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Letter of Tran&%ittal
Shamim E. Haque Senior Lecturer, BRAC Business School BRAC University; 66 Moha hali, !ha a "#"#
!ear Sir, $ith this %e are su&mittin' the re(ort )rom Section **" %hich %as a course requirement )or the Business Communication course +BUS #*", that %e have ta en this semester +S(rin' #*"-,. .he title o) our re(ort is /Analy0in' the mar et o) LU12. $e %or e3 on the analysis o) the mar et )or (o(ular &ran3 o) Unilever 4 LU1 in this re(ort.
Sincerely yours,
$ali3 Alam 6 5!7"#"*8*8" Ahna) ;han 6 5!7"#"*8"-" ;a0i Silvia <erin .onu 6 5!7 "#"*8"== Sye3a Se)at Ashra) 6 5!7 "*#*8""8
:ontent&
!age E1ECU.5>E SUMMAR? 59.R@!UC.5@9 AR@!UC. SUMMER?, MAR;E. SEBME9.A.5@9, .ARBE. MAR;E.59B A9! A@S5.5@959B Aro3uct Cate'ory Mar et Se'mentation .ar'et Mar etin' Aositionin' US59B .HE .AC.5CAL MAR;E. .@@LS Aro3uct Arice Alace Aromotion A9AL?D59B .HE MAR;E. E@R LU1 Mar et Share S$@. A9AL?S5S E@R LU1 C@9CLUS5@9S A9! REC@MME9!A.5@9S B5BL5@BRAAH? 59!E1 LI$T O ILLU$TRATION$ ig're& ". Mar et Se'ments +#.", Aa'e # "68 # #6-68 86C : : 6 66C C6= C6= F "* " "6# iv "
#. Aositionin' Ma( +#.#, -. Mar et Share +8.", Ta/le ". Socio6Economic cluster se'mentation +#.", #. Location o) Unilever Ban'la3esh Lt3Gs 3ivisional %arehouses +-.#, -. Estimate3 Annual Sales Revenue an3 Mar et Share +8.",
8 C
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iii
EXE:UTI;E $UMMARY
Unilever is a multinational consumer (ro3uct manu)acturin' 'iant o(eratin' in over hun3re3 countries all aroun3 the 'lo&e. Unilever Ban'la3esh is the Ban'la3esh cha(ter o) Unilever, %here the com(any hol3s 6*.C:H share %hereas the Bovernment o) Aeo(les Re(u&lic o) Ban'la3esh hol3s -F.#:H share. UnileverGs one o) the most (o(ular &ran3 is LU1. .hey se'ments LU1.Gs mar et accor3in' to 'eo'ra(hical locations. 5t )urther 3i))erentiates these se'ments into Socio Economic Cluster +SEC, %hich ta es into account the criteria o) e3ucation an3 (ro)ession %hich ultimately measures the )inancial a&ility o) consumers. .he cluster is 3ivi3e3 into )ive (arts startin' )rom A to E. Unilever tar'ets the ur&an an3 su& ur&an u((er mi33le class an3 mi33le class se'ment o) the (o(ulation, %ho )alls un3er A to C o) SEC. .actical mar etin' tools, 8AGs, are eItensively use3 &y the com(any to mar et LU1. .hou'h LU1 is (ro3uce3 in Ban'la3esh, Unilever Ban'la3esh maintains the same stan3ar3 all aroun3 the 'lo&e. .he (ro3uct is availa&le in siI 3i))erent )ra'rances un3er three 3i))erent si0es. Since the 3eman3 )or &eauty soa( mar et is to a 'reat eItent oli'o(olistic, variations in (rice lea3 to (rice %ar %hich can eventually &rea 3o%n the com(anyGs mar et share. .hus Unilever cannot (rovi3e a &etter (rice than its com(etitors. But the (rice is a))or3a&le &y most o) the (eo(le. Unilever Ban'la3esh has outsource3 its 3istri&ution channels to thir3 (arty 3istri&utors %hich allo% them to 3istri&ute LU1 in massive &ul s amountin' to aroun3 ten million (ieces. 5t un3erta es the lar'est (romotional activities in the &eauty soa( in3ustry.
