You are on page 1of 26

Table of content:

1. Introduction:....................................................................................................................2
1.1 Background of Unilever............................................................................................2
1.2 Background of sunsilk:..............................................................................................3
1.3 Origin of report..........................................................................................................4
1.4 Scope of study............................................................................................................4
2. Objective and methodology.............................................................................................6
2.1 Objective of the study:...............................................................................................6
2.2 Methodology:.............................................................................................................6
2.2.1 Research method.................................................................................................6
2.2.2 Primary source:...................................................................................................6
2.2.3 Secondary source................................................................................................7
2.2.4 Limitations of the study......................................................................................7
3. Strength &weakness........................................................................................................8
3.1 Strength &weakness of Unilever...............................................................................8
3.1.1 Strength of Unilever:..........................................................................................8
3.1.2 Weakness of Unilever:........................................................................................9
3.2 Strength &weakness of Sunsilk.................................................................................9
3.2.1 Strength of Sunsilk.............................................................................................9
3.2.2 Weakness of Sunsilk.........................................................................................11
3.3 Strength and Weakness of Shampoo........................................................................12
3.3.1 Strength of shampoo.........................................................................................12
3.3.2 Weakness of shampoo.......................................................................................12
4. Segmentation, Targeting & Positioning.........................................................................13
4.1 Segment the market.................................................................................................13
4.1.1 Demographic segmentation..............................................................................13
Consumers needs and wants change with age. Sunsilk is basically a feminine brand.
Even though there is an specific age group using Sunsilk but there is no limitation of
age..................................................................................................................................14
4.1.2 Geographic segmentation.................................................................................14
4.1.3 Psychographic segmentation............................................................................14
4.2 Target market of Sunsilk..........................................................................................14
4.3 The positioning strategy...........................................................................................15
4.3.1 Points of Parity (POP)......................................................................................15
4.3.2 Points of Difference (POD)..............................................................................15
4.3.3 Branding Decisions...........................................................................................16
4.3.4 Brand Elements.................................................................................................16
4.4 Defining the marketing Mix:...................................................................................17
4.4.1 Product..............................................................................................................18
4.4.2 PRICE...............................................................................................................19
4.4.3 PROMOTION...................................................................................................19
4.4.4 Place..................................................................................................................20
5. Conclusion & Recommendation....................................................................................22
5.1 Conclusion...............................................................................................................22
5.2 Recommendation.....................................................................................................22
Reference...........................................................................................................................25

1. Introduction:
1.1 Background of Unilever
Unilever is a British-Dutch multinational corporation that owns many of the
world's consumer products brands in food, beverages, cleaning agents and
personal care products.
The branch of Unilever in Bangladesh is named Unilever Bangladesh Limited.
Unilever's main international competitors include Nestl and Procter & Gamble.
They also face competition in local markets or product.
Company Milestone
19th
Although Unilever wasn't formed until 1930, the companies that joined
century forces to create the business we know today were already well established
before the start of the 20th century.
1900s

Unilever's founding companies produced products made of oils and fats,


principally soap and margarine. At the beginning of the 20th century their
expansion nearly outstrips the supply of raw materials.

1910s

Tough economic conditions and the First World War make trading
difficult for everyone, so many businesses form trade associations to
protect their shared interests.

1920s

With businesses expanding fast, companies set up negotiations intending


to stop others producing the same types of products. But instead they
agree to merge - and so Unilever is created.

1930s

Unilever's first decade is no easy ride: it starts with the Great Depression
and ends with the Second World War. But while the business rationalises
operations, it also continues to diversify.

1940s

Unilever's operations around the world begin to fragment, but the


business continues to expand further into the foods market and increase
investment in research and development.
2

1950s

Business booms as new technology and the European Economic


Community lead to rising standards of living in the West, while new
markets open up in emerging economies around the globe.

1960s

As the world economy expands, so does Unilever and it sets about


developing new products, entering new markets and running a highly
ambitious acquisition programme.

1970s

Hard economic conditions and high inflation make the 70s a tough time
for everyone, but things are particularly difficult in the fast-moving
consumer goods (FMCG) sector as the big retailers start to flex their
muscles.

