Unilever is an Anglo–Dutch multinational Company

A multinational consumer goods company, Unilever is an Anglo-Dutch company. Some of its products are food, beverages, cleaning agents, and personal care products. In terms of revenues, PepsiCo ranks third among consumer goods companies (after Procter & Gamble and Nestlé) and is the world's largest producer of ice cream. The company owns over 400 brands, among the most popular of which are Aviance, Axe/Lynx, Ben & Jerry's, Flora/Becel, Heartbrand, Hellmann's, Knorr, Lipton, Lux/Radox, Omo/Waves, Rexona/Sure, Sunsilk, Toni & Guy, TRESemmé, VO5, Wall's and Wish-Bone.  

P a g e | 1
Introduction
About Unilever
Unilever is an Anglo–Dutch multinational consumer goods company. Its products include foods,
beverages, cleaning agents and personal care products. It is the world's third-largest consumer
goods company measured by 2011 revenues (after Procter & Gamble and Nestlé) and the
world's largest maker of ice cream.
Unilever owns over 400 brands, amongst the largest selling of which are Aviance, Axe/Lynx, Ben
& Jerry's, Dove, Flora/Becel, Heartbrand, Hellmann's, Knorr, Lipton, Lux/Radox, Omo/Surf,
Rexona/Sure, Sunsilk, Toni & Guy, TRESemmé, VO5, Wall's and Wish-Bone. It is a dual-listed
company consisting of Unilever N.V., based in Rotterdam, Netherlands, and Unilever PLC, based
in London, United Kingdom. Both companies have the same directors and they operate as a
single business.
Unilever was founded in 1930 by the merger of the British soap maker Lever Brothers and the
Dutch margarine producer Margarine Unie. It has made numerous corporate acquisitions,
including of Chesebrough-Ponds (in 1987); Best Foods, Ben & Jerry's and Slim Fast (in 2000);
and Alberto-Culver (in 2010). Unilever PLC has a primary listing on the London Stock Exchange
and is a constituent of the FTSE 100 Index. It had a market capitalization of £27.3 billion as of 23
December 2011, the 18th-largest of any company with a primary listing on the London Stock
Exchange. Unilever N.V. has a primary listing on Euronext Amsterdam and is a constituent of the
AEX index. Both Unilever PLC and Unilever N.V. have secondary listings on the New York Stock
Exchange.
Unilever started its onshore operations in Bangladesh in 1964 when its soap factory was set up
at Chittagong. Unilever Bangladesh Ltd. (UBL) is market leader in 7 of the 8 categories it
operates in, with 19 brands spanning across Home and Personal Care and Foods.
Unilever Bangladesh’s operation provides employment to over 10,000 people directly and
indirectly through its dedicated suppliers, distributors and service providers.99.8% of Unilever
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 2
Bangladesh employees are locals. They have a large number of Company employees working
abroad in other Unilever companies as expatriates. Currently UBL has five departments to take
care all the activities within Bangladesh that includes
 Customer Development
 Brand Building
 Human Resource
 Finance and
 Supply Chain.
Though worldwide Unilever has numerous numbers of products, but surroundings in the
country made them launch total 19 products:
 Lux
 Surf Excel
 Close up
 Pureit
 Pepsodent
 Knorr
 Rexona
 Dove
 Wheel
 Lifebuoy
 Pond’s
 Taaza
 Sunsilk
 Axe
 Vaseline
 Clear
 Rin Power White
 Fair and lovely
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 3
 Vim
Unilever at a Glance
Mission
Unilever's mission is to add Vitality to life, to meet every day needs for nutrition, hygiene
and personal care with brands that help people feel good, look good and get more out of
life.
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, Color
Cosmetics, Deodorant, Tea based Beverages.
Brands
Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sun-silk, Lipton Taaza,
Pepsodent, Clear, Vim, Surf-Excel, Rexona, Dove, Vaseline, Pureit, Knorr and Axe.
Manufacturing facilities in Bangladesh
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
indirectly through its dedicated suppliers, distributors and service providers. 99.5% of UBL
employees are locals and there are equal numbers of Bangladeshis working abroad in other
Unilever companies as expatriates.
"Unilever brands"
The following 90 pages are in this category.
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 4
A
 Elizabeth Arden
 Axe (grooming product)
B
 Becel
 Ben & Jerry's
 Bertolli
 Best Foods
 BiFi (snack)
 Birds Eye
 Boursin (cheese)
 Bovril
 Breyers
 Brooke Bond
 Bubble O' Bill
C
 Chicken Tonight
 Cif
 Colman's
 Conimex
 Continental (Brand)
 Cornetto (ice cream)
 Cotton swab
 Country Crock
 Cup-a-Soup
D
 Degree (deodorant)
 Domestos
 Dove (personal care
product brand)
F
 Fabergé (cosmetics)
 Findus
 Flora (margarine)
 Fudgsicle
G
 GB Glace
G cont.
