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Internship Report

On

Rural Consumers Engagement in Unilever


Bangladesh Ltd through Small Scale Interactions

May 10, 2016 |Shahriar Wahid


1

Rural Consumers Engagement in Unilever Bangladesh Ltd


through Small Scale Interactions

Submitted To:
Department of International Business
Faculty of Business Studies
University of Dhaka

Supervised By

Prepared By
Shahriar Wahid

Dr.Chowdhury Saima Ferdous


Roll-65
Associate Professor
Department of International Business

BBA 5th Batch


Department of International Business

Faculty of Business Studies


University of Dhaka

Faculty of Business Studies


University of Dhaka

Date of Submission: May 10, 2016

Internship Report
on
Rural Consumers Engagement in Unilever
Bangladesh Ltd through Small Scale Interactions

Letter of Transmittal

May 10, 2016


Dr.Chowdhury Saima Ferdous
Associate Professor,
Department of International Business,
Faculty of Business Studies,
University of Dhaka.
Subject: Submission of Internship Report on Rural Consumers Engagement in Unilever
Bangladesh Ltd through Small Scale Interactions.

Dear Madam,
It is a pleasure to submit my internship report on Rural Consumers Engagement in Unilever
Bangladesh Ltd through Small Scale Interactions. to partially fulfill the requirements of the
BBA degree under your kind supervision. It has been a worthwhile experience for me
undertaking such report to get exposure to a multinational FMCG organization. I have tried
my best to maintain the academic requirements.
I would like to express my sincere gratitude to you for you kind guideline & suggestions in
preparing the report. It would be pleasure for me if you find my report informative and useful
to have an idea about rural consumers engagement activities of an FMCG firm.

Sincerely yours

-------------------------Shahriar Wahid
Roll: 65
BBA 5th Batch
Department of International Business
Faculty of Business Studies
University of Dhaka

Supervisors Declaration
This internship report on Rural Consumers Engagement in Unilever Bangladesh Ltd through
Small Scale Interactions is prepared by Shahriar Wahid, Student ID: 65, BBA 5th Batch,
Department of International Business, Faculty of Business Studies, University of Dhaka. He
has completed his internship program under my supervision and submitted this report for the
partial fulfillment of the requirement of the degree of Bachelor of Business Administration
(BBA) from Department of International Business, University of Dhaka.

I wish every success in his life.

-----------------------Dr.Chowdhury Saima Ferdous


Associate Professor
Department of International Business
Faculty of Business Studies
University of Dhaka

Acknowledgement

At the very beginning I would like to express my gratitude to almighty Allah for giving me
the strength to complete the report titled Rural Consumers Engagement in Unilever
Bangladesh Ltd through small scale interactions.
My special gratitude goes to my supervisor Dr.Chowdhury Saima Ferdous, Associate
Professor, Department of International Business, Faculty of Business Studies, University of
Dhaka for her cooperation and time to guide my effort with helpful hints and useful advice all
along to prepare this report. The report might never be possible in time without the help of
her kind supervision.
I would like to express my gratitude to my line manager Mr.Ali Zulayed, Activation
Manager, Brands Building Department, Unilever Bangladesh Ltd for giving me the
opportunity to work independently and providing necessary information to complete my
internship report.
I am very much grateful to Mr. Arman Tahaboor, Brand Executive-Activation, Brands
Building Department, Unilever Bangladesh Ltd for his cordial advice that has helped me to
complete internship program at Unilever Bangladesh Ltd. He has given me tremendous
support and shared ideas while doing day to day office works.

Table of Contents
List of Abbreviations ............................................................................................................... 11
Executive Summary ................................................................................................................. 12
Chapter-1: Introduction
1.1 Title of the Report .............................................................................................................. 14
1.2 Background of the Report .................................................................................................. 14
1.3 Significance of the Report ................................................................................................. 14
1.4 Objective of the Report ...................................................................................................... 14
1.5 Scope of the Report ............................................................................................................ 15
1.6 Limitation of the Report..................................................................................................... 15
1.7 Structure of the Report ....................................................................................................... 15
Chapter-2: Literature Review
2.1 Introduction ........................................................................................................................ 18
2.2 Definition of Consumer ..................................................................................................... 18
2.3 Rural Consumers in Bangladesh ........................................................................................ 18
2.4 Importance of Engaging Rural Consumers ........................................................................ 19
2.5 Small Scale Interaction Practices in Rural Areas of Bangladesh ...................................... 21
2.6 Conceptual Framework ...................................................................................................... 22
2.7 Summary of the Chapter .................................................................................................... 23
Chapter-3: Methodology
3.1 Introduction ........................................................................................................................ 25
3. 2 Classification of the Research ........................................................................................... 25
3.3 Research Design................................................................................................................. 25
3.4 Research Questions ............................................................................................................ 25
3.5 Population and Sampling Techniques ................................................................................ 26
3.6 Parameters and Measurement Criteria ............................................................................... 26
3.7 Data Collection .................................................................................................................. 27
3.8 Data Analysis ..................................................................................................................... 27
3.9 Data Validation .................................................................................................................. 28
3.10 Ethical Stance................................................................................................................... 28
3.11 Summary of the Chapter .................................................................................................. 28

Chapter-4: Organizational Overview


4.1 About Unilever................................................................................................................... 30
4.1.1 History of Unilever...................................................................................................... 30
4.1.2 Unilever Today............................................................................................................ 32
4.1.3 Unilevers Corporate Purpose ..................................................................................... 32
4.2 Unilever Bangladesh Ltd. .................................................................................................. 33
4.2.1 History of Unilever Bangladesh Ltd. .......................................................................... 33
4.2.2 Unilever Bangladesh Ltd. at a Glance ......................................................................... 34
4.2.3 Brand Portfolio ............................................................................................................ 35
4.2.4 Corporate Social Responsibility .................................................................................. 36
4.2.5 Organizational Structure ............................................................................................. 36
4.2.6 Brands Building in Unilever Bangladesh Ltd ............................................................. 37
Chapter-5: Internship Experience
5.1 Project Brief ....................................................................................................................... 41
5.2 Job Description .................................................................................................................. 41
5.3 Different Aspects of Job Performance ............................................................................... 42
Chapter-6: Findings and Analysis
6.1 Reasons behind Engaging Rural Consumers through Small Scale Interactions ................ 44
6.2 Types of Activations Unilever Bangladesh Ltd Runs to Engage Rural Consumers.......... 46
6.2.1 Haat Activation ........................................................................................................... 47
6.2.2 Uthan Activation ......................................................................................................... 47
6.2.3 School Activation ........................................................................................................ 47
6.2.4 Institutional Action ...................................................................................................... 47
6.2.5 Shop Signboard ........................................................................................................... 48
6.3 Running a Rural Activation Program ................................................................................ 48
6.4 Realizing the Need of a Rural Activation Program ........................................................... 48
6.5 Implementing a Rural Activation Program ........................................................................ 49
6.6 Selection of a Third Party (Agency) .................................................................................. 50
6.7 Measuring the Success of a Rural Activation Program ..................................................... 50
6.7.1 Penetration/Consumption Change ............................................................................... 51
6.7.2 Market Share Change .................................................................................................. 51
6.7.3 Sales Growth ............................................................................................................... 51
6.7.4 Dipstick Study ............................................................................................................. 51
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6.7.4.1 Pre-Post Method ................................................................................................... 52


6.7.4.2 Intervention vs Control ......................................................................................... 52
6.8 Issues faced by Unilever Bangladesh Ltd .......................................................................... 52
6.8.1 No Immediate Result ................................................................................................... 52
6.8.2 Changing Rural Scenario ............................................................................................ 52
6.8.3 Cost per Consumer ...................................................................................................... 53
6.9 Rural Activation Status of Different Brands ...................................................................... 53
Chapter-7: Conclusion and Recommendations
7.1 Conclusion ......................................................................................................................... 56
7.2 Recommendations .............................................................................................................. 56
7.3 Future Work Direction ....................................................................................................... 57
References ............................................................................................................................... 58
Appendices A: Unilever Logo and Design History ................................................................ 59
Appendices B: Brand Portfolio of Unilever Bangladesh Ltd. ................................................ 63
Appendices C: Different Departments of Unilever Bangladesh Ltd ...................................... 66
Appendices D: Glossary.......................................................................................................... 71

List of Figures
Figure 1 Structure of the Report .............................................................................................. 16
Figure 2 (% of Total Population) ............................................................................................. 19
Figure 3 Growth in average monthly household nominal income, expenditure and
consumption of rural population in Bangladesh taka (BDT) ................................................... 20
Figure 4 Average income and consumption expenditure of rural household .......................... 20
Figure 5 Snake Charming ........................................................................................................ 21
Figure 6 Magic Shows ............................................................................................................. 22
Figure 7 Village Fair ................................................................................................................ 22
Figure 8 Conceptual Framework ............................................................................................. 23
Figure 9 Organizational Structure ............................................................................................ 37
Figure 10 Brand Activation Team ........................................................................................... 38
Figure 11 Organogram of Brand Building Department ........................................................... 39
Figure 12 Reasons behind Engaging Rural Consumers through Small Scale Interactions ..... 44
Figure 13 Pepsodent School Activation ................................................................................... 45
Figure 14 lifebuoy School of 5 Activation ............................................................................. 46
Figure 15 Types of Activation ................................................................................................. 46
Figure 17 Implementation Process of a Rural Activation Program ......................................... 49
Figure 18 Methods of Dipstick Study ...................................................................................... 51
Figure 19 Rural Activation Status of Different Brands .......................................................... 54
Figure 20 Implementation of Different Types of Rural Activation Programs ........................ 54
List of Tables
Table 1 Average monthly household nominal income, expenditure and consumption of rural
population in Bangladesh taka (BDT) ..................................................................................... 19
Table 2 List of parameters and measurement criteria ............................................................. 26
Table 3 Timeline ...................................................................................................................... 31
Table 4 Brand Portfolio of Ubl ................................................................................................ 35
Table 5 Corporate Social Responsibility ................................................................................. 36
Table 6 Third Parties of Unilever Bangladesh Ltd ................................................................. 48
Table 7 Brands with Rural Activation Programs ..................................................................... 53
Table 8 Brands without Rural Activation Programs ................................................................ 53

