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Chapter One

Preface

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1.1.Origin of the Report: The purpose of this report is to compare the marketing mix used by one multinational company (Unilever) with one local company (Kohinoor) in Bangladesh and try to match our theoretical knowledge with real life situation. We tried to find out the strategies which are implementing recently in Bangladeshi market.

1.2. Overview of the Report: This report is all about collecting and cross checking the marketing mix used by a MNC and a local company in Bangladesh, on which we tried to discuss about the current situation.

1.3. Objectives: This report is a scope to us with which we can relate our theoretical knowledge with our current situation. While we were attending lectures on Marketing Management, we had an opportunity to match our theoretical knowledge with practical life knowledge which helps us to picture the real picture beyond book.

1.4.Scope: We were getting theoretical knowledge with real life examples in the classroom, which was really helpful, and along with this opportunity we are lucky to find out some good information on websites, and from retail shops.

1.5.Methodology: We tried to collect as much information as we can from retail shops, websites regarding Marketing mix used by two big companies of. For this we only used both secondary and primary data. Secondary data: We collected information from different websites, different reports and even from google image which are our secondary data. Primary data: To collect authentic information and to verify website data we physically visit retail shops in Dhaka and Tangail, which is our primary data. We even talked one of the employee of Kohinoor (Tibet snow), which is also our primary data.

1.6.Limitations:
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During doing this report we faced some difficulties. Among them most important is equal unavailability of information of these two companies. And other limitations are given below:

Short time span Inconsistent information Lack of experience

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Chapter Two

Company Overview

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2.1. Introduction

Marketing mix is a business tool and crucial when determining a product or brand's offering. Normally marketing mix indicates 4ps which are Product, Price, Place, Promotions. Its very important for any business to determine properly these 4ps. In this term paper we will discuss about these 4ps for Unilevers Fair & Lovely and Kohinoor Chemicals Tibet snow from Bangladeshi perspective.
In 1956 Kohinoor Chemical Company Limited (KCCL) was established in Bangladesh and marketing their Tibet snow in Bangladesh. Tibet snow is one of the leading brands of KCCL in Bangladesh since its production. It is one of the most demandable products in Bangladesh among all other local companies. They use Emolin* in their snow for which this snow is usable throughout the year, and it is a water based product.

Unilever is one of the largest and most used FMCG (Fast Moving Consumer Goods Company) in Bangladesh. It was established in 1964 with its soap factory in Chittagong, Bangladesh. Now it has 16 brands available in Bangladesh. Among these brands Fair & Lovely is one of the most popular and used brand in Bangladesh. Fair & Lovely was developed in 1975, but launched in 1978. This Fair & Lovely is an oil based cream.

Throughout this report we will discuss about the product, price, place, promotion of Fair & Lovely and Tibet snow, and finally we will try to give some recommendations.

*Emolin is a moisturizer which helps to create barrier on the surface of the skin to prevent water evaporating.

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2.2 SWOT Analysis


SWOT Analysis of Tibet snow Strengths

Strong brand image Pioneer in manufacturing fairness products. Competitive price and commission. Product recognition already exists.

Weaknesses

Packaging is not attractive. Less promotional activities Lack of incentives and rewards for retailers.

Opportunities

Expand market internationally Can Increase the demand through most visible advertising. Product diversity.

Threats

Strong competitors like-Unilever, Keya Less product diversity.

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SWOT Analysis of Fair & Lovely Snow Strengths Internationally recognized brand Good quality product Continuous innovation

Weaknesses Cost Controversial Ad

Opportunities

Threats Imported brands like lorie, oly Herbal fairness products

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Chapter Three

Marketing Mix

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Product
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3.1.1.1 Product Strategy of Fair& Lovely Unilever has a portfolio of about 400 brands globally. However many of these are local that can only be found in certain countries, e.g. Fair & Lovely. In Bangladesh, existing brands of Unilever are categorized in different sections. In the skin care section, Fair & Lovely is one of the renowned brands of Unilever Bangladesh.
3.1.1.2 Product Profile

Fair & Lovely is the first fairness cream in the world which was developed in 1975. It understands that different people have different fairness needs based on age or skin type and therefore offers expert fairness solutions relevant to different consumer needs. For the fairness solution, it has four types of products for the female and one type of product for the male under the brand name of Fair & Lovely.

