CHAPTER ONE BACKGROUND OF THE STUDY
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%&% 'ntrd()tin The trade atmosphere today is changing more rapidly than ever before. It is characterized by increasing competition from both domestic and foreign companies, a brandish of mergers and acquisitions, and more sophisticated and demanding customers who have great expectations realted to their consumption experiences. Since services are intangible, heterogeneous, and inseperable, it is difficult to measure service quality objectively. So the companies have focus to so many different aspects in order to mae sure their sales. This report deals with meeting up the new challenges that !"# is facing to manage the selling environment. !"# has started so many projects to get a better positions in the maret. The objective of the study is to see mareting strategy and mreting mix of !"# soap.
%&* Signi+)an)e ! the St(dy This report is a requirement requirement of the program for $%& program. program. I have tried our level best to mae it as an excellent one. I use all latest data and information. The report can help as the indicator of the mareting strategy of the !"# soap and its mareting mix. It provides the true practice taing palce in the mareting industry, which plays an important role role for every every student student to meet the extreme extreme challenge challengess of the job maret. maret. It helps helps us in gathering nowledge on the modern practices of the mareting programs of !"# and its way to serve its customers. Its data comparison is based on the published information and further analysis.
%&, O-.e)ti/e ! the St(dy This report is an outcome of an analysis of mareting strategies and mareting mix used by "nilever %angladesh !td. The main purpose of the report is to find what strategies the company uses to maret its world famous beauty soap, !"#, in %angladesh' the positive and negative aspects of those strategies. The report further analyzes the position of "nilever %angladesh !td. in the toiletry industry in comparison to its competitors. The report discusses the process of using maret segmentation, target mareting, the product, pricing, promotional and distribution strategies and a competitive analysis.
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%&% 'ntrd()tin The trade atmosphere today is changing more rapidly than ever before. It is characterized by increasing competition from both domestic and foreign companies, a brandish of mergers and acquisitions, and more sophisticated and demanding customers who have great expectations realted to their consumption experiences. Since services are intangible, heterogeneous, and inseperable, it is difficult to measure service quality objectively. So the companies have focus to so many different aspects in order to mae sure their sales. This report deals with meeting up the new challenges that !"# is facing to manage the selling environment. !"# has started so many projects to get a better positions in the maret. The objective of the study is to see mareting strategy and mreting mix of !"# soap.
%&* Signi+)an)e ! the St(dy This report is a requirement requirement of the program for $%& program. program. I have tried our level best to mae it as an excellent one. I use all latest data and information. The report can help as the indicator of the mareting strategy of the !"# soap and its mareting mix. It provides the true practice taing palce in the mareting industry, which plays an important role role for every every student student to meet the extreme extreme challenge challengess of the job maret. maret. It helps helps us in gathering nowledge on the modern practices of the mareting programs of !"# and its way to serve its customers. Its data comparison is based on the published information and further analysis.
%&, O-.e)ti/e ! the St(dy This report is an outcome of an analysis of mareting strategies and mareting mix used by "nilever %angladesh !td. The main purpose of the report is to find what strategies the company uses to maret its world famous beauty soap, !"#, in %angladesh' the positive and negative aspects of those strategies. The report further analyzes the position of "nilever %angladesh !td. in the toiletry industry in comparison to its competitors. The report discusses the process of using maret segmentation, target mareting, the product, pricing, promotional and distribution strategies and a competitive analysis.
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%&0 Methd1gy ! the St(dy (or accessibility and availability of information I have chosen to wor on the strategies of "nilever %angladesh !td. &s the company operates in the maret with a huge number of products in different industries, I have decided to focus on one of their worldwide successful succ essful brands, !"#. $ost of the information used in this report re port is from primary primar y sources. The main source of information was the focus group discussion. In addition information was also collected from websites.
%&2 S)$e ! the St(dy It illustrates a study on mareting strategy and the mareting mix of !"# soap. This report will help us to acquire information about the beautification industry in %angladesh and systematically investigate the mareting strategy and the mareting mix of the !"# soap. This information will improve our nowdledge, which will positively impact our learning experience. This report provides us the opportunity to exchange ideas with our classmates and faculty fac ulty and learn about different techniques. It is necessary to stay current with new processes, ideas, and methods. %y doing this report I got the opportunity to explore the areas of research and bring the new information into my report.
