OBJECTIVESEvery company is formed to accomplish certain objectives. There is no company that has no goals. So the Unilever Bangladesh Limited has also targets before it. At the heart of the corporate purpose, which guides Unilever Bangladesh Limited. in their approach to doing business, is the drive to serve. The objectives of the Unilever are:

To meet the everyday needs of people everywhere – to anticipate the aspirations of consumers and customers and to respond creatively and competitively with branded products and services, which raise the quality of life.

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 maintain highest standards of corporate behavior towards employees, consumers and

the societies and world to acquire success. Company deals only in those products that are profitable. If there is any indication that any product is not profitable company analyzes the reasons and step are taken to overcome the reasons. Company introduces different marketing strategies if there are problems in marketing. Company also takes into consideration the welfare of the consumers. It takes into account the taste and habits of the consumer. It also works for the welfare and interest of Pakistan in the following terms:

o Contribution to GDPo Less dependence on import through local manufacturing

 o Foreign exchange earnings through exports

Introduction:

Unilever Bangladesh Limited is a very popular brand all over the world. Over the last four

decades, Unilever Bangladesh has been constantly bringing new and world-class products for the

Bangladeshi people to remove the daily drudgery of life.  Over 90% of the country’s households

use one or more of our products. Unilever has - 60.75% shares, Government of Bangladesh -

39.25%. Unilever's mission is to add Vitality to life. It meet everyday needs for nutrition,

hygiene and personal care with brands that help people feel good, look good and get more out of

life. Its deep roots in local cultures and markets around the world give us our strong relationship

with consumers and are the foundation for our future growth.

Unilever Operations in Bangladesh provide employment to over 10,000 people directly and

through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are

locals and we have equal number of Bangladeshis working abroad in other Unilever companies

as expatriates. It gives chance of employment 234,000 people in around 100 countries

worldwide.

Now this brand is trusted everywhere and, by listening to the people who buy its products and it

can be grown into one of the world's most successful consumer goods companies. In fact, 150

million times a day, someone somewhere chooses a Unilever product.

2 HISTORY OF UNILEVER

Lever Brothers was founded in 1885 by William Hesketh Lever. Lever established soap factories

around the world. In 1917, he began to diversify into foods, acquiring fish, ice cream and canned

foods businesses. In the Thirties, Unilever introduced improved technology to the business. The

business grew and new ventures were launched in Latin America. The entrepreneurial spirit of

the founders and their caring approach to their employees and their communities remain at the

heart of Unilever's business today.

Unilever was formed in 1930 when the Dutch margarine company Margarine Unie merged with

British soap maker Lever Brothers. Companies were competing for the same raw materials, both

were involved in large-scale marketing of household products and both used similar distribution

channels. Between them, they had operations in over 40 countries. Margarine Unie grew through

mergers with other margarine companies in the 1920s.

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 this timeline you'll see how UBL brand portfolio has evolved. At the beginning of the

21st century, path to Growth strategy focused us on global high-potential brands and vitality

mission is taking us into a new phase of development. More than ever, how brands are helping

people 'feel good, look good and get more out of life' – a sentiment close to Lord Leverhulme's

heart over a hundred years ago

Unilever Bangladesh established at Kaurghat in Chittagong in 1964 as a subsidiary of Unilever,

Unilever Bangladesh Ltd now offers 14 different brands of consumer products. These are

washing power, shampoo and toothpaste, laundry and bath soaps, skincare products.

Unilever Operations in Bangladesh provide employment to over 10,000 people directly and

through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are

locals and we have equal number of Bangladeshis working abroad in other Unilever companies

as expatriates. It gives chance of employment 234,000 people in around 100 countries

worldwide.

Now this brand is trusted everywhere and, by listening to the people who buy its products and it

can be grown into one of the world's most successful consumer goods companies. In fact, 150

million times a day, someone somewhere chooses a Unilever product.

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.

1900s: Unilever's founding companies produced products made of oils and fats, principally soap

and margarine. At the beginning of the 20th century their expansion nearly

outstrips the supply of raw materials.

1910s: Tough economic conditions and the First World War make trading difficult for everyone,

so many businesses form trade associations to protect their shared interests.

1920s: With businesses expanding fast, companies set up negotiations intending to stop others

producing the same types of products. But instead they agree to merge - and so

Unilever is created.

1930s: Unilever's first decade is no easy ride: it starts with the Great Depression and ends with

the Second World War. But while the business rationalizes operations, it also

continues to diversify.

1940s: Unilever's operations around the world begin to fragment, but the business continues to

expand further into the foods market and increase investment in research and

development.