.he &eauty soa( in3ustry has a )e% maJor (ro3ucers o) %hich Unilever hol3s mar et share o) sli'htly less than :*H. @ther com(etin' &ran3s li e .i&et, Aromatic an3 ;eya have starte3 to have a stron' consumer &ase, &ut LU1.Gs (ro3uct )eatures 3istri&ution an3 (romotional activities have create3 hi'h &ran3 loyalty )or %hich it is still the mar et lea3er. Unilever, %ith the ai3 o) its heavy (romotional activities, has &een a&le to (enetrate the mar et. But the other (ro3ucers in the in3ustry are (osin' a threat to%ar3s UnileverGs mar et share as they have move3 to%ar3s the rural masses o) the (o(ulation. .here)ore, Unilever Ban'la3esh shoul3 un3erta e )urther ste(s such as movin' to%ar3s the rural an3Kor (oorer se'ment; attract chil3ren +&y ma in' a s(ecial (ro3uct )or (romotional activities to retain its comman3 in the in3ustry. i7 i3s, an3 other innovative
, !ro#'*t :ategory<
LU1 )alls un3er the cate'ory o) toiletry (ro3uct as a &eauty soa(.
Market $eg%entation<
.he com(any claims that LU1 is the hi'hest sellin' &eauty soa( in Ban'la3esh. Moreover some survey re(orts also reveal the same result. .hou'h LU1 is the hi'hest sellin' &eauty soa( in Ban'la3esh, it 3oes not 'o )or tra3itional mass mar etin'. Moreover as a &eauty soa( LU1 3oes not even se'ment its mar et accor3in' to 'en3er.
ig're ,=. sho% that Unilever Ban'la3esh Lt3. se'ments their mar et accor3in' to 'eo'ra(hical areas. .he (o(ulation o) the country is se'mente3 into three (arts %hich are ur&an, su& ur&an an3 rural area consumers.
6 .he com(any )urther 3i))erentiate the 'eo'ra(hical se'ments accor3in' to Socio Economic Cluster +SEC, i.e. e3ucation an3 5ncome. .he Ta/le ,=. overlea) sho%s the Socio Economic Clusters the com(any uses. .he SEC 3ivi3es the (o(ulation in )ive se'ments startin' )rom A to E, %here A cate'ori0es the hi'hly e3ucate3 an3 hi'h income earners hol3ers, an3 sequentially in 3escen3in' or3er E cate'ori0es the o((osite.
Target Market<
ig're ,=. sho%s that ur&an an3 su& ur&an mi33le class, an3 rural (oor (eo(le are the lar'est (art o) Ban'la3esh (o(ulation. A research carrie3 out &y Unilever Ban'la3esh reveals that ur&an rich (eo(le are more li ely to &uy im(orte3 an3 eI(ensive (ro3ucts. Moreover rural (oor (eo(le ten3 to &uy chea( (ro3ucts even %ithout evaluatin' its quality. Ho%ever ur&an an3 su& ur&an u((er mi33le an3 mi33le class (eo(le ten3 to &uy a))or3a&le an3 quality (ro3ucts. LU1 is not a hi'hly eI(ensive &ut an a))or3a&le (ro3uct. .hat is %hy the com(any tar'ets ur&an an3 su& ur&an u((er mi33le an3 mi33le class (eo(le %ho are the secon3 hi'hest (o(ulation o) se'ment o) the country. Erom the se'mentation o) customer accor3in' to SEC they tar'et cate'ory A, B an3 C, &ecause they are assume3 to &e )inancially %ell6o)) an3 can a))or3 to &uy LU1.
!ro#'*t !o&itioning<
Unilever Ban'la3esh Lt3 o&taine3 a 'oo3 (osition in the &uyersG min3 throu'h &etter (ro3uct attri&utes, (rice an3 quality, o))erin' the (ro3uct in a 3i))erent %ay than the com(etitors 3o. .he com(any o))ers im(rove3 quality o) (ro3ucts in the in3ustry at an a))or3a&le (rice %ith hi'h &ran3in', %hich ultimately hel(s to (osition the (ro3uct in the &uyersG min3 as the &est quality &eauty soa(. .he mar et share o) the com(any in the &eauty soa( in3ustry is some%here aroun3 8-H.Since in the &eauty soa( in3ustry all (ro3ucts are o) same (rice Unilever cannot (rovi3e its consumers %ith &etter (rice &ut it is in a 'reat (osition in re)erence %ith its (ac a'in', )ra'rances an3 (ro3uct 3esi'nin'.
