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Marketing Strategy
Of
Unilever Bangladesh Ltd.
(According to the Company Marketing Mix & STP)
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Letter of Transmit
April 07, 2016
Kohinoor Biswas,
Assistant professor
Department of Business administration,
East West University
Sub: Submission of a report on “Unilever Bangladesh Ltd”
Dear Madam,
With great respect, I on behalf of the students of BUS-231, Sec-02 want to
submit the report. We have worked on “Marketing strategy (segmentation,
Targeting, differentiation & Positioning) and Marketing mix (Product,
price, place, & promotion) of Unilever Bangladesh Ltd. While making the
report we have gathered some new experiences and faced some problem but
we have done finally with great success.
Finally, I would like to thank you for the opportunity this report gave us to
learn something better than before and to develop our research skills, which
will be invaluable for future projects.
Your sincerely,
Md, Alauddin ID no. 2014-2-10-142
Imran Hossain Roby ID no. 2014-2-10-150
Rizvan Khandaker ID no. 2014-2-10-056
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Table of Contents
Executive summary -------------------------------------------------------------iv-v
Chapter 1: Introduction of report 6
1.1. Origin 7
1.2. Objectives 8
1.2.1 General objectives 8
1.2.2 Specific objectives 8
1.3 Methodology 9
1.4 Limitations 10
Chapter 2: Company Profile 11
2.1 Company profile 12
2.1.1. Unilever 12
2.1.2. Unilever Bangladesh Ltd 13
2.2 Mission 14
2.3 Vision 15
Chapter 3: Marketing Mix 16
3.1 Tools for Business professionals 17
3.1.1 Products 17
3.1.2 Affordability of consumer 24
3.1.3 Price 25
3.1.4 Attracting the target market 26
3.2 Marketing strategy 27
3.2.1 Divide large market into small segments 27
3.2.2 Targeting market 28
3.2.3 Evaluating market segments 30
3.2.4 Designing product based on consumer’s demand 32
Chapter 4: Conclusion 34
Appendix Part 35
References 36
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Executive summary
Unilever Bangladesh ltd is one of the world’s most successful fast moving consumer
goods manufacturing companies with local manufacturing facilities, reporting to
regional business groups for innovation and business results. The whole marketing
strategy (4P’s and STP model) of Unilever Bangladeshltd. is reviewed in this report.
4P’s are the part of marketing mix which is a business tool used in marketing by
marketing professionals. In case of determining a product or brand‘s offering, this
marketing mix is very crucial for the company. Product is the first one in 4P’s which
is very significant. Personal care, Home care Food brand products are being marketed
by Unilever throughout world. Close up, Dove, Lifebuoy from Personal care; Surf
excel, Vim from Home care and Knorr from food brands are fulfilling the needs of
target market.
Pricing is very tactical fact that every company must handle it very carefully. UBL
(Unilever Bangladesh ltd) adopted some strategies known as Product-line pricing,
Competitive pricing and Distribution pricing. Besides UBL also maintain Low pricing
for obtaining maximum profit, Different price lists for different markets along with
Reducing product price to maximize sales which allow to increase production and
reduce unit production cost.
Another P is known as Place. Unilever set its placing strategy in such way that in
every small or big shop, customers could be able to find out their product that they
are looking for. Besides that, rural penetration, Strategic location of warehouse,
increase of warehouse for product and set up national service network etc. are being
followed by UBL as strategic placing policy.
In Promotion activities, Active performance is quite promising to their consumers.
Media, newspaper, radio, Hoarding, sales promotion- there are the media that
Unilever uses in promotion activities. Apart from that, Strengthen sales force
organization, reorganize sale force in particular area increase advertising for the
product in specific market considered as promotional activities.
Segmentation, Targeting and positioning are known as STP model in marketing
strategy. This is the process through which a company divide its large market into
small parts, Target their market where they focus to sell their product, Evaluating
market segment with Porter’s 5 forces that can shape industry competition, Select
the very best target market portion/segment which is known as Differentiating and
at the end, placing the product based on that differentiating.