Fair & Lovely

Fair & Lovely Multivitamin Cream

Fair & Lovely Ayurvedic Care Cream

Fair & Lovely Winter Fairness Cream

Fair & Lovely Anti-marks Cream

Fair & Lovely MAX Fairness Cream

Fair & Lovely Multivitamin Cream Fair & Lovely Multivitamin offers superior fairness benefit of clear fairness with the Tri-Fair Vitamin Complex. In the year of 2012, it has launched new Fair and Lovely Advanced Multi Vitamin Fairness Cream that equals the best professional beauty treatment such as antioxidant, laser, vitamin mask, face polish and face peel but without bleach or harmful chemicals that can damage the skin. Fair & Lovely Ayurvedic Care Cream

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Fair & Lovely Ayurvedic Fairness Cream brings in the fairness secrets of ancient Ayurveda that provides Nourishment, Protection and Purification. It is enriched with the magical Ayurvedic blend of Kumkumadi Oil a mixture of 16 Ayurvedic ingredients, which enhances complexion and cures discoloration of skin. Fair & Lovely Winter Fairness Cream Fair & Lovely Winter fairness is the fairness cream for the winter season. It contains Multivitamins and Active Moisturizers that offers fairness with benefits of cold cream. Fair & Lovely Anti-marks Cream Fair & Lovely Anti-marks which contains proven Ayurvedic ingredients including Neem, Chandan, Brahmi that creates a wonderful formulation for pimple spots, helps to give a fair, clear and even-toned skin.It is targeted towards young, teenage girls with a dominant fairness problem of pimple marks. Fair & Lovely MAX Fairness Cream Fair & Lovely MAX Fairness is the fairness cream for men. It contains Vitamin Complex and UV filters that work intensely on tough male skin and helps to provide visible fairness, spot reduction and Triple sunscreen UV protection. 3.1.1.3. Packaging & Labeling: Special Packaging is the part of product strategy. A beautiful packaging can attract more attention of the customers and also to maintain the quality a product needs good packaging. Fair and lovely packaging is very good and they use nice color in their packaging. The overall aesthetic components of the brand such as color, shape, text, graphics etc are set appropriately to achieve the marketing objectives for the brand. The vivid core color combination of white and pink makes the packaging of the product attractive which helps it to achieve the objective of identifying the brand by the people. Moreover, the pink color is feminine. And also, for the fairness cream of men, they use the dark color in the packaging. By following the BSTI

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ordinance, 2000, the packaging and labeling of the fair & lovely contains information such as Brand Name, Generic name, Composition / Ingredients, Name of the manufacturer, Full Full Mailing Address of the distributor,

Mailing Address of the original manufacturer,

Manufacturing date, Expiry date, Batch No. /Lot No., Manufacturing License No. / Marketing License No., Maximum Retail Price, Packaging quantity (Net Weight, Volume), Direction for use, Importance / Utility, Standard Mark with BSTI symbol and Storage condition / Cautions. 3.1.1.4 Levels of Products of Fair & Lovely:

Core Benefit: Beautification& skin care. Actual product: Different types of fairness cream products of Fair & Lovely brand and also the packaging. Expected product: Good quality, Fairness and Cleanliness etc. Augmented product: Unique features such as best professional beauty treatment components, Ayurvedic ingredients etc. Potential product :more fairness solutions with new ingredients.

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3.1.2.1 Product Strategy of Tibet Snow Kohinoor Chemical Co. (BD) Ltd is the pioneer in manufacturing cosmetics, toiletries, soap and perfume since 1956. Tibet Snow is one of the leading brands of KCCL which was launched as a skin care cream in 1956. 3.1.2.2 Product Profile: Tibet Snow is an ideal all weather skin care cream for delicate skin. Tibet Snow, a mild skin care cream, is made from BP grade ingredients added with moisturizer emollient & sufficient skin nutrients. It beautifies the skin through cleansing the skin naturally and leaves it soothing, soft and bright. Tibet Snow is a pure preventive against roughness, chapping and redness of the skin caused due to heat or cold. It is also an ideal skin cleanser, after shave cream and make-up base for beautification. 3.1.2.3 Packaging & Labeling: Tibet Snow has 3 SKU (Store keeping Unit) for different customer segments. Out of 3 SKU, the most popular SKU is Tibet Snow (Bottle)-50 gm. The others SKU are the Tibet Snow (Tube)50gm and Tiber Snow (Tube)-25 gm. It has the old-fashioned packaging designed by a gentleman called Noor Ahmed in 1953 and titled Face and Hill. The product has the green and blue packaging with the picture of a young woman on the glass bottle that relates to its target market. The product has the blurb on the packaging: an ideal after shaving and a perfect powder base. It has been observed that many of the important packaging information are properly described on the labels, carton and container.