1950s: Business booms as new technology and the European Economic Community lead to

rising standards of living in the West, while new markets open up in emerging

economies around the globe.

1960s: As the world economy expands so does Unilever and it sets about developing new

products, entering new markets and running a highly ambitious acquisition

program.

1970s: Hard economic conditions and high inflation make the 70s a tough time for everyone, but

things are particularly difficult in the fast-moving consumer goods (FMCG) sector

as the big retailers start to flex their muscles.

1980s: 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.

1990s: The business expands into Central and Eastern Europe and further sharpens its focus on

fewer product categories, leading to the sale or withdrawal of two-thirds of its

brands.

The 21st Centuries: 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

UNILEVER AT A GLANCE

Type of business: Fast Moving Consumer Goods Company with local manufacturing facilities, reporting to regional business groups for innovation and business results.

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, Personal Grooming, Tea based Beverages.

Brands: Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Taaza, Pepsodent, Clear, Vim, Surf Excel, Rexona, Dove, Vaseline & Lakme.

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 three manufacturing units in Dhaka, which are owned and run by third parties exclusively dedicated to Unilever Bangladesh.

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 they have equal number of Bangladeshis working abroad in other Unilever companies as

expatriates

2.3 UNILEVER LOGO DESIGN

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.

BRANDS

Unilever globally divides the Brands function into Brand Development and Brand Building.

UBL is responsible for only the Brand Building part, since brands are developed regionally.

The product range of Unilever can be divided into two broad divisions: Household and

Personal Care, and Foods. Detailed breakdown of the different product categories and

brands under them are shown below:

1. Fabric Wash

• WHEEL:

o Wheel Laundry Soap

o Wheel Washing Powder

o Wheel Power White

• SURF EXCEL

2. House Hold Care

• Vim

o Vim Scourer

o Vim Bar

o Vim Liquid

3. Skin Cleansing

• Lux

o Peach Milk

o Strawberry

o Crystal Shine

o Aqua Sparkle\

• Lifebuoy

o LB Regular

oLB Gold

o Care

o Nourish

o LB Liquid Hand wash:

o Total

o Care

• Dove:

• Dove Beauty Cream Bar

o Pink

o White

o Dove Body Wash

o Beauty Moisture

o Fresh Moist

4. Skin Care

• Fair and Lovely:

o FAIRNESS Cream

o Multivitamin

o Ayurvedic

o Skin Clarity

o FAL Menz Active

o FAL Body Fairness Milk

• Ponds

o Ponds Dream Flower Talc

o Ponds Vanishing Cream

o Ponds Cold cream

o Ponds Dream Flower Lotion

o Ponds Face wash

o Ponds Facial scrub

o Ponds Premium Range:

o Pond's Perfect Matte Oil Control Cleansing Foam

o Pond's WB Pinkish - White Glow Lightening Facial Foam

o Pond's WB Pinkish - White Glow Lightening Cream

o Pond's Perfect Result Multi Benefit Illuminating Cream

o Pond's Flawless White Deep Whitening Facial foam

o Pond's Beauty Pinkish - White Glow Lightening Facial Foam

o Pond's Age Miracle Daily Regenerating Facial Foam

o Pond's Age Miracle Dual Eye Therapy UV

o Pond's Age Miracle Overnight Repairing Cream

o Pond's Age Miracle Daily Resurfacing Cream

o Pond's Age Miracle Concentrated Resurfacing Cream

o Pond's Flawless White Light Infusing Under-Eye Cream

• Lakme:

o Sunscreen Lotion

o Winter Care Moisturizer

o Peach Milk Moisturizer

o Deep Pore Cleansing Milk

o Strawberry Silk Splash Face Wash

o MATTeffect Purifying Face Wash

o MATTeffect Icy Fresh Gel

o MATTeffect Mattifying Fluid

o

• Dove Skin:

o Dove Facial Foam

o Beauty Moisture

o Gentle Exfoliating

• Vaseline:

o Vaseline Petroleum Jelly

o Vaseline Lotion

o Cool and Fresh

o Total Moisture

5. Hair Care

• Clear:

o All Clear

o Complete Soft Care

o Anti Dandruff

o Hair Fall Defense

o Ice Cool

o Clear Menz:

o Hair Fall Defense

o Style Express

o Active Sports

o Clear Hair Oil

• Sunsilk

o Shampoo:

o Anti Dandruff

o Black

o Hair Fall Defense

o Thick and Long

o Soft and Smooth

o Conditioner

o Scalp Lotion

6. Oral Care

• Pepsodent

o Pepsodent Toothpaste

o Germicheck

o Herbal

o Pepsodent Toothpowder

o Germicheck

o Neem

• Close up

• Minty Chill

• Red Hot

• Close Up Crystal

• Close Up Milk Calcium

7. Foods

• Tazaa

o Danadar

o Tea Bag

• Knorr

o Chicken Noodle

o Cream of Chicken

o Hot and Sour

o Tomato

8. Deodorant

• Rexona

o Ice Cool

o Silk

o Power

o Ionic

• Axe

o Dark Temptation

o Vice

o Click

o Pulse

9. Color Cosmetics

o Lakme Color Cosmetics

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. Following is a brief description of some of the major categories and brands.