%&3 "i4itatin5 The present study was not out of limitations. Some constraints are given below ) •
The main constraint of the study is inadequate access to information, which has
•
hampered the scope of analysis required for the study. It was unable to provide some formatted documents data for the study. *ue to time limitations, many of the aspects could not be discussed in the present
•
•
report. The customers were too busy to provide much time for interview. The customers couldn+t provide proper information about some aspects due to their
•
lac of nowledge nly few areas of -hittagong -ity have been considered for the study.
•
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CHAPTER T6O O7ER7'E6 OF THE PRODUCT
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*&% Pr+1e !"# is a global brand developed by "nilever. The range of products includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. !"# started as Sunlight (laes/ laundry soap in 0122 in 0234, it became the first mass maret toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements. &s of 3556, !"# revenue is estimated at 7 0 billion, with maret shares spread out to more than 055 countries across the globe. Today !"# is the maret leader in several countries 8aistan, %razil, India, Thailand, and South &frica. *eveloped by "nilever, !"# 9soap: is now headquartered in Singapore. !"# launched the world+s first mass maret beauty bar, made lie the costliest (rench soap./ Since then, !"# has been associated with over 455 of the world+s most glamorous actresses from ;ollywood lie
elly, to %ollywood ?oyalties such as &ishwarya ?ai, and >atrina >aif.
2.1.1 Origins and History The brand was founded by the !ever %rothers 9today nown as "nilever: in 0122. The name changed from Sunlight (laes/ to !"# in 0225, a !atin word for !ight/ and suggestive of !uxury/. !"# toilet soap was launched in the "nited States in 0236 and in the "nited >ingdom in 0231. Subsequently, !"# soap has been mareted in several forms, including hand wash, shower gel and cream bath soap.
2.1.2 Early Beginnings !"#+s early advertising campaigns aimed to educate users about its credentials as a laundry product and appeared in magazines such as !adies ;ome @ournal. %y the early 0235s, it was a hugely successful brand and in 0234, the !ever %rothers conducted a content that led them to a very interesting finding women were using !"# as toilet soap.
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2.1.3 Building Beauty Soap Credentials Introduced in the "nited States in 0234, !"# became the world+ s first mass maret toilet soap with the tagline made as fine as (rench Soap/. In the first 3 years of launch, !"# concentrated on building its beauty soap credentials. &dvertisements offered consumers beauty soap made in the (rench method/ at an affordable price, with
the promise
of
smooth sin.
$ade with fine texture, rich in fragrance, and
manufactured using a method created in (rance, the first !"# toilet soap was sold for 05 cents apiece.
2.1.4 1928–1940: 9 out o 10 Stars This era saw ey launches of !"# in the ">, India, &rgentina and Thailand. The brand concentrated on building its association with the increasingly popular movie world, focusing more on movie stars and their roles rather than on the product. In 0232, advertising featured 3A of the biggest female stars of the day , creating a huge impact among the movieloving target audience. This was followed by ;ollywood *irectors taling about the importance of smooth and youthful sin. This pioneered the trend of celebrity product endorsements. The series of print ads had stars taling about preserving youthful sin.
!"#
also
launched
campaigns featuring interviews with Stars and -lose "ps of Stars, bringing to life the B2 out of 05+ idea.
2.1.! 40s " !0s: #o$an%ing t&e Consu$er "sing movie star as role models, !"#+ s strategy was to build relevance by looing at beauty through the consumer + s eyes. Chile still retaining the star element, the focus shifted to the consumer and the role of the brand in her life. &dvertising commercials showed ordinary looing women with direct references to stars, such as *eanna *urbin. Marketing Strategy and The Marketing Mix ! "U# Sa$
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2.1.' '0s: #o$an%ing t&e Brand The A5+ s saw a shift in advertising to product stories and the romanticizing of brand through its sensorial D emotional/ dimensions. This was the era of Bthe film star feeling+ and the B=olden !"#+, featuring stars such as Sandra *ee, *iana ?igg and Samantha
2.1.( (0s: )i$ensionali*ing Beauty ?eflecting the shift in beauty trends in the E5s, the !"# stars stepped down from their pedestals and were portrayed as multifaceted women with natural, wholesome beauty that the ordinary consumer could relate and aspire to. The executions were more of Ba day in the life+ of the stars with focus on their Bnatural beauty+. Stars included %rigitte %ardot and Fatalie Cood.
