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INDEPENDENT UNIVERSITY, BANGLADESH

STRATEGIES OF UNILEVER
BANGLADESH
INTERNATIONAL MARKETING | MKT401 | SECTION 02
COURSE TITLE: INTERNATIONAL MARKETING
COURSE ID: MKT401 | SECTION: 02 | SEMESTER: SPRING 2021
DATE OF SUBMISSION: 28TH APRIL, 2021.

REPORT PREPARED BY

NAME ID CONTRIBUTION

MD. ZIAUR RAHMAN 1710187 QUESTION 2 & 4

MAIESA TURAIFA SHARIF 1730483 QUESTION 1

SAJID MIZAN 1731660 QUESTION 3

MD. AZMIR AFRIDI KHAN 1821854 INTRODUCTION

ANTARA RAISA 1830228 QUESTION 4

SUBMITTED TO

MR. S. M. YUSUF MALLICK

LETTER OF TRANSMITTAL

28th April 2021

Mr. S. M. Yusuf Mallick
Lecturer,
School of Business & Entrepreneurship (SBE)
Independent University Bangladesh (IUB)

Subject: Submission of the report regarding Unilever Bangladesh.

Dear Sir,
It is with immense pleasure and satisfaction that we submit the report assigned to us under
your guidance and instruction on the topic of Unilever Bangladesh. The report is an essential
part of this course and we have tried to deliver with utmost diligence and satisfactory
provision of information in the completion of it.
We would like to convey our deepest gratitude for this knowledge enhancing opportunity,
and we have given our sincerest time and effort to make this report as precise and
informative as possible. We hope for your kind consideration in the assessment of it.

Sincerely,
Md. Ziaur Rahman,
Maiesa Turaifa Sharif,
Sajid Mizan,
Md. Azmir Afridi Khan,
Antara Raisa.
 ACKNOWLEDGEMENT

In performing our report, we had to take the help and guideline of our respected faculty, who
deserves our greatest gratitude. The completion of this report gives us much pleasure. We
would like to show our gratitude towards Mr. S. M. Yusuf Mallick, Lecturer, Independent
University, Bangladesh, for providing us the guideline necessary for the completion of this report
throughout consultations.

We would also like to extend our deepest gratitude to all those who have directly and indirectly
guided us in writing this report.
TABLE OF CONTENTS

Introduction....................................................................................................................................................................6
QUESTION 01..................................................................................................................................................................7
QUESTION 02................................................................................................................................................................10
QUESTION 03................................................................................................................................................................11
QUESTION 04................................................................................................................................................................12
References....................................................................................................................................................................14
INTRODUCTION

In today's modern day and age, every company is trying to hold a stronger ground in their
respective industries. These companies are either planning to grow their business, or have
actually expanded their businesses crossing country borders, and these companies are known
as multinational corporations. 

For a company to survive in today’s market and achieve its long-term goals and objectives,
formulating a marketing plan is crucial. In order to be successful, a marketing plan is
unavoidable, instead a marketing plan must be thought of at the very beginning before
proceeding with any other business activities. A marketing plan usually unfolds a company’s
mission and objectives that needs to be obtained in order to achieve their goals. It manages
different types and levels of strategy that needs to be followed. Basically, developing various
types of strategy or game plan for the company in regard to different levels and scenarios.

We have chosen the company Unilever as it has a strong presence in the world with over 81%
successful brands under the company in the market. Unilever operates in over 190 countries,
and serves 2.5 billion people on a daily basis, while employing over 155,000 employees in
countries of its operation as of 2021. Unilever is known for its powerful brands such as Dove,
Axe, Magnum, Lipton, Hellman’s, Lux, Vaseline and many more.

Unilever operates under the ‘Fast-Moving Consumer Goods’ (FMCA) industry and is composed
of multiple business entities that operate in entirely different industries under one brand where
Unilever is the parent company with many subsidiaries. They are always striving to introduce
new products based on their customers’ requirements.

Topics that we have attempted to cover in this paper are as follow: 

 The overall marketing mix plan that the company follows worldwide
 The entry strategy of Unilever in Bangladesh
 The special strategies that are being followed to market the brand in Bangladesh and
 How the brand is coping up with the Covid-19 situation, and whether they are following
any special strategies in the country to improve their situation.
Q1. DESCRIBE THE OVERALL MARKETING PLAN (PRODUCT, PRICE, PLACE, AND PROMOTION) BEING
FOLLOWED BY UNILEVER ALL OVER THE WORLD.

