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Analysis of the Bangladesh section of Unilever

Unilever is a multinational consumer product making large operating in over hundred countries all over the world. Unilever Bangladesh is the Bangladesh chapter of Unilever, where in fact the company retains 60. 75% share whereas the federal government of Peoples Republic of Bangladesh supports 39. 25% show.

Unilever's one of the very most popular brand is LUX. They segments LUX. 's market relating to geographical locations. It further differentiates these sections into Socio Economic Cluster (SEC) which takes into account the criteria of education and vocation which ultimately actions the financial capability of consumers. The cluster is divided into five parts beginning with A to E. Unilever focuses on the metropolitan and sub urban upper middle class and middle class segment of the populace, who comes under A to C of SEC.

Tactical marketing tools, 4P's, are extensively used by the organization to advertise LUX. Though LUX is stated in Bangladesh, Unilever Bangladesh preserves the same standard all around the globe. The product is available in six different fragrances under three different sizes. Because the demand for beauty cleaning soap market is to a great level oligopolistic, variations in cost lead to price conflict which can eventually break down the company's market share. Thus Unilever cannot provide a better price than its competition. But the price is affordable by almost all of individuals. Unilever Bangladesh has outsourced its syndication channels to third party distributors which allow them to send out LUX in substantial bulks amounting to around ten million portions. It undertakes the most significant promotional activities in the wonder cleaning soap industry.

The beauty cleaning soap industry has a few major producers which Unilever keeps market share of slightly less than 50%. Other contending brands like Tibbet, Aromatic and Keya have began to have a strong consumer platform, but LUX. 's product features distribution and promotional activities have created high brand devotion that it continues to be the market head.

Unilever, using its heavy promotional activities, has been able to penetrate the market. However the other producers on the market are posing a menace towards Unilever's market show as they have moved towards rural people of the populace. Therefore, Unilever Bangladesh should undertake further steps such as moving to the rural and/or poorer portion; attract children (by making a particular product for kids) and other progressive promotional activities to preserve its command in the industry.

Chapter 1

Introduction

1. 1 Unilever instantly:

Unilever is one of the world's most significant and leading multinational companies; Unilever commenced their business activities on a more substantial scale by setting up their first manufacturing plant in Netherlands, in the year of 1872. Functioning in Bangladesh for over the last four decades the company is trying to significantly contribute towards the augmentation of the standard of living by taking top notch high quality products at the entranceway step of the customers. The utilization of Unilever products by over 90% of the individuals in Bangladesh stands a testimony to their successful operation. . Their selection of products show that they produce household care, fabric cleaning, skin detoxification, skin care, dental care, hair care, personal grooming, and tea established beverage products under worldwide famous brands Steering wheel, LUX, Lifebuoy, Rational & Lovely, Pond's, UP CLOSE, Sunsilk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel, and Rexona.

Objective of the report:

This report is an outcome of any evaluation of marketing strategies employed by Unilever Bangladesh Ltd. The primary reason for the record is to find what strategies the business uses to market its celebrated beauty soap, LUX, in Bangladesh; the positive and negative aspects of those strategies. The statement further analyzes the positioning of Unilever Bangladesh Ltd. in the toiletry industry compared to its competitors. The report discusses the process of using market segmentation, concentrate on marketing, the merchandise, costs, promotional and circulation strategies and a competitive research.

Methodology of this report:

For availability and option of information we've chosen to focus on the strategies of Unilever Bangladesh Ltd. As the company operates in the market with a huge number of products in several industries, we've decided to give attention to one with their worldwide successful brands, LUX. A lot of the information used in this statement is from most important sources. The primary source of information was the concentrate group discussion. Furthermore information was also gathered from websites.

Chapter 2

Product Category, Market Segmentation, Concentrate on Marketing and Positioning

This chapter details the category of the decided on product. The section is arranged into four portions. Section 1 expresses under which category the merchandise comes. Section 2 details how Unilever Bangladesh Ltd. differentiates the population and categorizes them into different sections. Section 3 analyzes which segment the company focuses on and why they focus on that specific section. Finally section 4 describes the process whereby the company attempts to capture a location in the customers brain i. e. the merchandise setting method.

2. 1 Product Category:

LUX comes under the group of toiletry product as a beauty cleaning soap.

2. 2 Market Segmentation:

The company boasts that LUX is the best selling beauty cleaning soap in Bangladesh. Additionally some survey reviews also expose the same consequence.

Though LUX is the highest selling beauty soap in Bangladesh, it does not go for traditional mass marketing. Furthermore as a beauty soap LUX will not even portion its market according to gender.

Figure 2. 1 (P-9) shows that Unilever Bangladesh Ltd. sections their market matching to geographical areas. The population of the united states is segmented into three parts which can be urban, sub metropolitan and rural area consumers.