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List of Abbreviations

ATL Above the line


BTL Below the line
FMCG Fast moving consumer goods
IFAD - International Fund for Agricultural Development
PLC Public Limited Company
UBL Unilever Bangladesh Ltd
AAC - Asia, Africa, Central & Eastern Europe
AMET Africa, Middle East and Turkey
CEC Central and Eastern Europe
BBA - Bachelor of Business Administration
CMI - Consumer and Market Insight
BB Brands Building
FY Financial Year
CSR - Corporate Social Responsibility

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Executive Summary

Engaging consumer with different brands available for them is crucial to sustain in FMCG
industry. It is comparatively easy to engage consumers living in urban areas. Print and
electronic media are widely used by FMCG firms to engage consumers with different brands.
But there are rural places where print and electronic media are not widely available. In
Bangladesh about 66% of total population still lives in rural areas. These large rural people
fall into the target consumer groups of different FMCG firms. As a result it is important to
engage those rural consumers with different brands available for them. This report
emphasizes on how Unilever Bangladesh Ltd engages its rural consumers and what better can
be done in this regard.

Unilever Bangladesh Ltd is one of the leading FMCG firms in Bangladesh .So far it has
offered twenty brands in Bangladesh. Rural people constitute a huge portion of target
consumer groups of Unilever Bangladesh Ltd. It has a long history of consumer engagement.
Usually large scale interactions are conducted to engage consumers. But large scale
interactions like TV advertisement, newspaper advertisement do not reach to rural consumers
closely since rural consumers often do not get access to those print and electronic media
widely. And so Unilever Bangladesh Ltd initiates different small scale interactions to engage
its rural consumers.

In order to engage rural consumers through small scale interactions, Unilever Bangladesh Ltd
runs different rural activation programs. Rural activation programs include but not limited to
haat activation, uthan activation, school activation, college activation etc. Engaging rural
consumers with different brands available for them is the main purpose of those rural
activation programs.

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Chapter One Introduction

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1.1 Title of the Report


The title of this report is Rural Consumers Engagement in Unilever Bangladesh Ltd through
small scale interactions.

1.2 Background of the Report


Engaging consumers is very crucial to sustain in any industry. It is bit easy to engage
consumers living in urban areas as urban people have more access to public media comparing
with rural people. But it is also important to engage consumers living in rural areas as they
constitute a huge numbers in Bangladesh. This report strives to seek the answer how to
engage rural consumers with different brands of Unilever Bangladesh Ltd. through small
scale interactions. As per the BBA program requirement, this report has been prepared after
completing an internship program at Brands Building Department of Unilever Bangladesh
Ltd.

1.3 Significance of the Report


Print and electronic media are widely used in reaching out to targeted customers. But in
places where targeted consumers exist but mass media is not widely available and consumers
are financially weak, how does a firm reach out to those targeted consumers through small
scale interactions?
Therefore this report presents the techniques practiced by Unilever Bangladesh Ltd for
engaging and exciting rural consumers through small interactions. This study also explores
typical small scale activities practiced in rural areas of Bangladesh that excite rural people. At
the end some recommendations have been provided for Unilever Bangladesh Ltd to leverage
those.

1.4 Objective of the Report


To make a study successful, it is very important to have few objectives. The objectives of
preparing this report are:
1. Finding out the practices in engaging rural people of Bangladesh through small scale
interactions
2. Investigating various small scale activities carried out by the activation team of
Unilever Bangladesh Ltd. to engage rural consumers
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3. Giving recommendations to Unilever Bangladesh Ltd on practices in engaging rural


consumers through small scale interactions.

1.5 Scope of the Report


The report does not cover activation programs of multiple FMCG firm, even though such
comparisons might be valuable, in order to allow more depth of understanding regarding rural
consumers engagement of Unilever Bangladesh Ltd through small scale interactions.
Additionally, structured interviews have not been used in order to minimize personal
obtrusiveness and influence on the report outcome. This report will address in detail the
different aspects Unilever Bangladesh Ltd in engaging rural consumers through small scale
interactions followed by recommendations for improving in this regard. Twenty brands of
Unilever Bangladesh have been observed for the investigation purpose.

1.6 Limitation of the Report


This report has been prepared to fetch the maximum outcome from internship program. But
this report has some limitations:

Since Unilever Bangladesh Ltd has not issued share publicly in Bangladesh, its
information on Brands Building Department are not widely available.
Some useful information cannot be expressed in this report for the sake of
confidentiality.
The author did not have access to all of the required information widely during the
internship as some information is restricted and confidential.

1.7 Structure of the Report


This report consists of the following chapters:
Chapter One: Introduces the report by proving title, background and significance of the
report along with the objectives, scope and limitations of the report.
Chapter Two: Reflects the comprehensive literature review related to rural consumers and
activities prevalent in engaging rural consumers of Bangladesh.
Chapter Three: Describes the methodology implemented in this study elaborating research
design, research questions, data collection, data analysis etc along with ethical stance.
Chapter Four: Presents the overview of Unilever Bangladesh Ltd. where the internship
program has been completed.
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Chapter Five: Reflects the internship experience along with project brief, duties and
responsibilities as an intern.
Chapter Six: Provides key findings and analysis from the completion of the internship
program at Brands Building Department of Unilever Bangladesh Ltd.
Chapter Seven: Includes a conclusion for this report. Besides, some recommendations have
been provided to Unilever Bangladesh Ltd in engaging rural consumers through small scale
interactions with their different brands along with a direction to future scope of working.

The structure of this report is presented below:

Chapter-1:
Introduction
Chapter-2: Literature
Review

Chapter-3:
Methodology

Chapter-4:
Organizational
Overview

Chapter-5: Internship
Experience
Chapter-6: Findings
and Analysis
Conclusion
Chapter-7:
Conclusion and
Recommendations

Figure 1 Structure of the Report

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Chapter Two

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Literature Review

2.1 Introduction
Above the line branding activities is a common way used by most firms to reach out to its
consumers.1 But above the line branding activities may not reach closely to each consumer
segment as consumers living in rural areas may not have access to those above the line
activities implemented by an FMCG firm. Therefore, small scale interaction is another way
firms are using to engage rural consumers.

2.2 Definition of Consumer


Generally a consumer is a person who purchases goods and services for personal use. The
consumer may be defined as the person who acts as an actor of the verb 'to consume'. From
the 14th century to the late 19th century, the verb 'to consume' in English was used negatively
meaning to destroy, to use up, to waste, to exhaust. But the word 'customer' has generally
been received in a more positive light. (Lang, Consumer Definition, 2006, 1995;)
Now, consumers are the locus of the modern society. In fact, Gabriel and Lang (1995)
defined the consumer as GOD. Consumers are said to dictate production, to fuel
innovation, to be creating new service sectors in advanced economies, to be driving modern
politics, to have it in their power to save the environment and protect the future of the planet.
Consumers embody a simple modern logic-the right to choose. (Williams, 1991,1976)

2.3 Rural Consumers in Bangladesh


Consumers living in the rural areas are the rural consumers. According to the data of World
Bank, 66% of total population of Bangladesh lives in rural areas. (The World Bank, 2011-15)
Most of the rural people are generally financially weak and do not have access to mass media
widely. International Fund for Agricultural Development (IFAD) in a report stated that at
least 45 million people in Bangladesh, almost one third of the population, live below the
poverty line, and a significant proportion of them live in extreme poverty. 2 The poverty rate
is highest in rural areas, at 36 per cent, compared with 28 per cent in urban centers. (IFAD,
2015)

1
2

Above The Line (ATL) refers to promotional activities done at macro level
IFAD stands for International Fund for Agricultural Development

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34%
Living in Rural Area
Living in Urban Area
66%

Figure 2 (% of Total Population)

2.4 Importance of Engaging Rural Consumers


The level of competition in the urban markets has intensified and is increasing tremendously.
It is also stated by many experts that the urban markets are almost saturated. Therefore,
penetration into rural markets is inevitable for sustained business growth. The rural markets
are relatively untapped and this provides better scope for growth. Moreover, the purchasing
power of rural consumers has increased significantly over the past decade.