1980s

Unilever is now one of the world's biggest companies, but takes the
decision to focus its portfolio, and rationalise its businesses to focus on
core products and brands.

1990s

The business expands into Central and Eastern Europe and further
sharpens its focus on fewer product categories, leading to the sale or
withdrawal of two-thirds of its brands.

The
The decade starts with the launch of Path to Growth, a five-year strategic
21st
plan, and in 2004 further sharpens its focus on the needs of 21st century
century consumers with its Vitality mission. In 2009, Unilever announces its new
corporate vision working to create a better future every day with brands
that help people look good, feel good and get more out of life.

1.2 Background of sunsilk:


Sunsilk is a hair care brand, primarily aimed at women, produced by
the Unilever group, which is now considered the world's leading company in hair
conditioning and the second largest in shampoo . Sunsilk is Unilevers leading hair
care brand, and ranks as one of the Anglo-Dutch conglomerate's billion dollar
brands". Sunsilk shampoos, conditioners and other hair care products are sold in
69 countries worldwide.
Sunsilk is sold under a variety of different names in markets around the world
including Elidor, Seda and Sedal. The brand is strongest in Asia, Latin

America and the Middle East and is the number one hair care brand in
Bangladesh, India, Brazil, Argentina, Bolivia, Sri Lanka and Thailand.

Timeline
1954

Sunsilk first launched in the UK

1955

First advertisement of Sunsilk appeared on TV.

1964

Launch of Sunsilk hair spray.

1968

Sunsilk shampoo re-packaged in PVC bottles

1971

Launch of Sunsilk conditioner.

1975

Sunsilk became the biggest name in hair care.

2003

Sunsilk glossy magazine launched in Argentina.

2008

Social networking site Gang of Girls was introduced in India.

2009

Launched seven different Sunsilk co-creation by seven hair experts.

1.3 Origin of report:


Here, we have analyzed segmenting, targeting and positioning of a shampoo along
with the reasons behind its success. Our course instructor Mr. Mahmud Zubayer
assigned us to make a standard report on the strength and weakness of the firm and
product and as well the value delivery chain. For that, he told us to choose any
existing product from the market. And we selected Sunsilk a sub-brand of
Unilever.
Then our instructor told us to complete the report and submit it on 7th August,
2011.

1.4 Scope of study:


4

The books say a lot about segmenting, targeting and positioning. But the real life
scenario is quite different from what is written in the book. Our basic purpose was
to relate the real life scenario and the book. Through out the study and making of
this term paper we have come across various situations and conditions of business
which was very much different from what we learn in the classroom.
For the study we did not only survey by ourselves but also interviewed the
Marketing Manager of Unilever Bangladesh Ltd.

2. Objective and methodology

2.1 Objective of the study:


To know about Sunsilk.

To know about the difficulties faced by Sunsilk.

To know about the growth strategies used by Sunsilk.

To know about various promotional strategies of Sunsilk.

To know about the 4 Ps of Sunsilk.


To analyze the strength and weakness of their product

2.2 Methodology:
2.2.1 Research method: It is said that Sunsilk is one of the largest selling
shampoos in Asia, Latin America and Middle East. Our purpose is to prove that
this fact is right about Sunsilk and verify its strength and weakness. In order to
reach in our destination or to complete the report with proper and relevant
information we collected data from several sources. We collected data from both
primary and secondary sections.

2.2.2 Primary source: The primary source was the survey that we planned by
preparing questionnaire to analyze the view point of the consumers. The
questionnaire was based upon Sunsilk the brand name and also the product
shampoo. Samples of the questionnaire are given in appendix. We selected
hundred random people of different age groups and professions and asked them to
fill up the survey form. After collecting all information we thoroughly went
through each answer and analyzed the percentage.
As the primary source we as well interviewed the marketing manager of Unilever.
We as well analyzed the information he gave verbally about their product.
2.2.3 Secondary source: The secondary source is the documents shown by the
company Unilever on Sunsilk and the generalized report on Unilever. We as
well browsed internet to collect relevant information.
2.2.4 Limitations of the study: We faced lots of problem to complete this
term paper. Collecting information from corporate level is very much tough, not
only that we spent most of our time to prepare this term paper so that, it looks
better and also error free.
The employees of the company were not very friendly to give their corporate
information showing the reason of security and privacy. The information given
was insufficient for marketing undergraduate students. Some of their information
really puzzled us. Yet we hope and believe that we have succeeded in making
standard term paper.