Hair Care

60% of the business comes from Tk. 1 sachet in the rural area. In the urban area the

scenario is complete reverse with 60% of the business coming from bottle and 40% coming

from sachet.

Penetration in the shampoo market is high but frequency of use or consumption is very low.

So, there is a huge scope for growth in the shampoo market if the frequency of use can be

increased.

Skin Care

Fair and Lovely is one of the biggest brands in Unilever Bangladesh. It was the pioneer in the

category and is still the market leader by large.

Most of pond’s product range is highly seasonal in nature. Talc and Vanishing cream have

sales only in summer months, while cold cream is strictly a winter product. This requires a

24

hugely delicate task of balancing the sales and volume projections to avoid unsold stock at

the end of the season or vice versa.

Pond’s Premium Range is a very new addition to the portfolio, and is targeted to the very

upscale market. It is still too new to add much contribution to the business- but is already

outperforming expectations

Lakme has the highest SKU list in the entire company portfolio, with Lakme SKU number

totaling the sum of all SKUs of all other brands combined together. 70% of the total Lakme

products are manufactured locally (creams and lotion are filled in locally, though packages

are imported) and about 30% is imported from India (mainly color cosmetics). Since its

introduction, Lakme has been seeing good growth, with especially the face-wash growing

phenomenally.

Vaseline has only been introduced this year. The lotion is currently it is being imported from

India, while petroleum jelly used to be imported. Now the petroleum jelly is going for local

production.

House Hold Care

The 3 Vim variants are in ascending order of sophistication. The company aims at moving

people up this in this list, i.e., convert non users to powder users, powder users to bar users,

and finally get them to use Vim liquid.

Foods

Lipton Taaza is one of the very few brands that are market followers to another brand. The

price premium charged by UBL is often the reason claimed behind it. It is mainly targeted to

urban areas, to more upscale consumers. It has tried to venture into the budget market, but

has not been able to do so successfully. Local brands had already established a too strong

foothold there already. Traders don’t associate Taaza with budget.

25

Knorr is only a new addition to UBL’s portfolio, currently being imported from Pakistan. It

has sold quite well, even better than expectations, and in future there are lots of potentials

for it, since the only competitor here is Maggi from Nestle. In other Unilever operating

companies Knorr has proved to be hugely successful.

Deodorant

Rexona is available in different forms: Roll on, Tubes, and Sachets – to drive penetration

through low income groups. Brand relevance is very low for deodorants in Bangladesh. So,

there is a huge potential if it can be developed properly.

Axe has just been launched in Unilever Bangladesh. It already has a very strong foothold in

Bangladesh due to product infiltration through the grey market. Now the challenge remains

in removing illegal importers from the market completely, and claim all of Axe sales for

Unilever Bangladesh. Ltd itself.

SWOT ANALYSIS

Strengths:

• Brands have the added appeal for international heritage and connection. Almost all

the brands are the top brands in their respective categories.

• Strong hold over the distributors

• Has competitive advantage in terms of consumer insight, on-shore manufacturing

experience, and efficient human resources.

• Offers the consumers value for money with world-renowned brands at an affordable

price.

• World wide supply chain network, which helps them to get raw material more in a

more cost effective manner.

• Has access to top notch process and systems designed for Unilever by the best

consultants

• Can implement tried and tested processes of innovation and process simplification

wit help for Unilever global assistance teams.

Weaknesses:

• Suffers from consistent supply chain issues- with demand in the market often exceeding supply.

In such situation, competitors find it very easy to make their ownfoothold.

• As a brand developing country, has less opportunity to impact a brand’s direction.

• Many global and regional decisions may not be in line with business’s well being at country

level.

• Bangladesh trade structure is a lot different than majority of other Unilever operating countries:

with modern trade being a very minuscule proportion of the business in Bangladesh, whereas

elsewhere it is often an important-if not majority of the business.

Opportunities:

• Has access to numerous global brands targeted to any and all target segments that can be

sourced anytime by Unilever Bangladesh Ltd. With no huge brand building costs. This is

something local competitors can never do.