Table 1 Average monthly household nominal income, expenditure and consumption of rural population in
Bangladesh taka (BDT)3

Survey Year
2015
2010
2005
1995
1985

Income (BDT)
6095
4816
3658
2413
463.73

Expenditure (BDT)
5319
4257
3473
2179
491.49

This table has been presented in a chart in Figure 3:


3

Source: Bangladesh Bureau of Statistics

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Consumption (BDT)
5165
3879
3426
2157
490.55

8000

6000
4000
2000
0
1985

1995
Income

2005
Expenditure

2010

2015

Consumption

Figure 3 Growth in average monthly household nominal income, expenditure and consumption of rural population
in Bangladesh taka (BDT)

The table and chart presented above shows a positive growth in average monthly household
nominal income, expenditure and consumption of rural population in Bangladesh Taka
(BDT).

This, in turn, has transformed the consumption pattern. The rural consumers are no longer
dependent only on traditional products. Today, the consumption basket of rural people is not
limited to agricultural and allied products. They are keen on buying modern products that can
augment their style of living. This can be understood from the average income and
consumption expenditure of rural household chart presented below

120

USD / Month

100
80
60

Consumption
Income

40
20
0
1985-86

1995-96

2000

2005

Figure 4 Average income and consumption expenditure of rural household 4

Source: Consumption in Rural Bangladesh: Households, Lifestyles, and Identities by Md. Motaher Hossain (Hossain)

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As a result it will be unwise not to engage these huge rural consumers. And so firms are
planning and executing different rural activation programs to engage and excite rural
consumers with their different brands. In fact engaging rural consumers is crucial to sustain
in FMCG industry.

2.5 Small Scale Interaction Practices in Rural Areas of Bangladesh


Rural people like to engage with activities that are exciting. This has evolved over the
centuries and encompasses the cultural diversity of several social groups of Bangladesh.
Typically magic shows, snake charming, village fair, jatra (local stage drama show) etc some
of the small scale interactions practiced in rural areas of Bangladesh that engage rural people.
Most of the activities are implemented to entertain people. At the same time, the entertainer
also earns his/her livelihood by entertaining rural people. Some of the small scale interaction
practices in rural areas of Bangladesh are discussed briefly:
Snake charming:
Snake charming is the practice of pretending to hypnotize a snake by playing an instrument
called pungi or bansuri. A typical performance may also include handling the snakes or
performing other seemingly dangerous acts, as well as other street performance staples, like
juggling and sleight of hand. This is a kind of activities that engage rural people.

Figure 5 Snake Charming

Magic Shows:
Very often different magicians visit to different rural areas and shows different types of
magic to entertain rural people. Rural people with excitement get together and enjoy magic
shows.
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Figure 6 Magic Shows

Village Fair:
Village fair is a very common scenario in all over the rural area of Bangladesh. Rural people
wait for this throughout the year. They get together and celebrate themselves in the fair. This
also paves the way to do business for some rural people.

Figure 7 Village Fair

2.6 Conceptual Framework


This study emphasizes on investigating the rural consumers engagement activities of
Unilever Bangladesh Ltd through small scale interactions and finding out better ways to do in
this regard. To meet the objectives of the research some factors have been considered.
Different factors include:

Types of Rural Activation

Implementation Process

Success Criteria

Issues

Improvement Techniques

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Types of Rural Activation

Rural
Consumers
Engagement

Implementation Process
Success Criteria
Issues
Improvement Techniques

Figure 8 Conceptual Framework

Analyzing the factors to investigate the rural consumers engagement activities of Unilever
Bangladesh Ltd can contribute to answer the research questions thus meeting the research
objectives rationally.

2.7 Summary of the Chapter


It is imperative for firms to engage consumers with their different brands. Lifestyle of urban
consumers and rural consumers is not same. In Bangladesh still now one third of total
population live in rural areas. Rural people constitute a major portion of consumers for any
FMCG firm in Bangladesh. And so it is important for firms to engage those huge portions of
rural consumers with different brands available for them. To engage rural consumers it is
important to understand what makes rural people excited. If consumers are excited to any
types of activities, it will become easier to promote different brands to them through those
exciting activities.

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Chapter Three Methodology

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3.1 Introduction
This Chapter discusses the methodology employed in this research in order to serve the
purpose of the study. It defines the type of research incorporated in this study along with
research design, research questions, population and sampling techniques, parameters and
measurement criteria, data collection, data analysis, data validation and ethical stance of this
research.

3. 2 Classification of the Research


The research incorporated in this study is to find out how Unilever Bangladesh Ltd is
engaging rural consumers with its different brands through small scale interactions and what
better can be done in this regard. So in this sense it is a descriptive research.

3.3 Research Design


The purpose of this study is to investigate the activities Unilever Bangladesh Ltd is
undertaking to engage its rural consumers and finding out better ways to do so. According to
the nature of the purpose of the study, this is a descriptive research. A constructivism
philosophical worldview is chosen in this study as this is a qualitative research. This
philosophy has been selected as the data used in this report like types of rural activation
program, techniques of implementing rural activation program and success criteria etc are
qualitative in nature.

3.4 Research Questions


This study has been conducted to answer some questions that serve the purpose of the study.
This study strives to answer the following questions:
Why to engage rural consumers through small scale interactions?
How to engage rural consumers through small scale interactions?
How the need of a small scale activation program is realized?
How a small scale activation program is implemented?
How the success of an activation program is measured?
What are issues in engaging rural consumers through small scale interactions?
What can be done further to engage rural consumers through small scale interactions
in a better way?

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3.5 Population and Sampling Techniques


This study strives to investigate the rural activation programs undertaken by Unilever
Bangladesh Ltd in order to engage its rural consumers through small scale interactions. So
far, Unilever Bangladesh Ltd has offered twenty brands. The target population in this study is
the twenty brands of Unilever Bangladesh Ltd. But not all of its brands have rural activation
programs. Only seven out of twenty brands of Unilever Bangladesh Ltd have rural activation
programs. These seven brands having rural activation programs were taken as sample. The
rural activation programs of those seven brands have been observed to serve the purpose of
the study.

3.6 Parameters and Measurement Criteria


It is imperative to identify some parameters in order to serve the purpose of the study. The
parameters identified in this study are presented below along with the measurement criteria:
Table 2 List of parameters and measurement criteria
Parameters
Types of Rural Activation

Reasons

Implementation Process
Third Party Information

Selection Criteria

Issues

Improvement Techniques

Measurement Criteria
This parameter has been used to identify the
small scale interactions Unilever Bangladesh
Ltd is undertaking to engage rural consumers
with its different brands
This parameter is used to identify the reasons
driving Unilever Bangladesh Ltd to engage
rural consumers through small scale
interactions
The execution of a rural activation program
has been identified through this parameter.
Information about the third parties involved
in implementing a rural activation program
on behalf of Unilever Bangladesh Ltd has
been addressed through this parameter.
This parameter has been used to identify the
factors considered while selecting a third
party that will implement a rural activation
program on behalf of Unilever Bangladesh
Ltd.
This parameter has been used to identify the
challenges Unilever Bangladesh Ltd is facing
in engaging rural consumers through small
scale interactions.
This parameter addresses the ways Unilever
Bangladesh can bring improvement in
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Brands Status

Success Criteria

engaging rural consumers through small scale


interactions.
This parameter has been used to identify the
brands of Unilever Bangladesh Ltd having
rural activation programs in order to engage
rural consumers through small scale
interaction.
The measurement of success of a rural
activation program has been identified
through this parameter.

3.7 Data Collection


In order to collect the data required to fulfill the purpose of the study, three months long
internship program has been completed at Unilever Bangladesh Limited to investigate rural
consumers engagement activities in Unilever Bangladesh Limited through small scale
interactions. The internship program was a mixture of both office works and field works.
Face to face to interviews with activation manager, brand executive have been taken to
collect the data on type of rural activations, success criteria of those activations, selection of
third party in implementing rural activations etc.
Video tapes on rural consumers engagement activities of Unilever Bangladesh Limited have
been collected from the line manager.
Some field works have been conducted to understand people engagement practices in order to
find out better ways to engage rural consumers through small scale interactions.
Besides, articles written by activation experts at UBL, companys internal data, companys
official website, brochures etc have also been used to collect the data in order to fulfill the
purpose of the study.

3.8 Data Analysis


Initially the raw data from depth discussions, interviews, office works and field works were
converted into meaningful information. Spreadsheet program (Microsoft Excel) has been
used to analyze the data in this study. The findings of the discussions, interviews, office
works and field works has been subsequently analyzed and the outcomes of those data
analyses have been displayed wherever appropriate with various types of graphical models
e.g. pie charts, bar charts and tables etc. Finally, subjective judgments have been used to offer
recommendations.

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3.9 Data Validation


The authenticity of the findings of a research depends on the validation of the data used in the
research. The data used in this study have been collected through face to face interviews with
activation manager, brand executives of Brands Building department of Unilever Bangladesh
Ltd. So the data are reliable. Besides necessary documents and video tapes on recent rural
activation programs of different brands of Unilever Bangladesh Ltd have been collected from
the line manager. In this sense the data are relevant and timely. Proper care has been taken in
each step of data collection and data analysis. Besides, the findings of this study represent
different rural consumers engagement activities practiced by Unilever Bangladesh Ltd
through small scale interaction and also provide the ways to do better in this regard which in
turn meet up the objectives of the study. This ensures the validity of this study.

3.10 Ethical Stance


All ethical matters related to the various steps of analysis has been followed and maintained
in this study with great care. No data has been presented in this report without showing those
to the line manager. Permissions were taken to access the required data. An organization has
limitations to provide its data because of confidentiality; this report has been prepared
considering all confidentiality issues.