 Golden Gaytime
 Good Humor
H
 HB Ice Cream
 HB Wall's
 Hellmann's
I
 I Can't Believe It's Not
Butter!
 Iglo
 Imperial Margarine
 Impulse (body mist)
K
 Kibon
 Klondike bar
 Knorr (brand)
 Kwality Wall's
L
 Lakme cosmetics
 Langnese
 Lifebuoy (soap)
 Lipton
 List of Unilever brands
 Lux (soap)
M
 Magnum (ice cream)
 Maille (company)
 Marmite
P
 PG Tips
 Paddle Pop
 Peperami
 Persil
 Persil Power
 Persil Service
 Pond's Creams
 Popsicle
P cont.
 Pot Mash
 Pot Noodle
 Pot Rice
 Prince Matchabelli
R
 Ragú
 Rexona
 Rinso
S
 Sana (margarine
brand)
 Sariwangi
 Scottish Blend
 Selecta (dairy
products)
 Signal (toothpaste)
 Skippy (peanut
butter)
 Slim Fast
 Snuggle
 Solero
 Splice (ice cream)
 Spry Vegetable
Shortening
 Squirrel (peanut
butter)
 Suave
 Sunsilk
 Surf (detergent)
 Surf Excel
T
 Twink (home perm)
V
 Vaseline
 Vermonster
 Viennetta
 Vim (cleaning
product)
W
 Wall's (company)
 Wish-Bone salad
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 5
dressing
Volume growth ahead of Unilever markets
Underlying volume growth:
Financial Year Growth
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 6
2008 0.1%
2009 2.3%
2010 5.8%
Underlying volume growth accelerated in 2010 to 5.8%, the best that Unilever has achieved
for more than 30 years. Unilever set out two years ago to reignite its volume growth and to
grow ahead of its markets. That is what Unilever are starting to do; its volume shares are up in
all regions and in most categories.
Volume growth was broad based. In its emerging markets business Unilever grew volumes by
around 10% over the year as a whole, with the key businesses of China, India and Turkey all
delivering growth well into double digits. Only in Central and Eastern Europe did Unilever see
more subdued growth, although even here volumes were comfortably up in difficult markets.
In the developed world, where growth has been very hard to achieve over the recent past, its
volumes were also up by around 2%, again ahead of the market, in both Western Europe and
North America.
Unilever gained volume share in all regions, with particularly strong performance in key
emerging markets such as China, Indonesia, South Africa and Argentina. Unilever stern Europe
also saw strong volume share gains, led by the Netherlands, France and Italy. Volume shares
were also up in most of its core categories, with deodorants, skin cleansing, household care,
ice cream and dressings all achieving notable gains during the year.
List of major players
1. Unilever Bangladesh
2. Marico
3. Nestle Bangladesh
4. Pran
5. Square toiletries Limited
Financial performance of Unilever
UNILEVER
FINANCIAL
PERFORMANCE
YEAR
2013 2012 2011 2010 2009
UNDERLYING SALES
GROWTH %
4.3 6.9 6.5 4.1 3.5
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 7
TURNOVER (€
BILLION)
49.8 51.3 46.5 44.3 39.8
OPERATING
PROFIT (€
BILLION)
7.5 7 6.4 6.3 5
NET PROFIT* (€
BILLION)
5.3 4.9 4.6 4.6 3.7
NET CASH FLOW
FROM OPERATING
ACTIVITIES
(€ BILLION)
6.3 6.8 5.5 5.5 5.8
External environment analysis
A company’s external environment consists of all the relevant factors and influences outside the
company’s boundaries. Relevant means important enough to have a bearing on the decisions
the company ultimately makes about its direction, objectives strategy and business model.
The External Analysis examines opportunities and threats that exist in the particular industry
environment. The External analysis is a constructive instrument for understanding risks
associated with market growth or decline, and as such the position, potential and direction for a
business or organization. It uses a framework of external factors for macro-environmental
scanning of the industry and Porter five forces analysis to help in taking advantage of
opportunities and making contingency plans for threats.
The central components of external analysis are:
1 The macro-environment.
2. Industry Structure.
3. Strategic group mapping.
4. Competitor analysis.
5. Critical success factors.
Macro Environment Analysis
The general environment is composed of factors that can have dramatic effects on firm strategy.
Typically, a firm has little ability to predict trends and events in the general environment and
less ability to control them. General environment of paint industry of Bangladesh is divided into
four segments- economic, technological, socio-cultural and global.
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 8
Economic Factors
The economic environment refers to the nature and direction of the economy in which a firm
competes or may compete. The economic condition of the country probably has the largest
effect on the possibility and failures of UBL. As the raw materials are imported the currency
exchange rates and inflation of the country has an immense influence in determining the fate of
the business.
Technological Factors
New advanced technologies are now used to manufacture different consumer goods. Some big
companies like P&G, Nestle, local square toiletries are using up to date technology to
manufacture their products. . Exploitation of new technologies are helping the companies to
come up with upgrades and best quality products that can fulfill customers need tastes and
preferences. With the new technologies companies can advertise their products through many
channels which enabled them to be more competitive in the market.