A (ositionin' ma( o) the com(any is sho%n ig're ,=, to 3escri&e LU1Gs (osition in the consumers min3 on t%o 3imensions, (rice an3 quality. ig're ,=, has &een 3ra%n %ith in)ormation 'athere3 &y con3uctin' a consumer survey. 5t states that thou'h in com(arison to its com(etitors the (ricin' o) LU1 is same &ut consumers
rate it as the (ro3uct %hich 'ives them the hi'hest quality. .his (ositionin' create3 a stron' customer loyalty )or LU1, )or %hich it the mar et lea3er in the in3ustry.
4 !ro#'*t<
LU1 is an internationally reno%ne3 &eauty soa( &ran3 o) Unilever. .hou'h manu)acture3 in Ban'la3esh )or the local mar et &y Unilever Ban'la3esh Lt3, as an international &ran3, it maintains an international quality )or the (ro3uct. Eormula 'iven &y Research an3 !evelo(ment 3e(artments in )orei'n countries, LU1 is (ro3uce3 in Ban'la3esh )rom im(orte3 ra% materials li e so3ium soa(, 'lycerol an3 3i))erent eItracts accor3in' to )lavors, comin' )rom Unilever (lants situate3 a&roa3. LU1 is o))ere3 in Ban'la3esh in siI 3i))erent )lavors %hich areM LU1 Ener'i0in' Honey, LU1 Bol3en Blo%, LU1 9ature Aure, LU1 @rchi3 .ouch, LU1 Almon3 !eli'ht an3 LU1 Aqua S(ar le. .a in' into account the convenience o) its customers, the com(any manu)actures all )lavors o) LU1 in three 3i))erent si0es, 8*'m, =*'m an3 "#*'m.
!ri*e<
.hou'h Unilever Ban'la3esh 'ives its LU1 customers a lot in terms o) the (ro3uct itsel), it cannot (rovi3e a &etter (ricin'. .his is 3ue to some constraints in the &eauty soa( in3ustry. Beauty soa( is a (ro3uct %ith a vulnera&le 3eman3 in Ban'la3esh. A chan'e in (rice has a hi'h ris o) creatin' (rice %ar amon' the rivals %hich %ill eventually cause a loss o) (ro)it. 5ts (rices are almost equal to its com(etitor. Ta/le 6=. com(ares LU1Gs (rice %ith its maJor
com(etitor. Com(any carries out research on com(etitorsG (rice an3 &ran3 loyalty %hen it )eels eItreme necessity o) chan'in' (rice. .he &ran3 loyalty test is an eI(loratory research %hich is no%n as Bran3 Health Chec 6U( +BHCU,.
> !la*e<
Unilever Ban'la3esh Lt3. has a hu'e 3istri&ution channel )or LU1 all over the country as its sales reach more than "* million (ieces a year. .he com(any has siI hu'e %arehouses, one in each 3ivision o) Ban'la3esh, %here the (ro3uct 'oes a)ter they are manu)acture3 at ;alur'hat )actory.
Ta/le 6=, sho%s the location o) its siI %arehouses in Ban'la3esh. .he com(any 3oes not use its o%n )leet o) trans(ort )or 3istri&utin' its (ro3uct. Ho%ever, it has outsource3 its 3istri&ution (rocess to various thir3 (arty 3istri&utors, eIclusively 3e3icate3 to Unilever
Ban'la3esh Lt3. .hese 3istri&utors then su((ly the (ro3uct all over Ban'la3esh to a hu'e num&er o) retailers. Even thou'h LU1 tar'ets the ur&an an3 su& ur&an mi33le an3 u((er mi33le class (eo(le they are 3istri&utin' their (ro3ucts all over Ban'la3esh &ecause o) a recent increase in 3eman3 o) its (ro3uct to all se'ments o) the (o(ulation.