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Through Market segmentation Unilever Bangladesh Divide large heterogeneous
market into small segments that can be reached more efficiently and effectively with
their product and service that match their unique needs. Different segmentation
variables alone and in combination has been tried to find the best way to view the
market structure. These variablesare Geographic, Demographic,Psychographicand
Behavioral. Based on country Region and density of city criteria geographic variables
are being selected. Income, occupation, gender and Age criteria fulfill the
demographic variable. Social class and lifestyle can determine the psychographic
needs and behavioral criteria’s are based on occasions, user rate and user status.
Market shoppers are trading down to lower-priced goods-widening the pools of
having and not having consumers at the expense of middle, stated by Unilever
executives. Based on that, Unilever estimated that is has one product in 98% of
family’s households, to fundamentally change the way it develops and sell its goods.
Popular products of UBL such as LUX which target market is from working class to
middle class family, FAIR & LOVELY for young women, AXE for young and stylish
men of 18-26 ages.
Evaluation of segmented market is mainly focus to beat the competition by
overcoming the challenges offered by rival companies. Five forces that can shape
industry competition are Threats of new entrants, substitute products along with
bargaining power of suppliers, buyers in the middle of Rivalry among the existing
competition.
Selecting the targeted market segment is basically design the product based on
consumers demand. Unilever focused on improving the lives of the world’s
consumers and that is why they follows differentiated target market segment. For
that reason, each offers are separate from others in target several market segments.
Differentiating positioning possessed the main factors that can influence most of
sales. Lux possess the special attributes to make beautiful, Close up possess the
attributesthat refresh your teeth with freshening your breath and Surf excel is ready
to remove any kind of stains. In positioning,UBL followsmore service in less or same
price. So this is why, they can satisfy their consumers with their services.
So, this is the major facts that this report contains. Marketing tools are regarded as
the weapon of a company. At the end we can say that UBL is following that suitable
strategy in their marketing. And it is ready to change its formulas according to the
changes in the market.
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Report Body
Chapter 1: Introduction of report
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1.1 Origin
This report is prepared for Kohinoor Biswas, assistant professor and course
instructor of “Business communication”, Department of Business
administration, East West University. As part of course, this report is to be
submitted by students of BBA Department. Such report is helpful for the
students to gain practical knowledge, experience and adaption with situation.
This will help not only to learn about making a term paper but also to
understand its idea, purpose and in use of an Organization.
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1.2 Objectives
1.2.1 General objectives
The main objective of this term paper is to know about the Marketing
Strategy of Unilever Bangladesh Ltd. How they develop their 4 P’s, how they
segment their market, how they evaluate segmented market and selection
process of it, and how they differentiate and positioned their products on
market.
1.2.2 Specific Objectives
To know about Unilever and Unilever Bangladesh.
To know about Unilever’s strategy regarding Product, Price, Place
and Promotion.
To identify the segmentation, targeting and positioning strategy
used by Unilever Bangladesh.
To develop some recommendation for further improvement in
marketing strategy of Unilever Bangladesh.
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1.3 Methodology
Unilever Bangladesh Ltd known as multi-national company which is why they
possessed a much enriched website. Basically, we collect almost 40% data
from their website. Apart from their web, other websites information helps us
to gather the rest of the data like marketing mix (Product, Price, Place,
Promotion) and marketing strategy (Segmentation, Targeting and Positioning).
All the websites are mentioned in the reference part of appendix. This is how
we collect data about UBL regarding this report.
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1.4 Limitations
We are pleased enough to get an opportunity to prepare a report on “Marketing
Strategy of Unilever Bangladesh Ltd.”. We tried heart and soul to prepare a
well-informed report but as a matter of fact that we faced some difficulties
while we were preparing it. Though we tried our level best, some difficulties
didn’t get off out tail. Another fact is, within a short time, we had to prepare
other courses reports in other section. For this reason, we could not get a
fluent time schedule for the report. The employers of UBL (Unilever
Bangladesh Ltd.) were so busy that they did not help us that much. Which is
why, we could not fulfill our queries and some of these are neglected us to
support. Whatever, we managed to complete our report on time. We hope that,
you would consider our report except our lacking’s and limitations.