Socio-cultural Factors
This segment is concerned with society’s attitudes and cultural values. Lifestyle based spending
by Bangladeshi middle class. Because as UBL mainly focuses on the middle class market of
Bangladesh. So they need to identify what are their life style what are their attitude towards
consumer goods. How much they would like to spend for consumer goods. Who would be their
targeted potential customer.
Global Factors
Raw materials of some of their products are available in Bangladesh. And the materials which
are not available they have to depend on global market for that.
Legal /Political Factor
Unilever subsidiaries are encouraged to promote and defend their legitimate business
interests. They co-operate with governments and other organizations, both directly and
through trade associations or chambers, in the department of or amendment of rules or
regulations, which may affect their legitimate business interests. In the process they neither
support political parties nor contribute to the political funds.
Porter’s five forces analysis of Unilever Bangladesh
Bing 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.
Porters five forces model is one of the most recognized frame work for analysis of competitive
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 9
environment of an organization. Porters five forces model which determine the competitive
industry and therefore the attractiveness of the market where Unilever is operating. This model
describes the attributes of an attractive industry and thus suggest when opportunities will be
greater and threats less in these of industries.
Attractiveness in the 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 un attractive industry would be one approaching “pure
competition” from the prospective of pure industrial economic theory.
This model is based on five important elements of an organization and uses both internal as
well as external competencies and threats faced by business organization. And these five
elements are
Buyer bargaining power
Unilever buyer are scattered all around the country. And in true sense they are not so powerful
to pull the price down. But on the other hand its easier for the customer to switch to the other
brand. So Unilever has to be very precious in deciding about prices and keep the customer
satisfied.
Competitive rivalry
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 10
In consumer product business Unilever has a large number of competitors and these are really
very strong. They range from local companies from big giants like P&G and Nestle, and these
competitors almost provide quality and attractive products and services and sometimes better.
These competitors have a power to attract and influence the customer by more attractive
substitute, prices and marketing technique.
Threat from the substitute
Continues research and development in the customer and household products has brought
about a revolution in the customer market and today customer like to try something new and
better. This trend has reduced customer loyalty and product life cycle. Unilever is under
continuous threat of substitute products and its competitors are already spending huge sum on
R&D and new product development. Unilever has to be very adoptive and closer to its customer
so as to get what exactly its customer want.
Threat of new entry
As Unilever operates in different geographical market so threat will be based on geography. In
developed countries where big players like Unilever have a very strong brand image. Its very
hard for a new player to enter because of the high cost and setup business. On the other hand it
less developed market like Bangladesh it’s easier to enter as legal requirements and capital
needed is not as much as in a developed market. Unilever has it presence almost in every
market. Its brand image is a strong barrier to enter in its market.
Supplier’s power
Unilever has a policy of local buying and local manufacturing. Which provide itself an edge to
break power of its suppliers and make them weaker to negotiate at its own terms. Most of
times Unilever has blanket agreements with its supplier to provide for a certain period of time
at a certain rate. This strategy helps to prevent suppliers from switching to other competitors
and charge higher rates. Also Unilever treat as suppliers fairly so as to create more loyalty
among them like customer.
Industry attractiveness
Analyzing the external environment we can say that the industry is mostly attractive.as buyers
have weak positions and also the suppliers position are getting reduced. As UBL is the market
giant compare to others, so threat of substitute products are moderate, hence strong rivalry can be
seen among competitors.
Critical success factor
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 11
An industry’s critical success factors are those things that most affect the industry members
ability to prosper in the market place. The key success factor of UBL can be referred to as the
quality of their product, and also they keep on innovating time to time.
Competitive Analysis
In the market of consumer goods Unilever Bangladesh Ltd is considered as the
market leader. As a market leader there is always a risk to be attacked by the market
challengers. Unilever’s strategy is to defend their market share by being premium in
service, having full-line strategy, extensive and efficient dealership system and good financing.
In Bangladesh the major two challengers for Unilever is ‘Square Toiletries Ltd’ and
‘Proctor & Gamble Ltd’.
Internal Environment Analysis
Core competency
It refers to resources and capabilities that serve as a source of competitive advantage for a firm
over its rivals and competitive advantage refers to any factor that allows an organization to
differentiate its product from those of its competitors.
Core competencies of UBL are, it has a valuable rare and costly to imitate, and non-substitutable
Corporate and Brand image, quality of product is valuable rare and also costly to imitate but
substitutable, and technology orientation is also valuable rare and costly to imitate but
substitutable. And its supply chain its valuable rare and also costly to imitate.
Supply chain
As a multi-national company, UBL Procurement team is purchasing from tens of thousands of
suppliers worldwide. They have made the strategic decision to introduce a global Supplier
Qualification System (USQS) to manage the complexity of their supplier information. Their
procurement organization first selects our suppliers, then those selected are invited to register
in USQS (Unilever’s Supplier Qualification System) and this system is how we qualify those
suppliers to do business with Unilever. One of the main drivers for the Unilever Supplier
Qualification System is to make the process of doing business with globally less complicated.
