Client Name

Unilever Pakistan Foods Limited

Faculty Advisor

Dr. Mohsin Zahid Khwaja

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

This Experiential Learning Project (ELP) aligns directly with Investment Decision Making by treating every strategic choice as a financial investment requiring rigorous, data-driven analysis. Rather than being a simple marketing plan, the project uses quantitative tools like elasticity modeling to evaluate the financial return on potential decisions in a high-interest-rate environment. For example, recommending to "invest in expanding numeric distribution" is not just a sales tactic; it is a specific capital allocation decision justified by a quantifiable return, as indicated by the +0.45 distribution elasticity. The entire analysis frames the core challenge as a strategic finance problem: how to allocate resources between pricing, portfolio development, and distribution to protect short-term margins while simultaneously investing in long-term brand equity.

Aligned SDGs

GOAL 12: Responsible Consumption and Production

Aligned SDGs Justification

This project directly aligns with SDG 12: Responsible Consumption and Production.

The justification is that the entire study analyzes how Knorr's production decisions—specifically its pricing and grammage ("shrinkflation") adjustments—impact consumer behavior and value perception. The project recommends creating a more responsible and sustainable production model by redesigning the portfolio with tiered offerings and value packs that better align with modern consumption habits, such as using noodles as a customizable meal base. This focus on aligning production strategies with actual consumer use and ensuring fair value addresses the core principles of SDG 12.

NDA

Yes

Abstract

The primary objective of this report is to address the critical business problem of declining sales volume and collapsing profitability for Unilever Pakistan Foods Limited's (UPFL) flagship Knorr noodles brand. This is achieved by moving beyond historical assumptions to quantitatively determine the key drivers of demand across its portfolio. This Experiential Learning Project (ELP) was designed to perform a rigorous pricing analysis of Unilever Pakistan Foods’ (UPFL) Knorr noodles portfolio in a challenging economic climate. The main objective of the project was to move beyond simple correlations and employ sophisticated statistical methods to accurately measure the price elasticity of demand for each key product in the portfolio. The ultimate aim was to enable Unilever to maximize revenue and profits while strengthening its market position against growing competition and shifting consumer preferences ,particularly amongst a digitally native, price-conscious Generation Z and to provide actionable pricing strategies for future growth.

To achieve these goals, we followed a multistage, data-centric approach within a Python-based framework. We first performed Exploratory Data Analysis (EDA) to uncover initial trends, pricing patterns, and anomalies in the provided sales and pricing data. Subsequently, we constructed Multiple Linear Regression models to control for key variables ,including distribution coverage, seasonality, and macroeconomic regimes , and to quantify the true effects of price on demand. Our approach successfully isolated pricing effects from other factors, yielding robust estimates of price elasticity, cross-elasticities with competitor products, and the influence of pack size and distribution on sales volumes.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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Available for download on Saturday, June 15, 2030

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