The company further differentiate the physical segments matching to Socio Economic Cluster (SEC) i. e. education and Income. The Stand 2. 1 (P-9) overleaf shows the Socio Economic Clusters the business uses.

The SEC divides the populace in five segments starting from A to E, in which a categorizes the highly educated and high income earners holders, and sequentially in descending order E categorizes the contrary.

2. 3 MARKETPLACE:

Figure 2. 1 (P-9) demonstrates urban and sub urban middle class, and rural the indegent are the largest part of Bangladesh people. A research carried out by Unilever Bangladesh shows that urban rich people are more likely to buy brought in and expensive products. In addition rural poor people tend to buy cheap products even without evaluating its quality. However metropolitan and sub urban upper midsection and middle class people have a tendency to buy affordable and quality products.

LUX is not really a highly expensive but an affordable product. That is why the company focuses on urban and sub urban upper midsection and middle income folks who are the next highest society of section of the united states. Through the segmentation of customer according to SEC they aim for category A, B and C, because they're assumed to be financially well-off and can afford to buy LUX.

2. 4 Product Setting:

Unilever Bangladesh Ltd obtained a good position in the clients' mind through better product characteristics, price and quality, offering the merchandise in a different way than the opponents do. The business offers improved upon quality of products in the industry at a realistic price with high branding, which eventually helps to position the merchandise in the potential buyers' mind as the best quality beauty soap.

The market talk about of the company in the beauty cleaning soap industry is around 43%. Since in the wonder cleaning soap industry all products are of same price Unilever cannot provide its consumers with better price but it is at a great position in guide with its presentation, fragrances and product building.

A setting map of the company is shown Shape 2. 2 (P-10) to describe LUX's position in the consumers mind on two sizes, price and quality.

Figure 2. 2 (P-10) has been attracted with information gathered by performing a consumer review. It says that though in comparison to its rivals the charges of LUX is same but consumers rate it as the product gives them the highest quality. This positioning created a strong customer loyalty for LUX, for which it the marketplace leader in the industry.

Chapter 3

Using the Tactical Marketing Tools

This chapter identifies the way Unilever Bangladesh Ltd. use the tactical marketing tools for marketing LUX in Bangladesh. The chapter comprises of four areas. Section 3. 1 discusses the product characteristics of LUX. Section 3. 2 visualizes the price tag on LUX relating to different size. Section 3. 3 conceptualizes the syndication channel of Unilever Bangladesh Ltd. This section includes a table that presents the positioning of the company's warehouses all over the country. Finally section 3. 4 discusses the promotional activities that the company undertakes for LUX.

3. 1 Product:

LUX is an internationally renowned beauty soap brand of Unilever. Though created in Bangladesh for the local market by Unilever Bangladesh Ltd, as an international brand, it sustains a global quality for the product. Formula distributed by Research and Development departments in foreign countries, LUX is produced in Bangladesh from brought in raw materials like sodium soap, glycerol and different extracts regarding to flavors, via Unilever plants situated overseas.

LUX is offered in Bangladesh in six different flavours which can be: LUX Energizing Honey, LUX Golden Shine, LUX Mother nature Pure, LUX Orchid Touch, LUX Almond Delight and LUX Aqua Sparkle. Taking into account the capability of its customers, the company manufactures all flavours of LUX in three different sizes, 40gm, 80gm and 120gm.

3. 2 Price:

Though Unilever Bangladesh gives its LUX customers a whole lot in terms of the product itself, it cannot provide an improved pricing. That is due for some constraints in the wonder cleaning soap industry. Beauty soap is something with a susceptible demand in Bangladesh. A big change in cost has a high threat of creating price warfare among the rivals that will eventually result in a loss of earnings. Its prices are almost add up to its competitor. Table 3. 1 (p-10) compares Lux's price with its major rival. Company holds out research on rivals' price and brand loyalty when it feels extreme necessaity of chaging price. The brand loyalty test can be an exploratory research which is known as Brand Health Check-Up (BHCU).

3. 3 Place:

Unilever Bangladesh Ltd. has a huge distribution route for LUX all over the country as its sales reach more than 10 million bits a year. The company has six huge warehouses, one in each division of Bangladesh, where the product goes after they are produced at Kalurghat manufacturer. Stand 3. 2 (P-10) shows the location of its six warehouses in Bangladesh.

The company does not use its fleet of transport for distributing its product. However, they have outsourced its distribution process to various third party distributors, exclusively dedicated to Unilever Bangladesh Ltd. These marketers then provide you with the product around Bangladesh to a huge number of retailers. Even though LUX targets the metropolitan and sub urban middle and top middle class people they are really distributing their products around Bangladesh due to a recent increase in demand of its product to all or any segments of the populace.

