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Principles of Marketing
Section: H Spring 2009-10 Semester
Title of the Assignment:
“Managing Profitable Customer Relationships and Partnering to build Customer Relationship – A study on Unilever Bangladesh Limited”
No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products.
Unilever is one of the world’s largest and leading multinational companies; Unilever commenced their business activities on a large scale by setting up their first factory in Netherland, in the year of 1822. Operating in Bangladesh for over the last four decades the company is trying to significantly contribute towards the augmentation of the standard of living by bringing world class high quality products at the door steps of their customers. The usage of Unilever products by over 90% off the people in Bangladesh stands a testimony to their successful operation.
Type of business:
Fast Moving Consumer Goods company with local manufacturing facilities, reporting to regional business groups for innovation and business results.
Home and Personal Care, Foods
Unilever - 60.75% shares, Government of Bangladesh - 39.25%
Unilever Operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are locals and we have equal number of Bangladeshis working abroad in other Unilever companies as expatriates. At the heart of the corporate purpose, which guides us in Unilever approach to doing business, is the drive to serve consumers in a unique and effective way. This purpose has been communicated to all employees worldwide.
keeping their homes fresh and clean. look good and get more out of life. Vision: Every day. satisfying meal or healthy snack. We meet everyday needs for nutrition. our products touch the lives of over 160 million people – whether that's through feeling great because they've got shiny hair and a brilliant smile.Mission: Adding Vitality to Life Unilever's mission is to add Vitality to life. hygiene and personal care with brands that help people feel good. or by enjoying a great cup of tea. .
Vaseline & 16. 7. There are as follows: 1. 8. Pond's. Surf Excel.Dove. Fair & Lovely. Marketing concept. 11.List of Marketing offerings (Product & Services of the Organization): Brands : Wheel. Lifebuoy. Lakme. 2. 5. 2. Like Uniliver follows four of them. 9. Project Joyita. Marketing concept: Usually company follows five concepts. Product concept. 1. But not every company follow all the concept equally. Dove. LUX. LUX etc. 15. 4.Sunsilk. 14. 6. Societal concept. Rexona. Skin care. better health for mother and child etc. Taaza.Skin cleaning. Selling concept. . 10. marketing concept and societal concept. Close Up. Vim. 13. Food etc. 4. 3. 12. selling concept. 3. Clear.Lifebuoy Floating Hospital. Pepsodent. They are such production concept. Sunsilk.
packaging and non-production items. the award is recognition of their hard work and dedication towards UBL. Distribution channel: Unilever Bangladesh Limited (UBL). The Distributors’ Flying Club is a new addition to a number of activities that the Company is already carrying out for its distributors. there is a tea packaging operation in Chittagong and three manufacturing units in Dhaka. and ensuring products arrive as promised to meet customer needs. As part of this program. The team explores new ways of working with suppliers and plays an important role in technology innovation. Its remit is shared amongst four divisions: Customer Service – Logistics: This area is responsible for solving challenges such as on-shelf availability. Customer Service – Plan: Demand planning uses models as well as market knowledge to determine potential sales. Manufacturing facilities: The company has a Soap Manufacturing factory and a Personal Products Factory located in Chittagong. Using this data. . distributors were allocated mileage based on the sales growth that they delivered. working at the interface between warehousing and transportation. Performance of these distributors has been key to the business and. A total of 94 distributors were rewarded with tickets to trips both within the country as well as overseas in recognition of their excellent performance over the year 2007. Unilevers’ supply chain is at the heart of getting brands to customers. They were then awarded tickets to destinations that were covered by the mileage that they had collected. Unilever Bangladesh has been a pioneer in partnering and supporting the Distributors so that they reach optimal performance and get the best return on their investment. recognizes distributors who have achieved exceptional growth in 2007. hence. Roles include order management. supply planning ensures factories are able to meet these sales demands on time and in the most cost effective way possible. in a recent ceremony.Supply Chain: From sourcing raw materials to delivering the end product. Besides these. which are owned and run by third parties exclusively dedicated to Unilever Bangladesh. Supply management: This is about optimizing the cost and quality of what we buy through the intelligent sourcing of materials.
