Unilever Bangladesh has outsourced its distribution channels to third party distributors which allow them to distribute LUX in massive bulks amounting to around ten million pieces. Though Unilever Bangladesh gives its LUX customers a lot in terms of the product itself, it cannot provide a better pricing.
The report discusses the process of using market segmentation, target marketing, the product, pricing, promotional and distribution strategies and a competitive analysis. The company finds its strengths in leveraging the economies of scale arising from its breadth of operations as well as synergies between its many manufacturing facilities, which totaled locations around the world at last count.
As the company operates in the market with a huge number of products in different industries, we have decided to focus on one of their world wide successful brands, LUX. LUX is not a highly expensive but an affordable product. The main purpose of the report is to find what strategies the company uses to market its world famous beauty soap, LUX, in Bangladesh; the positive and negative aspects of those strategies.
A research carried out by Unilever Bangladesh reveals that urban rich people are more likely to buy imported and expensive products. The SEC divides the population in five segments starting from A to E, where A categorizes the highly educated and high income earners holders, and sequentially in descending order E categorizes the opposite.
Even in the current recessionary environment, it has managed to grow at a respectable pace though as we shall discuss latter, Unilever cannot afford to ignore the emerging threats from a wide range of global, regional, and local players.
Having said that, we conclude the article with a cautionary note of not taking the threat from the Asian FMCG majors lightly as they understand the continent better and at the same time are mastering the intricacies of the global marketplace. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit.
Some practices of the company have been criticized which means that Unilever has to ensure that it sustains and maintains its focus especially when the spotlight is on it. Operating in Bangladesh for over the last four decades the company is trying to significantly contribute towards the augmentation of the standard of living by bringing world class high quality products at the door step of their customers.
Section 3 analyzes which segment the company targets and why they target that specific segment. The only place where rival companies are progressing is in giving customers redemption offers. As mentioned earlier, Unilever operates in a market segment where local products and alternatives to its brands proliferate especially in the emerging markets and hence, it faces a threat from smaller and more nimble local upstarts who can provide more value for lesser money without the associated costs that global giants like Unilever incur.
Unilever has a distinct competitive advantage over its nearest competitor, Proctor and Gamble because of its flexible pricing and expertise in distribution channels that manage to reach the nook and the corner of the globe. Over the years, it has become one of the leading multinational companies in our country.
Research revealed that Bangladeshi customers are highly attracted to this sort of offers. The company does not use its own fleet of transport for distributing its product.
The other competitors are very competitive among themselves but they cannot put a intense competition with Unilever Bangladesh Ltd, as they have market share much less than Unilever Bangladesh Ltd.
Recommendation In this chapter the team would suggest some recommendations to Unilever Bangladesh Ltd. LUX falls under the category of toiletry product as a beauty soap.
That is why the company targets urban and sub urban upper middle and middle class people who are the second highest population of segment of the country. Lastly, the fifth chapter illuminates my recommendations.
In addition information was also collected from websites._opportunity:capitalize _strength:maintain unilever-bangladesh-ltd _user-generated About killarney10mile.com killarney10mile.com is a collaborative research and analysis website that combines the sum of the world's knowledge to produce the highest quality research reports for over 6, stocks, ETFs, mutual funds, currencies, and commodities.
SWOT Analysis of Unilever Introduction Unilever operates in nearly countries around the world and has been a traditional paragon of excellence and quality in the Fast Moving Consumer Goods sector.
Chapter 18 Case 9: Unilever Bangladesha The Appointment On February 1,Kamran Bakr replaced Rakesh Mohan as the chairman and managing director of Unilever Bangladesh Limited (UBL).
Bakr - Selection from Strategic Management from an Islamic Perspective: Text and Cases [Book].
External Environment Analysis Of Unilever In Bangladesh. CHAPTER TWO EXTERNAL ENVIRONMENT ANALYSIS At the end of this chapter, the student should be able to: 1.
Understand the processes for an environmentally conscious organization. 2. CHAPTER 1 1 Introduction Background of the Study: Successful human resource department makes it possible for the organization to acquire the number and types of people necessary to ensure the continued operation of the organization by the set the right.
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