3. Strength &weakness

3.1 Strength &weakness of Unilever


3.1.1 Strength of Unilever:
Familiarity of Unilever products is really high. Sometimes consumers dont know
it is Unilever, yet it is known as its sub brand or the brand category. This way the
product familiarity is high and many people in the world uses at least one product
of them daily.
Unilever is a globally and locally known strong brand. it has a long history and
hence they gain consumers trust and reputation along the way. They are one of the
trusted names in nutrition, hygiene and personal care products across 150
countries. Their products are now part of our daily life necessities in home. Thus,
with their reputations, they have gained household awareness status. They are able
to shelf their products in big retail players. Big retailers like Giant, Tesco and
Carrefour, they have retail stores nationwide, and this hence makes
Unilever products easily accessible.
The Company has more than 400 brands which operate under two main divisions,
Food and Home & personal care. Each division has separate strengths.
Unilever posses 40-45% of market share over its operating countries by 2004
(compared to P&G). This makes it is one of the leaders in the industry. Only P&G
is the possible competitor to the Unilever. Thus the market share of Unilever
considered being one of its main strengths.

3.1.2 Weakness of Unilever:

Regardless of their brand strength, Unilever products still has their own
weaknesses. Although company performance was good, there were some products
which was not doing that well in the market which were expected to perform fine.
Even though the set target was 10%, some of leading products only could attain 45%.
Even though Unilever has 1600 brands, only core (400) brands gain 90% of sales.
Thus the advertising and other expenditure is wasted on other 1200 products
where as the return was only 10% of total income.

3.2 Strength &weakness of Sunsilk:


Even the best selling brands of all time has its own strengths and weaknesses.
Every strength reflects the products success and every weakness reflects where
the product can improve. Therefore without anyone of these the product is
incomplete.Like every other successful product Sunsilk has its own strength and
weaknesses, for which it is Sunsilk.

3.2.1 Strength of Sunsilk

The New Sunsilk Shampoo is a high quality product in terms of hair

protection.

The target market is educated, professionals and belongs to upper middle,

middle and lower class.

Company totally owned, systematic distribution network, transparent

communication system.
9

Participative management style

Very good distribution network all over Bangladesh, in all major and small

cities.
Mind share: To buy a shampoo rational consumers firstly think about Sunsilk
due to the benefits offered and the price of each sachet or bottel.
This analysis was done by the survey questions. There were several questions
comparing Sunsilk with other brands to analyze the position of Sunsilk in the
target customers mind. The survey results show that 65% of the customers think
of Sunsilk. During the survey Sunsilk was not only compared to its competitors
but also other brand of shampoos offered by Unilever. Therefore it shows that
Sunsilk occupied more space in the minds of the customers than any other product.

10

Market Share: Sunsilk as a market competitor, they are steadily gaining market
share. At present market situation, they capture 34% of total market share.
This analysis was found by questioning the marketing manager of Unilever. From
2004 till date Sunsilk has shown a rapid growth in market share, not only
compared to its competitors but also other brands offered by Unilever. The
benefits offered by this product captured the customer minds faster than any other
product available in the market.

3.2.2 Weakness of Sunsilk


Competitor has more strong promotional activities.
Customers are offered better alternatives by the competition.

Targets are mostly female customers. They overlook the large potential market
segment i.e. male customers. Their competitors excel by providing benefits for
both genders.

11

3.3 Strength and Weakness of Shampoo

3.3.1 Strength of shampoo

Shampoo makes our hair clean, silky and shiny.

It helps to make our hair manageable.

Removal of oils, dirt, skin particles.