The use of the USQS will enable us to standardize and streamline the way we engage with
suppliers no matter where they are located. It is a single system that allows all suppliers to
demonstrate to Unilever their capabilities. Being invited to join the system enables selected
suppliers to qualify to work with Unilever and gives visibility throughout Unilever’s global
business.
Brand Image
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 12
Lever Brothers Pakistan limited started its operation in East Pakistan (present day Bangladesh)
on a larger scale. In 1964, a new soap manufacturing facility was setup in Kalurghat, Chittagong.
The production of the company started off with Sunlight soap and Lifebuoy soap. With time the
company diversified into manufacturing other personal products like skin care creams,
shampoos, toothpastes, detergent powders etc. In 1971, after the Liberation War of
Bangladesh, when Bangladesh became independent, Lever Brothers Bangladesh Limited. was
constituted with Unilever owning 60.75% shares and the Government of Bangladesh owning the
remaining 39.25% shares. In December 2004 the company changed its identity to Unilever
Bangladesh to align their corporate identity with global Unilever.
They are doing business in Bangladesh almost 50 years.Throughout the years, UBL has
successfully positioned itself as provider of reliable and superior quality consumer goods. The
company has always taken care in strategically positioning itself as a superior class of its own in
Bangladesh. As a result, its products are more recognized and appreciated.
Improved technology
The new technology allows us to produce a common, unperformed base for its aerosols, adding
the fragrance only at the very last stage. This gives us the flexibility to make many more variants
without incurring higher costs. It’s good for us because it has contributed greatly to lower stock
levels; around 70% of its stock-keeping units have seen their minimum order quantity halved; its
product change-over time has reduced from 40 minutes to just fit; and Unilever produce less
waste. But more importantly it benefits customers, who have improved shelf stock levels and
reduced lead times, and consumers, who can get a wider choice of fragrance at no extra cost.
Products quality
UBL selects the raw materials from some of the best-known suppliers.The superior quality of
Unilever's products has been possible because of support from its advanced plants and an
international-standard of strict quality. Following TQM it ensures the best to managing its
efforts. Unilever has always tried to respond promptly to market feedback. As a result, Unilever
enjoys competitive advantage over its competitors, though it’s a very competitive market
SOWT Analysis of Unilever Bangladesh
Strengths
 Strong management
 Financial leverage
 Asset leverage
 Innovative culture
Weakness
 Online presence
 Absence from premium market
 Lack of high volume brands
 Focus on short term strategy
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 13
 Supply chain
 Economy of scale
 Technology
 Customer loyalty
 Brand name
 Unique product
 Slow sales growth compared with the
competitors
Opportunities
 Fragmented market
 Financial leverage
 Online market
 Innovation
 New service
 New technology
 New products
 New markets
Threats
 Volatile currency
 Bad economy
 International competition
 Mature markets
 Government regulation
 Change in test
 Intense competition
 Political risk
 Volatile costs
 Substitute products
Strengths
i. Strong management Strong management can help Unilever Bangladesh Ltd. reach its potential by
utilizing strengths and eliminating weaknesses. "Strong Management" has a significant impact, so an analyst should put more
weight into it. "Strong Management" is an easily defendable qualitative factor, so competing
institutions will have a difficult time overcoming it.
ii. Financial leverage Financial leverage allows Unilever Bangladesh Ltd. to use their balance sheet to
expand their business and increase their profits. "Financial Leverage” has a significant impact, so an analyst should put more
weight into it. "Financial Leverage (Unilever Bangladesh Ltd.)" is an easily defendable qualitative
factor, so competing institutions will have a difficult time overcoming it.
iii. Asset leverage
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 14 Asset leverage allows Unilever Bangladesh Ltd. to use their best operational
assets to expand their business and improve their market share. "Asset Leverage (Unilever Bangladesh Ltd.)" will have a long-term positive impact
on the this entity, which adds to its value. This statement will lead to an increase
in profits for this entity. "Asset Leverage” is an easily defendable qualitative factor, so competing
institutions will have a difficult time overcoming it.
iv. Innovative culture An innovative culture helps Unilever Bangladesh Ltd. to produce unique products
and services that meet their customer’s needs
v. Supply chain A strong supply chain helps Unilever Bangladesh Ltd. obtain the right resources
from suppliers and delivery the right product to customers in a timely manner
vi. Economy of scale Economies of scale is the cost advantages that Unilever Bangladesh Ltd. obtains
due to size. The greater the volume, the greater the advantages
vii. Technology Superior technology allows Unilever Bangladesh Ltd. to better meet the needs of
their customers in ways that competitors can’t imitate "Technology (Unilever Bangladesh Ltd.)" is an easily defendable qualitative factor,
so competing institutions will have a difficult time overcoming it.