3.11 Summary of the Chapter


A descriptive research has been incorporated in this study where constructivism philosophical
worldview has been chosen as data used in this report are qualitative in nature. Twenty
brands of Unilever Bangladesh Ltd is the target population where seven brands having rural
activation programs have been observed as sample.

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Chapter Four Organizational Overview

29

4.1 About Unilever


Unilever is one of the leading multinational Fast Moving Consumer Goods (FMCG)
companies in the world. It is an Anglo-Dutch multinational corporation that owns over 400
brands in foods, beverages, home care, and personal care products.
Unilever employs more than 247,000 people5. It has two parent companies: Unilever NV in
Rotterdam, Netherlands, and Unilever PLC in London, United Kingdom. Unilever N.V. has
its head office in Rotterdam, while Unilever PLC has its head office in the Unilever House in
London and its registered office in Port Sunlight, Wirral, Merseyside. (Unilever) Both the
companies have the same board of directors and effectively operate as a single business. The
company is widely listed on the worlds stock exchanges.
For better control and management and for reporting purposes, Unilever operations around
the world have been divided into three regions
i)
ii)
iii)

Western Europe,
Americas, and
Asia, Africa, Central & Eastern Europe (AAC).

Current CEO of Unilever is Paul Polman and Michael Treschow is appointed as Chairman of
Unilever.

4.1.1 History of Unilever


William Hesketh Lever founded Lever Brothers in 1885. Lever established soap factories
around the world. In 1917, he began to diversify into foods, fish, ice cream and canned foods
businesses. Unilever was created in 1930 by the amalgamation of the operations of British
soap maker Lever Brothers and Dutch margarine producer Margarine Unie, a merger as palm
oil was a major raw material for both margarines and soaps and could be imported more
efficiently in larger quantities.
In a history that now crosses three centuries, Unilever's success has been influenced by the
major events of the day economic boom, depression, world wars, changing consumer
lifestyles and advances in technology. And throughout they've created products that help
people get more out of life cutting the time spent on household chores, improving nutrition,
enabling people to enjoy food and take care of their homes, their clothes and themselves.
Through their timeline one can easily see how Unilevers brand portfolio has evolved. At
the beginning of the 21st century, Path to Growth strategy focused on global high5

Source: Mr.Ali Zulayed, Activation Manager, Brands Building, Unilever Bangladesh Ltd

30

potential brands and Vitality mission is taking them into a new phase of development
now. Unilever's corporate vision helping people to look good, feel good and get more out
of life shows how clearly the business understands 21st century-consumers and their
lives. But the spirit of this mission forms a thread that runs throughout their history.

Table 3 Timeline
19th century

Although Unilever wasn't formed until 1930;


the companies that joined forces to create the
business we know today were already well
established before the start of the 20th century.
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.
Tough economic conditions and the First World
War make trading difficult for everyone, so
many businesses form trade associations to
protect their shared interests.
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.
Unilever's first decade was not an easy ride. It
started with the Great Depression and ended
with the Second World War. But while the
business rationalizes operations, it also
continued to diversify.
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.
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.
As the world economy expands so does
Unilever and it sets about developing new
products, entering new markets and running a
highly ambitious acquisition program.
Hard economic conditions and high inflation
make the 70s a tough time for everyone, but
things are particularly difficult in the fastmoving consumer goods (FMCG) sector as the
big retailers start to flex their muscles.

1900s

1910s

1920s

1930s

1940s

1950s

1960s

1970s

31

1980s

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 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 decade starts with the launch of Path to
Growth, a five-year strategic plan, and in 2004
further sharpens its focus on the needs of 21st
century consumers with its Vitality mission.

1990s

The 21st Centuries

4.1.2 Unilever Today


Today Unilever has operating companies and factories on every continent and research labs
in every major country. The company employs approx. 247,000 people; it is the third largest
Foods/Home & Personal Care Company in the world. It is estimated that approximately 1 out
of 2 households in the world have at least 1 Unilever brand in their home. Globally, people
use Unilever products 160 million times a day and in 170 countries no other company
touches the lives of so many people in so many different ways. (Zulayed M. , BUILDING THE
CASE FOR LAUNCH OF DOMEX LIQUID TOILET CLEANER IN BANGLADESH, 2011)6

Unilever owns more than 400 brands as a result of various acquisitions; however, the
company focuses on what are called the "billion-dollar brands". These are the brands which
each achieve annual sales in excess of 1 billion. Unilever's top 25 brands account for more
than 70% of sales. The brands fall almost entirely into two categories: Food and Beverages,
and Home and Personal Care.
Unilever's main competitors globally include Procter & Gamble, Reckitt Benckiser, Henkel,
Kraft Foods, Nestl, LOreal, PepsiCo, Sara Lee and S.C. Johnson & Son.
4.1.3 Unilevers Corporate Purpose
Unilever meets every day needs for nutrition, hygiene and personal care with brands that help
people feel good, look good and get more out of life. Sustainability is at the heart of
Unilevers business, and through Unilevers brands, Unilever seeks to inspire people to take
small everyday actions that can add up to a big difference for the world.
Unilevers deep roots in local cultures and markets around the world give them strong
relationship with consumers and are the foundation for Unilevers future growth. Unilever
will bring its wealth of knowledge and international expertise to the service of local
consumers a truly multi-local multinational.
6

Mr.Ali Zulayed is the Activation Manager of Brands Building Department at Unilever Bangladesh Ltd

32

Unilevers long-term success requires a total commitment to exceptional standards of


performance and productivity, to working together effectively, and to a willingness to
embrace new ideas and learn continuously.
To succeed also requires, Unilever believe, the highest standards of corporate behaviour
towards everyone Unilever work with, the communities Unilever touch, and the environment
on which Unilever have an impact.
This is Unilevers road to sustainable, profitable growth, creating long-term value for
Unilevers shareholders, Unilevers people, and Unilevers business partners.

4.2 Unilever Bangladesh Ltd.


Unilever Bangladesh Limited is a Joint Venture of the Government of Bangladesh and
Unilever. Unilever holds 60.75 per cent and Government of Bangladesh holds 39.25 of the
share. (Ltd U. B.)
4.2.1 History of Unilever Bangladesh Ltd.
Unilever Bangladesh Limited started its journey in Bangladesh nearly 40 years back, with
brands like Vim and Lifebuoy. The company started out with local manufacturing facilities,
while reporting to regional business groups for innovations and business results. The
reporting region for Unilever Bangladesh (UBL) is Asia AMET (Africa, Middle East and
Turkey), and CEC (Central and Eastern Europe), with the regional headquarter being in
Singapore.
For the majority of its history in Bangladesh, Unilever Bangladesh Limited was known as
Lever Brothers Bangladesh Limited, and even today many consumers identify the company
under the Lever Brothers name. However, back in December 2004 Lever Brothers
Bangladesh Ltd changed its corporate identity to Unilever Bangladesh Limited in line with
the parent companys global identity. Previously, both the head offices and the factory were
located in Chittagong, but as of 2002 the corporate offices were shifted to Dhaka, whereas
production remained at Kalurghat Heavy Industrial Area in Chittagong.
Over the years, the company has consolidated its strength in the FMCG sector, where it is
now the leading consumer products manufacturer in the country. Over the last four decades,
Unilever Bangladesh (UBL) has been constantly bringing new and world-class products for
the Bangladeshi people to remove the daily drudgery of life, leading the market in all but one
of the seven categories it operates in.

33

Today the company is a part of the lives of the people of this country, with over 90% of the
households using one or more of UBL products. The companys portfolio of mega brands
includes Wheel, Lux, Lifebuoy, Fair & Lovely, Ponds', Close Up, Sunsilk, and Brooke Bond
Taaza among others. While many of its brands are big international names, the product mix
are developed locally, based on a deep understanding of local culture and markets, a strength
shared across Unilever.
4.2.2 Unilever Bangladesh Ltd. at a Glance
Vision:
Unilevers vision is to make cleanliness a commonplace; to lessen work for women; to foster
health and contribute to personal attractiveness, in order that life may be more enjoyable and
rewarding for the people who use the products.
Mission:
Unilever's mission is to add Vitality to life, to meet everyday needs for nutrition, hygiene and
personal care with brands that help people feel good, look good and get more out of life.
Operations:
Home and Personal Care, Foods
Constitution:
Unilever - 60.75% shares, Government of Bangladesh - 39.25%
Product categories:
Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Color
Cosmetics, Deodorant, Tea based Beverages.

Brands:
Wheel, Rin, Surf Excel, Vim, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Pepsodent,
Sunsilk,Tresemme, Lipton Taaza, Clear, Vim, Surf Excel, Rexona, Dove, Vaseline & Lakm.
Manufacturing facilities:
The company has a soap manufacturing factory and a personal products factory located in
Chittagong. Besides these, there is a tea packaging operation in Chittagong and seven
manufacturing units in Dhaka and Chittagong, which are owned and run by third parties
exclusively dedicated to Unilever Bangladesh.
34

Employees:
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 there are significant numbers of Bangladeshis working abroad in other
Unilever companies as expatriates.