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2.1 Company Profile
2.1.1 Unilever
Unilever is British-Dutch Multinational Fast Moving Consumer
Goods(FMCG) company. Their products include foods, beverage, cleaning
agents, and personal care products. It’s the world’s Third-largest consumer
goods company measured by revenues (after Proctor & Gamble and Nestle)
and world’s largest maker of ice cream. As of October 2014, their Revenue is
$ 66.1 Billion and Profit $ 6.4 billion. It is the 6th largest company in FMCG
with market value $ 124.5 billion.
Unilever was founded on 1st January 1930 by Antonius Johannes, Samuel
van den Bergh and William Hulme lever, 2nd viscount leverhulme. The
amalgamation of the operations of British soap makers Lever Brothers and
Dutch margarine producer Margarine Unie (a 1927 amalgamation of Anton
Jurgens Margarinefabrieken N.V and Samuel van den Bergh) made sound
commercial sense. As palm oil was a major raw material for both margarines
and soaps and could be imported more efficiently in larger quantities.
The current Unilever logo was introduced in 2004 and was designed by the
brand consultancy Wolff Olins. It’s composed of 26 icon woven together to
create U shape; with each icon representing one of the company’s sub-brands
or its corporate values. The brand identity was developed around the idea of
“Adding vitality of Life”.
Unilever owns more than 400 brands; although its 25 largest brands account
for over 70% of total sales. Unilever focuses resources on 13”Billion-Euro
Brands” each of which has annual sales in excess €1 billion.
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2.1.2 Unilever Bangladesh Ltd (UBL)
ver the last few decades, Unilever Bangladesh has been constantly
bringing new and world class products for the Bangladeshi people to
remove drudgery of life. Over 90% of the country’s households use one
or more of our products.
Type of Business: FMCG (Fast moving consumer goods) company
with local manufacturing facilities, reporting to regional business
groups for innovation and business results.
Operations: Home and personal care, Beverages, Food products etc
in Bangladesh.
Constitution: Unilever 60.75% shares, Government of Bangladesh
39.75% share.
Product Categories: Household care, Fabric cleaning, Skin
Cleansing, skin care, Oral care, Hair care, Personal grooming & Tea
based beverages.
Brand In Bangladesh: Wheel, Lux, Lifebuoy, Fair & Lovely,
Pond’s, Close Up, Sunsilk, Taaza, Pepsodent, Clear, Vim, Surf
Excel, Rexona, Axe, Dove and Vaseline.
Manufacturing Facilities: It has soap manufacturing facilities and
a personal products factory located in Chittagong. Besides these, there
is a te packaging operation in Chittagong and three manufacturing
units in Dhaka which are owned and run by third parties exclusively
dedicated to Unilever Bangladesh.
Employees: Unilever Operations in Bangladesh provide employment
to over 10000 people directly and through its dedicated suppliers,
distributors and service providers. 99.5% of UBL employees are locals
and we have equal members of Bangladeshi working abroad in other
Unilever companies as expatriates.
O
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2.2 Mission
nilever Bangladesh mission is to add Vitality to life. It meet every
day needs for nutrition, hygiene and personal care with brands that
help people look good, feel good and get more out of life.
In the future, its brands will do even more to add vitality to life. Its vitality
mission will focus its brands on meeting consumer needs arising from the
biggest issues around the world today – ageing populations, urbanizations,
changing diets and lifestyles.
Unilever Bangladesh see growing consumer need for:
A healthy lifestyle.
More variety, quality, taste and enjoyment.
Time, as an increasingly precious commodity.
Helping people to feel good, look good and get more out of life will enable us
to meet these needs and expand its business.
The long-term success of its business is intimately interconnected with the
vitality of the environment and the communities in which they operate. The
environment provides us with its raw materials and the ingredients UBL need
to make its products. Healthy, prosperous communities provide us with a
healthy, growing consumer base.
U
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2.3 Vision
UBL vision set out the long term direction for the company – where it’s want
to go and how it is going to get there:
It works to create a better future every day.
It 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.
It will inspire people to take small everyday actions that can add up to
a big difference for the world.