2.1.8 80s: O+ning t&e Category Spa%e
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2.1.9 90s – Early 2000s: ,d-an%ed Sin Bene/ts In the 25s, !"# moved from generic beauty benefits to focus on specific benefits and transformation. $ore emphasis on functionality and variant associations with different sin types as well as mention of ingredients. The communication was far more regional specific and localized, using stars lie $alu $ader and *ebora %loch. This period launched product brand extensions Shower -ream and =els and !"# Super ?ich Shampoo in @apan and -hina.
2.1.10 2000s: Beyond o-ie Stars In early 3555, the focus shifted from specific sin benefits to a stronger emotional space. The brand provided the lin between the aspirational role models and real life with the campaign, B!"#+ brings out the star in you+. The benefit was now more than just beauty, it was also about the confidence that comes from beautiful sin. In 3556, !"# encouraged women to celebrate and indulge their femininity with the 8lay with %eauty/ philosophy , with stars lie &ishwarya ?ai. The brand also connected with consumers to tae a more Bactive+ stance on beauty . (rom 3551, building off the brand+ s root strengths, focus has shifted to beauty 9vs. (emininity:, appealing to consumers+ fantasies and aspirations. !"# believes that Bbeauty is a female instinct that shouldn+t be denied+ and showcases the pleasure that every woman enjoys from using her beauty , encapsulating that idea in a simple phraseG *eclare your beauty . Today, !"# products are manufactured at E0 locations with more than 3555 suppliers and associates providing the raw materials. It has ey marets in 8aistan, %razil, -hina, %angladesh and South &frica, and is a maret leader in India 9for soap bars:, 8aistan, %razil, Saudi &rabia 9for soap bars:, %angladesh, Thailand and Hietnam.
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*&* 7i5in8 Mi55in8 Ga15 and O-.e)ti/e5 !"# began its story in 0234 as the first mass mareted beauty soap. Fow sold in over 055 countries, it is the most recognizable soap brand in the world ) bringing a combination of fun, pleasure and comforts to women+ s beauty routines the world over. Since its start in 0234 as the first mass mareted beauty soap, !"# has made its way to over 055 countries across the globe and is now the most recognizable soap brand in the world. *uring this long journey , some of the world+ s most talented and beautiful women have become a part of !"#+ s history as brand ambassadors. !"# combines exquisite fragrances with the most exotic ingredients to give a truly unique bathing experience.
2.2.1 ision It is the vision of !"# to give women that million dollar feelings every time they use a !"# product, be it one of their fragrant beauty soaps or refreshing body washes. !"# believes beauty doesn+t have to be a chore and brings a combination of fun, pleasure and comfort to women+s beauty routines all over the world.
2.2.2 ission The mission of !"# is to embrace consumers+ new expectation, to maintain good governance,
product
quality and long experience of woring with communities. Their
vitality mission will focus brands on meeting consumer needs arising from the biggest issues around the world today ) ageing populations, urbanization, changing diets and lifestyles. They see growing consumer need forG & healthy lifestyle $ore variety, quality, taste and enjoyment Marketing Strategy and The Marketing Mix ! "U# Sa$
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Time, as an increasingly precious commodity ;elping people to feel good, loo good and get more out of life will enable us to meet these needs and expand our business.
2.2.3 oals The goals of !"# are •
To maintain strong science capability.
•
•
To manufacture high standard products.
•
8romoting products to the highest extent.
•
8roducing large volume to achieve production cost economies.
•
2.2.4 Oe%ti-es The objectives of !"# are
A19ay5 9rking 9ith integrity: -onducting operations with integrity and with respect for the many people, organizations and environments.
P5iti/e i4$a)t: !"# aim to mae a positive impact in many waysG through the brands, commercial operations and relationships, through voluntary contributions, and through the various other ways in which they engage with society .
Cntin((5 )44it4ent: They+re
also
environmental
committed impacts
to
and
continuously
improving
the
way
they
manage
the
are woring towards the longerterm goal of developing a
sustainable business.
