G. 

CONFORMANCE QULITY:

Unilever is a famous company in delivering FMCGs in Pakistan, so it can not compromise on its single products; single unit. It is the policy of Unilever to meet or exceed customers' requirements and expectations, including those for product quality, service, and delivery. Unilever is committed to meeting these requirements through adherence to and continual improvement of Quality Management System and focus on the customer. Iso 

DESIGN & STYLE:

The design of the shape o f Lux soap is quite unique from other soaps; also it includes the fruit extracts that make it differentiated from its competitors.

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REFERENCES: 1. http://www.unilever.pk/brands/ 2. http://www.mbaskool.com/brandguide/fmcg.html 3. www.myprojectpaper.com/user/image/lux-final.doc

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Product Differentiation of Unilever

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