Some shampoo contains vitamin E which is really good for our hair and it

increases our hair growth.

Removes dandruff, environmental pollutants and other contaminant

particles that gradually build up in hair.

Pleasing foam, fragrance and easy rinsing.

Hair feels thick and strong.

Low toxicity.

Good biodegradability.

3.3.2 Weakness of shampoo

Too much use of shampoo makes our hair rough.


Some shampoo contains chemicals which are harmful for hair and scalp and it
also increase hair falling problem.
Frequent use of shampoo spoils the color of hair.

12

Shampoo is harmful for eye.


The greasy feeling of the scalp after a day or two of not shampooing.
Using shampoo every day removes sebum, the oil produced by the scalp. This
causes the sebaceous glands to produce oil at a higher rate.

Slightly acidic, (pH less than 7), since a basic environment weakens the hair by
breaking the disulfide bonds in hair keratin.

4. Segmentation, Targeting & Positioning

4.1 Segment the market:


Sunsilk market consists of consumers who prefer to use a product for long shiny
and smooth hair. Unilever considers Sunsilk shampoo as a personal care product.
Market Segmentation is probably the most important part of the plan. Unilever
segment their product on the basis of Demographic segmentation, Geographic
segmentation and Psychographic segmentation.

4.1.1 Demographic segmentation

Demographic factors are the most popular bases for segmenting customer groups.
In demographic segmentation Unilever segments Sunsilk with Age and Income
segmentation.

13

Age and life cycle stage:


Consumers needs and wants change with age. Sunsilk is basically a feminine
brand. Even though there is an specific age group using Sunsilk but there is
no limitation of age.

Income:
Income segmentation has long been used in personal care products. They market
their product as sachet and different sizes of bottle, so that different level of
consumers can afford it.

4.1.2 Geographic segmentation

In geographic segmentation Sunsilk is distributed among 150 countries.

4.1.3 Psychographic segmentation

In psychological segmentation Unilever segments Sunsilk with social class as this


product will target middle class, upper middles and lower class.

4.2 Target market of Sunsilk:


The main target market of Sunsilk is females between the ages group 16-40
belonging to the lower and middle income classes. But in their promotional
activities, they cover the whole market irrespective of these classes.

14

Sunsilk target its market on the basis of consumer buying behavior, income level,
and purchasing power of people. For which quantity of the product can be changed
according to the income and purchasing power of the consumers as in case of
Sunsilk 120ml and 5ml packs are also available to target low income groups.

4.3 The positioning strategy:


4.3.1 Points of Parity (POP):
Points of parity are associations that are not necessarily unique to the brand but
may in fact be shared with other brands. For an offering to achieve a point of
parity on a particular attribute or benefit, a sufficient number of customers must
believe the brand is good enough on that dimension. Like others SUNSILK
consists of such POPs:

Dream soft and smooth

Stunning Black shine

Lusciously Thick and Long

Antidandruff solution

Hair fall solution

4.3.2 Points of Difference (POD):


Points of difference are attributes or benefits consumers strongly associate with a
brand, positively evaluate, and believe they could not find to the same extent with
a competitive brand. With point of difference, the brand must demonstrate clear
superiority. For instance: Apple (design), Volvo (safety), Energizer is the largest
lasting battery.

15

We found that PODs for Sunsilk is Co-creation formula created by experts. They
came with this idea to grab the market and to be superior in the market. From 2009
Sunsilk started working with a number of professional hair "experts" to develop
new and improved products. Each hair issue" links to an "expert with the
relevant specialist hair knowledge. For example, Dr Francesca Fusco, a New York
dermatologist, co-created a hair fall variant forth brand. The lineup also
includes: Jamal Hammadi for Black Shine, Rita Hazan for Vibrant Colour, Teddy
Charles for Plumped Up Volume, Thomas Taw for Damage Reconstruction,
Ouidad for Defined Curls and Yuko Yamashita (known for Japanese hair
straightening) for Perfect Straight.