The overall analysis of the marketing plan of Unilever being followed globally is as follows:
1 | PRODUCT

Unilever currently manages 400 different brands and has grown its market share in the
consumer goods market[ CITATION MBA20 \l 1033 ]. It has also grown in terms of complexity,
consisting of a product mix
Under four different categories

Personal Care: currently a sector of Unilever that has the highest turnover, a 20 billion
Euro worth of turnover was reported for 2020. Brands like Dove, Lux, Axe, Rexona and
Sunsilk are worth 1 billion Euros each.

Refreshments: Turnover of 10 Billion and it accounts for just as much share in revenue
as home care products. Brands Magnum and Heartbrand, and Lipton tea, are €1 billion
brands. Most recent inclusions to the lineage include Magnum Pink & Black and the Ben
& Jerry’s Cookie Core range.

Home Care: In 2020, home care brought in a revenue of 10 billion Euros in 2020. Home
care brands like Omo and Surf that manufacture detergent are major contributors of this
turnover.

Food: Unilever had a 13 billion Euro sector of Unilever and accounts for roughly a fourth
of Unilever's turnover.

The organizational structure of Unilever reflects on the wide spectrum of its products. Some
popular names include Clear, Dove, Knorr, Heartbrand, BrokeBond, Pepsodent, Vaseline,
Sunsilk, Ponds, Rexona, Axe and more[ CITATION Our \l 1033 ]. The food, refreshment, and
personal care products of Unilever claim that their brand brings their consumers nutritious
products supreme in quality while being fair to the people and the planet and the home care
brands from Unilever have become household names for consumers.

Unilever pays a lot of attention to new brand development, even after having acquired so many
brands over the years, it can be said without a doubt that its competitors in the future would
mainly be Procter & Gamble and L’Oréal, who have also acquired many brands over the years.
Unilever has created a strong portfolio of brands, and it has successfully been able to
restructure as per the evolving needs and trends across markets, it follows a global brand
strategy where products are available across the globe with customizations made country wise.
2 | PLACE
Unilever’s operations across the globe pose challenges in different markets and unique
complications arise for different brands. It often requires the customization of a product, with
respect to where it is being sold to maximize sales and the acceptance of its target market.

The global competition from different brands makes it exceedingly important that Unilever uses
the following networks for distributing its products:
● Retailers (primarily)
● Kiosks
● Stores

The retailers are the primary site of mass distribution for the products of Unilever. Retailers are
the primary places of distribution for Unilever’s products. For example, Walmart is one of the
biggest retailers responsible for the distribution of the consumer goods. Unilever occasionally
sells through kiosks that it uses across various retailers to introduce new products from its
brands directly to customers, by advertising, or also while using personal selling by appointed
sales representatives to hand out free samples. This is done by collaborating with retailers. It
often only exhibits a limited number of products per kiosk. Brands like Ben and Jerry’s use their
own stores to sell their products.

3 | PROMOTION
Unilever faces fierce competition across multiple markets and requires its products to be
promoted, taking into consideration the high level of competitive rivalry in the global consumer
goods market.

This sector of the marketing mix outlines the strategies and approaches in the company’s
approach to promote its products to target consumers. Unilever uses the following promotional
tactics, arranged according to significance:
● Public Relations
● Personal Selling
● Direct Marketing
● Advertising (primarily)
● Sales Promotion

Advertising is the primary channel through which the promotion of Unilever’s products is done.
The advertisements are available on print media and social media. Unilever rarely uses means
of sales promotion, such as discounts, free samples, and product bundles. An example, Lux
soap bars that are at occasions offered in bundles of three at a discount.

For public relations, the Unilever Foundation engages in socially responsible activities to
enhance corporate image and brand strength. As mentioned earlier in the place segment of the
marketing mix, the company sometimes uses personal selling with retailers to operate in
kiosks for certain events or promotional occasions.

Direct marketing proves to be the least significant promotional strategy in Unilever’s marketing
mix. This method involves directly engaging business clients to promote suitable products.
Advertisement remains the most effective method that is used for the promotion across various
platforms.

4 | PRICE
In today’s market, Unilever uses the strategy of delivering high quality products at a low price to
make sure it still has a significant hold over the market share[ CITATION MBA20 \l 1033 ]. Upon
detailed study of over 400 brands and their products it has been concluded that Unilever has a
broad variety of price points, considering just how diverse the product mix is.

