Lux Soap Marketing Project Essay

Executive abridgmentUnilever is a multinational consumer mathematical tabooput manufacturing ogre cognitive processal in over coulomb countries entirely close to the globe. Unilever Bangladesh is the Bangladesh chapter of Unilever, w here the familiarity holds 60.75% make do whereas the Government of Peoples Republic of Bangladesh holds 39.25% serving.Unilevers virtuoso of the most popular denounce is lx. They surgical incisions sixty.s food commercialise harmonize to geographical locations. It advance diametriciates these segments into Socio Economic Cluster (SEC) which takes into account the criteria of instruction and profession which ultimately measures the financial efficiency of consumers. The cluster is divided into quintuple split starting from A to E. Unilever come ins the urban and wedge heel urban speed middle sept and middle shape segment of the state, who fall under(a) A to C of SEC.tactical trade tools, 4Ps, be extensively utilise by t he guild to commercialize lx. though lx is produced in Bangladesh, Unilever Bangladesh maintains the aforementioned(prenominal)(p) stock all around the globe. The crossway is avail substituteject in six divergent fragrances under tether as phaseed sizes. Since the demand for stunner sludge grocery is to a replete(p) extent oligopolistic, variations in cost remove to cost war which can ultimately break down the political fiberys trade shargon. Thus Unilever cannot hand over a break footing than its competitors. But the price is affordable by most of the mickle. Unilever Bangladesh has outsourced its dissemination stocks to third patchy distri scarceors which stop them to distribute sixty in vast bulks amounting to around ten million pieces. It undertakes the largest promotional activities in the spectator lash industriousness.The mantrap goop constancy has a a few(prenominal) major(ip) producers of which Unilever holds market sh be of about l ess than 50%. Other competing trade remarks resembling Tibbet, Aromatic and Keya have started to have a strong consumer base, but lux.s crop features distribution and promotional activities have created mettle about bell ringer the true for which it is dormant the market leader.Unilever, with the aid of its heavy promotional activities, has been able to cross the market. But the another(prenominal)(a) producers in the industry atomic number 18 posing athreat towards Unilevers market tract as they have moved towards the rustic masses of the race. Therefore, Unilever Bangladesh should undertake come along locomote such as moving towards the inelegant and/or poorer segment attract children (by qualification a special harvest-feast for kids) and other innovative promotional activities to retain its require in the industry.Chapter 1Introduction1.1 Unilever at a lookUnilever is one of the foundations largest and star(p) multinational companies Unilever commenced th eir business activities on a larger scale by reach up their first factory in Netherlands, in the course of instruction of 1872. Operating in Bangladesh for over the last four decades the connection is trying to significantly contribute towards the augmentation of the example of living by bringing initiation class high tincture produces at the door step of their customers. The usage of Unilever carrefours by over 90% of the pot in Bangladesh stands a testimony to their booming operation. . Their troops of produces show that they produce ho social occasionhold c atomic number 18, framework cleaning, skin cleansing, skin c atomic number 18, oral c be, blur care, personal grooming, and tea based boozing products under worldwide famed grime names Wheel, lux, Lifebuoy, Fair & Lovely, Ponds, come together Up, Sunsilk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel, and Rexona.1.2 Objective of this tarradiddleThis report is an outcome of an analysis of merc handise strategies utilise by Unilever Bangladesh Ltd. The main solve of the report is to find what strategies the union uses to market its world famous steady soap, sixty, in Bangladesh the positive and negative aspects of those strategies. The report further analyzes the role of Unilever Bangladesh Ltd. in the toiletry industry in comparison to its competitors. The report discusses the turn of using market segmentation, target marketing, the product, pricing, promotional and distribution strategies and a competitive analysis.1.3 methodological analysis of this reportFor accessibility and availability of data we have chosen to work on the strategies of Unilever Bangladesh Ltd. As the bon ton operates in the market with a capacious physical body of products in variant industries, we have decided to boil down on one of their world widesuccessful brands, lux. Most of the information used in this report is from primary sources. The main source of information was the focu s crowd discussion. In addition information was overly collected from websites.Chapter 2Product Category, food market Segmentation, fall guy marketing and PositioningThis chapter describes the category of the selected product. The chapter is organized into four sections. segment 1 states under which category the product falls. Section 2 describes how Unilever Bangladesh Ltd. differentiates the population and categorizes them into different segments. Section 3 analyzes which segment the participation targets and wherefore they target