It will develop new ways of doing business with the aim of doubling the
size of its company while reducing its environmental impact.
UBL has always believed in the power of its brands to improve the quality of
people’s lives and in doing the right thing. As its business grows, so do its
responsibilities.
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3.1 Tools for Business Professionals
The marketing mix is a business tool used in marketing and by marketing
professionals. The marketing mix is often crucial when determining a product
or brand's offering, and is often synonymous with the four Ps: Product, Price,
Place and Promotion; in service marketing, however, the four Ps have been
expanded to the Seven Ps or eight Ps to address the different nature of
services.
3.1.1 Products
Personal Care Brands
Closeup is the number 1 toothpaste of
Bangladesh and the first gel toothpaste of the world. It gives you the freshest
breath and dazzling smile which ignites a mouth to mind confidence.
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Pepsodent is the only toothpaste to
be endorsed by FDI – World Dental Federation and recommended by
Bangladesh Dental Society. If your smile is not healthy, you are not healthy.
Pepsodent is committed to bringing the best oral care to families.
The World’s No. 1 fairness cream brand,
Fair & Lovely, is used by nearly 80% of the households of Bangladesh, making
it the second biggest Fair & Lovely market in the world.
The World’s No. 1 fairness cream brand,
Fair & Lovely, is used by nearly 80% of the households of Bangladesh, making
it the second biggest Fair & Lovely market in the world.
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The Vaseline skin care team wants
everybody to be able to enjoy great, healthy skin every day and feel ready all
the time.
Dove is committed to helping women realize
their personal potential for beauty by engaging them with products that
deliver real care.
Lux began its story in 1924 as the
first mass marketed beauty soap. Now sold in over 100 countries, it is the
most recognizable soap brand in the world – bringing a combination of fun,
pleasure and comforts to women’s beauty routines the world over.
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For 20-something girls, hair is often an
emotional rollercoaster. Sunsilk understands and its range addresses the
most common hair dramas in 80 countries around the globe, helping girls
everywhere to gain the confidence to express themselves.
Lifebuoy is the largest health soap brand
in Bangladesh. Its vision is to meet the health and hygiene needs of 150
million Bangladeshis. Lifebuoy is a household name and this health soap is
remembered in every sector of the nation.
Scalp care is essential for strong, supple, healthy
hair – and CLEAR shampoo is developed with unique ingredients to ensure
every scalp can find its perfect balance, nourishing hair from root to tip.
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Axe offers guys a range of body sprays,
deodorants, antiperspirants, shower gels and hair products – all designed to
help them look, smell, and feel their best.
Rexona offers maximum protection you
can rely on, all day long. Our antiperspirants and deodorants are developed
to meet different demands for men and women, responding to your body to
keep you feeling confident and cool for up to 48 hours.
Home Care Brands
Surf Excel believes that dirt is good; it is an
essential part of a child’s development. It’s how children learn, express their
creativity, and even bolster their immune system.
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Wheel, the largest detergent brand in
Bangladesh, provides a delightful washing experience in millions of
households, every day.
Vim has brought a revolution in
kitchen management in Bangladeshi households. Since its launch in 1987,
Vim has been synonymous with sparkling clean dishes.
Our clothes speak for us. Rin Power
White plays an integral part in helping us to look good by providing superior
whiteness, giving us the confidence to realize our ambitions.
Food Brands
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Knorr helps families make meal times special,
nutritious, tasty and healthy. It is a tasty and healthy snack option for the
whole family with the goodness of real ingredients - containing Real Chicken
and Vegetables. Knorr soups ensure low levels of cholesterol and fat and give
you a bowl of soup that is a healthy snack with an amazing taste.
To those seeking inspiration to
take that big step, Brooke Bond Taaza awakens you to take the one step to
change your world. Taaza stands for premium quality, bringing in the world
famous tea blending expertise and heritage of the Brooke Bond House.
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3.1.2 Affordability of Consumer
Product Quantity Price
Lux 150 gm 40 tk
Vim 325 gm 30 tk
Wheel 500 gm 37 tk
Surf Excel 500 gm 99 tk
Pepsodent 200 gm 90 tk
Close up 200 gm 100 tk
They also maintain these for pricing:
Product price low and obtain maximum profit on spare parts.