!ro%otion<
Unilever Ban'la3esh un3erta es hu'e (romotional activities to (romote LU1 %hich has to((e3 the &eauty soa( in3ustry o) Ban'la3esh. 5t s(en3s almost #*H to #:H o) its 9et Arocee3s )rom Sales +9AC, o) LU1 )or (romotional activities )or LU1. 5tGs certain annual (romotional cam(ai'ns li e LU1 Channel I Su(erstar an3 LU1 Channel I Annual Cinema A%ar3s has ma3e the (ro3uct a (art o) the 'lamour %orl3. Since the "F-*s, over 8** o) the %orl3Gs most stunnin' an3 sensuous %omen have &een (rou3ly associate3 %ith LuI a3vertisements. .hey 3o not only (romote LU1 in Ban'la3esh )or the &eauty conscious )emales, it also (romotes the &ran3 )or males an3 the com(any (rove3 that, &y inclu3in' %orl3 )amous male cele&rity Shahru h ;han )or their a3vertisin' cam(ai'n.
? Unilever Ban'la3esh Lt3 s(en3s a hu'e amount o) money )or (romotin' LU1 throu'h .> commercials, ne%s(a(er a3vertisements an3 &ill&oar3s. Moreover it also un3erta es small (romotional cam(ai'ns at 3i))erent schools, colle'es, universities an3 recreational (ar s %ith %inners o) its Donal Beauty Contests.
Market $hare<
.he &eauty soa( in3ustry in Ban'la3esh consists o) only seven maJor (ro3ucers. Unilever Ban'la3esh Lt3 is o(eratin' in the in3ustry %ith its %orl3 )amous &ran3 LU1. @ut o) these 'iant com(anies Unilever Ban'la3esh Lt3 is the mar et lea3er %ith a share o) aroun3 8-H.
9 ig're 3=. sho%s the mar et share o) all the com(anies in the sector. Unilever Ban'la3esh Lt3 is lea3in' the mar et. .he other com(etitors are very com(etitive amon' themselves &ut they cannot (ut a intense com(etition %ith Unilever Ban'la3esh Lt3, as they have mar et share much less than Unilever Ban'la3esh Lt3.
Ta/le 3=. overlea) sho%s a 3etaile3 3escri(tion o) the maJor com(etitors in the mar et, their o(eratin' &ran3, estimate3 annual sales revenue an3 mar et share. @ther com(anies in the in3ustry are not as &i' as Unilever Ban'la3esh Lt3 &ut they are (osin' threat to the com(any &y a ten3ency o) a 'ra3ual increase in their mar et share. ;ohinoor Chemicals %hich is o(eratin' %ith the &ran3 name .i&et is an eItremely )amous &ran3 to the rural se'ment o) the (o(ulation an3 (ossess a si'ni)icant share in that se'ment %hich is the lar'est (o(ulation 'rou( in Ban'la3esh. Moreover ;eya Cosmetics Lt3 o(eratin' %ith the &ran3 name ;eya an3 Mar s L Allys Lt3 o(eratin' %ith the &ran3 name Aromatic are also u(risin' &ran3s to &oth the rural an3 su& ur&an se'ment o) the (o(ulation. Moreover a recent ta eover o) Aromatic &y multinational consumer (ro3uct 'iant MAR5C@ %ho o(erates %ith )amous &ran3s in other in3ustries li e Aarachute Coconut @il is (osin' to &e a threat to Unilever Ban'la3eshGs mar et share.
Strength High brand value, highest popularity consumers Opportunities Huge resources, popularity & strong distribution channels
among cost efficiency Threats Other competitors who also aiming to provide similar products
$hile stu3yin' an3 collectin' in)ormationGs a&out Unilever Ban'la3eshGs LU1 &eauty soa( %e )oun3 that there are s(eci)ic reasons %e can 3escri&e &ehin3 this S$@. analysis. Eirstly, it is clear that LU1 have a nation%i3e &ran3 value as it is su((lyin' 3aily toiletry (ro3ucts to us )or last )our 3eca3es. Besi3es, &ecause o) its lon' time (romotion an3 a3vertisin' F out o) "* (eo(le o) our country is %ell a%are o) LU1 soa(s. .hese )acts truly stren'then the (osition o) LU1 in the mar et (lace. Secon3ly, thou'h LU1 has a stron' 3istri&ution channel &ut they are missin' the rural consumers %here other soa( &ran3s li e ;eya an3 .i&et success)ully mar etin' their (ro3ucts to rural consumers o) our country. A'ain, %hen LU1 is %illin' to (rovi3e international quality it seems im(ossi&le to al%ays ee( the cost o) (ro3uction lo%er than other com(etitors. .hese are the visi&le %ea nesses o) LuI. .hir3ly, as )or o((ortunities Unilever Ban'la3esh 3o have hu'e amount o) resources an3 stron' 3istri&ution net%or in' that can &e use3 as o((ortunities. Lastly, Unilever Ban'la3eshGs LU1 has to com(ete %ith other local or international com(etitors %ho are also %illin' to (rovi3e similar (ro3ucts %ith ever6im(rovin' quality. .hey can create threats as they also %ant to &ecome mar et lea3ers occu(yin' as much share as they can cover.