Setting (t (r a5$iratin5: Their corporate objective sets out their aspirations in running business. It+ s underpinned by the code of %usiness 8rinciples which describes the operational standards that everyone at "nilever
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follows, wherever they are in the world. The code also supports their approach to governance and corporate responsibility .
6rking 9ith ther5: They want to wor with suppliers who have values similar to them and wor to the same standards as they do.
*&, "U# Range !"# 8each D -ream blends juicy peach and moisturizing cream extracts to give you velvety , soft sin. !"# (resh Splash is crafted with the icy freshness of cooling mint and the invigorating power of sea minerals to transform your sin from dull to vibrant in an instant. !"# Sandal D -ream uses extracts of alluring sandalwood and a unique consistency of moisturizing cream to give your sin a captivating and mesmerizing glow . !"# 8urple !otus D -ream is infused with fragrant moisturizing and beauty oils, leaving your sin sily smooth.
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CHAPTER THREE MARKET'NG STRATEGY OF "U# SOAP
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,&% En/irn4enta1 Ana1y5i5 5ES6 ,nalysis 8
3.1.1 5oliti%al 7a%tors •
8olitically there is no much of a problem for the !"# Soap and will create an impact
•
that will not affect our product. =overnment banned the import of tallow, a soap maing raw material 9which was requiring a very little processing to mae soap:. It then followed an incidence of adulteration of vanaspati by unscrupulous manufacture.
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3.1.2 E%ono$i% 7a%tors •
Soaps in %angladesh cost very high in %angladesh as compared to other countries lie Indonesia. This is primarily attributed to the high cost of imports due to high import
•
duties. Since %angladesh is now a CT member so that %angladesh will have to bring down the import duty rates to as much as 35J from K6J. &lso the excise rate at 0AJ forms
•
formidable portion of the cost. (or toilet soap, the average expenditure per user household for lowLincome households are T. K55, while itis T. 0555 for highLincome groups.
3.1.3 So%ial 7a%tors •
Cith the rising education and disposable income levels, the need for hygiene and
•
personal M sin care becomes important. 8remium soaps are thus targeted at the audience to change their habits by raising their
•
aspiration levels. (ragmented approach of govt. and F=+s towards inefficient 8;-Lprimary health
•
center also aggravates the problem. The growing reach of advertising $edias lie satellite and cable TH too is expected to give a boost to the maret penetration initiatives of the industry players.
3.1.4 6e%&nologi%al 7a%tors •
The industry though capital intensive is not very technology intensive. 8remium soap manufacturing though compared with other soaps manufacturing relies to an extent on technology 9especially in the finishing stage:. The more important is logistics management where mareting and distribution play a pivotal role. ;ere technology
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lie 9S-$: Supply -hain $anagement and 9
very hard towards such a system to rope up the entire small stores and retailers. The results of a survey done by Fational -ouncil of &pplied ?esearch 9F-&
,&* C(5t4er Ana1y5i5 CS65 ,nalysis Product Category, Market Segmentation, Target Marketing and Positioning:
This chapter describes the category of the selected product. The chapter is organized into four sections. Section 0 states under which category the product falls. Section 3 describes how "nilever %angladesh !td. differentiates the population and categorizes them into different segments. Section K analyzes which segment the company targets and why they target that specific segment. (inally section 4 describes the process through which the company tries to capture a place in the buyers mind i.e. the product positioning method
3.2.1 5rodu%t Category !"# falls under the category of toiletry product as a beauty soap.