Use different prices and different price lists for different markets.
Set price at 10% below market leader.
Reduce price of product to maximize sales (to allow increased
production and reduce unit production cost).
Different pricing strategies adopted by Unilever:
Optional-features strategy
Product-line pricing
Cost-plus pricing
Competitive pricing
Distribution pricing.
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3.1.3 Place
Unilever follow common system of distribution. It has made his strategy like
that in every small or big shop customer n the other hand, in order to
distribute products among customers will be able to find out the product.
Besides they do following things.
Set own distribution direct to stores.
Change distribution for area.
Increase of warehouses for product.
In store placement strategy.
Already existing strong links in urban area.
Rural penetration.
Develop marketing channels as strong and penetrated so that it
would gain access to remote areas.
Strategic location of warehouse.
Increase wholesale dealers in small towns so that they can go to the
nearby villages.
National coverage would be dealt with by increasing the company’s
warehouses and creating C&F agents in the smaller cities.
Set up national service network.
Distribution Channel of Unilever
Manufacturers/products
Agents
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users
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3.1.4 Attracting the target market
Unilever is quite active in promoting its brand to their customers. P&G has
developed a logo that is differentiable and can easily be recognized. Most
important factor to attract customers, it considers
Strengthen sales force organization.
Reorganize sale force for particular area.
Introduce performance related bonus scheme for sale force.
Recruit additional sales personnel.
Increase sales effort to increase sale to major customers.
Increase sales efforts for most profitable products
Start new advertising campaign
Increase company image advertisement.
Increase advertising for the product in specific market
Unilever uses Media, newspaper, Radio, Hoarding, Consumer promotion to
promote its products. It also telecasts some daily soap to attract women and
young people. Another world, the edge of Knight, The Brighter day, The
Catlins, The First hundred years from these roots are well rated and famous.
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3.2 Marketing Strategy
3.2.1 Divide large market into small segments
Buyers in any market differ in their wants resources location buying attitudes
and buying practices. Through market segmentation Unilever Bangladesh
divide large, heterogeneous market into smaller segments that can be reached
more efficiently and effectively with product and service that match their
unique needs. They has to try different segmentation variables, alone and in
combination, to find the best way to view the market structure. For their
consumer UBL have used some of the variables of Geographic,
Demographic, Psychographic, and Behavioral.
Geographic
Country region East, West, North, south
Density Urban, suburban, rural
City or metro
size
Major cities, mainstream, climbers, small town
Climate Northern, southern
Demographic
Age Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 65+
Gender Male, female
Income Deprived(Rs less than 90000) ,aspires(RS 90000-200000)
seekers(Rs.200000-5000000) strivers(Rs.500,000-
1,000,000) global Indians(1,000000+)
Occupation Professional and technical, managers, officials,
supervisors, farmers, retired, students, homemakers,
unemployed.
Education Illiterate, literate but no formal schooling, school up to 4th
standard, standard 5th to 9th, SSC/HSC, some college,
graduate, postgraduate, professional.
Religion Muslims, Christian, Hindu, Buddhist.
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Psychographic
Social class Lower lowers, upper lowers, working class, middle class,
upper middles, lower uppers, upper uppers,
Lifestyle Achievers, strivers, survivors
Personality Compulsive, gregarious, authoritarian, ambitious
Behavioral
Occasions Regular occasion, special occasion, holiday, seasonal
Benefits Quality, service, economy, convince, speed,
User status Non user, ex-user, potential user, first time user, regular
user.
User rate Light user, medium user, heavy user
3.2.2 Targeting Market
Unilever executives say many its former middle market shoppers are trading
down to lower-priced goods-widening the pools of have and have-not
consumers at the expense of the middle. That’s forced Unilever, which
estimates it has at least one product in 98% of families households, to
fundamentally change the way it develops and sells its goods.
We can say Unilever Company is focused to the middle class people as their
target market for increasing their sales and as well as market share.
Some popular products and their target market
Target Market: From working class to middle
class family.
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Target Market: The range of 18-26 ages
of Young and Stylish Men.