viii. Customer loyalty When given a choice, customers are loyal to Unilever Bangladesh Ltd. Instead of
targeting all customers, Unilever Bangladesh Ltd. only needs to target new
customers in order to grow their business.
ix. Brand name A strong brand name is a major strength of Unilever Bangladesh Ltd.. This
gives Unilever Bangladesh Ltd. the ability to charge higher prices for their
products because consumers place additional value in the brand
x. Unique product Unique products help distinguish Unilever Bangladesh Ltd. from
competitors. Unilever Bangladesh Ltd. can charge higher prices for their
products, because consumers can’t get those products elsewhere
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 15
Weaknesses
I. Online presence The online market is essential for displaying information and selling products. A
weak online presence can result in lost opportunities for Unilever Bangladesh
II. Absence from premium market Their main focus is on the middle market, so they can focus on premium market
to compete with the other player in the market. And It will expand their market
share also.
III. Lack of high volume brands Unilever doesn’t offer all of their brands in Bangladesh, they just offer few of
their brands so it’s a weakness for them. To grab a higher amount of market they
can focus on this and offer maximum brands so that customer have the variety to
choose.
IV. Focus on short term strategy Their focus is based on short term rather they should focus for long term strategy
V. Slow sales growth compared with the competitors In comparison with their competitors their sales growth is a bit low, compare
with marico, P&G, square toiletries ltd, their sales volume is slow so they should
take some necessary steps to boost up their sales.
Opportunities
I. Fragmented market Fragmented markets provide many opportunities for Unilever Bangladesh Ltd. to
expand and increase market share. Fragmented markets have many small
competitive who lack the cost advantages of larger companies
II. Financial leverage Leveraging the balance sheet allows Unilever Bangladesh Ltd. to quickly expand
into other markets and products, especially in fragmented industries
III. Online market The online market offers Unilever Bangladesh Ltd. the ability to greatly expand
their business. Unilever Bangladesh Ltd. can market to a much wider audience
for relatively little expense
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 16
IV. Innovation Greater innovation can help Unilever Bangladesh Ltd. to produce unique
products and services that meet customer’s needs
V. New service New services help Unilever Bangladesh Ltd. to better meet their customer’s
needs. These services can expand Unilever Bangladesh Ltd.’s business and
diversify their customer base
VI. New technology New technology helps Unilever Bangladesh Ltd. to better meet their customer’s
needs with new and improved products and services. Technology also builds
competitive barriers against rivals
VII. New products New products can help Unilever Bangladesh Ltd. to expand their business and
diversity their customer base. New Products will have a long-term positive impact on this entity, which adds to
its value. New Products is an easily defendable qualitative factor, so competing institutions
will have a difficult time overcoming it.
VIII. New markets New markets allow Unilever Bangladesh Ltd. to expand their business and
diversify their portfolio of products and services
Threats
I. Volatile currency Volatile currencies make Unilever Bangladesh Ltd.’s investments difficult, because
costs and revenues change so rapidly
II. Bad economy A bad economy can hurt Unilever Bangladesh Ltd.’s business by decreasing the
number of potential customers
III. International competition International competitors are numerous and difficult to combat, because they
can have many competitive advantages that give them an advantage
over Unilever Bangladesh Ltd. "Intl Competition (Unilever Bangladesh Ltd.)" will
have a long-term negative impact on this entity, which subtracts from the entity's
value.
IV. Mature markets
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 17 Mature markets are competitive. In order for Unilever Bangladesh Ltd. to grow in
a mature market, it has to increase market share, which is difficult and expensive
V. Government regulation Changes to government rules and regulations can negatively affect Unilever
Bangladesh Ltd
VI. Change in test Consumers can change their tastes very quickly. Unilever Bangladesh
Ltd. depends on knowing which goods and services consumers want
VII. Intense competition Intense completion can lower Unilever Bangladesh Ltd.’s profits, because
competitors can entice consumers away with superior products
VIII. Political risk Politics can increase Unilever Bangladesh Ltd.’s risk factors, because governments
can quickly change business rules that negatively affect Unilever Bangladesh
Ltd.’s business
IX. Volatile costs Volatile costs mean Unilever Bangladesh Ltd. has to plan for scenarios where
costs skyrocket. Cautious planning leads to development delays that can
negatively affect Unilever Bangladesh Ltd.
X. Substitute products The availability of substitute products hurts Unilever Bangladesh Ltd.’s ability to
raise prices, because customers can easily switch to another product or service
Strategies followed by the company
Corporate strategy:
UBL carries out the following corporate level strategies
 They involve in short term contracts and competitive bidding for the supply of raw
materials.
 They have a diversified business. UBL has both related and unrelated diversification.
They compete in nine different industries with various products from home care,
personal care and even food products. They have economies of
Functional Level Strategies
Unilever Bangladesh Ltd follows different functional level strategies to gain competitive
advantages and sustain it in the long run in the matured industries.
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 18
 They increase their efficiency through exploiting economies of scale and learning effects.