4.2.3 Brand Portfolio


The product range of Unilever Bangladesh Ltd can be divided into two broad divisions
Home & Personal Care (HPC), and Foods. The detailed breakdown of brands by categories is
given below.
Personal care products like skin care and hair care contribute high in terms of margin;
whereas categories like fabric wash and skin cleansing make the highest volume contribution.

Table 4 Brand Portfolio of Ubl

HPC

Category
Fabric Wash

Brands
Wheel
Rin
Surf Excel
Vim
Lux
Lifebuoy
Dove
Fair & Lovely
Ponds
Dove
Vaseline
Axe
Rexona
Sunsilk
Clear
Dove
Tresemme
Close Up
Pepsodent
Brooke Bond Taaza
Knorr
Pure-it

Household Care
Skin Cleansing

Skin Care

Deodorant
Hair Care

Oral Care
Foods
and
Water

Tea-based Beverages
Savoury
Water

35

4.2.4 Corporate Social Responsibility

UBL believes in being a good corporate citizen and is fully aware of its responsibilities
towards the society it operates in. The key areas of focus for CSR activities are Health,
Education, and Womens Empowerment. Some of the initiatives of the company are given
below.
Table 5 Corporate Social Responsibility

SECTOR

INITIATIVE NAME

Health

Lifebuoy Friendship Hospital


Chittagong Ma O Shishu General Hospital
Kalurghat Community Work
Pepsodent Dentibus
Dental Awareness Programme
Health Awareness Programme

Education

IT Scholarships for women


SKSS School for slum children
Chevening Scholarship

Womens Empowerment

FAL Foundation
Asian University for Women

4.2.5 Organizational Structure


The present Chairman & Managing Director of UBL is Mr.Kamran Bakr. There are six
Management Committee members in charge of the six departments
Brand Building (BB),
Customer Marketing (CM),
Customer Development (CD),
Supply Chain (SC),
Finance and
Human Resource (HR)

36

Chairman & Managing


Director

Director

Director

Director

Director

Director

Director

Brands &
Development

Customer
Development

Customer
Marketing

Supply Chain

Finance

Human
Resources

Figure 9 Organizational Structure

4.2.6 Brands Building in Unilever Bangladesh Ltd


The Brands Building department is responsible for nurturing a brand towards market
leadership and offering consumers with innovation and novelty in brands. With a deep
consumer insight, the Brand Managers look after the brands on a daily basis: planning and
organizing activities that boost their image and increase their exposure. The Packaging
Development Manager works closely with the Brands team to ensure alignment of the Brand
Essence on the packaging communications.
Bangladesh still remains a Brand Building country while Development generally takes place
at regional level. Brand Developing countries are responsible for the brand category strategy,
identifying new consumer and technology opportunities, product formulation and packaging
design and communication strategy. The critical role of Brand Building is to lead the specific
country category and brand operations team to create, execute and evaluate the insight-led
Category Building Plan and Brand Marketing Plans created by Brand Development.
Development at local levels takes place in the form of packaging innovations and minor
product modifications to fit local consumer needs and production methods.
The Brand Building department consists of the core Brands team as well as its three
supporting functions
a) Consumer and Market Insight (CMI),
b) Media, and
c) Activation.
Marketing information is crucial for UBL and the company decisions are based to a large
extent on the accuracy and timeliness of such information. Consumer and Market Insight
(CMI) team ensure that data are collected cost effectively to provide consumer information to
aid the company to attain a competitive advantage. This helps to achieve a proactive
understanding of the Bangladeshi consumer. The CMI team carries out various market and

37

consumer research through external research agencies such as Sirius and AC Nielson and also
coordinates with regional CMI team to gather category research done globally.
The responsibility of the media team is to buy media space, settle the different media
packages for each brand and coordinate various partnerships and events with media partners.
Brand activation is the core marketing process through which a brand is brought to life
through a variety of brand experiences. The activation team builds a brand by creating a
physical or emotional space in the consumers lives that enables the brand to interact in a
meaningful way. These activation programmes drive purchase and preference by building
consistent, long term relationships with consumers.
Rural Consumers Engagement activities in Unilever Bangladesh Limited are conducted by
the activation team of brands building department. The Organogram of brand activation team
of Unilever Bangladesh Limited team can be presented below:

Activation Manager
Brand Building

Asst.Activation Manager
Brand Building

Brand ExecutiveActivation
Brand Building

Brand ExecutiveActivation

Brand ExecutiveActivation

Brand Building

Brand Building

Figure 10 Brand Activation Team

The Organogram of the Brands Building department of Unilever Bangladesh Limited is


provided below.

38

General
Manager, Brand
Building

Product Group
Manager Home
Care

Product Group
Manager
Skin Care

Management
Trainee, Home
Care

Brand Manager,
Fair & Lovely

Management
Trainee, Surf
Excel

Brand Manager,
Pond's

Management Trainee,
Household Care

Brand Manager,
Deodorants

Senior Brand
Manager
Oral Care

Management
Trainee,
Pepsodent

Senior Brand
Manager
Skin Cleansing

Brand Manager,
Lux

Business
Manager (Foods)

Senior Brand
Manager
Hair Care

Company
Activation
Manager

CMI Manager

Brand Manager,
Clear

Activation
Manager

Management
Trainee, Dove

Asst. Activation
Manager

Asst. Brand
Manager,
Vaseline & Dove

Figure 11 Organogram of Brand Building Department

Source: Mr.Ali Zulayed, Activation Manager, Brands Building, Unilever Bangladesh Ltd

39

CMI Officer

Media Manager

Asst. Media
Manager

Senior Brand
Manager, Foods

Asst. Brand
Manager, Foods

Management
Trainee, Tea
(mod)

Chapter Five Internship Experience

40

5.1 Project Brief


Reaching out every segment of consumer groups is crucial to sustain in FMCG industry.
It is comparatively easy to reach out to consumers living in urban areas. But it is also
important to reach out to those consumers who are living in rural areas and are financially
weak. Reaching out to those rural consumers is possible through direct and indirect
interactions. But large scale interactions may not engage rural consumers closely. Here
comes the importance of small scale interactions with rural consumers. The purpose of
this internship program was to find out how does an FMCG firm like Unilever
Bangladesh Ltd reach out to rural consumers through small scale interactions and what
better can be done in this regard.

5.2 Job Description


In order to fulfill the purpose of the study, the author was assigned at Brands Building
Department of Unilever Bangladesh Limited. The internship program was supervised at
Unilever Bangladesh Limited by Mr.Ali Zulayed, Activation Manager, Brand Building,
Unilever Bangladesh Ltd. The major duties and responsibilities were:

Monitoring records of rural activation campaigns related documents (Pepsodent


Super Dentist, Wheel Activation etc)
Preparing any new documents based on different rural activation campaigns
related news
Making Apps interfaces for some activation campaigns (the author prepared apps
interface for Surf Excel 1 Scoop Challenge and Pepsodent Super Dentist
campaign.)
Visiting different markets and collecting data as instructed by the line manager
Conducting some field works and making videos to investigate rural activation
campaigns.
Communicating with different parties involved with activation campaigns of
Unilever Bangladesh Limited.

The author performed some other tasks as well in order to assist the activation team of
Unilever Bangladesh Limited.

41

5.3 Different Aspects of Job Performance


The author monitored and prepared new database on Microsoft excel for keeping the
records of different rural activation campaigns of Unilever Bangladesh Ltd that has
helped in improving proficiency in Microsoft excel a lot.
Conducting field works and making videos on different activation programs was helpful
in fulfilling the purpose of the study. Besides, that gave a real life experience on how to
engage and excite consumers through activations.
During the internship program, the author gained the experience of working with
multinational company managers which will be helpful in future for sure. Communicating
with other departments managers helped the author to increase communication skills in a
corporate environment.
During the internship program, the author had to communicate with different parties
involved with activation campaigns of Unilever Bangladesh Limited which has helped the
author in improving negotiation and communications skills. This was also helpful in
understanding the implementation of an activation campaign.

42

Findings and Analysis

Chapter Six

43

6.1 Reasons behind Engaging Rural Consumers through Small Scale Interactions
According to the data of World Bank, 66% of total population of Bangladesh lives in rural
areas. (The World Bank, 2011-15). As a result the number of rural consumers for
Unilever Bangladesh Ltd is very imperative. It will be unwise to ignore that huge portion
of rural consumers. To sustain in FMCG industry, Unilever Bangladesh Ltd runs different
programs to engage those rural consumers with their different brands. Even it often
customizes the attributes of its brands according to the need of rural consumers. But this
is not the sole thing the firm is doing to make the brands accessible to rural consumers.
Like other FMCG firms, Unilever Bangladesh Ltd usually uses print and electronic media
to create awareness among rural consumers about different brands suitable for them. But
mass media may not reach to rural consumers closely. Again there are many rural areas
where mass media is not widely available .As a result, it is crucial for Unilever
Bangladesh Ltd to reach out to rural consumers closely in order to sustain in the industry.
Here comes the importance of small scale interactions.