Target Market: For Young women and
beauty conscious ladies.
Target Market: For all kind of kitchen
works doing by Every Housewife.
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3.2.3 Evaluating Market Segmentation
The objective of Porter Five Forces Model is to beat the competition of market
by overcoming the challenges offered by rival companies. The five forces model
was analysis developed by Michael E. Porter in 1979. According to this model
the five forces that can affect the profits of company and can help to determine
the prevailing competition in market are:
Fig : Five forces that Shape Industry competition
Threat of New Entrants
Due to the vast range of Unilever products, it is very hard for a new company
to come and participate. However, the company holds considerable shares of
market and also has established reputations therefore, no new entrant can
compete with the company without heavy amount of capital and complete
marketing strategy based on comprehensive research. Though small
companies with specialization in particular products can offer competition to
Unilever in specific areas.
Rivalry
Among
Existing
Competito
rs
Threats of
New
Entrants
Bargaining
Power of
Suppliers
Threats of
substitute
products
or services
Bargaining
power of
Buyers
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Bargain Power of Supplier
The bargain power of supplier is coped with mutually dependent relationship
of company with its suppliers. Unilever request some good materials in order
to produce products of good quality and sell them at sensible price. Likewise,
suppliers in market are always in search of reputed clients that can help them
to generate good amount of revenue. The standard reputation maintained by
Unilever offers advantage to the company in this regard. Therefore, the
prevailing crisis of credit and fluctuation in interest rates do not affect the
terms of company with suppliers.
Bargain power of Consumers
As with the bargaining power that is alarmed by the costumers, Unilever can
deal with it easily. The wide range of household products produced by
company maintains the revenue of company even in time of recession. It is
due to the type of various products and the demands of products in everyday
life of consumers, that this company plays an effective role in reducing rate of
recession in economy of UK.
Threat of Substitute Products
Although Procter & Gamble has to deal with the presence of various
substitutes in market nowadays, however quality offered by P&G in its all
products ensure the sustainability of company in market all over the world.
In this regard company has adopted variety of collaboration strategies with
their customers in order to develop better understanding of consumer
demands and their response.
These factors allow the industry to know about their buyers that are they
happy with Unilever products or will choose some other brand over Unilever.
The quality in Unilever products is always maintained and it ensures
costumer trustworthiness and and value for their money
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Unilever is one of most successful company offering quality products in
present times. For more than half of a century this company is dominating
the world of household products in different parts of world. This success of
company is because of flexible attitude of company towards modifying user
requirements and shifting market conditions. The successful marketing and
business strategies of company ensures growth in revenue and constant
reputation in world of business.
It is a buyer oriented industry which is ready to know about the requirement
of their costumers sooner than any other. Unilever is now familiar with the
business war going in the market but it has also formed a business map to
compete. With Porter’s five forces model Unilever can successfully eradicate
its rival companies and beat the competition anywhere in world.
3.2.4 Designing the Product based on
Consumer’s Demand
Unilever follows differentiated target market segments as they are focused on
improving the lives of the world’s consumers. That is why they target several
market segments and design separate offers for each.
Differentiate and Positioning (Product & its Statement)
Lux Beauty Soap: “Bess, Ektu khani Lux”. Positioned by the special
attributes that it posses the power that make you beautiful than any other.
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Close up: “The Close up, The Better”. So it posses special attributes in this
product that this will not only refresh your teeth but also freshen up your
breath.
Surf Excel: “Stains are good when something good happen from stains”. This
statement sends us a message that Surf Excel is ready to remove any kind of
stains that will bring us a good thing.
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4. Conclusion
Today's market is characterized by highly competitive organizations which are
all for consumer's loyalty. Firms are faced with the challenge to maintain their
own competitive edge to be able to survive and be successful. Unilever was
built on the theory of touching consumer lives with brands that make life a
little better every day. They continue to connect with consumers by offering
affordable products and packaging specially designed to meet consumer
needs. UBL must maintain an innovative approach by introducing new
products and re-facing existing product lines to compete and satisfy
consumer demands, to allow them to remain profitable for the next one
hundred-seventy three years.