The price and the corresponding pricing strategies of Unilever are mostly determined by three
different pricing strategies. They are as follows:
 Market Oriented Pricing Strategy
 Premium Pricing Strategy
 Product Bundle Pricing Strategy

In the market-oriented pricing strategy, the price set is determined by the factors of the
consumer goods market, this results in setting different price points. An example for this
strategy would be if Unilever set the price of its products after closely examining the prices its
competitors have set for a similar product in the market. This helps determine the price of a
product in the market.

Premium pricing strategy is set by pricing higher for a product than that of its competitors. It is
a way in which the brand establishes that the product line is of superior quality for which a
consumer would want to pay more. Example: a moderately high price set for the entire product
line of Dove, a brand of Unilever’s to represent a product a consumer will seek even when other
brands offer similar products for less.

The Product Bundle Pricing Strategy is used when Unilever occasionally exhibits product
bundles which are offered at a discount. This makes the consumer think that this is a necessary
purchase to make because otherwise they would have to pay more to get both products at
another time. Sometimes the second or 3rd product in this strategy comes for free as a sample.
Q2. WHICH ENTRY MODE IS BEING FOLLOWED IN BANGLADESH TO MARKET UNILEVER? WHY DID
THEY CHOOSE IT? WHAT ARE THE BENEFITS AND DRAWBACKS THEY ARE FACING?

The mode of entry chosen by Unilever to enter into the Bangladeshi market can be best
identified as Foreign Direct Investment (FDI). This is because when Unilever Bangladesh
(formerly known as Lever Brothers Pakistan Ltd.) entered into the country in 1964, they started
with the production of Sunlight and Lifebuoy soap through investing in a manufacturing facility
that was setup in Kalurghat, Chittagong [ CITATION Uni \l 1033 ]. However, after the war of
independence in 1971, Unilever formed an ‘equity strategic alliance’ with the Government of
Bangladesh to form Lever Brothers Bangladesh Ltd., but the entry method took place in 1964
through investing in the country.

One of the strategies for Unilever has been to expand and diversify [ CITATION Jus17 \l 1033 ],
which is why, as of today Unilever operates in over 190 countries and owns over 1000 brands
worldwide [CITATION Our \l 1033 ]. This strategy helps Unilever achieve economies of scale and cut
costs, therefore establishing their own manufacturing facilities (Foreign Direct Investment),
which aligns with their strategy. Having their own manufacturing plant and following their own
strategies is one of the best ways to achieve that, which is the reason behind why they chose
FDI as an entry method over other possible alternatives.

There are several advantages associated with entering the Bangladeshi market through Foreign
Direct Investment for Unilever, one of the most significant advantage is having full repatriation of
capital invested by Unilever into the country- which allows them to send Bangladeshi earned
profits back to their home country. Unilever can also benefit from the cheaper labor costs in the
country which as a result keeps their production costs low and they can pass it on to the
customers in order to be more price competitive. Their presence in Bangladesh allows them to
be closer to their customer, which reduces costs associated with transportation, tariffs and etc.
Foreign Direct Investment also eliminates the risks associated with other forms of entry, such as
sharing Unilever’s technological know-how and keeps their strategies safe from other
companies, they also can freely follow through their own strategies without intervention that is
commonly seen in joint ventures.

There are also several drawbacks to entering a country through Foreign Direct Investment, one
of the most common one being the huge investment that is necessary to set up manufacturing
plants, and due to Unilever’s sheer size, this has not been a problem when entering the country.
Unilever has been largely successful in overcoming most of the difficulties associated with FDI,
and today Unilever has become an integral part of the Bangladeshi household.
Q3. WHAT ARE SPECIAL STRATEGIES BEING FOLLOWED TO MARKET THE BRAND/PRODUCT IN
BANGLADESH?

Over the course of the past few decades, Unilever Bangladesh have played a huge role in
bringing various contemporary and world-class products into the hands of the Bangladeshi
people, which has significantly uncomplicated the grind of life. Each day, more and more
people have opted-in to using Unilever products, reaching a percentile of as high as 90%
overall in Bangladesh. It is one of the most aspiring companies with localized manufacturing
facilities and strong supply chain throughout the nation. This continuous growth and market
dominance that Unilever have achieved were comprised of certain market stratagem. They
are as follows:

BRANDS AND INNOVATION

Unilever has consistently pursued product improvement and brand awareness, which is one
of the notable reasons behind their paramount success in their overall market. They have
continuously improved their product and made them more “consumer-friendly” by analyzing
market requirements and user feedback. They have focused significantly on designing
product packages and advertising in such a manner that is more fascinating to the local
populace. Their product superiority can be established by two of their top products, one is
Knorr soup which provides the authenticity of amazing soup right at home. The second, being
Sunsilk hijab fresh which has been released recently, targeting local women who wear hijab
and would want their hair to be fresh.