3.1.2.4 Levels of Products of Tibet Snow: Core Benefit: Beautification & skin care. Actual product: Tibet snow and the packaging.

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Expected product: Good quality, Fairness and Cleanliness etc. Augmented product: Unique features such as best professional beauty treatment components, Ayurvedic ingredients etc. Potential product: more fairness solutions with new ingredients.

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Price

All of the four Ps are important for any business, but among them pricing has a different value to the company. Because among 4 Ps this is the only P which brings money back, others are
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expenses for a company. But they play very important rule to bring money back. So, it is very important for a company to fix proper price for their products or services. If not the product may be devalued, or be overvalued which will lead the company a serious loss or prevents them from having more profits. Fair & Lovely: As Fair & Lovely is a product of Unilever which has a high brand value, we think they use method for their product. Tibet Snow:

3.2.1 Product price


Unilever Brand Product Name Fair & Lovely Fair & Lovely anti marks Multivitamin Max fairness Size Price 95 50 90 50 95 55 450 250 165 1150 450

Unilever

White beauty Age miracle

Big Small Big Small Big Medium Small Big Small

Kohinoor
Kohinoor Tibet snow 50

Company deliver goods by their delivery van to the retailer at Dhaka city and retailer get (9-11) % commission beyond other facilities.

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Place

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3.3.1.1 Unilever Distribution Fair & Lovely follows the distribution channel of Unilever Bangladesh. Unilever has divided the whole of Bangladesh into five regions based on geography and sales volume. The regions are:

Central Metro Region (Dhaka Metro City) Central Outer Region (rest of Dhaka Division) Eastern Region (Chittagong and Sylhet division) Northern Region (Rajshahi Division) Southern Region (Khulna and Barisal Division)

Unilever has many distribution centers on regions with two or more areas headed by the area manager who reports to the regional manager. Each area with more than one territories headed by the territory manager. There are also sales supervisors, distributors sales representatives, cashiers and deliverymen. Unilever Bangladesh Limited reaches all sorts of markets on at least twice a week basis and tries to deliver products directly. They serve markets in urban areas, Sub-urban areas (small towns) and rural markets. The types of outlets that are covered directly are: Grocer stores. Wholesalers. General stores. Cosmetic stores. Self Service Stores

There are retailers selling Unilever products but not served directly especially small retailers in the deep rural areas like Chittagong hill tracks are served by the wholesalers. The wholesalers have special consideration and get importance from the company as the company does special trade promotional activities specially or the wholesalers. So the distribution channel looks like-

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Figure: Channel structure of UBL 3.3.1.2 Channel level: The above diagram shows that, they use 2 level distributions Channel for distributing their product. Here distributors wholesaler and retailers on this diagram. 3.3.1.3. Three types of channels: There are 700000 outlets which were grouped into 27 different channels. Among these 27 different channels 9 have been formalized for development. These channels consist of both urban and rural areas.

3.3.1.4 Priority channel: Priority channels are existing traditional channels running countrywide. This channel consists of urban and rural areas. The priority channel is categorized into six different store formats. They are: Urban General Store (UGS): Urban general store are stores located in urban residential or market areas. They are permanent in nature. They usually sell HPC items with other essential items. Urban Neighborhood Grocer (UNG): These are normally located in urban residential area. They are also permanent in structure, sells non branded food items with a little range of HPC product. They are more like the convenience store. Urban Wet Market Grocer (UWMG): It is located in wet market areas. They usually stand in clusters. These stores are structured in permanent way. There is no counter in the store; the shopkeeper usually operates it from the godi. This channel basically sells non branded commodity and grocery items and HPC items. Urban HPC tong: These are temporary structured stores which sells tea and bakery items. People normally come here to have tea and social gathering. It is found in both residential and commercial area. The structure of these channels is temporary. This channel basically sells non branded commodity and food items and few HPC items. Rural Neighborhood Grocer (RNG): This is located in rural residential areas, where people come for top-up purchase. The store basically made of tin or wooden structure. Normally one person handles the store but assistants can be seen sometimes. Rural Wet Market Grocer (RWMG): These stores are located in rural hat and wet market area. It is generally found in clusters. The Channel basically sells grocery, dairy and HPC items. Mid to lower income shoppers are the main customers of this channel.