Business Portfolio(SBU’s) of the organization: 1.2 Lifebuoy soap: Lifebuoy Total. 4. Household care. 8. 1. Oral Care. Lifebuoy Care Lifebuoy Nature Lifebuoy Deofresh . Hair Care. Fabric Cleaning. Skin care. 6. Tea based beverage products. Skin cleaning. 3. Personal grooming. 5. 7.1 Lux soap: Lux Nature Pure Lux Aqua Sparkle Lux Strawberry & Cream Lux Peach & Cream 1. 2. Skin Cleaning: 1.
Skin Care: 2. 2. Gentle Exfoliating Facial Foam Oil Control. Talcum Powder . Flawless White range .2 Fair & Lovely Menz Active: Menz Active 2.3 Pond's: Age Miracle Range .1.4 Dove & pond’s: Dove cream bar: . Face wash range .1 Fair & Lovely: Multivitamin Ayurvedic Skin Clarity 2.3 Lifebuoy hand wash: Lifebuoy hand wash 1.
Lakme Peach Milk Moisturizer .1 Lakme: . Personal grooming: 3. musk & moisture: Perfect result Body Lotion . 3.White beauty range 2.7 Lakme: Lakme Mattifying Range . 2.4 Dove lotion.5Vaseline lotion: Total Moisture Body Lotion 2.6Vaseline petroleum jelly: 2.
2 Axe: Lakme truwear nail color . 3.1 Close Up: Menthol Chill .3 Pepsodent Tooth Power: . Red Hot . Rexona Mini Ice Cool . 4.2 Pepsodent Toothpaste: Pepsodent Complete . Axe Dark Temptation Rexona Free Spirit . 4. Axe Click. Rexona Mini Free Spirit . Pepsodent Herbal . Icylicious Blue . Rexona Ionic .3 Rexona: Axe Pulse . Oral care: 4. Crystal white . 4.Lakme Enrich Lip color. 3. Axe Vice .
1 Sunsilk Shampoo: Black Shine Anti-Dandruff Soft and Smooth Damage Repair Hair fall Solution 5. 4.Pepsodent toothpowders.4 Pepsodent Brush: Pepsodent Toothbrushes 5. Hair Care: 5.2 Sunsilk Conditioner: Hair Fall Solution Conditioner Damage Repair 5.3 Sunsilk Hair Fall Solution : Hair fall Solution Treat .
Care . Clear Active Clear Extra Strength .5.5Dove Conditioner 5. Fabric Cleaning: . Clear Men Styl-Express .4 Dove Shampoo: 5. Clear Ice Cool .6 Clear Shampoo Clear Hair Fall Defense. Clear Clear Hair Oil 6. Men ActivSport .
Wheel Lemon Power . 7.3 Surf Excel Powder: Surf excel Pack.1 Vim: Vim Bar.2 Vim Powder Vim Powder .6. Surf excel Mini .1 Wheel Lemon power: Wheel Soap. 7. Household care: 7. 6.3Vim Liquid . 7. 6.2 Wheel Power White: Wheel Power White.
8. Tea based beverage products.1 Lipton Taaza: Lipton Taaza 8. 8.2 Danedar teabag: Danedar teabag BCG Matrix of SBUs: .Vim Liquid.
L=LOW and H=HIGH Implementation of Product-Market Expansion Grid Strategies The matrix allows marketers to consider ways to grow the business via existing and/or new products. in existing and/or new markets – there are four possible product/market combinations. The matrix consists of four strategies: • Market penetration (existing markets. This matrix helps companies decide what course of action should be taken given current performance.Here . Vaseline and Wheel are the example of existing products in existing market of Unilever. The best way to achieve this is by gaining competitors' customers (part of their market share). . existing products): Market penetration occurs when a company enters/penetrates a market with current products.
• Product development (existing markets. . new products): A firm with a market for its current products might embark on a strategy of developing other products catering to the same market (although these new products need not be new to the market. existing products): An established product in the marketplace can be tweaked or targeted to a different customer segment. Lux. Sunsilk. • Market development (new markets. • Diversification (new markets. . new products): Company entering new markets where it had no presence before. as a strategy to earn more revenue for the firm. Lux (mini pack) are the existing products but in new markets of Unilever. the point is that the product is new to the company). Pond’s are the new products but in new market of Unilever. Fair & Lovely. Clear men stylexpress are the new products also in new markets of Unilever.