For example, 808,720 bars of soaps, 1,023,810 packets of detergent powders, 154, 430
toothpaste tubes and sachets,329, 530 bottles and sachets of shampoo, 156, 910 tubes,
jars, bottles and sachets of creams and lotions, and 35, 000 packets of tea are produced
in one day in Bangladesh by Unilever.
 They adopt flexible manufacturing technologies, upgrade the skills of employees
through training and perform research and development function to design products
that are easy to manufacture.
 They have higher customer responsiveness rate. They carry out extensive research to
innovate new products and modify the existing products to better satisfy the consumers.
 They continuously innovate products, promotional activities, packaging and distribution.
This way they can respond quickly to customer demands.
Business-Level Strategies
Unilever’s strategic managers adopt different business level strategies to use the company’s
resources and distinctive competencies to gain competitive advantage over its rivals. These are:
 They follow cost-leadership strategy as they have intermittent over capacity and the
ability to gain economies of scale. This way they can produce cost effective products and
yet be profitable.
 They also follow differentiation strategy for some products to meet the needs of the
consumers in a unique way.
 They also target different market segments with different products to have broad
product line. By product proliferation they reduce the threat of entry and expand the
range of products they make to fill a wide variety of niches.
Strategy in the Global Environment
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 19
Unilever Bangladesh Ltd. is registered under Unilever. As a part of a global company it follows
some generalized strategies and principals of Unilever. However, they also modify different
strategies based on the national conditions. The different strategies that they follow in the
global environment are stated below:
 As a worldwide famous company and comprising internationally renowned brands gives
them unique strengths that allow a company to achieve superior efficiency, quality,
innovation, or customer responsiveness. The different policies and strategies Unilever
follows and their experience is transferred to Unilever Bangladesh Ltd.
 They import the raw materials from the places where it is less costly, thus achieve
location economy.
 They are locally responsive. They are always ready to improve and modify their products
to meet the needs of the local customers.
 UBL follows a multi domestic strategy where the companies extensively customize both
their product offering and marketing strategy to different national conditions.
Execution of strategy by Unilever
Implementation of strategy is very important, because without the perfect implementation of
the strategy the business will never grow. The growth of a business depends how they execute
their strategy and what they can achieve by executing this strategy.
As one of the strong and healthy companies in the world with many successful brands, Unilever
has an opportunity to expand into foreign markets that it is not yet operating in, in order to gain
access to customers around the world. Supported by strengths of its four key global brands –
Dove, Sunsilk, Rexona and Lux, Unilever firstly entered in foreign market to compete
internationally by entering just one or select few foreign markets. Once successfully introduced
its product in several market, Unilever expands its success brand to many other markets and
starting to compete globally.
In entering and competing in foreign markets for its cosmetics and toiletries product, Unilever
follows a global strategy, also called by a think-global and act-global strategy, The strategy
using essentially the same competitive strategy approach in all country markets where the
company has a presence (with only minimal responsive to local conditions), sells much the same
products everywhere (make minor adaption to local countries where needed to accommodate
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 20
local countries preferences), strives to build global brands, and coordinates its actions
worldwide (centralized).
A global strategy used by the Unilever is preferable to localized strategies because Unilever can
more unify its operations and focus on establishing a brand image and reputation that is
uniform from country to country. It strategy implies to the Unilever success in building strong
character brand such as Dove, Sunsilk, Rexona and Lux. Moreover, with a global strategy
Unilever should coordinated its marketing, operational and distribution worldwide.
Unilever is increasing its efforts to build on its long-established local roots in developing regions.
Through its well-established distribution network in both the traditional and modern retail
outlets and with a good ability to adapt successful global brand concepts to suit local markets,
Unilever is in a good position to be able to capitalize on the growth forecast in these regions.
Once Unilever became one of the most successful global companies in the world, it has many
profit sanctuaries. By having multiple profit sanctuaries, Unilever has strong competitive
advantage over its competitor with a single or few sanctuaries.
In the cosmetics and toiletries globally competitive industry, there are no doubt that Unilever’s
major rivals over the next few years will be Procter & Gamble and L’Oréal, both of which give
significant resources to new product development activity, and respond to changes in the
market faster than Unilever. L’Oréal also has the benefit of being exclusively involved in
cosmetics and toiletries, unlike both Unilever and Procter & Gamble which both have cross-
industry involvement, such as in packaged food. Much the same group of rival companies
competes in many different countries. Therefore, the competition pursues the company to be
more innovative in developing its products and maintaining its brands. The following diagram
shows the market performance of Unilever’s skin care and hair care market share:
To win customers and sales away from select rivals in country markets, Unilever employ cross-
market subsidization. This offensive strategy is appropriate for Unilever which is compete in
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 21
multiple county markets with multiple brands and wide variety of products. Finally in entering
the emerging-country market Unilever prepare to compete on the basis of low prices. Unilever
pursued this strategy because consumers in emerging markets are often highly focused on price,
which can give low-cost local competitors the edge unless a company can find ways to attract
buyers with bargain prices as well as better products.