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3.3.1.5 Emerging channel: The emerging channels are channels identified with unique characteristics which cannot be categorize in priority channel. They are different in terms of structure, shopper and product category. Three types of channels have been identified under this category. They are described below: Shopping complex: Shopping complex is located in urban areas, generally on the roadside of prominent roads. Outlets are permanent in structure, found in clusters, generally under one roof or similar demarcation. Basically sell all sorts of fashion and HPC items. There are 23400 stores under shopping complex running countrywide. Self Service Store: These stores are starting to emerge from 1999. It started with very few in numbers and now increased up to 62. These stores are permanent in structure, have significantly large space where all sorts of products are assorted under one roof. Both male and female from mid to higher income groups shop from here. These stores sell all kind of products. Rural cosmetic store: Rural cosmetic stores are located in rural market area, especially on the roadside. This emerging channel has some significance because of its increasing demands. The structure and decoration of the store are quite developed for the rural area. These stores dominated by female shoppers because it sells personal products. As said earlier channels are created to focus on different categories of products, different set of needs of buyers and to ease the marketing strategy taken by the company. Based on the channels Unilever decides what type of aid to provide to which category, they also take effective measures to ensure the SKU level in each channel. To increase the sales and to gain major market share Unilever has taken different measures to enhance the channels in so many different ways.

3.3.2.1 Tibet Snow Sets of interdependent organizations involved in the process of making a product or service available for consumptions are called Marketing Channels. It is very important for a company to determine the right channel for their product. If not retailer may refuse to cooperative properly, or consumer may not feel good at the time of purchasing the product or services. Now we will talk about the distribution channel of Tibet snowThe channel Kohinoor uses Tibet snow is exactly the same as other FMCG products they have. So we will discuss the distribution channel of Kohinoor to understand the distribution channel of Tibet snow. Kohinoor has five distribution channel called Dipo throughout the country, and these are Chittagong
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Barisal Khulna Bogura Dhaka

Apart from these they have so many distribution centers all over the country. At these divisions or subdivisions they have Sales team, Sales representatives, Territory Sales Manager, Assistant Territory Sales Managers, DSO, and RM who works for the distribution channel and owned and assigned by the company. So the distribution channel looks like-

Manufacturer Distributors Retailors

Consumers
They use their sales Representatives to collects orders from their retailors, and then give the ordering list to the distributors. These Sales representatives are the company people. And when the distributors get the order they deliver the product to the consumer through their delivery people, and these are not company owned employee. 3.3.2.2 Channel level: The above diagram shows that, they use 2 level distributions Channel for distributing their product. Here distributors and retailers are intermediaries on this diagram. 3.3.2.3 Push Strategy:

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As we all know push strategy means using the manufacturers sales force, trade promotion, or other means to induce intermediaries to carry, promote and sell the product, and after analyzing the strategy of Tibet I found they are using push strategy for their product. Because They are using own Sales people for taking order, They are giving incentives to the retailers and distributors Less mass media promotional activities.

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Promotion

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Promotion is a marketing act with the intention of encouraging the sale of a good or service to their target market. For example, product promotion performed by a typical business might take the form of advertising the product in question via print or Internet ads, direct mail or email letters, and personal sales calls, TV and radio ads, billboards, posters and flyers.

3.4.1 Promotion of Fair & lovely Communication mix: Marketers try to position products as appropriate for group activities. Fair and lovelies advertisement provides information to influence typically show members of a group using product. The message generally unstained, is that This people was dark, they use the product and become bright. So they try to communicate their targeted market by using example. Day by day they pick up the reality in the society and use as examples which help to sticks their target market. So to promote their product as well as sales fair and lovely uses all the media by which it can communicate the target market. 3.4.1.1 Advertising First if we think about Television media, fair and lovely regularly introduce new advertisements with new concepts. As their target market love to follow models so they use beautiful models and create a
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sense that if you use the product you will be like the model. This is so influential to their target market. Fair lovely has placed TV added quite frequently during the change of their product line. Now came to the newspaper, fair and lovely introduce their product and its positive effect there and communicate their consumer. They use the most noticeable place in newspaper which highly attracts young generation and beauty conscious people. But they dont do it frequently. Fair and lovely is giving their advertisement effectively to some magazines .In magazines the usual place of fair and lovely in the front page and news Paper it shown in the middle. There are also some billboards that are shown in the different areas of Dhaka city and some high ways to reminder the consumer about the product and its effective because, big in size, colorful and people cant avoid it.