3. 4 Advertising:

Unilever Bangladesh undertakes huge promotional activities to promote LUX which includes topped the wonder cleaning soap industry of Bangladesh. It spends almost 20% to 25% of its World wide web Arises from Sales (NPC) of LUX for promotional activities for LUX 1

It's certain annual promotional promotions like LUX Route i Superstar and LUX Channel i Annual Theatre Accolades has made the product a part of the glamour world. Since the 1930s, over 400 of the world's most stunning and sensuous women have been happily associated with Lux adverts. They don't only promote LUX in Bangladesh for the wonder mindful females, it also helps bring about the brand for guys and the company demonstrated that, by including world famous male celebrity Shahrukh Khan for their advertising campaign.

Unilever Bangladesh Ltd spends plenty of money for promoting LUX through Television commercials, newspaper advertising and billboards. In addition it also undertakes small promotional promotions at different schools, colleges, colleges and recreational parks with winners of its Zonal Beauty Contests. Right up until now promotional activities of LUX has always been successful which includes made it a household common name and helped it reach almost one billion taka sale value in the year 2004 2.

Chapter 4

Analyzing the Market for LUX

For better understanding of Unilever Bangladesh, its online marketing strategy, product quality, placement and location, we present here a comparative research of its rivals. This part of the report illustrates the market talk about of different companies in the beauty soap industry.

4. 1 Market Share:

The beauty cleaning soap industry in Bangladesh involves only seven major providers. Unilever Bangladesh Ltd is functioning on the market with its celebrated brand LUX. Out of the large companies Unilever Bangladesh Ltd is the market leader with a show of around 43%.

Figure 4. 1 (P-11) shows the market share of all companies in the sector. Unilever Bangladesh Ltd is leading the marketplace. The other competition are very competitive among themselves nevertheless they cannot put a intense competition with Unilever Bangladesh Ltd, as they may have market share significantly less than Unilever Bangladesh Ltd.

Table 4. 1 (P-11) overleaf shows an in depth description of the major rivals in the market, their operating brand, estimated annual sales earnings and market talk about.

Other companies on the market are not as large as Unilever Bangladesh Ltd but they are posing risk to the company by a tendency of a continuous upsurge in their market talk about. Kohinoor Chemicals which is functioning with the brand Tibet can be an extremely famous brand to the rural portion of the population and possess a substantial share in that segment which is the major human population group in Bangladesh. In addition Keya Beauty products Ltd operating with the brand Keya and Marks & Allys Ltd operating with the brand name Aromatic are also uprising brands to both rural and sub metropolitan segment of the population.

Moreover a recent takeover of Aromatic by multinational consumer product giant MARICO who works with famous brands in other sectors like Parachute Coconut Essential oil is posing to be always a hazard to Unilever Bangladesh's market share.

Chapter 5

Conclusion

The beauty soap industry of Bangladesh involves a few manufacturers in the industry. The demand for this product is very much vulnerable in terms of charges. Unilever Bangladesh offers LUX. at a price which is affordable to the majority of folks in the country. Beauty soap can be an uprising product in Bangladesh as a larger portion of the populace, both male and female, are now getting more beauty conscious. To be a multinational company Unilever Bangladesh with heavy promotional activities, has been able to penetrate the marketplace.

With six different fragrances, three different sizes, international standard and high quality design, as a product, LUX has been highly successful over the years. Its circulation process is highly productive. Its promotional activities, like the wonder contest is a milestone in bringing in a wide array of customers. Overall using its marketing activities LUX is a successful brand.

The only place where rival companies are progressing is presenting customers redemption offers. Research unveiled that Bangladeshi customers are highly attracted to this type of offers. These offers are not sustainable in the long run but still it takes away a considerable part of LUX's sales in the short run.

Chapter 6

Recommendation

In this chapter the team indicate some recommendations to Unilever Bangladesh Ltd. to adopt more successful operation in Bangladesh. Since an enormous portion of the rural poor people is demanding LUX in recent days and nights, Unilever Bangladesh Ltd should increase their target market also towards rural people. They should also carry out different promotional activities in rural fairs and socially sensible promotional activities to entice rural consumers and interpersonal recognition. Because Lux has different type of skin cleaning soap so now if they provide different types of beauty soaps for male and feminine soapunder the same brand name i. e. LUX it might increase their sales. Last but not least, as Bangladeshi culture children have a huge say in shopping so they should also promote the product to children like their another brand "Dove". They are the recommendations suggested by teem users to Unilever Bangladesh Ltd. to look at for a far more successful operation in Bangladesh with large market share.

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