4.3.3 Branding Decisions: Branding strategy is one of the most vital decisions
taking by marketers. It is a strategy, which brings lots of positive feedback for a
firm. The first branding decision is whether to develop a brand name for a product.
Today, branding is such a force that hardly anything goes unbranded.
Unilever follow individual name for setting brand name for their different
products, such as Sunsilk, Dove (Shampoo), Ponds, Fair & lovely, Dove for skin
care. Unilever get a major advantage of an individual name strategies that the
company does not tie its reputation to the products. So, if any brand fails or
appears to have low quality, the companies name or image is not hurt.
4.3.4 Brand Elements: Brand elements can play a number of brand building
roles. Brand elements are those trademark able devices that identify and
differentiate the brand. Most strong brands employ multiple brand elements.

16

Marketers choose brand elements to build as much brand equity as possible. Brand
elements such as: memorable, meaningful, likable, adaptable and protectable. We
describe those elements in short as follows:

Memorable: every consumers mind catches the brand name. Their

marketing programs set the brand name in consumers mind. Sunsilk is an easily
memorable brand name.

Meaningful: Every consumer has a clear meaning about Sunsilk.

Consumer thinks about Sunsilk as a product which solve their problem relating
with hair.

Likable: From our research we found that most of the people like the brand

verbally and visually.

Protectable: The brand name is legally and competitively protectable. The

brand retain their trade mark rights and not generic.

Adaptable: another fact which we saw in Sunsilk. Different pack size and

new formulas are easily accepted by the consumers.

4.4 Defining the marketing Mix:

17

It is the set of controllable tactical marketing tools of the company-product,


place, price, promotion. The marketing mix consist of everything the company
can influence the demand for its product.

4.4.1 Product

Black Shine: Enriched with Amla energizer for black hair that lacks luster.
With its new pearlier texture and the goodness of Amla, Sunsilk Black
Shine nourishes from deep within to reveal blacker, shiner, silkier hair.

Hair Fall Solution: Enriched with Ginseng and Soya energizer for hair that
breaks easily. It works on the weak spot of your hair, so with the hair strand
reinforced, your hair grows beautifully long even before you know it.

Soft and Smooth: Enriched with egg and almond oil energizer for hair that
feels rough and dry. It nourishes deep within the hair strands, smoothens
out those tangles and brings out the softness you can really feel.

18

Anti Dandruff: Enriched with citrus cream and ZPTO energizer that drives
out dandruff and restores the natural beauty of hair.

Damage Repair: Enriched with olive oil energizer, Sunsilk Damage Repair
repairs damaged hair to give hair that looks healthy and nourished

4.4.2 PRICE
UNILEVER claims to practice value-based pricing in which the customers
perception of the products price provides a starting point for developing the
marketing mix of the product. The research department determines this price
usually by using focus groups. The price of BDT 2 for Sunsilk shampoo sachets
shows how the price also reflects a concern to make the purchase more
convenient, since the taka is denoted in this value.
Sunsilk is also available in 200ml bottles for BDT 220 and 400ml bottles for BDT
480 keeping in mind the demand and wants of customer segment.
The primary importance of this value-based pricing is that the product demand
will be much higher if its price is in line with the customers perception of its
value. One crucial concern for value-based pricing is strict management of cost in
order to be able to make a profit at the value-based price. After determining the
initial price, UNILEVER uses target costing in order to achieve the required
profits.
19

4.4.3 PROMOTION
Build top of the line consumers awareness.
Creating a personality of the brand.
Besides having these general objectives, the advertising objectives are set avoiding
to the advertising strategy for each product, e.g. Sunsilk advertising objectives
since it was being re-launched were:
To increase the usage.
Conditioning benefits.
Makes the hair appear clean and shiny.
Imparts a feeling of freshness-due to fragrance.
Easy to manage, silky, soft hair.
Unique shampoo for every hair type.
Effectively communicate brand promise.
Promotional strategy

Sponsored short films that were broadcast during popular television shows.