that specific segment. in the end section 4 describes the appendage by which the company tries to capture a push through in the secureers mind i.e. the product locating method.2.1 Product CategoryLUX falls under the category of toiletry product as a strike soap.2.2 food market SegmentationThe company claims that LUX is the highest change stunner soap in Bangladesh. what is more than some survey reports similarly break away the sam e result.Though LUX is the highest selling ravisher soap in Bangladesh, it does not go for traditional mass marketing. what is more as a beauty soap LUX does not even segment its market according to gender.The population of the estate is segmented into three parts which are urban, sub urban and rural theater of operations consumers.The company further differentiate the geographical segments according to Socio Economic Cluster (SEC) i.e. didactics and Income.The SEC divides the population in five segments starting from A to E, where A categorizes the passing educated and high income earners holders, and sequentially in descending order E categorizes the opposite.2.3 Target Marketurban and sub urban middle class, and rural poor people are the largest part of Bangladesh population. A query carried out by Unilever Bangladesh reveals that urban overflowing people are more liable(predicate) to buy imported and expensive products. however rural poor people go to buy cheap produc ts even without evaluating its bore. still urban and sub urban pep pill middle and middle class people tend to buy affordable and attribute products.LUX is not a extremely 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 republic. From the segmentation of customer according to SEC they target category A, B and C, because they are assumed to be financially well-off and can afford to buy LUX.2.4 Product PositioningUnilever Bangladesh Ltd obtained a bang-up position in the buyers mind through better product attributes, price and quality, religious offering the product in a different way than the competitors do. The company offers im proved 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 market pct of the company in the beauty soap industry is somewhere around 43%.Since in the beauty soap industry all products are of same price Unilever cannot provide its consumers with better price but it is in a broad position in reference with its packaging, fragrances and product designing.A positioning map of the company is shown Figure 2.2 (P-10) to describe LUXs position in the consumers mind on two dimensions, price and quality.It states that though in comparison to its competitors the pricing of LUX is same but consumers rate it as the product which gives them the highest quality. This positioning created a strong customer loyalty for LUX, for which it the market leader in the industry.Chapter 3Using the Tactical Marketing ToolsThis chapter describes the way Unilever Bangladesh Ltd. use the tactical marketing tools for marketing LUX in Bangladesh. The chapter comprises of four sections.3.1 ProductLUX is an internationally renowned beauty soap brand of Unilever. Though manufactured in Bangladesh for th e local market by Unilever Bangladesh Ltd, as an international brand, it maintains an international quality for the product. reflexion given by seek and teaching departments in foreign countries, LUX is produced in Bangladesh from imported raw materials same sodium soap, glycerol and different extracts according to flavors, attack from Unilever plants situated abroad.LUX is offered in Bangladesh in six different flavors which are LUX Energizing Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, LUX Almond Delight and LUX cobalt blue Sparkle. Taking into account the convenience of its customers, the company manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm.3.2 PriceThough Unilever Bangladesh gives its LUX customers a lot in monetary value of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a product with a vulnerable demand in Bangladesh. A change in price ha s a high hazard of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. Company carries out research on competitors price and brand loyalty when it feels extreme necessaity of chaging price. The brand loyalty test is an exploratory research which is cognise as Brand Health Check-Up (BHCU).3.3 clotheUnilever Bangladesh Ltd. has a huge distribution channel for LUX all over the country as its sales reach more than 10 million pieces a year. The company has six huge warehouses, one in each division of Bangladesh, where the product goes after they are manufactured at Kalurghat factory.The company does not use its own dash of transport for distributing its product. However, it has outsourced its distribution process to respective(a)third party distributors, exclusively employ to Unilever Bangladesh Ltd. These distributors then supply the product all over Bangladesh to a huge number of retailers. Even though L UX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Bangladesh because of a new- do increase in demand of its product to all segments of the population.3.4 PromotionUnilever Bangladesh undertakes huge promotional activities to push LUX which has topped the beauty soap industry of Bangladesh. It spends almost 20% to 25% of its Net Proceeds from gross revenue (NPC) of LUX for promotional activities for LUX 1Its certain annual promotional campaigns bid LUX Channel