Education is important for the development of the nation and UBL hopes to bring the light of education to those who lack the opportunity to avail it.all aimed at improving the living standards of Bangladeshi people. Education for all: UBL sponsored a free primary school for underprivileged children because education should be for everybody. career and economic advancement. comprising half of the country's population. Education and Women's Empowerment . • Women’s empowerment: UBL believes it is necessary that women.Societal marketing Activities (CSR done by organization) Unilever Bangladesh focuses its voluntary social initiatives in three key areas: Health. 1. • Education : Unilever Bangladesh emphasizes on better opportunities of education at all levels and for everyone. UBL brings opportunities to women for education. be progressively brought into the mainstream of economic activities to bolster development. Promoting equal opportunities : Supplementary education from FALF helps rural school girls to become competitive 2. .
3. • Health. has created waves across the country. . 1. 2.1. Brings world class customer products. Health awareness: Lifebouy and Pepsodent bring the message of health and hygiene to millions of people across Bangladesh. 1. and threats is called SWOT analysis. Hygienic & Personal care: Unilever Bangladesh brings products for everyday personal hygiene. Lifebuoy floating hospital: The Lifebouy Friendship Hospital brings valuable health care to thousands of deprived people living along riverbanks. Better health for mother & child : UBL helped to set up modern operation facilities in a Port City hospital. Project Joyeeta : Project Joyeeta and Aparajita is helping rural women stand on their own two feet and enabling them to be financially empowered. Education and Enterprise. 3. 5. opportunities. Urban vocational training: FAL Foundation reaches out to empower urban women with marketable skills. Fair & Lovely Uttorone Nari : Fair & Lovely foundation in Bangladesh has taken innovative steps in empowering women. 2. Creating products and lifestyles that make a positive contribution to health for people. and positive situational factors that may help to serve company customers and achieve company objectives. For each trends of development. resources. Fair & Lovely foundation: Unilever Bangladesh's social initiative to encourage women's economic empowerment through information and resources in the areas of Career. SWOT Analysis The overall evaluation of a company’s strengths. Recognized as a global company. 4. The business people should set up a marketing intelligence system to track and important developments. 3. It also promotes the idea of a better lifestyle through everyday cleanliness across the country. management need to identity the associated opportunities and threats. weakness. 2. • Strength: Strengths include internal capabilities. Higher education scholarships: Supporting talented women for higher education. Strong brand portfolio.
3. 5. Dual leadership. Changing consumer performances. 2. 2. 4. String competition. Confusion in their products. Promoting special events of every culture. Aware of consumer buying behavior. Inability to maximize acquisition. increasing need for baby products. Tougher business climate. Inefficient management of brands. 3. • Opportunities : Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage 1. Target the youth of world. Decrease in revenue. 1.4. 5. Increasing need for healthy products. 3. Not connecting with customer. 5. Economics of scale. Exchange rate. 4. 4. • Threats: Threats are unfavorable factors or trends that may present challenges to performance. • Weakness : Weaknesses include internal limitations and negative situational factors that may interfere with company performance 1. Suggestions . 5. The local companies. 2.
Recommendations 1. In Bangladesh Unilever produces tea based beverage products. Provides a greater charity of leadership. Provides a strong competitive platform against major competitors and private label brands. This company’s products are highly consumed by the customer only for their baby products. dual chairperson approach. Unilever’s one of the competitor is Johnson & Johnson. Unilever group owns Unilever PLC and Unilever NV. Implement “Unilever Believer “product and brand extensions : • • • Increase consumer focus on health and nutrition. Create a strategic platform for brand management. Reorganize and streamline Unilever’s organizational structure : • • • • Unilever maintain two business entities. Nestle is one of the competitor of Unilever. So increasing food products can bring more profit for Unilever. 2. . responsibility and accountability.• They can make profit by producing baby product. • • Provides the ability to leverage scale of operations. • They can add more food products. Allows Unilever to focus on the needs of their customer and consumers thus reigniting growth and increasing sales potential. Delivers innovative product that capitalize on changing consumer preferences. Nestle is famous for their food product.
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