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3.2.2 aret Seg$entation The company claims that !"# is the highest selling beauty soap in %angladesh. $oreover some survey reports also reveal the same result. Though !"# is the highest selling beauty soap in %angladesh, it does not go for traditional mass mareting. $oreover as a beauty soap !"# does not even segment its maret according to gender. "nilever %angladesh !td. segments their maret according to geographical areas. The population of the country is segmented into three parts which are urban, sub urban and rural area consumers. The company further differentiate the geographical segments according to Socio
3.2.3 aret 6argeting "rban and sub urban middle class, and rural poor people are the largest part of %angladesh population. & research carried out by "nilever %angladesh reveals that urban rich people are more liely to buy imported and expensive products. $oreover rural poor people tend to buy cheap products even without evaluating its quality. ;owever urban and sub urban upper middle and middle class people tend to buy affordable and quality products. !"# is not a highly expensive but an affordable product. That is why the company targets urban and sub urban upper middle and middle class people who are the second highest population of segment of the country. (rom the segmentation of customer according to S
3.2.4 5rodu%t 5ositioning "nilever %angladesh !td obtained a good position in the buyers+ mind through better product attributes, price and quality, offering the product in a different way than the competitors do. Marketing Strategy and The Marketing Mix ! "U# Sa$
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The company offers improved quality of products in the industry at an affordable price with high branding, which ultimately helps to position the product in the buyers+ mind as the best quality beauty soap. The maret share of the company in the beauty soap industry is somewhere around 4KJ.Since in the beauty soap industry all products are of same price "nilever cannot provide its consumers with better price but it is in a great position in reference with its pacaging, fragrances and product designing. & positioning map of the company is to describe !"#+s position in the consumers mind on two dimensions, price and quality. Information gathered by conducting a consumer survey. It states that though in comparison to its competitors the pricing of !"# is same but consumers rate it as the product which gives them the highest quality. This positioning created a strong customer loyalty for !"#, for which it the maret leader in the industry.
,&, C4$etiti/e Ana1y5i5 SO6 ,nalysis The SCT analysis for !"# helps identify the internal environment, its strengths and weanesses as well as the external environment faced by it, and the opportunity and threats that it presentsG
3.3.1 Strengt&s • • •
!"# possesses a very strong networ of maret research. !"# has a very wide range of products to offer. The parent company of !"# has helped in establishing a strong supply and distribution networ. %esides, it also has access to the resources of the parent
• • •
company of "nilever. !"# possesses a very strong brand image in the maret. The focus of !"# is going strong on beauty segment. !"# is a dynamic brand and is undergoes changes as per the changes in demand and trend.
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•
The brand has innovative sates promotion tactics that spread across different forms of
• •
media ) print, electronic, and social. The brand is nown to deliver value for money in the eyes of the consumers. It has a broad maret presence and mass appeal, being the maret leader in so many
•
countries. &S per the %-= matrix developed by the %oston -onsulting =roup, !"# can be put into the ST&? category for high maret growth and high maret share.
3.3.2 eanesses •
!"# lacs a unisex appeal as it has essentially been portrayed as a women+s beauty
•
soap and has a lot of feminine appeal. The wear rate of the soap is very high. It gets dissolved pretty fast and gets mushy and
•
soggy quicly. -ertain variants of the soap, lie the ;aute 8in, Sunscreen, etc. did not do so well in
•
the maret as some of its other variants have. The stoc replenishment in semiLurban areas and rural areas is quite long, despite
• •
having such a wide distributor networ. This leads to stoc out in these areas. Some of its advertisements have been quite controversial. It includes too much base which maes the sin dry.
3.3.3 Opportunities
•
The industry today is growing at a rate of more than 05J per annum. !"# can yield great benefits by reinforcing itself in the beauty segment. 8romotions strategies lie trade fare, price offs, sample distributions, etc. are essential
•
with competitors. The soap is in the maturity stage of its life cycle, so it is essential that a retentive
• •
strategy be adopted so that this can be sustained. Marketing Strategy and The Marketing Mix ! "U# Sa$
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•
&yurvedic of !"# could have a big scope in the maret. So far only variant of !"# that has somewhat come close to &yurveda, though not actually is the festive glow variant, which had the goodness of haldi and chandan ubatan. This could cater to a
•
new segment in the maret. !"# ids+ special soap would also help the brand greatly, as this segment has been
•
running dry for quite some time now. In this way brand loyalty could be young. The brand extension products of !"# ) the body washes with its new range launched recently, is in the growth stage of its life cycle. They can pic up fast pace is positioned and mareted properly. &ctive mareting of these body washes is going on
•
in the social media. It can also launch face wash as it is in great demand to today+s women.