5n conclusion, as an international LU1 has 'aine3 (o(ularity aroun3 the %orl3 as %ell as in Ban'la3esh. .he involvement o) 5nternational stars ma3e &ran3 success)ul. Erom the arrival o) LU1 in Ban'la3esh it has earne3 hi'hest success %hich coul3 have ever earne3. 5ts &ran3 value other &ene)its has ma3e this &ran3 one o) the hi'hest 'rossin' &ran3 o) Ban'la3esh. All most every tar'ete3 customer ha3 the eI(erience o) usin' this &ran3. 5ts a))or3a&ility ma3e it the most relia&le &eauty soa( in Ban'la3esh. 5n this cha(ter the team %oul3 su''est some recommen3ations to Unilever Ban'la3esh Lt3. to a3o(t more success)ul o(eration in Ban'la3esh. 5, Since a hu'e (ortion o) the rural (oor (eo(le is 3eman3in' LU1 in recent 3ays, Unilever Ban'la3esh Lt3 shoul3 eI(an3 their tar'et mar et also to%ar3s the rural (eo(le. .hey shoul3 also con3uct 3i))erent (romotional activities in rural )airs an3 socially res(onsi&le (romotional activities to attract rural consumers an3 social a%areness .Because LU1 has 3i))erent s in ty(e soa( so no% i) they (rovi3e 3i))erent ty(es o) &eauty soa(s )or male an3 )emale soa( un3er the same &ran3 name i.e. LU1 it mi'ht increase their sales. 55, 555, LU1 can intro3uce LU1 HERBAL. 5t can &e their (ro)ita&le one. Her&al version can 'ra& i3s mar et or s in conscious (eo(leGs mar et. Lastly, as Ban'la3eshi culture chil3ren have a hu'e say in sho((in' so they shoul3 also (romote the (ro3uct to chil3ren li e their another &ran3 /!ove2. .hese are the recommen3ations su''este3 &y team mem&ers to Unilever Ban'la3esh Lt3. to a3o(t )or a more success)ul o(eration in Ban'la3esh %ith lar'e mar et share.
. +I+LIOGRA!HY
". %%%.unilever.com #. htt(MKK%%%.unileverea.comKour&ran3sK(ersonalcareKluI.as( -. htt(MKK%%%.unilever.co.u Kour&ran3sK(ersonalcareKluI.as( 8. Re(ort on /:o%"etition $*enario in +angla#e&h2, (a'e "=, (re(are3 &y Enter(rise 5nstitute, <uly #**:., :.htt(MKK%%%.') .&eKAro3uctsAn3ServicesKConsumer!ia'nostic.oolsKS(ecialAnalysesKBran3 HealthChec U( 6. htt(MKKla3yto&a&y.comKsho%.(h(NitemO":: Ban'la3esh
IN1EX
A Analy0in' the Mar et, *C + Beauty Contests, *C Bran3in', *1 !istri&ution Channel, iv E EIecutive Summary, iv M Mar et Se'mentation, *# Mar et Share, *C Mar etin' Strate'ies, *#
N 9et Arocee3s )rom Sales +9AC,, *6 O @((ortunities, *F ! Aromotional Activities, iv Aro3uct Cate'ory, *# Aro3uct Aositionin', *Aac a'in', *R Research an3 !evelo(ment !e(artment, *: $ S$@. Analysis, *F Stren'ths, *F T .ar'et Mar etin', *8 .actical Mar etin' .ools, *: .hreats, *F 5 $ea nesses, *F Z Donal Beauty Contests, *C