Educating
Rural
Consumers

Growing
Positive
Habit among
Rural
Consumers

Understanding
Rural
Consumers
Behaviour
Reasons

Bringing
Positive
Changes to
Rural Areas

Reaching
Rural
Consumers
Closely

Figure 12 Reasons behind Engaging Rural Consumers through Small Scale Interactions

Engaging rural consumers through small scale interactions allow the firm to reach out to
rural consumers and understand them closely that enable the firm to figure out changes in
rural consumers tastes, preferences and patterns etc. Thus the firm can adapt their
different brands according to the need of rural consumers through running small scale
interactions into rural areas.
44

The importance of engaging rural consumers through small scale interactions for Unilever
Bangladesh Ltd is summarized as follows:

Educating Consumers to grow positive habit

Bringing positive social change

Reaching out to rural consumers closely

Facilitating personal interaction with consumers

Understanding changes in rural consumers tastes and preferences etc.

Adapting to different brands according to the need of rural consumers if


necessary.

Reaching out to those rural areas where mass media is not widely available

For example: In Pepsodent school programs, rural school going children are taught how to
brush teeth properly. This helps the rural school going children to develop a habit of
brushing teeth twice in a day which eventually grow a positive habit among rural school
going children.

Figure 13 Pepsodent School Activation8

Again in Lifebuoy School of 5 program school going children are taught the importance
of washing hands properly. This results in bringing positive social change.

Source: Arman Tahaboor, Brand Executive-Activation, Brands Building, Unilever Bangladesh Ltd.

45

Figure 14 lifebuoy School of 5 Activation 9

6.2 Types of Activations Unilever Bangladesh Ltd Runs to Engage Rural Consumers
According to Mr.Ali Zulayed, Activation Manager, Unilever Bangladesh Ltd We have a
long history of engaging rural consumers through small scale interactions. (Ali Zulayed,
2016)To engage rural consumers with different brands, Unilever Bangladesh Ltd runs
different rural activation programs into different rural areas. Different types of rural
activation programs include:

Uthan
Activation
Haat
Activation

School
Activation

Types of Rural
Activation

Institutional
Action

Door to
Door
Selling

College
Activation

Figure 15 Types of Activation

Source: Asiatic Experiential Marketing Ltd (Ltd A. E.)

46

Shop
Signboard

These are discussed below:

6.2.1 Haat Activation


In haat activation, the third party of Unilever Bangladesh Ltd goes to different haats in
rural areas and communicates with consumers to promote different brands of Unilever
Bangladesh Ltd. They use a systemic method to engage rural consumers there. In this type
of activation programs, the third party of Unilever Bangladesh Ltd visits different haats in
rural areas and creates excitement at the haat to engage rural consumers there. Once the
consumers are engaged, the representatives of the third party promote different brands of
Unilever Bangladesh Ltd. For example: Pepsodent has a haat activation where the third
party of Pepsodent brand goes to different haats and promotes Pepsodent brand there.
Rural male consumers are usually engaged by haat activation. (Mr.Arman Tahaboor,
2016)

6.2.2 Uthan Activation


In Uthan Activation, the third party of Unilever Bangladesh Ltd selects and goes to
different selected Uthans (yards) to engage rural consumers in a collective way. They
communicate with consumers to understand their needs and state how different products
of Unilever Bangladesh Ltd can fulfill their need. For example, Wheel has an uthan
activation program where the third party of Wheel brand goes to different uthans and
promotes wheel brand there. Rural female consumers are usually engaged by uthan
activation (Tahaboor, 2016)

6.2.3 School Activation


Rural children also lie into the consumer segment of Unilever Bangladesh Ltd. The firm
has different brands to offer to rural children. And so, the firm runs activation programs in
rural schools to create awareness about different brands of Unilever Bangladesh Ltd
among rural school going children. For example: Lifebuoy has school activation programs
where the representatives of the third party of Unilever Bangladesh Ltd teach rural school
going children about the importance of washing hands properly and promote how
Lifebuoy can help them in this regard.

6.2.4 Institutional Action


There are many organizations who are working to improve the lifestyle of rural people.
Unilever Bangladesh Ltd sometimes offers sponsorship to those organizations to be a
partner of rural development and thus promote its different brands. Besides, Unilever
Bangladesh Ltd also initiates different programs to promote social development. For
47

example, Fair & Lovely Foundation was instituted as part of Fair & Lovelys brand
philosophy of empowering women to give them the confidence and self-belief to pursue
their dreams. (Foundation)

6.2.5 Shop Signboard


There are many retail stores throughout the rural areas of Bangladesh. Unilever
Bangladesh provides different types of support to those retailers so that they can continue
their business. For example: Unilever Bangladesh Ltd supports new retailers to decorate
their store. In return, the retailers allow Unilever Bangladesh Ltd to promote its brands
through the store.

6.3 Running a Rural Activation Program


Currently Unilever Bangladesh Ltd has 20 core brands. For each core brand, there is a
brand manager. Each brand manager along with his/her team looks after the respective
brand. So, it is the responsibility of a brand manager to identify whether a rural activation
is required for his/her brand or not. If a brand manager realizes that his/her brand requires
rural activation program, the brand manager briefs this issue to the activation team of
Unilever Bangladesh Ltd. The activation team with the help of a third party (agency) runs
the activation program for a brand after receiving proposal and brief from the brand
manager.

6.4 Realizing the Need of a Rural Activation Program


As discussed earlier, the brand manager of a particular brand is responsible for realizing
the need of a rural activation program for his/her brand. The brand managers of Unilever
Bangladesh Ltd collect information about the current scenario of their brands from
different third party (research firms).Some are:
Table 6 Third Parties of Unilever Bangladesh Ltd

Name of the Third Party (Research


Firms)
AC Nielson
Firefly Millward Brown
Sirius
Mindshare

Functions
It provides Unilever Bangladesh
information about retail audit.
It provides Unilever Bangladesh
information about dynamic tracking
It provides Unilever Bangladesh
information about consumer panel
It provides Unilever Bangladesh
information about media planning.
48

Ltd
Ltd
Ltd
Ltd

Collecting information about the current scenario of a brand from different third party, the
respective brand managers analyzes and explores the issues .If a brand manager identifies
that his/her brand is performing well in all of the divisions in the country except some
particular divisions, he/she along with his/her team explores the issues and find out the
reasons. If the brand manager thinks that the issues can be solved through rural activation
rather than going for a large scale interaction, he/she briefs this to the activation team.
After receiving the brief and proposal from the brand manager, the activation team starts
planning to run rural activation campaign.

6.5 Implementing a Rural Activation Program


As discussed earlier, the brand manager is responsible for realizing the need of an
activation campaign. Once the need of a rural activation program is realized, the brand
manager communicates the issue with activation team. The activation team, after
receiving the brief and proposal from brand manager, start taking initiatives to run the
rural activation program for a particular brand.
Activation team is basically responsible for planning and implementing a rural activation
campaign for a particular brand. Initially the activation team brainstorms the issue, brief
and proposal they have received from brand manager. Then they start recruiting a third
party (agency) who will implement the rural activation program. The third party (agency)
on behalf of the activation team executes the activation program for a particular brand.
Activation team monitors the performance of the agency.
The third party is subject to give update to the activation team at a regular basis in a daily
report form till the end of the activation program. Activation team also measures the
performance of the third party (agency) and gives feedback to their daily activities till the
end of the activation program.

Figure 16 Implementation Process of a Rural Activation Program

49

6.6 Selection of a Third Party (Agency)

It is the responsibility of activation team to recruit and monitor a third party (agency) in
order to execute an activation program in a rural area. There are many agencies in
Bangladesh who execute activation program on behalf of other firms. Some are good at
executing activation program in urban areas and some are good at executing activation
program at rural areas.
The activation team of Unilever Bangladesh Ltd initially invites 3-4 agencies to sit for a
meeting. The activation team briefs the issue in front of each agency along with an
explanation about their expectation from activation program in a particular rural area for a
particular brand. Each agency, after receiving the brief form the activation team,
brainstorm the issue and start planning to execute the activation program. Later, each
third party presents their ideas in front of the activation team about how they will execute
the activation program.
The activation team of Unilever Bangladesh Ltd thinks over the ideas and selects the third
party that makes the most reasonable presentation in terms of executing the rural
activation program in a particular rural area for a particular brand. The activation team is
responsible for negotiating with third party on their work plan, budget, and timeline etc.
Finally the third party, after getting selected, starts executing the rural activation program
on behalf of the activation team in a particular rural area for a particular brand of Unilever
Bangladesh Ltd. (Zulayed M. , Third Party Selection, 2016)

6.7 Measuring the Success of a Rural Activation Program

As earlier discussed, brand manager of a particular brand gives proposal to the activation
team of Unilever Bangladesh Ltd to run an activation program for the brand in a
particular area. In the proposal, the brand manager clarifies:
the contexts of the activation program to be run
his/her expectations from the activation
the reasons of this activation program
budget of the activation program
success criteria of the activation program
Now, the success of a rural activation program depends on whether the activation
program meets up the success criteria of the activation brief or not.
According to Mr.Ali Zulayed, Activation Manager, Unilever Bangladesh Ltd, there are
some other ways to measure the success of an activation program:
50

6.7.1 Penetration/Consumption Change


Brand managers can get the information about the penetration/consumption rate of their
brands from third party (research firms).If the brand manager realizes that his/her brand
needs an activation program in a particular area to increase penetration/consumption
rate10, he/she will propose the activation team to run an activation program. In that case
the success of the activation program will depend on whether it has increased the
penetration/consumption rate or not.11

6.7.2 Market Share Change


Brand mangers get to know information about the market share of their respective brands
from retail audit reports. Retail audit reports are usually collected from third party. An
activation program may be run to increase the market share of a particular brand in a
particular area. In that case, the success of an activation program depends on whether it
has increased the market share or not.