3.3.4 6&reats • • •
• •
Fumber of competitors is rising L IT-, 8D=, etc are fast catching up. ;igh internal competition also exists for the soap lie *ove. !"# seems overly relied on the beauty segment, so in case the consumer trends or preferences change, then !"# stand to be highly vulnerable. $ore focus needs to be put on the newer technology. If constant reinvention is not there, then !"# can slip down from the maturity stage it currently is in and get into a declining phase.
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,&0 Prter5 Fi/e Fr)e5 Ana1y5i5 !ux is a very popular brand in soap category of "nilever. "nilever earns a large share of revenue by selling !ux. ;ere we are going to discuss 8orter+s (ive (orces in connection with !"# soapG
3.4.1 )egree o #i-alry HH;: The brand !"# has got huge maret share especially in India and %angladesh. If we focus on the other brands in soap category in India, we can see that there are lots of strong brands present in the maret. Hivel soap, -inthol and 8ears lead to the decline in their profit level. &nd that is how its competition level becomes even tougher. ;owever, !"# is constantly fighting to retain its maret share and to increase its maret growth rate in India. Fow let+s tae a loo at the perspective of !"# in %angladeshi maret. Ce can also see competition for !"# in %angladeshi maret as here are lots of other soap brands lie >eya, >ohinoor, *ettol etc. available in the maret. Feedless to say that !"# is the maret leader in %angladesh, however *ettol and other competitors lead to a little bit decline in !"#+s profit level. %ut still in my opinion, degree of rivalry between !"# and other brands in %angladesh is pretty much low. ;owever, !"# is earning revenue and doing business in a lot of countries around the world. So if we generalize it from every aspect, !"#+s degree of rivalry is really high.
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3.4.2 Bargaining 5o+er o Buyers HH;: -onsumers always want to buy quality products at a cheaper rate. Since the price level of !"# is a bit high, some consumers do not feel interested in buying !"# as other brands also offer good quality product in soap category at a cheaper rate. So buyers have high bargaining power which somehow causes "nilever to lose some maret share.
3.4.3 Bargaining po+er o suppliers
3.4.4 6&reat o sustitutes HH;: There are direct and indirect substitutes for !"# available in the maret. &mong them (acewash and %ody wash are two major threats for !"# as substitutes. &s people are getting more conscious of their sin and health, they are focusing on most appropriate things that they should be using and this is posing !"# a huge threat in terms of revenue and also compromising its maret share. ¬her threat is the adoption of soaps from other brands due to premium price that !"# charges on its consumers.
3.4.! 6&reat o ne+ entrants HH;: Marketing Strategy and The Marketing Mix ! "U# Sa$
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The main raw material to produce soap is palm oil which is relatively high in price in India. ;owever palm oil is way cheaper in -hina and $alaysia. So there is always a chance for a new company to get raw materials at a cheaper rate and serving a specific maret segment profitably offering their products in soap category at lower prices while causing decline to !"#+s maret share. So it creates vulnerability for !"# to the threats of new entrants.
CHAPTER FOUR THE MARKET'NG M'# OF "U# SOAP
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0&% The Marketing Mix The mareting mix is a business tool used in mareting and by mareting professionals. The mareting mix is often crucial when determining a product or brand+s offering, and is often synonymous with the four 8sG product, price, place and promotion, in service mareting however, the four 8s have been expanded to the Seven 8s or eight 8s to address the different nature of services. In recent times, the concept of four -s has been introduced as a more customerLdriven replacement of four 8s. &nd there are two four -s theories today. ne is !auterborn+s four -s 9consumer, cost, communication, convenience:, another is Shimizu+s four -s 9commodity, cost, communication, channel:.
This chapter describes the way "nilever %angladesh !td. use the tactical mareting tools for mareting !"# in %angladesh. The chapter comprises of four sections. Section K.0.0 discusses the product attributes of !"#. Section K.0.3 visualizes the price of !"# according Marketing Strategy and The Marketing Mix ! "U# Sa$
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to different size. Section K.0.K conceptualizes the distribution channel of "nilever %angladesh !td. This section includes a table that shows the location of the company+s warehouses all around the country. (inally section K.0.4 discusses the promotional activities that the company undertaes for !"#.