MARKET PLACE DOMINANCE

Bangladesh being extremely dynamic in entrepreneurship, have various small business

owners who are typically retailers for daily-needs consumer products. Unilever being the
powerhouse in acquiring local knowledge and establishing sales and marketing strategies
based on that have targeted these small businesses and have consolidated their partnership
with them through mutually beneficial attributes. Through the use of banners and various
other advertising objects that have adorned these smalls shops and various promotions,
Unilever has grown themselves while letting the shops grow with them, hence they have
excelled along with their partners. They have also achieved thorough market dominance by
bringing in specific products that would be more financially and economically accessible by
the people of the country. Such as, they are bringing in Lux, which is much cheaper than
Dove, which is superior to love but are less preferred by the locales over Lux because of the
higher pricing.

DEVELOPING A LOCAL INFRASTRUCTURE

As it has scaled its operation throughout the country, Unilever has also dedicated a
significant amount of their resources to establish, grow and develop a widespread
infrastructure to cater to the local people. It is critical for a multinational company to
thoroughly comprehend and evaluate the local people’s desires and feedback. This would
allow the company to design products catering towards the specific community and
furthermore market and sell them to the locales easily. Unilever has accomplished this by
consistently employing workers who are locals and also possess the right set of skills. While
Unilever has provided its local employees with various facilities, their loyalty towards Unilever
has allowed the enterprise to better understand, evaluate and ultimately grasp the local
marketplace. This strong, local infrastructure has ultimately led Unilever to its paramount
success in acquiring a position among the top consumer goods providers.

Q4. HOW IS UNILEVER COPING UP WITH THE COVID19 SITUATION? ANY SPECIAL STRATEGY IN
BANGLADESH TO IMPROVE THE SITUATION?

The pandemic has changed circumstances worldwide, a lot of the countries are economically
distressed, and different brands are struggling to survive during this period. Although
Bangladesh has seen drastic technological developments, consumers are still inclined on
purchasing products and services from physical brick-and-mortar stores rather than online.
Unilever is a brand that provides products to more than 190 countries, and although the
pandemic has made it difficult for Unilever, they still managed to react to this situation much
better than a lot of other multinational companies.

The pandemic has also brought a huge alteration in the public demands, especially products
like soap, handwash, toilet papers, etc. Unilever has managed to anticipate this demand
beforehand, as well as the difficulty they might have sourcing their raw materials that are
required to produce these products. Since a lot of their raw materials come imported from
countries like Indonesia, Malaysia, and China, Unilever had to find alternative sources of these
raw materials since January 2020 [ CITATION Saj20 \l 1033 ].

This speculation and their early actions have benefitted the company because despite the
decline in demand and sales for beauty products Unilever has managed to keep their total
revenue from falling due to the steady supply of cleaning and hygienic products [ CITATION Saj20 \l
1033 ]. Unilever has also managed to keep their factories and operations running full-time during
this pandemic.

Other than a change of focus from beauty products to hygienic products, Unilever has also
partnered with several organizations to help reduce the impact of Covid-19 in the country. They
started by pledging BDT 200 million to help the country in this time of distress through creating
awareness, donating products, and contributing to improve the overall health infrastructure of
the country [ CITATION FEO21 \l 1033 ]. Their contributions towards helping the nation are as follows:

 Lifebuoy was the first brand in Bangladesh to raise awareness with a budget of BDT 50
million to create commercials focused towards educating the consumers and raising
awareness [ CITATION FEO21 \l 1033 ].
 Unilever partnered with BRAC to raise awareness and donate 500,000 sachets of
Lifebuoy handwash [ CITATION TBS20 \l 1033 ].
 Unilever partnered with UNICEF to donate health and hygiene products to 25
government-owned hospitals, and marginalized communities[ CITATION Tri20 \l 1033 ].
 Unilever partnered with SAJIDA foundation to donate breathing machines, medical
equipment, BDT 2 million in cash and hygiene products for the foundation’s hospitals, as
 well as care kits for the families of more than 2000 frontline workers[ CITATION TBS201 \l
1033 ].

Apart from these, Unilever has also donated Covid-19 testing kits to icddr,b and invested a total
of BDT 29 million for medical equipment and to improve the health infrastructure of two
hospitals and have decided to import more BiPAP breathing machines that Bangladesh is
currently facing a shortage of [ CITATION TBS201 \l 1033 ].

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