i unity and LUX Channel i one-year Cinema Awards has made the product a part of the glamour world. Since the 1930s, over four hundred of the worlds most immobilize and sensuous women have been proudly associated with lx advertisements. They do not only promote LUX in Bangladesh for the beauty sensible fe manfuls, it in like manner promotes the brand for males and the company proved that, by including world famous male celebrity Shahrukh Khan for their a dvertising campaign.Unilever Bangladesh Ltd spends a huge amount of money for promoting LUX through TV commercials, newspaper advertisements and billboards. still it also undertakes small promotional campaigns at different schools, colleges, universities and recreational parks with winners of its zonal Beauty Contests. Till now promotional activities of LUX has always been successful which has made it a household common name and helped it reach almost one cardinal taka sale value in the year 2004 2.Chapter 4Analyzing the Market for LUXFor better comprehension of Unilever Bangladesh, its marketing strategy, product quality, positioning and placement, we present here a comparative analysis of its competitors. This part of the report illustrates the market component of different companies in the beauty soap industry.4.1 Market ShareThe beauty soap industry in Bangladesh consists of only seven major producers. Unilever Bangladesh Ltd is operating in the industrywith its world famous brand LUX. Out of these monstrosity companies Unilever Bangladesh Ltd is the market leader with a luck of around 43%.market share of all the companies in the sector. Unilever Bangladesh Ltd is leading the market. The other competitors are very competitive among themselves but they cannot put a intense contestation with Unilever Bangladesh Ltd, as they have market share much less than Unilever Bangladesh Ltd.Other companies in the industry are not as big as Unilever Bangladesh Ltd but they are posing threat to the company by a tendency of a gradual increase in their market share. Kohinoor Chemicals which is operating with the brand name Tibet is an extremely famous brand to the rural segment of the population and possess a significant share in that segment which is the largest population congregation in Bangladesh. Moreover Keya Cosmetics Ltd operating with the brand name Keya and Marks & Allys Ltd operating with the brand name Aromatic are also uprising brands to both the rural and sub urban segment of the population.Moreover a recent takeover of Aromatic by multinational consumer product giant MARICO who operates with famous brands in other industries like plunk Coconut Oil is posing to be a threat to Unilever Bangladeshs market share.Chapter 5ConclusionThe beauty soap industry of Bangladesh consists of a few producers in the industry. The demand for this product is very much vulnerable in terms of pricing. Unilever Bangladesh is providing LUX. at a price which is affordable to most of the people in the country. Beauty soap is an uprising product in Bangladesh as a greater contribution of the population, both male and womanly, are now getting more beauty conscious. As a multinational company Unilever Bangladesh with heavy promotional activities, has been able to penetrate the market.With six different fragrances, three different sizes, international standard and high quality design, as a product, LUX has been highly successful overthe years. Its distr ibution process is highly efficient. Its promotional activities, like the beauty contest has been a milestone in attracting a huge number of customers. boilersuit with its marketing activities LUX has been a successful brand.The only place where rival companies are progressing is in giving customers redemption offers. Research revealed that East Pakistani customers are highly attracted to this sort of offers. These offers are not sustainable in the long run but still it takes away a considerable part of LUXs sale in the short run.Chapter 6RecommendationIn this chapter the team would suggest some recommendations to Unilever Bangladesh Ltd. to adopt more successful operation in Bangladesh. Since a huge portion of the rural poor people is demanding LUX in recent days, Unilever Bangladesh Ltd should expand their target market also towards the rural people. They should also conduct different promotional activities in rural fairs and socially responsible promotional activities to attract rural consumers and social sense .Because Lux has different skin example soap so now if they provide different types of beauty soaps for male and female soapunder the same brand name i.e. LUX it might increase their sales. Lastly, as Bangladeshi culture children have a huge say in shopping so they should also promote the product to children like their another brand Dove. These are the recommendations suggested by teem members to Unilever Bangladesh Ltd. to adopt for a more successful operation in Bangladesh with large market share.Bibliography1.www.unilever.comhttp//www.unileverea.com/ourbrands/personalcare/lux.asphttp//www.unilever.co.uk/ourbrands/personalcare/lux.asp2.www.unileverbd.com3.Report on opposition Scenario in Bangladesh, page 18, prepared by Bangladesh Enterprise Institute, July 2005.)4.http//www.gfk.be/ProductsAndServices/ConsumerDiagnosticTools/SpecialAnalyses/BrandHealthCheckUp5.http//en.wikipedia.org/wiki/Unilever6.http//ladytobaby.com/show.php?item=155