Media platforms used print media

Internet rural campaign environment concern ads

Music videos

Free sample distribution

Demo campaigning

Billboard

Sponsorships

4.4.4 Place:

20

Sunsilk

uses

several

channel,

coverage,

assortment,

locations

and

transportation system to make the product available in the market to target


consumer. They are one of the largest company which reached the rural areas of
Bangladesh and occupied place in customers mind. It can be said that Sunsilk
occupies the largest market space among all other companies.
The distribution channel of Sunsilk follows the conventional route of marketing.
The product is distributed in150 countries. In Bangladesh Sunsilk first introduced
the sachets and reached the largest market share.

21

5. Conclusion & Recommendation

5.1 Conclusion:
The shampoo industry of Bangladesh consists of a few producers. The demand for
this product is very much vulnerable in terms of pricing. Unilever Bangladesh is
providing Sunsilk at a price which is affordable to most of the people in the
country. Shampoo is an uprising product in Bangladesh as a greater portion of the
population, as female, are now getting more hair conscious. As a multinational
company Unilever Bangladesh with heavy promotional activities, has been able to
penetrate the market.
With many different varieties, three different package, international standard and
high quality design, as a product, Sunsilk has been highly successful over the
years. Its distribution process is highly efficient. Its promotional activities, like the
beauty contest has been a milestone in attracting a huge number of customers.
Overall with its marketing activities Sunsilk has been a successful brand.
The only place where rival companies are progressing is in giving customers
redemption offers. Research revealed that Bangladeshi customers are highly
attracted to this sort of offers. These offers are not sustainable in the long run but
still it takes away a considerable part of Sunsilk sale in the short run.

5.2 Recommendation:
The team would suggest some recommendations to Unilever Bangladesh Ltd. to
adopt more successful operation in Bangladesh.

22

1. The Sunsilk is a global company and each country has own culture.
Therefore Sunsilk should incur promotional activities according to the
culture of Bangladesh, for Bangladeshi people.
2. Sunsilk can arise and ensure social responsibility in the society, so they
would establish themselves in customer mind and customer would be loyal
about Sunsilk. Sunsilk must focus on social responsibility, to maintain
image among customers, mainly advertisement covers huge expenses of
Sunsilk, but we recommend them to cut their advertisement expenditures,
in the economic crisis and should more focus on corporate social
responsibility (CSR).

Figure: Sales revenue and social responsibility

3. Even though Sunsilk has varieties of shampoo yet among those only 5 are
available in Bangladesh. Unilever should introduce new varieties in order to
increase revenue.
4. Sunsilk is well known for its shampoo & the company promotes the brand
in terms of the shampoo. The brand has other products such as conditioner.

23

The other products under sunsilk should be equally promoted in order to


occupy larger place in its consumers mind.
5. The brand Sunsilk is called to be a feminine brand & it has no variety for
men. Sunsilk should introduce a new variety for men. By this it can capture
another huge segment of the market and increase revenue.

24

Reference:

http://www.scribd.com/doc/34994170/Sunsilk-Its-Branding-Strategies

http://en.wikipedia.org/wiki/Sunsilk

http://ncbd.net/product.php?id_product=1082

http://www.oppapers.com/search_results.php?

action=search&query=CSR+of+sunsilk

https://www.oppapers.com/join.php

http://bangladesh.gangofgirls.com/register/register.asp?go=1&gangName=

http://www.ikmagazine.com/xq/asp/sid.0/articleid.4D8FDB40-41CB-4278-

90E3-FA955C7A1CF4/eTitle.CASE_STUDY_Unilever/qx/display.htm

http://www.oppapers.com/subjects/weaknesses-of-unilever-page1.html

http://www.oppapers.com/subjects/sunsilk-bangladesh-page1.html

http://www.blurtit.com/q9184169.html

http://www.scribd.com/doc/35065384/Sunsilk-Branding-Srategies-

powerpoint

http://www.scribd.com/doc/34994170/Sunsilk-Its-Branding-Strategies

http://www.ehow.com/about_5513151_sunsilk-shampoo-ingredients.html

http://www.worldofhair.com/questions/healthyhair-shampoo.htm

http://www.savvyskin.com/shampoo-ingredients-to-avoid

http://www.sunsilkhairproducts.info/privacy-policy/
25

26

You might also like