3.4.1.2 Sales promotion Fair and lovely introduce a meter for measuring the fairness after using their product. They also provide a condition that it needs to use twice a day for observing the effect. So consumer need to use the product more which helps to increase in sales.

Other tactics like 20% extra!! More value for same cost has worked wonderfully well. On the other hand Fair and lovely do some sponsorship, especially where they have their targeted market. By the sponsorship fair and lovely provide knowledge about product which helps to increase their sales.

3.4.1.3 Product Promotion

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Continuous innovation helps to attract the market and enlarge the market. So fair and lovely continuously introduce new product which makes them the market leader in Bangladesh. There promotional product like: Fair & Lovely Anti Marks for Blemish-less Fair Skin Fair & Lovely Ayurvedic Balance Fair & Lovely Multi Vitamin for Clear Fair Skin Fair & Lovely Max Fairness for Men They also make some change in packaging and labeling for the promoting product

3.4.1.4 Brand Promotion Fair and lovely promote their brand by changing their product quality, packaging and logo which

creates more attraction towards its targeted markets.

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3.4.2 Promotion of Tibet snow

Communication mix Kohinoor Chemical targeted rural people as well as urban people. So the marketers of Tibet Snow positioned it as an affordable cream that keeps skin fresh and young for a long time. They make a commitment that by using Tibet snow consumer is able to keeps their skin fresh and young in every season over the year. 3.4.2.1 Advertising Kohinoor is giving less emphasis on Tibet Snow in terms of television media for promoting their products, because they are now concentrating more on their other products likeam pm toothpaste, Sandalina soap. But still they have limited number of advertisement telecasted in a limited time. Beside this they are using Fm radio as a media to promote Tibet snow. They also provide some advertisement in the newspaper and provide some posters in the bill boards, but till in a very limited number. They also use bill board for advertisement. 3.4.2.2 Public Relation Tibet Snow has good relationship with their agents and partners which also helped to develop their

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public relation. In a word they have positive public relationship. 3.4.2.3 Personal sales Tibet snow uses distribution channel for distributing their products, so right now they dont have any personal selling. 3.4.2.4 Sales promotion Tibet snow like B2B more than the B2C. So to promote the sales Tibet snow makes an offering for retailers. The offer is like, if a retailer buy one dozen or 12 pcs then they will provide one pc Tibet snow free. By this offer they raise the interest of distributers and sales more. They also have offers for their distributors. They usually give 3% sales commission, but there are certain cases where they gave 1% extra commission. For example if the distributor need more transportation cost due to the remote area, then they will get this 1% extra commission.

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Chapter Four

Conclusion

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Conclusion

In terms of marketing mix Fair & Lovely is doing quiet good but Tibet is not up to the mark.

After analyzing the current situation of these two brand in Bangladesh it is clear that Fair &

Lovely is doing all possible innovations, diversifications and brand building activities, where

Tibet is not bringing any kind of product diversifications, innovations even they are not updating

their packaging and proper communications. But even then Tibet has good sales, and it has good

demand in the market since the beginning. On the other hand, after doing all sorts of marketing

mix properly Fair & Lovely also have good sales and they are the market leader in Bangladeshi

fairness market. So to increase their market share Tibet has to increase more communications, try

to do more brand building activities, where as Fair & Lovely just have continue this scale of

activities very carefully and has to keep very sharp eyes into the PR activities.

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References: Websites o http://www.bangladeshdir.com/webs/catalog/unilever_bangladesh.html o http://www.unilever.com.bd/aboutus/introductiontounileverbangladesh/ourhistory / o http://www.slideshare.net/spvn/fairamplovelyfair-amp-lovely-fairness-cream-acrisis-for-unilever-bangladesh o http://en.wikipedia.org/wiki/Marketing_mix o Hossain, Mohammad Jakir, Executive, Kohinoor Chemical Company Limited

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