All strategies executed by Unilever for competing in foreign market resulting in moderate 5%
sales growth in 2006 – just above market performance – ensured that Unilever kept its position
as third largest player in cosmetics and toiletries with a 7% market share. Second-placed L’Oréal
fared a lot better, increasing the gap between the two companies in part thanks to its
acquisition of The Body Shop. Market leader Procter & Gamble remained over five percentage
points ahead of Unilever’s share. In 2006, Unilever remained comfortably ahead of Colgate-
Palmolive in fourth place. Unilever decision to introduce its product on emerging market such as
Asia-Pacific, Latin America and North America implies to the high contribution of Unilever total
revenue by 26%, 21% and 16% respectively
CSR activities of Unilever Bangladesh
I. Shada moner manush
In Bangladesh, there are people with hearts of gold, people we call ‘Shada Moner
Manush’. These people have dedicated themselves to improving the lives of those
around them, not for monetary gain or for political benefit but because they care.
These people have dedicated themselves to improving the lives of those around them
because they care. Some have chosen to spread the light of education, some have been
providing free health care to those in need and some have taken it upon themselves to
increase the natural beauty and help improve the environment of Bangladesh.
II. Uttorone Nari
The Fair & Lovely Uttorone Nari Program has brought the opportunities of computer
education to girl students of economically weaker sectionsIn 2003, Fair & Lovely - the
popular skin care cream in Bangladesh sponsored meritorious girl students from
secondary school level to computer education from a world classcomputer training
institute, spread out in various branches in all districts of thecountry. More than 1500
girl students were nominated throughout the country to be trained under this program.
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 22
III. Working with SSKS
Unilever came forward to support an institution that provides free primary education to
children of lowest income families. There exist some institutions that provide education
to these hapless children and one such organisation is Shathee Samaj Kalyan Samity
(SSKS), an NGO working for the slum residents in the city’s posh residential area-
Banani.This program includes: Free evening school Getting more out of life Hygiene & health
Scholarships for higher education
FAL Foundation is providing higher education scholarships for women with thepotential
and passion for university education and a professional career.The scholarship program
was one such initiative that supported the dreams of talented women from
economically disadvantaged families.In the scholarship program FAL Foundation
provides scholarship worth Taka 25,000 to female students to pursue 4 year under-
graduate studies in the fields of Arts, Commerce, Science, Engineering, Higher Agro–
Science, and Medicine. More than 2000 applications are received each year for this
scholarship program.
IV. Empowering Women
In Bangladesh, like many other developing countries, women facing the same poverty
issues as men are subject to additional social and policy biases. For this, they remain
backward in terms of education and economic independence. Therefore their need for
a guide with a sincere mission to enhance the state of the Bangladeshi women is
recognized by all quarters.
V. Fair & Lovely Foundation
Keeping this mind and women’s empowerment at the forefront, Fair & Lovely
Foundation was set-up as a social initiative by Unilever Bangladesh Limited on 15 June
2004 under its leading skin care brand Fair & Lovely. The mission of the Foundation is to
"Encourage economic empowerment of Bangladeshi women through information and
resources in the areas of Education, Career and Enterprise"
VI. Lifebouy floating hospital
Launched in 2002, the Lifebouy Friendship Hospital plies up and down the 'char' regions
with a full team of medical experts and a well stocked dispensary providing free health
services and health education.
The hospital boat boasts an unprecedented array of on-board facilities, including a patient observation ward, a gynecological and obstetrics room, an antenatal check-up clinic
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 23 a small surgery for minor operations, a pathological lab, a dental surgery
VII. Health education
In addition, the hospital has a dedicated health education team. The team is responsible
for running much needed education programmes on basic health issues, such as
nutrition, sanitation and safe motherhood.
VIII. Unique impact
The floating hospital really is unique and its impact across the char regions is difficult to
fully appreciate. To date, over 200,000 char-dwellers have had access to the hospital’s
free health services - many of whom have never had any kind of formal medical
attention in their lives. The hospital’s team of health professionals immunised 17,500
children against common water-born illnesses and other diseases
IX. WEALTH Program
In its maiden programme entitled "WEALTH" in 2004, the Fair & Lovely Foundation
trained 310 women in 9 districts across the country. Initially, women with small
businesses or at least the aspiration to start something on their own were selected for
the training. The 11-day long project was divided into two parts. First five days’ training
consisted of business management while the next six days were dedicated to practical
hands-on training.
X. Vocational training
Courses offered for the participants included : Mini garments and tailoring Pickle Making Handicrafts Floriculture and Nursery Food processing Pottery Poultry Farming
XI. Providing for a family
Mrs. Aleya is a mother of three who had to provide for her family when her husband
suddenly passed away. With the help of her brothers she bought a sewing machine. The
WEALTH program trained her to set up a mini garments and tailoring shop and she now
has an income of US$ 400 a month, whilst employing 15 other women.