4.1.1 5rodu%t !"# is an internationally renowned beauty soap brand of "nilever. Though manufactured in %angladesh for the local maret by "nilever %angladesh !td, as an international brand, it maintains an international quality for the product. (ormula given by ?esearch and *evelopment departments in foreign countries, !"# is produced in %angladesh from imported raw materials lie sodium soap, glycerol and different extracts according to flavors, coming from "nilever plants situated abroad. !"# is offered in %angladesh in six different flavors which areG !"#
4.1.2 5ri%e Though "nilever %angladesh gives its !"# customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. %eauty soap is a product with a vulnerable demand in %angladesh. & change in price has a high ris of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. -ompany carries out research on competitors+ price and brand loyalty when it feels extreme necessity of changing price.
4.1.3 5la%e "nilever %angladesh !td. has a huge distribution channel for !"# all over the country as its sales reach more than 05 million pieces a year. The company has six huge warehouses, one in each division of %angladesh, where the product goes after they are manufactured at >alurghat factory. Marketing Strategy and The Marketing Mix ! "U# Sa$
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The company does not use its own fleet of transport for distributing its product. ;owever, it has outsourced its distribution process to various third party distributors, exclusively dedicated to "nilever %angladesh !td. These distributors then supply the product all over %angladesh to a huge number of retailers.
4.1.4 5ro$otion "nilever %angladesh undertaes huge promotional activities to promote !"# which has topped the beauty soap industry of %angladesh. It spends almost 35J to 36J of its Fet 8roceeds from Sales 9F8-: of !"# for promotional activities for !"#. It+s certain annual promotional campaigns lie !"# -hannel i Superstar and !"# -hannel i &nnual -inema &wards has made the product a part of the glamour world. Since the 02K5s, over 455 of the world+s most stunning and sensuous women have been proudly associated with !ux advertisements. They do not only promote !"# in %angladesh for the beauty conscious females, it also promotes the brand for males and the company proved that, by including world famous male celebrity Shahruh >han for their advertising campaign. "nilever %angladesh !td spends a huge amount of money for promoting !"# through TH commercials, newspaper advertisements and billboards. $oreover it also undertaes small promotional campaigns at different schools, colleges, universities and recreational pars with winners of its Nonal %eauty -ontests. Till now promotional activities of !"# has always been successful which has made it a household common name and helped it reach almost one billion taa sale value in the year 3554.
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CHAPTER F'7E F'ND'NGS ; RECOMMENDAT'ON
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2&% Finding5
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They are more focused about their 8romotional activities' The proportion of &lali is too much high and maes sin rough' They are not so focused about the quality improvement' $ost of the people uses !"# because of its unique fragrance no one uses !"# for
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sin care' *ove is the strongest internal competitor of !"# and Sandelina is the external
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strongest competitor in %angladesh' Some people expect that !"# will introduce more products of !"# lie (ace was
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and body powder' &s every class of people use !"#, respondents thin that the price of !"# should be
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reduced' Sandal and -ream is the most used fragrance of !"# in %angladesh' $ost people get information about !"# from TH advertisement' 8eople are satisfied with size of !"# soap.
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2&* Re)44endatin •
$ost of the respondents suggested that they would lie to see more (ragrance of !"#
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soap' In order to increase more sales !"# should concentrate on appropriate reduction of
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cost which will directly lead to gain leadership in price, %y hiring famous stars !"# is investing huge amount to promote their products' $y suggestion will be now !"# should discontinue spending huge amount in promotional activities' !"# will also have to do product development for the product line extension' &s this soap maes sin rough enough, we thin !"# should invest more to improve the quality of !"# rather than promotional activities, or else it can lose its maret at
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any time because there are many strong competitors in soap maret' !"# can introduce more products lie (ace Cash, %ody 8owder etc. as this product cover a huge and different maret segment.
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Cn)1(5in !"# has been operates its business for many years in %angladesh where cash and every person nows brand quality and different product of it and consumers are also aware about the different strategies which are used to attract more consumers to buy the product but still it has lacing to survive in the maret. (rom the above analysis it+s been conclude that %angladesh "nilever !imited facing competition from the other companies. Thus to eep its maret share for the growth in their business it should focus on equality management and improvement to achieve its objective. ;owever !"# soap should penetrate the maret in order to survive in this competitive world and also introduce some new product with the reasonable activity should also be consider throughout which will result in gaining competitive advantage from its competitors.
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