6.7.3 Sales Growth


An activation program may be run to increase the sales growth of a particular brand in a
particular area. In that case the success of the activation program will depend on whether
it has increased the sales growth or not.

6.7.4 Dipstick Study


It is a tool for market research usually applied in testing the market responses in various
areas of a brand. Its a survey that asks open-ended questions regarding different aspects
of a brand to respondents in a particular area. Dipstick study approach is used to measure
the success of an activation program.
Pre-Post
Dipstick Study

Intervention vs
Control
Figure 17 Methods of Dipstick Study

10

Consumption Rate: the average quantity of an item purchased, consumed, or expended during a given time interval and expressed in
an appropriate unit of measurement
11

The penetration rate (also called penetration, brand penetration, or market penetration as appropriate), is the percentage of the
relevant population that has purchased a given brand or category at least once in the time period under study

51

There are two methods of measuring success of an activation program through dipstick
study:

6.7.4.1 Pre-Post Method


In this method, a dipstick study is conducted for a particular brand in a particular area
before running an activation program there and the same dipstick study is conducted in
the same area for the same brand after running the activation program. The results of both
studies are compared and used to measure the success of that activation program.

6.7.4.2 Intervention vs Control


In this method two dipstick studies are conducted in two comparable geographies. One
study is conducted where a rural activation has happened. This is called intervention.
Another study is conducted where rural activation has not happened. This is called
control. The result of both studies are compared and used to measure the success of a
rural activation program.

6.8 Issues faced by Unilever Bangladesh Ltd


Unilever Bangladesh Limited is running different rural activation programs to engage
rural consumer with its different brands. But Unilever Bangladesh Ltd is facing some
challenges in implementing rural activation programs. (Zulayed A. , 2016)

6.8.1 No Immediate Result


Rural activations are conducted to engage rural people with different brands available for
them. But not necessarily rural people will start buying those brands just after the
implementation of a rural activation program. Again, in different rural school activation
programs, rural school going children are engaged with different brands but children will
not buy a product. Rather their parents will buy a product. But those children will have a
perception about that brand which may propel them to buy the product when they will
have the capability to buy at a future time. In this sense, rural activation programs do not
have any immediate results but it develops positive habit in rural people which lead them
to buy a product in future.

6.8.2 Changing Rural Scenario


Due to the rapid growth of technology, rural scenario in Bangladesh is changing
continuously. As a result the taste, preference and lifestyle of rural people are also
52

shifting. Activations that engaged rural people of Bangladesh 10 years ago are no longer
exciting and so fail to engage rural people. Therefore, it is a challenge to continuously
find out new ideas and ways for engaging rural people with different brands available for
them.

6.8.3 Cost per Consumer


In large scale interactions, huge number of consumers is engaged. But in small scale
interactions in a rural area, small number of rural consumers is engaged. As a result, cost
of implementing a rural activation program per consumer may become higher than large
scale interactions.

6.9 Rural Activation Status of Different Brands


Currently Unilever Bangladesh Ltd has twenty brands. Rural activation programs are not
run for all brands. Unilever Bangladesh Ltd runs rural activation programs for seven
brands out of twenty brands. These are presented below:
Table 7 Brands with Rural Activation Programs

Wheel
Rin
Lifebuoy
Vim
Fair & Lovely
Sunsilk
Pepsodent
Out of twenty brands of Unilever Bangladesh Ltd thirteen brands do not have any rural
activation programs. Brands that do not have any rural activation programs are presented
below:
Table 8 Brands without Rural Activation Programs

Surf Excel
Dove
Lux
Ponds
Vaseline
Axe
Rexona
Clear
Tresemme
Close Up
Broke Bond Taza
Knorr
Pure-it
53

The status of rural activation programs of different brands can be presented using a chart:

Brands Having Rural Activation

Brands without Rural Activation

35%
65%

Figure 18 Rural Activation Status of Different Brands

It is clearly seen that 65 % of total brands in Unilever Bangladesh Ltd do not have any
rural activation programs. The reasons behind this scenario are:
Urban people are the target consumers of those brands
Rural people may not afford to buy those brands
Those brands are comparatively costly
Urban penetration for those brands is still low and so Unilever Bangladesh Ltd is
still working to reach to urban target consumers of those brands

Brands having rural activation programs reach to rural target consumers through different
types of rural activation programs run by Unilever Bangladesh Ltd. Implementation of
different types of rural activation programs among the brands having rural activation
programs are presented below:
Haat Activation

Uthan Activation

School Activation

College Activation

Others

26%

32%

11%

21%
10%

Figure 19 Implementation of Different Types of Rural Activation Programs

Haat, Uthan and School activation are most common rural activation programs run by
Unilever Bangladesh Ltd for different brands having rural activation programs. Besides,
college activation, institutional action, shop signboard, door to door selling etc are also
implemented for some brands.

54

Chapter Seven Conclusion and

Recommendationsture
Work

55

7.1 Conclusion
Since rural population constitutes a huge number of total populations of Bangladesh, it is
imperative to engage those rural people with different brands in order to continue
business in FMCG industry.
Being one of the leading FMCG firms in Bangladesh, Unilever Bangladesh Ltd is
practicing different below the line activities and running different activation programs
throughout the country to reach out to rural consumers. This report presented those rural
consumers engagement activities of Unilever Bangladesh Ltd. Besides this some
recommendations have been provided to Unilever Bangladesh Ltd regarding what better
can be done to engage rural consumers of Bangladesh with different brands available for
them.
Unilever Bangladesh Ltd is running haat activation, uthan activation, school activation etc
to engage rural consumers. These are implemented by third parties. A better monitoring
and evaluation system of the third party will ensure the authenticity of the implementation
of those rural activation programs. Since rural scenario of Bangladesh is changing,
Unilever Bangladesh Ltd can consider that issue while planning and designing a rural
activation program. Rural consumers can be engaged through running activities that
excite rural people.

7.2 Recommendations
Unilever Bangladesh Ltd is running several rural activation programs to engage rural
consumers through small scale interactions. It has good reputation in implementing rural
activations successfully. Still there are some scopes where Unilever Bangladesh Ltd can
bring improvements. This study provides some recommendations to Unilever Bangladesh
Ltd in engaging rural consumers through small scale interactions. The recommendations
have been provided after the completion of three months long internship program with the
activation team of Brands Building of Unilever Bangladesh Ltd.

Due to the rapid growth of technology, lifestyle of rural consumers of Bangladesh


is changing. Now rural people are getting the opportunity to access internet and
many social media sites. Unilever Bangladesh Ltd can engage rural consumers
while running different activation programs through giving wifi facility on the
spot.

The report presented that still now rural people organize village fair where they
get together and enjoy. Unilever Bangladesh Ltd can sponsor some of those
villages fair and thus can promote its different brands to rural people.

56

Rural activation programs of Unilever Bangladesh Ltd are implemented by third


party. Unilever Bangladesh Ltd has a system to monitor and evaluate the
performance of that third party. Still it should give more importance on the
monitoring of the field work of those third parties. Unilever Bangladesh Ltd can
send some interns to the areas where rural activation program is being
implemented without informing the third party. This will help Unilever
Bangladesh Ltd to ensure that its rural activation programs are being implemented
by third party properly within due time.

Brand managers often leave the complete responsibility of a rural activation


campaign on the shoulders of the activation team. Therefore brand managers
should be involved with those activations with equal responsibilities.

7.3 Future Work Direction


This report presents how Unilever Bangladesh Ltd engages its rural consumers through
small scale interactions. The findings of this report indicate the need for further
investigation to measure the performance of those rural activation programs. This report
has some limitation to collect data from Unilever Bangladesh Ltd in different dimensions
like type of activation programs-wise performance, brand-wise performance, region-wise
performance and so on. This report can be used as base for understanding rural
consumers engagement activities of Unilever Bangladesh through small scale
interactions.

57

References

Ali Zulayed, A. M. (2016, March). Rural Activation in Unilever Bangladesh Ltd.

Foundation,
F.
a.
(n.d.).
Retrieved
March
http://www.fairandlovely.in/about-fair-and-lovely-foundation

Hossain, M. Consumption in Rural Bangladesh: Households, Lifestyles, and


Identities.

IFAD. (2015). Rural poverty in Bangladesh. IFAD.

Lang, G. a. (1995).

Lang, G. a. (2006, 1995;). Consumer Definition.

Ltd, A. E. (n.d.). Lifebouy School of 5. Retrieved from www.asiaticexp.com

Ltd, U. B. (n.d.). About Unilever Bangladesh Ltd. Retrieved February 20, 2016,
from https://www.unilever.com.bd/

Mr.Arman Tahaboor, B. E.-A. (2016, March). Haat Activation. (S. Wahid,


Interviewer)

Tahaboor, M. (2016, March). Uthan Activation.

The World Bank. (2011-15). Retrieved March 20, 2016, from Agriculture and
Rural Development: http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS

Unilever. (n.d.). About Unilever. Retrieved February 10, 2016, from


https://www.unilever.com/

Williams, F. a. (1991,1976).

Zulayed, A. (2016, February). Issues in implementing a rura activation.

Zulayed, M. (2011). BUILDING THE CASE FOR LAUNCH OF DOMEX LIQUID


TOILET CLEANER IN BANGLADESH.