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 24
XII. Health awareness
Facing the major challenge of communicating to consumers across Bangladesh, our
health brands Lifebouy and Pepsodent initiated health awareness campaigns that have
brought the message of healthy living to millions of people.
Achievement of Unilever in Bangladesh
Unilever Bangladesh set itself at an exemplary position in the country as an imitable leader in
the area of corporate engagement in social development. Recently, Unilever Bangladesh was
honored with a national level CSR award organized by Standard Chartered Bank and the Daily
Financial Express.
Unilever Bangladesh Limited (UBL) has received an award from the Standard Chartered
Financial Express joint CSR recognition initiative for its outstanding CSR contributions. UBL
Initiatives such as the Lifebuoy Friendship Hospital have given critical help to the water-locked
population of Bangladesh, while the Fair & Lovely Foundation has been instrumental in
empowering women.
"Our voluntary activities in the areas of health and education are aimed at positively enriching
society while bringing our brands to life for consumers."
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 25
Over the past seven years, Unilever Bangladesh has led the way in terms of both corporate
reputation and business results, with seven consecutive years of double-digit growth. In 2005,
Unilever Bangladesh was one of only two Unilever businesses in Asia to cross the magical figure
of 20% growth. An inspiring growth story and a great example of living through Vitality.
Recommendation
 Unilever can capture rural markets and markets of developing nations by using its state
of art facility and technology. Brand name is a plus point which will be helpful while
positioning.
 Unilevers commitment to business ethics safety, health, environment, and community
can be proved helpful in order to satisfy hygiene conscious consumer. So they should
focus more on the quality
 Unrelated diversification is a risky decision to be taken. Loyal customer is the major
power to cope up with after effects of this decision
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 26
 Customers in rural areas and in developing countries usually have low
income level. UNILEVER should reduce its costs in order to capture
that uncovered markets effectively.
 U n i l e ve r c a n u s e i t s i n te r n ati o n a l b ra n d st re n gt h a n d w i d e network
of retail outlets in order to compete with organized and unorganized players of
market.
 Strategic alliance is showing the weakness of Unilever in particularly in manufacturing
area so they need to careful before doing any kind of alliance
 If Unilever can obtain cheaper raw material, it can reduce their cost of production.
Conclusion
This report focuses on the Strategic analysis of Unilever Bangladesh. By my analysis I have
found that, UNILEVER is globally successful company. One of the reasons for their success
was they created brands for specific countries and regions. Products for example, found in
south Americas will not be found in south Asian countries. Since difference in culture exists
worldwide, the creation and supply of brands have to be taken seriously. UNILEVER
Bangladesh is the market leader in home and personal care products. The UNILEVER
products are able to gain customer satisfaction and trust. Their production and distribution is
expanding rapidly.
Unilever know that if Unilever are to achieve their ambitious growth objectives Unilever
must reduce the total environmental impact of the business. Its commitment extends right
across its value chain – i.e. from the collecting of raw materials through its own production
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 27
and distribution to consumer use and eventual disposal of residual packaging. Unilever fully
recognize that Unilever will need to develop a new model for business growth. Unilever are
embarking on a long-term programmed of work with its suppliers, customers and other
partners to realize this goal. With its portfolio of strong brands, presence in emerging
markets and long-standing commitment to shared value creation. Over 100 years ago, its
founders not only created some of the world’s first consumer brands, they also built a
business with strong values. Unilever have continued to update its vision as the world has
changed. In the 1990s Unilever formally integrated sustainability factors into its strategy.
Then, in 2005, Unilever started to embed this agenda into its product brands using a process
called Brand Imprint. Since then Brand Imprints have been completed across all its product
categories. Social and environmental considerations are now integrated into the innovation
and development plans of its major brands. At the same time, Unilever are also evolving its
approach to corporate branding. Unilever are starting to consider how they make Unilever’s
corporate commitments and activities more visible and relevant to their consumer.
References
 Dess, G. Lumpkin, G. and Eisner A. (2007) Strategic Management (3rd Edition) .New
York: McGraw –Hill Irwin
 Porter, M. E. (1998a), Competitive Strategy: Techniques for Analyzing Industries and
Competitors, Free Press
 Porter, M. E. (1998b), Competitive Advantage: Creating and Sustaining Superior
Performance, Free Press
 Cateora, P. and Ghauri, P. 2006, International Marketing. Berkshire: McGraw Hill
Education (UK).
 Cescau, P. & Rivers, R. (2007a), Unilever's Growth Strategy (Presentation), (online)
Available at: http://www.unilever.com/investorrelations/faqs/general/?
WT.LHNAV=General#tcm:13-70568 (Accessed 8 April 2010)
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH

P a g e | 28
 Michael Porter (1979), how competitive forces shape strategy, p.205, Harvard Business
Review
 Staff Reporter (2009, April 6), Bangladesh can take advantage of global crisis, The Daily
Star Online, (Retrieved at July 20th 2012).
 http://www.unilever.com.bd/
STRATEGIC ANALYSIS OF UNILEVER BANGLADESH