• Huge potential for growth as the Bangladesh economy gathers momentum.

• In Bangladesh, penetration in personal products such as: Toothpaste, Shampoo, Deodorant is

very low. While this is a challenge, it provides a huge opportunity to capitalize on the untapped

market and limitless sales growth opportunities

Threats:

• Slow down of the economy in general can effect sales growths in the coming periods • New tax

policy can effect growth and penetration of brands aimed at the upscale

market

• Competitors are not fully compliant with government regulations. Most of them evade taxes

and therefore are able to offer the traders a higher margin.

• As a result of globalization, trade barriers are slowly being lifted. Foreign products therefore

are now entering the domestic market with greater ease.

• Grey market imports and selling of Unilever brands could hurt UBL’s business..

Challenges

Unilever - Porter's 5 Forces Analysis

Being a global company, Unilever has very strong competition not only from other strong

multinational companies like P&G, Kraft and Nestle but also from other regional retailers.

Porter’s 5 forces model is one of the most recognized frameworks for the analysis of competetive

environment of an organisation. Porter’s five forces model which determine the competitive

intensity and therefore attractiveness of the market where Unilever is operating . This model

describes the attributes of an attractive industry and thus suggests when opportunities will be

greater, and threats less, in these of industries.

Attractiveness in this context refers to the overall industry profitability and also reflects upon the

profitability of Unilever. An “unattractive” industry is one where the combination of forces acts

to drive down overall profitability. A very unattractive industry would be one approaching “pure

competition”, from the perspective of pure industrial economics theory.

This model is based on five important elements of an organisation and uses both internal as well

as external competences and threats faced by a business organisation. These five elements

including;

Buyer Power

Unilever’s buyers are scattered all around the world and they are in billions. In true sense they

are not so powerful to pull prices down. But on the other hand it is easier for the customers to

switch to a competitor. So Unilever has to be very precautious in deciding about prices and keep

the customers satisfied.

Competitive Rivalry

In consumer products business Unilever has a large number of competitors and these competitors

are in reality very strong. They range from small local corner shop retailer to big giants like

P&G, Kraft and Nestle. These competitors almost provide equally attractive products and

services and sometimes better. These competitors have the power to attract and influence the

customers by more attractive substitute, prices and marketing techniques.

  

Threat of Substitution

Continuous research and development in the consumer and household products has brought

about a revolution in the consumer market and today customers like to try something new and

better. This trend has reduced the customer loyalty and product lifecycle. Unilever is under

continuous threat of substitute products and its competitors are already spending huge sums on

R&D and new product development. Unilever has to be very adoptive and closer to its customers

so as to get what exactly its customers want.

Threat of New Entry

As Unilever operates in different geographical markets so threat of new entrants varies in

different markets. In well developed countries where big players like Unilever have a very strong

hold and brand image, it is very hard for a new entrant to enter the market because of higher cost

to set up a business. On the other hand in less developed markets, it is easier to enter as legal

requirements and capital needed is not as much as in a developed market. Unilever has its

presence almost in every market either through its subsidiaries, branches or franchises. But its

brand image is a strong barrier in the way of new entrants.

Supplier’s Power

 Unilever has a policy of local buying and local manufacturing. Which provides itself an edge to

brake power of its suppliers and make them weaker to negotiate at its own terms. Most of time

Unilever has blanket agreements with its suppliers to provide for a certain period of time at a

certain rate. This strategy help to prevent supplier’s from switching to other competitors and

charge higher rates. Also Unilever treat its supplier’s fairly so as to create more loyalty among

them like customers.

ConclusionOver the the last four decades, Unilever Bangladesh has been constantly bringing new and world-class products for the Bangladeshi people. Over 90% of the country’s households use one or more of our products. Manufacturer of leading brands, including Fair & Lovely and Lipton Tea. Our brands help people to look good, feel good and get more out of life. Celebrating life for over 40 years in Bangladesh and today, a company bringing world class consumer products to millions of people in the country we are Unilever Bangladesh. Unilever Bangladesh has been constantly bringing new and world-class products for the Bangladeshi people. Over 90% of the country’s households use one or more of Unilever's products. Unilever has an Innovation Management Process where every new idea goes through four different phases: 1. Idea: This is the stage where new product ideas and concepts are tested/evaluated 2. Feasibility: At this stage the product mix (formulation, packaging etc.) is locked 3. Capability: Communication campaign is developed and tested 4. Launch: The product is launched and monitored. So We can be said it is one of the largest company all over the world.

Referencing

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