Zulayed, M. (2016, March). Third Party Selection.

58

2016,

from

Appendices A: Unilever Logo and Design History

59

In 2005, Unilever decided to change their logo to represent their new theme of vitality.
The new logo was also planned to coincide with the 75th anniversary of the company.
The new logo tells the story of Unilever and vitality. It brings together 25 different icons
representing Unilever and its brands, the idea of vitality and the benefits Unilever brings
to consumers.
The icons are represented below.

Sun: The primary natural resource. All life begins with the sun- the ultimate
symbol vitality. It evokes Unilevers origin in port of sunlight & can represent a number
of Unilever brands.

DNA: The double helix. The generic blueprint of life and a symbol of
bioscience, it is a key to healthy life. The sun is the biggest ingredient of
life and DNA is the smallest.

Bee: Represent creation, pollination, hard works and bio diversity. Bees
symbolize both environmental challenges and opportunities.

Hand: A symbol of sensitivity, care and need. It represents both skin and touch.

Flower: Represent fragrance, when seen with the hand, it represents


moisturizing cream.

60

Hair: A symbol of beauty and looking good. Placed next to the flower, it
evokes cleanliness and fragrances; placed near the hand it suggests softness

Palm tree: A natural resource, it produces palm oil as well as many fruits.
Coconut and dates are also symbolize paralyze.

Spoon: A symbol of nutrition, tasting and cooking.

Bowl: A bowl of delicious smelling food. It can also represent a ready meal,
hot drinks or soup.

Spice & Flavors: Represent chili or fresh ingredients.

Fish: Represent food, sea or fresh water.

Sparkle: Clean, healthy and sparking with energy.

Bird: A symbol of freedom. It suggests relief from daily chores, getting more
out of life.

61

Recycle: Part of commitment to sustainability.


Lips: Represent beauty, looking good & taste
Ice-cream: A treat, pleasure or enjoyment.

Tea: A plant or an extract of a plant, such as tea, also a symbol of growing and
farming.

Particles: A reference to science bubbles and fizz.

Frozen: The plant is a symbol of freshness, the snowflake represent freezing, a


transformational symbol.

Wave: Symbolize cleanliness, freshness and vigorous icon. (With the clothes
icon)
Liquid: A reference to clean water and purity.

Container: Symbolizes packaging- a pot of cream associated with personal care.

Clothes: Represent fresh laundry and looking good.

Heart: A symbol of love, care and health

Sauce or Spread: Represent mixing of stirring. It suggest blending in flavors & adding
taste.

62

Appendices B: Brand Portfolio of Unilever Bangladesh Ltd.

63

Unilever has a portfolio of about 400 brands globally. However many of these are regionspecific that can only be found in certain countries. The numbers of UBLs existing brands are
20 which are categorized in different sections. In Bangladesh the company operates in the
following distinct product categories. These are outlined below:

Brooke Bond Taaza

Knorr

Home Care
o

Rin Power White

Surf Excel

Vim

Wheel

Personal Care
o

Axe

o Clear
o Closeup
o Tresemme
o Dove
o

Fair & Lovely


64

Lifebuoy

Lux

Pepsodent

Ponds

Rexona

Sunsilk

Vaseline

Water Purifier
o Pureit

65

Appendices C: Different Departments of Unilever Bangladesh Ltd

66

Unilever Bangladesh Limited has six departments to carry out all the organizational
functions. Respective directors head are head of all departments. These departments are:
1. Customer Development Department Headed by Customer Development Director
(CDD)
2. Customer Marketing Department Headed by Customer Marketing Director
3. Brands Building Department headed by the Brand Building Director
4. Supply Chain Department headed by the Supply Chain Director (SCD)
5. Finance Department headed by Finance Director (FD)
6. Human Resources Department headed by the Human Resources Director (HRD)
Brands Building Department:
The Brands team has been expanded to Brands Building, thus providing opportunity of
increased coordination between the marketing and Development Team. Insight into
consumer needs and aspirations is critical if new market opportunities are to be identified.
New market opportunities must be identified if they are looking for sustainable profitable
growth, keeping them miles ahead of their competitors. However it is also crucial to
exploit technology and developments to translate the found insight into tangible products
catering to the needs and aspirations of the consumers with speed. A deep understanding
of both consumers and technologies provides an essential foundation for successful
innovation. To ensure a successful innovation process at Unilever, Brands and
Development have been bought together. This will help their development team to have
closer contact with the consumer world, following the leads and cues of their aspirations
and thus innovating products tailored accordingly at a faster pace. Brands and
Development Department is further divided into some major areas. They include:

Home care

Personal care

Dental Service

Food

Tea export

Marketing research

67

Supply Chain Department:


The Supply Chain Director (SCD) who is in charge of planning, buying, manufacturing
and distributing heads Supply Chain Department. The supply chain process constitutes a
series of important activities ensuring smooth delivery to the consumers. Supply chain
process led to joining planning and buying with manufacturing. Joining distribution to the
chain, thus integrating both backward and forward linkages, further extends this chain. An
integrated supply chain will give them the advantage of acting with speed, enabling them
to keep up with pace of the ever changing business scenario. At present, it is divided into
the following functions:

Manufacturing

Engineering

Company Buying

Distribution

Quality Assurance

Planning

Finance and IT Department:


The Finance and IT departments are jointly headed by one Director. The main objectives
of this department are to serve all the division and departments of the companies, to
secure and safeguard company assets and interest, to ensure proper internal control within
the company and above all, to be cost effective in order to get optimum benefit for the
company while operating.
At present the major sub departments are:

Business system

Finance

Legal

68

Human Resources Department:


The Human Resources Director (HRD) currently heads this department. The major
functions of this department are:

Factory Personnel functions or Industrial Relations

Recruitment, Training and developments, labor welfare

Personnel Services and Security.

All these major personnel functions are integrated in the best possible way in Unilever
Bangladesh Limited which results in its higher productivity. Industrial relations or the
factory personnel functions are looked after by factory personnel manager, training and
development activities are supervised by Manager Human Resource Development,
Employee Welfare, and activities are monitored by Assistant Manager Labor welfare,
personnel services are looked after by the FPM along with the office services manager
and finally security officer is responsible for all the security services.

69

Customer Development Department:


Managing customers i.e. retailers, wholesalers, and distributors, is becoming critical day by day.
With the evolution of modern trade and aggressive local and international competition, role of
Customer Management has also been gradually shifting from traditional Sales to Trade
Marketing. Category Management, Space Management and In-store merchandising are
becoming more and more important. Exploring and developing new channels are becoming
critical to drive their business forward. With more and more sophistication, the role of Customer
Management will evolve further and the whole game will be turned into Relationship
Marketing. The customer marketing director (CMD) heads the Customer Marketing
Department. Reporting to him are the Sales Operation Manager, Regional Sales Managers and
Area Sales Managers. Company organized media is under the Sales Operation Manager.
Assistant Area managers report to the Regional Sales Managers. Territory Managers report to the
Assistant Area sales managers, Area Sales Managers and Regional Sales Managers, which differ
in different sales areas. The Customer Marketing Department, early called Sales Department, is
responsible for all company goods and maintains the following customer management strategy:

Strong distribution network

Widest distribution with seasonal operation in cost effectives areas.

Effective and focused company sales force

Major thrust in rural market

70

Appendices D: Glossary

71

Consumer: a person who purchases goods and services for personal use.
Customer: a person or organization that buys goods or services from a store or business.
Rural Area: From Bangladeshi Perspective, a rural area is an open swath of land that has few
homes or other buildings, and not very many people. In a rural area population density is very
low.
Rural Population: Rural population refers to people living in rural areas as defined by national
statistical offices. It is calculated as the difference between total population and urban population
Poor People: The definition of poor is having little money or belongings, or lacking something.
An example of poor is living below the poverty line. In case of Bangladesh, 26% of total
population here lives below the national poverty line of US $2 per day.
Brand Building: Brand building is an integral aspect of personal and business development. It
not only increases the voice and consumer awareness of a brand, but it also gives it an identity
and worth. The advent of participatory and interactive platforms has given many businesses the
chance to enhance brand awareness and equity.
Brand Activation: Brand activation is the seamless integration of all available communication
means in a creative platform in order to activate consumers.
Small Scale Interaction: Engaging with people closely but interactive way.
Above the Line Activities: Above The Line (ATL) refers to promotional activities done at
macro level. It is done at national, regional or at bigger territory level and mass audience is
covered in this type of promotion. A brand image is created about the company and its product.
Media such as television, cinema, radio, newspapers, and magazines are used to create an impact
about the company and its product. ATL communication is more of conventional in nature.
Below the Line Activities: Below The Line (BTL) communication is unconventional in nature,
done at micro level and forms part of non-media communication. Measures include direct
mailing, distribution of flyers, brochures, and usage of sponsorships, public relations, telemarketing and point of sale.
Penetration Rate: The penetration rate (also called penetration, brand penetration, or market
penetration as appropriate), is the percentage of the relevant population that has purchased a
given brand or category at least once in the time period under study.
Consumption Rate: The average quantity of an item purchased, consumed, or expended during
a given time interval and expressed in an appropriate unit of measurement

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Rural Consumers Engagement in Unilever Bangladesh Ltd through Small Scale Interactions

Shahriar Wahid

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